AIRLINE CODESHARES: AN INSIDER’S GUIDE

Codeshares are perhaps the most confusing customer facing part of any passenger’s journey. You turn up at the airport, look for your check-in desk or gate number and cannot see your flight on the departure screens. You see a flight to your destination, with the right time, but not with your flight number – are you confused, is that your flight in disguise, is there somebody you can ask to check? Welcome to the world of airline codeshares!

WHAT ARE AIRLINE CODESHARES?

A great question and one that we have explained to people every year since they began to emerge in our databases in 1986. In those days airlines wanted to expand their networks with limited risk but in many cases were restricted as to where they could fly to and from.

Some airlines created a workaround, a codeshare where they placed their code and a flight number on a flight operated by another airline with whom they had a commercial relationship. A great way to virtually expand your own operational network, generate more sales and tell customers that you could sell them a ticket to nearly anywhere in the world, even if not on your own plane.

Since then, airlines have fallen in love with the idea of codeshares and today they are commonplace in every market – but how do they work, and what are the benefits?

HOW DO AIRLINE CODESHARES WORK?

In the aviation data world, we refer to the ‘operating carrier’ and ‘marketing carrier’. The operating carrier is the airline that flies the plane, supplies the cabin crew etc, and the marketing carrier is the carrier that sells tickets for the flight.

WHY DO CODESHARES EXIST?

An airline recognizes there is demand from their market to fly to a destination, but the airline does not operate flights to that destination (or at least not with enough frequency).

THE CODESHARE SOLUTION:

The airline knows a friend – another airline – that can connect and take passengers from a point the airline already flies to and take them to their final destination.

This allows the operating airline to keep most of the revenue from that ticket sale whilst “feeding traffic” to the friend. And hopefully that friendly airline, which may be in the same airline alliance, can feed them some traffic in the other direction, essentially scratching each other’s backs. Everyone wins – the airlines have an opportunity for more traffic and more revenue, and they create a superior travel experience with a seamless passenger journey.

For this to happen the operating carrier sends their schedules to the marketing carrier. The marketing carrier puts their flight number on the service and distributes that operating carrier’s service with their own flight number. Suddenly BA173 from LHR to JFK becomes AY5473 – it is a British Airways service, but one on which Finnair sells seats as a codeshare.

To be at their most effective, airlines try to offer similar pricing on the flights. However, just occasionally you can grab a bargain from a codeshare airline whose fares have not quite synchronized with the operating carrier’s latest pricing. With demand changing by the minute this isn’t a surprise, but it can be an opportunity for the clever traveler to save some cash. If you’ve saved US$200 do you really care if your Lufthansa ticket has an Austrian Airlines flight number?

MAXIMUM DISTRIBUTION, MAXIMUM NETWORK, MINIMAL INVESTMENT

The busy network map below shows all the US domestic routes on which Iberia, Spain’s largest airline, has codeshares operated by a Oneworld Alliance partner airline.

If you didn’t know otherwise it looks like Iberia operate across the whole of the United States. However, all these flights are actually operated by American Airlines, with an Iberia flight number on the service. This allows Iberia to sell a flight from Madrid to Houston, for example, with a direct flight to Miami and then a connection onto IB4945 – a perfect way to look bigger than you really are, loved by airline PR teams around the world!

CODESHARES KEEP YOUR FRIENDS CLOSE AND YOUR ENEMIES EVEN CLOSER

While we might expect airlines to operate codeshares within airline alliances, many airlines also have codeshares with airlines that are not in their alliance or – even worse still  – in another alliance!

SO WHY DO THEY DO THIS?

Well, in some cases it’s because there are only two very large airlines in the domestic market. Australia is a great example – if you don’t fly with the Qantas Group airlines then the only real option is Virgin Australia, and Virgin Australia know this! They literally have hundreds of daily codeshares with airlines such as Qatar Airways (Oneworld Alliance), and Singapore Airlines (Star Alliance). Perrhaps illogically, Qantas also have codeshares with Air New Zealand, another Star Alliance member. It may seem odd, but for the traveler it allows the maximum choice of service, which has to be a good thing.

But is there more to it than just flights?

