Kenyans visiting USA to wait until June 2024 for visa interviews

Kenyans visiting USA

The US Embassy in Nairobi has suspended appointments for visa interviews until June 2024 owing to high demand and Covid-linked backlogs.

In a statement released on Monday, the embassy acknowledged the frustrations that Kenyans travelling to the US are going through.

“Currently, the first available dates for a visitor visa appointment in Nairobi are in June 2024. U.S. Embassy Nairobi recognizes the significant challenges and frustrations this poses for Kenyans planning to visit the United States for business and tourism,” read the statement seen by Business Daily.

Kenyans on social media have expressed their frustrations in recent days over what they have termed as unfair visa rules. Others have been forced to cancel travel plans over delays in processing the critical document.

The embassy said that non-immigrant visa interviews at the Nairobi office ceased for over a year due to Covid-19 safety measures.

“As we work through the backlog of applications and address the high demand for services, we recognize that some applicants may face extended visa interview wait times. This is a worldwide problem that US embassies are diligently striving to address,” the embassy said.

However, the embassy has committed to expediting appointments for emergencies such as the death of an immediate family member and people travelling for urgent medical care.

Students whose programmes start in less than 30 days and are likely to lose their scholarships will also be given priority. 

Further, the embassy has committed to doubling the number of interviews to clear the current backlog. 

“We instituted a visa renewal process that does not require an in-person interview for certain applicants. Kenyans renewing visitor (B1/B2 category) or student visas (F category) whose visas expired less than one year ago may be eligible to renew without an interview,” said the embassy.

Source: Business Daily

African airlines deserve more than lip service

African airlines

Kamil Alawadhi, IATA’s Regional Vice President, Africa & Middle East, says governments must walk the walk and support African aviation.

Aviation’s post-pandemic recovery was predicted to be uneven across markets and dependent on financial and economic factors, government policies, and the relaxation of travel restrictions and requirements.

Partly, this was caused by the aviation industry grounding to a halt worldwide in 2020. To stay afloat, airlines, airports, ground handlers, and other services suppliers accumulated debt in various shapes and forms, which they now must repay.

At the same time, across the board, in industry and governments, hundreds of thousands of staff were retrenched, retired, or furloughed to cut costs and preserve cash. Many industry players are now trying to rehire or hire new people, but for various reasons—such as the slow pace of security vetting of new airport-based workers in the United Kingdom—many entities are ill-equipped to take full advantage of the surges in demand that are being seen as markets reopen. Instead, we have entered the surreal, where airlines are forced to cancel thousands of flights. And London-Heathrow, an iconic global hub, has capped traffic at 100,000 passengers a day to prevent operational gridlock.

Traffic flows

Although Africa’s airlines and airports are not experiencing the same chaos as many of the big northern hemisphere gateways, their recovery and sustainability are affected as they are heavily dependent on north-south traffic flows. They are struggling to find a sure footing in the face of numerous other factors facing them too.

For most African carriers, this is an arduous journey with no relief or support from any of the continent’s governments, despite public acknowledgement of the vital social and economic contributions airlines make. And so, those African airlines that have survived COVID are once again being pushed to the brink, with at least one carrier, Comair, going into bankruptcy.

These factors include rising charges for infrastructure and other services, as airports, air navigation service providers, regulatory bodies, and other suppliers look to recoup foregone revenues and cover their inflationary costs. 

In some countries, notably Nigeria, Zimbabwe, Ethiopia, and Eritrea, the situation has exacerbated shortages of foreign exchange, prompting central banks to block or severely limit the repatriation of more than $800 million of foreign airlines’ revenues derived from sales in those territories.

On top of this are increasing demands and pressure to invest in and adopt environmentally sustainable technologies and processes.

Fuel prices

By far the biggest headache for every airline is the sharp increase in fuel prices.  Even though Africa only accounts for 1.9% of the global air travel market, the continent’s carriers are not immune to this geopolitical shock.

According to IATA’s most recent analysis, the global average jet fuel price in mid-July was $146.4/barrel. At this level, airlines worldwide will incur an extra $134.3 billion to their combined total fuel bill for 2022.

Although fuel prices have come off their June 2022 peak, in Africa, jet kerosene sells at a premium and averaged $160.63/barrel for the first ten days of July. This was 79.8% higher than it had been over the same period last year. 

To put this in perspective, aviation fuel historically accounted for between 20%– 25% of most African airlines’ cost base. Today, it can be as much as half, if not more, and is their biggest single line item. Although airlines are trying to mitigate the combined impact of jet fuel prices and other inflationary costs, they are running out of headroom. 

Jet fuel usually trades at a $20 premium over crude oil, but this gap has widened to more than $50 since March.

