Aviation stakeholders urge MPs to reject proposed tax on air travel services

Stakeholders in Kenya’s aviation sector have opposed the proposed introduction of a 16 per cent Value Added Tax (VAT) on several services within the industry, urging Members of Parliament to reconsider the move.

The proposed VAT would affect a wide range of services, including aircraft services, spare parts, air ticketing, and certain tourism-related activities, raising concerns about its potential negative impact on domestic travel and the broader tourism sector.

Among the services set to be taxed are aircraft with an unladen weight exceeding 2,000kgs but not exceeding 15,000kgs, direction-finding compasses, aircraft appliances, and spare parts imported by aircraft operators.

Additionally, services related to the leasing and chartering of aircraft (excluding helicopters), as well as air ticketing services provided by travel agents, would also face the new tax.

The International Air Transport Association (IATA) has strongly advocated for the retention of the current VAT exemptions, arguing that the proposed changes could undermine the growth of domestic and regional travel.

Significant investment risks

During their presentation before the National Assembly’s Finance Committee on Wednesday, IATA officials noted that the high cost of acquiring aircraft already adds significant investment risks, discouraging potential investors.

“If all aircraft remain exempt from VAT, we can expect an increase in domestic travel volumes, which will lead to higher collections from air passenger service charges. Additionally, VAT earnings from hotels, meals, and accommodation services will see a sustainable increase, benefitting the Kenya Revenue Authority (KRA),” IATA representatives stated.

Similarly, the Kenya Association of Travel Agents (KATA) voiced its opposition, stressing that the VAT proposal could disrupt the entire tourism value chain.

KATA warned that increasing the cost of both domestic and international travel would reduce the affordability of trips for tourists, diminishing Kenya’s competitiveness in the regional market.

“This will significantly raise operating costs for the air travel sector and, by extension, the cost of travel within Kenya and abroad,” KATA representatives said.

The association also pointed out that many businesses in the tourism industry rely heavily on air travel services, which are often facilitated by local travel agencies. These agencies play a crucial role in the broader tourism ecosystem, supporting various stakeholders in the industry.

In addition, KATA highlighted that Kenya is already facing stiff competition from other safari destinations like South Africa, Zimbabwe, Botswana, and Tanzania, which have adopted more favourable tax and fee structures for intra-Africa travel.

Both IATA and KATA have urged MPs to reconsider the proposed VAT imposition, arguing that it would undermine the Kenyan tourism sector’s growth and the aviation industry’s ability to thrive.

They further noted that many other African countries have created legislative frameworks designed to reduce travel and tourism costs, thus promoting a competitive advantage in the region.

Source: Eastleigh voice   

Muscat And Nairobi SalamAir Expands Its African Network With Affordable Nonstop Flights Starting February 2025

SalamAir launches affordable nonstop flights between Muscat and Nairobi starting February 2025, connecting Oman and Kenya for tourism, trade, and travel.

SalamAir, Oman’s leading low-cost airline, has unveiled its latest route, adding Nairobi, Kenya, to its growing network of destinations. The direct flights, set to commence in February 2025, will connect Muscat and Nairobi, offering travelers an affordable and convenient way to explore Kenya’s rich culture, breathtaking landscapes, and bustling economy. With fares starting at just 49.99 OMR, SalamAir continues to redefine travel by making global destinations more accessible.

The decision to expand into East Africa reflects SalamAir’s commitment to fostering stronger ties between Oman and key regions worldwide. Nairobi, known as the “Green City in the Sun,” is a gateway to East Africa, attracting tourists, entrepreneurs, and business leaders from around the world.

Bridging Cultures and Economies

With two weekly flights, SalamAir aims to enhance connectivity between Oman and Kenya while providing onward access to other destinations. Passengers traveling from Nairobi can seamlessly connect to SalamAir’s extensive network, including India, Thailand, Central Asia, and other major hubs. This new route also offers Omani travelers an opportunity to discover Kenya’s world-renowned wildlife, vibrant cities, and stunning coastal resorts.

Adrian Hamilton-Manns, CEO of SalamAir, shared his enthusiasm about the launch, stating:

SalamAir’s CEO, Adrian Hamilton-Manns, commented: “We are really thrilled to add Nairobi to our expanding network, marking a significant milestone in our expansion into the African market. Nairobi is not only a hub for international travelers but also a growing center for business, technology, and education, making it a vital link for those looking to connect with opportunities in both regions, emphasizing Nairobi’s position as the key gateway to East Africa. With Nairobi added to our network, we can now connect passengers from East Africa to India, Thailand, Central Asia, and other points on our network for very low fares.”

SalamAir’s focus on affordable travel ensures that more people can explore these opportunities, making Nairobi and Oman closer than ever.

Why Choose SalamAir for Nairobi Flights?

SalamAir’s entry into the Nairobi route disrupts the high-priced legacy airline market by introducing budget-friendly fares and convenient services. Whether you’re traveling for business, leisure, or education, SalamAir promises a seamless experience without compromising on quality. Here’s what sets SalamAir apart:

  • Affordable Fares: Starting at just 49.99 OMR, SalamAir’s Lite fare offers unbeatable prices, making travel accessible for everyone.
  • Convenient Connections: SalamAir’s network links Nairobi to destinations across the Middle East, Asia, and beyond, catering to diverse travel needs.
  • Customer-Centric Service: As a low-cost carrier, SalamAir focuses on providing value-driven services, allowing passengers to customize their travel experience.
  • Strategic Growth: By targeting underserved markets, SalamAir continues to expand its footprint while offering affordable alternatives for travelers.