CODESHARES ARE EVERYWHERE

Codeshares exist in every market and indeed even stretch beyond airlines to include train services and more recently some coach services, although they are far more niche in nature. In theory, there is no limit to the number of codeshare partners that an airline may have, although keeping track of them all and undertaking all the work required to keep agreements provides some focus to which airlines partner up. And of course, every small airline wants to have a codeshare with a global airline and sometimes that desire isn’t reciprocated by the larger airlines; they can be fussy!

To highlight just how many codeshare partners airlines have, we listed some of the larger airlines and their codeshare partners, with Air France/KLM managing over 40 such relationships which, whilst creating a lot of work, presumably generates significant revenues.

HOW ARE THE SEATS DIVIDED ON A CODESHARE FLIGHT?

When an operating air carrier decides to allow seats and space to be sold by other, marketing carriers, there are two types of commercial duplications; ‘free sale agreements’ and ‘leased block space’.

Free Sale Agreement – The operating and marketing carriers continue to sell seats until the flight is fully booked, there are no limitations on how many seats the marketing carrier can sell.

Leased Block Space – The operating carrier allocates a fixed number of seats to the marketing carrier/s.

AIRLINE LOYALTY AND CODESHARES

If you know a regular traveler then they will have a good idea of their status level and points balance with their favorite airline, and in most cases those people treasure that status. In many codeshare situations the operating airline will allow the marketing carrier’s passengers to earn points and will offer them the same access to lounges that they would expect to have when flying with their preferred airline. The ability to earn – and in some cases burn – points is crucial, and airlines recognize this important factor – making sure that the passenger’s points are recorded by the marketing airline as quickly as possible. Seamless services, through check-in, lounge access, priority boarding and seat assignment are the softer elements of codeshare operations, but make all the difference.

THE CHALLENGES OF CREATING SEAMLESS CODESHARES

Although codeshares have many benefits, they do come with their own challenges, too.

When codeshares are on sale it’s crucial that the schedules are the same from both the operating and marketing carrier, otherwise passengers could misconnect, at both a reputational cost to the airline and a financial one. Synchronizing those codeshare flights is a constant challenge for airlines, and when the operating airline makes a schedule change, keeping up to date with the changes can be a full-time job for the marketing airlines.

Managing all these codeshares is a complex process that involves multiple data types used in conjunction. Marketing airlines need access to the latest schedule information from the operating airlines to help keep their customers up to date on changes to flight time, equipment type or cancellations. They also need to refer to Minimum Connection Time information to build viable connections and help avoid the risk of costly missed connections.

Additionally, when you consider that the slightest of changes to an industry code can impact the integrity of any related flight information, or introduce the complexity of – for example – navigating daylight saving times in different time zones, the importance of a single source of truth is revealed.

It’s not just the data itself that needs to be up to date. Legacy systems can be clunky to integrate, with data siloed into different areas. What’s more, with the possibility of receiving schedule changes by the minute, older systems may not be capable of handling the high volume, real-time data now available.

To address this, airlines are looking to cloud-based solutions, which offer ease of integration and more agility, bringing together different data sets that can be refreshed quickly and without causing a system meltdown. OAG has helped many airlines migrate to the cloud environment of Flight Info Direct, powered by Snowflake. 

Below we look in more detail at the challenges involved in successful codesharing, and how they may be solved.

OPERATIONAL CO-ORDINATION

Synchronizing flight schedules and status updates across two different carriers can be complex. OAG processes hundreds of thousands of schedule changes per day, so it can be challenging for airlines to keep up with all the changes if they don’t have an alerting solution in place like Flight Info Alerts.

When submitting their flight schedules, Airlines provide a DEI (Data Element Identifier) to ensure that systems can read their updated flight schedules.

There are two types of DEIs that are submitted with flight schedules:

DEI 010 – Is used on the operating flight leg. This identifies all the commercial duplicate airline designators (operating and marketing carriers) and flight numbers.

DEI 050 – This data field is loaded on the commercial duplicate carrier field. This identifies the operating airline and the flight number. MCTs (Minimum Connection Times) have been built in a way that codeshare marketing carriers submitting the DEI 050 on their flights do not need to file MCTs at all if they are happy with their operator’s filed MCTs. This makes it easier for marketing carriers to maintain their files and reduce the number of MCTs required.

IT & SYSTEMS INTEGRATION

Integrating different reservation systems is crucial for a seamless booking and traveler process. Disrepencies can result in booking errors or cause inconvenience for passengers. In addition to this, ensuring secure and efficient data sharing between airlines’ systems is essential for consistent passenger information, flight status and operational details.

