African travel expenditure projected to rise by 23% in 2018

Data emanating from  Sabre Corporation  has revealed that  air travel expenditure  in Africa is expected to rise by  24 per cent  with the introduction of the pan-African passport in 2018.

The new passport will enable African travellers to visit other countries on the continent without visa.

The comprehensive survey by Sabre,  according its Vice President for Europe , Middle East and Africa , Airline Solutions , Dino Gelmetti, intends to uncover  opportunities and challenges faced by travellers in Africa  to help airlines’ growth and provide African travellers improved overall  journey.

Sabre Corporation  is the leading technology provider to the global travel industry, offering software, data to customers in more than 160 countries.

He said travelers  from four countries – South Africa, Nigeria, Kenya and Egypt – were surveyed with outcomes suggesting they would spend 24 percent more with the introduction of the passport from $1,100 to $1,500 annually.

He said despite willingness among travellers to spend more on flights, travel in Africa still remains inaccessible to the majority.

Factors that militate against such trips, the study revealed borders on expensive cost of travel, difficulty in obtaining visas ,booking challenges as well as  inability to get direct flights to some destinations .

Other factors, he said, include too much time required for check in , cumbersome check in procedures, dislike for food on board and not enough activity at the airport.

Gelmetti said :” The results suggest that while travel is inaccessible to many and is difficult for those who do travel, there is a still a strong desire to travel more.

“Additionally, most of the pain points can be addressed by airlines, and these tweaks could make all the difference to travellers.”

The study reveals that African  carriers currently face tough competition from international rivals that control 88 percent of African airspace.

The study further reveals  that as demand for travel increases, African airlines have a real opportunity to win the lion’s share of travel bookings by addressing challenges that could improve their experience.”

Respondents said  they would be willing to spend up to $104 per trip on an airline’s extra products and services – such as excess baggage, cabin class upgrades.

“Airlines, globally, currently pocket an average of just $16 per passenger on ancillaries, so the fact that African travellers are prepared to spend six times more than that represents a significant retail opportunity for carriers on the continent,” said Gelmetti.

“Airlines will flourish if they invest in technology that can make sense of customer data and use it to offer passengers the right product in the right context at the right time.

This technology, which empowers airlines to mirror the personalised shopping tactics already mastered by the online retail industry has been proven to increase ancillary revenue by an average of 10 percent, and is being used by some of the world’s most forward-thinking carriers.”