IATA and Outpayce help airlines accept account‑to‑account payments

Outpayce, a venture launched in 2023 to improve Amadeus’ travel paymens sector, has partnered with IATA to enable airlines to accept account-to-account (A2A) payments.

Recent regulations in many markets make it possible for merchants to accept payment from consumers using direct, account-to-account transfers. As airlines seek to best meet the needs of travelers and reduce the overall cost of payments, account-to-account payments are becoming very popular, and they represent a new option for travelers to pay for air tickets.

That’s why IATA and Outpayce are partnering so airlines can now accept payments made with IATA Pay through Outpayce’s Xchange Payments Platform (XPP).

IATA Pay is an alternative account-to-account form of payment for travelers to pay for air tickets purchased online by directly debiting their bank account. It leverages the new account-to-account rails and regulations developed by countries around the world such as India (UPI), the Netherlands (Ideal), Brazil (PIX) or Philippines (QR Ph). Currently available in over 30 countries, IATA Pay improves the speed and security of payments, while reducing payment acceptance costs.

When a traveler reaches checkout on an airline’s website the new account-to-account payment service allows them to select their bank or scan a QR code depending on the country. IATA uses the payment and bank details or the QR code’s approval to request a transfer from the passenger’s account and the funds are transferred using the banking rails. IATA settles the funds with the airline the following day.

Juan Antonio Rodriguez, Director Financial Settlement Operations, IATA said: “The trend towards account-to-account payments is gaining more momentum. It provides a seamless experience for passengers and provides an attractive option for airlines to lower the cost of payment acceptance. Through Outpayce, airlines using XPP can begin to accept IATA Pay while still benefiting from XPP’s powerful orchestration, analytics and reporting capabilities.”

Anna Isabel Bengzon, Chief Financial Officer, Philippine Airlines said: “We are pleased to now accept IATA Pay in the Philippines. It will provide our passengers a more convenient and secure way of paying via QR code using their digital wallets, which is highly prevalent in the country, or through their bank accounts. Outpayce’s XPP system helps us to intelligently accept a wide range of payment methods used by travelers across the international markets we serve. Moreover, we can access various payment methods and partners through XPP, with detailed analytics on the performance of payment flows and back-end reconciliation support.”

Jean-Christophe Lacour, SVP and Head of Product Management & Delivery, Outpayce added: “We’re committed to helping travel companies accept the widest possible range of payment methods through a single connection to XPP and IATA Pay represents an interesting new option for the industry. By making it easier for partners to connect to XPP using self-service APIs we intend to broaden this choice even further.”

IATA is one of the first partners to connect to Outpayce’s Xchange Payment Platform using its new self-service APIs, being piloted in 2024. The addition of self-service APIs helps to open XPP, making it easier for any payments or fintech company to connect its services, which increases choice for travel companies and further optimizes payment orchestration.

Source:  Outpayce  

Ethiopian Airlines to Add Dhaka, Bangladesh, to its Expanding Global Network

Ethiopian Airlines, Africa’s leading carrier, is pleased to announce the commencement of its new six weekly flights to Dhaka, Bangladesh, starting November 1, 2024. The new service will be operated with the state-of-the-art Boeing B787 Dreamliner, offering passengers a comfortable and seamless travel experience.

This new route will further strengthen Ethiopian’s presence in South Asia, providing convenient connections between Bangladesh and key destinations across Africa and beyond. The new flights are scheduled for convenient departures from Addis Ababa and arrivals in Dhaka, facilitating smooth connections and a seamless travel experience.

The flight schedule is as follows: Press Release

Press Release – Ethiopian Airlines to Add Dhaka, Bangladesh, to its Expanding Global NetworkDownload

ALTF 2024: UNWTO Africa collaborating with stakeholders to eliminate travel connectivity barriers.

The United Nations agency focused on tourism, UNWTO says that despite the growth of tourism in Africa, connectivity—the ease with which people can travel between locations—remains a challenge.

Speaking at the opening ceremony of the 7th Edition of the 2024 Africa Tourism Leadership Forum (ATLF), the UNWTO Regional Director for Africa, Elcia Grandcourt, said that the organisation is working with stakeholders to simplify visa entry requirements, leverage innovative systems to digitalise visa procedures, and advocate for a single, unified air transport market.

She emphasised, “Despite the growth, connectivity has been identified as a key issue that needs to be addressed to fully unlock Africa’s tourism potential. This was reiterated by Ministers of Tourism at the 67th Regional Commission Meeting for Africa, held in Zambia in July. Enhancing connectivity for seamless travel will not only attract more international tourists but also boost intra-regional tourism, a crucial element for the continent’s tourism growth.”

Grandcourt further stated, “UNWTO remains committed to addressing this issue and will continue working closely with national administrations of member states, regional and international organizations, as well as public and private sector stakeholders.”

Botswana’s Vice President, Slumber Tsogwane said the country is investing in developing its tourism sector, proudly touting Botswana’s beef as the best in the world.

He said, “Tourism in Botswana is a major contributor to the national economy, which is why the government has reviewed its Tourism Policy and developed a National Tourism Strategy and Master Plan to provide a framework for sector growth.”

He concluded by inviting participants to experience Botswana’s unique offerings, stating, “I trust you will have a chance to taste our beef, which is unparalleled globally, experience our cultural diversity, and take home our crafts as memories of Botswana.”

Kwakye Donkor Chief Executive Officer of Africa Tourism Partners (ATP), the organizers of the forum, reaffirmed ATP’s commitment to helping African nations unlock their tourism potential.

Director of Trade in Services, Investment, IPR & Digital Trade at AfCFTA, Emily Mburu-Ndoria encouraged countries to implement mechanisms to capitalize on tourism and outlined AfCFTA’s ongoing support initiatives.

