The time is ripe for growth of Africa’s luxury tourism offering
Tourism is a key driver in every emerging economy’s GDP, driving growth and job creation. Yet, what of the luxury segment and its potential growth in the tourism sector?
According to a new report published by Allied Market Research, titled ‘Luxury Travel Market – Global Opportunity Analysis and Industry Forecast, 2014 to 2022’, the global luxury travel market is expected to generate US$1,154bn by 2022, growing at a compound annual growth rate of 6.4% from 2016 to 2022. Millennials in particular are projected to play a significant part in driving this growth as they seek experiential and unique travel experiences while being very connected with technology (i.e. via social media), enabling them to communicate their experiences to the world. Millennials are fast becoming today’s travel market due their influence, affluence and aspirational outlook.
Africa is known for its experiential travel but there is still a wide gap for luxury experiential travel to take the lead. To this end, Africa’s Travel Indaba 2019 has set up its ‘Luxury Pavilion’ where some of Africa’s most extravagant travel escapes will be showcased to buyers with the express aim of growing the luxury segment’s slice of the bigger tourism pie.
“All participants at this year’s Africa’s Travel Indaba Lap of Luxury Pavilion are valued for their quality service, experience, innovation and heritage. In 2019, we want to show that Africa, especially South Africa, is a destination well positioned in the minds of foreign tourists seeking exclusivity, luxury and unique experiences,” says
Amanda Kotze-Nhlapo , South African National Conventions Bureau Chief Convention Bureau Officer.
In 2018, the United Nations World Tourism Organisation reported an increase of 36m international arrivals on the continent between 2000 and 2017.
The tourism industry is also playing an increasingly important role in the global economy, contributing 5% of GDP, 30% of service exports and 235m jobs worldwide. While the luxury segment is well established in parts of East and Southern Africa, there is still room for growth of luxury offerings on other parts of the continent.
Source: tourismupdate.co.za
Tuesday, May 28, 2019
Digital transformation critical for Africa’s tourism growth
Digital transformation critical for Africa’s tourism growth
In a 2018 Tech Pro Research survey, 70% of survey respondents said their companies either had a digital transformation strategy in place or were working on one – and rightly so, as digital innovations are creating opportunities faster and on a daily basis.
The travel and tourism industry is experiencing a great deal of disruption, with trends such as virtual reality (VR), artificial intelligence (AI), and mobile bookings and payments taking centre stage.
In a statement released by the United Nations World Tourism Organisation (UNWTO) during the 63rd European Commission meeting held in Prague in June 2018, the importance of tourism and technology was stressed, providing opportunities for innovation and creating the jobs of the future. Secretary-general, Zurab Pololikashvili , affirmed the organisation’s aim to make innovation part of the solution to the challenge of marrying continued growth with a more sustainable and responsible tourism sector.
In a world of digital interaction, old systems and processes must be rethought and new technologies put in place for businesses to stay competitive within their industry.
Tourism is a dynamic sector with phenomenal potential in Africa. As one of the fastest-growing sectors of the last decade, tourism already contributes about 8% to Africa’s GDP, employs 6.5% of the workforce, and offers a window of opportunity. The cultural attractions in Africa – cultural heritage, beliefs, storytelling, ancient knowledge, music, and dance – are intangible and continue to enhance the continent’s travel and tourism competitiveness.
From flights to hotel bookings, travellers are highly dependent on mobile applications and the digital space for their travel purchases, which need to be easily accessible online, thus making them convenient and user-friendly.
There are new ways to involve your customers such as more modernisation of the labour force, and more opportunities to harness data insights – all of which should be looked at and attended to at every level of the business hierarchy. The question all industries must ask is, how can we rise to the digital challenge and add value to our customers through digitisation?
Fundamentally, it is about adopting a digital mindset. By adopting a digital-first mentality in both business operations and customer experiences, the tourism industry can position itself to acclimatise and advance into the future, as technology and customer expectations continue to evolve.
More than ever, and in a bid to drive sales, revenue and operational efficiency, the trade sector in Africa needs to increase its efforts to provide top-notch customer travel experience for all those coming to enjoy our continent. This can only be done by embracing the digital transformation.
*Start from the inside*
From the very core, a company’s culture must drive growth through digital transformation. If there is a lack of budget in one department or a lack of expertise in another, it will cause hurdles for the sought-after growth. Other challenges can include buy-in from management, training your employees on new technologies, defining guidelines for governance, and ensuring that the right IT skill sets are involved to back digital technologies. However, if the company itself has a digital mind-set and is committed to creating this culture of transformation, the growth will follow, regardless of the challenges.
Will you let this digital age disrupt or fast-track your business? Whether its virtual reality convincing someone to take their first overseas trip or another advancement, there is no end to the value the digital sphere can add to the tourism industry.
source: tourismupdate.co.za
In a 2018 Tech Pro Research survey, 70% of survey respondents said their companies either had a digital transformation strategy in place or were working on one – and rightly so, as digital innovations are creating opportunities faster and on a daily basis.
The travel and tourism industry is experiencing a great deal of disruption, with trends such as virtual reality (VR), artificial intelligence (AI), and mobile bookings and payments taking centre stage.
In a statement released by the United Nations World Tourism Organisation (UNWTO) during the 63rd European Commission meeting held in Prague in June 2018, the importance of tourism and technology was stressed, providing opportunities for innovation and creating the jobs of the future. Secretary-general, Zurab Pololikashvili , affirmed the organisation’s aim to make innovation part of the solution to the challenge of marrying continued growth with a more sustainable and responsible tourism sector.
In a world of digital interaction, old systems and processes must be rethought and new technologies put in place for businesses to stay competitive within their industry.
Tourism is a dynamic sector with phenomenal potential in Africa. As one of the fastest-growing sectors of the last decade, tourism already contributes about 8% to Africa’s GDP, employs 6.5% of the workforce, and offers a window of opportunity. The cultural attractions in Africa – cultural heritage, beliefs, storytelling, ancient knowledge, music, and dance – are intangible and continue to enhance the continent’s travel and tourism competitiveness.
