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Unlocking Africa’s Travel Tech Potential Within $13trn Global Travel Industry

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Adam Aziz Travel Tech Potential

By Adam Aziz

In 2019, tourism was a global powerhouse, accounting for 10% of GDP, or roughly $9 trillion. After weathering the pandemic storm, we expect 2023 figures to show a full recovery to pre-COVID levels, in line with data from leading travel platforms and the World Bank. But the story doesn’t end there.

A transformative shift is underway, fuelled by evolving consumer preferences and habits, which could push tourism spending even higher to $13 trillion by 2030. Amidst this dynamic landscape, the travel tech sector is witnessing noteworthy developments. Online Travel Agencies (OTAs) are still capitalising on the shift from traditional to digital platforms, gaining a greater share of the travel and tourism market.

In more developed markets, OTAs are increasingly focusing on improving the user experience by leveraging generative AI. Companies such as Wego, MakeMyTrip, and Trip.com compete and dominate in the Middle East and Asian markets.

At the forefront, Expedia and Booking.com, major industry players, collectively command 60% of all travel bookings in the United States and Europe. This emphasis on technology underscores the industry’s commitment to innovation and adaptation in the evolving realm of travel.

While major travel companies recognise the growth potential in emerging markets like Latin America in their annual reports, the African tourism sector remains relatively underdeveloped and is seldom acknowledged. Nevertheless, Africa presents a considerable opportunity for local online travel agencies (OTAs) to establish extensive inventories on the continent, a feat challenging for non-African entities like Booking and Expedia.

Additionally, there are substantial prospects for businesses that serve as facilitators or catalysts, aiding hotels, restaurants, and leisure operators in establishing an online presence.

Curated trips and Gen AI disruption

Leading travel platforms like Booking.com are transforming into comprehensive trip-planning hubs, covering flights, accommodations, dining, car rentals, and activities. This shift towards “connected trips” is aimed at enhancing customer service and boosting retention and conversion rates, a trend also pursued by Expedia and Trip.com on a global scale. Trip.com emphasises AI’s role in curated trips as a key strategy in its annual report.

Generative AI, particularly AI-powered chatbots, plays a pivotal role in this concept. These chatbots, considering factors like budget and preferences, streamline the process of creating personalised itineraries. Currently, 20% of Google Bard users utilise AI chatbots for travel planning, with this number expected to rise as technology matures.

Why we see Africa as a significant opportunity

The case for online travel in Africa aligns with many global themes driving the online travel industry, such as increased efficiency and greater choice. However, Africa also holds unique advantages that make it an exceptionally promising market for tech companies operating in this space.

In the past three decades, Africa has experienced a remarkable surge in its middle-class population, which has now surpassed 300 million people – a threefold increase. This burgeoning middle class has the means and desire to explore their continent and the wider world and is poised to drive significant growth in the demand for travel services.

The continent’s growing and increasingly globally-minded young population will further strengthen this demand. Many countries boast a median age below 20, and populations are skyrocketing. The 2020s will see the arrival of 450 million new Africans, and by the 2040s, this number is projected to reach 550 million, constituting 40% of all global births.

The transition from offline to online is another pivotal accelerator worth noting. While online travel booking has made substantial headway worldwide, Africa still trails behind. Only 30% of travel bookings in the Middle East and Africa occur online, falling short of the global average of 50%. This gap presents a significant opportunity.

While Internet penetration in Africa stands at 36%, programmes like the World Bank’s Digital Economy Initiative for Africa will enhance Internet accessibility in the coming decade. At the same time, an ever-younger and more tech-savvy population will drive demand for online travel services. Companies facilitating the transition from offline to online travel are well-positioned to harness this immense growth potential.

Enabling travel in Africa

The opportunities in Africa’s travel industry are partly due to its unique landscape characterised by its nascent and fragmented travel market. Within this dynamic environment, two primary categories of technology companies have emerged: companies focused on aggregating inventory (OTAs) and a newer cohort dedicated to providing the digital infrastructure required to bring travel and tourism businesses online.

