The Kenya Association of Travel Agents (KATA) in collaboration with Amadeus East Africa, this week hosted two industry meetings in Nairobi and Mombasa, where travel agents got to know more about current updates in the industry.

On October 23^rd & 25^th 2019, the travel agents converged at the Jacaranda Hotel and Royal Court hotel respectively where they learnt more about cybersecurity and ways of protecting one’s business from cyber-attacks.

The travel agents also got to hear more about the withdrawal of Default Insurance Program (DIP) in the market after Saham refused to comply with new regulations to provide the financial facility.

Amadeus EA Managing Director Mr. Mathieu Dutrisac noted that cybercrime is rampant. “Most of the cyber hacking that takes place goes unreported. Statistically, every one in three people has been hacked,” he said.

Mr. George Munene from Simply IT, an Amadeus Partner, took the KATA members through a talk on cybersecurity awareness.

He emphasised on the need for individuals and companies to put in place safeguards that will ensure that they protect their data and don’t fall prey to cyberattacks.

“Ninety-one percent of attacks start with a phishing email. One needs to stick to the safeguards in order to protect data and information. Ensure that you have the latest software updates, learn and educate your staff on the do’s and don’ts, back up your data and become compliant,” Mr Munene said.

He pointed out that many people and companies have lost large amounts of money through cyber-attacks.

KATA Chief Executive Mr. Nicanor Sabula noted that collaboration between GDS Companies and KATA is key in fighting cybercrime in the travel industry.

Mr. Sabula and KATA Board Vice-Chair Ms Shazmin Manji also took members through the DIP impasse.

Members were informed that Saham Insurance announced that they would not be renewing DIP for the year 2020 after IATA introduced new requirements that the insurance company declined to comply with.

The withdrawal of this facility means that travel agents have less than three months to come up with a solution on financial security to ensure that the ticket sales market is not affected.

Mr. Sabula urged members to remain calm as the association works towards finding a lasting resolution.

Amadeus and Sabre — have agreed to distribute ATPCO’s Routehappy rich content into their various flight-shopping interfaces and applications serving travel agencies, OTAs, corporate booking tools and other sellers.

Robert Albert, ATPCO’s executive vice president of retailing and the founder of Routehappy, said the agreements are a mass modernization project” of the systems that connect airlines to sales channels.

“We are improving those pipes, modernizing those pipes,” he said. 

Albert founded Routehappy almost a decade ago. ATPCO acquired the company in early 2018, and talks with Amadeus and Sabre have been ongoing for many years. These agreements, he said, signal the transformation that is underway in flight shopping, giving travelers access to details about the flight experience such as entertainment, WiFi, leg room, power access, baggage allowance, cancellation policies and more.

“We are at a tipping point. We’ve been at this almost 10 years, but we feel like the industry is finally coming together,” Albert said.

“IATA has been pushing NDC (New Distribution Capability), honing it and socializing it. Airlines have gotten behind it. Then you had the GDSs committing to NDC. … Then ATPCO, with Routehappy’s help, has been developing the Next Generation Storefront together with airlines and channels, and Routehappy has been building up this repository of rich content. It’s all coming together now.” 

Through these agreements, airlines get distribution reach of their offerings that is “exponentially greater than it has been,” which adds value to their investments in creating and maintaining the content. Sellers gain easier access to that content — coming directly from the GDS, through the same APIs that already provide fares and availability.

And the ultimate beneficiaries, said Albert, will be consumers who in the next few years will get an improved flight-shopping experience that more closely resembles buying from other e-commerce sites such as Amazon or hotel brand sites, with detailed product information, photos and videos that make it easy to compare offers.

ATPCO also has integrations with Japanese GDS Infini and Chinese GDS TravelSky. When asked if it may also work with Travelport, Albert said, “My hunch is that the reason they are not here, in addition to changing ownership and changing management, is that they have some of their own rich content.

“There’s lots of conversations happening, and we’ll see what happens in the future. I don’t think it will just be Amadeus and Sabre working with us in this way,” he said.

Source: https://www.businessdailyafrica.com/page/search/BusinessDaily/539444-539444-view-asSearch-qkxhghz/index.html

Big data is permeating every aspect of daily commercial activity—from financial services, retail, logistics to production lines.

