Social Media’s Rising Influence on the Travel Industry

Social media has been around for over a decade now, but its influence over our decision making and buying preferences continues to grow. As travel is an inherently social activity, this influence is particularly present for our industry.

Consumers are constantly inspired by stunning landscapes, compelling food, and adventurous experiences online, presenting an opportunity for brands to connect and amplify their messages to reach a larger audience. As new social platforms emerge, the importance of engaging with travelers in the areas they are looking for inspiration only grows.

Social media as a source of inspiration

While family, friends, and travel providers are the most popular sources of travel inspiration, our 2023 Traveler Value Index showed that social media is right behind them, with 35% of consumers saying they use social for travel inspiration. The use of social media as travel inspiration surpassed more traditional outlets, such as travel agents (29%), media publications such as newspapers or magazines (26%), and entertainment, like TV shows and movies (25%).

But the influence of social media is much more present when you look at younger generations. For consumers under the age of 40, 50% of them say they use social media as a source for inspiration, a very close second to family (52%). For Gen Z, social media is the number one most popular source of inspiration, with 53% saying they turn to social for inspiration, meaning a strong social presence is essential for connecting with younger travelers.

Taking a regional look, consumers from South Africa and Mexico are particularly influenced by social. In South Africa, 59% of consumers look to social for inspiration and 54% in Mexico.

Crafting successful social media campaigns

To connect with travelers finding inspiration on their social feeds, creating fresh, innovative, and authentic social media campaigns is key. This helps your brand not only get in front of travelers but stand out in a way that will be memorable. We’ve worked with many brands to develop social media campaigns and strategies that resonate and use social channels to amplify other creative elements of campaigns.

Destination Canada explores TikTok

Destination Canada, the NTO (National Tourism Organization) for Canada, worked with our team to leverage Expedia Group’s social media channels, including TikTok, in a summer social media campaign targeting travelers from key U.S. states.

The 15-second TikTok video featured the Top 5 Things Not to Miss in Canada, including the country’s most exciting sights and experiences such as its stunning lakes, lush rainforests, and iconic Toronto cityscape. The social video drove impressive results, reaching over 2 million users from key U.S. markets and generating over 3.5 million impressions, further proving bite-sized social content can create big impact for marketing campaigns.

Abu Dhabi creates an immersive experience, promoted through social

Our campaign with the Abu Dhabi Department of Culture and Tourism took a more immersive approach by following the adventures of social media influencer, Ellie, as she explored Abu Dhabi. Our in-house creative agency developed an original video episode for “The Next Turn” series. In the “City of Surprises” episode, travel shoppers can watch, explore, and book, all on the same page to effectively connect inspiration with a shoppable booking experience.

The video is amplified through social media, utilizing short trailers to hook viewers and entice them to learn more. Ellie is also sharing the content on her social channels, further expanding the message to her trusted audience and encouraging bookings.

Using social media marketing for travel inspiration and influence

By using our social media solutions for travel marketing, you can take advantage of a highly targeted audience of travelers across our brands like Expedia, Vrbo and Hotels.com. Some of the solutions we offer include:

  • Social integration packages to transform standard ads into a native social experience across traveler’s social feeds.
  • Instagram stories, which motivate travelers who are seeking inspiration and increase engagement with your brand.
  • Co-branded videos that capture traveler interest with compelling video content.
  • Custom social promotion across multiple platforms to create the most engaging social experience while telling your brand story.

These social media solutions are set up to help your brand stand out in our highly engaged travel community. As the popularity of social media continues to rise and travelers look to new platforms for

Source: Hospitality.net

IATA notes reasons to be optimistic in 2023 but says profits still ‘razor thin’

With airlines continuing to cut pandemic-related losses in 2022, the global airline industry is expected to finally return to profitability in 2023, a recent outlook released by the International Air Transport Association (IATA) suggests.  

How much will the airline industry lose in 2022?  

IATA estimates that airline net losses will stand at approximately $6.9 billion at the end of 2022 compared $42.0 billion and $137.7 billion recorded in 2021 and 2020 respectively, IATA noted in the outlook, which was released on December 6, 2022.  

The association also expects an 8.4% increase in passenger traffic compared to last year, leading to a significant increase in passenger revenues, reaching $438 billion compared to $239 billion in 2021.   

Overall revenues are expected to grow by 43.6% compared to 2021, reaching an estimated $727 billion, IATA added.  

According to IATA’s Director General Willie Walsh, despite facing rising operating costs, labor shortages, strikes, and other disruptions across the world’s key hubs during 2022, airlines still managed to cut losses due to an increased demand for air travel.  

Air cargo played a key role for air carriers in cutting losses, with IATA predicting that cargo-related revenues will almost double to a total of $201.4 billion compared to $100.8 billion in 2019.  

“We will end the year at about 70% of 2019 passenger volumes. But with yield improvement in both cargo and passenger businesses, airlines will reach the cusp of profitability,” Walsh said.  

Improvement despite growing economic uncertainties   

In 2023 airlines will witness the first financial recovery and will be able to gain their first profit since 2019, IATA’s analysts said.   

Air carriers are expected to record a net profit of around $4.7 billion in 2023. However, growth will remain a low improvement in comparison to an industry profit of $26.4 billion posted in 2019.  

“This expected improvement comes despite growing economic uncertainties as global GDP growth slows to 1.3% (from 2.9% in 2022),” the report added.   

