Business travel industry buyers and suppliers alike see a brighter path to recovery following the U.S. government’s announcement it will lift entry restrictions on international travelers and what seems to be the waning of the U.S. late-summer Covid-19 delta variant wave, according to a new survey.

The share of member travel managers and procurement professionals surveyed Oct. 4-13 by the Global Business Travel Association who indicated their travelers were “willing” or “very willing” to travel for business was 78 percent, the highest recorded in the monthly polls the association has conducted since last year and up from 69 percent the month prior. GBTA surveyed 252 member buyers. 

Optimism among travel suppliers and travel management company professionals is increasing too. In fact, 52 percent of suppliers surveyed indicated they were more optimistic about the industry’s recovery than they were in September, with 10 percent more pessimistic. About 55 percent indicated their companies’ bookings had increased month over month, as well. 

GBTA drew a straight line between the decision to ease U.S. entry restrictions and the increased optimism. “While we have seen ever-increasing domestic and short-haul travel, a more accelerated recovery has been hindered by the lack of international transatlantic travel,” GBTA CEO Suzanne Neufang said in a statement. “The opening of the much-anticipated Europe- and U.K.-to-U.S. travel corridors, as well as the opening of land borders to Canada and Mexico, will give a much-needed boost to the business travel ecosystem and global economy.”

To wit, about 23 percent of suppliers surveyed said they believed the amount of international travel to the U.S. would “greatly increase” during the next six months as a result of the U.S. government action, while another 50 percent projected it would “moderately increase,” and 26 percent forecast it would “slightly increase.”

Meanwhile, the daily count of new U.S. Covid-19 cases has dropped steadily after peaking in the latest wave in late August. Business travel bookings seem to have increased commensurately.

Still, 38 percent of the member buyers and procurement professionals surveyed indicated they are more likely to contract with travel suppliers who require guests or passengers to prove they are vaccinated against Covid-19, while another 38 percent indicated they were not. The remainder didn’t know. 

About 90 percent of the 467 buyer and supplier members GBTA surveyed said they were fully vaccinated against Covid-19, with another 1 percent indicating partial vaccination. About 3 percent said they were not vaccinated, and the remaining 6 percent wouldn’t answer. 

Source: Business Travel News

The International Air Transport Association (IATA) has started legal action in the Netherlands in order to prevent the implementation of a new Policy Rule for slot allocation, which would harm the functioning system of slot allocation on the global level and lead to commercial damage for IATA members.

According to IATA’s statement the Rule was implemented by the slot coordination of the Netherlands, ACNL, to take effect for the summer season of next year.

In addition, the Rule establishes a list of priority destinations for slots at three overcrowded Dutch airports – Amsterdam Schiphol, Eindhoven, Rotterdam The Hague – which according to IATA, would violate the EU regulation on the common rules for community air services and the EU Slot Regulation in several aspects, SchengenVisaInfo.com reports.

The Air Transport Association claimed that the Rule was inadequately implemented while emphasising that ACNL one-sidedly applied it without consulting parties involved, as would be required under the law of the EU.

“The application of the Rule in slot allocation decisions compromises the role of the independent and impartial slot coordinators enshrined in EU law, instead requiring priority to be given in their decision-making to a list of destinations. This makes the coordinator the servant of the airport to the disadvantage of the airlines and the consumer,” the Deputy Director-General of IATA, Conrad Clifford, said.

Furthermore, Clifford said that the slot allocation process must serve the consumers’ needs who want to reliably more freight or move, highlighting that airlines should design schedules that meet consumer demand, not the desires of the infrastructure providers.

In addition, it has been highlighted that the Rule compromises the systematic development of air connectivity. Royal Schiphol Group has ignored important principles of slot allocation, such as providing consumers with a choice for services and products and encouraging competitive markets.

“Taking decision-making authority out of the fair and impartial global slot process and putting it in the hands of the airport would therefore be detrimental to the development of efficient air connectivity with negative impacts on individual consumers, businesses and ultimately the Dutch economy,” IATA’s statement reads.

Moreover, IATA has noted that the Rule poses a significant risk to the impartial role of slot coordinators in the EU. Implementing the Worldwide Airport Slot Guidelines (WASG) in line with the law that is currently in force is one of the fundamental principles of coordination as long as there is independence and impartiality in its implementation. However, this Rule contradicts both the EU law and WASG.