From flights to hotel bookings, travellers are highly dependent on mobile applications and the digital space for their travel purchases, which need to be easily accessible online, thus making them convenient and user-friendly.
There are new ways to involve your customers such as more modernisation of the labour force, and more opportunities to harness data insights – all of which should be looked at and attended to at every level of the business hierarchy. The question all industries must ask is, how can we rise to the digital challenge and add value to our customers through digitisation?
Fundamentally, it is about adopting a digital mindset. By adopting a digital-first mentality in both business operations and customer experiences, the tourism industry can position itself to acclimatise and advance into the future, as technology and customer expectations continue to evolve.
More than ever, and in a bid to drive sales, revenue and operational efficiency, the trade sector in Africa needs to increase its efforts to provide top-notch customer travel experience for all those coming to enjoy our continent. This can only be done by embracing the digital transformation.
*Start from the inside*
From the very core, a company’s culture must drive growth through digital transformation. If there is a lack of budget in one department or a lack of expertise in another, it will cause hurdles for the sought-after growth. Other challenges can include buy-in from management, training your employees on new technologies, defining guidelines for governance, and ensuring that the right IT skill sets are involved to back digital technologies. However, if the company itself has a digital mind-set and is committed to creating this culture of transformation, the growth will follow, regardless of the challenges.
Will you let this digital age disrupt or fast-track your business? Whether its virtual reality convincing someone to take their first overseas trip or another advancement, there is no end to the value the digital sphere can add to the tourism industry.
source: tourismupdate.co.za
Asian Aviation Prospect: A Look to Eastern Asia Aviation Part two.
Asian Aviation Prospect: A Look to Eastern Asia Aviation Part two.
Let's look into Eastern Asia Aviation (Hong Kong, South Korea) Part two.
Hong Kong
Hong Kong’s aviation market is dominated by Cathay Pacific. Although Hong Kong Airlines seeks to mount significant competition against Cathay Pacific, they lack the solid financial footing and funding (at least publicly) to significantly compete against Cathay.
Cathay Pacific keeps growing. Between separating long-haul and low-cost operations to acquiring HK Express, Cathay still has a major hold over Hong Kong. However, by 2050, Hong Kong Airlines could also be a formidable force of its own. Already, they operate long-haul services to major destinations. However, they will need to offer additional connections and partners to bring more passengers on-board their planes.
Hong Kong is already a well-known destination. With both high-end business travelers and leisure travelers, Cathay Pacific seems well on its way to staying afloat. However, if Cathay Pacific does have to contend with the rise of low-cost carriers in East Asia, things could become trickier in future.
South Korea
South Korea is home to two major airlines: Asiana Airlines and Korean Air. Despite an East Asian boom, South Korean passengers haven’t grown to the size of Japanese or Chinese numbers. On the other hand, South Korea remains well-connected globally.
Asiana is struggling financially and cutting their operations . Time will tell how this turns out for Asiana. In a best case scenario, their cost-cutting mechanism could turn things around. On the other hand, they may end up like Etihad, stripping back services to maintain profitability, or go completely bust like Jet Airways.
Korean Air, Asiana’s main rival, has avoided negative headlines about their financials. While Asiana cuts routes, Korean Air has expanded to new destinations– including some lesser-known places like Croatia.
As the national flag carrier, Korean Air is likely to outlast Asiana Airlines. While they have a long-haul network that ranges from quirky destinations to high-demand cities, Korean Air will likely remain flying as Seoul remains a hub for modern-day technology and tourism. With ties to large, global corporations, Korean Air will have a strong base of premium passengers looking to go to and from Seoul.
The rise of low-cost carriers
Where there are passengers wanting to travel, there is competition. Among carriers, the competition ranges from who offers the best onboard product to who offers the best fares. On the high-end, where airlines make most of their money, they compete with onboard hard and soft products. At the other end of the spectrum, the price-conscious passengers have led to the rise of new competition: low-cost carriers.
From Japan Airlines, we have “ ZIPAIR “, a to-be-launched long-haul low-cost carrier. Meanwhile, ANA went with a more traditional short-haul low-cost carrier in Peach.
In recent years, low-cost carriers have sprung up across East Asia. However, they have not grown to the likes of Ryanair and Southwest. That isn’t to say that low-cost carriers won’t catch on like they have in other markets. However, with China as a major growing market, China seems like the most likely contender to grow a major low-cost carrier.
The Chinese aviation sector is heavily marketed, which could prove to be a hindrance to the rise of low-cost carriers. However, the liberalization of air markets is a major trend in the aviation industry. This could be a major change in China’s future. The results could be beneficial for passengers who receive more options and connections on more carriers.
Overall
East Asia is a fascinating market. Coupled with high-demand tech cities and growing tourism, the market will continue to evolve in years to come. As markets grow, some airlines may inevitably grow too fast and go out of business, while others will thrive and could become global competitors.
Asia Aviation continues to play a formidible role in the World of Aviation.
Let's look into Eastern Asia Aviation (Hong Kong, South Korea) Part two.
Hong Kong
Hong Kong’s aviation market is dominated by Cathay Pacific. Although Hong Kong Airlines seeks to mount significant competition against Cathay Pacific, they lack the solid financial footing and funding (at least publicly) to significantly compete against Cathay.
Cathay Pacific keeps growing. Between separating long-haul and low-cost operations to acquiring HK Express, Cathay still has a major hold over Hong Kong. However, by 2050, Hong Kong Airlines could also be a formidable force of its own. Already, they operate long-haul services to major destinations. However, they will need to offer additional connections and partners to bring more passengers on-board their planes.
Hong Kong is already a well-known destination. With both high-end business travelers and leisure travelers, Cathay Pacific seems well on its way to staying afloat. However, if Cathay Pacific does have to contend with the rise of low-cost carriers in East Asia, things could become trickier in future.
South Korea
South Korea is home to two major airlines: Asiana Airlines and Korean Air. Despite an East Asian boom, South Korean passengers haven’t grown to the size of Japanese or Chinese numbers. On the other hand, South Korea remains well-connected globally.
