ICT in Travel and Tourism in Africa
Online ticketing of air travel will dominate consumer e-commerce for the next five to ten years.
Information technology spend in the travel and aviation sector is increasingly focused on delivering real-time services to travellers.
Travel technology group Amadeus has launched a mobile version of its CheckMyTrip platform that enables travellers to check the most up-to-date travel itineraries via the web. This is not only limited to pre-departure flight information, it includes hotel and local weather data at any stage of a journey.
As part of the extension of the Amadeus platform, it has also launched applications for smartphones: CheckMyTrip for BlackBerry and the iPhone.
It’s tip-toeing into the social web as well with the CheckMyTrip application for Facebook. The idea here is to offer customers the ability to share travel plans with friends and family.
Locally, airlines have innovated around the booking, check-in, as well as the payment process.
SAA’s low-cost airline Mango is the first airline to offer payment on its website and through its call centre via retail store cards. It’s also integrated with Shoprite Holdings’ Computicket and Money Market operations, which made it the first to trade air travel through retail outlets.
Rival 1time debuted online check-ins on its website in 2007, and the company says that: “Information technology has been one of the cornerstones of [the] airline since its inception.”
It has worked together with local developer Qualica on reservations and departure control systems.
Qualica’s Departure Control System (DCS) was implemented at 1time’s airport operations around the country.
Says 1time: “The DCS is supplemented by an integrated baggage management system (BMS) that allows the airline to track the movement of luggage through the airport and onto the aircraft.”
The system also works with the airline reservation system to provide an “integrated solution for servicing passengers”.
When 1time launched in 2004, 75 percent of its bookings were done through its website.
This figure is now over 90 percent.
Says Michael Kaminski, IT director of 1time Airline: “The internet booking engine is an important cog in our business.”
World Wide Worx says online ticketing of air travel will dominate consumer e-commerce for the next five to ten years and this has led the airline to do two major website refreshes (together with user experience tweaks) since 2008.
The airline believes that “website speed, functionality and ease of website use for our passengers” is critical.
It’s aiming to include making more travel products and “building customer relationship management functionality into the site”.
While the front-end website sits on top of the airline reservation system, it’s invested in self-service kiosks that also connect to that platform. These are currently online at OR Tambo International Airport and are being installed in Cape Town, Durban and Port Elizabeth.
The logical next step for all airlines will be for real-time flight tracking, which would layer on top of these platforms. Already SAA and the Airports Company of South Africa offer live “flight status” information on their websites.
A year ago, SAA launched a mobile website that allows passengers to track flight schedules, departure information and weather forecasts.
According to SAA, the initiative is in partnership with Star Alliance, the international airline network to which it belongs. Star Alliance developed the Common IT Mobile Platform, which SAA used to launch its own portal for customers.
Game changer
ICT is a game changer in the global travel industry. According to the “Travel Innovation and Technology Trends, 2010 and Beyond”, by PhoCus Wright, trends include discovering alternatives to global distribution systems (GDSs), expanding use of Twitter-like tools, incorporating travel information “anywhere, anytime” platforms, moving toward convergence of social media and location-based services, and increasing use of social media for monitoring.
Bob Offutt, senior technology analyst at PhoCus Wright, indicates the first major technology shift will be an open platform, Open Axis, for airline flight reservation systems, or global distribution systems (GDSs), as opposed to proprietary systems like SABRE.
To enhance the user experience, augmented reality platforms like LAYAR will continue to emerge. Augmented reality is a direct view of a physical environment augmented by computer-generated imagery. Travellers will be able to get a more realistic view of hotels, conference centres and restaurants online.
Says Offutt: “This is an area the industry is looking for ways to monetise.”
Social media will also shape the industry. Its use will go beyond reputation management to modelling products and services based on user-generated feedback and content. For example, users share information on locations and services on TripAdvisor, which can inform and shape the travel plans of others.
Travel information services, like identifying services available at airports and baggage requirements and fees, will continue to grow. On the cellphone, this becomes “anywhere, anytime” and an opportunity for continuous merchandising.
“The industry recognises the growth opportunity is greater in sales beyond tickets,” Offutt says.
Location-based services will enhance both social media and travel information. Imagine being able to visually “walk alongside” someone as he or she takes a tour. EveryTrail and Google Places are examples of location-based services.
But one of the greatest opportunities for the industry is the cellphone. Offutt says this opportunity is particularly suited to Africa.
Simon Bergman, executive director of the Africa Travel Association, agrees. But is the Africa opportunity significant? Yes, it is. While Africa is the least travelled to region in the world, it has sustained growth unlike other regions, according to Bergman.
In fact, “Africa was the leading growth region last year during the economic crisis and many African governments consider it a way to stimulate economic growth,” he says.
According to the World Travel and Tourism Council (WTTC), growth is estimated at 2.8 percent in 2011 and 6.5 percent in 2012 in Sub-Saharan Africa. During this period, the personal and government sub-sectors are estimated to grow above five percent per year, while growth in business travel will hover around four percent. North Africa will perform better in 2011 at 4.75 percent but is estimated to be at 6.5 percent with Sub-Saharan Africa in 2012.
One challenge of the African travel market is a lack of accessible local information. But, it presents a particularly open market for application developers, content providers, and others.
With sustained growth patterns, a conducive environment, and open opportunities for ICT, tourism presents a solid opportunity for the next three to five years.
This piece was commissioned by ITWeb/Brainstorm Magazine for September 2010. Permission was granted to appear on Afribiz.