Industry Makes Progress to Reduce Baggage Mishandling, New Survey Reveals

Reykjavík – The International Air Transport Association (IATA) today released a global progress report on the implementation of baggage tracking. Focused on IATA Resolution 753, which requires tracking baggage at acceptance, loading, transfer and arrival, the survey of 155 airlines and 94 airports reveals that:

44% of airlines have fully implemented Resolution 753 and a further 41% are in progress.

Regional variation in airline full adoption rates vary from 88% in China and North Asia, to 60% in the Americas, 40% in Europe and Asia-Pacific, and 27% in Africa.

75% of airports surveyed have the capability for Resolution 753 baggage tracking.

Airport preparedness for Resolution 753 varies by size*: 75% of mega airports are capable, 85% of major airports, 82% of large airports and 61% of medium airports.

Optical barcode scanning is the dominant tracking technology implemented by the majority of airports (73%) surveyed. Tracking using RFID, which is more efficient, is implemented in 27% of surveyed airports. Notably, RFID technology has seen higher adoption rates at mega airports, with 54% already implementing this advanced tracking system.

“Between 2007 and 2022 baggage mishandling reduced by nearly 60%. That is good news. But travelers expect better; and the industry is determined to make further improvements. Tracking bags at acceptance, loading, transfer and delivery will give the industry the data it needs to improve. Tracking reduces overall mishandlings and helps airlines reunite mishandled bags with their owners even faster. With 44% of airlines already fully implementing Resolution 753 tracking and a further 41% in progress, travelers can have even more confidence that their bags will be at the carousel on arrival,” said Monika Mejstrikova, IATA Director Ground Operations.

In 2022, the global rate of mishandled bags was 7.6 per 1,000 passengers, according to SITA. The majority of these were returned within 48 hours.

Accelerating Modern Baggage Messaging

Resolution 753 requires airlines to exchange baggage tracking messages with interline partners and their agents. The current baggage messaging infrastructure depends on legacy technologies using costly Type B messaging. This high cost adversely affects the implementation of Resolution 753 and contributes to issues with message quality, leading to an increase in baggage mishandling.

IATA is leading the industry’s transition from Type B to modern baggage messaging based on XML standards. The first pilot to test modern baggage messaging between airport and airlines is planned for launch in 2024.

“Adopting modern messaging is the equivalent of implementing a new standard, intelligible language for use by airlines, airports, and ground handling staff so they can effectively communicate about passenger luggage. In addition to helping reduce the number of mishandled bags implementation also sets the stage for ongoing innovations in baggage management systems,” said Mejstrikova.

Background

IATA resolution 753 was adopted by June in 2018. In 2024, IATA launched a campaign to assist airlines with the implementation. The campaign focuses on collecting data on the implementation status of airlines and providing support to member airlines to develop and execute their implementation plans. This initiative underscores IATA’s commitment to enhancing operational efficiencies and standards across the industry.

*Airport size classification:

Medium: 5-15 million

Large: 15–25 million

Major: 25–40 million

Mega: >40 million

Source:  Tourism News Africa.  

DET to bring together Dubai’s tourism ecosystem at Arabian Travel Market 2024

Dubai [UAE], May 1(ANI/WAM): Dubai Department of Economy and Tourism (DET) will showcase the emirate’s innovative and diverse destination offering by bringing together 129 key partners and stakeholders to demonstrate the city’s collaborative spirit at the 31st edition of the Arabian Travel Market (ATM), taking place from 6-9 May 2024 at the Dubai World Trade Centre.

With this year’s ATM taking place under the forward-looking theme of ‘Empowering Innovation Transforming Travel Through Entrepreneurship’, DET will highlight how Dubai’s tourism industry has cultivated innovation, entrepreneurship and sustainability to create new pathways for growth beyond traditional tourism.

This strategic approach is inspired by the ambitious goals of the Dubai Economic Agenda D33 to further consolidate Dubai’s position as one of the top three global cities for business and leisure, and the best city to visit, live and work in.

