Press Release -Kenya Airways Posts First Half-Year Profit of Kshs 513 million.

August 19, 2024

Kenya Airways PLC has announced a significant milestone in its journey towards profitability, marking the first time the airline has reported a profit after tax since 2013.

For the first half of the financial year ending June 30, 2024, the airline achieved a profit after tax of Kshs 513 million, from the Kshs 21.7 billion loss reported in the similar previous period.

The airline attributes the growth to its strategic turnaround plan, Project Kifaru, which emphasises customer obsession, operational excellence, financial discipline, innovation, and sustainability. 

“The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff,” said Kenya Airways Chairman, Michael Joseph.

He added: “This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”

Operating and Financial Highlights:

Passenger Growth: Kenya Airways experienced a 10% increase in passenger numbers, totaling 2.54 million.

Capacity Expansion: The airline’s capacity, measured in Available Seat Kilometers (ASKs), increased by 16% to 7.991 billion ASKs, while Revenue Passenger Kilometers (RPKs) improved by 14%.

Revenue Surge: The airline’s total revenue grew by 22% to Kshs 91 billion, driven by higher passenger numbers.

Cost Management: Despite the expansion, operating costs rose by 22%, aligning with the growth in capacity. However, overheads were reduced by 22%, reflecting Kenya Airways’ continued commitment to cost management and operational efficiency.

Profitability: The airline’s profit after tax saw a remarkable 102% improvement, highlighting the success of the ongoing recovery strategy.

Joseph said the airline remains focused on completing its capital restructuring plan to reduce financial leverage and enhance liquidity, thus ensuring a strong foundation for long-term growth and stability. 

“Kenya Airways is committed to maintaining this positive momentum, building on the success of the first half of 2024 as we continue to strive for excellence in the aviation industry,” concluded Joseph.

Commenting on the improved financial performance, Allan Kilavuka, CEO of Kenya Airways, welcomed the positive performance ad observed, “Our financial results are a clear indication that our strategic initiatives are delivering the desired outcomes. We have focused on strengthening our core operations, enhancing our customer service, and exploring new avenues for growth. This performance positions us in good stead to navigate the challenges of the aviation industry and prepare for future growth.”

As Kenya Airways continues to implement its strategic priorities, Kilavuka remained optimistic that the airlines’ commitment and dedication to driving sustainable growth, creating value for stakeholders, and delivering world-class service to its customers is already yielding desired results.

“Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline,” said Kilavuka.

Source: Corporate Kenya Airways.

INTRODUCING THE ASANTE LOUNGE, DESIGNED FOR RELAXATION AND COMFORT

Press Release- Ethiopian Airlines Signs a Contract with Dar Al-Handasah to Develop a Mega Airport City

Addis Ababa, 12 August 2024

Ethiopian Airlines Group, Africa’s leading airline, has signed a technical advisory and consultancy contract with Dar Al-Handasah Consultants (Shair and Partners), a partner with the world-renowned signature architects Zaha Hadid Architects, to embark on the design and supervision of a Mega Airport City at Abusera in Bishoftu city.

This state-of-the-art airport city, located just 40km from Addis Ababa Bole International Airport, is poised to revolutionize air travel in Ethiopia. Upon completion, the new airport is projected to have the capacity to serve 110 million passengers each year, which is four times the current capacity of Bole International Airport.

Ethiopian Airlines’ Group CEO, Mr. Mesfin Tasew, announced the Mega Airport City project, highlighting its role in establishing Ethiopia as a global aviation hub. “The project will not only enhance connectivity but also drive economic growth and prioritize environmentally responsible practices in our country and beyond, reflecting the airline’s commitment to innovation and sustainability. With its exceptional capacity and world-class facilities, this new airport promises to elevate African aviation and strengthen partnerships, marking a significant advancement for the region’s air travel infrastructure”.

Dar’s Director of Operations in Ethiopia Tariq Al-Qanni stated, “We are privileged to be collaborating with Ethiopian Airlines on this visionary new airport, which will provide vital global air connectivity, accelerate economic growth in Ethiopia, and elevate Ethiopian Airlines into Africa’s most strategic and most competitive aviation group.”