The Africa Tourism Leadership Forum (ATLF) is a key Pan-African platform that brings together leaders from Africa’s travel, tourism, hospitality, and aviation sectors.

The forum focuses on sharing insights, developing strategies to boost intra-African travel, and fostering networking opportunities. It also aims to strengthen the global brand of “Destination Africa” and promote tourism growth across the continent.

Source: Joy online.

Key Stakeholders Convene for Consultative Workshop on Cruise Tourism in Seychelles

The Seychelles Tourism Department, in collaboration with the United Nations Economic Commission for Africa (UNECA), hosted a two-and-a-half-day consultative workshop starting on Tuesday, 20th August, to evaluate the cruise tourism sector in Seychelles. The workshop aimed to assess the cost-benefit aspects and strategic potential of this growing industry.

Following a situational analysis conducted by UNECA in April 2024, the delegation returned to present their preliminary findings and report, with the workshop serving as a platform for key stakeholders to engage, provide insights, and contribute valuable feedback.

Leading the inaugural discussions were UNECA’s Professor Pius Odunga, Ms. Carine Rukera, and Dr. Geoffrey Manyara alongside Mr. Paul Lebon, Director General for Destination Planning and Development within the Seychelles Tourism Department, who officially opened the event.

The workshop focused on evaluating the current state of the cruise tourism sector, including infrastructure, services, and market trends. Participants explored the challenges and opportunities within the sector, focusing on environmental, social, and economic impacts.

Additionally, participants got the opportunity to work on enhancing collaboration among government agencies, local businesses, and communities. The workshop also sought to develop actionable recommendations and a strategic plan to guide sustainable growth in the sector.

In her opening remarks, Ms. Rukera highlighted the importance of understanding both the financial benefits and costs associated with cruise operations. She stated, “As we engage with all of you present in these few days, it will be imperative to understand financial benefits and costs associated with cruise operations to be able to grab the sector’s overall impact on the Seychelles economy and local economies.”

Ms. Rukera also reaffirmed UNECA’s strong commitment to collaborating with the government of Seychelles to achieve sustainable development and fully capitalise on the opportunities presented by cruise tourism. She acknowledged the crucial role of the participants’ dedication and expertise in advancing actionable strategies and recommendations for optimising the economic impact of cruise tourism.

Mr. Lebon, in his opening reflections, clarified that the workshop, at this stage, is not intended for validation but is open to suggestions and recommendations.

As part of the workshop’s primary objectives, he highlighted the importance of assessing the current state of the cruise tourism industry in Seychelles, including infrastructure, services, and market trends.

He acknowledged the relevance of risks, such as environmental, social, and economic challenges, and noted the persistent concern of piracy in the Indian Ocean. He indicated that while the situation is currently under control, it remains a potentially volatile point.

The first day of the workshop featured keynote presentations on global trends, sustainability practices, and relevant case studies, followed by panel discussions with government officials, industry leaders, environmentalists, and community representatives. The second day was dedicated to strategic planning, with breakout sessions on infrastructure development, environmental management, marketing strategies, and community engagement.

The workshop concluded with a plenary session where outcomes from the breakout sessions were presented and discussed to prioritise actions and plan the way forward. The consultants are anticipated to return during the fourth quarter of the year to conduct the validation process and present the final report.

Given the global nature of the cruise industry, where destinations like Seychelles have limited bargaining power, UNECA is working on strategies to improve the financial outcomes for Seychelles.

Source: Voyages Afriq.

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

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.

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.  

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

Africa Tourism Leadership Forum 2024 set to chart a new path for intra-Africa travel, tourism & investments.

The Africa Tourism Leadership Forum (ATLF) 2024 is scheduled to take place from September 3rd to 6th at the Gaborone International Conference Centre, Grand Palm, in Gaborone, Botswana.

This year’s theme, “Charting a New Path Forward for Intra-Africa Travel, Tourism & Investments,” reflects the forum’s commitment to fostering sustainable growth and collaboration across Africa’s travel, tourism, and investment sectors.

ATLF is a premier Pan-African dialogue platform that brings together influential stakeholders from the travel, tourism, hospitality, and aviation sectors. The forum serves as a unique opportunity for industry leaders to network, share insights, and develop strategies to boost intra-Africa travel and tourism, thereby enhancing the brand equity of “Destination Africa.”

The 2024 edition of ATLF will focus on three thematic areas: Sustainable & Inclusive Tourism, Boosting Intra-Africa Travel, and Driving Economic Growth. These themes are designed to ensure that tourism development benefits all stakeholders, especially local communities, and contributes to the continent’s economic integration and growth.

The ATLF Awards, a highlight of the forum, will recognize and celebrate innovation, excellence, and transformative initiatives pioneered by Africans, for Africans, in Africa. Attendees will have access to investment opportunities, innovation showcases, and educational sessions led by industry experts.

As Kwakye Donkor, CEO, aptly puts it, “The future of African tourism lies in our ability to chart a new path forward, one that prioritizes sustainability, inclusivity, and collaboration. ATLF 2024 is poised to be a transformative dialogue that will shape the future of African travel, tourism, and investments.”

Building on the success of ATLF 2023, which saw over 500 participants, including thought-leaders, media, travel trade, industry practitioners, hoteliers, policymakers, and renowned experts, ATLF 2024 promises to be an even more impactful event.

The forum will feature insightful discussions, networking opportunities, and practical sessions on topics such as:

– Sustainable & Inclusive Tourism

– Boosting Intra-Africa Travel

– Driving Economic Growth

– Investment opportunities in tourism and hospitality

– Educational sessions led by industry experts

Join us at ATLF 2024 to be part of a movement that will drive sustainable growth and collaboration across Africa’s travel, tourism, and investment sectors.

Source: Voyages Afriq.