At the event, DET will be joined on the Dubai stand by partners and representatives from government entities, hotels, destination management companies and tour operators. Key partners include the General Directorate of Residency and Foreigners Affairs (GDRFA-Dubai), Dubai Culture, Dubai Holding, Dubai Health Authority, and more.

Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing (DCTCM), said: “As a longstanding destination partner of the Arabian Travel Market, Dubai is privileged to host the 31st edition of one of global tourism’s most anticipated events.

The industry gathering is a testament to our city’s position as a world-leading travel destination, achieved under the visionary leadership of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, through innovative strategies and robust public-private partnerships.

In keeping with the transformative theme of this year’s show, Dubai Department of Economy and Tourism and our partners will highlight the pivotal role that entrepreneurship and innovation have played in driving tourism growth, aligned seamlessly with our D33 Agenda, the city’s 10-year roadmap for economic development.

“As we showcase the diverse and compelling destination proposition of Dubai at ATM, we eagerly anticipate the opportunity to engage with top industry experts and executives to share our blueprint for success, as well as explore the emerging themes and trends that will contribute towards industry sustainability.

We remain committed to navigating the future of tourism with foresight and collaboration with our stakeholders and the international travel community, ensuring Dubai remains a beacon of innovation and excellence in the global tourism landscape.”

Dubai welcomed a record 17.15 million international overnight visitors in 2023 a 19.4 per cent YoY growth over the 14.36 million tourist arrivals in 2022 and continues to build on this momentum, with 3.67 million international tourists having already visited the city in January and February this year.

The stellar performance further validates Dubai’s recognition as the No.1 global destination for an unprecedented third successive year in the Tripadvisor Travellers’ Choice Awards, the first city to achieve this.

The milestone is also a testament to the emirate’s vibrant and diverse offerings, supported by world-class infrastructure, exceptional service at all touchpoints, and continuous collaboration between the government and private sectors. Dubai is expanding its range of experiences for visitors, captivating them with its unparalleled blend of modernity and culture including heritage sites and immersive attractions that highlight the city’s history and vibrant culture.

Committed to investing in human capital and developing a skilled workforce to support the growth of the city’s tourism and hospitality sectors, the Dubai College of Tourism, part of DET, will use ATM as an opportunity to drive awareness of its full-time programmes and ‘Dubai Way’, an innovative training and engagement platform for government and private sector staff engaged in tourist-facing roles.

Dubai also recognises the importance of prioritising sustainability initiatives to preserve its natural resources and further improve the overall visitor experience. With the UAE’s Year of Sustainability extending into 2024, DET will release the inaugural ‘Dubai Sustainability Report’ during ATM, and highlight the city’s ongoing initiatives such as the Dubai Sustainable Tourism Stamp, and the citywide Dubai Can movement, which has contributed to the reduction of over 18 million 500ml single-use plastic water bottles in just two years since the launch of its ‘Refill for Life’ campaign.

A new Dubai Can initiative, Dubai Reef, was inaugurated in April with the launch of pilot reef modules for the world’s largest marine reef development project. Dubai’s position as the cruise hub of the region will also be showcased following the recent formalisation of the Cruise Arabia alliance – a strategic regional partnership that promotes the Arabian Gulf as a cruise ship destination globally.

This year, DET will again organise the ATM Hosted Buyers Programme across Expo City Dubai, Real Madrid World, and Dubai Creek Harbour, promoting Dubai’s unparalleled hospitality and offerings to 600 buyers from 46 different markets and countries.

Among the attractions for visitors at the Dubai stand will be ‘Dubai Pinball’, an interactive and engaging gaming experience promoting Dubai’s iconic landmarks, where players can win prizes and contests to get their names on the leaderboard.

DET will also put the spotlight on the city’s diverse gastronomy scene and its year-round calendar of events, including the ongoing Dubai Food Festival held alongside ATM, which will continue until 12 May, as well as the family summer extravaganza, Dubai Summer Surprises, which is set to launch in June. (ANI/WAM)

Source:The Print

Africa’s Travel Indaba cements its Pan-African status.

