Navigating the Future: Empowering Travel and Tourism Through Online Payments

18 Apr 2024 – By Bryan Obala.

In the fast-evolving landscape of travel and tourism, the role of online payments has become more vital than ever before. Projections indicate that by 2033, the industry will soar to a staggering $15.5 trillion, contributing significantly to the global economy bloomberg. Particularly in developing markets across Africa, where new destinations are emerging as hotspots, the potential for growth in the travel industry is immense.

To capitalize on this growth, travel merchants must align with consumer expectations by offering seamless and reliable payment systems, with online sales projected to constitute 74% of total revenue by 2027. Here are five essential strategies that can help travel merchants meet these increasingly high consumer demands:

  1. Transparency: Be clear and specific about the payment options available to consumers. Transparency builds trust and enhances the buying experience.
  2. Security: In an era of burgeoning travel e-commerce, robust cybersecurity measures are indispensable. Offering secure payment options helps instill confidence and protects against fraud, which saw a concerning 156% increase in the global travel and leisure industry in 2021.
  3. Convenience: Tailor payment options to meet consumer preferences. Personalized services, including currency options and bundled offerings like travel insurance, enhance convenience and satisfaction.
  4. Reliability: High authorization rates are key indicators of success. Optimizing authorization rates not only drives incremental revenue but also fosters customer loyalty and repeat business. Even a slight improvement in authorization rates can translate into significant additional revenue, enabling businesses to fund expansion and innovation initiatives.
  5. Flexibility: Embrace Buy Now, Pay Later options to accommodate the diverse financial needs of travelers. Offering flexible payment solutions encourages purchase completion and enhances the overall shopping experience.

Looking ahead, the future of travel and tourism is brimming with possibilities. As businesses chart their course forward, prioritizing transparency, security, convenience, reliability, and flexibility will be paramount. By embracing these principles, merchants can navigate the dynamic landscape of global travel and ensure that everyone reaps the economic benefits of this thriving industry.

High flight ticket taxes and fees slowing air transport in Africa.

Taxes and fees charged on African air tickets are higher than what airlines in other continents charge and are inhibiting air transport on the continent. According to the African Airlines Association (Afraa), a leading trade association of airlines based in Ghana that researches aviation, the average amount paid in taxes and fees by passengers in Africa is more than twice what air travelers in other continents pay.

Taxes and fees on African air tickets averages $64 while in Europe it averages $30 per ticket while it is even lower in Middle East at $29.65.

The high add-on fees have inhibited the growth of air travel on the continent that is grappling with high poverty rates.

Regionally, Western and Central Africa rank as the most expensive regarding international passenger charges averaging $94.59 and $93.74.

Unfriendly Environment

However, passengers from Northern Africa pay the lowest in taxes and fees averaging $26.27. The charges have been blamed on the unfriendly business environment, poor governance and less subsidies given to airlines in Africa compared to those abroad.

East African Business Council in a study on air space liberalization in the EAC shows average departure charges account for 13 percent of the ticket prices for flights in EAC and eight percent for flights to other African countries. Afraa notes that despite efforts by airlines to offer passengers low fares, taxes and fees cause total ticket prices to more than double of the base rate.

“The low purchasing power in Africa calls for interventions to evaluate the issue of high taxes and fees to stimulate demand and make air transport affordable to African citizens”, Afraa recommends.

Apart from passenger taxes levied directly on the ticket, airlines incur other charges connected to their operations in airports such as aircraft charge, landing, parking, passenger bus, and hangar among others.

Operational Costs

In 2019 as noted by Afraa, the International Civil Aviation Organization, a United Nations agency, regulations stipulated fuel that accounted for 24.7 percent of operational costs by African airlines was not to be taxed.

However, other particular taxes and fees are applied to passengers.

Source: Business Daily Africa  

Accessible Tourism Emerges as A Vital Growth Opportunity for Africa’s Travel Industry.

The untapped potential of inclusive tourism to drive the growth of Africa’s travel industry was in focus at this year’s Africa Travel Week 2024 part of WTM Africa. A diverse panel of advocates, experts, and tourism suppliers engaged in a discussion, highlighting the significant economic benefits that travelers with disabilities can bring to the continent.

Inclusive travel is a billion-dollar industry that Africa can tap into, and the panelist’s emphasized the unique spending patterns of this market segment. Travelers with disabilities often spend more, travel with companions, and stay for longer periods, making them a lucrative target for the industry.

