Proposed VAT on air travel will affect all, not just the rich

KATA officials led by Chairman Dr Joseph Kithitu and CEO Nicanor Sabula presented a petition to the National Assembly Committee of Finance and Economic Planning on behalf of members of the Kenya Association of travel agents (KATA) at the ongoing public participation forum.

The petition called for the scrapping of the proposal to introduce VAT on air ticketing services supplied by Travel Agents. The petition termed the proposals as discriminatory and one that would disadvantage Kenyan agents, lead to loss of business competitiveness, closure of businesses and job losses.

The short-term gains from VAT collection would be far outweighed by long-term declines in overall tax revenues.

A recent newspaper report on a raft of proposals by the National Treasury to among others introduce taxes targeting the aviation sector rekindled the old-aged, misguided characterization of air travel as a “luxury service” enjoyed exclusively by the rich.

This is far from the truth and is misrepresentative of Kenya’s modern economy and the realities of its travel industry.

In the proposals, the National Treasury is seeking to introduce 16% VAT on a number of air travel related services such as air ticketing services by travel agents, hiring, chattering and leasing of aircrafts, aircraft navigation systems among others.

This adjustment, Treasury argues, is a necessary step towards expanding the tax base and ensuring that a wider array of services contributes to national revenue. While the government’s decision to provide tax relief on essentials such as bread and unga is widely welcomed, the suggestion that air travel taxes are a “raid” on the wealthy overlooks the widespread use and importance of air travel across socio-economic strata in Kenya.

Air Travel is a Growing Necessity, not a Luxury

Kenya’s air travel industry has grown rapidly in recent years, reflecting the country’s expanding middle class, the growth of domestic tourism, and the rise of affordable travel options.

Domestic airlines like Jambojet, Skyward and; Safarilink have made it possible for Kenyans from diverse income levels to travel domestically, whether for business, education, family obligations, or tourism.

For instance, it’s now common to find fares from Nairobi to Mombasa or Kisumu for as low as Sh5,000, making air travel an attractive alternative to long bus journeys, particularly in terms of safety and time saved.

Moreover, in some areas where road infrastructure is still developing, air travel remains the only practical choice of travel allowing people to traverse the country with ease and efficiency.

Granted, air travel in Kenya still remains expensive for the average Kenyan- however, to assume that those flying between cities such as Nairobi, Eldoret, Kisumu, Lodwar or Wajir are exclusively wealthy overlooks the reality that many travelers are professionals, small business owners, students, and even rural residents visiting family.

Impact of Proposed Taxes on Business Travel

Taxing air ticketing services is likely to impact Kenya’s small and medium-sized businesses, which rely on affordable domestic flights to expand their reach and access opportunities.

Many entrepreneurs and workers travel within Kenya to secure contracts, attend conferences, and network, all of which support economic growth and job creation.  If air ticket prices rise due to new taxes, it could limit access for these business travelers, ultimately affecting productivity and the economy.

Given that Kenya aims to position itself as a regional economic hub, affordable travel options are crucial. For many, air travel is no longer a luxury but a cost-effective solution to meet the demands of a rapidly modernizing economy.

Balancing Revenue with Accessibility

While the government has an obligation to explore all avenues for tax revenue, it’s essential that any changes in tax policy consider the broader implications on everyday Kenyans. Air transport, just like other modes of transportation is a public service consumed by mwananchi at a slightly higher price. It is for the same reason we don’t tax matatus or bus fares or even SGR fares.

Air travel may seem an unlikely target, but for a growing number of Kenyans, it’s a part of their livelihoods. Categorizing air travel as a “rich-only” service fails to recognise the real and growing need for accessible, affordable travel options.

The Treasury’s move to offer tax relief on basic household essentials is welcomed and will greatly benefit Kenya’s lower-income households. But as Kenya’s economy evolves, so too should our perspectives on “luxury” versus “necessity.”

Air travel is today increasingly becoming a basic part of the fabric of Kenyan life, with significant benefits to local economies, small businesses, and personal well-being. Thoughtful tax policy should reflect this reality, balancing the need for revenue with the right to affordable travel for all.

As Kenya looks to grow as a competitive and inclusive economy, it’s clear that air travel is more than a service for the wealthy. It’s a bridge across communities, regions, and economic divides, and any tax policy should reflect its role as an enabler of opportunity—not as a privilege of the elite.

Source:Financial Fortune

Solid Growth in Passenger Demand Continued in October

Geneva – The International Air Transport Association (IATA) released data for October 2024 global passenger demand with the following highlights:

  • Total demand, measured in revenue passenger kilometers (RPK), was up 7.1% compared to October 2023. Total capacity, measured in available seat kilometers (ASK), was up 6.1% year-on-year. The October load factor was 83.9% (+0.8ppt compared to October 2023).
  • International demand rose 9.5% compared to October 2023. Capacity was up 8.6% year-on-year and the load factor rose to 83.5% (+0.6ppt compared to October 2023).
  • Domestic demand rose 3.5% compared to October 2023. Capacity was up 2.0% year-on-year and the load factor was 84.5% (+1.2ppt compared to October 2023).