With a fully sold-out floor space, Africa’s Travel Indaba has reached a ground-breaking achievement as it will see an unprecedented participation of 26 African countries exhibiting this year. This is testament to the pivotal role the trade show plays in advancing the continent’s growth.

This year’s Africa’s Travel Indaba will take place from the 14th to the 16th of May 2024 and will be preceded by Business Opportunity Networking Day (BONday) on the 13th of May. This is an important gathering of the global tourism sector and other related industry stakeholders.

The 26 countries exhibiting this year include Angola, Botswana, Burkina Faso, Cote d’Ivoire, Democratic Republic of Congo, Eritrea, Eswatini, Ethiopia, Ghana, Guinea, Kenya, Lesotho, Madagascar, Malawi, Mauritania, Mauritius, Mozambique, Namibia, Rwanda, Senegal, South Africa, Tanzania, Togo, Uganda, Zanzibar, and Zimbabwe. These countries represent a total of 344 products that will be showcased, an increase of 14 % compared to last year’s 301 products.

Burkina Faso, Eritrea, and Guinea are the three new entrants.

Overall, a total of 55 countries are participating in this year’s event including all newcomers.

In total, this year’s event will see more than 1 030 exhibitors showcasing their products and tourism offerings and more than 890 buyers attending the event from all over the world.

The buyers include inbound tour operators, foreign travel agents, destination marketing companies, online booking agents and airlines.

As usual, the Department of Tourism will be funding the participation of 120 South African small to medium enterprises to exhibit their tourism offerings at this year’s Africa Travel indaba and gain exposure to wide ranging network of tourism trade industry players from all over Africa and the world.

“Africa’s Travel Indaba’s ongoing mission and commitment to driving the continent’s economic development and fostering collaboration and growth is clear. I am particularly pleased to welcome the new countries that are joining us exhibiting at the trade show for the first time. We look forward to a long and mutually beneficial partnership,” says South Africa’s Minister of Tourism, Patricia de Lille.

The increase in the number of countries can be attributed to several key factors including the fact that in the past few years, tourism has also emerged as a cornerstone of sustainable development strategies across the continent.

“Africa’s Travel Indaba provides a platform for African tourism product owners to meet with global buyers. With a record number of participating countries this year, buyers will have a wide variety of products and experiences to engage with. I am confident that Africa’s Travel Indaba will continue to be a fertile environment for closing business deals that nurture partnership and drive growth,” adds Minister de Lille.

The number of countries opting to exhibit at Africa’s Travel Indaba also reflects a collective commitment to showcasing the diverse and unique tourism offerings that each country has to offer. By coming together on a unified platform, these African nations amplify their voices and strengthen their position in the global tourism market, thereby driving demand for African tourism products and experiences.

The rest of the African continent remains a key source market for South Africa. According to the latest statistics, in the first two months of 2024, South Africa welcomed 1.3 million tourists from the rest of the African continent, marking a significant 76.0% of all arrivals.

Minister de Lille continues to be pleased with the impressive numbers from the African continent once again highlighting that South Africa welcomed 6.4 million visitors from the rest of the African continent between January and December 2023, marking a significant 75.6% of all arrivals.

Source: Pondoland Times.

Passenger Demand Up 13.8% in March- IATA

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

• Total demand, measured in revenue passenger kilometers (RPKs), was up 13.8% compared to March 2023. Total capacity, measured in available seat kilometers (ASK), was up 12.3% year-on-year. The March load factor was 82.0% (+1.0ppt compared to March 2023).

• International demand rose 18.9% compared to March 2023; capacity was up 18.8% year-on-year and the load factor improved to 81.6% (+0.1ppt on March 2023).

• Domestic demand rose 6.6% compared to March 2023; capacity was up 3.4% year-on-year and the load factor was 82.6% (+2.5ppt compared to March 2023).