According to the World Health Organization, over 1 billion people worldwide, or 15% of the global population, live with disabilities. This vast demographic encompasses a range of visible and invisible conditions, from mobility issues to cognitive and sensory challenges. As the world’s population ages, with the number of people over 60 expected to double by 2050, the need for accessible travel is only expected to grow.

“It’s not just a social imperative, it’s a financial one,” said Tarryn Tomlinson, CEO of LiveAble. “The onus is on property owners to make their facilities as accessible as possible.”

Panelists highlighted the unique challenges faced by travelers with disabilities, from a lack of information about accessible amenities to physical barriers that limit their ability to fully enjoy their travel experiences. “Disability doesn’t mean the same for everyone,” said Lois Strachan, host of podcast A Different Way of Seeing. “Needs are different, and we need to engage with them to find out what they need. Information about how you can accommodate their needs is the most important thing for travelers with disabilities.” She stated that guesthouses and hotels should incorporate this into their marketing to attract differently abled travelers. 

Jabaar Mohamed, the Provincial Director for DeafSA Western Cape, shared the specific challenges faced by deaf travelers, such as being offered wheelchairs at airports despite their hearing impairment. “It’s important for all those that work in hospitality to be trained to ask individual travelers what their needs are, rather than making assumptions,” he said. 

Panelists shared inspiring success stories and best practices from destinations and businesses that have embraced inclusive tourism. Briony Brookes, representing the City of Cape Town, highlighted the city’s “Limitless CT” initiative, which includes features like braille QR codes at street art and audio options on the tourism website.

“We want to appeal to all travelers, not only those that are fully abled,” Brookes stated. “We’ve seen fantastic results since we made small changes to showcase how we are a welcoming and inclusive destination.”

The session concluded with a call to action for the African tourism industry to recognize the significant opportunities presented by the accessible travel market and to work towards making the continent a more inclusive and welcoming destination for all.

Source:   Africa.com

Bridging the Gap between Fintech and Traveltech.

The integration of finance and technology, known as fintech, has revolutionised traditional banking and payment systems, transforming how we live, work and travel. Similarly, travel technology, or traveltech, has empowered travellers with convenient booking platforms and personalised experiences. It makes sense then that significant opportunity exists to bridge the gap between these two sectors to unlock their full potential — particularly in Africa.

Africa’s travel and tourism sector has immense growth potential. But a major hurdle that first needs to be overcome is the large percentage of the continent’s population who remain unbanked, particularly when it comes to facilitating payment for travel and tourism services. Additionally, there is a need to digitise existing products and services to enhance market access and the experience for all travellers and improve operational efficiencies for businesses operating in the sector.

From a fintech perspective, it is crucial to identify ways to facilitate transactions between businesses in the tourism sector and payment oversight entities. One successful example of this is mobile money, which has gained significant traction across Africa with platforms like M-Pesa in Kenya leading the way. Integrating mobile payment solutions into traveltech platforms can cater to the large unbanked population and provide convenient payment options for travellers throughout the continent.

Cross-border remittances already play a critical role in many African countries, as they heavily rely on payments made from the diaspora. Fintech can help here by facilitating affordable and convenient cross-border money transfers for travel purposes. Blockchain-based solutions, for instance, can reduce costs, improve transparency, and accelerate the speed of transactions, benefiting both travellers and their families.

Fintech platforms can introduce micro-investing or savings features specifically designed for travel purposes. By enabling individuals to save small amounts of money regularly, these platforms can help people build travel funds over time. Fintech solutions can also address the challenges of financial inclusion in Africa by leveraging alternative data sources for credit scoring and providing access to credit for individuals with limited formal banking history. This can empower more people to travel and support the growth of domestic tourism within the continent.

To better incorporate fintech into existing traveltech solutions, online travel agencies and digital travel platforms should consider integrating fintech solutions to streamline payment processes, provide secure transactions, and even offer financial services like micro-insurance or access to credit for travel expenses. Platforms like Airbnb, for instance, which have already disrupted the traditional accommodation industry could benefit from fintech integration to facilitate seamless and secure payment processes between hosts and travellers.

Africa’s rich natural and cultural heritage presents opportunities for sustainable tourism initiatives. Fintech can support impact investing in sustainable tourism by providing crowdfunding or investment platforms that connect travellers, local communities, and investors interested in supporting environmentally friendly and socially responsible travel projects. This could be realised through peer-to-peer lending or crowdfunding that supports the growth of alternative accommodation providers or local travel start-ups in Africa.