However, according to Walsh, the expected profits for 2023 are “razor thin”.  

“Despite the economic uncertainties, there are plenty of reasons to be optimistic about 2023. Lower oil price inflation and continuing pent-up demand should help to keep costs in check as the strong growth trend continues. At the same time, with such thin margins, even an insignificant shift in any one of these variables has the potential to shift the balance into negative territory. Vigilance and flexibility will be key,” Wash explained.  

IATA’s experts say that high passenger demand will become the main driver to achieve the first profitable year after the pandemic downturn. Global passenger numbers are predicted to grow to 85.5% of 2019 levels. This will generate approximately $552 billion in airline industry revenues.   

“Much of this expectation takes into account the uncertainties of China’s Zero COVID policies which are constraining both domestic and international markets. Nonetheless, passenger numbers are expected to surpass the four billion mark for the first time since 2019, with 4.2 billion travelers expected to fly,” IATA said.  

Global air cargo market could face “increased pressure”  

Meanwhile, the global air cargo market could come “under increased pressure”. Estimated revenues are expected to stand at 149.4 billion, which is $52 billion less than in 2022. However, such a performance will still be $48.6 billion stronger than recorded by airlines in 2019.   

“With economic uncertainty, cargo volumes are expected to decrease to 57.7 million tonnes, from a peak of 65.6 million tonnes in 2021. As belly capacity grows in line with the recovery in passenger markets, yields are expected to take a significant step back,” according to the association data.  

“IATA expects a fall of 22.6% in cargo yields, mostly in the latter part of the year when the impact of inflation-cooling measures is expected to bite. To put the yield decline in context, cargo yields grew by 52.5% in 2020, 24.2% in 2021, and 7.2% in 2022. Even the sizable and expected decline leaves cargo yields well-above pre-COVID levels,” IATA concluded.  

Source: Aerotime Hub

Top five tourist destinations in Dubai you can reach via public transportation

Dubai: If you are a tourist in Dubai, getting around the city using public transportation is easy and affordable.

If you want to visit Dubai’s major hotspots, such as Burj Khalifa or Bluewaters Island, you have many transportation options, like taxis, Metro, Tram, and ferries.

Here is how you can reach these five famous attractions in Dubai using public transportation.

FIRST GET A NOL CARD

Before starting your trip, you must buy a nol card. You can buy it from the kiosks at every Metro station in Dubai.
As a tourist, you can either buy a red, silver or gold nol card.

Red nol card: The red nol card is a disposable ticket that can only be used once and on only one mode of transport. It costs Dh2, and you must top it up with the necessary balance for your trip.

Silver nol card: If you are planning to travel to multiple locations and use different modes of transport, the silver nol card is the right choice. It costs Dh25 (with Dh19 that can be spent on services) and is valid for five years.
Gold nol card: If you want an upgrade, the nol gold card allows you to access the Gold Class cabins on Dubai Metro and Dubai Tram. To get the card, you need to pay Dh25 (with Dh19 that can be spent on services). It is also valid for five years and can be used on all transport services and other payments like the nol silver card.

However, a trip will cost you more when using the gold card, compared to a silver card. For example, if you travel within one zone, a trip costs Dh3 if you use a silver card and Dh6 if you use a gold card.

According to RTA, a minimum card balance of Dh7.50 is required for a one-way trip.

Dubai public transport app – S’hail

The S’hail app from RTA, which is available for both Apple and Android devices, allows commuters to plan their journey in Dubai using public transportation in Dubai and gives them an estimated cost of the trip.

The app also provides details on the bus, Metro, Tram or abra (or other marine transport options) you can take within Dubai to reach your destination.

1. Burj Khalifa

Seeing the Burj Khalifa and breathtaking Dubai Mall fountains are almost on every tourist’s itinerary list when they visit Dubai. The most convenient way to reach the Burj Khalifa area is by using the Dubai Metro.

Dubai Metro

The nearest Metro station is the ‘Burj Khalifa/The Dubai Mall station’, on the Red Line. Once you are at the Metro station, follow the exit signs that point towards ‘Dubai Mall/Burj Khalifa’.

The Metro station is within a walking distance from The Dubai Mall by using the Metro Link Bridge or footbridge. The bridge is a glass tunnel travellator that links ‘Burj Khalifa/The Dubai Mall Station’ and The Dubai Mall.

Public buses and taxis.

Alternatively, if you do not want to use the bridge, you can use the taxis available at the Metro station or the feeder buses. Feeder buses transport passengers from Metro stations to communities or business districts around Metro areas.

Bus stop and route towards Dubai Mall entrance

The bus stops and taxi stands at the Metro station are located in Dubai Mall Metro Bus Stop Landside, Exit 1. The feeder bus available at the Dubai Mall/Burj Khalifa Metro station is the F13 bus route. The buses arrive and depart from the tourist drop-off area, located in front of the Grand Drive Entrance on the Lower Ground Floor of The Dubai Mall.

The cost of a bus trip from the station to the Dubai Mall entrance is approximately Dh3.

To see the Burj Khalifa, you must go into Dubai Mall, stay on the lower ground level, and follow the signs to Burj Khalifa, which are clearly marked around the mall.

2. Dubai Marina

Dubai Marina is a lively district that comprises of many neighbourhoods, including the Jumeirah Beach Residences (JBR). Dubai Marina Walk also has a 7km promenade with shopping and dining options.

Since the Dubai Marina area encompasses many neighbourhoods, the easiest way to discover the area is via the Dubai Metro and Tram.

