KICC Unveils Spectacular Dancing Fountains to Elevate Guest Experience and Attract MICE Business to Kenya

The Kenyatta International Convention Centre (KICC) proudly announces the launch of its state-of-the-art dancing fountains. This mesmerizing water feature, synchronized with Kenya’s patriotic music and dynamic lighting, is set to revolutionize the event experience, offering visitors an unforgettable spectacle that enhances the ambiance of the venue.

The new dancing fountains, designed with cutting-edge technology, will showcase choreographed water displays that synchronize with a variety of musical genres, from patriotic songs, classical symphonies to modern pop and jazz. The feature boasts a fully programmable system, allowing for customized performances tailored to specific events, themes, or corporate branding.

“With the introduction of our stunning dancing fountains, we are redefining the event experience at KICC. The fountains will be the only one of their kind in Africa. They will be like the ones of Burj Khalifa in Dubai” said Geoffrey Thande,  Director Business Development of KICC. “This attraction will not only captivate visitors but also serve as a unique focal point for International and local events, gala dinners, trade shows, and entertainment productions. It adds a dynamic visual and sensory element that sets Kenya apart from the competition.”

Mr Thande further said that the Convention Centre is planning to have family extravaganzas and other thematic events every weekend for the shows. He further added that KICC is in talk with the County government of Nairobi to close off the city hall way during the weekends to allow for the spectacular shows to take place.

Geoffrey Thande,  Director Business Development of KICC

The new fountains align with the Corporation’s mission to continually enhance its facilities and provide world-class amenities for its clients and guests. The feature is expected to be a major draw for business events, offering delegates an innovative way to create engaging experiences while at the Centre.

A special inaugural event will take place on 20th of this Month during the Safari Rally Flag off Ceremony. We will feature an exclusive showcase of the fountains in action, accompanied by live music and special effects. Event planners, corporate executives, and media representatives are invited to witness firsthand the breathtaking fusion of water, light, and sound.

The Convention Centre is also developing two more products to make the Centre even more attractive for business. The Revolving Restaurant on 27th floor is being redeveloped and the KICC tower will be providing high technology advertising platform soon. All these projects are geared towards increasing revenue and venue appeal to delegates and visitors to KICC.

Advanced Distribution Capabilities: Transforming Business Travel Across Africa

The business travel industry is undergoing a major transformation, driven by the demand for more efficient, dynamic, and customer-focused distribution systems. At the forefront of this evolution is New Distribution Capability (NDC), which is reshaping how travel services are accessed and delivered. For African travel agents, hoteliers, and travel management companies (TMCs), these advancements provide an opportunity to address existing challenges, improve efficiency, and unlock new revenue streams.

Today’s corporate travelers expect a seamless booking experience, complete with diverse inventory, dynamic pricing, and personalized options. From loyalty-based promotions to tailored room preferences and flexible payment methods, the demand for intuitive and comprehensive platforms is growing rapidly. Yet, many TMCs struggle with “leakage”, where travelers book outside preferred channels due to limited inventory, poor user experiences, or insufficient payment solutions. In some programs, leakage rates reach as high as 50%, underscoring the need for better systems to retain traveler trust and enforce corporate compliance.

The Role of Advanced Distribution Capabilities

Advanced distribution systems are redefining how inventory is accessed and utilized, streamlining the business travel ecosystem. These systems allow TMCs to overcome traditional limitations by offering more comprehensive solutions to travelers.