BAGGAGE MANAGEMENT

Ensuring that baggage is efficiently transferred between different carriers, especially during tight connections, can pose significant challenges. That’s why many airports and airport service providers such as baggage management companies use Flight Status Data from OAG to receive up-to-the-minute flight information for all airlines.

Syncronized data in the cloud is breaking down barriers for codeshare flights, allowing carriers to utilize and share their data with one another to create a seamless experience for the passenger. High quality schedules data that’s updated every 15 minutes helps both operating and marketing carriers stay in the know. In addition to this, cloud data platforms like OAG’s Flight Info Direct can handle volumes of data at speed and scale compared to legacy systems.

THE FUTURE: LOW-COST AND LEGACY CODESHARE AGREEMENTS

Codeshares started to appear in 1986 and they are not going to disappear. Some of the archaic regulations around airline ownership mean that the only way for airlines to offer customers what they want – and of course to generate more revenues – is to offer codeshare services. Indeed, even some of the world’s largest low-cost airlines are working on codeshare agreements with legacy airlines to expand their networks and attract more passengers.

JetBlue in the United States may have started as a low-cost airline but have emerged as a formidable codeshare partner for many international airlines operating to the US. We’ve mentioned the Virgin Australia situation and in its own way even easyJet have a codeshare product with their virtual interlining service, with both low-cost carriers such as Norse Airways and legacy airlines including Emirates.

With little changing in the regulatory world of airline services, the chances are that at some point many of us will travel on a codeshare flight in a seamless and painless way, perhaps not even realizing what has happened. A few of us may panic when we don’t immediately see our flight on the departure screen but if you are patient as the screen changes your flight will appear, as if by magic!

Source: OAG.  

Uganda Airlines Launches Direct London Flights

Uganda Airlines is gearing up to launch direct flights to London, significantly boosting connectivity between Uganda and the UK. This exciting development promises to enhance economic, cultural, and social ties between the two nations.

The announcement follows a series of strategic meetings held in London by a delegation led by Uganda Airlines CEO, Ms. Jenifer Bamuturaki. From June 11th to 15th, 2024, the team met with UK aviation authorities, business communities, and the Ugandan diaspora in preparation for the highly anticipated launch.

Securing coveted landing and departure slots at London Heathrow Airport marks a major milestone for Uganda Airlines. This achievement follows the acquisition of two Airbus A330-800 Neo aircraft in 2020 and 2021, specifically to service this route. While the wait for the inaugural flight continues, it’s attributed to finalizing certification processes with the UKCAA and EASA.

The demand for a direct Entebbe-London route is undeniable. In 2019 alone, over 84,000 passengers flew between these two cities, making Entebbe the second-largest unserved African market for London flights. This high volume underscores the potential success of the new route.

This expansion into the European market aligns with Uganda Airlines’ broader strategy for international growth. Just last year, the airline launched direct flights to Mumbai, India, and several destinations in West Africa. The London route will be their 13th destination and a significant step towards positioning Uganda Airlines as a major player in African aviation.

The benefits of this new route extend far beyond convenience for Ugandan travelers. It’s expected to attract tourists and business travelers, injecting a much-needed boost to Uganda’s tourism and economic sectors.

As Uganda Airlines prepares for this historic launch, anticipation is high. Direct flights between Entebbe and London promise a new era of connectivity, opening doors to a wealth of opportunities for travelers. With continued expansion and a commitment to excellence, the future of Ugandan aviation appears to be soaring.

Source: Nile Post.

Kenya backs to UN tourism growth agenda

In Summary

•Kenya was elected to chair the UN Tourism’s Committee on Tourism Competitiveness until 2027 earlier this year, after defeating strong bids from Thailand and Malta.

•UN Tourism Secretary General Zurab Pololikashvili has called for more cooperation within the regions, including joint meetings.

Kenya has committed to supporting the UN Tourism’s growth and sustainability agenda aimed at promoting tourism as a leading economic activity. Tourism is the world’s fifth export earning category as of the close of 2022.

The 121st session of the UN Tourism Executive Council was held in Barcelona, Spain, and chaired by Saudi Arabia Minister for Tourism, Ahmed Al Khateeb.