Previously, IATA urged governments to end the COVID-19 travel restrictions as these rules are hindering the recovery of air transport while criticising the lack of agreement between countries.

Source: Schengen Visa Info

Hotels in Dubai recorded a surge in occupancy rates in September, boosted by the easing of travel restrictions and the countdown to Expo 2020 in October.

The average occupancy rate rose to 67.2 per cent in September, jumping 51 per cent compared to the same month in 2020, according to hospitality data and analytics specialist STR. September’s performance is also a month-on-month increase from occupancy rates of 58 per cent in August and 53.9 per cent in July.

“Seasonal dynamics and global travel lockdowns that contributed to some of the softness over summer are giving way to an improved travel environment driven by a combination of less-restrictive travel, Expo 2020 and improved seasonal weather,” Shady Elborno, head of macro strategy at Emirates NBD Research, said in a report on the tourism sector on October 19.

“Those factors are likely to continue to support the tourism market into the first quarter of next year, helping place the market back on to a more normalised footing after the impact of the pandemic on this economically important sector,” he added.

Dubai hotels’ September revenue per available room (RevPar) – a key performance metric calculated by multiplying a hotel’s average daily room rate by its occupancy rate – more than doubled, up 117 per cent year-on-year, to Dh271.85 ($74), according to STR data.

The city hosted 2.85 million international overnight visitors from January to July 2021, according to government data from Dubai Tourism and Commerce Marketing.

Dubai was one of the first cities globally to re-open its markets and businesses in July 2020 and continues to stay open, while ensuring strict compliance with health and safety measures. The UAE also has one of the world’s highest per capita Covid-19 vaccination rates. Covid-19 cases in the UAE this week fell to below 100 for the first time in 565 days, according to official figures.

“This bodes well for potential further loosening of restrictions with other countries, which will likely translate into higher tourist inflows with gateways where those travel restrictions are loosened,” according to the travel sector outlook by Emirates NBD, Dubai’s biggest lender.

The removal of the UAE from the UK’s red list in August, followed by the recognition of UAE-administered vaccines from October that allows travel between the two countries with no need for home isolation, “bodes well” for travel with that key source market, it said.

“Furthermore, the loosening of restriction on travel with India, the most important source market for Dubai, is another factor supporting tourist inflows, and likewise Saudi Arabia,” the report said.

Moreover, Expo 2020 Dubai has recorded more than 700,000 visits since October 1.

From October 1 to 17, a total of 771,477 ticketed visits were recorded. Visit numbers have risen by 12 per cent in a week, according to the world fair’s daily briefing. Expo 2020 has a target of 25 million visitors for the duration of the exhibition.

“We expect the global improvement in tourism dynamics, the ongoing loosening of two travel restrictions between the UAE and other countries, weather improvements, and the approach of seasonal holidays to play well in favour of Expo 2020 and overall tourism dynamics in Dubai in the near term,” Mr Elborno said.

Dubai’s non-oil sector continued its growth for the 10th consecutive month and ended the third quarter at its highest three-month average since the end of 2019, with the emirate’s Purchasing Managers’ Index standing at 51.5. A reading above 50 indicates economic expansion while one below points to a contraction.

Confidence in the travel and tourism sector reached a five-month high in September and outpaced that seen in the rest of the non-oil sector, according to IHS Markit’s Dubai PMI. Travel and tourism companies saw a sustained upturn in sales in September, which some respondents linked to increased demand in the run-up to Expo 2020.

Source: The National News

Boeing has forecast that Africa’s airlines will require 1,030 new airplanes by 2040 valued at $160 billion and aftermarket services such as manufacturing and repair worth $235 billion.

The projection is part of Boeing’s 2021 Commercial Market Outlook (CMO), the company’s long-term assessment of demand for commercial airplanes and services.

Africa’s strong, long-term growth prospects for commercial aviation are closely tied to the continent’s projected 3% annual economic growth over the next 20 years. Initiatives such as the African Continental Free Trade Area and Single African Air Transport Market are expected to stimulate trade, air travel and economic cooperation. Additionally, the region’s middle class and working population is projected to double by the end of the forecast period, driving increased demand for air travel, according to Boeing.

The 2021 Africa CMO also includes these projections through 2040:

– Airlines in Africa will grow their fleets by 3.6% per year to accommodate passenger traffic growth of 5.4% annually, the third-highest growth rate in the world.