Key Features of Advanced Distribution Systems:

  1. Expanded Inventory Access
    TMCs can now provide a full range of options, including corporate rates, loyalty-based discounts, and promotional offers, all within a single platform. By eliminating the need for external consumer channels, these tools increase traveler confidence in preferred booking paths.
  2. Enhanced Personalization
    Travelers increasingly expect booking options tailored to their preferences, such as room types, add-ons like breakfast, or loyalty perks. Attribute-based shopping empowers hoteliers to deliver these customized experiences, boosting satisfaction and driving additional revenue.
  3. Seamless Payment Solutions
    Payment challenges remain a pain point in business travel. Modern systems integrate virtual payment options and global transaction strategies, simplifying processes for travelers and reducing administrative burdens for TMCs.
  4. Centralized Multi-Sourcing
    By aggregating content from GDS, OTAs, and direct hotel connections, these platforms create a centralized hub for rates and availability. This reduces booking fragmentation, improves compliance, and simplifies reporting for corporate buyers.

Opportunities for Hoteliers

For African hoteliers, these advancements present opportunities to enhance revenue and competitiveness. By leveraging dynamic pricing for room attributes and bundled services, hotels can optimize revenue while creating more engaging booking experiences. Additionally, direct connections to intermediaries like DerbySoft reduce reliance on third-party platforms, cutting distribution costs and improving inventory control.

Loyalty integration also plays a critical role, as modern tools enable hotels to extend loyalty benefits at the point of booking, strengthening relationships with customers and boosting program enrollment.

Challenges and Collaboration

While these innovations offer immense potential, challenges persist. Many African hotels still operate on fragmented technology stacks, with outdated property management systems (PMS) and central reservation systems (CRS). Additionally, unlike the airline industry, where NDC adoption has been standardized, the hotel sector struggles with inconsistent implementation. Collaboration across TMCs, hoteliers, and technology providers is essential to overcome these barriers.

A Path Forward for Africa’s Travel Industry

For the African travel industry to thrive, stakeholders must prioritize traveler-centric experiences, invest in cutting-edge technology, and foster partnerships that align with operational goals. By embracing advanced distribution capabilities, they can not only improve efficiency and personalization but also integrate sustainability initiatives and duty of care for corporate clients.

These advancements are reshaping the future of business travel, offering unparalleled opportunities for innovation and revenue growth. African travel agents and hoteliers must adapt now to remain competitive in an evolving market, leveraging tools that enhance both traveler satisfaction and operational success.

Source: Travel news africa

Cabinet endorses plan to raise duty free import limit

The increased duty-free import limit to Sh250,000 from Sh50,000 aims to enhance passenger experience at JKIA

  • Previously, travellers complained about having their goods seized for exceeding the Sh50,000 threshold.
  • Changes also include exempting all African citizens from Electronic Travel Authorisation (ETA) requirements and easing intra-African travel.

The Cabinet has endorsed a plan to allow travelers entering Kenya to enjoy an increased duty-free import limit of up to Sh250,000 from Sh50,000.

Previously, travelers complained about having their goods seized for exceeding the Sh50,000 threshold.

Under the plan, passengers bringing goods for personal use valued at up to Sh250,000 will no longer be required to pay customs duties.

A dispatch said the Cabinet endorsed a comprehensive plan to enhance passenger experience at Jomo Kenyatta International Airport (JKIA) by streamlining operations and bolstering security.

“Security screening at JKIA will be enhanced through risk-based profiling, ensuring only flagged bags undergo manual inspection in a dedicated screening room, reducing delays and improving efficiency,” the dispatch said.

It said changes also include exempting all African citizens from Electronic Travel Authorisation (ETA) requirements and easing intra-African travel.

To further expedite travel, the Cabinet announced that the number of immigration booths and staff will be doubled, while E-Gates will be introduced to eliminate long queues and speed up clearance.

“Accountability measures will also be strengthened with new monitoring technology deployed to oversee airport staff and mandatory uniforms with visible name tags required for all agency employees and retail concessionaires,” the dispatch added.

The Cabinet further announced that JKIA infrastructure will also undergo major upgrades, including modernised baggage handling systems, improved stormwater drainage and access roads, the installation of covered walkways, enhanced air conditioning, and clearer signage.

“Meet-and-greet services will be strictly regulated, ensuring only licensed facilitators operate within the airport to enhance security and order. These measures take immediate effect, reinforcing JKIA’s position as a leading aviation hub by improving efficiency, security, and overall passenger experience,” the statement added.