Exploring Nairobi: The Jewel of East Africa

Nairobi is more than just Kenya’s capital—it’s a dynamic city with something for everyone. As SalamAir launches its direct flights, here’s a glimpse of what awaits travelers:

  • Wildlife Wonders: Nairobi National Park, located just outside the city, offers a unique chance to witness lions, giraffes, and rhinos against a backdrop of urban skyscrapers.
  • Cultural Richness: Explore Kenya’s vibrant traditions at the Nairobi National Museum, Maasai markets, and Bomas of Kenya cultural center.
  • Thriving Economy: Nairobi is a hub for technology, trade, and innovation, earning its nickname “Silicon Savannah.”
  • Delicious Cuisine: Savor authentic Kenyan dishes like nyama choma (grilled meat), ugali, and samosas at local eateries.

SalamAir’s new route makes it easier than ever to experience the magic of Nairobi, whether you’re exploring the great outdoors or engaging in business ventures.

Connecting Africa and the World

The introduction of the Muscat-Nairobi route is a testament to SalamAir’s vision of connecting people and cultures. This expansion is part of SalamAir’s broader strategy to grow its network while fostering economic ties between Oman and East Africa. By linking two dynamic regions, SalamAir supports tourism, trade, and cross-cultural exchange, creating opportunities for growth on both ends.

Passengers flying with SalamAir will also benefit from its modern fleet, reliable services, and a customer-first approach. As the airline continues to expand into Africa, it remains committed to maintaining the affordability and quality that have become its hallmark.

SalamAir’s Impact on Affordable Air Travel

Since its inception, SalamAir has revolutionized the aviation industry in Oman by focusing on low-cost travel. By offering budget-friendly options, the airline has enabled more people to explore the world, fostering connections and enriching lives. The Nairobi route is another step in SalamAir’s journey toward making air travel accessible to all.

Affordable Fares That Set SalamAir Apart

For passengers accustomed to high-fare legacy carriers, SalamAir offers a refreshing alternative. With fares up to 70% lower than those of competitors, SalamAir’s Lite fare on the Nairobi route starts at just 49.99 OMR. This affordability opens up new possibilities for leisure and business travelers alike.

By focusing on a low-cost model, SalamAir ensures that travel becomes an option for everyone—not just a privilege for a few. Whether you’re planning a safari adventure, a business trip, or a cultural exploration, SalamAir’s pricing makes it possible to turn your travel dreams into reality.

What This Means for Tourism and Trade

The launch of direct flights between Muscat and Nairobi is expected to have a significant impact on tourism and trade between the Middle East and East Africa. Kenya is a top destination for its wildlife safaris, beach resorts, and cultural heritage, while Oman offers rich history, stunning landscapes, and warm hospitality. By bridging these two regions, SalamAir enables easier travel and opens doors to new opportunities.

Additionally, the route will benefit business travelers, creating a direct link for trade and investment between Oman and Kenya. The increased connectivity is likely to spur economic growth, fostering partnerships that benefit both countries.

Plan Your Journey with SalamAir

With flights beginning February 2025, SalamAir invites travelers to experience affordable, high-quality travel on its new Nairobi route. Book your tickets early to take advantage of the low introductory fares and embark on an unforgettable journey to one of Africa’s most exciting destinations.

Whether you’re drawn to Nairobi’s wildlife, its thriving business environment, or its rich cultural heritage, SalamAir ensures a travel experience that’s budget-friendly, convenient, and enjoyable. Don’t miss this opportunity to explore the wonders of Nairobi with SalamAir.

Key Takeaways

  1. Launch Date: Direct flights between Muscat and Nairobi start February 2025.
  2. Frequencies: Two weekly flights connecting Oman to Kenya and beyond.
  3. Fares: Lite fares starting at just 49.99 OMR.
  4. Opportunities: Affordable access to Nairobi’s culture, wildlife, business, and educational opportunities.
  5. Connectivity: Seamless links to SalamAir’s network, including India, Thailand, and Central Asia.

Source: Travel and Tour World  

Strengthening Aviation in Kenya and Africa Unlocking Africa’s Aviation Potential

Aviation is crucial for global connectivity, economic growth, and regional integration. Yet, Africa, accounting for just 3% of global air traffic, remains underrepresented. Kenya, however, is positioned to lead the transformation of the continent’s aviation sector. Now is the time to act.

Why Africa Needs Aviation More Than Other Continents

Geographic & Infrastructure Challenges: Africa’s vast size & underdeveloped road and rail systems make aviation essential. Unlike continents like Europe or North America, many African regions lack reliable transport options. Aviation bridges these gaps

Economic Integration and Growth: The AfCFTA aims to increase intra-African trade, and better air connectivity is key to realizing this potential. Aviation can enhance movement of goods and people, boosting regional economies. The Yamoussoukro Decision on liberalized air services remains underutilized, limiting opportunities for growth.