How to use the Dubai Tram and Metro to Dubai Marina

If you plan on visiting the Dubai Marina area via Metro, you need to get off at the SOBHA Realty Metro station on the Red Line. This Metro station will connect you to the Dubai Marina Tram Station. The tram will then stop at different areas in the Dubai Marina neighbourhood.

3. Jumeirah Beach Residences (JBR)

The two most famous attractions at JBR are The Walk and The Beach. If you are looking for a relaxing stroll by the beach, the beachside boulevard has retail shops, cafes and restaurants. The Walk runs parallel to The Beach, a public beach equipped with a 600m running track, and many outdoor activities, including beach volleyball and an outdoor gym.

Dubai Metro and Tram towards JBR

The closest Metro station to JBR is Dubai Multi Commodities Centre (DMCC) Metro station on the Red Line. The DMCC Metro station is also connected to the Dubai Tram, which is the Jumeirah Lake Towers Tram Station. Once you are in the Tram, go to the Jumeirah Beach Residence 1 station, which is the closest tram station to the JBR beach area.

Renting bikes and e-scooters in Dubai

If you are in the Dubai Marina and JBR area, you can easily rent a bike or e-scooter from the Metro stations in DMCC, Sobha Realty and Dubai Internet City. You will be charged 50 to 60 fils for every minute of your trip using a rented e-scooter.

For a complete guide on how to rent and use e-scooters and bikes in Dubai, read here and here.

4. Bluewaters Island

Bluewaters Island was opened in 2018, and is another popular attraction in Dubai because of its luxury hotels, beach clubs, entertainment venues and the record-breaking Ain Dubai, an observational wheel which is currently closed.

How to take the Dubai Tram to Bluewaters Island

Located across the Dubai Marina, the island is connected to the JBR Beach area via a public footbridge. The closest Dubai Tram station to the pedestrian bridge is Jumeirah Beach Residences 1 and 2. You can walk towards Bluewaters from the Tram station, which will take around six to seven minutes.

How to take the Dubai Ferry to Bluewaters Island

An alternative mode of transport is to take the Dubai Ferry or Dubai Water Taxi from the Dubai Marina Mall Marine Transport Station to the Bluewaters Marine Transport Station. Once you reach the station, you will have to walk towards the Bluewaters Island main area, which will take you around one to two minutes. You can use your nol card to travel on the Dubai Water Taxi or Ferry, which will cost you Dh25.

5. Palm Jumeirah

The Palm Monorail is the easiest way to navigate Palm Jumeirah because it connects key landmarks on the man-made island.

The monorail is a 5.5 km line, and the only public transportation system in Palm Jumeirah for residents, visitors and tourists.

It connects visitors and residents from the Gateway Station at the entry of the Palm Jumeirah, to Golden Mile Galleria, Al Ittihad Park, Nakheel Mall, The Pointe and Atlantis Aquaventure station at the final stop of the journey.

Click here to learn more about the Palm Monorail and all the stations.

How do I use the Palm Monorail?

You can access the Palm Monorail from the Dubai Tram. The beginning of the Palm Monorail is linked to the Dubai Tram station – Palm Jumeirah – by a footbridge. It will take approximately 10 minutes to reach the Palm Monorail station – Palm Gateway, the entry point into the island.

You can use your RTA nol card to travel on the Palm Monorail or you can buy separate tickets at any of the Palm Monorail station customer service desks.

Trip costs:

A single-trip ticket price starts from Dh10 and can go up to Dh20, and a round-trip ticket price starts from Dh15 and can go up to Dh30.

Source: Gulf News

Seychelles’ Passport Retains Top Spot As Best in Africa

The Henley Passport Index ranks Seychelles as 29th out of 199 countries for the first quarter of 2023 for the ability of the country’s passport holders to visit 153 countries visa free.

The index is prepared by London-based Henley and Partners, a global citizenship and residence advisory firm.

The firm uses data gathered from the International Air Transport Association (IATA), which manages inter-airline cooperation globally.

As IATA gathers the information in real-time, the index is also amended in the same manner as Henley and Partners also monitor any changes governments may impose on the passports and visa.

The latest figures show Seychelles is ahead of Mauritius at the 34th place where passport holders can visit 146. South Africa came in at 53rd place with its citizens able to visit 106 visa free destinations and Kenya at 73rd with 73 countries.

While the small island state’s passport is still faring better than many of its other African counterparts, Seychelles has slipped down by one place from its ranking of 2022.

The Seychelles – an archipelago in the Western Indian Ocean – also recently changed its passport to a bio-metric one in November last year, in a bid to ensure its safety.

“It is a passport that will be secure and it will not be easy for someone to duplicate it,” President Wavel Ramkalawan had declared at the time of receiving his own passport- which was also the first issued.

The Henley index claims to be the “original ranking of all the world’s passports covers 227 destinations and 199 passports and compares the visa-free access of 199 different passports to 227 travel destinations.”

To determine the passport’s ranking, if no visa is required, then a score with value of 1 is created for that passport. The same applies if you can obtain a visa on arrival, a visitor’s permit, or an electronic travel authority (ETA) when entering the destination.

According to the index, Japan is the country with the strongest passport for the fifth year running, with their citizens being able to freely visit 193 destinations.

Singapore and South Korea, whose citizens can freely visit 192, are in second place.