One common thread connecting these categories is payment processing, a pivotal component for enterprise software providers as they facilitate the transition to online operations. OTAs are venturing into the payments arena, aiming to capture transaction revenue while enhancing the user experience through a more seamless booking process. This trend extends beyond Africa and is evident globally, as the Booking.com annual report highlights.

What’s coming next in travel tech?

The global travel industry has recovered to pre-COVID levels and offers intriguing prospects for 2024 and beyond. Globally, there’s a growing consumer trend of prioritising experiences over material possessions, which could see travel’s share of GDP grow even further, especially considering rising incomes in emerging markets.

In the African market, tech companies are addressing what we refer to as “first-layer challenges.” These encompass optimising intracontinental travel, facilitating the online expansion of businesses, and broadening inventory to strengthen the network. In developed markets, these foundational issues have largely been resolved.

Nevertheless, given the rapid progress in overcoming these challenges in Africa, the increasing tech proficiency among a burgeoning younger demographic, and the trends observed in other emerging markets, we anticipate the preferences of African travellers will swiftly converge with the global trend toward curated, end-to-end travel experiences.

Africa’s next generation of travel technology companies will reap the benefits from an ever-expanding data pool as the offline-to-online transition gains momentum. Their primary focus will be to create refined digital travel products powered by artificial intelligence, all with the singular aim of enhancing the user experience to new heights.

Adam Aziz is an Analyst at DAI Magister

Travel/Tourism

Moving to France After Retirement: What You Need to Know First

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The idea of spending retirement in France comes up often — sometimes because of the climate, sometimes because of the healthcare system, and sometimes simply because of the way everyday life is organised there. But once the initial appeal fades, a practical question usually follows: under what conditions can a retiree actually live in France legally?

The short answer is: it’s possible.
The longer answer requires a closer look.

No “retirement visa,” but a workable solution

Unlike some countries, France does not offer a dedicated retirement visa. This often comes as a surprise. In practice, however, most retired foreigners settle in France under the long-stay visitor visa — a residence status that is not tied to age or professional background.

The logic behind it is straightforward: France allows people to live in the country if they do not intend to work and can support themselves financially. For this reason, the visitor visa is used not only by retirees, but by other financially independent residents as well.

Income matters more than age

When an application is reviewed, age itself is rarely decisive. Financial stability is.

French authorities do not publish a fixed minimum income requirement. What they assess instead is whether the applicant has sufficient and reliable resources to live in France without relying on public assistance. This usually includes:

  • a state or private pension;
  • additional regular income;
  • personal savings.

In practice, the clearer and more predictable the income, the stronger the application.

Paris

Housing is not a formality

Relocation is not possible without a confirmed place to live. A hotel booking or short-term accommodation is usually not enough.

Applicants are expected to show that they:

  • have secured long-term rental housing;
  • own property in France;
  • or will legally reside with a host who can provide accommodation.

This is one of the most closely examined aspects of the application — and one of the most common reasons for refusal.

Healthcare: private coverage first

At the time of application, retirees must hold private health insurance valid in France and covering essential medical risks. This requirement is non-negotiable.

Access to France’s public healthcare system may become possible after a period of legal residence, but this depends on individual circumstances, length of stay, and administrative status. It is not automatic.

What the process usually looks like

Moving to France is rarely a single step. More often, it unfolds as a sequence:

  • applying for a long-stay visa in the country of residence;
  • entering France;
  • completing administrative registration;
  • residing legally for the duration of the visa;
  • applying for renewal.

The initial status is typically granted for up to one year. Continued residence depends on meeting the same conditions.

Restrictions people often overlook

Living in France under a visitor visa comes with clear limitations:

  • working in France is prohibited;
  • income from French sources is not allowed;
  • social benefits are not part of this status.

These are not temporary inconveniences, but core conditions of residence.

Looking further ahead

Long-term legal residence can, over time, open the door to a more permanent status, such as long-term residency. In theory, citizenship may also be possible, though it requires meeting additional criteria, including language proficiency and integration.