Tourism and Job Creation: Africa is home to 8 of the world’s 25 biodiversity hotspots. With aviation, Africa’s tourism industry—already significant in countries like Kenya—can grow further, creating jobs and diversifying economies. Kenya’s tourism contributes $2.2 billion to GDP, and better air connectivity could increase this number.

Overcoming Infrastructure Gaps: Africa’s inadequate land-based infrastructure makes air travel the most efficient way to connect remote regions. Aviation can ensure access to essential services, stimulating economic and social development.

Current Challenges

High operational costs, fragmented markets, and limited regional connectivity.
Lack of investment in both major airports and smaller regional airfields.
Restrictive air agreements that limit competition and service expansion.
Strategic Actions for Growth

Policy and Regulatory Reforms: Embrace initiatives like the SAATM to open airspace and improve trade. Kenya, a regional leader, can foster growth by aligning with ICAO standards and attracting private investment into the sector.

Infrastructure Investments: Modernizing key airports such as Jomo Kenyatta International Airport (JKIA) and smaller regional airfields will improve connectivity, enhance trade, and support passenger growth.

Cost Reduction Initiatives: African airlines should collaborate through alliances or joint ventures to leverage economies of scale and reduce operational costs, making air travel more competitive.

Sustainability: Align with global sustainability standards like ICAO’s CORSIA to mitigate aviation’s environmental impact while supporting growth.

Call to Action
Africa’s aviation sector is primed for transformation. By adopting strategic policies, investing in infrastructure, and fostering regional collaboration, we can position Africa as a leading player in global aviation. The time to act is now.

Easing travel restrictions to boost intra-African trade

Kingsley Ighobor

From Africa Renewal: November 2024 6 November 2024

By: Kingsley Ighobor

At the annual Global Africa Business Initiative (GABI) event, tagged #UnstoppableAfrica and held in New York on the sidelines of the UN General Assembly last September, Africa’s richest man, Alhaji Aliko Dangote, shared how, despite investing over $600 million in a certain African country, he still needed a visa to enter.

“As an investor, as someone who wants to make Africa great, I have to apply for 35 different visas on my passport,” Dangote also lamented during the Africa CEO Forum in Kigali, Rwanda, in May 2024.

For Dangote and many African business leaders, mobility restrictions stymie business; removing them will unlock the potential of intra-African trade, which currently stands at an unimpressive 17 percent—far behind Europe’s 60 percent trade within its borders.

The African Continental Free Trade Area (AfCFTA), unveiled by African leaders in March 2018, is expected to boost intra-African trade and consolidate a market of 1.3 billion people with a combined GDP of $3.4 trillion. The World Bank estimates it could increase Africa’s income by $450 billion by 2035, potentially lifting 30 million people out of extreme poverty.

The AfCFTA could expand Africa’s tax base and its capacity to sustainably manage its approximately $1.1 trillion—and growing—debt, asserts the Brookings Institution, a US-based think tank.

Implementation of the trade pact is progressing well, said Wamkele Mene, the Secretary-General of the Accra-based AfCFTA Secretariat, at the GABI event. With 54 AU member states signed on (only Eritrea has not) and 48 countries submitting instruments of ratification, Mene expects trade to grow significantly, although challenges remain.

Free movement is key

A 2023 AU and UN Economic Commission for Africa (UNECA) study maintains that free movement within the continent is “indispensable for intra-African trade and the region’s integration and development agenda.”

Yet only four African countries—Benin, The Gambia, Rwanda and Seychelles—offer visa-free entry to all African citizens; 33 countries provide visa-free travel to citizens from at least 10 African countries; and 30 countries still require visas for over half of Africa’s nations, according to the 2023 Africa Visa Openness Index, produced by the African Development Bank Group and the AU Commission.

Conceptually, African leaders themselves would like to ease movement restrictions. For example, the AU’s Agenda 2063 envisions “an integrated, prosperous and peaceful Africa.” In 2018, they adopted the protocol on free movement of persons, ahead of the AfCFTA’s entry into force.

As well, the AfCFTA Secretariat identifies “excessive border delays” and “cumbersome document requirements” as non-tariff barriers that must be eliminated to facilitate smoother intra-African trade.

But when trading under the AfCFTA began in January 2021, the free movement protocol was still not in effect. As of October 2024, only 32 countries have signed the protocol, with just four (Mali, Niger, Rwanda, and São Tomé and Príncipe) ratifying it—well short of the 15 ratifications required for it to take effect.

Barriers to Implementation

Why are countries reluctant to ratify the free movement protocol? According to the AU-ECA study, there is limited awareness among states of the economic benefits of free movement. Greater labor mobility could drive intra-African trade, knowledge transfer, capacity building and improved market access for African products and services.

Additionally, many countries lack adequate border management infrastructure, making it difficult to efficiently handle migration flows and enforce security measures.

Also, some states fear that foreign workers may take local jobs or strain public resources like health, education and sanitation services.

Visa fees remain a vital revenue source for many countries, often helping to offset budget deficits. Removing these fees could temporarily impact national budgets, even if free movement might yield greater economic benefits in the long term.

The COVID-19 pandemic has also raised health concerns, with some countries worried that unrestricted cross-border movement could facilitate the spread of diseases, complicating public health management.

The AU-ECA study notes a gap between the protocol on the free movement of persons and the AfCFTA’s emphasis on the free movement of goods and services, expressing concern over the disproportionate focus on the latter. It recommends that both aspects be prioritized.