This compounds the challenge many African carriers face. They generate most of their revenues in weaker home currencies but incur their input costs, often including fuel, in US dollars and euros.  Every time the dollar price of fuel goes up or the dollar strengthens against softer local currencies, the revenue-cost gap widens.

It may seem incongruous that jet fuel in Africa, which boasts several oil-producing nations, should sell at such a premium. A large component of the additional cost relates to transport and logistics. Because jet fuel is no longer refined in Africa, it must be imported, shipped by sea, and transported from harbors to inland storage depots and airports, often far from the coast. In some places, it is carried by rail or pipeline, but for the most part, it is transported by road. 

In addition to the logistics and associated costs, recent events, such as the trucking blockades on South Africa’s motorway between Durban and Johannesburg and the floods that swept away sections of the rail tracks linking the two cities underscored the vulnerability of these supply lines.

The floods around Durban triggered a jet fuel supply crisis at Johannesburg’s O.R. Tambo International Airport, which is unlikely to be resolved before Q4 this year. At its onset, this caused some airlines to cancel flights, with others incurring additional expenses as they diverted flights to refuel at other airports or carried extra fuel (if they could do so). Recently, pressure on fuel supplies intensified with the National Refinery (NATREF) in South Africa shutting down. It operates the dedicated jet fuel pipeline to the airport.

Political will

With so much of Africa’s fortunes dependent on safe, efficient, and affordable air transport, the sustainability of its airlines—both state and privately owned—is crucial.   It is time for governments to do more than pay lip service.

The industry does not require state bailouts. Relief from rising statutory charges and taxes on fuel and aviation would be far more effective. The release of blocked funds is crucial, as is the guarantee of secure, reliable, and efficient fuel supplies. Lifting caps on foreign investment and equity in African airlines would also bring much-needed liquidity.

At an intra-Africa level, the biggest and most achievable wins require all African governments to demonstrate their political will by removing the barriers to market entry and ensuring fair and equal treatment for all carriers in each market. This is the basis for the African Union’s Single Africa Air Transport Market (SAATM). Africa’s leaders have been talking about it and signing solemn undertakings since 1988. Having talked the talk, now it is time to walk the walk!

Source: Airlines.

WTTC and ETC urge governments to address travel industry labour shortage

travel industry labour shortage

The current labour shortage could have serious implications on the recovery of Europe’s travel and tourism sector, according to the World Travel & Tourism Council (WTTC) and the European Travel Commission (ETC).

According to the industry bodies, close to 1.2 million jobs across Europe will remain unfilled during the summer period, with travel agencies forecasted to be the hardest hit with a 30 per cent shortfall of workers.

Meanwhile, the air transport and accommodation segments are likely to suffer one in five unfilled vacancies, representing 21 per cent and 22 per cent staff shortage respectively.

WTTC president and CEO, Julia Simpson said: “Europe showed one of the strongest recoveries in 2021, ahead of the global average. However, current shortages of labour can delay this trend and put additional pressure on an already embattled sector.

“Governments and the private sector need to come together to provide the best opportunities for people looking for the great career opportunities that the travel sector offers,” she added.

In 2020, at the peak of the pandemic, close to 1.7 million jobs (direct employment) were lost across Europe’s travel sector. As governments eased restrictions and borders reopened in 2021, the sector’s direct contribution to the region’s economy recovered by 30.4 per cent and recovered 571,000 jobs, according to WTTC.

This year, WTTC projects the sector’s recovery will continue to accelerate and almost reach pre-pandemic levels, but only if “urgent action” is taken to address the labour shortfall.

Together with ETC, the council urged governments to implement new policies to facilitate labour mobility across borders. 

The industry bodies also called upon the private sector to offer comprehensive training to upskill workers and adopt digital solutions to improve daily operations.

ETC president, Luis Araujo, said attracting and retaining new talent is one of the sector’s “biggest challenges” and requires a “coordinated, multi-layered and joint (public and private)” response. 

Source: BTN Europe

Kenya Airways and Virgin Atlantic seal Interline Agreement

Kenya Airways and Virgin Atlantic seal Interline Agreement

Kenya Airways has continued its strategic move towards enhancing its network through partnerships with airlines across the world. The national carrier has added Virgin Atlantic as its latest interline partner, providing convenience to its customers through seamless connectivity.

This year alone, Kenya Airways has expanded its codeshare with SAA and Delta Airlines, sealed interlined agreements with Jetblue and Africa World Airlines as the theme of partnership for growth reverberates across a post-pandemic African aviation industry.

Under the agreement with Virgin Atlantic, Kenya Airways will extend its reach in the US, the Caribbean, and Israel via London.

What does this mean for passengers?

Passengers flying to London will be able to connect with Virgin Atlantic-operated flights to Boston, Washington, Atlanta, Austin, Miami, Orlando, Las Vegas, Seattle, San Francisco, Los Angeles, Antigua, Barbados, The Bahamas, Jamaica, Grenada, and Tel Aviv among others.