Cabinet also approved several host country agreements, reinforcing Kenya’s role as a regional hub for international organisations.

These include agreements with the International Institute for Democracy and Electoral Assistance, Save the Children International, Shelter Afrique Development

Bank, Oxfam International, Norwegian Refugee Council, and Population Services International, among others.

Additionally, Cabinet approved the ratification of an agreement with Singapore to eliminate double taxation and prevent fiscal evasion, further strengthening Kenya’s global trade and investment ties.

Cabinet also endorsed Kenya’s hosting of the International Air Transport Association (IATA), underscoring the country’s commitment to enhancing international cooperation and economic diplomacy.

Source: The star

Govt Plans to Enhance Customer Experience at JKIA & Other Airports

Interior Cabinet Secretary Kipchumba Murkomen has announced the government’s plan to improve customer experience in Kenyan airports including the Jomo Kenyatta International Airport (JKIA).

The improvement will include adopting a service charter by coming up with a seamless coordination mechanism to enhance security, customs, immigration and customer care services at the airports.

Murkomen who spoke on Tuesday during a stakeholder meeting stated that the rollout would be done by a technical team made of officials from the ministries of transport, tourism, interior and coordination, and treasury.

According to the CS, the technical team had already begun working on a long-term strategy to enhance customer experience starting with the country’s main airport.The new charter is also expected to streamline airport operations and ensure smooth passenger movement without interfering with security protocol at the airports.

Further, Murkomen revealed that all airport workers will be required to have a name tag for ease of identification and the introduction of biometrics.

To reduce the long queues at the airports, the Interior CS announced plans to introduce more checking points and the use of advanced technology to scan travellers. 

“Most of you have gone to various countries, and in many of those countries we do not like queuing, why do you want people here in Kenya to queue for a long time,” the Interior CS commented.

Murkomen emphasised that the new transformation followed an assessment conducted by officials from the Ministry of Transport on how other airports across the world operated.

“One of the biggest contributions of this meeting is to finally adopt the airport charter. There is nothing outside in terms of security that stops us from having coordination in airports,” Murkomen stated.

“The Ministry of Transport has done a lot of work by benchmarking and researching what happens around the world, so we are not an exception as a country.”

The meeting was also attended by the Deputy Inspector General of Police Eliud Langat who revealed that a new police unit would be established at the airports to enhance security.

According to the police boss, the officers would also undergo customer training a training he said would mainly focus on the culture, attitude, and general outlook of the officers including how they dress.

Source: Kenyans.co.ke

Etihad Airways Strengthens Kenya Presence with Premium Office Launch

Etihad Airways, the national airline of the UAE established in 2003, has marked another milestone in its expansion in East Africa with the opening of a new corporate office in Nairobi’s prestigious Global Trade Centre (GTC). The office, operated through Etihad’s General Sales Agent (GSA) ITVAR Travel, was officially inaugurated with a ribbon-cutting ceremony on January 22, 2025 by Ahmad Dib, Etihad Airways General Manager Middle East & Africa, and Dr. Joseph Kithitu, Chairman of the Kenya Association of Travel Agents (KATA), alongside local business leaders.