Asiana is struggling financially and cutting their operations . Time will tell how this turns out for Asiana. In a best case scenario, their cost-cutting mechanism could turn things around. On the other hand, they may end up like Etihad, stripping back services to maintain profitability, or go completely bust like Jet Airways.
Korean Air, Asiana’s main rival, has avoided negative headlines about their financials. While Asiana cuts routes, Korean Air has expanded to new destinations– including some lesser-known places like Croatia.
As the national flag carrier, Korean Air is likely to outlast Asiana Airlines. While they have a long-haul network that ranges from quirky destinations to high-demand cities, Korean Air will likely remain flying as Seoul remains a hub for modern-day technology and tourism. With ties to large, global corporations, Korean Air will have a strong base of premium passengers looking to go to and from Seoul.
The rise of low-cost carriers
Where there are passengers wanting to travel, there is competition. Among carriers, the competition ranges from who offers the best onboard product to who offers the best fares. On the high-end, where airlines make most of their money, they compete with onboard hard and soft products. At the other end of the spectrum, the price-conscious passengers have led to the rise of new competition: low-cost carriers.
From Japan Airlines, we have “ ZIPAIR “, a to-be-launched long-haul low-cost carrier. Meanwhile, ANA went with a more traditional short-haul low-cost carrier in Peach.
In recent years, low-cost carriers have sprung up across East Asia. However, they have not grown to the likes of Ryanair and Southwest. That isn’t to say that low-cost carriers won’t catch on like they have in other markets. However, with China as a major growing market, China seems like the most likely contender to grow a major low-cost carrier.
The Chinese aviation sector is heavily marketed, which could prove to be a hindrance to the rise of low-cost carriers. However, the liberalization of air markets is a major trend in the aviation industry. This could be a major change in China’s future. The results could be beneficial for passengers who receive more options and connections on more carriers.
Overall
East Asia is a fascinating market. Coupled with high-demand tech cities and growing tourism, the market will continue to evolve in years to come. As markets grow, some airlines may inevitably grow too fast and go out of business, while others will thrive and could become global competitors.
Asian Aviation Future Prospects: A look to Eastern Asia Aviation Part One
Asian Aviation Future Prospects: A look to Eastern Asia Aviation Part One
Asia is the largest continent in the world, both in land mass and people. With a population of over four billion, it is also one of the most important aviation markets. In this three-part series, we will examine the future of Asian aviation through different geographic realms.
According to the latest edition of IATA’s 20-Year Air Passenger Forecast, Asia Pacific will be the biggest driver of demand from 2015 to 2035 with more than half of the new passenger traffic coming from the region. China will replace the US as the world’s largest aviation market (defined by traffic to, from and within the country) around 2024. India will displace the UK for third place in 2025, while Indonesia and Japan will be ranked 5th and 7th respectively.
Of the five fastest-growing markets in terms of additional passengers per year over the forecast period, four will be from Asia.
First, let’s take a look at East Asia(Japan & China)
The aviation industry in East Asia has recorded significant growth over the past few years. The total seat capacity of Eastern Asia airlines experienced double-digit growth in the four-year period of 2009-2013. It has established itself as one of the world’s fastest growing aviation markets and has huge potential for more rapid growth.
East Asian aviation market
China is by far the largest aviation market in East Asia. In a distant second place comes Japan, followed closely by South Korea. The East Asian market was not always like this before.
Japan
Japan was the most important aviation market in East Asia less than 20 years ago. Combined, Japanese carriers transported over 109 million passengers. The two major carriers in Japan are ANA and Japan Airlines.
ANA
All Nippon Airways (ANA) is the largest airline in Japan based on fleet size. In 2016, ANA carried over 52 million passengers.
Japan Airlines
Japan Airlines is the second largest airline in Japan by fleet size. Something they are not very well known for, but should be, is having some of the most comfortable 787s out there. Some of Japan Airlines’ 787-8s only seat 161 passengers. Japan Airlines also chose passenger comfort over profitability and went with a 2-4-2 configuration in economy.
The market in Japan Aviation.
Overall, the problem with Japan is that passenger numbers aren’t booming as they are in China. Passengers tend to fly with carriers from their home countries. In nearly all cases, Japanese tourists prefer to fly with Japanese carriers because it makes the travel experience easier.
Due to language barriers, many travelers prefer to fly with their home carriers since it is easier to understand them. Many lost-in-translation events can happen while traveling and language barriers can always detract from an experience.
Both Japan Airlines and ANA have alliance partners with whom they can closely cooperate.
China
On the other hand, China is a huge source of passengers. With the largest population in the world in a rapidly industrializing country, there is a significant push to increase passenger numbers. With three major international airlines, China will definitely be a major aviation force in 2050.
Air China
Flag carrier Air China operates its largest hub at Beijing’s Capital International Airport. With over 400 aircraft in its fleet and another 100+ on order, Air China is preparing for massive growth. Once Beijing’s second airport opens, there will be a significant increase in airline capacity. By effectively using these additional slots, Air China can maintain their competitive edge in China’s capital. As the flag carrier, undoubtedly there will be a significant push from the Chinese government to keep Air China successful afloat.
In the future, Air China will have to contend with competition once Beijing’s new airport opens for business. However, the carrier currently benefits from a near monopoly on long-haul routes out of Beijing. These lucrative routes bring plenty of profits and passengers on Air China metal. For example, Air China is the only Chinese airline to serve long-haul destinations to Star Alliance hubs like Johannesburg, Frankfurt, and Washington-Dulles.
China Southern
China Southern is China’s largest airline by fleet size. Boasting their expectations for a 2,000-plus fleet , China Southern is well on its way to this goal with over 600 aircraft in service and more than 200 on order.
However, what China Southern needs to reconcile is Guangzhou. Though a major hub for China Southern, Guangzhou has a distinct lack of foreign carriers operating there. Notably absent are European carriers like British Airways, Lufthansa, Air France and KLM, as well as American Airlines, and Qantas.
Guangzhou is a major destination in China, however even as the best commercial city, major foreign airlines don’t seem to find a reason to operate there. Some of the decision is no doubt politically motivated, but, even China Southern has its sight on expansion from Beijing Daxing.