Source: Seychelles News Agency

The turning point for Africa’s air cargo

From the Yamoussoukro Decision (YD) of 1999 to the Single African Air Transport Market (SAATM) of 2018, countries in the African continent have gone through years of hard work and negotiations facing several challenges to liberalise the continent’s air transport. It looks like the African sky is going to be much more open.

Africa closed out 2022 with remarkable achievements in driving air transport liberalisation, harmonisation of air services agreements and harmonisation of air transport economic regulation.

This unprecedented turn-of-events has raised strong hopes across the continent and viewed as a prelude to more outstanding achievements in air transport liberalisation and aviation development in 2023.

Africa has in recent years sought to establish a workable and updated framework to actualise unfettered air transport market access within Africa for African airlines, and for the benefit of Africa’s economy.

Liberalisation in Africa had continually stalled since the concept was established by Africa’s top political leaders as a Declaration in 1988, which was firmed up as the Yamoussoukro Decision (YD) in 1999. Africa has painstakingly rejigged the YD liberalisation framework under a new implementation mechanism called the Single African Air Transport Market (SAATM) which was launched by the African Union (AU) in January 2018 in Addis Ababa. Towards the end of 2022, the SAATM, with the approval of the AU, was fitted out with updated and improved vital instruments including the dispute settlement mechanism and competition rules which were previously lacking in the YD and largely caused stagnation of the YD. With this, Africa is set to implement its liberalisation under the SAATM.

MASAs drive interconnectivity

Africa celebrated the YD Day 2022 in November in Dakar, Senegal, with the launch of the ambitious SAATM Pilot Implementation Project (PIP) involving 18 pilot States. More remarkably, the continent tested its resolve to implement the policy harmonisation for the liberalisation of its air transport market as the pilot States and others engaged in robust discussions and agreements during the global Air Services Negotiation event (ICAN) organized by the International Civil Aviation Organization (ICAO) in Abuja, Nigeria, in December 2022.

“Over 400 participants representing 63 countries concluded 212 new international air services agreements at ICAO’s 2022 Air Services Negotiation (ICAN) event,” ICAO stated. ICAO Council President Salvatore Sciacchitano stated that “the progressive resurgence of the air transport industry is proceeding at a post-pandemic pace,” saying also that the agreements at the event would add to the recovery’s momentum.

Further, “Multilateralism and the work embarked on here continue to be essential to global success,” he added, “and to the restoration of global travel, trade and tourism capacity in all world regions.”

For Africa, the event was a platform to deepen its liberalisation, interconnectivity and integration of various parts of the continent. It was an opportunity to enthrone SAATM-compliant Multilateral Air Services Agreements (MASAs) and effectively eliminate the Bilateral Air Services Agreements (BASAs) that are prohibitive to market access and liberalisation within Africa.

To fast-track the achievement of SAATM and liberalisation in Africa, the African Civil Aviation Commission (AFCAC) has implored African States to ensure intra-African air services agreement going forward should be multilateral or plurilateral to drive liberalisation on the continent. Ideally, therefore, SAATM-compliant African states were not expected to sign bilateral air services agreements at the ICAO ICAN 2022. Kenya, Nigeria, Ghana, Senegal, Togo, Rwanda, South Africa among several other African States signed agreements at the ICAO ICAN in Abuja, thereby weaving the foreground of air transport liberalisation which is expected to create dozens of city-pairs and points-beyond in Africa from 2023.

Representatives of Zambia at the ICAO ICAN expressed excitement signing with Benin Republic and expect to sign with more African states. This pervasive high-spirits and conviction over the benefits of harmonized air transport market in Africa enveloped the air services negotiation conference in Abuja.

Nigeria’s President, Muhammadu Buhari, assured ICAO and AFCAC of Nigeria’s resolve to support SAATM and Africa’s integration. Hadi Sirika, Minister of Transport of Nigeria, said “we will further strengthen our resolve to implement SAATM in line with AU Agenda 2063.” Anthony Derjacques,

Minister of Transport of Seychelles, enthused that Seychelles has signed many agreements at the ICAO ICAN, including with Nigeria; and looks forward to “seamless air travel” ipso facto. Mohamed Rahma, Director of ICAO’s Air Transport Bureau, saw the ICAO ICAN as a remarkable success, with 100 virtual participants from 60 states. He tasked African states to implement SAATM without hesitation, and assured of ICAO’s support, as he also urged states to digitally register all air services agreements with ICAO.

Olumuyiwa Benerd Aliu, immediate-past President of ICAO Council, enjoined African States to make a difference with the new beginning of SAATM implementation to interconnect African cities and stir up Africa’s economies.

SAATM PIP rides on ICAO ICAN

On the sidelines of the ICAO ICAN 2022, AFCAC delivered a powerful workshop showcasing the thrust and benefits of the SAATM and the SAATM Pilot Implementation Project (PIP) to African and global audience and partners.

Adefunke Adeyemi, AFCAC’s Secretary General, explained that there is a framework to engage and elicit concrete implementation of SAATM, which begins with AFCAC engaging the highest level of government, the ministers and regulators, operators and support stakeholders, including non-core aviation economic sectors such as finance, immigration, national planning, interior, export and import ministries, and others. So far, 19 willing states have joined the SAATM PIP programme, while 36 states have signed for SAATM. The world now looks forward to liberalisation of air transport in Africa.