“Continued strong and stable demand is good news, but just as important is the steady improvement in load factors. It shows what a great job the industry is doing in flying people more efficiently.

Average seat factors have risen from around 67% in the 1990’s to over 83% today. Politicians thinking of trying to tax passengers off planes to reduce emissions would do well to note this. Even if fewer people fly because taxes make it too expensive, it doesn’t automatically mean reduced emissions because the planes will still fly, just with fewer passengers. That would reverse decades hard won progress. We need to see the planes full to generate the economic and social benefits of travel with the most minimal emissions possible,” said Willie Walsh, IATA’s Director General.

Air Passenger Market in Detail

October 2024 (% year-on-year)World Share​1RPKASKPLF(%-PT)​2PLF(Level)​3
Total Market100%7.1%6.1%+0.8%83.9%
Africa2.1%9.3%5.2%+2.8%73.8%
Asia Pacific31.7%12.7%9.7%+2.2%84.1%
Europe27.1%7.9%6.5%+1.1%86.2%
Latin America5.5%7.0%7.5%-0.4%84.5%
Middle East9.4%2.5%2.7%-0.1%80.3%
North America24.2%0.3%1.6%-1.1%83.2%

1) % of industry RPKs in 2023    2) Year-on-year change in load factor    3) Load Factor Level

Regional Breakdown – International Passenger Markets

All regions showed growth for international passenger markets in October 2024 compared to October 2023. Europe had the highest load factors, and Africa showed a sharp increase, but the Americas and the Middle East suffered falls.

Asia-Pacific airlines achieved a 17.5% year-on-year increase in demand. Capacity increased 17.2% year-on-year and the load factor was 82.9% (+0.3ppt compared to October 2023).

European carriers had an 8.7% year-on-year increase in demand. Capacity increased 7.3% year-on-year, and the load factor was 85.7% (+1.1ppt compared to October 2023).

Middle Eastern carriers saw a 2.2% year-on-year increase in demand. Capacity increased 2.5% year-on-year and the load factor was 80.2% (-0.2ppt compared to October 2023).

North American carriers saw a 3.2% year-on-year increase in demand. Capacity increased 2.9% year-on-year, and the load factor was 84.2% (+0.3ppt compared to October 2023).

Latin American airlines saw a 10.9% year-on-year increase in demand. Capacity climbed 11.6% year-on-year. The load factor was 85.3% (-0.6ppt compared to October 2023).

African airlines saw a 10.4% year-on-year increase in demand. Capacity was up 5.3% year-on-year. The load factor rose to 73.2% (+3.4ppt compared to October 2023).

Domestic Passenger Markets

The US showed a surprise slight decline, while all other key domestic markets showed stable growth. Fast-growing Chinese domestic demand is being met with increased use of wide-body aircraft.

October 2024 (% year-on-year)World Share​1RPKASKPLF(%-PT)​2PLF(LEVEL)​3
Domestic39.9%3.5%2.0%+1.2%84.5%
Domestic Australia0.8%2.9%-0.5%+2.8%86.2%
Domestic Brazil1.2%9.5%7.8%+1.3%83.7%
Domestic China P.R.11.2%9.7%2.2%+5.9%86.2%
Domestic India1.8%6.1%9.6%-2.7%81.7%
Domestic Japan1.1%3.3%-0.2%+2.9%84.0%
Domestic US15.4%-1.2%0.8%-1.7%82.5%

1) % of industry RPKs in 2023    2) year-on-year change in load factor    3) Load Factor Level 

Note: the six domestic passenger markets for which broken-down data are available account for approximately 31.4% of global total RPKs and 78.8% of total domestic RPKs.

> View the October Air Passenger Market Analysis (pdf)

For more information, please contact:

Corporate Communications
Tel: +41 22 770 2967
Email: corpcomms@iata.org

Notes for Editors:

  • Statistics compiled by IATA Economics using direct airline reporting complemented by estimates, including the use of FlightRadar24 data provided under license.
  • All figures are provisional and represent total reporting at time of publication plus estimates for missing data. Historic figures are subject to revision.
  • Domestic RPKs accounted for about 41.9% of the total market in 2022. The six domestic markets in this report account for 31.3% of global RPKs.
  • Explanation of measurement terms:

– RPK: Revenue Passenger Kilometers measures actual passenger traffic

– ASK: Available Seat Kilometers measures available passenger capacity

– PLF: Passenger Load Factor is % of ASKs used.

  • IATA statistics cover international and domestic scheduled air traffic for IATA member and non-member airlines.
  • Total passenger traffic market shares by region of carriers for 2023 in terms of RPK are: Asia-Pacific 31.7%, Europe 27.1%, North America 24.2%, Middle East 9.4%, Latin America 5.5%, and Africa 2.1%.

Source: IATA

Aviation stakeholders urge MPs to reject proposed tax on air travel services

Stakeholders in Kenya’s aviation sector have opposed the proposed introduction of a 16 per cent Value Added Tax (VAT) on several services within the industry, urging Members of Parliament to reconsider the move.