– Single-aisle jets are expected to account for more than 70% of commercial deliveries, with 740 new planes mainly supporting domestic and inter-regional demand. In addition, African carriers are estimated to need 250 new widebodies, including passenger and cargo models, to support long-haul routes and air freight growth.

– 80% of African jet deliveries are expected to serve fleet growth with more sustainable, fuel-efficient models such as the 737, 777X and 787 Dreamliner, with 20% of deliveries replacing older airplanes.

– Estimated demand for aviation personnel will rise to 63,000 new professionals, including 19,000 pilots, 20,000 technicians and 24,000 cabin crew members.

– Commercial services opportunities such as supply chain, manufacturing, repair and overhaul are valued at $235 billion.

“Africa has healthy opportunities to expand travel and tourism, coinciding with increasing urbanization and rising incomes,” said Randy Heisey, Boeing managing director of Commercial Marketing for Middle East and Africa. “African carriers are well-positioned to support inter-regional traffic growth and capture market share by offering services that efficiently connect passengers and enable commerce within the continent.”

Source: TNA

The battle for the skies is shaping up in the East African region as airlines upgrade their fleet and expand destinations, setting the stage for heightened competition with established carriers such as Kenya Airways (KQ).

The regional airlines are also expanding their interline agreement with foreign carriers as they seek to increase their reach through codeshare.

The interline agreements and expansion of routes, mean that travellers from countries such as Uganda and Tanzania, no longer have to transit via Jomo Kenyatta International Airport to destinations where their local carriers do not fly.

Uganda Airlines, which resumed operations less than two years ago has for the first time started flights to South Africa and Dubai routes after plying within the region since its inauguration.

The Entebbe-based carrier begun the Dubai route a fortnight ago with three flights, and now wants to increase the frequencies from the current three weekly to four or five as the demand on the route grows.

“We are flying a 285-seater craft and on the first day, we flew just 80 people. On the second day, we flew 220 passengers. You can only grow a route depending on the frequency you fly and the market reaction. We will stimulate the route to about four or five times a week,” the airline’s acting chief executive Jennifer Bamuturaki said in an interview with the East African.

Emirates codeshare pact

Dubai is the carrier’s first long-haul intercontinental route, and it’s banking on high number of passengers and frequencies to maintain that destination.

The Ugandan carrier recently entered into a codeshare agreement with Emirates, allowing passengers to fly either carrier on the Entebbe-Dubai route and fly and connect with Uganda Airlines to East Africa.

Also, early this month, Air Tanzania received a delivery of two Airbus A220-300 aircraft lifting the number of this model of airbus in its fleet to four. Air Tanzania first took delivery of the A220 in December 2018, becoming the first African operator to have this type in their fleet.

The Tanzanian carrier is now ready to expand its international reach with additional aircraft that now raises its fleet to slightly over 10.

“With the addition of the A220 in our fleet, we are confident that we will expand our footprint in the growing African markets and beyond, as we unlock additional routes and regain our position as a key player in the African air transport market,” said Ladislaus Matindi, Air Tanzania managing director in a statement.

KQ-South African Airways pact

Air Tanzania and Air India early this year announced an interline agreement between the two carriers aimed at increasing connectivity for customers of both airlines.

Kenya Airways last month signed a memorandum of cooperation with South African Airways with the view to forming a pan-African Airline in future.

The cooperation will see the two carriers look at possible ways of aligning their cargo, passenger and other commercial services in order to form a single entity that will benefit from the huge market where the two airlines operate.

The carriers say the partnership will see an increase in passenger traffic, cargo opportunities, and general trade by taking advantage of strengths in South Africa, Kenya, and Africa.

Last year, Kenya Airways received permission to operate direct cargo flights between Johannesburg and other Southern Africa capitals, capitalising on the absence of South African Airways to serve that market.

Source: The Citizen

The winners of the World Travel Awards for Africa and the Indian Ocean for 2021 have been announced. The World Travel Awards is the foremost authority that recognises and honours excellence in travel and tourism.

Kenya fared well in the Africa categories, with Nairobi awarded ‘Africa’s Leading Business Travel Destination,’ Kenyatta International Convention Centre named ‘Africa’s Leading Meetings & Conference Centre,’ and Kenya Tourist Board recognised ‘Africa’s Leading Tourist Board.’

For the third year in a row, Cape Town was named ‘Africa’s Leading City Destination,’ and Table Mountain was named ‘Africa’s Leading Tourist Attraction.’