Based on the experience of the European Union (EU) on liberalisation, Peter Bombay, representative of the EU at ICAO, encouraged Africa to begin implementation of SAATM with few states in the pilot project, while others join in over the coming years. This view was one of the most remarkable outcomes of the SAATM workshop in Abuja.

Africa’s air cargo gets new tailwind

Air cargo is a major thrust and beneficiary of SAATM liberalisation and interconnectivity in Africa, and delegates at the air services event emphasized the essence of cargo and interconnectivity. While cargo was the bulwark for many airlines during the Covid-19 pandemic and airlines converted their passenger aircraft to ‘preighters’, cargo is set again to lift airlines in Africa from the nadir of their existence.

Africa still contributes only 1.9% of global cargo, according to IATA’s report in January 2023. Many expect Africa’s negligible cargo share to significantly increase over the next 3-5 years on the back of liberalisation and improved air interconnectivity in Africa.

Essentially, air cargo which is poorly developed in Africa will permeate Africa along new routes, city-pairs and points-beyond expected which would be created by ongoing liberalisation efforts and multilateral air services agreements within Africa. The ongoing liberalisation efforts are expected to produce 5th, 6th, 7th, 8th and 9th Freedom markets in parts of Africa which would drive movement of increased cargo within the continent or at least the SAATM Pilot states. In fact, RwandAir said it is giving special offers for air cargo shippers as the airline recently set up its cargo arm. There is strong expectation that new cargo-only airlines would emerge, attracted by Africa’s current liberalisation and MASAs regime in Africa.

At the moment, Africa’s air cargo is driven by few excellent players like Allied Air based in Lagos, Nigeria, which is the largest cargo-only carrier in West and Central Africa; as well as Astral Aviation based in Nairobi, Kenya, alongside bigger African airlines including Ethiopian Airlines Cargo and Kenya Airways Cargo. Yet most of Africa’s cargo is carried by foreign carriers mainly from the Middle East and Europe.

While Saudi Arabia spoke enthusiastically about the groundswell of improvement in cargo and 7th freedom in the state, the Minister of Transport emphasized the importance of embracing the new cargo market in Africa.

Interconnectivity to cut emissions

As 2023 kicks off, the establishment of new city-pairs and points-beyond in Africa would not only rev up cargo movement, but would also shorten flight duration generally in Africa, thereby cutting down on emissions that ensue from unnecessary long flights normally embarked on just to interconnect adjacent cities in Africa.

Source: Logistics Africa Update

Staying current with technology is crucial for hospitality

The hospitality sector is focused on providing recreational services and ensuring client pleasure. This may entail providing services to visitors, but it may also entail supplying services to individuals who are not tourists, such as residents taking use of their spare time or individuals visiting a location for purposes unrelated to tourism.

The demand for travel is increasing again as economies all around the world are recovering.Several businesses were impacted by the Covid-19 pandemic, but hospitality was particularly hard hit. Despite this, it has shown incredible resiliency, and thanks to the successful introduction of the illness vaccine, it is now thriving. As a result, nations are relaxing their travel regulations, which are driving up demand for international travel.

The hospitality industry in India has had considerable growth in recent years and it has the potential to expand considerably more in the coming years. Due to its rich and diverse culture, visitors from all over the world have been pouring into the nation. Foreign and domestic travellers agree that India is a popular location for spiritual tourism. India’s position in the World Economic Forum’s index measuring the competitiveness of the travel and tourism industry has consistently improved, moving up from 65th in 2013 to 34th in 2019.

Trends in Hospitality Technology
Trend refers to a change in behaviour or a more extensive circumstance change. In light of this, trends in the hospitality industry may include modifications in consumer behaviour, fresh approaches to delivering services, or a general push to incorporate new hospitality technologies. Trends are frequently influenced by a variety of various reasons.

Today, technology is becoming extremely significant in every industry, including the hospitality sector. It supports businesses in the sector as they develop business practices and client interactions. Additionally, since visitors are accustomed to a range of technologies at home, they anticipate at least the same level of technology while travelling. Due to the intense competition in the sector, staying current with technology is crucial.

The pandemic has increased awareness of sustainability, ethical business practices, and the necessity for collaboration within the hospitality sector. Leading companies have been announcing their plans to offset their carbon footprint in accordance with international governmental efforts and promote best practices for responsible consumption at the level of hotel groups as sustainable travel has become the way of the future. Radisson is an example of company leading sustainability efforts, having committed to being “net zero” by 2050 and decarbonising its operations by establishing challenging emission reduction goals.

The GCC emerging as a major hub for domestic and international tourism bodes well for the hospitality industry’s future. Governments, businesses, and important stakeholders are working together to ensure that the region maintains its steady growth, draws in new markets, and shapes the travel industry’s future.

Innovation technology
The Internet of Things (IoT), integration is something that intrigues visitors to a place. It provides them with a high level of efficiency and convenience in addition to a feeling of luxury. As people begin to use technology like this in their own homes, demand for it in hotels is rising.

Eco-friendly hotels
In general, as it becomes increasingly obvious that sustainability is a significant concern, society is becoming more environmentally sensitive. These evolving attitudes have an impact on how travellers choose their accommodation. For sustainable hotels, energy efficiency, waste management, and environmentally friendly construction are top considerations.

Augmented and virtual realities
The specialised markets for these technologies have changed. They are already extremely well-liked in attractions, gaming, and entertainment, but they can also be quite helpful to hotel guests. While augmented reality superimposes virtual features on the real world, virtual reality substitutes the real world with visual and auditory information. Customers can take virtual tours of your property and even specific areas of the location if they want to experience before they buy. A hotel might utilise an interactive map to provide information to visitors via augmented reality.