The path forward

Despite these challenges, there is optimism among free trade area advocates. AfCFTA’s Guided Trade Initiative (GTI), which began in October 2022 with seven countries, has grown to 39 countries, including economic powerhouses South Africa and Nigeria. The GTI is a pilot for the AfCFTA’s legal and operational framework, and its success bodes well for broader goals like the free movement of persons.

The Pan-African Payment and Settlement System (PAPSS), a joint initiative by the AfCFTA Secretariat and African Export-Import Bank (Afreximbank), is facilitating cross-border payments in local currencies and is gradually gaining traction among traders. With over 42 currencies in use among 48 participating countries, PAPSS aims to reduce costs associated with currency exchange, particularly benefiting traveling business leaders and young entrepreneurs.

There is the point of relative integration successes in Africa’s regional economic communities— in the East African Community (EAC) and the Economic Community of West African States (ECOWAS), for instance—that could pave the way for broader continental integration.

In the long term, the launch of the pan-African passport in July 2016 could help tackle mobility barriers. The AU expects citizens to have access to these passports in the future, which will be good news for women traders who constitute about 70 percent of informal cross-border trade in Africa and often face bottlenecks at border crossings.

The stars appear aligned for AfCFTA’s success. A deal of effort has already gone into establishing the legal frameworks for digital trade, rules of origin, a dispute settlement mechanism and so on, as well as instruments such as the PAPSS and the African Trade Observatory, an information portal.

Mene emphasizes more effort will be needed to persuade states to ease restrictions on the movement of persons.

Source: Africa Renewal

Skyward Express launches Nairobi to Dar es Salaam flight

Skyward Express has launched its Inaugural flight from Jomo Kenyatta International Airport (JKIA) to Julius Nyerere International Airport in Dar es Salaam, Tanzania.
The 109-seater capacity Fokker 100 jet will offer passengers a luxurious experience as they visit one of East Africa’s premium destinations that offer business opportunities, a rich cultural heritage, diverse wildlife and historical heritage.


Transport Cabinet Secretary Davis Chirchir echoed the commitment by Skyward as a premium airline by a local Investor with regional flight in a space that was previously thought to be dominated by international investors as it serves remote flight routes in the Eastern African Region.

Source: Standard Media  

Emirates ramps up operations in Africa to serve growing demand

Emirates, the world’s largest international airline, has further bolstered its presence across Africa, with the introduction of additional flights to Entebbe, Uganda; Addis Abba in Ethiopia; and Johannesburg, South Africa.

Since the inaugural flight into Africa with Cairo as its first destination in 1986, Emirates has progressively grown its presence on the continent and now serves 20 passenger and cargo gateways, boosting Africa’s connectivity and air transport market development. 

Adnan Kazim, Emirates’ Deputy President and Chief Commercial Officer said, “Africa has long been a priority region for Emirates, and we will deepen our strategic focus of expansion and continued investment on the continent, as an important anchor for our future network. The introduction of frequencies to our existing points in Uganda, South Africa and Ethiopia help support the region’s growth and provide critical links using Dubai as a key gateway to emerging economies across Asia and the Middle East.

“Over the last 30 years Emirates has played a pivotal role in the development of the region’s aviation and tourism sectors, not just through scaling our operations but by establishing strategic partnerships with local governments, tourism boards and likeminded airline partners across the travel ecosystem, to nurture the industry and realise its untapped potential.”

Increasing frequencies to maximize connectivity From 27 October, Emirates ramped up operations between Dubai and Uganda from five weekly flights to a daily service. Operated via a Boeing 777-300ER the additional flight will add 718 seats to and from Dubai-Entebbe every week, connecting to popular onwards destinations from Dubai such as Canada, the US, India and the UK, to name a few. As the only airline offering First Class in and out of Entebbe, the additional flights will enable more passengers to experience Emirates’ unrivalled experience with luxurious touches, a premium gastronomic selection of dishes and fine beverages, and one of the biggest screens in the sky, all in midst of comfort and privacy.

The move builds on Emirates two-decade long commitment to Uganda, a vibrant gem on the airline’s vast global network and up and coming tourism destination. At the 2024 Arabian Travel Market, Emirates signed an MoU with the Uganda Tourism Board, aiming to encourage a diverse range of international travellers to experience the destination’s abundance of natural, cultural and adventure attractions. The additional frequency will further support this, as Uganda continues to invest in building its tourism proposition.

Ringing in the new year, Emirates will also increase frequency in Ethiopia, with a daily flight connecting Dubai and Addis Abba from 1 January 2025. Visitor numbers to Ethiopia continue to grow, guided by the vision to make Ethiopia one of the top five tourist destinations in Africa by 2025. By boosting its flight frequencies, Emirates will provide more convenient access, particularly for travellers from the Middle East and Far East.

This will be swiftly followed by the fourth daily flight to Johannesburg, which, from 1 March 2025, will introduce a morning slot to and from South Africa’s largest and busiest international airport. The additional flight brings Emirates’ operations back to pre-pandemic levels, with 49 weekly flights into South Africa, one of the airline’s most in-demand destinations in Africa.

Once the additional frequencies are activated, Emirates will provide 161 weekly flights between African destinations and Dubai.