“Demand for travel is strong. And there is every indication that this should continue into the peak Northern Summer travel season. It is critical that we have the capacity to meet this demand and ensure a hassle-free travel experience for passengers. That means making urgent progress to resolve supply chain issues and for airports and air traffic management to be fully staffed and operating at maximum efficiency. While airlines are prepared for customer care and assistance when operational issues arise, they are fed-up of bearing the cost when delays and cancellations are the result of poor preparation in other parts of the value chain,” said Willie Walsh, IATA’s Director General.

Regional Breakdown – International Passenger Markets

All regions showed strong growth for international passenger markets in March 2024 compared to March 2023. The load factor performance was patchy, falling year-on-year in three of the six regions.

Asia-Pacific airlines continue to lead with way, with a 38.5% year-on-year increase in demand. Capacity increased 37.4% year-on-year and the load factor rose to 85.6% (+0.7ppt compared to March 2023), the highest among all regions. Major routes from Asia-Pacific display outstanding growth, although the number of scheduled air services from China to North America is still only 16.5% of pre-pandemic levels.

European carriers saw an 11.6% year-on-year increase in demand. Capacity increased 11.4% year-on-year, and the load factor was 79.9% (up just 0.1ppt compared to March 2023).

Middle Eastern airlines saw a 10.8% year-on-year increase in demand. Capacity increased 13.9% year-on-year and the load factor fell -2.1ppt to 77.5% compared to March 2023.

North American carriers saw a 14.5% year-on-year increase in demand. Capacity increased 14.8% year-on-year, and the load factor fell to 84.7% (-0.2ppt compared to March 2023).

Latin American airlines saw a 19.7% year-on-year increase in demand. Capacity climbed 18.3% year-on-year. The load factor rose to 84.3% (+0.9ppt compared to March 2023).

African airlines saw an 8.1% year-on-year increase in demand. Capacity was up 11.0% year-on-year. The load factor fell to 70.3% (-1.9ppt compared to March 2023).

Domestic markets

Domestic demand increased at a slower pace in March, moderating to typical pre-pandemic growth rates. China (+17.6% compared to March 2023) continued to be the leading market. Other markets showed stable growth with the exception of Australia. Its drop in growth may reflect the wider economic slowdown in Q1 in the country.

Source: Voyages Afriq

Renegade Air Supports KATA Kisumu Travel Agents Forum.

Travel Agents in Kisumu on Tuesday gathered at the Acacia Premier Hotel for this year’s Kisumu Travel Agents Forum hosted by KATA and supported by Renegade Air. The forum brought together agents and operators from the larger Western region tourism circuit and explored the topic “Unlocking Opportunities: Empowering Travel and Tourism in the Lake Region.”

At the forum, participants discussed the potential growth of the travel business in the western Kenya region and the role domestic carriers such as Renegade Air play in supporting local economies. The Chairperson of KATA Allied members and KATA Board member Grace Ndung’u spoke about the role KATA plays in supporting travel agencies in the country and called upon agents who were not members to consider joining the membership. Patrick Oketch, the Marketing and Sales Officer at Renegade Air, lauded the support travel agents were giving the airline, noting that over 60% of the airline’s sales were generated by Travel Agents. He reiterated the airline’s commitment to continue working with agents and offering them support whenever they required. Charles of Sandah Travel and Tours shared with participants how KATA had helped him build his business grow since joining in 2023. “Through KATA, I have been able to participate in international travel shows in South Africa twice, and now I am headed to Dubai for the Arabian Travel Market (ATM). These international shows are helping me build my international profile and networks.

Arabian Travel Market to kick off on May 6 in Dubai

According to data from Deloitte, Dubai is leading the regional hospitality markets with a strong outlook for 2024.

The upcoming edition of Arabian Travel Market (ATM), a premier global event in travel and tourism, will serve as a pivotal gathering for hospitality stakeholders from 6th to 9th May at the Dubai World Trade Centre.

According to data from Deloitte, Dubai is leading the regional hospitality markets with a strong outlook for 2024. The city now offers more hotel rooms than major capitals such as London, New York City and Bangkok, and as of this month, Dubai has a hotel room capacity of over 150,000.