Kenya called for enhanced collaboration and resource mobilization to strengthen the organization, amidst the global economic strains.

“Global tourism is recovering fully from the effects of the pandemic and many destinations are getting past the mark of the pre – Covid era. The world is alive to the gains of the tourism sector and Kenya is aligned to tap in other global trends” Tourism and Wildlife Cabinet Secretary Alfred Mutua, who sent a delegation to Barcelona, said.

He said Kenya is committed to working closely with the UN Tourism and member states, to ensure tourism continues to be a key economic driver.

Mutua urged member states to explore innovative ways to raise funds and partner with other UN agencies such as the UN-Habitat and the private sector.

He said Kenya would leverage on the various programmes of UN Tourism in various areas including capacity building, community-based tourism, artificial intelligence, innovation, education, product promotion among others.

The CS further highlighted the need to regularize the election cycle and address non-compliance of membership fees as key to providing predictable budgeting and financing, that allows the UN Tourism to effectively execute its core functions of supporting regional workshops and initiatives.

As chair of the Committee on Tourism and Competitiveness until 2027, Kenya aims to steer other members into leveraging global data, research, case studies and partnerships to enhance global policies, as well as its own tourism policies and strategies.

The country also seeks to ensure the interests and needs of African and developing countries are represented amidst the voices of more established tourism markets on the global stage.

Kenya was elected to chair the UN Tourism’s Committee on Tourism Competitiveness until 2027 earlier this year, after two rounds of voting, defeating strong bids from Thailand and Malta.

UN Tourism Secretary General Zurab Pololikashvili made a call for more cooperation within the regions, including joint meetings.

The Americas and Africa will meet in 2024 and Kenya will be part of the Africa talks slated for July 2024 in Zambia.

Source:  The-star.  

Kenya optimistic to receive increase of Chinese tourists

The number of Chinese tourists bounding for Kenya may triple over the next few years, following a surge in arrivals to the East African country last year, according to the tourism authority in Kenya.

Kenya’s tourism sector, a pillar industry, sees a huge opportunity in the Chinese market, and the country will intensify cooperation with industry players in China to tap the potential, June Chepkemei, the chief executive officer of the Kenya Tourism Board, said on Wednesday.

Tourism arrivals from China last year exceeded 52,000, a 161 percent growth compared with 2022, she said.

“China was the most improved tourism source market in 2023. Majority of the tourists come for leisure holidays followed by business and conferences,” she said at a tourism promotion event in Kenya’s capital Nairobi, which was held in collaboration with the Chinese city of Zhengzhou.

“Kenya Tourism Board is keen to collaborate with many stakeholders like media, governmental bodies, private sector partners like China based tour operators, online travel agencies, corporates and airlines to market Kenya,” Chepkemei said, adding that Kenya sees a huge opportunity in large number of Chinese outbound tourism and aims to attract 150,000 tourists annually.

Chinese tourists restarted to travel overseas in January last year, with the lifting of overseas travel restrictions by the government. Outbound travel from China was largely halted for three years, to prevent transmission of the virus, since the start of the COVID-19 pandemic.

Kenya, she said is the home of human origin hence people from across the globe are welcome to visit the east African country, to experience the thrill of adventure, enjoy authentic cultural immersive experiences and view teeming and diverse wildlife.

This is in addition to enjoying pristine beaches with warm waters, welcoming and hospitable Kenyans as well as enjoy Nairobi – the best city to visit in year 2024 according to Lonely Planet.

On Wednesday, the Kenya Tourism Board expressed an intention to partner with Zhengzhou Radio and Television station to market Kenya as a tourist destination to Chinese.

“Media plays a very key role in amplifying destination marketing. We are keen to leverage Kenya’s and China’s vibrant media landscapes to keep the tourism narratives alive, telling experiential stories to inspire travel,” Chepkemei said.

She said Kenya Tourism Board is happy to share video content of Kenya’s tourism experiences with Zhengzhou Radio and Television Station. The content will showcase Kenya to Chinese people, aimed at sparking or keeping alive the interest and desire to visit MagicalKenya, an all year-round destination.

To further woo Chinese travelers to Kenya, on May 10, the Kenya Tourism Board in partnership with the Hunan Provincial Department of Culture and Tourism, launched China-Kenya Tourism Service Platform, aimed at linking Chinese travelers with the Kenyan tourism market.