Despite this, Guangzhou still lacks notable connections to destinations like Chicago, Dallas, and Munich. Furthermore, while Beijing and Shanghai have a major tourist draw, Guangzhou lacks this particular attraction. Much of it, in fact, is lost to nearby Cathay Pacific hub in Hong Kong.
China Eastern
China Eastern is China’s second largest airline by fleet size. With close to 550 aircraft in operation, China Eastern maintains Shanghai as a major hub. While China Eastern doesn’t have the same ambitious plans as China Southern, they still will be a force to reckon with in 2050.
China Southern, as of now, doesn’t have any major international partners. Though they’ve recently become closer with American Airlines, China Eastern and Delta have solidified their strategic partnership. This puts China Eastern ahead of Air China and China Southern.
Inaugurating new routes and building up partnerships takes years. For airlines, it is important to gain passenger recognition and trust with new routes. As Delta becomes closer with China Eastern, they put themselves ahead of the competition with access to mainland Chinese tourists. The same is true for China Southern. Connections from interior destinations lacking long-haul flights to the United States will be a huge market
Part two: Looking into Eastern Asia Aviation (Hong Kong and South Korea)
Asia is the largest continent in the world, both in land mass and people. With a population of over four billion, it is also one of the most important aviation markets. In this three-part series, we will examine the future of Asian aviation through different geographic realms.
According to the latest edition of IATA’s 20-Year Air Passenger Forecast, Asia Pacific will be the biggest driver of demand from 2015 to 2035 with more than half of the new passenger traffic coming from the region. China will replace the US as the world’s largest aviation market (defined by traffic to, from and within the country) around 2024. India will displace the UK for third place in 2025, while Indonesia and Japan will be ranked 5th and 7th respectively.
Of the five fastest-growing markets in terms of additional passengers per year over the forecast period, four will be from Asia.
First, let’s take a look at East Asia(Japan & China)
The aviation industry in East Asia has recorded significant growth over the past few years. The total seat capacity of Eastern Asia airlines experienced double-digit growth in the four-year period of 2009-2013. It has established itself as one of the world’s fastest growing aviation markets and has huge potential for more rapid growth.
East Asian aviation market
China is by far the largest aviation market in East Asia. In a distant second place comes Japan, followed closely by South Korea. The East Asian market was not always like this before.
Japan
Japan was the most important aviation market in East Asia less than 20 years ago. Combined, Japanese carriers transported over 109 million passengers. The two major carriers in Japan are ANA and Japan Airlines.
ANA
All Nippon Airways (ANA) is the largest airline in Japan based on fleet size. In 2016, ANA carried over 52 million passengers.
Japan Airlines
Japan Airlines is the second largest airline in Japan by fleet size. Something they are not very well known for, but should be, is having some of the most comfortable 787s out there. Some of Japan Airlines’ 787-8s only seat 161 passengers. Japan Airlines also chose passenger comfort over profitability and went with a 2-4-2 configuration in economy.
The market in Japan Aviation.
Overall, the problem with Japan is that passenger numbers aren’t booming as they are in China. Passengers tend to fly with carriers from their home countries. In nearly all cases, Japanese tourists prefer to fly with Japanese carriers because it makes the travel experience easier.
Due to language barriers, many travelers prefer to fly with their home carriers since it is easier to understand them. Many lost-in-translation events can happen while traveling and language barriers can always detract from an experience.
Both Japan Airlines and ANA have alliance partners with whom they can closely cooperate.
China
On the other hand, China is a huge source of passengers. With the largest population in the world in a rapidly industrializing country, there is a significant push to increase passenger numbers. With three major international airlines, China will definitely be a major aviation force in 2050.
Air China
Flag carrier Air China operates its largest hub at Beijing’s Capital International Airport. With over 400 aircraft in its fleet and another 100+ on order, Air China is preparing for massive growth. Once Beijing’s second airport opens, there will be a significant increase in airline capacity. By effectively using these additional slots, Air China can maintain their competitive edge in China’s capital. As the flag carrier, undoubtedly there will be a significant push from the Chinese government to keep Air China successful afloat.
In the future, Air China will have to contend with competition once Beijing’s new airport opens for business. However, the carrier currently benefits from a near monopoly on long-haul routes out of Beijing. These lucrative routes bring plenty of profits and passengers on Air China metal. For example, Air China is the only Chinese airline to serve long-haul destinations to Star Alliance hubs like Johannesburg, Frankfurt, and Washington-Dulles.
China Southern
China Southern is China’s largest airline by fleet size. Boasting their expectations for a 2,000-plus fleet , China Southern is well on its way to this goal with over 600 aircraft in service and more than 200 on order.
However, what China Southern needs to reconcile is Guangzhou. Though a major hub for China Southern, Guangzhou has a distinct lack of foreign carriers operating there. Notably absent are European carriers like British Airways, Lufthansa, Air France and KLM, as well as American Airlines, and Qantas.
Guangzhou is a major destination in China, however even as the best commercial city, major foreign airlines don’t seem to find a reason to operate there. Some of the decision is no doubt politically motivated, but, even China Southern has its sight on expansion from Beijing Daxing.
Despite this, Guangzhou still lacks notable connections to destinations like Chicago, Dallas, and Munich. Furthermore, while Beijing and Shanghai have a major tourist draw, Guangzhou lacks this particular attraction. Much of it, in fact, is lost to nearby Cathay Pacific hub in Hong Kong.
China Eastern
China Eastern is China’s second largest airline by fleet size. With close to 550 aircraft in operation, China Eastern maintains Shanghai as a major hub. While China Eastern doesn’t have the same ambitious plans as China Southern, they still will be a force to reckon with in 2050.
China Southern, as of now, doesn’t have any major international partners. Though they’ve recently become closer with American Airlines, China Eastern and Delta have solidified their strategic partnership. This puts China Eastern ahead of Air China and China Southern.