Studies on the global hotel sector indicate a sharp increase in demand for new tourist destinations that previous generations of travellers had never even considered (like Central & South America and Canada).

International travel demand has surged as a result of low unemployment numbers and post-recession spending, pushing major airlines like American Airlines to add more direct air transport to overseas countries. The airline hopes to expand significantly in the years to come. This year, it added nonstop service from Newark and Cape Town.

Economists argue that businesses (in any industry) simply cannot afford to overlook the effects of globalisation. In the upcoming years, continuing the swift global expansion.

Economists argue that businesses (in any industry) simply cannot afford to overlook the effects of globalisation. Having multiple regional top management and a centralised supervisory hub will likely be necessary to maintain the company’s rapid global expansion over the coming years. Source: FNB News

Prioritise efficient aviation sector, not national carrier

Rekindled optimism of the Federal Government to float a new national carrier in the twilight of this administration berates sincerity and real national interest. Characteristically, this administration promised more for aviation development than it has delivered and the telltale signs are all over the industry. But a horridly packaged new national carrier will not assuage inherent poor leadership in the air transport sector nor cover up for policy missteps. In place of another albatross, the Ministry of Aviation should stay focused on realistic developmental policies. 

The project handlers recently came up with the nomination of Ethiopian Airlines owning a major share of the national carrier and much to the displeasure of some stakeholders, including local airline operators that have protested and taken the matter to court. It will be recalled that the new national carrier, already christened Nigeria Air, is one of the electoral campaign promises of Muhammadu Buhari just before 2015.

Added to that was the 2016 pledge by Hadi Sirika, the Aviation Minister, to concession all the airports for efficiency, set up a Maintenance Repair and Overhaul (MRO) facility, attract aircraft leasing companies to Nigeria and build aerotropolis at major airports nationwide. All of those promises only exist in Sirika’s playbook till date.

But a national carrier would always be a sentimental subject, especially for those that saw the defunct Nigeria Airways in its heydays. Airliners, branded in national colours, are always elegant assets and national pride globally. They are synonymous to having embassies in motion, showcasing the splendor and economic powers of a country in diplomatic space.

With over 100 Bilateral Air Service Agreements (BASAs) already racked up by Nigeria, it means 100 potential markets for a new national carrier to operate commercially and unhindered by the aeropolitics that often clip the wings of designated flag carriers.

As patronising as the venture sounds, the logic is flawed. Airline business is high-capital intensive and too expensive a bill for national pride alone. A new aircraft costs an average of $80 million and the industry, in good times, has a profit margin of about five per cent return on investment. That explains why economic superpowers like the U.S., UK, France, among others, have over the years shared the burden of ownership with the private sector.

Even the most successful airline in Africa – Ethiopian Airlines – once hinted of plans to divest both assets and liability to enhance chances of survival. Apparently with that in mind, the Outline Business Case of the proposed Nigeria Air has a joint partnership between the state and private sector, with the latter expected to bear as much as 95 per cent of ownership.

But the project has been a hard sell for Sirika and his team of consultants who have been unable to convince stakeholders and investors alike. It is on record that only Ethiopian Airline (ET) expressed interest in the Nigeria Air project globally when Nigeria called for bidders, taking advertorial pages in international newspapers.

Perhaps their first error was to unilaterally conceive and christen the new airline in London, far away from the glare of Nigerians that only welcome it with vitriolic criticism. It couldn’t fly until COVID-19 caught up with it and it has since remained a hard nut to crack, failing to take-off in five attempts.

If it was difficult convincing credible investors before COVID-19, it must be more difficult now in a world ravaged by economic downturns of Russia and Ukrainian war. The timing is also wrong for the Nigerian economy that is in recession and borrowing to augment one-third of its 2022 budget amid an almost100 per cent debt-to-revenue ratio.

The national carrier has also proven its capacity for prodigality. In the last five years, the project has racked up an estimated N15.9 billion in budgetary votes, though Sirika has lately countered that only N352 million was approved and another N299 million for Transaction Advisers and Consultants.

It is a shame that the incubation phase of the national carrier has taken forever where the likes of Ibom Air, owned by Akwa Ibom State government, started small in about a year of conception and earned a major stake in Nigerian domestic airspace.

How come the likes of Boeing and Airbus plane manufacturers are not showing interest or signing deals to avail brand new aircraft to launch the new carrier like Boeing has done in Ghana? Why are the local stakeholders that earlier warmed up to the project turning their backs on it, describing it as “Sirika’s project” and a giveaway to ET that is already an operator and fellow competition on the continental space? The minister should be answerable and made accountable for every penny spent on the project to date.

Tellingly, the minister has failed in his remit. Though he came in as an aviator and has been the longest serving helmsman, his deliverable has been less than convincing. As an aviator that understands the prevailing operating environment, he knows that there are too many booby-traps in the local environment that hobble the growth of all operating carriers, including the proposed national carrier.

There are perennial problems of decrepit airport infrastructure, low capacity and aircraft underutilisation, multiple taxation, multiple destinations for foreign carriers, foreign exchange scarcity to fund aircraft maintenance and buy spares, scarcity and hike in the cost of aviation fuel. As a ministry in particular and government in general, what solutions or policies have been proffered to ameliorate these problems to save the sector from imminent collapse?