The proposed VAT would affect a wide range of services, including aircraft services, spare parts, air ticketing, and certain tourism-related activities, raising concerns about its potential negative impact on domestic travel and the broader tourism sector.

Among the services set to be taxed are aircraft with an unladen weight exceeding 2,000kgs but not exceeding 15,000kgs, direction-finding compasses, aircraft appliances, and spare parts imported by aircraft operators.

Additionally, services related to the leasing and chartering of aircraft (excluding helicopters), as well as air ticketing services provided by travel agents, would also face the new tax.

The International Air Transport Association (IATA) has strongly advocated for the retention of the current VAT exemptions, arguing that the proposed changes could undermine the growth of domestic and regional travel.

Significant investment risks

During their presentation before the National Assembly’s Finance Committee on Wednesday, IATA officials noted that the high cost of acquiring aircraft already adds significant investment risks, discouraging potential investors.

“If all aircraft remain exempt from VAT, we can expect an increase in domestic travel volumes, which will lead to higher collections from air passenger service charges. Additionally, VAT earnings from hotels, meals, and accommodation services will see a sustainable increase, benefitting the Kenya Revenue Authority (KRA),” IATA representatives stated.

Similarly, the Kenya Association of Travel Agents (KATA) voiced its opposition, stressing that the VAT proposal could disrupt the entire tourism value chain.

KATA warned that increasing the cost of both domestic and international travel would reduce the affordability of trips for tourists, diminishing Kenya’s competitiveness in the regional market.

“This will significantly raise operating costs for the air travel sector and, by extension, the cost of travel within Kenya and abroad,” KATA representatives said.

The association also pointed out that many businesses in the tourism industry rely heavily on air travel services, which are often facilitated by local travel agencies. These agencies play a crucial role in the broader tourism ecosystem, supporting various stakeholders in the industry.

In addition, KATA highlighted that Kenya is already facing stiff competition from other safari destinations like South Africa, Zimbabwe, Botswana, and Tanzania, which have adopted more favourable tax and fee structures for intra-Africa travel.

Both IATA and KATA have urged MPs to reconsider the proposed VAT imposition, arguing that it would undermine the Kenyan tourism sector’s growth and the aviation industry’s ability to thrive.

They further noted that many other African countries have created legislative frameworks designed to reduce travel and tourism costs, thus promoting a competitive advantage in the region.

Source: Eastleigh voice   

Strengthening Aviation in Kenya and Africa Unlocking Africa’s Aviation Potential

Aviation is crucial for global connectivity, economic growth, and regional integration. Yet, Africa, accounting for just 3% of global air traffic, remains underrepresented. Kenya, however, is positioned to lead the transformation of the continent’s aviation sector. Now is the time to act.

Why Africa Needs Aviation More Than Other Continents

Geographic & Infrastructure Challenges: Africa’s vast size & underdeveloped road and rail systems make aviation essential. Unlike continents like Europe or North America, many African regions lack reliable transport options. Aviation bridges these gaps

Economic Integration and Growth: The AfCFTA aims to increase intra-African trade, and better air connectivity is key to realizing this potential. Aviation can enhance movement of goods and people, boosting regional economies. The Yamoussoukro Decision on liberalized air services remains underutilized, limiting opportunities for growth.

Tourism and Job Creation: Africa is home to 8 of the world’s 25 biodiversity hotspots. With aviation, Africa’s tourism industry—already significant in countries like Kenya—can grow further, creating jobs and diversifying economies. Kenya’s tourism contributes $2.2 billion to GDP, and better air connectivity could increase this number.

Overcoming Infrastructure Gaps: Africa’s inadequate land-based infrastructure makes air travel the most efficient way to connect remote regions. Aviation can ensure access to essential services, stimulating economic and social development.

Current Challenges

High operational costs, fragmented markets, and limited regional connectivity.
Lack of investment in both major airports and smaller regional airfields.
Restrictive air agreements that limit competition and service expansion.
Strategic Actions for Growth

Policy and Regulatory Reforms: Embrace initiatives like the SAATM to open airspace and improve trade. Kenya, a regional leader, can foster growth by aligning with ICAO standards and attracting private investment into the sector.

Infrastructure Investments: Modernizing key airports such as Jomo Kenyatta International Airport (JKIA) and smaller regional airfields will improve connectivity, enhance trade, and support passenger growth.

Cost Reduction Initiatives: African airlines should collaborate through alliances or joint ventures to leverage economies of scale and reduce operational costs, making air travel more competitive.

Sustainability: Align with global sustainability standards like ICAO’s CORSIA to mitigate aviation’s environmental impact while supporting growth.

Call to Action
Africa’s aviation sector is primed for transformation. By adopting strategic policies, investing in infrastructure, and fostering regional collaboration, we can position Africa as a leading player in global aviation. The time to act is now.