Tickets can be booked now on emirates.com, the Emirates App, Emirates Retail stores, Emirates contact centre, or via travel agents.

Expanding the network to serve more of Africa With 17 countries in Africa and a further 63 countries and territories globally, Emirates offers near-unrivalled connectivity, further amplified by its extensive partnership network. In Africa, the airline’s footprint expands to over 210 regional points through 5 codeshare and 18 interline partners, providing access to more regional points via frictionless, one-ticket travel and simplified baggage throughput.

As an example, in 2023 Emirates signed an interline agreement with Royal Air Maroc, providing travellers with 18 additional domestic points in Morocco, such as Fez, Tangiers, Marrakech and many others, as well as an additional 17 routes beyond Dubai on an interline basis.

In addition to offering access to smaller regional points across the continent, Emirates’ partnerships unlock access to unique and exclusive destinations too. Through its interline agreement with South African carrier Cemair, Emirates enables customers to visit stunning leisure points such as Margate and Plettenberg Bay, while Pro Flight Zambia unlocks once-in-a-lifetime safari experience in Lower Zambezi National Park.

Earlier this month, Emirates made its much-awaited return to Lagos, connecting Nigeria’s economic hub to its global network with a direct, daily flight. Enhancing premium travel options, Emirates is one of only two airlines offering First Class in and out of Lagos.

The airline’s cargo arm, Emirates SkyCargo, will also benefit from the additional passenger flights, which complement its eight weekly scheduled freighters enabling the swift, efficient and reliable movement of goods from Africa to the world. Providing unmatched flexibility to meet demand, Emirates SkyCargo deploys its freighters between six African destinations, to boost the cargo capacity as required. Likewise, to better manage capacity, Emirates SkyCargo moves general cargo from Johannesburg to Cape Town and Durban via trucks, to ensure goods move on customer’s timelines; the additional passenger flights will address these capacity constraints in each market, as the airline prepares for future growth, with the delivery of new freighters up until the end of 2026.

Source: Breaking Travel News

Air travel survey: Flight times and length drive booking choices

October 29, 2024

A recent BCD survey found that business travelers prioritize flight departure time, arrival time, and length when it comes to booking air travel. Convenience, flexibility and price also rank as top priorities. The survey, from August 2024, gathered insights from over 1,300 business travelers who took to the skies in the past 12 months.

Convenience is key

When it comes to air travel, convenience is a top priority. From seat selection to checked baggage, many travelers are willing to pay for extra comfort and flexibility. In fact, nearly half of those surveyed are opting for fully or partially refundable tickets, allowing them to manage unpredictable travel plans without stress. Priority boarding, fast-tracked security, and extra legroom also rank high among add-ons that business travelers are happy to splurge on. Negotiate for these amenities in your supplier conversations.

What influences flight choices?

No surprise here. Price is a major influence on flight selection, with 51% of travelers agreeing it affects their decisions. Four out of 10 travelers prioritize finding the cheapest flight available, even if it comes at the cost of fewer flexible options. The balancing act between comfort and cost continues to challenge corporate travelers, something to keep in mind when shaping travel policies.

But what stands out even more is how the time of departure, flight duration, and employer policy impact decisions. In fact, 71% of respondents cite scheduling as the most important factor, highlighting the need for policies that align with both traveler preferences and corporate goals. While some situations are unavoidable or out of anyone’s control, employers can improve the employee experience by making adjustments to their travel policy.

“A travel policy has the potential to drastically influence employee wellbeing and satisfaction,” said Teri Miller, executive vice president, Global Client Team at BCD. “Adding ancillaries covered by the company like priority boarding or lounge access can make traveling for work more enjoyable and less stressful for employees. Allowing a flexible schedule, work from home or time off after a business trip can also help your employees adjust after returning home.”

Class and duration: A snapshot of business travel

The majority of travelers use air travel for trips between two and six days. For short-haul flights under six hours, 88% of travelers opt for economy class. Business class, while more luxurious, is typically reserved for long-haul flights, with three out of 10 travelers choosing this option for extended trips. The survey’s data around service classes can offer valuable insights for organizations seeking to optimize both traveler comfort and cost-efficiency.

A sustainable approach?

Sustainability is a growing concern in the travel industry, but may not always be top-of-mind for business travelers. While 66% of respondents opt for direct flights (which are both convenient and eco-friendly), few actively choose flights based on carbon emissions, and only 16% are trying to fly less. With two-thirds of respondents admitting they rarely or never consider sustainability if it raises costs, there’s clearly room for improvement.

Olivia Ruggles Brise Vice President of Sustainability BCD

“From our last buyer survey on travel policy, we saw that nearly a quarter of buyers rank making their policy more sustainable as a top priority,” said Olivia Ruggles-Brise, vice president of Sustainability at BCD. “However, this research shows that travelers themselves are not prioritizing sustainability in the same way. Travel managers can influence their travelers’ behavior through encouraging or mandating sustainable measures, which often go hand in hand with traveler wellness. Direct flights, for instance, are more sustainable and less stressful for travelers. Though they may come at a higher cost, direct flights result in less emissions than indirect or stopover flights. On the other hand, while business class is better for traveler comfort, it may not be the most sustainable option. Prioritizing only trips that are vital and choosing business class for those trips can strike a balance, benefiting both traveler wellness and sustainability.”