Airlines are now having their moment of epiphany with big data. Take the case of AirAsia, one of the leading low-cost carriers (LCC) in the ASEAN region.

At a recent Credit Suisse Asia Investment conference, its chief executive Tony Fernandes made a pitch for AirAsia becoming a digital retailer (and not just an airline).

Michael O’Leary, the chief executive of Europe’s leading LCC Ryanair has previously stated that his airline would eventually become the Amazon of travel.

There is no doubt that airlines are moving beyond the legacy model (or monoline) of ticket sales, and are building a strong ancillary business. Think about it.

If you are a frequent traveler to Lagos with Kenya Airways, there are high chances the airline doesn’t know you. Yet a flight is just a secondary part of your journey. Upon disembarking, you will need transfer from the airport, as well as hotel accommodation; and you may also want to discover a bit of the city in between business meetings (for instance, the best restaurants offering authentic local cuisines).

Often, legacy airlines show little interest in non-flight part of a passenger’s journey. And for an airline of the stature of Kenya Airways that flies close to five million passengers a year, that’s a lot of data that they accumulate.

With a little mining, they can begin to know their customers better and make mouthwatering propositions.

They even begin to bundle and personalise products better and stop mass advertising as much because as you get to know your customers better, you begin to go directly to them (I get a lot of junk e-promos from KQ).

Ancillary business, which is not an entirely new concept, is now top of mind for almost every airline. In 2018 projections from the International Air Transport Association (IATA), the industry lobby, showed that if the potential in ancillary revenues were to be harnessed, the income would cover half the annual fuel expenditure.

The same report noted an increase in cost of fuel against the same number of airlines from an approximate $149 billion in 2017 to $188 billion in 2018.

So we are looking at airlines generating nearly $100 billion in ancillary revenues. At the root of this growth has been the unbundling of ticket prices, or the core ‘air’ ancillary products.

They comprise offerings such as assigning of seats, extra legroom, onboard shopping and checked baggage as part of the package.

However, ‘non-air’ ancillary services are also fast becoming mainstream. On its website, AirAsia offers users hotel accommodation deals, car rental, credit cards and even travel protection (insurance).

When you want to travel to London, for instance, your first point of interaction is with an airline(s) when checking out ticket prices. What if the airline also offered you airport transfer and hotel accommodation?

It’s no wonder AirAsia generated 22 percent of revenues from ancillaries in 2018. However, Spirit Airlines, an American carrier, still stands out after generating 47 percent of its total operating revenues from ancillaries.

In 2018, Kenya Airways jumped into the ancillary bus by introducing an enhanced seating propositions (extra legroom and preferred seat) and significantly growing its distribution scope to all relevant direct booking channels, generating an additional Sh8.3 billion (which was just a paltry seven percent of its total revenues).

As airlines become more agile, the aircraft will become merely a tool to acquire customers. An airline executive even talked of giving free flights to passengers in exchange for a holiday booking on their platform, which is not a far-fetched concept. All thanks to big data.

@GeorgeBodo

Source: https://www.businessdailyafrica.com/analysis/columnists/can-data-come-to-rescue-of-Kenya-Airways/4259356-5324598-15h6mko/index.html

Seven local hotels were feted during the 2019 World Luxury Hotel awards where six emerged top in various categories across Africa as one topped in East Africa.

Elewana Kifaru House located in Lewa Conservancy emerged the continent’s overall luxury hotel with best scenic environment with Nanyuki’s Maiyan emerging top in luxury private pool villa category as Nairobi’s Sankara bagged the luxury boutique hotel award.

Sarova Stanley emerged Africa’s best luxury city hotel as Sarova Whitesands Beach Resort was named the best luxury beach resort as Sun International topped continent’s overall to be feted as the best luxury hotel group. Diani’s Lantana Galu Beach Hotel was the East Africa’s best family beach hotel.

Turkey’ Mandarin Oriental, Bodrum won the overall best hotel and destination award during the 13th annual World Luxury Hotel Awards gala was held in Finland last weekend.