Inaugurating new routes and building up partnerships takes years. For airlines, it is important to gain passenger recognition and trust with new routes. As Delta becomes closer with China Eastern, they put themselves ahead of the competition with access to mainland Chinese tourists. The same is true for China Southern. Connections from interior destinations lacking long-haul flights to the United States will be a huge market
Part two: Looking into Eastern Asia Aviation (Hong Kong and South Korea)
Friday, May 17, 2019
The Decline Of First Class Vs The Rise Of Premium Economy
The Decline Of First Class Vs The Rise Of Premium Economy
As first class declines around the world, we’re simultaneously seeing premium economy expanding to fill the gap. We investigate how the two are related, and whether this is good news for travelers.
As two more airlines drop first class from their aircraft, it seems there is no stopping the juggernaut of change at the pointy end of the plane.
However, there’s something interesting going on a bit further back too, as many airlines are adding more premium economy seats to the mix. What’s going on, and does it make any sense? And is the rise of PE and the loss of first a good thing for passengers, or not?
First class is out
If anywhere in the world was going to keep first class a bit longer, it would have been Asia. But now it seems even the Asian carriers are failing to see the benefit of an elite cabin.
Both Korean Air and Asiana have recently announced they are eliminating first from a number of their routes. From June,
Korean Air will scrap their first class cabin from 27 of their international routes. Asiana will stop offering first on their A380s from September, instead planning to sell the same seats at a huge markdown as what they’re calling ‘business suites’.
Heard of business suites somewhere before? That’d be on Malaysia Airlines , who last year rebranded their first class offering as an uprated business class instead, perhaps in response to legislation preventing government officials from travelling in first.
As we already know, many other airlines are falling out of love with first. The main problem is that the business class product has become so good, there’s very little reason left for passengers to pay more. Consequently, airlines are continuing to make business class the best it can be, while simultaneously dropping first from their planes.
Premium economy is in
Premium economy is something quite different to the ‘economy plus’ option you might have come across. Economy plus usually sells the odd seats which just happen to have a bit more legroom, such as bulkhead or exit row seats, for a markup. Everything else remains the same. Same cabin, same food, same service.
Premium economy has its own cabin, separate from the hustle and bustle of economy. It has better seats, more legroom, and in some cases other perks such as priority boarding or a better inflight menu.
American Airlines added premium economy to 100 aircraft last year, making it the airline with the most PE capacity in the US. Delta plan to add Premium Select to all widebody flights by 2021. And for the first time ever, Emirates passengers will have the option of premium economy from next year onwards.
The rise of premium economy is no big surprise. Airlines are making huge profits on these seats, selling them for as much as double the cost of a regular economy seat, and without giving up as much cabin space as a business class product does.
As first class falls off the front of the plane, those who would have flown first will fly business, and those who would have flown business have a choice of either flying the new and improved business product or saving some pennies and choosing premium economy. By the same token, those who would normally fly economy have a choice too, of spending a little bit more and going premium.
Because the jump between economy and premium economy is far less than that between economy and business.
Is it good for passengers?
That’s up for debate, and depends on your perspective, but for the majority of passengers we’d say yes. Premium economy offers a taste of the high life without needing to take out a second mortgage for your trip. Those who miss the exclusivity of first will still be able to find it in some places. If not, well the new business class suites are, in many cases, better than first used to be.
Taking that idea a step further, isn’t the current premium economy class almost as good as old school business class used to be? So, if business is on a par with yesteryears first, and PE is up there with previous iterations of business, has anything really changed at all?
Aside of the name change, the biggest change is in price. Air fares are spiraling downwards, as tough competition forces airlines to price low in order to fill their planes. In fact, premium economy is the
same price on many routes as economy was a few years ago.
The end result? A better seat and service for the same price. That’s got to be a massive win for passengers, right?
As first class declines around the world, we’re simultaneously seeing premium economy expanding to fill the gap. We investigate how the two are related, and whether this is good news for travelers.
As two more airlines drop first class from their aircraft, it seems there is no stopping the juggernaut of change at the pointy end of the plane.
However, there’s something interesting going on a bit further back too, as many airlines are adding more premium economy seats to the mix. What’s going on, and does it make any sense? And is the rise of PE and the loss of first a good thing for passengers, or not?
First class is out
If anywhere in the world was going to keep first class a bit longer, it would have been Asia. But now it seems even the Asian carriers are failing to see the benefit of an elite cabin.
Both Korean Air and Asiana have recently announced they are eliminating first from a number of their routes. From June,
Korean Air will scrap their first class cabin from 27 of their international routes. Asiana will stop offering first on their A380s from September, instead planning to sell the same seats at a huge markdown as what they’re calling ‘business suites’.
Heard of business suites somewhere before? That’d be on Malaysia Airlines , who last year rebranded their first class offering as an uprated business class instead, perhaps in response to legislation preventing government officials from travelling in first.
As we already know, many other airlines are falling out of love with first. The main problem is that the business class product has become so good, there’s very little reason left for passengers to pay more. Consequently, airlines are continuing to make business class the best it can be, while simultaneously dropping first from their planes.
Premium economy is in
Premium economy is something quite different to the ‘economy plus’ option you might have come across. Economy plus usually sells the odd seats which just happen to have a bit more legroom, such as bulkhead or exit row seats, for a markup. Everything else remains the same. Same cabin, same food, same service.
Premium economy has its own cabin, separate from the hustle and bustle of economy. It has better seats, more legroom, and in some cases other perks such as priority boarding or a better inflight menu.
American Airlines added premium economy to 100 aircraft last year, making it the airline with the most PE capacity in the US. Delta plan to add Premium Select to all widebody flights by 2021. And for the first time ever, Emirates passengers will have the option of premium economy from next year onwards.
The rise of premium economy is no big surprise. Airlines are making huge profits on these seats, selling them for as much as double the cost of a regular economy seat, and without giving up as much cabin space as a business class product does.
As first class falls off the front of the plane, those who would have flown first will fly business, and those who would have flown business have a choice of either flying the new and improved business product or saving some pennies and choosing premium economy. By the same token, those who would normally fly economy have a choice too, of spending a little bit more and going premium.
Because the jump between economy and premium economy is far less than that between economy and business.
Is it good for passengers?