In its first phase, scheduled to be completed in 2029, the contract is set to position Ethiopia as the leading global gateway to Africa with a capacity of handling 60 million passengers, almost three times the number of passengers registered in Africa’s busiest airport in 2022, Addis Ababa Bole International Airport; ultimately, the new airport’s capacity will serve 110 million passengers a year, quadrupling the capacity of Bole International Airport.

The Mega Airport City will feature a 1.1 million sqm terminal including passenger facilities, 126,190 sqm of airline support facilities, and over 100,000 sqm of cargo and airport support facilities. It will also include an associated airfield and other essential airport infrastructure.

The new airport is positioned at a lower elevation compared to the current primary hub, Addis Ababa, situated at one of the world’s most elevated locations, presenting unique operational challenges for aircraft. The architectural team will incorporate elements of Ethiopian heritage to establish a new emblematic structure for the nation – a people-centric, intuitive airport characterized by sustainability, resilience, and future-readiness. Ethiopian Airlines remains steadfast in its commitment to elevating customer experience to unprecedented heights, ensuring every journey is marked by excellence and innovation.

 About Ethiopian

Ethiopian Airlines Group (Ethiopian) is one of the fastest-growing airlines brand globally and the continent’s largest airline brand. In its seventy-eight years of successful operations, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success. Ethiopian commands the lion’s share of the African passenger and cargo network operating the youngest and most modern fleet to more than 150 domestic and international passenger and cargo destinations across five continents. Ethiopian’s fleet category consists of ultra-modern and environmentally friendly aircraft such as Boeing 737s, 777s, 787s, Airbus A350-900 and De Havilland Q400.

Ethiopian is also pursuing multi-hub strategy through hubs in Lomé, Togo with ASKY, in Lilongwe, Malawi with Malawi Airlines and in Lusaka, Zambia with Zambia Airways. Having achieved its strategic plan (Vision 2025) ahead of time, Ethiopian is currently implementing a 15-year strategic plan Vision 2035 that will see it become one of the top 20 most competitive and leading aviation groups in the world. Ethiopian has been champion in various coveted awards including Skytrax’s ‘Best Airline in Africa Award’ for seven consecutive years among others. The airline has been a Star Alliance member since 2011 and has been registering more than threefold growth in the past 10 years.

 About Dar

Dar provides design, planning, engineering, and management services for buildings, cities, transportation, and civil infrastructure projects.Dar, TYLin, and Landrum & Brown belong to Sidara, a global collaborative of industry-leading firms have advised 23 of the top 30 global airports and delivered projects in over 300 airports, including Ethiopia’s Bole International Airport as well as strategic global hubs such as Dubai International Airport. Zaha Hadid Architects brings award-winning capabilities and a global track record of iconic airport projects, while Pascall+Watson Architects has successfully completed more than 2,000 aviation projects across 70 airports in 35 countries.

For more at: www.ethiopianairlines.com

https://corporate.ethiopianairlines.com/Press-release-open-page/ethiopian-airlines-signs-a-contract-with-dar-al-handasah-to-develop-a-mega-airport-city

Contact us on nbores@ethiopianairlines.com/nbocto@ethiopianairlines.com

Source: Corporate Ethiopian Airlines.

Sabre signs distribution agreement with Delta Air Lines

  • Deal includes NDC content

Sabre has closed a multi-year renewal of its distribution agreement with Delta Air Lines. The long-term agreement enables Sabre-connected Travel agents connected to Sabre will now have access to both traditional EDIFACT and NDC Delta content.

Earlier this year, Delta announced details of its selling and servicing transformation, which included NDC. The pair will work together on the integration of NDC content into Sabre’s travel marketplace to support the transformation. “We are pleased to extend our full content agreement and value-based commercial model with Sabre,” said Jeff Lobl, managing director, distribution strategy and agency sales programmes of Delta Air Lines.

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“We look forward to collaborating with Sabre to make Delta’s NDC technology solution available to all Sabre-connected travel agents to ensure that our customers receive the best possible travel experience tailored to their needs.”

