Keys to Success in Quality Product Development for Tourism in Africa

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1 Brief Overview of Ethiopian Airlines & Keys to Success in Quality Product Development for Tourism in Africa The New Spirit of Africa September 2016

2 CONTENT Brief overview of Ethiopian Airlines Keys to Success in Quality Product Development for Tourism in Africa

3 ET Pioneering African Aviation Major Milestones Founded 1945 with support of TWA 1946: 1 st scheduled flight to Cairo with DC : 1 st East-West Africa flights 1962: 1 st jet service in Africa 1973: 1st Flight to China 2010: 1 st African B LR 1998 Transatlantic flight to NYC, IAD 2011: Star Alliance member 2012: The only direct connection between Africa & Canada 2012 Africa s 1 st B : 1 st Flight to Brazil 2015: 1 st Africa-Japan direct flight st direct flight from Africa to DUB & LAX 2016 Africa s 1 st A350

4 Ethiopian Past The Formation Years of Ethiopian Airlines

5 Bringing Africa Together Africa Union

6 Global Alliance Present Key Facts Star Alliance Member Passengers Cargo (Tons) mil. Passengers (2015/16) - 266,223 tones (2015/16) Fleet 80 aircraft (less than 5.0 years av. Fleet age) Main Hub Addis Ababa 2 nd Hub 3 rd Hub Togo - Lomé Malawi Lilongwe Destinations International - 94 Domestic 21 Employees + 10,000 Ownership 100% Ethiopian Government Weekly Flights Weekly flights Daily departures Major Accreditation/ Certifications

7 Largest International Passenger Network in Africa MNL 5 Continents, 94 International destinations of which 51 in Africa

8 21 Domestic Destinations Kombiolcha Dembidolo Hwassa

9 Multiple Hubs: Necessity for Huge Continent FIH 2 nd Hub: Lome with ASKY 3 rd hub: Lilongwe with Malawi Airlines 4 th hub: FIH, under follow up Multiple gateways: Filling the void, availing critical air connectivity

10 STAR ALLIANCE MEMBER

11 Largest Cargo Operator in Africa 35 cargo destinations in 4 continents with 6 wide-body freighters

12 Growing, Modern & Young Fleet Average fleet age of less than 5.0 years In Service: 16 - B B ER 6 - B LR 2 - A B B B NG 15 - B W* 17 - Q400* 6 - B LRF 2 - B F * in total 81 in service 52 on order On order: 30 - B737 MAX 8s (20 firm + 10 options) 12 - A B787-8s 4 - Boeing 787-9s 2 Q400 s

13 The Largest & Oldest Aviation Academy in Africa Pilots Training School Aircraft Maintenance Technicians School School of Marketing & Finance Cabin Crew Training School Full Flight Simulator Training B737, B757 & B767, 787 & Q400, B777 1,300 trainees intake capacity currently 4,000 trainees by 2025

14 The Largest & Oldest MRO Center in Africa Airframe Maintenance (All past & present ET fleet) Engine Maintenance Component Maintenance Line Maintenance AOG Services

15 Our Future Vision 2025 The Leading Airline Group in Africa

16 All Women Functioned Flight

17 Colorful Celebration of ET 70 years Anniversary

18 Keys to Success in Quality Product Development for Tourism in Africa (Compiled with inputs from various reports, texts and slides on tourism available online)

19 Keys to Success in Quality Product Development for Tourism in Africa Types of Tourists Leisure Visiting friends and relatives Holiday Business Meetings, Incentives, Conventions & Events General

20 Keys to Success in Quality Product Development for Tourism in Africa Tourism Involves Many Goods & Services in addition to governments and institutions Food & drink Cultural attractions Natural attractions

21 Keys to Success in Quality Product Development for Tourism in Africa Tourism Benefits and the Potential in Africa Tourism is a powerful vehicle for economic growth and job creation all over the world. Tourism energizes economies and fuels the economic transformation of countries in Africa. Tourism can act as a catalyst for the development of small businesses in related production and service sectors. Its benefits range from livelihoods improvement to export diversification. For African countries the potential of tourism has not been fully recognized as a vital source of economic and development power. The potential for tourism growth in Sub Saharan Africa (SSA) is significant. The region has abundant assets, with expansive beaches, plentiful wildlife, extensive natural and cultural attractions, and adventure opportunities. Considerable opportunities for expansion exist in safari, beach, business, and diaspora tourism, including in regions of destination countries that have not yet benefited from tourism. Furthermore, SSA has great potential to expand products that are more recently in greater demand, such as nature/adventure tourism, cultural heritage tourism, and travel for wellness, health and retirement purposes.

22 Keys to Success in Quality Product Development for Tourism in Africa

23 Keys to Success in Quality Product Development for Tourism in Africa

24 Keys to Success in Quality Product Development for Tourism in Africa The Tourism Product According to Kotler(1984),product is "anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organization, and ideas" Core Benefits(main benefit) Genre Benefit(with Core Benefit service provided) Expected Product(imagine /expectation of benefits) Augmented product(extra/benefit than competitors) Potential Product(what can we offer in future)

25 Keys to Success in Quality Product Development for Tourism in Africa The Tourism Product, cont d Tourism product is a group of components or elements brought together in a 'bundle' to satisfy the consumer's need. It is anything that can be offered for attraction, acquisition or consumption. It includes physical objects, services, personalities, places, organizations and ideas. Tourism Products are those products which can be sold in tourism market. It can be anything which provides satisfaction during the course of visit of the particular tourist.

26 Keys to Success in Quality Product Development for Tourism in Africa Summary, The Tourism Product Tourism product is not a basic need and is based on luxurious concept. Different products are accumulated to give services. Tourism product is the total experience of the visitors. It is experience of place ( Location and people) at a particular time. A tourism product is an object that attracts tourists. Tourism product is the sum of the physical & psychological experience got by tourist during their travelling to the destination. Mix of attraction, accessibility, amenities, accomodation provide satisfaction.

27 Keys to Success in Quality Product Development for Tourism in Africa Conceptual Framework for Product Development 1. Idealization/Visualization Vision & Mission 2. Observe and understand the market/need 3. Synthetize the collected information 4. Opportunity scan Design 5. Visualize new customers using the product 6. Create it and evaluate it 7. Production/Implementation 8. Introduction, Marketing and promotion Action

28 Thank You

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