Data from the Dubai Department of Economy and Tourism (DET) showed that the city welcomed 17.15 million overnight visitors during 2023, with the average length of stay also increasing. According to Deloitte, occupancy peaked at 88% in February.

“As the hospitality landscape in the GCC region continues to evolve, the data paints a compelling picture of growth and opportunity. ATM 2024 will feature a wide range of hospitality brands from around the world, and we are pleased to report that there has been a 21% increase in exhibition space dedicated to hotel brands this year, demonstrating strong interest and demand,” said Danielle Curtis, Exhibition Director ME, Arabian Travel Market.

Source: Zawya

Navigating Payment Turbulence — Unraveling Payment Processing Challenges in the Travel Industry!

In an era where technology has seamlessly woven itself into the fabric of our daily lives, the travel industry stands at the intersection of innovation and complexity. Amidst the excitement of planning vacations and exploring new destinations, the intricate web of payment processing challenges often go unnoticed. In this comprehensive blog, we will delve into the nuances of payment processing in the travel industry, unraveling the complexities that both businesses and consumers encounter.

  1. Cross-Border Payment Friction —

One of the foremost challenges faced by the travel industry in payment processing is the complexity of cross-border transactions. As travelers jet off to explore new horizons, payments traverse international borders, encountering diverse currencies, regulations, and financial systems. This intricacy often leads to currency conversion issues, delayed transactions, and additional fees, leaving both consumers and businesses grappling with a less-than-optimal payment experience.

Solutions:

Multi-Currency Support: Implementing payment systems that seamlessly support multiple currencies can mitigate the impact of currency conversion issues, providing users with a transparent and hassle-free payment experience.

Regulatory Compliance: Staying abreast of and adhering to international financial regulations is crucial. Collaborating with payment processors well-versed in cross-border compliance can help navigate the complex regulatory landscape.

  • Fraud Risks and Security Concerns —

As online transactions surge, so do the risks associated with fraud and security breaches. The travel industry, with its high-value transactions and vast array of customer data, becomes a lucrative target for cybercriminals. From stolen credit card information to identity theft, the potential consequences of inadequate payment security measures are significant.

Solutions:

Tokenization: Employing tokenization technology can enhance security by replacing sensitive payment information with unique tokens. This minimizes the risk of data breaches and ensures that customer data remains protected.

Two-Factor Authentication (2FA): Implementing robust authentication processes, such as 2FA, adds an extra layer of security, making it more challenging for unauthorized individuals to gain access to sensitive information.

  • Dynamic Pricing and Transparent Payments —

The dynamic nature of pricing in the travel industry, with fluctuating fares and real-time availability, poses a unique set of challenges in payment processing. Consumers expect transparency in pricing, and any discrepancies or hidden fees can lead to dissatisfaction. Ensuring a seamless payment experience amidst the constantly evolving pricing landscape requires innovative solutions.

Solutions:

Real-Time Price Adjustments: Implement systems that dynamically adjust prices in real-time, ensuring that customers are charged accurately based on the latest information, and transparency is maintained throughout the booking process.

Clear Communication: Providing clear communication on pricing details, including taxes and fees, helps build trust with customers. Transparent payment processes contribute to a positive user experience and can lead to increased customer loyalty.

  • Mobile Payments and User Experience —

The ubiquity of smartphones has transformed the way people interact with businesses, including travel services. Mobile payments have become a cornerstone of the industry, but optimizing the user experience on mobile platforms presents its own set of challenges. From responsive design to intuitive interfaces, ensuring a seamless mobile payment experience is imperative for customer satisfaction.

Solutions:

Mobile-Optimized Interfaces: Designing user interfaces specifically tailored for mobile devices enhances the overall payment experience. Intuitive navigation and responsive design contribute to smoother transactions on smartphones and tablets.