The strategic location in Westlands, Nairobi’s premier business district, strengthens Etihad’s presence in Kenya following the launch of direct flights between Abu Dhabi and Nairobi in December 2024. Operating on Tuesdays, Thursdays, Saturdays, and Sundays with an Airbus A320 aircraft offering eight seats in Business and 150 in Economy, the service connects the two capital cities with morning departures from Abu Dhabi and evening flights from Nairobi.
Abu Dhabi’s position as a leading business hub, with its modern infrastructure and strategic location between Africa and Asia, makes it an increasingly important destination for Kenyan corporate travellers. The city offers world-class facilities for international business and serves as an ideal gateway for companies expanding their global presence.
According to Etihad Airways Chief Revenue and Commercial Officer, Arik De, this premium location in Nairobi’s Global Trade Centre strengthens the airline’s commitment to the East African market.
“The strong performance of our Nairobi service since its launch last month demonstrates the increasing ties between our two nations. This new office opening underscores our commitment to the Kenyan market as we continue to see growing demand from business and leisure travellers in both directions.”
Dr. Joseph Kithitu, KATA Chairman, added: “The opening of Etihad Airways’ new office in Nairobi’s business hub signals confidence in Kenya’s aviation market. This investment, coupled with their new direct flights, creates valuable opportunities for the travel trade and enhances connectivity for Kenyan travellers.”
The Global Trade Centre, a landmark development in Nairobi’s business district, houses numerous international corporations and is strategically positioned to serve Kenya’s expanding business travel sector.

How travel brands stay ahead on social media

Travel is all over social media — and it’s continuing to play a big role in travelers’ decisions while planning and booking their trips, according to research from Phocuswright.

But misconceptions around how travel brands should be using social media remain, according to experts.

“Travel brands are seeing social media as a category of the internet still when it’s increasingly becoming the way millennials and Gen Z access the internet altogether,” said Konrad Waliszewski, co-founder and CEO of @Hotel.

“Even Google admits now that most millennials and Gen Z search on Instagram and Tiktok before going to Google search for just about everything … I think it really has become the new search engine. People want to see videos. People want to see social proof,” he said.

David Armstrong, co-founder and CEO of HolidayPirates, discussed why it’s hard for brands to understand the value.

“I think the comparison to traditional search … paid search and the immediate return on investment [ROI], that’s a mistake that many brands do [make] comparing the performance of social media with,” Armstrong said.

ROI in social media marketing is a longer term play, he said. 

Some key performance indicators such as clicks, traffic, engagement and shares can be measured more immediately, but when revenue and conversion take more time.

“It’s not so comparable with traditional ways of performance marketing. It’s actually not really performance marketing that you do on social,” Armstrong said. “You have to have a more hybrid mindset of it.”

And while it’s a lot of work to keep up with ever-changing algorithms and trends, the space has continued to expand and there is more opportunity for brands to benefit.

“The growth, it hasn’t stopped,” Armstrong said. “Essentially, if you really dedicate yourself to the channel and understand how to play it, it keeps growing.”

It’s important to stay agile and to keep an eye on emerging platforms, too. 

“If a new platform comes out, we immediately jump in, and we’re just curious students of what’s happening,” Waliszewski said. “What we’ve found is … a lot of things have come, had a little moment of attention and then phased out. So we don’t over invest until the data shows that it’s working.”

While there’s a lot of room for success on social, it’s not as black and white in terms of how to have marketing success, Armstrong said. Instead, social media marketing involves some trial and error. But that’s not a bad thing, Waliszewski said.

“Let’s be honest, anyone in consumer travel cannot compete with Booking and Expedia on Google ads,” he said.

“What they can compete on is being first to these platforms, experimenting [with] these platforms. A lot of large incumbents won’t realize what’s happening on these new platforms, and then they’ll take so much time to allocate a team to start creating a strategy, and often will miss that wave.”

Organic social is the place to compete for newer companies, Waliszewski said, underscoring the importance of making an effort in that space.

The executives also touched on the most effective platforms, what has come and gone and how to navigate platform changes in an interview with senior reporter Morgan Hines in the PhocusWire studio at The Phocuswright Conference in November. 

Source: Phocus wire

Providing Greater Customer Experience For All Passengers; IATA Sets The Agenda

Passenger service standards are pivotal in shaping customer satisfaction within the commercial aviation sector

Global passenger traffic is expected to continue to grow strongly. Accommodating this growth is a major challenge for the air transport industry and governments. It will require new standards, harmonized regulations and adequate infrastructure. In collaboration with its members, international organizations and states, IATA develops standards aimed at simplifying the passenger process towards a more seamless, inclusive and secure passenger experience while improving efficiency and lowering industry costs.