Roshan Mendis, chief commercial officer of Sabre Travel Solutions, added: “Sabre is delighted to extend our long-standing partnership with Delta Air Lines and to support their NDC journey. “This agreement underscores our commitment to building a comprehensive travel marketplace that equips travel agents with the tools and content they need to excel in today’s dynamic travel environment, including the ability to leverage the potential of NDC.”

Source:   Travolution.

Catch the latest recap of the Kenya Travel Industry Payments Summit (K-TRIPS) on YouTube! Navigating industry shifts to fostering innovation, the summit offered valuable takeaways for travel professionals.

EAC Urges Partner States to Fast Track Liberalizing Air Transport Market.

The East African Community (EAC) has urged its partner states to fast track regulations to liberalise the air transport market to boost regional integration and economic growth.

“An integrated air transport market is essential for the development of our region. By removing barriers to air travel, we can enhance competitiveness and attract investment in the region,” The East African Community (EAC) Deputy Secretary General in charge of Infrastructure, Productive, Social and Political Sectors, Andrea Aguer Ariik, said during the 19th Meeting of Director Generals of Civil Aviation and Airports Authorities.

The liberalisation of the market in the region, which has been in the plans since 2006, is expected to lower the cost of air fares, stimulate demand for air traffic, connectivity, increase operation efficiency, reduce the flying time and support the expansion of air transport capacities and the regional economy.

Among other things, the EAC is urging partner states to consider harmonising regulatory fee and charges, and to designate the regional air transport market as domestic for registered air operators in the region.

Only Rwanda and Burundi have submitted their reports on the draft EAC Air Transport Market (Liberalisation) Regulations. The regulations are expected to be submitted to the 19th Meeting of EAC Sectoral Council on Transport, Communication and Meteorology (SC-TCM) for adoption.

Once adopted, and then ratified by Partner States, the air transport market will be liberalised. States will then negotiate bilateral and multilateral arrangements.

Source: Kenyan Wallstreet.

Dubai medical tourism booming as 691,000 spend over $280m; top procedures revealed.

Dubai medical tourism is booming, with 691,000 health tourists spending AED1bn ($280m) last year, according to a recent report by the Dubai Health Authority (DHA).

Dentistry, dermatology and gynecology are among the most popular activities for medical tourists coming to Dubai.

This upsurge is evident in the increased number of tourists seeking medical treatment in Dubai and their significant spending on a range of healthcare services.

Dubai medical tourism

The report reflects the rising global confidence in the quality and excellence of Dubai’s healthcare services across different medical specialties. It also demonstrates the emirate’s competitive advantage as a leading health tourism destination regionally and globally.

Furthermore, the report sheds light on DHA’s collaborative efforts with its strategic partners to accelerate the growth of health tourism.

These endeavours are in alignment with the goals of the Dubai Economic Agenda D33, which strive to double the emirate’s economy and elevate its global standing as the preferred hub for business, investment, and tourism.

As per the report, Dubai welcomed more than 691,000 health tourists from across the world in 2023, with their collective spending on healthcare services exceeding AED1.03bn ($280.5m).

These numbers bettered those of 2022, when international health tourist arrivals topped 674,000, with their spending totalling AED992m ($270m).

Dubai’s indirect revenues from health tourism stood at AED2.3bn ($626m) in 2023. These revenues played a crucial role in elevating Dubai’s overall GDP and further boosting vital sectors.

Awadh Seghayer Al Ketbi, Director-General of the Dubai Health Authority, emphasised that the rising number of international tourists from every corner of the globe opting for healthcare services in Dubai reflects global trust in the emirate’s healthcare sector.

He highlighted Dubai’s exceptional service quality, conforming to the latest standards of excellence and healthcare.

He also outlined several factors that have significantly bolstered Dubai’s health tourism sector. These include enhancements to the emirate’s healthcare system through incorporating and leveraging cutting-edge technological advancements, ensuring the availability of top-notch medical expertise, and attractive programmes and initiatives designed for international patients.