For many retirees, however, the goal is simpler: to live quietly and legally, without having to change status every few months.

Moving to France after retirement is not about a special programme or age-based privilege. It is a question of preparation, financial resources, and understanding the rules. For those with stable income and no intention to work, France offers a lawful and relatively predictable way to settle long-term.

No promises of shortcuts — but no closed doors either.

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Trump Slams Partial Travel Ban on Nigeria, Others Over Security Concerns

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By Adedapo Adesanya

The United States President Donald Trump has imposed a partial travel restriction on Nigeria, as part of a series of new actions, citing security concerns.

The latest travel restriction will affect new Nigerians hoping to travel to the US, as it cites security concerns and difficulties in vetting nationals.

The travel restrictions also affect citizens of other African as well as Black-majority Caribbean nations.

This development comes months after the American President threatened to invade the country over perceived persecution against Christians.

President Trump had already fully banned the entry of Somalis as well as citizens of Afghanistan, Chad, Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Myanmar, Sudan, and Yemen.

The countries newly subject to partial restrictions, besides Nigeria, are Angola, Antigua and Barbuda, Benin, Dominica, Gabon, The Gambia, Ivory Coast, Malawi, Mauritania, Senegal, Tanzania, Tonga, Zambia and Zimbabwe.

Angola, Senegal and Zambia have all been prominent US partners in Africa, with former president Joe Biden hailing the three for their commitment to democracy.

In the proclamation, the White House alleged high crime rates from some countries on the blacklist and problems with routine record-keeping for passports.

The White House acknowledged “significant progress” by one initially targeted country, Turkmenistan.

The Central Asian country’s nations will once again be able to secure US visas, but only as non-immigrants.

The US president, who has long campaigned to restrict immigration and has spoken in increasingly strident terms, moved to ban foreigners who “intend to threaten” Americans, the White House said.

He also wants to prevent foreigners in the United States who would “undermine or destabilize its culture, government, institutions or founding principles,” a White House proclamation said.

Other countries newly subjected to the full travel ban came from some of Africa’s poorest countries — Burkina Faso, Mali, Niger, Sierra Leone and South Sudan — as well as Laos in southeast Asia.

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Detty December: FCCPC Investigates Possible Exploitative Air Fares

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By Adedapo Adesanya

The Federal Competition and Consumer Protection Commission (FCCPC) has commenced an investigation into pricing templates behind high ticket rates charge by some airlines on some domestic routes.

A statement issued by the Director of Corporate Affairs of the commission, Mr Ondaje Ijagwu, in Abuja said the investigation was to establish possible violations of the provisions of the law.

Mr Ijagwu said that concerns had been expressed widely in the past few days over what appeared to be coordinated manipulation or exploitation in the pricing of airline tickets by some airlines on certain routes, adding that the routes where concerns had been raised included the South-East and South-South, as the festive season began.

According to him, the ongoing investigation targets operators on the identified routes.

He said the commission would apply appropriate enforcement measures where evidence showed any violation of the Federal Competition and Consumer Protection Act (FCCPA).

Mr Ijagwu explained that Air Peace, had instituted a court action seeking to restrain the agency from examining its pricing mechanisms, following the commencement of an investigation into its pricing model after widespread complaints from members of the public.

He said the ongoing inquiry was without prejudice to the case instituted against the Commission by Air Peace.

The director quoted the vice chairman of FCCPC, Mr Tunji Bello, as saying “the commission would not hesitate to act where evidence showed that consumers welfare or market competitiveness were being undermined.

”For the avoidance of doubt, we are not a price control board but the FCCP Act 2018 empowers us to check the exploitation of consumers.

”When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.

”Given the arbitrary spike in airfares, the Commission is extending its review of pricing patterns, the basis for the increases reported by consumers, and any practices that could undermine fair competition.

”Where evidence confirms a breach of the Act, FCCPC will apply appropriate enforcement measures,” Mr Bello said, promising that the organisation will continue to provide updates on the ongoing investigations in the aviation industry.

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