“The clear message from travelers is that they expect to board their planes faster with technology and smarter processes beginning well before they reach the airport. And the good news is that we are making this happen. Already travelers can arrive at the airport ready to fly with admissibility checks completed. And biometrics and digital identity can deliver a paperless experience once at the airport. That’s great for passengers,” says an IATA official. Moe importantly, the greater efficiency will help airport infrastructure to better cope with the growth in passenger numbers, helping to make the business case for adopting these new technologies and processes even more compelling

Passenger service standards (PSS) are pivotal in shaping customer satisfaction within the commercial aviation sector. High service standards lead to positive passenger experiences, fostering loyalty and enhanced brand reputation. When airlines meet or exceed these standards, customers are more likely to choose them for future travel.

Key elements contributing to customer satisfaction include safety, comfort, and ease of access to services. Timeliness in service delivery, courteous staff interactions, and attention to passenger needs all play significant roles. Therefore, adherence to these standards must be prioritized. Satisfaction is not solely derived from meeting basic expectations but also from providing exceptional experiences. Airlines that consistently uphold high PSSs can differentiate themselves in a competitive market. This differentiation can translate into repeat business and favorable reviews. Ultimately, the alignment of PSS with customer expectations results in a stronger competitive advantage. Satisfied customers are more inclined to recommend airlines to others, further enhancing the reputation and success of the airline industry.

Maintaining high passenger service standards in commercial aircraft presents various significant challenges. Economic downturns often compel airlines to implement cost-cutting measures that directly affect service quality. Reduced staffing levels can result in increased workloads for remaining employees, leading to potential lapses in passenger service. In addition, the rising volume of passengers exacerbates these challenges. As airlines accommodate more travelers, the strain on resources escalates, making it increasingly difficult to provide personalized attention and adequate support during flights. Long wait times and insufficient communication can compromise the overall travel experience.

Consequently, the balance between maintaining high PSS and managing operational constraints requires constant attention. Airlines must continuously adapt and find innovative solutions to meet passenger expectations while remaining financially viable. A significant increase in passenger numbers can lead to congestion at airports and within aircraft. This often results in longer wait times for check-in, security, and boarding processes. Consequently, airlines face pressure to streamline these operations to enhance efficiency while still providing exceptional service to each passenger. Furthermore, increased passenger volume may strain onboard services such as catering, entertainment options, and cabin crew availability. Airlines must invest in resources and training to ensure that staff is well-equipped to handle a larger number of passengers. Adapting to this shift is essential for airlines aiming to uphold their passenger service standards amid growing demand.

Additionally, the rise in passenger volume can intensify competition among airlines, prompting them to differentiate their services. Innovations and improved service offerings become vital for attracting and retaining customers, making it imperative for airlines to continuously evaluate and elevate their passenger service standards. Innovations enhancing passenger service standards are transforming the commercial aviation landscape. One notable area of advancement is technology integration, which facilitates smoother check-in processes, reducing wait times and enhancing overall passenger convenience. Mobile boarding passes and self-service kiosks empower travelers to manage their journeys more independently. Passenger service standards encompass a set of criteria that airlines implement to enhance the passenger experience from booking to arrival.

Moving forward, airlines must prioritize these standards to adapt to evolving customer expectations and maintain competitiveness in the aviation industry. The future of PSS will likely be shaped by innovations and regulatory advancements, ensuring that airlines adapt to changing passenger expectations while prioritizing safety and comfort. Continuous improvement in service delivery will be essential for success in this dynamic environment. Transformation, industry success and sustainability can only be achieved through collaborative efforts. IATA is working to develop and nurture partnerships to strengthen the end-to-end passenger experience by engaging airlines, governments, industry associations and strategic partners at global, regional and local levels, to identify common objectives, and areas to start or bolster existing collaborations.

Source: Bizz Buzz

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