Towards the end of last year, the board also held roadshows in Beijing, Shanghai and Guangzhou to market Kenya as a year-round destination among Chinese tourists. ‘

The shows involved business-to-business sessions between travel trade officials from Kenya and tour operators from China.

The Kenyan tour operators got an opportunity to reconnect with their counterparts in China and got clear understanding of the tourists’ interests and preferences.

Source: China Daily.

Kenya Airways Enhances African Connectivity with New Maputo Flights

Kenya Airways resumed its direct flights between Nairobi and Maputo, offering three weekly flights on Wednesdays, Fridays, and Sundays. This relaunch provides a convenient travel option for passengers originating from Kenya and serves as a vital connection point for travelers from other African cities via Nairobi.

The expansion will allow Kenya Airways to improve intra-Africa connectivity, which is crucial for driving economic growth, enhancing trading opportunities, and expanding businesses across local and intercontinental economies. This new route supplements KQ’s current service to Nampula, Mozambique, strengthening its regional footprint.

“Today’s launch is a tangible testament to KQ’s remarkable progress and the exciting future ahead. As we unveil our 45th destination -Maputo – we mark a major milestone in our network expansion journey,” says the Group Managing Director and Chief Executive Officer, Mr Allan Kilavuka.

In addition to Maputo, this expansion aligns with Kenya Airways’ broader network strategy for 2024, which includes more frequent flights to popular destinations such as New York, Paris, Lagos, Accra, and Freetown.

“Aviation is critical to boosting national GDPs by creating jobs and fostering economic activity. The increased intra-African travel will act as a catalyst for economic development across the continent. Our passion lies in fostering connections across the continent, making trade and travel between our nations more accessible than ever before,” Allan Kilavuka further added.

Speaking at the same event, Julius Thairu, Kenya Airways Chief Commercial and Customer Officer, noted that KQ’s expansion is linked to KQ’s mission of propelling Africa’s prosperity by connecting its people, markets and cultures. “The demand for air travel is soaring, and we’re determined to meet it by expanding our reach and fostering connections between Africa’s rich cultures and thriving economies. Adding Maputo to our network strengthens ties between Kenya and Mozambique, opening doors for increased trade, tourism, and cultural exchange.” he said.

Maputo, besides being a major trade hub for southern Africa, captivates visitors with its blend of history and culture. Portuguese colonial influences are visible in its architecture, while lively markets and a thriving art scene showcase contemporary Mozambican life. Whether you’re looking for relaxation on pristine beaches or exploration in museums, Maputo offers an unforgettable experience.

The three weekly scheduled flights are as follows:

RouteDayFlight No.Departure TimeArrival Time
Nairobi to MaputoWed, Fri, SunKQ7400950hrs (local)1300hrs (local)
Maputo to NairobiWed, Fri, SunKQ7411350hrs (local)1845hrs (local)

Source Travel and Tourworld.

Ethiopian Cargo and Liege Airport Celebrate 17 Years Partnership

Ethiopian Cargo and Logistics Services and Liege Airport, the Ethiopian cargo hub in Europe, have celebrated 17 years of successful partnership. The two organizations reaffirmed their commitment to boost freighter operations and strengthen the strategic alliance that has played a significant role in connecting Europe to Africa and beyond.

Over the past 17 years, Ethiopian Cargo has played a significant role in positioning Liege Airport as a leading cargo hub in Europe. In 2023, Ethiopian uplifted approximately 160,000 tons of cargo from Liege, facilitating efficient and reliable transportation of goods between Europe, Africa, and the rest of the world.

Celebrating the estimable partnership, Ethiopian Airlines Group CEO, Mr. Mesfin Tasew said, “This partnership has been instrumental in Ethiopian Cargo’s success as one of a global leader in the air cargo industry. Liege Airport provides us with a strategic location and world-class infrastructure, enabling us to offer our customers seamless and efficient cargo solutions. We are grateful to the management of Liege airport and our stakeholders for the unwavering support we have been receiving for the 17 years.”

Laurent Jossart, CEO Liege Airport, expressed his pleasure saying, “We are delighted with our long-term partnership with Ethiopian Cargo. Ethiopian is a magnificent success story and continues to grow here. The company links different continents (Africa, Asia, Europe, North and South America, Middle East) with a fleet of state-of-the-art aircraft. Their Boeing 777s have an average age of 7 years and are among the most efficient aircraft in terms of noise and environmental performance. We are honored by Ethiopian’s confidence in Liege Airport, and we will always be at their side to help them in their development.”