Addressing traveler challenges and wellbeing

Nearly 70% of travelers report being satisfied with their company’s travel policy and preferred suppliers. However, challenges remain. From booking user-unfriendly tools to low-cost airlines that impact comfort, corporate travelers face frustrations that can hinder productivity. Travelers also experience physical discomfort, especially with overnight flights and long-haul drives immediately after landing. Employers have an opportunity to enhance traveler wellbeing by addressing these pain points.

Offering benefits like priority boarding, lounge access, and flexible post-trip schedules can improve the overall travel experience, boosting morale and productivity.

By understanding travelers’ needs and preferences, businesses can adapt their travel programs, ensuring a balance between cost control, traveler care and sustainable practices for the future. BCD’s Program Managers can help customers review their current travel policy, and our consulting division Advito also specializes in assessing, benchmarking and rewriting policies. Once updates are in place, it’s crucial to have a communications strategy that engages and educates travelers. Advito’s Engage experts can help craft a communication strategy that uses cutting-edge marketing tactics to ensure travelers are getting the message.

Source:

Navigating Currency Exchange and Payment Challenges: A Guide for Travel Agents Handling Global Client

The travel industry has become increasingly global, with travelers booking flights, accommodations, and tours across borders. For travel agents, this growth means handling a wide array of currencies, payment systems, and financial regulations. Whether booking a vacation package for a family in Maasai Mara or arranging a business trip for a client in Nairobi, travel agents must navigate complex currency exchange and cross-border payment issues.

These challenges can impact profitability, customer satisfaction, and operational efficiency. In this piece, we’ll explore how travel agents can effectively manage currency exchange fluctuations, reduce payment-related headaches, and leverage modern payment solutions to offer seamless service to their global clients.

1. The Challenge of Currency Exchange in the Travel Sector

One of the primary obstacles for travel agents dealing with international clients is currency exchange. When your business deals with multiple currencies, you face several challenges:

  • Fluctuating Exchange Rates: Currency exchange rates can change rapidly, leading to unexpected costs or lost profits. For example, if the exchange rate shifts between the time of booking and payment, you might end up receiving less than anticipated for a booking, or you may need to pass on the higher cost to your clients.
  • Hidden Fees: Traditional banks and payment processors often charge high fees for currency conversion, cutting into your margins. These fees can be particularly damaging when travel agents are processing high volumes of small transactions or payments from clients in various currencies.
  • Inaccurate Payment Calculations: Ensuring your quotes match the final payment amounts is a common issue, especially when working with fluctuating exchange rates. Clients might expect to pay a specific amount, but unexpected changes in the exchange rate can lead to discrepancies, resulting in client dissatisfaction or even disputes.

To mitigate these challenges, travel agents need to adopt solutions that minimize the impact of currency exchange fluctuations and reduce conversion costs.

2. Choosing the Right Cross-Border Payment Solution

The key to handling international transactions efficiently lies in selecting the right cross-border payment platform. Traditional banks or payment processors may not provide the flexibility or cost efficiency needed for managing global payments. Here’s how modern payment solutions can help:

a. Multi-Currency Accounts

One of the most effective ways for travel agents to manage currency exchange is by using multi-currency accounts. These accounts allow you to hold funds in different currencies, meaning you don’t always have to convert currencies when making or receiving payments.

  • Hold and pay in local currencies: With a multi-currency account, you can hold payments in the currencies that match your suppliers’ and clients’ preferences (e.g., USD, EUR, GBP, TZS, etc.). This eliminates the need for constant currency conversion, saving you on exchange rates and fees.
  • Minimize exchange rate risk: By holding funds in different currencies, you reduce the risk of currency fluctuations impacting the final amount. If the exchange rate moves unfavorably between the time of booking and payment, holding the local currency can protect you from additional losses.

b. Transparent Exchange Rates

A major issue with traditional cross-border payments is the lack of transparency in exchange rates and additional hidden fees. Many payment providers charge a margin on top of the mid-market rate, which can add up quickly.

  • Competitive exchange rates: Partnering with a cross-border payment provider like Verto, which offers competitive exchange rates, can help you manage this issue. By locking in better rates upfront, travel agents can offer more accurate pricing to their clients and avoid surprises in final payment amounts.
  • No hidden fees: Modern payment platforms are often more transparent with their fee structures. Instead of dealing with multiple hidden charges and intermediary fees, you can know exactly how much you’ll pay and how much your client will owe, making it easier to provide consistent pricing and reduce friction in the payment process.

c. Faster Payment Processing

Cross-border payments can take several days to process when using traditional banking systems. For travel agents, this delay can disrupt the cash flow, especially when paying suppliers or reconciling funds across different currencies.

  • Instant or near-instant payments: With digital payment solutions, international payments can be processed within hours or even in real-time, depending on the currencies and countries involved. This speed ensures that your transactions, whether between clients or suppliers, are completed on time, preventing delays in bookings and supplier payments.
  • Cash flow management: Faster payments mean improved cash flow for your business, allowing you to meet your financial obligations promptly and continue to grow without worrying about payment bottlenecks.

3. Reducing Payment Friction for Global Clients

The experience your clients have when paying for their travel bookings is just as important as the services you provide. Handling payments smoothly and offering flexible options can greatly enhance customer satisfaction.

a. Multiple Payment Methods

Global clients have different preferences for how they want to pay for travel bookings, whether by credit card, digital wallet, or bank transfer. Offering a variety of payment options makes it easier for clients to complete their bookings, regardless of where they’re located. 