Tanzania was named ‘Africa’s Leading Destination,’ thanks to its national parks, wildlife, and palm-fringed beaches.

The Maldives won ‘Indian Ocean’s Leading Destination,’ ‘Indian Ocean’s Leading Beach Destination,’ and ‘Indian Ocean’s Leading Dive Destination’ in the Indian Ocean, cementing its reputation as the ultimate isolated refuge.

‘Indian Ocean’s Leading Tourist Board’ was awarded to Maldives Marketing & Public Relations Corporation.

Meanwhile, Seychelles’ lush woods and palm-fringed beaches helped the islands win the title of “Indian Ocean’s Leading Honeymoon Destination.”

Mysterious Madagascar has been dubbed the “Indian Ocean’s Leading Green Destination,” while Reunion Island has been dubbed the “Indian Ocean’s Leading Nature Destination.”

Source: BOL NEWS

British Airways’ customers will be able to fly to more destinations across Africa, thanks to a new codeshare agreement with Kenya Airways.

Customers flying to Nairobi with British Airways will be able to seamlessly connect onto 20 destinations across east and central Africa, including Douala, Zanzibar, Lusaka, Mombasa, Addis Ababa and Entebbe.

Customers will also have more options to get to popular holiday hotspot, Mauritius and Seychelles.

In the reciprocal agreement, customers flying with Kenya Airways to London, will now be able to connect onto 26 destinations across the UK and Europe that British Airways operates to, including Glasgow, Madrid, Milan, Amsterdam and Frankfurt.

British Airways currently offers four flights a week from London Heathrow to Nairobi, operated by a four class Boeing 777 aircraft.

Christopher Fordyce, British Airways head of alliances, said: “After a difficult 20 months with global travel restrictions, it’s fantastic to see travel between the UK and Africa resuming.

“We are really pleased to be able to offer our customers access to even more destinations across the region thanks to our new codeshare agreement with Kenya Airways, making that bucket list trip even easier to plan.”

Source: Breaking travel news

The aviation sector is facing the most devastating crisis since World War 2 – and the most likely route to helping southern Africa’s regional airline industry survive is opening up the skies.

This is according to Aaron Munetsi, new CEO of the Airlines Association of Southern Africa (AASA). Munetsi takes over from Wrenelle Stander, a former CEO of Comair, who has become CEO of Wesgro – the tourism, trade and investment agency of the Western Cape and Cape Town.

AASA’s airline members represent about 90% of all carriers based in the Southern Africa Development Community (SADC). Its associate members include airport operators, air navigation, commercial airliner and engine manufacturers, banks and fuel companies.

Munetsi believes the biggest opportunity for aviation in southern Africa is intra-regional air service connectivity. He says this is imperative for the SADC’s overall economic recovery and future growth – having a commercially sustainable air transport industry that can connect and carry people and products between the region’s markets and beyond. AASA is advocating for close coordination and cooperation between governments and industry – regardless of who owns the entities involved.

But many of the SADC region’s airlines have ceased operations during the pandemic – some temporarily, some permanently. Many jobs directly and indirectly linked to aviation were lost.

One way of creating a sustainable industry on the continent is to open up the skies, says Munetsi. 

“The framework for liberalising Africa’s skies has evolved from the Yamoussoukro Declaration of 1988 to the Single Africa Air Transport Market (SAATM) of 2018, which now has 35 signatories. The post-pandemic restart is the perfect opportunity to kick-start the SAATM,” says Munetsi.

“It is essential to energise the African Continental Free Trade Agreement which supports and promotes the free movement of people, goods and services across the African continent. This will generate additional trade, promote employment, stability, security and unlock the broader GDP benefits that unimpeded intra-African air connectivity will bring for each country and its communities.”

Munetsi – who was at SAA for more than 20 years in various management roles and based in eight countries during his career – says the opportunity to lead AASA at this critical juncture was “too exciting to pass up”.

Munetsi says a key challenge is that while demand is slowly returning, there is little pricing elasticity in southern Africa’s airline market, which means airlines have to walk a tightrope in a bid to grow market share, cover costs and eke out a slender margin.

Meanwhile, regaining passenger confidence in air travel remains a priority amid lingering concerns over Covid-19 infection.

Munetsi foresees that AASA will continue to play an ever-increasing role in raising concerns and proposing solutions through interaction with all key stakeholders, including air transport policymakers and regulators.