Furthermore, the competitive pricing provided by healthcare facilities in Dubai and the government’s dedication to advancing the health tourism sector through fruitful partnerships aim to enhance the emirate’s competitiveness in this domain, further solidifying Dubai’s status as a preferred destination for individuals seeking medical treatment and recovery.

Al Ketbi lauded the contributions of the private medical sector in Dubai as a strategic partner to the government sector. He praised their initiatives, facilities, and patient treatment programmes while highlighting their dedication to providing exceptional experiences for international patients in a secure and comfortable environment.

This commitment, he added, is supported by a sustainable and advanced infrastructure tailored to meet patient needs and ensure the highest level of satisfaction.

Al Ketbi reiterated the DHA’s commitment to continually enhance the healthcare system in Dubai to align with the emirate’s tireless development and rapid transformations across the economic, health, and social sectors.

This commitment showcases a visionary strategy aimed at bolstering Dubai’s standing as a pioneering global development model that meets current demands and anticipates future requirements.

Based on information from the Dubai Digital Authority, the report highlighted that 58 per cent of international health tourists were women and 42 per cent were men.

A significant volume of international medical tourists originated from Asia, comprising 33 per cent of the total, followed by Arab countries within the GCC at 28 per cent, and European countries along with the Commonwealth of Independent States at 23 per cent.

Dubai also succeeded in attracting a substantial number of medical tourists from various regions who sought out experts in key specialties, reinforcing its position as a premier destination for specialised healthcare services.

A breakdown of the medical specialisations most sought after by visitors and the region-wise breakup in terms of specialised treatments they sought is as follows:

Top 3 in-demand specialties: Dentistry – 29 per cent, Dermatology – 27 per cent, Gynaecology- 13 per cent

Region-wise demand for dermatology: Asia – 33 per cent, Arab and GCC countries – 28 per cent, Europe – 23 per cent

Region-wise demand for dental services: Arab and GCC countries – 48 per cent, Europe – 20 per cent, Asia – 19 per cent

Region-wise demand for gynaecology services: Asian countries – 49 per cent, European countries – 25 per cent, Arab and GCC countries – 13 per cent

Region-wise demand for orthopaedic surgery: Arab and GCC countries – 30 per cent, Asia – 29 per cent, Europe – 24 per cent

Region-wise demand for plastic surgery: Arab and GCC countries – 43 per cent, Asia – 21 per cent, Europe – 21 per cent

Region-wise demand for ophthalmology services: Asia – 28 per cent, Arab and GCC countries – 27 per cent, Africa – 21 per cent

Region-wise demand for fertility treatments: Asia – 36 per cent, Arab and GCC countries – 22 per cent, Europe – 21 per cent

Region-wise demand for recuperation and recovery treatments: Europe – 35 per cent, Arab and GCC countries – 30 per cent, Asia – 21 per cent

The statistics provided in the report underscore the city’s appeal as a hub for specialized healthcare services, welcoming patients from all over the world seeking quality treatment and care in diverse medical disciplines.

Source:   Arabian Business.  

CS Miano pledges to fast-track strategies to unlock tourism potential.

Tourism and Wildlife Cabinet Secretary Rebecca Miano has pledged to fast-track strategies aimed at unlocking the immense potential of Kenya’s tourism sector.

Miano said that Tourism is the third largest source of foreign exchange for Kenya, with earnings reaching Sh352.6 billion in 2023 compared to Sh268.1 billion the previous year, marking a 31.5 per cent increase.

Speaking when she took over the ministry from Alfred Mutua who is the new Labour Cabinet Secretary during the official handover ceremony in  Nairobi, Miano said that she would lead consultations in revamping the National Tourism Policy.

“I will ensure the revamping of the National Tourism Policy to serve emerging trends given the ever-changing tastes of tourists with this sector holding significant promise in boosting the country’s economic growth,” said Miano.

The Cabinet Secretary said her priority will be to accelerate the growth of tourism earnings to support the government’s development agenda by seeking a broad consensus with key stakeholders in the spirit of the Bottom-up Economic Model.