The partnership between Ethiopian Cargo and Liege Airport has been mutually beneficial, contributing to the growth and development of both organizations. Ethiopian Cargo’s extensive network and operational capabilities, combined with Liege Airport’s modern infrastructure and efficient processes, have resulted in a highly effective and reliable cargo hub.

Ethiopian Cargo and Logistics Services has proudly operated cargo flights to and from Liege Airport since 2007. With a vigorous schedule, Ethiopian operates approximately six freighter flights each day to Liege from its hub Addis Ababa and other origins operating with B777-200F and B767-300F.

Ethiopian Cargo’s extensive network spans over 135 international destinations across Africa, the Middle East, Asia, Europe, and the Americas. The company’s commitment to expansion continues. As of May 2024, Ethiopian Cargo added Hyderabad and Ahmedabad from India to its fast-growing cargo network, bringing its total dedicated freighter destinations to 70. Furthermore, Ethiopian Cargo and Logistics Services envisions operating 90 dedicated freighter destinations by 2035, supported by a fleet of 37 dedicated freighters, solidifying its position as one of a global leader in the air cargo industry.

Source: Corporate Ethiopian Airlines.

Dubai Tourism signs deal to ease payments

The Department of Tourism & Commerce Marketing (Dubai Tourism) and Al Ansari Exchange have signed an agreement to facilitate payments for a range of tourism and travel-related services.

Under the agreement, partners of Dubai Tourism, including hotels, event organisers, tour operators and tourism companies, will be able to make payments for services through 183 branches of Al Ansari Exchange across the UAE.

The agreement was signed by Ahmed Khalifa Alfalasi, CEO of corporate services and investments, Dubai Tourism, and Rashed Ali Al Ansari, general manager of Al Ansari Exchange.

Alfalasi said: “The partnership will take our payment system to the next level of reliability and convenience. This agreement means that our partners no longer need to visit Dubai Tourism offices to make payments.”

Al Ansari said: “We are pleased to collaborate with Dubai Tourism to enable customers to pay the travel and tourism services fees through our wide branch network across the UAE. Under this agreement, all companies, organisations and individuals working in the travel and tourism sector are able now to make payments with ease and convenience.”

Source: Khaleej Times.

MICE industry has bounced back

South Africa’s MICE industry has bounced back from the effects of the COVID-19 pandemic, according to Gary Koetser, CEO of Century City Conference Centre and Hotels in Cape Town.

In an interview with Tourism Update, Koetser said the MICE industry “took a hell of a knock during COVID”, and that there was much talk at the time that conferencing would never be the same again.

However, in retrospect, there were many positives for MICE that came out of COVID, Koetser believes.

One of these positives was that people realised the critical need for in-person meetings and interactions.

‘Doing unbelievably well’

Koetser said that, in fact, the MICE industry was doing unbelievably well, and he provided the following stats from Century City to prove his point:

Average size of conferences has increased by 26% in Q1 of 2024 compared with Q1 of 2023.

Revenues have grown by 24% in the Conference Centre when comparing Q1 of 2024 with Q1 of 2023.

Delegates attending conferences have a longer length of stay. The average length of stay from conference delegates is 15% longer than other market segments such as traditional corporate and leisure guests. They stay for the conference and then have either added on days to their itinerary for other meetings or leisure.

11 International conferences are already secured for the next 12 months compared with six in the previous year. These conferences will bring over 6 000 delegates to Century City and amount to approximately R40 million (€2m) in revenue for the local economy.

Booking pace is up 15% this year compared with last year for the next six months (July-December), and forecasted to be 21% up on revenue compared with the same period last year.

R15 million (€758 660) investment into a new venue, The Verve, and refurbishment of the Conference Centre, which commenced in July 2023 and was fully completed in March 2024.

“Some hotels can host up to 300 delegates, maybe 350 at a push, and then the Cape Town International Convention Centre can accommodate the larger conferences from 1 500 delegates upwards. Therefore our Conference Centre was purpose-built for conferences between 350 and 1 200 delegates,” said Koetser.