That’s up for debate, and depends on your perspective, but for the majority of passengers we’d say yes. Premium economy offers a taste of the high life without needing to take out a second mortgage for your trip. Those who miss the exclusivity of first will still be able to find it in some places. If not, well the new business class suites are, in many cases, better than first used to be.
Taking that idea a step further, isn’t the current premium economy class almost as good as old school business class used to be? So, if business is on a par with yesteryears first, and PE is up there with previous iterations of business, has anything really changed at all?
Aside of the name change, the biggest change is in price. Air fares are spiraling downwards, as tough competition forces airlines to price low in order to fill their planes. In fact, premium economy is the
same price on many routes as economy was a few years ago.
The end result? A better seat and service for the same price. That’s got to be a massive win for passengers, right?
Saturday, May 11, 2019
Emirates In Discussions With Boeing Over 787-10’s Purchase
Emirates In Discussions
With Boeing Over 787-10’s Purchase
Emirates seem to have cancelled their order for 50 Boeing 787-10 aircraft. Made at the Dubai Airshow in 2017, the order was said to be worth more than $15bn. However, with no mention of the Dreamliners in their end of year reports, and no sign of them on Boeing’s books, it looks like the purchase was never meant to be.
Rumors have been circulating for a few months that Emirates would cancel their 787-10 order, and now it seems it might have, very quietly, happened.
As part of the group’s financial year results , Emirates recapped their fleet of future aircraft. There was no mention within it of any Boeing 787 aircraft, suggesting that the original order has been removed.
Boeing actually never added the order to their books, which was strange. Now, it seems that the 40 airplane order we were all so excited to hear about was nothing more than hot air.
The Emirates Boeing order
Back in 2017, the aviation world could barely contain its excitement when Emirates placed an order at the Dubai Airshow. This order was for no less than 50 Boeing 787-10 Dreamliners, worth $15.1bn. The order, at the time, took Emirates commitments with Boeing to a total of 204 aircraft.
Although the order turned out later to be non-contractual, CEO and Chairman of Emirates, Sheikh Mohammed bin Rashid Al Maktoum, was positive about the move. At the time of the order, he said,“Emirates’ orders today will be delivered from 2022, taking the airline well into the 2030s. Some of these will be replacements so that we maintain a young and efficient fleet, and others will power our future network growth. We see the 787 as a great complement to our 777 and A380 fleet, providing us with more flexibility to serve a range of destinations as we develop our global route network.”
However, since then Emirates have been going through some big changes in terms of fleet. They, notably, cancelled their order for A380 aircraft, switching them over to A350s instead, spelling the end of the A380 project.
Weeks later, the airline placed a huge Airbus order for A350s and A330s , both new types of aircraft to the fleet. Previously it had only ever operated the A380 and the B777, so this was big news and a big change for Emirates.
Why did Emirates change their mind on the 787-10?
With both Emirates and Boeing remaining tight lipped on whether the order has actually been cancelled, all we can do at this stage is speculate.
When they placed the order for the 787, they hadn’t yet found the love for the A350 and A330 types. Between the two of them, they pretty much do the job of a 787, with a range of route distances and passenger capacities catered for.
Then there’s the 777X , which Emirates has placed the largest single order for aircraft by cost for: 150 aircraft at a cost of $76bn. As long ago as February, Bloomberg were speculating that Emirates would cancel their 787 order in favor of more of the 777X jets.
According to a report by Leeham News , there may also have been an issue that rendered the 787-10 unsuitable for Emirates operations. Being a relatively high capacity but pretty short range plane, it was likely to be used more on short to mid-range, high traffic routes than to really leave the region at any distance.
The hot environment of Dubai could have proved problematic for the small engines of the 787. Because of the weight of the plane, more throttle push was added in development to ensure adequate takeoff performance. However, this means that they run hotter, and could make a hot takeoff an issue.
The reporter says that, should takeoff performance not be good enough, then the engines would require extensive and costly modifications.
Whatever the reason, it does appear that the Emirates Dreamliner order has quietly slipped off Boeing’s books. I’m sure we’ll hear more in the coming weeks and will of course keep you posted.
Source: simplyfly.com
Emirates seem to have cancelled their order for 50 Boeing 787-10 aircraft. Made at the Dubai Airshow in 2017, the order was said to be worth more than $15bn. However, with no mention of the Dreamliners in their end of year reports, and no sign of them on Boeing’s books, it looks like the purchase was never meant to be.
Rumors have been circulating for a few months that Emirates would cancel their 787-10 order, and now it seems it might have, very quietly, happened.
As part of the group’s financial year results , Emirates recapped their fleet of future aircraft. There was no mention within it of any Boeing 787 aircraft, suggesting that the original order has been removed.
Boeing actually never added the order to their books, which was strange. Now, it seems that the 40 airplane order we were all so excited to hear about was nothing more than hot air.
The Emirates Boeing order
Back in 2017, the aviation world could barely contain its excitement when Emirates placed an order at the Dubai Airshow. This order was for no less than 50 Boeing 787-10 Dreamliners, worth $15.1bn. The order, at the time, took Emirates commitments with Boeing to a total of 204 aircraft.
Although the order turned out later to be non-contractual, CEO and Chairman of Emirates, Sheikh Mohammed bin Rashid Al Maktoum, was positive about the move. At the time of the order, he said,“Emirates’ orders today will be delivered from 2022, taking the airline well into the 2030s. Some of these will be replacements so that we maintain a young and efficient fleet, and others will power our future network growth. We see the 787 as a great complement to our 777 and A380 fleet, providing us with more flexibility to serve a range of destinations as we develop our global route network.”
However, since then Emirates have been going through some big changes in terms of fleet. They, notably, cancelled their order for A380 aircraft, switching them over to A350s instead, spelling the end of the A380 project.
Weeks later, the airline placed a huge Airbus order for A350s and A330s , both new types of aircraft to the fleet. Previously it had only ever operated the A380 and the B777, so this was big news and a big change for Emirates.
Why did Emirates change their mind on the 787-10?
With both Emirates and Boeing remaining tight lipped on whether the order has actually been cancelled, all we can do at this stage is speculate.
When they placed the order for the 787, they hadn’t yet found the love for the A350 and A330 types. Between the two of them, they pretty much do the job of a 787, with a range of route distances and passenger capacities catered for.
