Intra-Africa travel holds promise to tourism sector recovery
Air travel is fast returning back to pre-pandemic levels as airlines ramp up capacity to meet the pent-up demand. CNBC Africa's Aby Agina spoke to Agnes Mucuha, Chief Executive Officer, Kenya Association Of Travel Agents for more on the sectors outlook for 2023 and beyond.
Mon, 24 Jul 2023 11:09:01 GMT
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AI Generated Summary
- Significant increase in air travel demand as airlines ramp up capacity post-pandemic
- Shift in consumer demographics towards millennials and adventurers driving industry dynamism
- Focus on intra-Africa travel and strategic collaborations key to sector's full recovery
Air travel is rapidly bouncing back to pre-pandemic levels, with airlines increasing capacity to meet the pent-up demand from travelers eager to embark on long-awaited trips. The travel industry is witnessing a surge in bookings and sales, indicating a strong recovery for the tourism sector. As the world adapts to the 'new normal' post-COVID-19, travel patterns and customer demographics are shifting, driving significant changes in the sector. Agnes Mucuha, Chief Executive Officer of the Kenya Association Of Travel Agents, shared valuable insights on the sector's outlook for 2023 and beyond during an interview with CNBC Africa's Aby Agina. With countries reopening their borders and easing mobility restrictions, travelers are seizing the opportunity to explore new destinations and revisit old favorites. The 'revenge travel' phenomenon has propelled this rapid recovery, with Kenyans eagerly boarding planes as soon as restrictions were lifted. Leisure travelers, students, group movements, and friends traveling to Europe, the Americas, and the Middle East have been key contributors to the uptick in sales volumes. This surge in travel demand has led to a robust increase in passenger numbers, outstripping the capacity of current air services in the market. In 2023, the number of air tickets sold in Kenya has surpassed pre-pandemic levels, indicating an 11 percent growth in sales. The number of travel agencies has also seen a 12 percent increase, driven by shifts in consumer spending and heightened demand. Travelers who had saved during the pandemic are now fueling the recovery by booking flights and exploring new destinations. China, a significant contributor to passenger bookings, has witnessed a surge in travel demand following the reopening of its borders in the first quarter of the year. The aviation sector's recovery is expected to continue in 2023 and 2024, with IATA figures predicting a significant increase in air travel. This recovery is attributed to the deployment of increased air services capacity, expanded route networks, and the introduction of new city pairs. Kenya Airways' strategic code share partnerships with major airlines have enhanced its access to new markets, attracting a diverse customer base. The shift towards targeting millennials and adventurers has brought dynamism to the industry, with a growing emphasis on year-round tourism. As the industry embraces digitalization and innovation, new revenue streams such as adventure tourism, sports tourism, and cultural events are emerging, presenting fresh opportunities for growth. Strategic collaborations with international organizations, including IATA, Dubai Tourism, and South African Tourism Board, are equipping industry players with the necessary skills and knowledge to cater to evolving customer preferences. The African continent's free trade area agreement has opened doors for intra-Africa travel, presenting numerous opportunities for collaboration between countries. By promoting travel within Africa and engaging with stakeholders, the industry can tap into this vast market and drive the sector towards full recovery. On the horizon, the key to sustained growth lies in embracing digital transformation, fostering innovation, and fostering strategic partnerships to meet the evolving needs of travelers in a post-pandemic world.