Stanbic Bank And Mastercard Introduce Elite Cards With Premium Travel, Lifestyle And Insurance Benefits

  • Two new cards: The Stanbic World Elite Card and Stanbic World Card
  • Cards to give clients access to 1200 global airport lounges in over 135 countries 
  • World Elite cardholders to enjoy up to 30% discount in over 800 participating golf clubs worldwide including Kenya.
  • This is the first World Elite Mastercard in East Africa

Stanbic Bank Kenya and Mastercard have partnered to introduce two new world class credit cards to the Bank’s affluent clients across the region.  

Categorized into the Stanbic World card and Stanbic World Elite card, the cards are designed to offer an elevated experience for affluent clients, with special benefits such as airport lounge access, global customer assistance services, concierge services, premium memberships and wide range discounts. 

The cards tie into the Bank’s affluent banking proposition which aims to deliver innovative, exclusive and customer-centred banking solutions and services. Positioned under Stanbic’s Personal and Private Banking division, the affluent proposition exposes clients to exclusive and personalized solutions that will unlock a new realm of luxurious experiences for Stanbic’s esteemed clientele. 

Speaking at the media engagement event, Abraham Ongenge, Head of Personal & Private Banking at Stanbic Bank Kenya said,“We pride ourselves in being a Bank that connects clients with a suite of premium benefits, rewards and exclusive solutions. We believe that our clients deserve access to premium, secure and seamless services, which is why we continue to design and introduce solutions that make it easier for them to transact, live and work. In a fast-moving world, access to the right platforms, solutions and services can be a gamechanger. These cards will not only give our clients access to premium benefits but will also position them to gain from exclusive experiences and solutions. Further, with time and cost savings inbuilt into the card experience, clients can focus on their work, travel or leisure experiences fully and without disruptions.’’

Shehryar Ali, Senior Vice President & Country Manager for East Africa and Indian Ocean Islands at Mastercard added, “At Mastercard, we are committed to developing cutting-edge financial solutions that align with our clients’ aspirations and suit their lifestyles. Our collaboration with Stanbic Bank aims to deliver exceptional banking experiences to the cardholders blending comfort and luxury seamlessly. The Mastercard World Elite Metal credit card will provide access to premier services and exclusive benefits, immersing clients in unparalleled luxury and elegance.” 

The launch of these cards represents a strategic collaboration between Stanbic Bank and Mastercard to deliver premium services and value to high-net-worth individuals (HNWIs). Designed with security and convenience in mind, this card includes the latest contactless payment technology and fraud protection services. 

Cardholders will enjoy access to a suite of exclusive benefits, tailored privileges, and unique experiences: 

  • Stanbic World Card
    This premium card offers access to global experiences, including VIP airport lounges, luxury car rental services and exclusive rewards programs. Other benefits also include complimentary travel insurance, priority hotel bookings, and discounts at retail outlets from Carrefour, Glovo and Jumia. 
  • Stanbic World Elite Card
    This is the first metallic credit card in East Africa launched in collaboration with Mastercard. With this prestigious card, affluent clients will enjoy enhanced spending limits and a host of lifestyle privileges. From access to premium events and experiences to exclusive dining offers and curated travel itineraries, visa assistance services, shipping discounts and offers, this card provides rewards for the discerning customer. Cardholders will also benefit from 24/7 dedicated support and the highest level of financial flexibility. 

 Exclusive benefits cardholders get to enjoy:

  • Under the Mastercard Golf Program, World Elite cardholders enjoy an end-to-end online golf booking solution and up to 30% discount in over 800 participating golf clubs worldwide including Kenya  
  • Cardholders will enjoy access to Unicaf scholarships for eligible candidates to pursue academic studies with its associate universities. The cardholders can access up to 75% scholarship off program’s tuition fees. 

Other benefits Include:

  • Access to airport lounges globally via Mastercard Travel Pass 
  • Exclusive dining and travel privileges and offers 
  • Car Rental and Chauffeur Services/ discounts 
  • Enhanced rewards and loyalty programs 
  • 24/7 dedicated concierge services 
  • Comprehensive travel insurance 
  • Mastercard Global Emergency Services 
  • Fraud protection with the latest digital payment technology 

At the core of Stanbic Bank’s affluent banking proposition are four key pillars that define its commitment to helping clients achieve both financial and personal fulfilment: 

  1. Bank Easily: Stanbic Bank is committed to providing its affluent clients with seamless, accessible banking services. Through a combination of cutting-edge digital platforms and dedicated relationship managers, clients can manage their finances with ease and convenience, no matter where they are. 
  2. Invest Skilfully: Helping clients secure and grow their wealth is a priority for Stanbic. With expert investment advice tailored to individual financial objectives, the bank ensures that clients can make informed decisions that maximize returns while managing risk effectively. 
  3. Plan Wisely: Stanbic Bank’s comprehensive financial planning services empower clients to build a secure future. From estate planning to retirement preparation, Stanbic helps clients create strategies that safeguard their wealth for generations to come. 
  4. Live Joyfully: Banking with Stanbic goes beyond finances—it is about enhancing clients’ quality of life. From exclusive lifestyle privileges to premium travel experiences and curated events, Stanbic Bank aims to provide a richer, more rewarding experience for its clients. 