The agreement further enables Virgin Atlantic passengers to book a through ticket to Nairobi and enjoy seamless connections to Kenya Airways destinations across Africa including Tanzania, Uganda, Seychelles, Mauritius, Zambia, Zimbabwe, and Madagascar among others.

KQ Network and Fleet

A proud member of the Sky Team alliance, Kenya Airways serves 3 domestic destinations and 42 international destinations in 36 countries with a fleet of 36 aircraft, however the carrier is implementing a turn-around plan that could see the fleet shrink to 27 aircraft.

The airline’s financial woes include a record loss for Kenya’s corporate history during the covid pandemic but only proving to be the continuation of a downward trend of loss-making spanning close to 10 years.

Turn-around plans

The airline is intent on halting its poor financial performance with plans to nationalize now dead in the water, its only hope is in executing a turn-around strategy.

CEO Alan Kilavuka remarked last year: “Kenya Airways has come up with short, medium, and long-term strategies to help in realizing two main objectives. The first is to survive the current depressed market, and the second is to implement strategies that will make the business more sustainable in the long term,”

Source: Airspace Africa

The Re-Reinvention of the Travel Agent

The Re-Reinvention of the Travel Agent

Travel agents, sometimes called advisors, have seen many changes through the years, but the pandemic altered their profession in unimaginable ways. And that upheaval’s not dying down anytime soon, with booking travel becoming more complicated and advisors seeing their roles as even more necessary.

Lynda Phillippi has ridden the ups and downs of travel many times during her 18-year career as a travel agent, and seen her profession go through just as many wrenching changes.

Then along came Covid. In a job that has been redefined countless times, through the rise of online travel booking sites, to mobile phones, to the collapse of storefront retail, Phillippi, an agent at Oregon-based agency Renaissance Travel, said the past two years have been like no others in how much her world has changed.

“What’s shifted the most (in) post-pandemic travel — if we are even there yet — is how much more time it takes to plan, book, and get a trip successfully completed,” said the 62-year-old Phillippi, who added she works the usual more than 40 hours a week, just in different ways. “We have to stay on top of destination requirements for vaccines and testing, and help clients arrange for those tests in many cases.”

When travelers started preparing to get back on the road after the pandemic halted their planned trips, many of them turned to travel agents, or advisors as some prefer to be called, for guidance — returning in many cases to professionals who had lost ground to travelers choosing to book trips themselves and online travel agencies a tremendous boost.

The emphasis here? On the advisor part of the job.

But the increased consumer traffic is far from the only change travel advisors have seen in their profession in recent years. The metamorphosis is just a fact of life. They are being asked to play different roles to help consumers navigate an environment still replete with travel restrictions and constantly changing Covid regulations. And now, as this summer has laid bare, travel chaos at all levels.

Travel advisors are adapting in a changing travel landscape by providing expertise on previously unfamiliar scenarios and engaging in a different kind of counseling to customers. Think part-crisis manager, part-shrink.

Phillippi offers this: “An example is a family heading to Italy for a cruise. They want to see Rome for a few days, but they need a recent test to board the ship. Fortunately the hotel concierges are a great resource to assist clients during their stay but it’s a conversation prior to booking to reassure the family that things will go smoothly — well, unless they don’t. One positive test in the group and the family doesn’t board the ship. Now what? What are the quarantine protocols? What’s the retesting process? Do they try to meet the ship somewhere or go to plan B and scramble to salvage their vacation? Some countries have opened up entirely while others still require various protocols, including masking.”

2021 poll by the American Society of Travel Advisors found 76 percent of advisors saw an increase in customers compared to prior to the pandemic while 81 percent said they were hearing from consumers who had never used an advisor. Justin Smith, the owner of Evolved Traveler, a member of agency consortium Ensemble Travel Group, appreciates the additional workload as well as the growing interest in advisors’ services. But he acknowledges they’re dealing with never-ending work.

“Advisors are fully aware that be it Covid flare-ups, airline issuesor the war in Ukraine, there is still a lot to stay on top of and be prepared for,” Smith said. “No one is ready to exhale yet. We are not even close to that.”

Smith expounded on why travel advisors haven’t been able to feel complacent despite the easing of travel restrictions worldwide.

“The pandemic has put the travel industry in a constant state of flux, whereas before 2020, there was a familiar flow to it,” he said.

“Even with the pandemic seemingly easing, things we took to be ‘givens’ in the travel industry are still off-the-table. Booking windows are much shorter, and advisors and consumers are utilizing what would have been considered shoulder and off-season to go-to destinations for a myriad of reasons. And plans B, C, and D are discussed at the outset.”