The foreign airlines are exploiting Nigerian air travellers through hike in airfares and the stuck fund window; does that bother local authorities? It is not enough for a government to blame unanticipated challenges for its woes. The actual business of governance and leadership is to solve those problems and not give excuses that are typical of charlatans.
  
Surely, the local operating environment is not homely for a new national carrier notwithstanding its benefits. And to save our cash-strapped country from another round of wastages, more legal fireworks and heartaches in the post-Buhari era, it is safe to ditch the national carrier plan for now.

Rather, Sirika, the ministry of aviation and relevant stakeholders should pay closer attention to policy formulation for the development of the sector and the economy at large. Successful aviation sectors, in other parts of the world, are designed to complement other sectors like tourism, logistic services, agriculture, mining and so on. Aviation in Nigeria needs such a robust template and problem-solving leadership to turn the corner and have an enviable sector for all to thrive. A new national carrier, no matter how well-intentioned, will not fill that void.

Source: The Guardian

Ethiopian to restore full China capacity from start of March

Ethiopian Airlines will next month lift capacity on its China flights and restore frequencies to pre-pandemic levels from the start of March following the recent easing of Covid travel restrictions in the Asian country.

The African carrier will be one of the first international operators to restore pre-Covid capacity levels to China since restrictions, including the requirement for visitors to quarantine, were eased earlier this month.

China was a key market for Ethiopian prior to the pandemic with the carrier serving Beijing, Chengdu, Guangzhou and Shanghai. Cirium schedules data shows it has been serving all four cities since November, albeit at much lower frequencies.

It will now from 6 February lift to daily its service to Guangzhou, before restoring frequency to 10 flights a week from the start of March. Ethiopian will lift frequency on its Beijing and Shanghai service to four flights a week next month and restore daily links from 1 March. It will also add back a fourth weekly flights to Chengdu, restoring to 28 its weekly China services.

Ethiopian Airlines chief executive Mesfin Tasew says: ”China is one of the largest markets for Ethiopian Airlines outside Africa, and the increase in flight frequencies will help revive the trade, investment, cultural and bilateral cooperation between Africa and China in the post-Covid era.”

He adds: “We are keen to further expand our service to China going forward.”

Ethiopian also operates cargo flights to Guangzhou, Changsha, Shanghai, Zhengzhou and Wuhan.

International carriers, particularly in Europe and North America, are largely yet to commit to restoring China capacity  despite the easing in travel rules. Though China lifted the most onerous of Covid travel restrictions, PCR testing remains in place – while many countries have reimposed a testing requirement of their own on Chinese arrivals amid the surge in Covid cases which has followed China’s dropping of its zero-Covid policy.

Source: Flight Global

Tanzania five years away from joining open skies

The five-year timeframe will be crucial for indigenous operators to more suitably and strategically get ready to compete equally with other African major airlines.

Dar es Salaam. Foreign airlines will have to wait for at least five years to start carrying passengers from Tanzania to another country while en-route to/from a home country, as the government demands more time before opening the skies.

Like other African countries that are protecting domestic operators, currently, a foreign airline can carry passengers from its country of origin, land in Tanzania and pick up traffic to the airline’s home country, but not to other foreign countries.

However, under the Yamoussoukro Decision of 1999, African countries want to do away with protectionism by opening up Africa’s skies and creating a unified air transport market for the continent.

Asked about the government’s position on the long-awaited plan, Transport permanent secretary Gabriel Migire told The Citizen yesterday that Tanzania will do so gradually.

“Liberalisation of African skies is a good idea but we need to open it strategically,” Mr Migire responded to the question.

“Let’s give ourselves five years to pave the way to preparing local operators to compete fairly,” he added.

Until last month, 34 of the African Union (AU)’s 55 members, representing about 80 percent of Africa’s airline traffic, had indicated support for the Single African Air Transport Market (SAATM), according to official data.

Of those, 17 have ratified their commitment and are involved in the pilot implementation project (PIP). They are Kenya, Ethiopia, Rwanda, South Africa, Cape Verde, Côte d’Ivoire, Cameroon, Ghana, Morocco, Mozambique, Namibia, Nigeria, Senegal, Togo, Zambia, Niger and Gabon. Mr Migire promised that the government will try its level best to create an enabling business environment for domestic operators to be competitive.

He said that his ministry was preparing the Air Transport Stakeholders meeting slated for the end of this month or earlier next month.

During the meeting, stakeholders will discuss challenges that they are grappling with and chart a way forward.

“It is advantageous to open the African skies as competition will drive operating efficiencies, which, in turn, will reduce the cost of air transport and the cost of doing business (in Africa),” said Mr Migire.

Tanzania Air Operators Association (Taoa) executive secretary Lathifa Sykes cautiously welcomed positive changes.

“We are open for positive changes. But the government must ensure that domestic operators and the economy at large do not lose,” cautioned Ms Sykes as she spoke to The Citizen yesterday.

She further added: “The government needs to create a conducive environment for us to be competitive. As of now, we can’t compete.”

She was of the view that the government should look at other countries’ laws and policies so that all African countries could be on the same page and eventually compete on a level playing field.

Aviation expert with decades of experience Juma Fimbo welcomed the government’s decision to give itself five years before ratifying the Yamoussoukro Decision.

During the period, he opined, efforts should be made to promote local airlines and attract foreign investors to come here and invest in Tanzania’s aviation industry.