Loyalty programs are an essential tool for fostering customer loyalty and engagement in the travel industry. By leveraging fintech solutions, data analytics, and social impact initiatives, loyalty programs in Africa can enhance the customer experience. Personalised rewards based on local preferences can be integrated into mobile-first solutions, further driving customer retention, repeat bookings, and overall industry growth.

While there are significant benefits to integrating fintech and traveltech, it is crucial to address potential risks. Data breaches, identity theft, and unauthorised access to financial accounts are serious concerns that must be mitigated through robust security measures. Seeking guidance from mentors or professionals, implementing backup plans and alternative payment methods, prioritising data privacy, and complying with regulations are essential steps in managing these risks.

Regulatory compliance is another critical aspect to consider. Fintech and traveltech platforms must understand and adhere to relevant financial regulations, such as anti-money laundering (AML) and know-your-customer (KYC) requirements, to ensure compliance and build trust among users.

Moreover, the travel industry is susceptible to market volatility, geopolitical events, and natural disasters. To offset these risks, platforms must diversify their offerings, have contingency plans, and stay updated on market trends and advisories.

Access to capital can also be a challenge for fintech and traveltech solutions. Limited credit history or collateral may hinder entrepreneurs and businesses from accessing the necessary funds. It is important then to carefully evaluate fintech lending platforms and ensure alignment with financial capabilities.

Bridging the gap between fintech and traveltech holds immense potential for Africa’s travel and tourism sector. By incorporating fintech solutions into existing traveltech platforms, we can enhance payment processes, facilitate secure transactions, promote financial inclusion, and support sustainable tourism initiatives. However, it is vital to address potential risks and challenges through robust security measures, regulatory compliance, and contingency plans. With careful implementation and collaboration, fintech and traveltech can work together to unlock the full potential of Africa’s vibrant travel industry..

Source: bbrief.co.za

Etihad Airways Unveils Daily Service to Nairobi reconnecting East Africa with the UAE.

12 Apr 2024 – By Bryan Obala.

Etihad Airways is gearing up to reconnect East Africa with a brand-new daily service to Nairobi, slated to kick off on May 1, 2024.

In partnership with the Kenya Association of Travel Agents (KATA), Etihad Airways is pulling out all the stops for a spectacular launch event. This exclusive occasion will take place at the newly inaugurated JW Marriott Hotel, the tallest hotel in Kenya boasting an impressive 35 storeys.

This non-stop flight will whisk passengers from Etihad’s hub in Abu Dhabi to Nairobi, with departure scheduled for 9:05 and arrival at 13:15 local time. Return flights will depart Nairobi at 18:10, arriving back in Abu Dhabi at 00:20.

Operating this route will be the Airbus A320 aircraft, boasting both business and economy cabins to cater to diverse passenger needs.

Beyond simply facilitating travel, this service heralds a vital reestablishment of direct commercial connections between these two vibrant cities. It’s poised to catalyze a surge in cross-business collaborations and trade opportunities between the United Arab Emirates and Kenya.

Excited to embark on this journey? Tickets are already available for purchase via Etihad Airways’ website. Secure your seat now and get ready to explore the wonders of East Africa like never before!

Airlines Cancel Mogadishu Flights as US Embassy Issues Do Not Travel Warning.

On April 9, a few flights to Mogadishu Aden Adde International Airport were canceled after the US Embassy issued a security threat alert. However, some airlines have resumed flights to the Somali capital.

US Department of State level-four travel advisory.

On Monday, the US Embassy in Nairobi received information about threats to several areas in Mogadishu, including the country’s largest and busiest airport – Aden Adde International (MGQ). As such, all movements of US Embassy personnel were canceled for Tuesday, April 9.

According to the US Embassy in Somalia, the US Department of State level-four travel advisory “do not travel” for Somalia had remained in effect because of crime, terrorism, civil unrest, health, kidnapping, and piracy concerns. The embassy warned of terrorists continuing to plot kidnappings, bombings, and other attacks, targeting airports and various areas that attract large crowds and Westerners.

In response to the alert, some major airlines canceled services to Mogadishu while other flights were diverted to nearby airports. According to Flightradar24, Turkish Airlines canceled Flight TK646 from Istanbul (IST), scheduled to arrive at 09:05 local time. Qatar Airways Flight QR1459 from Doha (DOH) was also canceled. It was expected to land at Aden Adde Airport at 15:35.