Mobile Wallet Integration: Embracing popular mobile wallets and payment apps streamlines the payment process. Integrating options like Apple Pay, Google Pay, and others caters to the preferences of mobile-savvy travelers.

  • Integration with Emerging Technologies —

The rapid evolution of technology introduces both opportunities and challenges for the travel industry. Integrating with emerging technologies such as blockchain, artificial intelligence (AI), and machine learning (ML) can revolutionize payment processing but requires careful consideration and strategic planning.

Solutions:

Blockchain for Security: Leveraging blockchain technology can enhance security and transparency in payment transactions. Blockchain’s decentralized nature reduces the risk of fraud and ensures the integrity of financial transactions.

AI and ML for Fraud Detection: Implementing AI and ML algorithms can strengthen fraud detection mechanisms. These technologies can analyze patterns, detect anomalies, and adapt to evolving threats, providing a proactive approach to security.

  • Regulatory Compliance and Legal Complexities —

The travel industry operates on a global scale, subject to a myriad of regulations and legal frameworks. Ensuring compliance with diverse international and local laws poses a significant challenge for payment processors and businesses alike. Failure to navigate these regulatory waters diligently can result in legal consequences, fines, and reputational damage.

Solutions:

Legal Consultation: Collaborating with legal experts specializing in international payment regulations can provide invaluable insights. Establishing a robust legal framework ensures that payment processes align with the various compliance requirements across regions.

Regular Compliance Audits: Conducting regular compliance audits helps identify any gaps or changes in regulations. Staying proactive in adapting to evolving compliance standards minimizes the risk of legal complications.

  • Chargebacks and Dispute Resolution —

Chargebacks, often stemming from customer dissatisfaction, unauthorized transactions, or fraud, are a common concern for the travel industry. Disputes can lead to financial losses, strained customer relationships, and added administrative burdens. Resolving chargebacks efficiently is crucial to maintaining a positive payment ecosystem.

Solutions:

Effective Communication: Establishing clear communication channels with customers can prevent misunderstandings that may lead to chargebacks. Timely and transparent communication regarding policies, refunds, and dispute resolution can foster trust.

Robust Documentation: Maintaining thorough documentation of transactions, including booking confirmations, terms of service, and customer communications, strengthens the merchant’s position in case of disputes.

  • Infrastructure Scalability and Reliability —

The travel industry experiences fluctuations in demand, especially during peak seasons and special events. Payment processing systems must be scalable to handle sudden spikes in transactions without compromising speed and reliability. Downtime or processing delays can have severe consequences, affecting customer satisfaction and revenue.

Solutions:

Cloud-Based Solutions: Utilizing cloud-based payment processing systems allows for scalability and flexibility. Cloud infrastructure can handle increased transaction volumes during peak periods, ensuring a seamless payment experience for customers.

Redundancy and Failover Mechanisms: Implementing redundancy and failover mechanisms in payment systems ensures uninterrupted service. Redundant servers and backup systems can mitigate the impact of hardware failures or other technical issues.

  • Collaboration and Interoperability —

The travel industry consists of a complex ecosystem of service providers, including airlines, hotels, travel agencies, and payment processors. Ensuring seamless collaboration and interoperability between these entities is essential for a cohesive payment experience. Incompatibility or communication breakdowns can lead to inefficiencies and errors in transaction processing.

Solutions:

Standardized Protocols: Adhering to industry-standard protocols for data exchange facilitates interoperability between different components of the travel ecosystem. This ensures that information flows seamlessly across various platforms.

Collaborative Partnerships: Establishing strong partnerships and collaborations between travel service providers and payment processors enhances communication and interoperability. Shared platforms and integrated systems can streamline payment processes.

Conclusion —

In conclusion, the payment processing challenges faced by the travel industry are multifaceted, requiring a holistic and strategic approach. From cross-border complexities to security concerns and regulatory hurdles, addressing these challenges demands a combination of technology adoption, regulatory compliance, and a commitment to customer satisfaction.