He added that the Conference Centre was driving occupancy into the six or seven surrounding hotels, which are all within walking distance of the Conference Centre as well as foot traffic into the numerous restaurants in the area. Shopping at the neighbouring shopping centre Canal Walk was also very popular with conference attendees.

‘Confercation

Koetser said Century City had coined a new phrase – ‘confercation’ – (conferencing with vacation), similar to the ‘bleisure’ trend, and that it seemed to be increasingly popular.

“We’re also seeing an increase in, and it is something that we are promoting, bringing your partner with you when you come to Cape Town for a conference. And this is something we’ll be promoting soon, partners staying for free when traveling with their spouse to a conference.”

He also said that Century City was seeing a longer average length of stay for delegates conferencing at the Centre due to Cape Town being an attractive city for both business and leisure.

SME involvement

Century City Conference Centre is currently busy with numerous initiatives to involve SMEs in the MICE sector.

“We’re creating an art gallery within our Centre, all comprising young, up-and-coming previously disadvantaged artists to showcase their various pieces of art. There’s a story of them as the artist and their background, and then a story about the actual piece of art that they are displaying.”

Century City Conference Centre has also approached other SMEs to showcase their products at the property. For example, the women in the townships who are making beaded bangles and bags.

“We’re going to give them space in the Conference Centre, almost creating a ‘mini arts and craft market’ where conference attendees can go and buy from these small entrepreneurs that are making unbelievable products from recycled materials,” said Koetser.

Its food and menus also add to the African experience in the Centre, such as a Bo-Kaap Cape Malay-type menu or a traditional South African braai menu.

‘Share sustainability ideas’

Koetser highlighted that, in addition to large corporations and associations asking for Broad-Based Black Economic Empowerment scorecards or safety and security measures before they could do business, they are now also asking to see data from a sustainability point of view.

“We’ve partnered with a company that provides software to measure our sustainability efforts so that we can hold ourselves accountable in terms of showing impact month-on-month, year-on-year”.

“We also make sure that we use the right suppliers that use sustainable materials and that our solar panels are working optimally. A significant contributor to our sustainability efforts is the dual plumbing system throughout our Conference Centre and Hotels. This allows the use of effluent water for toilet flushing, irrigation and potable water for taps and showers.”

He added that there is pressure on the MICE industry to improve its sustainability initiatives and that many corporations shouldn’t use it as a competitive advantage but rather share ideas and initiatives which will benefit the industry as a whole in the future.

“I think the catchphrase for sustainability going forward is going to be accountability, but also transparency,” Koetser concluded.

Source: Tourism Update.

AI Revolutionizes Baggage Handling Efficiency Amid Air Travel Surge

Despite a surge in passenger traffic, the air transport industry improves baggage handling efficiency, with mishandled baggage rates decreasing, aided by AI and data analysis technologies.

SITA, air transport technology solutions, reports an improvement in baggage handling efficiency despite increased passenger traffic. According to the SITA Baggage IT Insights 2024 report, mishandled baggage rates decreased from 7.6 to 6.9 per 1,000 passengers in 2023, even as passenger numbers surged to 5.2 billion, surpassing pre-pandemic levels.

Key technological advancements, particularly in AI for data analysis and computer vision in automated baggage handling, have contributed significantly to this improvement. The report notes a 63% decline in mishandled baggage from 2007 to 2023, despite a 111% increase in passenger numbers.

The air transport industry continues to face challenges, especially with rising baggage volumes. The push for digitalization, including full automation, effective communication, and comprehensive visibility of each bag’s journey, is crucial. The survey highlights the importance of self-service technologies, with 85% of airports and two-thirds of airlines now offering self-service bag drop options.

Collaboration remains essential, with SITA emphasizing the need for better data sharing between airlines and airports. Currently, only 58% of airlines share baggage collection data, while 66% of airports share delivery data with airlines. The International Air Transport Association (IATA) and Airports Council International (ACI) advocate for full baggage tracking and real-time status updates to enhance passenger experience and reduce anxiety.

David Lavorel, CEO of SITA, emphasized the importance of these technological advancements: “The improved mishandled baggage rate is encouraging, especially with the increase in global passenger traffic. Investments in AI and computer vision technologies, along with better collaboration and communication, are essential for smoother operations and better passenger experiences.”