5. Benefits of Efficient Cross-Border Payments for Travel Agents

Implementing a seamless, cost-effective cross-border payment system provides several benefits for travel agents:

  • Improved cash flow: Faster and more efficient payments help travel agents maintain a healthy cash flow by reducing delays in receiving payments from clients or paying suppliers.
  • Enhanced client trust and satisfaction: Transparent pricing, flexible payment options, and competitive exchange rates improve the overall client experience, leading to higher satisfaction and repeat business.
  • Operational efficiency: Automated currency conversion, reporting, and payment tracking help streamline operations, freeing up time to focus on growing your travel business.

For travel agents handling cross-border payments, Verto provides an efficient way to collect payments from clients globally. With its global accounts and low-cost cross-border payment solutions, travel agents can easily collect payments in the preferred currencies of their clients, without the hassle of manual conversions or delays.

By adopting a platform like Verto for cross border payments, travel agents can provide clients with an easy and secure way to pay from anywhere in the world, reducing friction during the booking process. This enhances the customer experience and ensures that travel agents can focus more on providing exceptional services rather than worrying about payment delays or fees.

In conclusion, navigating the complexities of currency exchange and cross-border payments is a necessary part of doing business in today’s globalized market. By leveraging advanced payment solutions like Verto, which provide multi-currency global accounts, competitive exchange rates, and seamless collections, travel agents can ensure smoother transactions for themselves and their clients.

Managing payments efficiently not only reduces operational costs but also enhances the overall customer experience. Whether you’re booking a luxury vacation package for a client in Europe or managing group tours for clients from within Africa, having a streamlined payment process is essential for staying competitive and building lasting relationships with your global clients.

By adopting modern cross-border payment solutions, travel agents can position themselves for success in an increasingly interconnected world, enabling them to grow their business while providing exceptional service to travelers worldwide.

AirAsia X makes maiden flight to Kenya, opens gateway to Asia-Pacific

Kenya has taken a major step in enhancing its connectivity to the Asia-Pacific region with the arrival of AirAsia X’s maiden flight from Kuala Lumpur to Nairobi. 

The historic flight, which landed at Jomo Kenyatta International Airport (JKIA), marks the first direct connection between Malaysia and Kenya and positions Nairobi as a gateway to Africa for travellers from East and Southeast Asia.
The inaugural flight carried 377 passengers, including tourists, businesspeople, and students, and was welcomed with fanfare by top government and industry officials.

 

Kenya has taken a major step in enhancing its connectivity to the Asia-Pacific region with the arrival of AirAsia X’s maiden flight from Kuala Lumpur to Nairobi. 

The historic flight, which landed at Jomo Kenyatta International Airport (JKIA), marks the first direct connection between Malaysia and Kenya and positions Nairobi as a gateway to Africa for travellers from East and Southeast Asia.
The inaugural flight carried 377 passengers, including tourists, businesspeople, and students, and was welcomed with fanfare by top government and industry officials. 

This is a significant achievement for Kenya. We are opening our skies to the Asia-Pacific region, bringing more tourists and boosting our economy. With over 360 passengers on this maiden flight, we are well on track to achieving our tourism targets,” Miano said.
The route is expected to enhance trade, tourism, and investment opportunities between Kenya and Asia-Pacific countries. Passengers on the inaugural flight included travellers from China, Japan, the Philippines, Singapore, and Australia, underscoring the route’s potential to attract a diverse range of visitors.

 “This is our first flight into Africa, and it’s a momentous occasion. We aim to bring new travellers to Kenya, many of whom are flying for the first time. Our low-cost model ensures affordability and accessibility,” said AirAsia X CEO Benyamin Ismail
The direct eight-and-a-half-hour flight significantly reduces travel time, which previously required connecting flights taking up to 19 hours. AirAsia X will operate the route four times weekly, with plans to increase frequency based on demand.

This direct connection will enhance tourism, trade, and education exchanges, benefiting both countries,” said Malaysian Ambassador to Kenya, Ruzaini Mohamad.
The route is expected to attract delegations from Malaysia to Kenya. In the coming week, 12 Malaysian tech companies and 17 coffee distributors are set to visit Kenya, exploring opportunities in technology and coffee value chains.
Tourism industry stakeholders welcomed the development, citing its potential to boost the sector. Felix Musa, CEO of Viutravel, noted that direct flights not only enhance convenience but also bring competitive pricing.
 “This is a game-changer for the industry. We are working with AirAsia X to offer attractive packages for both inbound and outbound travelers,” Musa said.

Meetings Africa and Africa’s Travel Indaba back for 2025 editions!

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Meetings Africa and Africa’s Travel Indaba back for 2025 editions!

Johannesburg, South Africa – Mark your calendars for the 2025 editions of the  African continent’s trade events designed to elevate the African continent’s leisure tourism and business events industry.

South African Tourism-owned Meetings Africa and Africa’s Travel Indaba are back in 2025 and are set to enhance business connections and networking opportunities. These Pan Africa shows will once again offer robust agendas featuring a diverse range of exhibitors, insightful workshops, and keynote presentations from industry leaders and experts, providing opportunities for global tourism professionals to connect, collaborate, and create lasting value and economic impact.