World Luxury Hotel Awards are exclusive and recognise the best facilities and service excellence in the industry. The winners are judged on service delivery and effective management voted for by International tour operators, travel agents and hotel guests who get the opportunity to cast their votes annually.

The award organisers described the Turkish hotel as a luxury five-star hotel retreat with two private beaches and excellent leisure facilities, guests are invited to lie back, relax and savour the moment.

“With an idyllic location in Paradise Bay, Mandarin Oriental, Bodrum offers a seductive blend of style, serenity and five-star comfort. With a range of gourmet restaurants, relaxing spa and choice of rooms, suites and villas, the unique resort is definitely world-class.”

Notably, the number of local hotels featured this year went down by four an indicator of the stiff competition in Kenya’s hospitality sector.

Source: https://www.businessdailyafrica.com/corporate/companies/Kenyan-hotels-shine-at-world-luxury-awards/4003102-5319478-aryquk/index.html

A Polish charter airline will be flying weekly to Mombasa, Kenya, after its maiden flight was launched on October 12.

The carrier named Smartwings Airlines will be bringing in around 200 tourists from Poland, and is expected to push up the regions hotel occupancy rates above the current 70%.

It will be operating once a week until end of 2019 before increasing its frequency to twice a week from January to March next year.

According to Business Daily, Hoteliers have expressed confidence in the resumption of the airline saying it will boost the tourism sector during the November to December peak season.

“This is the first charter we are welcoming this year of the Polish market. It is very exciting because the whole of these three months this year, they will be bringing in a charter per week, that’s about 200, visitors coming in from Poland,” said Kenya Coast Tourism Association Chairman Victor Shitakha.

Source: http://www.tourismupdate.co.za/article/196071/Charter-Airline-launches-weekly-flights-to-Mombasa/26

Kenya has an opportunity to market its best attractions in the upcoming Dubai 2020 expo alongside more than 200 nations keen on making an appearance at the global event.

To make the six-month event a success, Dubai has embarked on a major charm offensive ahead of hosting the exhibition in which the Middle East city seeks to catch the eye of the world.

Among preparations for the October 2020 to March 2021 is the setting up of a new state of the art city next to the new marina zone spotting all new buildings.

Dubai says the city is a test bed for innovation and a blueprint for future smart cities.

At the centre of the plan is Al Wasl Plaza which is the old name for the Emirates, and previously won the right to host the event in November 2013.

 “We will use this event to create jobs and businesses,” said Reem AL Heshimy one of the organisers of the event at the official launch of 365 days to Dubai 2020 expo.

“The days give an unprecedented opportunity to inspire new ideas for better future and for the Arab region to prove that religion and culture are not a hindrance to development,” she said.

Dubai hopes the billions of dollars pumped into the megacity in conjunction with tech firm Siemens will yield Sh3.5 trillion ($35 billion) by 2030.

Source: https://www.businessdailyafrica.com/economy/Dubai-expo-opens-window-for-local-tourism-marketers/3946234-5321786-x81o9dz/index.html

 

Travel agents in East Africa have been thrust into a state of uncertainty after Saham insurance announced that they would not be renewing the Default Insurance Program (DIP) for the year 2020.

This was after the International Air Transport Association (IATA) introduced new requirements that Saham insurance refused to comply with.

The withdrawal of this facility means that travel agents have less than three months to come up with a solution on financial security to ensure that the ticket sales market is not affected.

Kenya Association of Travel Agents (KATA) CEO Mr. Nicanor Sabula said that the Association has reached out to IATA to provide an immediate solution to the impasse.

“We have engaged with various industry stakeholders including government agencies in an effort to find a quick and favourable solution,” he added.

Mr. Sabula urged members to remain calm as the Association works towards finding a lasting resolution.

Airlines globally use agents through a centralised distribution system to issue tickets to their clients. To participate in this ticketing platform, travel agents are required by IATA on behalf of airlines to provide financial security.

 

Kenya has been feted by the International Civil Aviation Organization (ICAO) for its enhance improvement in ensuring security to support the aviation sector.

The nation was awarded with the ICAO Council President Certificate in recognition to effective implementation of ICAO Standards and Recommended Practices (SARPs) in Aviation Security in 2018.