Then there’s the 777X , which Emirates has placed the largest single order for aircraft by cost for: 150 aircraft at a cost of $76bn. As long ago as February, Bloomberg were speculating that Emirates would cancel their 787 order in favor of more of the 777X jets.
According to a report by Leeham News , there may also have been an issue that rendered the 787-10 unsuitable for Emirates operations. Being a relatively high capacity but pretty short range plane, it was likely to be used more on short to mid-range, high traffic routes than to really leave the region at any distance.
The hot environment of Dubai could have proved problematic for the small engines of the 787. Because of the weight of the plane, more throttle push was added in development to ensure adequate takeoff performance. However, this means that they run hotter, and could make a hot takeoff an issue.
The reporter says that, should takeoff performance not be good enough, then the engines would require extensive and costly modifications.
Whatever the reason, it does appear that the Emirates Dreamliner order has quietly slipped off Boeing’s books. I’m sure we’ll hear more in the coming weeks and will of course keep you posted.
Source: simplyfly.com
Thursday, May 9, 2019
Pilot Fatigue: Can You Beat your Body Clock?
Pilot Fatigue: Can You Beat your Body Clock?
The new EASA (European Aviation Safety Agency ) study on “Effectiveness of Flight Time Limitation (FTL)” revealed that European pilots and cabin crew are experiencing unusually high levels of fatigue.
This new study comes at a time where air traffic is growing rapidly and pilots are increasingly being asked to fly up to the limits of what is legally allowed.
Moreover, fatigue in Europe’s cockpits has become an every-day and growing reality. It is estimated that pilot fatigue contributes to 15-20% of all fatal air accidents related to human error. Pilot and flight crew fatigue has been a topic of discussion for a while – what is the real situation in Europe’s airlines?
Fatigue Hot Spots
EASA on behalf of the EU Commission has just carried out a new study based on a real-life operation of 24 airlines in Europe. The EU-wide survey among 15,680 pilots and cabin crew identified two main ‘fatigue hot spots’ on board of Europe’s aircraft.
The study revealed the major shortcomings of flight time limitations (FTL), the rules governing the duration of flights, service time and pilot rest for night flights and disruptive schedules. The study found an increased probability of high fatigue levels during nights and duty periods with late finishes, among both pilots and cabin crew.
Stressful Night Duties
According to the study, night flights, regardless of their length, cause excessive fatigue to the crew. Night duties (longer than 10 hours) were qualified as particularly stressful: “the results of this research phase highlight that prescriptive limits alone are not sufficient to prevent high fatigue during night flights.”
Night flights come out as particularly fatiguing. The current European FTL rules permit an 11-hour shift through the night – and up to 12:45 hours for a late-afternoon departure – with no breaks, but the need to be awake and alert throughout the flight.
The study has now demonstrated that not only very long night flights (10 hours or more) but all night flights, irrespective of their duration, lead to an excessive level of crew fatigue.
These research results are particularly relevant for airline long-haul operations, as the length of night FTLs determines how many crew members will be on board for many long-haul trips that include a night duty.
Disruptive schedules for short-haul flights
The second duty type and the other major source of fatigue the study researched is described as ‘disruptive schedules’. It mostly affects short-haul operations. Disruptive schedules are those when crew start early in the morning (e.g. at 05:00) or finish late in the evening / during the night (e.g. 23:00-01:59).
Handling consecutive blocks of such duties and the transition between them are routinely at the top of short-haul pilots’ concerns about fatigue and rosters.
Source: aviationvoice.com
The new EASA (European Aviation Safety Agency ) study on “Effectiveness of Flight Time Limitation (FTL)” revealed that European pilots and cabin crew are experiencing unusually high levels of fatigue.
This new study comes at a time where air traffic is growing rapidly and pilots are increasingly being asked to fly up to the limits of what is legally allowed.
Moreover, fatigue in Europe’s cockpits has become an every-day and growing reality. It is estimated that pilot fatigue contributes to 15-20% of all fatal air accidents related to human error. Pilot and flight crew fatigue has been a topic of discussion for a while – what is the real situation in Europe’s airlines?
Fatigue Hot Spots
EASA on behalf of the EU Commission has just carried out a new study based on a real-life operation of 24 airlines in Europe. The EU-wide survey among 15,680 pilots and cabin crew identified two main ‘fatigue hot spots’ on board of Europe’s aircraft.
The study revealed the major shortcomings of flight time limitations (FTL), the rules governing the duration of flights, service time and pilot rest for night flights and disruptive schedules. The study found an increased probability of high fatigue levels during nights and duty periods with late finishes, among both pilots and cabin crew.
Stressful Night Duties
According to the study, night flights, regardless of their length, cause excessive fatigue to the crew. Night duties (longer than 10 hours) were qualified as particularly stressful: “the results of this research phase highlight that prescriptive limits alone are not sufficient to prevent high fatigue during night flights.”
Night flights come out as particularly fatiguing. The current European FTL rules permit an 11-hour shift through the night – and up to 12:45 hours for a late-afternoon departure – with no breaks, but the need to be awake and alert throughout the flight.
The study has now demonstrated that not only very long night flights (10 hours or more) but all night flights, irrespective of their duration, lead to an excessive level of crew fatigue.
These research results are particularly relevant for airline long-haul operations, as the length of night FTLs determines how many crew members will be on board for many long-haul trips that include a night duty.
Disruptive schedules for short-haul flights
The second duty type and the other major source of fatigue the study researched is described as ‘disruptive schedules’. It mostly affects short-haul operations. Disruptive schedules are those when crew start early in the morning (e.g. at 05:00) or finish late in the evening / during the night (e.g. 23:00-01:59).
Handling consecutive blocks of such duties and the transition between them are routinely at the top of short-haul pilots’ concerns about fatigue and rosters.
Source: aviationvoice.com
Tuesday, May 7, 2019
ABSE 2019: Players canvass tackling travel restrictions, develop Agro logistics policy
ABSE 2019: Players canvass tackling travel restrictions, develop Agro logistics policy
Air transport in Africa will only grow if undue limitations and travel restrictions are tackled with the proposed Single African Air Transport Market (SAATM) and unified African passport accepted in truth and implemented fairly.