“Ratifying the Yamoussoukro Decision before preparing local players for competition will be like killing our own aviation industry and economy at large,” warned Mr Fimbo.

To put things into perspective, walking the talk on the Yamoussoukro Decision could mean providing freedom to carry traffic between two foreign countries on a flight that either originated in or is destined for the carrier’s home country.

This suggests that Tanzania’s airlines would now have to compete for customers with giant airlines like South African Airways, Ethiopian Airlines, EgyptAir, Royal Air Maroc, Air Algerie and Kenya Airways.

Going by the Tanzania Civil Aviation Authority (TCAA) data, Tanzania’s aviation industry is predominated by Air Tanzania Company Limited (ATCL) – commanding 52.9 percent of market shares, followed by Precision Air and Auric Air with 22.8 percent and 10.3 percent respectively.

With three percent of local market share, Coastal Travels was ranked at fourth place in 2021, followed by As Salaam Air at 2.8 percent, while other airlines shared 8.6 percent of the market shares.

The open skies for Africa concept was first mooted by the World Bank in November 1988 and adopted by the then Organisation of African Unity (OAU) as the Yamoussoukro Declaration.

A lack of support from member states of the OAU and its successor, the African Union (AU), saw it undergo changes in 1999 and again in 2016 when it was repackaged as SAATM and launched by the AU in 2018.

Iata supports the opening up of Africa’s skies and the associated regulatory reform to create greater connectivity.

Source: The Citizen

UAE tour operators gear up for surge in Chinese tourists as China reopens borders

Dubai: Tourism companies in the UAE are gearing up to welcome back Chinese tour groups who were absent for three years since the pandemic struck. Travel companies are saying that the expected surge in visitor numbers, which reached nearly a million in Dubai in 2019, will begin in March this year. And after a brief slowdown during the summer months, the number of travellers from Asia’s leading economy is expected to spike exponentially after September 2023.

Beijing eased restrictions at borders, that have been all but shut since the start of the COVID-19 pandemic, on January 8.

Immediately after, a handful of business and leisure travellers, including those who wanted to meet their families, have booked tickets to the UAE, said Vishwajith Das of Oriental Hope Tourism and Travel. “We are yet to see a huge surge in bookings from China from large tour groups. We are confident activity will pick up in March this year,” said Das.

“Pre-pandemic, there is usually a flurry of tourist activity from China during the Chinese New Year. Celebrated from January 21 to 27, large tourist groups usually come to the UAE during this time,” stated Das. The initial uncertainty, exorbitant airfares and lack of affordable direct flights which connect both countries are reasons for the slow start to tourist activity. “There are limited forward bookings for China-UAE flights as well. But return economy airfares are priced at Dh6,000 and above. Travellers are waiting for fares to come down,” said another travel agent.

High fares deter travellers

A direct Air China flight departing from Beijing on January 19 and returning on January 27 costs Dh6,095. An Etihad Airways direct flight from Beijing to Abu Dhabi is priced at Dh4,165 for the same dates. Connecting flights are relatively cheaper. Egypt Air operates a flight from Guangzhou to Sharjah with a layover in Cairo. Airfares on this route are at Dh3,782. However, this flight has a wait time of 14 hours and 45 minutes in Egypt.

Airfares taper down from Dh4,165 and Dh6,095 to Dh2,844 to Dh3,681 in the first week of March (for a flight from Shanghai to Dubai). However, very few carriers are yet to provide a direct service.

Flag carriers Emirates and Etihad have announced plans to increase their operations between UAE and China in the coming months. That should ease connectivity and boost demand.

Large groups to buoy tour business

Dubai welcomed almost 17 million visitors in 2019, with Chinese visitors making up 990,000 of that number ― an increase of nearly 15 per cent over the previous year. However, the past three years have been tough for companies operating in the Chinese market. “In 2019, we had two large groups of Chinese travellers coming into the UAE almost every day during the peak season, which is from September to March,” said Das. The group size of Chinese tourists ranges from 10 to 30 travellers. They stay for four to eight days, he said.

Das’s company has been operating in the UAE-China tourism market since 2015. “Business has been slow since 2020. We are eagerly anticipating the arrival of Chinese tourists,” he said.

A mix of business and leisure tourists is expected from China. “The business travellers market is pretty big as many Chinese investors and business persons want to expand their business into the UAE. This category brings in a steady stream of visitors,” another Abu Dhabi-based travel expert said.

“In the leisure sector, large Chinese tour groups who will arrive in March and after September will act as a saving grace for struggling travel companies,” added the source.

Rashid Abbas, Managing Director of Arooha Travels, said, “Chinese travellers have visa on arrival for 30 days, and that makes UAE a desirable destination for them. The leisure travel industry will pick up in demand. However, I predict it will take some time.”

There needs to be more demand for travel towards China from the UAE. “We do not see any leisure bookings for now. There are very few future bookings as well. We suspect traveller confidence should pick up in the coming months,” a travel agent told Gulf News.

Grand celebrations in UAE

The Chinese community in the UAE is gearing up to celebrate the Chinese New Year. Several entertainment activities have been planned for the festival in anticipation of visitors, including a concert with participation from 500 overseas Chinese performers at the Dubai Opera on January 8.

The Chinese Consul-General to the UAE, Li Xuhang, revealed that Expo City Dubai would host the “Happy Chinese New Year” Grand Parade on January 14, coinciding with the Chinese New Year on January 22.

Source: Gulf News