Miano said this will be done in a manner to uphold the distribution of benefits accruing from tourism and wildlife conservation more evenly throughout Kenya as she consults with sector players on ways of reducing human-wildlife conflicts.

The Cabinet Secretary was categorical on the need to enhance product diversification that caters to modern tastes and boosts the country’s competitive edge affirming that the Ministry would work closely with all stakeholders to unlock the sector’s immense potential for both domestic and international tourism.

“I will seek ways of entrenching a domestic tourism culture as we disabuse the notion that tourism is for visitors from without, i will also encourage the use of modern information technology to rally the travel industry to not only shore up tourist numbers but also create memorable experiences of our diverse attractions,” said Miano.

The Ministry of Tourism & Wildlife, through the Kenya Tourism Board (KTB), is collaborating with county governments to develop niche tourism circuits, which Miano said will be a game-changer for the sector.

Miano said that her door is open for all sector players as they seek partnerships that will be beneficial to the sector, with a focus on ensuring synergy with the county governments as well as creating an enabling environment for investment in tourism across the country.

The Cabinet Secretary said there was a need to retool wildlife conservation to respond to current issues like climate change with Kenya being a custodian to diverse wildlife heritage as well as flora and fauna that we must take care of

Miano expressed commitment to finding sustainable solutions to the human-wildlife conflict noting that she will work closely with the Kenya Wildlife Service and other agencies to ensure proper mechanisms for compensation and conservation are in place.

Mutua lauded groundwork laid during his tenure, particularly through initiatives which aim at uncovering Kenya’s hidden tourism treasures expressing confidence that Miano will bring a fresh perspective to boost tourism earnings.

“I am confident that CS Miano will build upon the momentum, especially through the collaborations with counties, to drive tourism revenue growth and wish her success in steering Kenya’s tourism sector to new heights,” said Mutua.

Source: Standard Media.  

Ethiopian Airlines unveils exclusive Silver Lounge at Bole Int’I Airport.

Ethiopian Airlines, the leading aviation group in Africa, is pleased to announce the inauguration of the Silver Lounge, an exclusive facility dedicated to ShebaMiles Silver members. Strategically positioned within the Addis Ababa Bole International Airport, the Silver Lounge offers a serene and engaging environment where passengers can unwind and enjoy entertainment amenities.

The Silver Lounge, spanning an impressive 810 square meters, is designed to offer a serene oasis for travelers. It features a variety of amenities tailored to meet the needs of diverse clientele, including dining areas with an array of buffets and services, comfortable seating areas for relaxation, a designated smoking room, a delightful kids’ corner for younger guests, ample storage room, and additional facilities to enhance the passenger experience. The lounge’s capacity allows it to accommodate up to 200 guests during peak hours, ensuring a seamless and stress-free travel experience.

“We are pleased to open the doors to this magnificent lounge, which symbolizes our continuous efforts to elevate the standards of hospitality in the skies and on the ground,” said Mr. Mesfin Tasew, Chief Executive Officer of Ethiopian Airlines Group. “The Silver Lounge is more than just a space; it is an embodiment of our vision to further enhance the travel experience of our guests and solidify Addis Ababa as a leading aviation hub in Africa.”

The Silver Lounge is a symbol of the airline’s relentless pursuit of excellence and its unwavering dedication to providing its guests with the highest levels of comfort, convenience, and luxury. The airline’s commitment to providing superior travel experience is further exemplified by the availability of multiple lounges throughout the airport terminals, catering to the diverse needs of its clientele. Passengers holding Cloud Nine, ShebaMiles Platinum, Star Alliance Gold, and Silver memberships have the privilege of accessing these lounges to rejuvenate during their transit through Addis Ababa.

Ethiopian Airlines, a seven-time consecutive recipient of the prestigious Skytrax award, remains steadfast in its dedication to elevating the passenger experience. As the most expansive carrier across the African continent, the airline continues to invest in customer service enhancements, ensuring that its esteemed passengers enjoy the highest standards of hospitality and comfort.

Source: Voyages Afriq.  