Flydubai Flight FZ609 from Dubai International Airport (DXB) was scheduled to arrive at 11:55, but the service was also canceled. Meanwhile, a Daallo Airlines Boeing 737 operating Flight D3169 from Jeddah to Mogadishu was diverted to Djibouti (JIB).

Resumption of flights to Mogadishu

The US Embassy advised travelers to exercise caution while in Somalia, review personal security plans, notify trusted individuals of travel and movement plans, stay alert in locations frequented by tourists or Westerners, and stay updated by following local media and news outlets. However, there have been no reports of any incidents at the airport.

Turkish Airlines has up to six weekly flights from Istanbul to Mogadishu this month. Flightradar24 shows that the airline has resumed services to the Somali capital. Its April 10 flight operated normally, arriving in Mogadishu at 08:24. Daallo Airlines also resumed its service to the airport, with Flight D3169 landing at 08:32.

There are about 12 airlines with scheduled passenger flights to Mogadishu, connecting the airport with various destinations in Africa, Europe, and the Middle East. Flydubai and Qatar Airways operate two and four weekly flights to Mogadishu, respectively. Other airlines include Freedom Airline Express, Ethiopian Airlines, Kenya Airways, and Uganda Airlines.

Somalia’s air transport sector

Over the last three months, Somalia’s air transport sector has come under the spotlight for various reasons. In separate developments, airlines flying over the Horn of Africa have reported multiple incidents of receiving conflicting instructions from air traffic controllers amid the airspace dispute between Somalia and the unrecognized territory of Somaliland.

In the latest incident, the Somaliland Civil Aviation and Airports Authority (SCAAA) reported a near miss involving an Emirates Boeing 777 and an Ethiopian Airlines Boeing 737 MAX. However, Emirates and other industry experts disputed the claims. The report came about a month after an Ethiopian Airlines Airbus A350 and a Qatar Airways 787 nearly collided over Somaliland. In this case, TCAS stepped in to avert disaster.

While there have been several incidents and safety concerns, the Somali government is also taking strides to improve the country’s aviation sector. In January 2024, the Ministry of Transport and Aviation opened the country’s first MRO facility in over three decades. The center, known as the Blue Hangar, is expected to contribute towards improving safety in Somalia. Furthermore, the Somali Civil Aviation Authority (SCAA) recently inaugurated its new headquarters at Aden Adde International Airport.

Source: Simple Flying.

Why Dubai

Dubai, as a global economic centre, offers a diverse range of options for business events across various budgets.

Complementing its broad infrastructure and venues, Dubai is truly a vibrant hub for innovation and knowledge sharing. From large-scale conferences to intimate meetings, the city accommodates events of all sizes against the backdrop of a rapidly growing knowledge economy.

Its strategic location provides unparalleled access to emerging markets, making it an ideal platform for discussing the latest developments and fostering sustainability. With a multicultural environment, seamless connectivity across the city and its airports, and a history of convening global gatherings, Dubai guarantees an empowering experience for delegates, enabling them to capitalise on networking opportunities and maximize connections in this dynamic city.

Choose Dubai for unmatched business events today.

Source: Visit Dubai.

Qatar Airways Announces the Launch of Flights to Democratic Republic of Congo

Qatar Airways announces the latest expansion of its network to include Kinshasa, Democratic Republic of Congo (DRC), enabling greater frequencies and increased capacity to Luanda, Angola.

This latest network expansion  provides passengers with greater travel choices within a key region of Africa,  opening up a new entry point for international travel from Africa to China, Europe and the India Subcontinent using Doha, Qatar, as a gateway. The addition of Kinshasa increases the number of destinations in Africa served by the award-winning airline to twenty-nine.

Starting from the first of June 2024, Luanda will see a frequency increase from one weekly flight to four weekly flights with a combined service to Kinshasa which Qatar Airways will serve for the first time. For a world-class experience, the new route will be served by a Boeing 787-8 Dreamliner, equipped with 22 Business Class seats and 232 Economy Class seats.

Qatar Airways Chief Commercial Officer, Mr. Thierry Antinori, said: “We have seen significant milestones in our 2024 network expansion and this latest addition is particularly special, as it continues our strategic goal of increasing our footprint in Africa.”

“The inclusion of Kinshasa in our network is the latest manifestation of our efforts to improve connectivity to Africa. Qatar Airways has showcased its commitment to the region by providing passengers in Africa with greater choice to explore different corners of the world through our network and our hub in Doha, Hamad International Airport.”