Changed Counseling Roles

A major reason why travel advisors believe they have to stay on top of their game is because they’re increasingly playing the role of a counselor. Counseling is not a new duty for advisors, as Steve Orens — president of California-based agency Plaza Travel — believes they were already pushed to assume a consultant role with clients due to the easy access consumers have to technology and the Internet.

But Erin Green, an advisor at Minnesota-based agency Pique Travel Design, describes the sort she’s doing now as trickier, especially when asked about which destinations are safe and other Covid-related issues.

“You know, if a client asks what happens if they test positive, we can kinda give them an answer of what might happen. But it’s not guaranteed,” Green said.

“It’s less of just where should I stay and what sort of experience should I have in this destination. And on top of those … What’s the best sort of test (to) take before I go. Do you know where I could find that? Do you think this trip will move forward in six months? So there’s definitely been another level that’s been added to our job.”

How can agencies prepare their advisors for the changed counseling duties? Green answered that her agency frequently addresses topics pertaining to global issues during their weekly staff meetings, instead of tech issues commonly discussed at such occasions in the past.

“We talk about the war in Ukraine and how to address client concerns about that,” she said.

“The owner of my agency often will write up a sample e-mail that (addresses) these major topics, like the uncertainty of the Coronavirus early on. If someone’s nervous about a Europe trip because of the war, we have a sample response that our agency has developed that we can sort of work off of. It’s just a lot of open communication and sharing between us and agencies globally.”

Otto de Vries, CEO of the Association of Southern African Travel Agents, also agrees that travel advisors are playing more of a counseling role. But he emphasizes the opportunity to drive business as why advisors should develop close relationships with customers.

“When you’re able to build those kinds of relationships with your customers, the value proposition and your ability to deliver on that customer expectation goes into a completely different space,” de Vries said.

But even before getting into a position where they can establish relationships with customers, advisors are spending more time determining what clients would be a good fit for their agencies. With travel agencies such as Green’s downsizing due to financial difficulties caused by the pandemic, some advisors are taking on fewer clients.

“Prior to the pandemic, we had a lot of support staff. We had a lot of projects and initiatives we were working on. And because of the pandemic, when we were sort of forced to downsize, it gave us the chance to focus and (we realized) we want to remain small,” Green said.

“We would rather have less clients, but clients who are a better fit. (And we would like to) focus on the customized, high-end activities that are the bread and butter of what we do.”

How can advisors determine which consumers might be good clients? Green said one step advisors at Pique Travel Design took during the pandemic was to create a document for prospective clients providing detailed information about the agency.

“So now before we take on a client or we get into the planning process, we really take our time to be sure they’ve read that document, they understand what we do, (and) the type of trips we do,” she said about the change in tactics partially inspired by the pandemic, adding that Pique Travel Design is unable to work with every traveler interested a booking a trip with the agency.

“(We have) to weed out clients that are not a great fit and focus in on more that are a great fit.”

Needed Marketing Expertise

But even if advisors are taking on fewer clients, de Vries doesn’t see the expectations for such professionals diminishing — a belief held by many in the industry. A survey by industry website TravelAge West found that 56 percent of advisors view customers are more demanding now than prior to the pandemic. Green acknowledged that consumers expect travel advisors to be prepared with a plan if something were to go wrong during a trip. But she admitted coming up with answers for such a scenario is difficult.

“We always share what we know, and we do have more general knowledge than the average consumer about testing, return times and certain pharmacies in Minneapolis,” Green said. “But it’s a tough expectation to meet.”

Those increased expectations are driving travel advisors to brand themselves as experts in their fields though, de Vries believes.

“And this requires some marketing expertise, whether that means building a personal brand on LinkedIn, Instagram, TikTok, or writing their own blogposts or newsletter,” he said.

“People buy from people and, as communities from whom we get trusted information have shrunk, there has never been a greater requirement for travel advisors to cement their personal brands through clever marketing and inspire their existing customers to refer to them.” 

Marketing themselves via social media is a skill many travel advisors struggle with. Forty-two percent of advisors only consider themselves somewhat knowledgeable on social media, according to a TravelAge West Survey.

Those advisors who can learn how to market themselves well on social media might experience success like Lainey Melnick, a franchise owner of luxury travel agency Dream Vacations. She credits an extensive social media strategy for keeping her business on track to reach sales of $1 million this year. Melnick invested her time and energy, during a pandemic-era slowdown in sales, into building five different Facebook accounts as well as those on Instagram, YouTube and TikTok.

“My posts are high up in the search engines because they are so consistent,” said Melnick, who also posts video promoting deals. “I do them all myself … It’s a face-to-face world—and I want it to be my face they see.”

The emphasis on building a personal brand marks a shift from advisors relying on their agency to position them favorably in the minds of prospective consumers, de Vries believes.