Similarly,Stanbic Bank, has also been awarded the prestigious title of No. 1 Private Bank in Kenya by Global Finance, a recognition that reflects the bank’s unwavering commitment to delivering superior banking experiences for its affluent clients. This award further cements Stanbic Bank’s position as the market leader in providing personalized financial solutions that cater to the diverse needs of high-net-worth individuals across the region. 

Kenya Association of Air Operators Calls for Review of JKIA Privately Initiated Proposal (PIP) Concession Process.

The Board of the Kenya Association of Air Operators (KAAO) has officially called for a comprehensive review of the Privately Initiated Proposal (PIP) Concession process for Jomo Kenyatta International Airport (JKIA). This decision follows an extensive internal review process, driven by the views and concerns of its members, and was made public following the Board’s meeting on October 4, 2024.

Concerns Raised Over JKIA Concession Process

The KAAO Board expressed its strong reservations regarding the current approach to the JKIA concession, specifically objecting to the one-bidder process proposed for the management and operation of one of Kenya’s most strategic assets. The association argued that this approach jeopardizes the transparency and competitive nature expected from a Public-Private Partnership (PPP) of such magnitude.

In a statement, KAAO noted that its members unanimously agreed that JKIA’s concession, as presently conceived, was not in the best interest of the country. Concerns were raised over the credibility of the potential private partner involved, urging for a competitive and transparent bidding process. The Association emphasized the importance of following the steps outlined in Kenya’s PPP Act to ensure fairness and maximize the benefits for all stakeholders involved.

Advocating for a Competitive and Transparent Process

The KAAO Board firmly believes that a one-bidder process for a critical infrastructure asset like JKIA does not align with Kenya’s long-term interests. They recommended that the bidding process for the concession be opened up to multiple parties, ensuring that it is competitive and transparent. By adhering to the principles outlined in the National Aviation Policy and following a master plan for JKIA’s development, the concession could lead to meaningful upgrades to Kenya’s primary aviation hub.

The Association also stressed the need for a clear vision of JKIA’s future, driven by comprehensive stakeholder involvement. This includes a thorough feasibility study, a requirement that KAAO insists should be undertaken before proceeding with any concession. The members highlighted that such a study would offer critical insights into the needs of operators, users, and the public, ensuring that the eventual concession plan provides the best value for Kenya.

Reiterating the Need for Stakeholder Involvement and Infrastructure Development

A central demand from KAAO’s members is the prioritization of stakeholder engagement in the concession process. The association is calling for a collaborative effort that involves all parties from the outset to create a shared vision for JKIA’s future. KAAO emphasized that critical infrastructure projects, such as the development of a second runway and terminal expansions, must be included in any concession plans to ensure that JKIA can maintain its position as a leading aviation hub in the region.

In recent years, JKIA has faced increasing competition from other regional airports, and KAAO believes that its full potential can only be realized with a carefully planned development strategy. The proposed concession process, if executed correctly, could pave the way for these much-needed infrastructure upgrades, boosting JKIA’s capacity and efficiency in handling growing passenger and cargo traffic.

A Call for a Return to the Drawing Board

The KAAO Board ultimately recommended a return to the drawing board for the JKIA concession process, with a renewed focus on collaboration, transparency, and competitive practices. They emphasized that the end goal should be the development of JKIA as a dynamic, world-class aviation hub, serving not only Kenya but the entire region.

The Association’s stance reflects the deep-seated concerns among Kenyan air operators about the future of JKIA. With its strategic importance to the country’s aviation sector, any plans for its concession must be carefully scrutinized to ensure that Kenya’s long-term goals and the interests of all stakeholders are fully considered.

Source: Air Space Africa

World Travel Awards 2024: Celebrating Excellence and Looking Forward to the Africa Gala Ceremony

The 2024 program of the World Travel Awards (WTA) has already showcased an exciting year for the global travel and tourism industry. With a series of prestigious events held across different regions, the WTA continues to honour the best in the business, from airlines and hotels to destinations and tour operators. As the year progresses, anticipation builds for one of the most highly awaited ceremonies—the Africa Gala Ceremony, scheduled for October at the Diamonds Leisure Beach & Golf Resort in Diani Beach, Kenya.

This upcoming gala is set to showcase the finest achievements in Africa’s tourism sector, further solidifying the continent’s place on the world travel map.

Progress in 2024: A Year of Milestones

The year kicked off with great momentum for the World Travel Awards, as various regional ceremonies took place in key global destinations. Each event brought the industry’s top players together, spotlighting their achievements, innovation, and resilience in a time of gradual recovery from the global pandemic and other economic challenges.

• Middle East Gala Ceremony: Held in Dubai, this event highlighted the region’s luxury offerings and booming tourism development, particularly in hospitality and airlines.