Seychelles Strengthens Ties with Chinese Market Through Successful 2024 Roadshow

Building on the success of its 2023 roadshow, Tourism Seychelles, with the support of the Seychelles Embassy in Beijing, has once again hosted a series of trade workshops across key Chinese cities, reaffirming its commitment to the flourishing Chinese market.

This year’s roadshow, headed by Mr. Jean-Luc Lai-Lam, Director for China & Japan, and Mr. Sam Yu, Senior Marketing Executive for China at Tourism Seychelles, took place between July 22nd to 31st, 2024. It covered the five major cities of Beijing, Chengdu, Guangzhou, Shenzhen, and Shanghai.

The event brought together many key industry stakeholders, including tour operators, travel agencies, wholesalers, and media representatives. The roadshow provided a valuable platform for Tourism Seychelles and its Seychelles trade partners to engage in fruitful discussions, build relationships, and explore new business opportunities.

A special highlight of the roadshow was a networking meeting event organised in Beijing in collaboration with the Ambassador of Seychelles to China, Mrs Anne Lafortune, where partners were given insights and prevailing trends into the Chinese market. The discussions also explored the market’s opportunities and potential, offering a glimpse into what the future holds for local partners.

“This year’s roadshow has been a resounding success,” said Mr. Jean-Luc Lai-Lam, Director for China & Japan at the Tourism Department. “The strong turnout and enthusiastic participation from the Chinese travel professionals demonstrate the growing interest in Seychelles as a destination. We are particularly excited about the potential of the first few direct flights from Chengdu in collaboration with the Chinese Embassy in Seychelles and Chengdu, China, which will further enhance accessibility and boost visitor arrivals from this important market.”

The roadshow also served as an ideal platform to showcase the latest developments and offerings within the Seychelles tourism landscape. Seychelles trade partners actively participated in the workshops, sharing their expertise and promoting their unique products and services. These partners included:

DMC Partners: Ms. Shi Ming Wang, Chinese Representative – 7° South, Ms. Normandy Salabao, Senior Manager Sales & Marketing – Creole Travel Services, Mr. Chamika Ariyasinghe, Business Development Manager – Luxury Travel, Ms. Zhang Junhao, Chinese Marketing Representative – Sey Yeah, Mr. Aaron Zhang, Managing Director – Cheung Kong Travel, Ms. Jona Ladouce, Sales & Contracting Manager – Tirant Tours & Travel.

Representing the hotels were; Ms. Vivienne SU, Regional Marketing Director – Constance Hotels & Resorts, Ms. Shamita Palit, Sales Consultant – Le Duc de Praslin and laïla, Seychelles, a Tribute Portfolio Resort by Marriott, Mr. Sergey Elkin, Director of Sales & Marketing – Kempinski Seychelles Resort Baie Lazare.

Also present was Chengdu Youth Travel Services (CYTS), the company working on the upcoming flights and packages to be made available to the different Chinese agents and potential visitors.

Speaking about the participation from Seychelles, Mr Lai Lam added, “The roadshow would not have been possible without the all-out support of our Seychelles trade partners. Their dedication and commitment have been instrumental in making this event a success.”

Following the event, Ms. Normandy Salabao, Senior Manager of Sales and Marketing from Creole Travels, expressed, “I’m thrilled to share positive feedback on Tourism Seychelles’ recent China roadshow. The event was exceptionally well organised, with engaging presentations and interactive elements that effectively captured the objectives of the roadshow. The team’s tailored approach for the Chinese market was impressive, resonating well with attendees, including well-chosen agents and tour operators, and fostering valuable connections.”

Ms. Shamita Palit, Sales Consultant at Le Duc de Praslin and laïla, Seychelles, a Tribute Portfolio Resort by Marriott, shared insightful feedback on the recent developments, highlighting that the potential direct flight from Chengdu offers connectivity, visibility, and reach that extends further than China to Kazakhstan, Russia, South Korean and Japan.

She noted that this success signifies an alliance extending beyond tourism to include commerce opportunities between the two countries, necessitating a collective effort from all areas of Government. Reflecting on her personal experience, Ms. Palit remarked that China had surpassed her expectations, offering infrastructure, technology, facilities, diversity, culture, and interests far beyond what she had envisioned.