“Inspiring word of mouth was probably more organic in the past,” he said. “Now to stand out from the noise, you have to be very intentional about building your personal brand, understanding what your customer needs are and then intersecting that with what you do well.”

Going Solo as Independent Contractors

A reason why more travel advisors are devoting more resources to building brands is another pandemic-era shift de Vries has noticed — travel advisors are willing to branch out on their own and work as independent contractors. Stephanie Turner, the owner of Missouri-based agency Brentwood Travel, said the financial struggles many agencies are driving advisors to work as independent contractors instead of full-time employees. Sixty-two percent of U.S. travel advisors were either laid off or furloughed in 2020. 

“During the pandemic, we had to furlough a lot of people,” Turner said, adding she’s seen independent contractor companies willing to pay higher commissions to advisors. “And a lot of older staff wanted to be able to have their hours and work form home.”

But many of those advisors branching out on their own aren’t doing so without support, with more of them choosing to join host agencies since the start of the pandemic. De Vries sees that support as critical for advisors eager to leverage the relationships they’ve built with customers over the years.

“The network that provides them with technology, administrative support, (and) financial support from an accounting point of view. (It) certainly gives them access to good rates and product offerings.

Back to the Future

So what does the future look like for travel advisors? Although de Vries notes a push in South Africa in recent years to make travel bookings a completely online process, he sees a return to the pre-Internet era. He refers to the phenomenon as Back to the Future, with travelers increasingly eager for a human element in their dealings with travel advisors that technology cannot provide.

“Customers want a good old-fashioned travel agent that knows stuff …. and that I can pick up the phone (and) get the latest information (from),” de Vries said.

“They take the burden off me because I try to phone the airline — nobody answers. I email the airline — nobody answers. I try to contact the (online travel agency) — nobody answers.”   

Travel advisors are poised to have more interactions with consumers in years to come. Close to half of U.S. travelers who rarely or sometimes used travel advisors in the past have said they’re more likely to use one post-pandemic.

That potential boom in customers gives advisors like de Vries optimism for being able to build long-term loyal customers beyond the pandemic. Although he acknowledges that window is small, he sees an valuable opportunity for travel advisors.

“Those that leverage this opportunity have a real chance to develop meaningful, long-standing relationships that will also not only make them sustainable but will allow them to grow their businesses,” de Vries said. “Because nothing beats a reference.”

Oregon travel advisor Philippi is also eager to take advantage of that opportunity.

“Clients want desperately to travel and my job is to make that happen if at all possible,” she said. “It usually is, but there’s a lot more to it than there was before Covid. I’m finding reserves of patience I didn’t know existed.”

She then summed up that major shift.

“When I took a group to Morocco last November, I spent more time discussing insurance than I did talking about the destination. (Ninety percent) of the questions were those what-if questions. Formerly that was maybe a ten-minute conversation, but now it’s more like half an hour in many cases.”

Source: Skift

Airlines temper flying ambitions after chaotic — but profitable — travel rebound

Travel rebound

The leaders of the country’s biggest airlines learned a hard lesson this summer: it’s easier to make plans than to keep them.

The three biggest U.S. carriers — DeltaUnited and American — are dialing back their flight growth ambitions, an effort to fly more reliably after biting off more than they could chew this year as they chased an unprecedented rebound in travel, despite a host of logistical and supply chain constraints as well as staffing shortages.

The cuts come as airlines face elevated costs that they don’t see easing significantly just yet, along with the possibility of an economic slowdown and questions over spending by some of the country’s biggest corporate travelers.

Building buffers

United Airlines estimated it would restore 89% of 2019 capacity levels in the third quarter, and about 90% in the fourth. In 2023, it will grow its schedule to no more than 8% above 2019′s, down from an earlier forecast that it would fly 20% more than it did in 2019, before the Covid-19 pandemic hamstrung travel.

“We’re essentially going to keep flying the same amount that we are today, which is less than we intended to, but not grow the airline until we can see evidence the whole system can support it,” United CEO Scott Kirby said in an interview with CNBC’s “Fast Money” after reporting results Wednesday. “We’re just building more buffer into the system so that we have more opportunity to accommodate those customers.”

American Airlines CEO Robert Isom also spoke of a “buffer” after reporting record revenue on Thursday. That carrier has been more aggressive than Delta and United in restoring capacity but said it would fly 90%-92% of its 2019 capacity in the third quarter.

“We continue to invest in our operation to ensure we meet our reliability goals and deliver for our customers,” Isom wrote in a staff note, discussing the airline’s performance. “As we look to the rest of the year, we have taken proactive steps to build additional buffer into our schedule and will continue to limit capacity to the resources we have and the operating conditions we face.”

Delta, for its part, apologized to customers for a spate of flight cancellations and disruptions and said last week said it would limit growth this year. It earlier announced it would trim its summer schedule.