This is just as a consultant has advocated the development of a comprehensive Agro air logistics policy to encourage investors in the Agro logistics business.
These were sentiments of participants at the 2019 Airport Business Summit Expo (ABSE), held at Radisson Blu Hotel, Lagos. Chairman organising committee, Mr Fortune Idu who spoke while delivering his address, noted that the proposed Single African Air Transport Market SAATM and unified African passport remained good regional initiatives to begin solving the problems associated with Africa’s transport.
He said, the envisaged increase in Africa Air Transport has increased in passenger traffic growth rate of 9.9% between 2017 and 2018 as against 6.3 % between 2016 and 2017 stressing that it has been projected that by 2035 it will rise to 4.3% annually while more people were expected to travel in and out of Africa significantly.
Currently, Mr Idu disclosed that the continent has 731 airports with 419 airlines with the aviation sector supporting 7 million jobs and generating US$80 billion in economic activities.
He opined that more needed to be done with the airport economies of the region being steered towards the right direction to catalyse the growth of the industry through accountable and providing incentives to support airline growth.
He called on for the consolidation of the air transport services in order to build a strong base for the industry since airport has all options on aeronautic and vast non aeronautic revenue. Idu urged stakeholders to not to relent in attending the conference stressing that it was the first edition of the summit in Lagos.
He noted that the first five editions were staged in Abuja with encouraging turn out but hoped that with the movement of the summit to Lagos that it will attract more participants
In his presentation, ‘Airport Economies: Consolidation of Air Transport Services’ aviation consultant, Mr. Tayo Ojuri said the opportunities that exist in the agro air business logistics were not being harnessed by players in the industry.
He observed that cargo Airports were not developed with the intent to provide cargo services and called for the requisite infrastructure to attract investors and most especially the farmers in the agro commodities to grow the industry.
According to him, awareness creation was important for prospective investors especially the farmers to know the benefits derivable from the business.
Ojuri stated that “Agro based commodities from urban areas where their full utility can be realized is important because of the peculiarities of agro commodities that are sometimes bulky or perishable”.
Source: nigeriaflightdesk.com
Air transport in Africa will only grow if undue limitations and travel restrictions are tackled with the proposed Single African Air Transport Market (SAATM) and unified African passport accepted in truth and implemented fairly.
This is just as a consultant has advocated the development of a comprehensive Agro air logistics policy to encourage investors in the Agro logistics business.
These were sentiments of participants at the 2019 Airport Business Summit Expo (ABSE), held at Radisson Blu Hotel, Lagos. Chairman organising committee, Mr Fortune Idu who spoke while delivering his address, noted that the proposed Single African Air Transport Market SAATM and unified African passport remained good regional initiatives to begin solving the problems associated with Africa’s transport.
He said, the envisaged increase in Africa Air Transport has increased in passenger traffic growth rate of 9.9% between 2017 and 2018 as against 6.3 % between 2016 and 2017 stressing that it has been projected that by 2035 it will rise to 4.3% annually while more people were expected to travel in and out of Africa significantly.
Currently, Mr Idu disclosed that the continent has 731 airports with 419 airlines with the aviation sector supporting 7 million jobs and generating US$80 billion in economic activities.
He opined that more needed to be done with the airport economies of the region being steered towards the right direction to catalyse the growth of the industry through accountable and providing incentives to support airline growth.
He called on for the consolidation of the air transport services in order to build a strong base for the industry since airport has all options on aeronautic and vast non aeronautic revenue. Idu urged stakeholders to not to relent in attending the conference stressing that it was the first edition of the summit in Lagos.
He noted that the first five editions were staged in Abuja with encouraging turn out but hoped that with the movement of the summit to Lagos that it will attract more participants
In his presentation, ‘Airport Economies: Consolidation of Air Transport Services’ aviation consultant, Mr. Tayo Ojuri said the opportunities that exist in the agro air business logistics were not being harnessed by players in the industry.
He observed that cargo Airports were not developed with the intent to provide cargo services and called for the requisite infrastructure to attract investors and most especially the farmers in the agro commodities to grow the industry.
According to him, awareness creation was important for prospective investors especially the farmers to know the benefits derivable from the business.
Ojuri stated that “Agro based commodities from urban areas where their full utility can be realized is important because of the peculiarities of agro commodities that are sometimes bulky or perishable”.
Source: nigeriaflightdesk.com
Monday, May 6, 2019
Boeing Admits Knowing About 737 MAX Issues Before Crashes
It appears that the aircraft manufacturerk knewthat the problem exists already in 2017, long before the first fatal crash involving 737 MAX 8 aircraft operated by Lion Air . The accident claimed the lives of 189 people in October 2018.
The second fatal crash followed five months later, when the Ethiopian Airlines Boeing 737 MAX 8 crashed short after take-off, killing 157 on board
No Impact on Aircraft Safety
Boeing said that among the primary features indicators and features for the safe aircraft operations are air speed, attitude, altitude, vertical speed, heading and engine power settings. At elevated angles of attack the most important features are stick shaker and the pitch limit indicator.
For this reason, after detecting the discrepancy between the requirements and the software, Boeing followed the procedures to determine how to resolve the problem, however, came to the conclusion that “the absence of the AOA Disagree alert did not adversely impact airplane safety or operation“.
The problem was set to be fixed during the following planned display system software update, without any urgent need to initiate updates right away.
Worth highlighting that Boeing said “senior company leadership was not involved in the review and first became aware of this issue in the aftermath of the Lion Air accident”.
Importance of AOA Indicator
Investigation of both crashes is still ongoing. Only preliminary reports were released and no final reasons announced, thus, there is no evidence to say that the lack of alert function contributed to fatal accidents.
Important to note that the AOA disagree alert only worked on an aircraft if the airline had purchased an additional, optional feature, known as the AOA indicator. Nevertheless, some aviation experts are convinced that if some features on the aircraft exist, it means that this data is important in any case and should not be considered as not valuable.
Source: aviationvoice.com
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