“The present financial sustainability challenges are the most severe peacetime test AASA’s members have faced. AASA, the African Airlines Association (AFRAA) and the International Air Transport Association (IATA), continue to lobby governments to provide financial relief and support to the entire industry,” he says.

“We appreciate the competing demands on the public purse, but aside from cash injections in airlines, governments could provide relief by reducing, deferring, scrapping or waiving the numerous taxes, levies and statutory charges on air travel and airfreight.”

Willie Walsh, director-general of IATA, recently used Airports Company SA (ACSA) as an example of some airports wanting to increase charges “to recover the money that airlines could not spend with them during the Covid-19 crisis”. ACSA has proposed raising its charges by 38% in 2022 to offset losses incurred as a result of the impact of Covid-19. ACSA says the claim is unfounded.

Munetsi says another way of assisting the aviation industry is to ratify the Cape Town Convention of 2000, which enshrines the ownership rights on leased aircraft and other moveable assets. By removing the risk of aircraft being seized by third parties, airlines would access far lower lease, financing and insurance rates. The convention has been widely adopted and implemented by most countries, but, 20 years later, South Africa, for example, is yet to ratify the agreement.

Source: Fin24

The Chief Executive of the Dubai Tourism Corporation and Marketing, Issam Kazim says the Dubai Expo 2020 which opened on the 1st of October will offer peoples of diverse cultures around the world, an opportunity to see world class destinations, the latest advancements in technology and tourist attractions all in one.

He said the Expo is part of efforts to showcase Dubai and announce the recovery of the tourism sector from the pandemic, which ravaged the world in 2020.

Kazim also disclosed that they were also working with the Afrozons Dubai Sound Off project as a partner to bring more celebrity anchors from Nigeria, five other African countries and the United States with over 70 lucky tourists and their guests to experience the beauty and transformation of Dubai.

The Sound Off is specially designed to showcase Dubai as a destination of choice for Africans in diaspora.

The event which kicked off on the 1st of October and also lasts for the next six months, is set to increase awareness about Dubai, among global audiences and to attract tourists and investment into the Emirate.

This Expo 2020 will run alongside the maiden edition of the Afrozons Dubai Sound Off, offering an exceptional travel experience for any would be visitor to Dubai. The Sound Off promotion will culminate with the selection of 70 Afrobeat lovers and their guests for a trip to Dubai, giving them an opportunity to experience Dubai like never before.

The winners will be joined by their favourite celebrity radio anchors from the U.S , Nigeria, Tanzania, Kenya, Ghana, Zambia, and Angola to see the beauty of Dubai and experience the grandeur of the Dubai Expo 2020.

The winners of the giveaways and their guests will receive complimentary flight tickets, hotel accommodation, tours, airport transfers, and visas where necessary.

Source: Leadership

The UAE has shown great improvement over the last couple of months in the Skift Recovery Index, with travel performance hitting 77 percent of pre-pandemic levels in September, a jump of 8 percentage points compared to last month.    

This improvement of travel’s performance goes hand-in-hand with a strong decrease in Covid cases in the country. Daily new cases are currently at the lowest level since August 2020, having shown a consistent downward trend since June. As of the end of September 2021, 82 percent of the population has been fully vaccinated, one of the highest rates globally. 

The question is of course what the coming months will bring. We have asked a number of our data partners to provide forward looking data for the UAE, or Dubai specifically if available, to examine the strength of its travel market as it sets off on an important six months.   

According to data from revenue management system Duetto, Dubai hotels have seen a strong uptick in hotel bookings for the period of the Expo, but as with search trends, this has only recently started to pick up. Due to uncertainty about border openings and travel restrictions, we have seen much shorter booking windows during the pandemic, and this data confirms that this is still the case, even in the case of a major event like the Expo.

What is interesting, though, is that this uptick in demand is finally allowing hotels to increase their Average Daily Room Rates. Data from RateGain’s new Demand.AI platform shows that hotels have been able to increase prices considerably for the rest of the year. While the average room rate was AED312 on the first day of October 2020, this was AED468 (+50 percent) on the same day in 2021. And prices for the remainder of 2021 remain consistently over 50% higher than in 2020. 

In the full report Skift further analyses the performance of the vacation rental and flight segments, using data from Beyond, Transparent, OAG, and Skyscanner. 

Source: Skift