Source: Airspace-Africa.

WTM Africa 2024 opens to 53% increase in attendees.

WTM Africa, which takes place at the Cape Town International Convention Centre (CTICC) from 10-12 April, opened its 10th edition with a remarkable surge of 53% in attendance compared to the previous year. The increase in participation, with preliminary figures suggesting representation from 88 countries globally, heralds a bright future for the African tourism industry.

Africa Travel Week, under which the World Travel Market is a part also comprises shows like the Tourism Investment Forum Africa (TIFA), and Equal Africa among others. The show also features seven networking events and the support of 53 partners.

Carol Weaving, managing director of RX Africa, comments: “We are incredibly proud to celebrate the 10th anniversary of Africa Travel Week with such a phenomenal turnout. This growth is a testament to the resilience and rising global appeal of the African tourism industry. We’re excited to contribute to the continued success and positive transformation of travel on the continent.”

The addition of first-time participants, including Greece, Iran, Switzerland, Lithuania, Tunisia, Benin, Philippines, Singapore, New Zealand, Japan, Colombia, and Peru, brings fresh energy and diverse perspectives to the event.

Minister Patricia De Lille, though unable to attend in person, officially opened the conference via video call. She welcomed attendees and highlighted the need for collective efforts to continue the momentum of tourism in Africa: “This year represents a year where we can take measures to break new ground and achieve exponential growth in our numbers.”

Charting a sustainable future

Minister De Lille emphasised the importance of safety, sustainability, and expanding tourism beyond well-known destinations to include the hidden gems of lesser-known towns and villages across the continent. She also noted: “Tourism is one of the most significant contributors to our economy, but we can do much more. One of the areas where the department is investing in supporting economic sustainability is through our various tourism incentive programmes.”

A highlight of the opening day was the lively content discussions, where topics like responsible animal interactions sparked crucial ethical debates. Cathrine S. Nyquist, Co-founder of Panthera Africa, made a powerful statement: “Just because it’s legal does not make it right.”

The day also featured a dynamic Responsible Tourism session hosted by Harold Goodwin, World Travel Market’s Responsible Tourism Advisor. Three of the five African winners from the 2023 Responsible Tourism Awards shared their inspiring stories, demonstrating the continent’s commitment to sustainable travel practices.

The conference day closed with the inaugural Media Awards, recognising excellence in African travel journalism. Winners included:

• Sustainability Feature Award: Alexander Okere – Illegal Animal Trade

• Visual Tourism Award: Kelly Hammond

• Destination Feature Award: Phoebe Smith

• Tourism News Award: Adele Mackenzie – Tourism Update

“Africa Travel Week 2024 serves as a testament to the continent’s vast potential in tourism. It highlights the collective commitment to fostering growth, innovation, and sustainability. As Minister De Lille declared, ‘We are open for business. We are open for tourists’, extending an invitation to the world to experience the rich diversity and beauty of Africa,” concludes Weaving.

Source: Bizcommunity.

Kenya Airways launches new Route to Maputo.

In response to growing demand for travel between East and Southern Africa, Kenya Airways (KQ) has launched a brand-new route connecting Nairobi directly to the vibrant city of Maputo, Mozambique.  This exciting expansion takes flight from 14th June 2024, further solidifying KQ’s commitment to strengthening its network and offering seamless travel experiences across the continent.

“The demand for air travel is soaring, and we’re determined to meet it by expanding our reach and fostering connections between Africa’s rich cultures and thriving economies,” says Julius Thairu, Chief Commercial and Customer Officer at Kenya Airways. “The addition of Maputo to our network strengthens ties between Kenya and Mozambique, opening doors for increased trade, tourism, and cultural exchange.”

Beyond its designation as a major trade hub for southern Africa, Maputo enchants visitors with its rich tapestry of history and culture. Portuguese colonial influences are evident in the city’s architecture, while vibrant markets and a flourishing art scene offer a glimpse into contemporary Mozambican life.  Whether you seek relaxation on pristine beaches or exploration of fascinating museums, Maputo promises an unforgettable experience.

Starting 14th June, KQ will operate three flights per week to Maputo, with Wednesdays, Fridays, and Sundays becoming the flexible gateways to exploring this dynamic city.  Beyond Maputo, this expansion complements KQ’s broader network strategy for FY2024, which also boasts increased frequencies to popular destinations like New York, Paris, Lagos, Accra, and Freetown.

Source:   Airspace-Africa