Ms. Palit sees significant potential not only for inbound leisure tourism but also for corporate groups, incentive travel, enhanced trade imports from China, and even a niche market of outbound holidaymakers from Seychelles.

Seychelles is making significant strides in penetrating the Chinese market, highlighted by the introduction of the first direct, non-stop charter flight between Seychelles and Chengdu, China, operated by Sichuan Airlines.

Seychelles is expecting its first direct flight since 2018 in the second half of 2024. This flight, with an approximate duration of 8.5 hours, marks a pivotal advancement in air connectivity between the two regions. Further discussions are already underway regarding additional flights, underscoring the growing commitment to enhancing travel links and fostering deeper engagement with this key market.

Mrs. Bernadette Willemin, Director General of Destination Marketing at the Tourism Department, remarked that the success of the roadshow and the upcoming flights will reflect in the growth of Chinese visitor arrivals to Seychelles this year. “We are thrilled to see a significant increase in interest for Seychelles from the Chinese market. The Chinese tourism arrival numbers are higher compared to last year. The growth is a testament to the collaborative efforts of Tourism Seychelles and our trade partners in promoting Seychelles as a premier destination for Chinese travellers.”

Source: Voyages afriq

Bosses cut flying day trips as travel settles into permanent ‘new normal’

Industry body says inflation-adjusted corporate travel spending will not return to pre-pandemic levels until 2027

Executives are flying less and cutting one-day work trips by plane as corporate travel settles into a permanent “new normal”, according to the chief executive of the global industry trade body.

“Inflationary pressures and other things means [travel companies] are making more money on fewer trips . . . but the way companies travel is different,” said Suzanne Neufang, head of the Global Business Travel Association. “So that is a new normal and that is probably here to stay.”

One of the big changes has been the decline of one-day flight trips, as bosses cut journeys because of frustration with disruption, environmental worries and changing attitudes to work since the pandemic.

The one-day flight trip for work “went out the door at the beginning of Covid and hasn’t really come back”, explained Neufang.

Inflation also means that executives are struggling to save money despite making fewer trips.

The GBTA does not expect spending on inflation-adjusted global corporate travel, which includes spending on flights, trains, hotels and other expenses, to return to pre-pandemic levels until 2027.

Without the inflation adjustment, the GBTA said global corporate travel would reach a record $1.48tn by the end of the year, up from $1.34tn in 2023 and surpassing pre-pandemic levels for the first time.

Delays and cancelled flights are partly responsible for fewer trips since the pandemic, with 50 per cent of respondents to a 2023 GBTA survey saying concerns about disruptions or an unpleasant experience have “somewhat” or “greatly” reduced their willingness to travel for work.

Environmental and sustainable factors have also played a part as corporates try to limit flying, packing more meetings into fewer trips or only taking a plane for long journeys.

Companies including professional service firms PwC, EY and Marsh McLennan have all outlined plans to cut emissions by reducing air travel.

In addition, there was a human element, Neufang added. “Day trips are really hard, no matter what, even on the best days they are hard, very early starts and late returns.”

The chief executive of one of the big international airlines said it was noticeable how day trips had fallen out of favour as bosses cut time in the air. The CEO pinpointed fear of disruption as a likely reason for the drop. 

Neufang thought the industry was in “a little bit of a squishy moment” given the uncertain outlook for the economy, including recent stock market turmoil and signs of cracks in the US economy.

“Whether it is a hard landing or a soft landing, that is certainly something that CFOs [chief financial officers] are watching.”

However, Andrew Crawley, president of American Express Global Business Travel, was upbeat.

“Air fares and hotel rates have gone up very significantly in the past few years . . . customers’ budgets lag those price rises a little bit, but they do catch up with them eventually.”

Global multinationals were telling AmexGBT that they still planned to increase spending on travel, although small- and medium-sized businesses were more likely to suffer from economic uncertainty, Crawley said.

He also disagreed that travel problems would put people off taking trips. “You either have to travel or you don’t.”

 Source: Financial times