Regional Insights

North America: The baggage mishandling rate dropped from 7.1 per 1,000 bags in 2007 to 5.8 in 2023, with U.S. airlines reducing mishandling by 9% in 2023.

Europe: The region saw the largest global decrease, from 16.6 per 1,000 bags in 2007 to 10.6 in 2023.

Asia Pacific: Maintained the lowest mishandling rates globally, at 3.0 per 1,000 bags in 2023, reflecting successful digitalization investments.

Source: Data Q

EAC renews joint tourism marketing as Kenya taps influencers

East Africa has revived plans to jointly market the region’s tourism as a bloc, in what could end a decade-long of back and forth among member states, as rivalry played out.

The marketing push builds on the 2023 East African Regional Tourism Expo (EARTE) and the Magical Kenya Tourism Expo (MKTE), where EAC member states agreed to enhance collaboration and adopt an integrated tourism marketing strategy, in order to boost competitiveness, attract more tourists and increase earnings.

Kenya, Uganda and Rwanda are leading the drive under a new EAC brand “Visit East Africa – Feel the Vibe”, launched in November during the regional expo in Nairobi, aimed at promoting the bloc as a single investment and travel hub.

The latest development come even as rivalry remains between Kenya and Tanzania, the biggest safari and beach destinations in the region.

The two countries share the annual wildebeest migration between the Maasai Mara National Reserve and the Serengeti National Park, recognised as one of the Seven Wonders of the Natural World.

Tanzania has been taking advantage of Kenya’s costly products, mainly safari which includes high park entry fees and accommodation packages, to lure international guests to the Serengeti and other destinations.

This, even as the region faces stiff competition from other blocs in Sub-Sahara Africa, which are said to be taking advantage of EAC’s lengthy business procedures, insecurity and poor infrastructure to boost their competitive edge.

According to the World Economic Forum, Kenya, Uganda, Rwanda, Tanzania and Burundi have been trailing tourism giants such as Seychelles, Mauritius and South Africa, which have been a threat to EAC’s plans to position the region as the continent’s most attractive tourist destination, an idea mooted a decade ago.

Under the renewed marketing efforts, the EAC is now targeting to attract over 14 million international tourists annually by 2025, from 7.2 million in 2019.

Kenya, on its part, aims to capitalise on this collective momentum in its quest to achieve 5.5 million arrivals and $6.3 billion (Sh 827.6 billion) in tourism earnings by 2028.

The Kenya Tourism Board (KTB) has launched a strategic marketing campaign that involves influencers, to bolster Kenya’s tourism not only globally, but also within the East African Community market.

The board is partnering with renowned social media influencers and key media outlets from EAC member countries with an aim to elevate destination visibility, ignite travel interests and unearth new growth prospects.

Speaking during an event held to welcome the influencers and media contingent, KTB CEO June Chepkemei said that the EAC market has great potential for growth especially through regional integration.

She added that strategic deployment of marketing assets such as influencer marketing and media outreach can be pivotal drivers to spur demand and unlock new markets.

“The East African Regional Tourism Expo deliberations were a stepping stone to greater regional integration. The launch of the unified EAC tourism brand was an apt embodiment of this vision, and this influencer activation and media outreach is designed to further harness our collective strength for mutual benefit,” Chepkemei said.

According to last year’s tourism performance report, four of the top ten source markets to Kenya were from the EAC region – Uganda, Tanzania, Somalia, and Rwanda,  highlighting the potential for growth.

 “With a shared history and cultures, the EAC region is uniquely positioned to offer diverse, multi-country itineraries that capture the imagination of travellers,” said Chepkemei.

Popular social media personalities and content creators from target EAC markets will highlight key attractions across various tourism hotspots spanning from Nairobi, Mt. Kenya, the Maasai Mara, Amboseli, Lake Naivasha, Lake Nakuru as well as the Coast.

East African Business Council (EABC) has been pushing for the marketing of the region as a single destination, as the African Continental Free Trade Area (AfCTA) takes shape.

Tourism, financial sector, manufacturing and hospitality are some of the sectors that EAC member states can package together to the world, according to Chairperson Angelina Ngalula.

“East African countries have abundant resources with unique features from the coast of the Indian Ocean in Kenya and Tanzania, to mountain gorillas in Rwanda, an opportunity for companies to offer regional tourism packages,” Ngalula said.

Source: The Star.