On Wednesday, Delta deposited 10,000 miles into the accounts of SkyMiles members who had flights canceled or delayed more than three hours between May 1 through the first week of July.

“While we cannot recover the time lost or anxiety caused, we are automatically depositing 10K miles toward your SkyMiles account as a commitment to do better for you going forward and restore the Delta Difference you know we are capable of,” said the email to customers, a copy of which was seen by CNBC.

By trimming schedules airlines could keep fares firm at sky-high levels, an important factor for their bottom lines as costs remain elevated, though bad news for travelers.

“The more airlines limit capacity the higher airfare they can charge,” said Henry Harteveldt, founder of Atmosphere Research Group and a former airline executive.

Preserving the bottom line is key with economic uncertainty ahead.

“They’re not going to get another bailout,” Harteveldt said. “They’ve squandered a lot of their goodwill.” 

More disruptions, higher revenue

Since May 27, the Friday of Memorial Day weekend, 2.2% of flights by U.S.-based carriers were canceled and nearly 22% were delayed, according to flight-tracker FlightAware. That’s up from 1.9% of flights canceled and 18.2% delayed in a similar period of 2019.

Staffing shortages have exacerbated routine problems that airlines already faced, like thunderstorms in spring and summer, leaving thousands of travelers in the lurch because carriers lacked a cushion of backup employees.

Airlines received $54 billion in federal payroll aid that prohibited layoffs, yet many of them idled pilots and urged staff to take buyouts to cut costs during the depths of the pandemic.

Airport staffing shortages at big European hubs have similarly led to flight cancellations and capacity limits. London Heathrow officials last week told carriers that it needed to limit departing passenger capacity, forcing some airlines to cut flights.

“We told Heathrow how many passengers we were going to have. Heathrow basically told us: ‘You guys are smoking something,’” United CEO Kirby said Wednesday. “They didn’t staff for it.”

A representative for Heathrow didn’t immediately comment.

Still, the big three U.S. carriers all posted profits for the second quarter and were upbeat about strong traveler demand throughout the summer.

For American and United it was their first quarter in the black since before Covid, without federal payroll support. Revenue for both airlines rose above 2019 levels.

Each carrier projected third-quarter profit as consumers continue to fill seats at fares that far exceed 2019 prices.

Source: CNBC

With months to go, Dubai hotels see a bumper rise in Qatar World Cup 2022 bookings

Qatar World Cup 2022

Hoteliers across Dubai are seeing a surge in room bookings ahead of the Qatar World Cup 2022, with many expecting to be at full capacity during the football festival.

With less than four months to go before fans descend on the region, with many planning to use neighboring countries to Qatar – including the UAE – as a base to travel to and from tournaments, hotels are expecting a bumper spell in tourism.

As one of the UK’s largest hotel brands with a growing number of hotels in the Middle East, Premier Inn is gearing up for an influx of guests at its 11 properties in the UAE and Qatar.

Simon Leigh, managing director of Premier Inn MENA, told Al Arabiya English: “The World Cup, which falls during the peak travel season for inbound tourists, will be another boost for the tourism and hospitality sectors, and will further establish the UAE and the wider region as a world-leading destination for visitors from across the globe.”

He continued: “Premier Inn hotels will be a hive of activity – in terms of overnight accommodation and people watching the games at our food and beverage outlets – during the tournament. While the event itself is in Qatar, the UAE will be a key hub for fans, be they ticket-holders traveling on shuttle flights to the games or tourists and residents using the UAE as a base to soak up the atmosphere locally.”

He also said the company is seeing increasing demand for bookings at all hotels locations, including the recently opened Premier Inn Barsha Heights, where occupancy for the World Cup period is already at 70 percent.

“As always, there’s also a big appetite for our airport hotels in Dubai and Abu Dhabi, where guests are booking accommodation before their flight or for when they arrive in the country,” Leigh added.

Saad al-Ghamdi is complex director of sales and marketing for a host of Dubai hotels, including Le Meridien Dubai Hotel & Conference Centre, Le Meridien Fairway, Aloft Dubai Airport, Aloft Al Mina, Element Dubai Airport, and Element Al Mina.

These hotels are also preparing to welcome an influx of supporters.

“We’ve already seen a surge in room searches for November over recent weeks and we expect a large volume of ticket holders to base themselves in Dubai throughout the FIFA World Cup,” al-Ghamdi said. “With four of our properties being within such close proximity to the airport we’re confident we’ll see a rise in group and transient bookings for those who wish to use the match day shuttle services provided by regional airlines.”

Bumper boom in final quarter of 2022

Analytic firm Colliers in its latest MENA Hotel Forecast suggests a bumper boom for the tourism industry in the UAE during the final quarter of 2022.