• European Gala Ceremony: Europe, one of the most competitive travel markets, saw a celebration of its world-renowned cultural and historical attractions. Destinations like France, Italy, and Spain took top honours for their hospitality excellence and sustainable tourism initiatives.

• Asia & Oceania Gala Ceremony: This region’s ceremony underscored the growing influence of Asia and Oceania in global tourism, with emerging markets and innovation in travel technology taking centre stage.

As these events unfolded, the travel industry continued to recover, with greater emphasis on sustainability, immersive travel experiences, and cultural authenticity

Anticipating the Africa Gala Ceremony in Kenya

Now, all attention turns toward the Africa Gala Ceremony, which will be held on October 18, 2024, at the stunning Diamonds Leisure Beach & Golf Resort in Diani Beach, Kenya. Diani Beach, located along Kenya’s southern coastline, is a haven for sun-seekers, nature lovers, and adventure enthusiasts alike. This location—known for its pristine beaches, coral reefs, and tropical ambiance—sets the stage for a memorable event that celebrates the very best of African travel and tourism.

Diamonds Leisure Beach & Golf Resort: The Perfect Host

Set along Diani’s world-famous white sands and turquoise waters, the Diamonds Leisure Beach & Golf Resort is an exquisite choice for the Africa Gala Ceremony. The luxury resort, known for its eco-friendly design and exceptional service, boasts a golf course, lush gardens, and an array of leisure activities that reflect the serene charm of Kenya’s coast. This makes it an ideal setting for recognizing the continent’s finest tourism brands and experiences.

The resort will host top industry leaders, VIP guests, and media from across Africa and beyond, offering a perfect blend of business and pleasure, where networking and celebration will take place against a backdrop of tropical splendour.

What to Expect at the Ceremony

The Africa Gala Ceremony promises to be an unforgettable evening, with over 100 categories of awards that recognize the excellence of tourism businesses across the continent. These awards will cover everything from Africa’s Leading Airline to Africa’s Leading Hotel, Leading Tourist Attraction, and Leading Safari Destination.

Some highlights we can expect:

1. Honouring Industry Leaders: The event will recognize leading travel companies, airlines, hotels, and tour operators who have demonstrated innovation, resilience, and dedication to delivering exceptional travel experiences. There will be special focus on African tourism brands that have not only recovered but thrived in the post-pandemic era.

2. Focus on Sustainability: Many of the nominees this year have placed sustainability at the forefront of their operations. From eco-friendly lodges in Kenya’s Maasai Mara to sustainable tourism practices in South Africa’s winelands, the awards will highlight initiatives that protect the environment and support local communities.

3. Spotlight on Africa’s Hidden Gems: While popular destinations like Cape Town, Marrakech, and Zanzibar are always in the limelight, this year’s awards will also bring attention to lesser-known African travel spots that offer unique experiences. Expect nominations from up-and-coming destinations like São Tomé and Príncipe, Malawi, and Rwanda.

4. Exclusive Performances and Cultural Showcases: The gala will feature Kenyan cultural performances, blending traditional African music and dance with modern entertainment. This will give international guests a glimpse into the rich cultural heritage of Kenya and the wider region.

Why the Africa Gala Ceremony Matters

The Africa Gala Ceremony is more than just an award night; it is a celebration of Africa’s tourism resurgence. In recent years, Africa has emerged as one of the fastest-growing travel destinations globally, driven by its natural wonders, wildlife safaris, and rich cultural diversity. From luxury resorts in Mauritius to wildlife adventures in Botswana, Africa’s tourism landscape is more diverse than ever.

This year’s ceremony is expected to build on the growing trend of sustainable and immersive travel. As more travellers seek eco-conscious and community-driven experiences, African destinations have risen to the challenge by offering authentic and responsible tourism options. The event will amplify these efforts, bringing attention to Africa’s capacity to provide world-class travel while maintaining cultural integrity and environmental stewardship.

The 2024 Africa Gala Ceremony at Diamonds Leisure Beach & Golf Resort in Diani Beach, Kenya, will be a defining moment for Africa’s travel and tourism industry. As the World Travel Awards continues to recognize and reward excellence across the globe, this ceremony will honour the African sector’s brightest stars. Whether it’s a luxurious beach resort, an airline excelling in customer service, or a safari lodge promoting conservation, the event will spotlight the best of what Africa has to offer.

With its breathtaking setting and a lineup of deserving nominees, the Africa Gala Ceremony promises to be a night of celebration, collaboration, and inspiration for the future of African tourism.

Source:  Breaking Travel News  

African Airlines’ Passenger Revenue Jump by 8% in Q1 2024 – AFRAA

The world airline industry has maintained its trajectory of recovery during the first quarter of 2024 with a rebound in passenger demand, according to African Airlines Association (AFRAA).

African airlines carried more international traffic during the first quarter of 2024, around 33% of the total traffic. This is a seasonal effect due to the Easter Holiday usually rise during Q1, particularly in March.

The Intra-African traffic represented 30% whereas domestic traffic was 37% during this quarter.