Meetings Africa, the continent’s premier business events trade show, is set to take place from the 24th to the 26th  of February at the Sandton Convention Centre in Johannesburg, Gauteng province, in partnership with the Gauteng Tourism Authority and Johannesburg Tourism Company.

Africa’s Travel Indaba will take place from the 12th to the 15th   of May at the Inkosi Albert Luthuli Convention Centre in Durban in partnership with Durban Tourism and Tourism KwaZulu-Natal and the KwaZulu-Natal Film Commission.

Meetings Africa focuses on highlighting the African business events products and promoting closer collaboration for the continent sector’s growth. The show will again feature a dedicated educational programme that unites and builds partnerships, driving the business events sector forward. By connecting the best of the African business events industry with relevant buyers from across the globe, Meetings Africa creates an environment conducive to transacting and building quality connections.

Meetings Africa 2025 will commence with a Business Opportunity Networking Day (BONDay) on 24 February 2025, providing a platform for professionals to forge new partnerships, explore collaborative ventures, and gain invaluable insights from industry experts. This exclusive prelude sets the stage for the main event, ensuring attendees maximise their networking potential.

Under the theme, “Africa’s Success Built on Quality Connections”, Meetings Africa emphasises the importance of forging strong, meaningful relationships in driving the continent’s economic progress and industry innovation. The trade show will also provide a platform to showcase Africa’s leading and diverse business event offerings to decision-makers from key source markets worldwide.

Reflecting on Meetings Africa’s Success of 2024:

  • 382 exhibitors representing 22 African countries displayed the diverse and dynamic nature of the continent’s tourism landscape.
  • 371 international and local buyers were in attendance, with a total of 3,480 delegates engaged in the event, underscoring its significance in the global MICE (Meetings, Incentives, Conferences, and Exhibitions) calendar.
  • Over 8,150 meetings were conducted between buyers and exhibitors, highlighting the event’s role in creating substantial business opportunities.
  • The airline pavilion featured nine airlines, emphasising the critical role of aviation in connecting the continent.
  • 25 SMMEs (Small, Medium, and Micro Enterprises) displayed their innovative solutions, demonstrating Africa’s entrepreneurial spirit.
  • 179 members of the media provided extensive coverage, amplifying the event’s reach and impact.
  • In total, 63 countries were represented.

“Meetings Africa 2025 is not just a trade show; it’s a catalyst for business success,” said Minister of Tourism,  Patricia de Lille. “We look forward to welcoming exhibitors and buyers from our continent and from  around the world to South Africa.”

“Meetings Africa 2024 has had a significant impact on South Africa’s economy, contributing R420 million to the GDP and creating over 770 jobs. The event showcased the strength of South Africa’s business events industry as a key driver of economic growth, generating R27 million in national tax revenue and providing significant business opportunities for exhibitors. Beyond economic gains, Meetings Africa emphasised sustainable practices and supported small local businesses, provided great networking opportunities for exhibitors from the rest of the continent, further elevating South Africa’s profile as an attractive and appealing destination for global conferences and events,” Minister de Lille added.

Africa’s Travel Indaba focuses on showcasing the African continent’s leisure tourism products and promoting partnerships geared towards advancing the continent’s growth. Africa’s Travel Indaba will also lead with a Business Opportunity Networking Day featuring industry and business experts and leaders sharing knowledge. 

The 2024 edition of Africa’s Travel Indaba hosted 9280 registered delegates, marking an incredible 7% increase when compared to 2023. No less than 24,000 meetings were held between exhibitors and buyers.  Additionally, the event featured over 1200 exhibitors who displayed an impressive array of African tourism products and experiences.

The economic activities triggered by Africa’s Travel Indaba, from event infrastructure to accommodation establishments, restaurants, and shuttle services, were significant.

The direct economic impact on the city was no less than R226 million, with a spillover effect contributing an additional R333 million. The overall contribution to the city’s GDP exceeded R500 million, indicating significant economic benefits and over 1 000 jobs created, especially for the youth.

“For Africa’s Travel Indaba we look forward to working with all our partners to showcase the city of Durban and the greater Kwa Zulu-Natal province once again and, indeed, the rest of our country. Given the continent’s wide variety of tourism products and experiences, Africa’s Travel Indaba showcases a wide variety of exhibitors and continues to be the best Pan Africa leisure global trade show for all our buyers, exhibitors, media and other stakeholders,” Minister de Lille said.

Looking forward to 2025, both Meetings Africa and Africa’s Travel Indaba, will be tailored to  provide immersive experiences and provide excellent value for exhibitors, buyers and media alike.

By connecting the best of the African leisure and business events industry with relevant buyers from across the globe, both Meetings Africa and Africa’s Travel Indaba create an environment conducive to transacting and building quality connections.

  • Meetings Africa Dates:

24 February 2025: Business Opportunities Networking Day (BONDay)

25 – 26 February 2025: Exhibition Days

Venue: Sandton Convention Centre, Johannesburg

  • Africa’s Travel Indaba Dates:

12 May 2025: Business Opportunity Networking Day (BONDay)

13 -15 May 2025: Exhibition Days

Venue: Durban International Convention Centre

More announcements will be made on www.southafrica.net

Source: ATTA