Hotels in Dubai Creek and Festival City are expected to see the biggest increase in occupancy rates since 2021, up 19 percent to an estimated 77 percent for the year.

At Radisson Dubai DAMAC Hills, general manager Siddhartha Sattanathan expects events other than just the Qatar World Cup 2022 to lead to mass group bookings at the hotel.

“Besides the World Cup, we are also looking to capitalize on demand generated for other leading events tied to other sports like Golf, F1, & Rugby,” he told Al Arabiya English. “And let’s not forget that the month has traditionally always been one of the busiest months for inbound tourism over the years given the pleasant weather conditions that we enjoy.”

More than 1.2 million World Cup tickets sold

This week, organizers revealed that more than 1.2 million tickets have been sold for Qatar’s 2022 football World Cup.

The most recent phase of ticket sales, a random selection draw, closed at the end of April with 23.5 million ticket requests coming in largest numbers from Argentina, Brazil, England, France, Mexico, Qatar, Saudi Arabia, and the US, according to FIFA, world football’s governing body.

A total of two million tickets will be available during the 28-day tournament in November and December, said Hassan al-Thawadi, secretary general of Qatar’s Supreme Committee for Delivery and Legacy.

The next opportunity to purchase World Cup tickets will be on a first-come, first-served basis, but the date has not been announced.

World Cup qualification matches have now concluded and all 32 available slots for the tournament have been secured.

Qatar hopes to attract 1.2 million visitors during the World Cup, nearly half of its population.

Source: Al Arabiya News

Airlines protest delayed works on JKIA’s departure terminal

Delays in completion of international departure terminals at the Jomo Kenyatta International Airport (JKIA) are taking a toll on airlines due to occasional congestions at the facility, which has seen passengers miss connecting flights.

Kenya Airports Authority (KAA) started refurbishment of terminals 1B and C at the JKIA in January last year with the agency giving a commitment of completing the exercise in 12 months’ time.

Kenya Airways is one of the airlines that has raised concern over the delays occasioned by the long closure of these terminals, saying it has inconvenienced its departure time at the facility due to the slow processing of passengers.

“The delayed completion of terminals 1B and C is causing a lot of congestion at terminal 1A and long queues during peak time,” said Allan Kilavuka, the chief executive of KQ as the national carrier is known by its international code.

The delays have seen a number of passengers with connecting flights in other airports miss their trips as they arrive late at their next point of departure.

Currently, departing international passengers who would previously use the affected terminals go to Terminal A, creating congestion at the facility given the high number of airlines that have now been combined at the gate.

KAA managing director Alex Gitari did not respond to the Business Daily enquiries by the time of going to press.

KAA said last week that the number of passengers using the facility had grown significantly as the aviation sector returns to normalcy after the disruption caused by the Covid-19 menace in 2020.

An increase in traffic at the airport means that it is taking longer to process passengers before they get to board.

JKIA remains a major regional hub where transit passengers use the facility to connect flights to either US, Britain, or the Middle East.

The Sh936 million renovation programme by KAA on these terminals is meant to enhance security screening at the facility.

The refurbishment of the departure halls at the two terminals is also aimed at improving the check-in activity and enhancing the passenger lounge experience for the customers using the airport.

Its completion will also ease passenger flow and increase efficiency due to the centralisation of security screening procedures and the reallocation of available floor spaces to international departure gates.

KAA has in recent years cancelled a number of projects including the construction of a second runway and the Green Field terminal.

JKIA, Kenya’s main airport, is a major hub for passengers connecting to Europe and America among other destinations.

Kenya’s delay with the expansion of JKIA comes at a time when regional countries are revamping their airport infrastructure as they position themselves to attract global airlines.

Expansion of Tanzania’s main airport is currently on course, a project likely to reduce Dar es Salaam’s reliance on Nairobi for transit flights by some of the European airlines.

Kigali in Rwanda and Bole Airport in Addis Ababa have also been undergoing a facelift as they seek to become a major regional hub.

Source: Business Daily

SAA & Kenya Airways Shake Hands on New Codeshare Agreement

The national carriers of both Kenya and South Africa, Kenya Airways (KQ) and South African Airways (SAA) respectively, have signed a new codeshare agreement that is set to open more destinations for seamless travel opportunities between the two African nations.

This new code-sharing agreement will see each airline sell, under its own code, flights operated by each other – South African Airways or Kenya Airways. SAA’s customers will continue to have the ability to earn Voyager Miles on these new codeshare flights. The deal enables travellers to combine flight segments and baggage on a single ticket and has come about as demand for travelling increases with the world steadily moving into a post-pandemic landscape.

Expanding a Previous Partnership

In November 2021, KQ and SAA signed a Strategic Partnership Framework to work together to increase passenger traffic, cargo opportunities, and general trade by taking advantage of strengths in South Africa, Kenya, and Africa.

