High Cost: Travellers Dump Local Agents, Buy Foreign Tickets Outside Nigeria

Nigeria’s economy is reportedly losing up to 40 per cent of revenue due to foreign airline tickets purchased outside the Nigerian travel market, LEADERSHIP can report.

It was gathered that 40 per cent of travellers leaving the country buy their tickets abroad due to significant fare disparities in the Nigerian travel market.

Speaking to LEADERSHIP, the National Association of Nigerian Travel Agencies (NANTA) said although these travels originate from Nigeria, the tickets are bought from other markets.

According to the association’s president, Yinka Folami, travellers patronise foreign markets because prices are cheaper than those in the Nigerian market.

“There is a 40% decline in sales of foreign air tickets in Nigeria. Our BSP (Billing and Settlement Plan) reporting is led by tickets bought within Nigeria, so this 40% decline reflects an increase in tickets purchased outside the Nigerian market. Although the travel originates in Nigeria, the tickets are bought in other markets, which we consider unfair. This happens because prices in these markets are better than those in Nigeria.

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“To me, it defies logic that when a trip originates from Nigeria, say Lagos-London-Lagos, that same ticket could be cheaper to buy in China or Gabon than in Nigeria. It’s a Lagos-London-Lagos ticket, yet someone in Gabon or China gets a better fare than I do in Nigeria,” Folami stated.
Folami also mentioned that due to this market share loss, Nigeria has dropped to the number three position in BSP reporting.

Folami, who is the managing director of Travel and Logistics Centre Limited, added that Nigerians’ income has also been lost in other countries where tickets are purchased.

“NANTA is engaging with the government and other stakeholders on this issue as it’s eroding our market. This disparity in fares for trips originating in Nigeria is diminishing our market share. We’re calling on the government to address it because, while these are still our passengers, someone else is benefiting from the sales, which is detrimental to our BSP reporting.

“For instance, we used to be number one in Africa, but we are now third. We’ve also lost revenue for the Nigerian travel economy since 40 per cent of ticket sales that would have generated income in Nigeria is going outside the market due to cheaper prices for trips originating in Nigeria. For example, in China, a travel agency can offer a cheaper Lagos-London-Lagos ticket.”

Regarding a solution, the NANTA President recommended that the government eliminate the disparity between Points of Sale and Points of Origin.

“Simply put, there should be no disparity between the Point of Sale (POS) and Point of Origin (PO). The disparity between these two points is causing the decline in our ticket sales. Currently, the price at the POS is more favourable than at the PO.

“As long as this disparity exists, our market will continue to erode. Airlines are the best entities to help resolve this issue by closing the gaps between Points of Sale and Points of Origin. When the PO is Nigeria, but the POS is China, it results in a more favourable fare for someone in China for a Lagos-London-Lagos trip,” he said..