The industry’s future success hinges on its ability to adapt to emerging technologies, foster collaboration, and prioritize the security and transparency of payment processes. As we navigate the ever-evolving landscape of global travel, overcoming these challenges will not only enhance the efficiency of payment processing but also contribute to a positive and memorable experience for travelers worldwide. The journey toward a seamless payment horizon in the travel industry is ongoing, marked by innovation, resilience, and a dedication to elevating the overall travel experience.

Source: Pulse

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  

Kenya Association of Travel Agents (KATA) Partners with Absa Bank Kenya and Visa to Introduce Enhanced Corporate Card Solutions.

28th March 2024

By: Bryan Obala

Membership & Communications, KATA

In a groundbreaking collaboration, Absa Bank Kenya, in conjunction with Visa, has unveiled the Visa Commercial Choice Programme, a pioneering Corporate Card solution aimed at members affiliated with the Kenya Association of Travel Agents (KATA). This innovative initiative promises a myriad of benefits including enhanced automation, flexibility, and improved cash flow management for travel agents across the country.

From left: Dr. Joseph Kithitu, KATA Chairman; Moses Muthui, Consumer Banking Director, Absa Bank; James Kabuthi, Head of Products and Solutions, East Africa, Visa

Under this strategic partnership, travel agents under KATA, representing a formidable network of over 300 travel agencies, stand to gain from streamlined payment solutions tailored specifically for business to business (B2B) transactions. These solutions are geared towards fostering efficient working capital management, operational effectiveness, and improved supplier relationships.

The Visa Commercial Choice Travel Programme, freshly introduced by Absa Bank, offers a plethora of advantages for travel agents within KATA. Notably, agents now have the option to conduct transactions in Kenyan Shillings or US Dollars, empowering them to effectively manage cash flows and optimize working capital. Furthermore, members can leverage the Visa Commercial Pay Virtual Card Platform to automate booking processes and access cutting-edge tools for data management and reconciliation, complete with an intuitive reporting feature for seamless monitoring.

In addition to the tailored Corporate Card solution, Absa Bank is also rolling out a revamped Absa Corporate Visa Card, equipped with enhanced features and flexibility to address the diverse needs of businesses. Through this card and the innovative Visa Commercial Pay Virtual Card Platform, businesses can exercise greater control over employee-initiated expenses and payments, thereby enhancing visibility and operational efficiency.

Commenting on the collaboration, Moses Muthui, Consumer Banking Director at Absa Bank, expressed enthusiasm, stating, “The collaboration between Absa Bank Kenya, Visa, and the Kenya Association of Travel Agents marks a significant milestone in our efforts to empower businesses and accelerate digital inclusion in this space with smarter and integrated payment solutions.”

Eva Ngigi-Sarwari, Visa Kenya Country Manager, echoed similar sentiments, highlighting the partnership’s commitment to innovation and service excellence. She emphasized, “By combining Visa’s global reach and advanced technology with Absa’s deep local market expertise, we are confident that this new payment solution will significantly enhance the way travel agents manage their transactions, providing them with a seamless, efficient and secure experience.”

Nicanor Sabula, CEO of KATA, lauded the collaboration, affirming its importance in catering to the specific needs of members and underscoring the commitment to industry-focused financial solutions.

From left: Dr. Joseph Kithitu, KATA Chairman; Moses Muthui, Consumer Banking Director, Absa Bank; James Kabuthi, Head of Products and Solutions, East Africa, Visa at the Launch of the Corporate Cards for Travel Agents

The Absa Corporate Visa Card offers a range of features including virtual and physical card options, granting customers the flexibility to adapt to various payment scenarios. Furthermore, it integrates seamlessly with Visa Commercial Pay, facilitating hassle-free payments to travel suppliers such as airlines and hotels while streamlining reconciliation processes.

With the launch of the Absa Corporate Visa Card, Absa Bank Kenya reiterates its dedication to innovation and excellence in client service. Leveraging cutting-edge technology and strategic partnerships, the bank continues to deliver solutions that resonate with the evolving needs of businesses in Kenya and beyond.