Complaints Department
Good morning, readers. The Skift Global Forum East wrapped up in Dubai, but not before we got more insights and hot takes from around the industry. We've also got some complaints to discuss and we take a look at how African nations are wooing Indian travelers. On the itinerary:
The biggest headlines from Day 2 in Dubai
Consumers not at all pleased with airlines
African nations look to India for tourism
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Growth, Loyalty, and Climate Change
The Skift Global Forum East wrapped its second day in the desert, and there were just as many highlights out of Dubai as on day one. Here's a roundup of what we learned:
Dubai’s approach to sustainable growth was unpacked as a case study for the future of air travel. Dubai Airports CEO Paul Griffiths said that destinations can pioneer multi-modal transport strategy by integrating various transport modes – autonomous cars, trains, and planes – at different stages of a journey.
Kerzner International CEO Philippe Zuber (above) said the brand will never introduce a loyalty program, boldly stating that “luxury can not be traded for points.” He said Kerzner will always focus on its boutique feel, leisure stays, and never shift its attention to mass corporate bookings. “We only do luxury, that’s our space,” Zuber said. “We are purely leisure. We are not bothered by corporate business or deals.”
Google, Intrepid Travel, and Kerten Hospitality spoke about how they’re managing the impact of climate change and the need to lower travel’s impact on the planet.
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Travel marketing is getting infinitely more complex as brands try and stay top of mind. Loyalty programs focused on lifestyle are becoming more common, which require an intimate understanding of individual customers.
Consumer Complaints Soar
We apologize for the delay. Consumer complaints against airlines over the first five months of 2023 topped levels from the year prior during the same period. In fact, there were so many that the The U.S. Department of Transportation’s Office of Aviation Consumer Protection had to delay the release of its data.
U.S. travelers filed a total of 38,135 complaints against U.S carriers, foreign carriers, travel agents and tour operators during the first five months of 2023, according to the PIRG report.
Of those complaints, 26,312 were against U.S. airlines.
Ultra-low-cost carrier Frontier Airlines led the pack, with a consumer complaint ratio of 33.5 per 100,000 passengers. Spirit Airlines came in second place, having a consumer complaint ratio of 13 per 100,000 passengers.
The PIRG report found that complaints directed at the entire industry, including foreign carriers, travel agents and tour operators, increased by 68%.
And what exactly are people complaining about? Here’s a breakdown:
Cancellations, delays and missed connections: 35%
Late or missing refunds: 20%
Lost or damaged baggage and wheelchairs: 16%
Africa Looks to India for Tourism
Africa is increasingly looking to court Indian travelers, with several African nations ramping up their efforts to attract visitors from the rapidly growing market.
Kenyan officials in particular view Indian travelers as an important segment in their efforts to make a full recovery from the pandemic. Kenya attracted the most Indian travelers among all African nations during the first eight months of 2023.
John Chirchir, CEO of the Kenya Tourism Board, described India as a largely untapped market, from which Kenya is looking to attract half-a-million visitor arrivals annually.
RwandAir currently offers two direct weekly flights between Kigali and Mumbai and Rwanda provides visa on arrival to Indian nationals arriving at Kigali International Airport.
The South African government is working to relaunch direct flights between Mumbai and Johannesburg, which were halted during the pandemic. In the meantime, South African Tourism inked a deal with Ethiopian Airlines to offer Indian travelers flights to South Africa.
Tanzania and Uganda are also heavily targeting Indian travelers. Tanzanian President Samia Suluhi Hassan visited India in October to help strengthen ties between the two countries.
Uganda Airlines launched service to Mumbai that month, becoming the fourth major East African carrier to do so. India has emerged as the third-largest source market for Uganda, behind the U.S. and Kenya.
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Skift Travel 200: Top Movers
Marriott Vacations jumped 9.6% today and has soared 14% over the past two trading days. The company announced Tuesday that it would increase its dividend.
Source: The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. Go to the Skift Travel 200. Stock data as of market close.