Passenger Revenue in the first quarter 2024 increased by 8% as compared to passenger Revenue in the first quarter 2023.

International traffic is dominated by the intra-African, with 44% in Q1 2024. Outside the continent, Europe is the first destination region of African airlines.

South Africa is the dominant market in terms of domestic traffic in Africa; it recorded 5 routes amongst top 10 in this first quarter 2024. Egypt, Kenya, and Nigeria also have domestic routes among the ten busiest.

The non-domestic traffic is dominating for intra-African traffic especially between Kenya, Tanzania, Ethiopia, Uganda, representing 40% of the continental traffic.

The ten busiest Intra-African routes are generally within Southern and Northern Africa. Only one Eastern (Nairobi – Entebbe) and Western African route (Accra – Lagos) appeared in the top 10 during the first quarter 2024.

Addis Ababa airport handled around 192 thousand tons of cargo during Q1 2024. Johannesburg and Nairobi followed with 121 thousand and 112 thousand tons, respectively. Two West and East African airports are part of the top 10: Lagos ,Dakar, Nairobi and Entebbe.

During the first quarter of 2024, among the 54 countries in the African continent, 7 Countries have direct flights to more than 20 African countries, an increase compared to the first quarter 2023 where 4 countries had direct flights toward other countries. Ethiopia is leading with direct services to other countries within Africa.

African Airlines Association (AFRAA) estimates that passenger traffic carried by African operators in 2024 will be about 98 million.

The African Airlines Association is a trade association of African airlines, and is headquartered in Nairobi, Kenya. The primary purpose of AFRAA is to establish and facilitate co-operation between African airlines.

50 airlines comprising of all the major intercontinental African operators and the Association’s members represent over 85% of total international traffic carried by all African airlines.

Source: Kenyan Wallstreet.

NDC offers confuse clients, frustrate agents

A recent Travel News poll showed that 5% of agents book NDC via airline direct websites, 10% utilise a third-party platform (eg Thomalex), 15% book NDC via the GDS interface and 10% book a combination of all these options. 

But an alarming 60% of agents said they are not using NDC at all.

According to its 2024 Modern Retailing Report, Travelport research shows that NDC and website-direct offers are at odds with the consumer experience and that 58% of users are struggling to compare new products and additional offers available through NDC.

In 2022, Iata said of Modern Airline Retailing: “Our aim is to create value for travellers by meeting their needs. We know that passengers want a seamless digital experience.”

The NDC-powered displays of fares on many airlines’ websites mean that a vast number of fares are displayed. The fares represent the unbundling of standard fares and the rebundling of their elements into a variety of different offers. It’s somewhat bewildering and confusing for consumers, who could end up paying more for their fare than they bargained for.

A leisure client interviewed by Travel News said he received a quote from his travel agent to fly to Lisbon. “We were out with friends and they said I should book direct online as the airline website is always cheaper than agents offer. I went on to the website of the airline that my agent had quoted me on to have a look and the fares were indeed cheaper than she had quoted us.

“I put the same dates and flight details in on the same airline, got the cheaper rate and paid for the tickets, having compared apples with apples. The terms and conditions and different booking options were confusing at best.

“I have subsequently discovered that I booked the cheapest flights without baggage, and I cannot change my dates or get any refund on the tickets. Baggage is purchasable as an addition to the airfare and there were about seven different options and related prices for various fares that affect changes and refunds.

“Airline website offerings are a nightmare. There is so much more content to wade through; they have become more trouble than they are worth.”

Travelport CEO, Greg Webb, spoke to Travel News about solutions the GDS is developing to address the complexities of booking NDC.

 “Travelport’s role in the increasingly complex travel industry is to take millions of pieces of disparate information and make it simple for both travel agencies and providers to understand, search, sell and service. We believe AI and machine learning are powerful tools to do just that. The Travelport Content Curation Layer product will allow travel agencies to provide travellers with the right range of normalised, enriched, bookable content at speed, via a single search screen. Used for all content sources (LCC, EDIFACT, NDC, hotel, car, etc). The CCL allows agents to compare apples to oranges in an apples-to-apples way.

“Our travel agency partners know their travellers well, and Content Optimizer gives agencies the ability to set their own rules and customise the type of results that are prioritised.”

The Travelport report explains that because NDC content is implemented differently by every airline, the reality is the buyer is often forced to deal with NDC, whether they know it or not. 

To travellers, NDC looks like an overwhelming set of content on every airline’s website, along with different rules for changes on every offer, along with system incompatibilities, such as the offering of long-haul flights from South Africa to Europe, the US or Asia without the inclusion of baggage. It’s hard to believe this feels like a satisfactory modern retailing experience for the consumer. 

The same can be said for the travel agent’s experience when working with NDC. They often see duplicated content on the screen, or must open multiple tabs to compare like-for-like products. 

Added Webb: “For agencies and travellers alike, the explosion of choice is causing on-screen clutter, slower searches, and confusion.”

Travelport’s new Content Curation Layer and Content Optimizer was designed to unlock smarter searches in one place with clearer and more standardised results from all sources, said Webb.