Uganda and Rwanda among other 28 countries have also been feted.

In 2016, Kenya scored 88 per cent against the global average of 64 per cent in the ICAO Universal Security Audit Programme – Continuous Monitoring Approach ((USAP-CMA).

Kenya Civil Aviation Authority (KCAA) Director General Gilbert Kibe has reiterated the acknowledgement in ensuring that the Kenyan airspace is safe and secure for aviation consumers, saying it looks to improve the score in the upcoming USAP Audit in 2020.

“Over the years, the authority has strived towards improving our aviation security processes and systems in compliance with ICAO Standards and Recommended Practices (SARPs) which in turn have enhanced our National Aviation Security of the Kenyan airspace. This award gives us the impetus to do more,” Kibe said.

The awards, established by the ICAO Council in support of its ongoing No Country Left Behind initiative, were developed to recognise and encourage states’ commitment and progress in making the aviation global network safer and secure.

The implementation of SARPs is considered a fundamental prerequisite for establishing air transport’s rapid global connectivity, and in turn the realise socio-economic benefits for each nation.

 

Our Source: https://www.the-star.co.ke/business/2019-10-11-kenya-feted-for-enhancing-security-in-aviation-industry/

Qatar Airways is set to increase its flights between Mombasa and Doha in December, stepping up competition for struggling national carrier Kenya Airways.

The Middle East carrier, which operates three daily flights to Nairobi’s Jomo Kenyatta International Airport, said they would be flying to Mombasa five times a week, up from four. The additional flight will run from December 20 to March 27.

“The increase in frequency will allow passengers to enjoy the wonders that this coastal city has to offer, and locals will have more opportunities to enjoy Qatar Airways’ extensive global network of more than 160 destinations,” said group Chief Executive Akbar Al Baker in a statement yesterday.

The airline would deploy Airbus A320 on the Mombasa route for the additional flight. The aircraft has 12 business class seats and 120 seats in economy class. The additional flight on Fridays will depart Doha at 02:30hrs to arrive in Mombasa at 08:40hrs and leave Mombasa at 16:50hrs to arrive in Doha at 23:05hrs.

“This increase allows for further growth, and strengthens the bonds between the State of Qatar and Kenya,” said Mr Al Baker.

Our Source: https://www.nation.co.ke/business/Qatar-Airways-increases-Mombasa/996-5315532-69bhd3/index.html

South Africa’s embattled state-owned airline is open to outside investment and in talks with a number of potential partners, President Cyril Ramaphosa said on Monday.

The economy of the African continent’s most industrialized nation has come under ever growing pressure as the government grapples with lacklustre growth, high unemployment and a heavy debt burden, especially from state-owned enterprises such as South African Airways (SAA) and power firm Eskom.

“South African Airways is one of those state-owned enterprises that has relied on lots of state bailouts,” Ramaphosa told the FT Africa conference in London.

“We are on record as saying we are open to the participation of the private sector. As we speak now, we’re talking to a few interested parties when it comes to SAA.”

In September, the cash-strapped national airline said a government cash injection of 5.5 billion rand ($372 million) had been approved for the 2019/20 financial year but that it still needed more money.

Ramaphosa also said his government realized it had to pursue prudent fiscal policies in order to grow the economy, create jobs and attract investment.

“At a time when our fiscus is under great pressure, we are committed to ensuring debt sustainability, improving the composition of spending and reducing risks arising from contingent liabilities, especially of our state-owned enterprises.”

The government is due to publish a number of key papers and decisions in the coming days: a special paper laying out how to rescue Eskom and who will be the utility’s new chief executive as well as the country’s long-term energy plan, the so-called the Integrated Resource Plan (IRP).

Asked if he thought the government was doing enough to maintain its investment grade rating with Moody’s, Ramaphosa said he expected “Moody’s and others will be very happy.”

Moody’s is the last of the top three ratings firms to still rank Pretoria’s debt at investment grade – Baa3 with a stable outlook – and has not made a widely expected downgrade.

Our source: https://www.reuters.com/article/us-safrica-economy-privatisation/south-african-airways-in-talks-with-potential-partners-idUSKBN1WT159