Now, this new codeshare agreement builds upon an existing special prorate agreement which was signed earlier this year.

Kenya Airways and South African Airways are also exploring ways to enhance co-operation on their respective frequent flyer programs, including reciprocal earning and redemption opportunities and popular benefits such as lounge access, and will be announcing the details in due course.

Adding New Destinations

Passengers travelling out of South Africa will have more options to travel to African destinations including Nairobi, Dar es Salaam, Entebbe, Mombasa, and Kisumu while KQ passengers will have more choices for travel into Southern Africa including Cape Town, Durban, and Harare immediately.

The growth of the partnership will see the addition of Zanzibar, Kilimanjaro, Juba, Douala, Lusaka Ghana and Nigeria subject to government approval as the airlines seek to offer more options for travellers within Africa.

“We are very pleased to implement the codeshare with SAA which offers our shared customers more options and flight combinations. As part of our Strategic Partnership Framework, we will contribute to making it easier for passengers to reach exciting new destinations within Africa,” said Allan Kilavuka, Kenya Airways CEO and Group MD.

“The additional destinations we believe will offer better customer journey thanks to the number of frequencies and connections created as well as many opportunities for trade and tourism.”

“We are looking forward to introducing Kenya Airways customers to our award-winning service, and to working closely with Kenya Airways as our partnership will improve the connections between our respective networks,” said Prof John Lamola, interim CEO of South African Airways.

Additional codeshare destinations are being evaluated between the partners and will be announced in due course, the companies say.

Source: IT News Africa

How Much Is Too Much? Will Rising Air Fares Deter Travelers?

air fares

Air fares are rising but traveler numbers keep increasing. At what point will people say enough is enough and wait for air fares to settle?

We all know air fares are going up. It’s a function of too many passengers and not enough seats. We all know how that happened, with the aviation industry underestimating the speed of the recovery and getting caught on the hop. It’s still possible to jag a bargain, particularly if you are flying short haul domestic and not fussed about which airline you fly. But if you are flying further afield and pickier about your carrier, then these days, you are likely to pay considerably more than you once did.

When will passengers say enough is enough regarding fare rises?

But how much is enough? At what price point will travelers put their credit card away and not fly. Airline analytics business OAG surveyed 1,442 passengers using their app in May and came up with some figures. Now, 1,442 people isn’t a huge sample size and if you’ve downloaded their app you are probably already a bit of an airline industry stalker and keen on a plane ride, but let’s take a look at the results with this in mind.

According to OAG, 79% of respondents said a US$50 fare increase wouldn’t make any difference to their travel plans. Increase the fare by $100 and 43% of travelers would go ahead with the trip. Increase the fare by $200 and the proportion of travelers still keen to fly drops to 17%. A $300 fare increase would reduce the number of respondents still willing to fly to just 9%.

Context is everything with air fare rises

Of course, context is everything. If I’m paying $150 to fly five hundred miles on a low-cost carrier, then a $50 fare rise might sting. It’s not a lot of money, but a 33% fare increase seems like an opportunistic sting. If I’m paying $10,000 to fly business class from Los Angeles to Bangkok the long way around, a $1,000 fare increase probably wouldn’t sway the purchase decision. It’s much more money than the low-cost-carrier sting, but as a proportion of the overall fare it is less so (only 10%) and more agreeable to my headspace that is already (apparently) ready to part with $10,000.

“Most travelers are eager to get to their destinations as quickly as possible. Few are willing to wait three to four hours during a layover, even if it means they can save $100-$200 on ticket prices,” says OAG. “More are willing to wait three to four hours to save $300 to $400 on ticket prices. The willingness to wait five hours plus during layovers drops no matter the ticket price.” What OAG didn’t say, and probably should, is what was the baseline ticket price quoted when surveying the respondents. Acceptance (or non-acceptance) of price rises and other travel pains is usually all about percentages of the fare rather than raw dollar values.

People are mostly happy to pay a premium to fly

The survey respondents lived in North America where OAG notes ticket prices jumped 18.6% in April alone (based on Bureau of Labor statistics).

Other than fare rises, what else gets up North American travelers noses and deters travel. 52% of respondents cited scheduling problems like delays and cancelations. 19% of respondents have issues with customer service in the airline industry and 14% mentioned the lack of flight options to where they wanted to go.

The airline industry in the North America and many other parts of the world is pretty messed up right now. Logically, most people would avoid non-essential air travel just to dodge the chaos. But perfectly sane humans are buying expensive flight tickets by the millions to undertake non-essential travel and get caught up in the mess. OAG reckons 300 million North Americans and 1.6 billion people worldwide plan to fly within the next three months. That’s a lot of gluttons for punishment – me included.

Source: Simple Flying