 Source: Travel News

How Corporate Travel Managers Can Meet the Challenges of Continuous Disruption

Digital transformation has forced a litany of changes on both the buyer and seller sides of the travel industry. As Web 2.0 and cloud computing emerged, virtually all industries began to digitize, and corporate travel management was not immune. Then a global health crisis leveled its own brand of disturbance.

At the same time, travelers heightened expectations for customer service, and personalized experiences were going through their own step change.

Now travel distribution models themselves are shifting. Caught in the middle, travel managers have found themselves in an ecosystem of continuous disruption, the latest being new distribution capability (NDC) driven by airlines. How are corporate travel managers navigating the current wave of change and how can they best adapt and remain relevant, while keeping their travelers moving?

Are we using NDC?

In the past year or so since the airlines began to shift their distribution strategies via NDC in earnest, players at every link of the value chain have been adopting, piloting, adapting and connecting. The U.S. Travel Association has reported that 24% have experienced challenges with the rollout; and half of North American travel buyers (55%) say their programs have not even started to implement NDC. Just as hotels did a few years ago with dynamic rates, airlines are on a journey to take control of their content strategies to maximize their product merchandising and minimize distribution costs. Major players like American Airlines are shaking up the game, targeting business travelers directly, offering the best rates and tailored offers on their brand websites. And corporate travelers are responding, motivating travel management companies (TMC) to change their operational practices. The disruptions are not only a procedural headache but also require serious adaptations in servicing and technology.

APIs for direct connections

For brand carriers, the travel industry is all about creating and nurturing connections. This innovative new distribution technology connects airline brands directly with corporate travelers. It is basically an API (application programming interface) connection, many of which are already widely employed for online travel agencies and metasearch distribution and booking in the hospitality industries. However, when business travelers book rooms, cars and flights directly with suppliers, corporate travel managers encounter problems that go well beyond mere frustration.

Governance issues

Naturally, business travelers don’t care about acronyms, nor whether they get an NDC airfare, global distribution system (GDS) fare, OTA or direct rate. However, travel managers need their travelers to draw within the lines because if the company can no longer track purchases or authorize bookings, they lose visibility and control over supplier spend. If managers only get purchasing information once they have been submitted as expenses, they lose all ability to direct spend to preferred suppliers or optimize travel budget.

The whole process of off-channel bookings is fraught with problems of governance as managers need to know that employees are staying in the right hotels and importantly staying within the spending boundaries. Managers need to bring travelers back into the managed travel program for completeness of the approvals process, visibility, the payment of the trip, traveler tracking and enforcing policy controls.

Disruption management

In business travel, at least a third or more of all trips change. Travelers who make direct bookings for all or part of their trips still expect their company to be able to help with disruption or credit management. Travelers just want good fares within their budget and to maximize loyalty points; oblivious to the logistical complexity that comes with trying to get service or support from their TMC if they have no visibility over the booking.

The challenges in transitioning from legacy GDSs and EDIFACT to a fragmented technology ecosystem that connects to NDC is causing a disruption management problem for corporate travel departments. For now, at least, that generally spells operational friction for everybody involved.

Frictions and emissions

Travel managers must regain the ability to service and support travelers from door to door. And they must do so while simultaneously matching the frictionless, personalized customer experiences that hotels and airline brands are striving to provide. In today’s atmosphere of sharp regulatory scrutiny, compliance leaders must mitigate any corporate travel risks. Especially in large enterprises, business travel is a significant part of Scope 3 carbon footprints. GBTA’s Business Travel Industry Outlook Poll reported that 49% of travel buyers say they are either the lead decision maker or one of the decision makers when it comes to travel risk management. Travel managers must ensure that employees are making smart and sustainable travel choices.

The connected journey

To solve their pain points in 2024, travel managers need technology platforms that unify the entire travel experience in a single source of truth, no matter the content source. The right travel technology pulls together all travel channels in alignment with corporate policies. A unified platform keeps managers in the loop, ensuring they can keep their travelers safe and help in the event of changes, problems or emergencies. But the technology must preserve the all-important customer experience, giving them ease, choice and flexibility, so employees have no need to book any parts of their journeys outside the lines.

Moreover, AI tools now can automate and elevate the connected journey by efficiently offering personalized booking options for the traveler serving up a handful (instead of hundreds) of options that align with the traveler’s personal preferences, company policy and travel patterns. And travel managers get to see the entire picture, both at the individual traveler’s level and at the corporate level.

Technology has proven that it sometimes causes problems and sometimes solves them for corporate travel managers. Historically, about 30-50% of all hotel accommodations have gone outside of the travel program, direct to suppliers or OTAs, aka leakage.

Corporate travel managers have had to tolerate leakage, and they’ve really struggled to do anything about it because they haven’t been able to offer the choice and convenience travelers can get through other channels. Now with the advancement of platforms that can seamlessly integrate all of these diverse booking offerings, managers have the capability to make their jobs easier while keeping their travelers coloring within the lines.

Source: PhocusWire.