Stakeholders within the travel sector have expressed their apprehensions regarding Emirates' decision to initiate ticket sales for Nigerian routes in U.S. dollars, prior to the airline's flight resumption on October 1.

A review conducted on Tuesday revealed that all fare listings on the Emirates website are denominated in dollars, with prices remaining competitive compared to other carriers. "While the announcement of Emirates opening bookings should be seen as positive, the fact that it is in dollars complicates matters.

This situation forces individuals to acquire dollars from the black market to purchase Emirates tickets, which exacerbates the demand for dollars, leading to potential scarcity and increased fares," stated Susan Akporaiye, managing director and CEO of Topaz Travels and Tours, as well as a representative of the National Association of Nigeria Travel Agencies (NANTA).

Emirates has previously announced its plans to resume operations to Nigeria starting on October 1, 2024. The airline will provide a daily flight service connecting Lagos and Dubai, enhancing travel options and connectivity for passengers from Nigeria's largest city to Dubai and beyond.

The service will utilize a Boeing 777-300ER aircraft. Flight EK783 is scheduled to depart Dubai at 09:45, arriving in Lagos at 15:20. The return flight, EK784, will take off from Lagos at 17:30 and reach Dubai at 05:10 the following day.

Olumide Ohunayo, an industry analyst and Director of Research at Zenith Travels, shared insights with BusinessDay, suggesting that Emirates may have opened its booking system but could require additional time to adjust pricing to naira or may have introduced fares in dollars, potentially offering lower prices.

“Upon reviewing the Australian route, I discovered that Emirates offers the most competitive fares. If the pricing is in dollars and I need to convert naira to dollars, I might still opt for the dollar fare if it proves cheaper in naira. It’s somewhat complex and could be a marketing strategy. I prefer to wait until October 1 to see how things unfold,” Ohunayo stated.

He emphasized that Emirates cannot afford to alienate travel agents, noting that the airline has remained profitable even without the Nigerian route. “They might be the first airline to challenge the status quo by bypassing travel agents, which I hope they do not pursue. They have demonstrated their strength in the industry without relying on the Nigerian market,” Ohunayo remarked.

He also pointed out that if Emirates was able to generate significant profits during its suspension of flights to Nigeria, they should have a solid strategy in place for success in the Nigerian market.

Ohunayo recalled that one of the primary reasons for Emirates' withdrawal from Nigeria was the issue of trapped funds and the insistence of fuel suppliers on payment in dollars, while other airlines managed to pay their suppliers in naira.

There are several aspects that need to be renegotiated prior to their return. How can we expect them to charge in naira when suppliers are billing for their services in dollars? If we insist on naira pricing, this should also extend to government agencies. When seeking fairness, one must approach with integrity.

Recent data indicates that a round-trip economy class ticket from Lagos to London Heathrow on KLM is priced at N2.3 million, while Air France charges N2.2 million, Ethiopian Airlines N2.7 million, Egypt Air N2.7 million, and Virgin Atlantic N3.2 million.

For business class, a round-trip ticket from Lagos to London Heathrow on Royal Air Maroc costs N5.7 million, Air Peace N6.5 million, Turkish Airlines N6.9 million, Egypt Air N7.1 million, and Qatar Airways N7.4 million.

Emirates offers a round-trip economy class ticket from Lagos to London Heathrow for $1,130, equivalent to N1.83 million, and $4,290, which is slightly over N6.9 million.

For a round-trip economy class ticket from Lagos to Dubai, Emirates charges $987, translating to N1.59 million at the travel exchange rate of N1,620 per dollar. The business class return ticket on Emirates costs $4,418, amounting to N7.1 million.

Other airlines also provide competitive pricing for economy class tickets from Lagos to Dubai: Turkish Airlines at N1.63 million, Kenya Airways at N1.17 million, Egypt Air at N1.3 million, Qatar Airways at N1.3 million, Ethiopian Airlines at N1.5 million, and Emirates at N1.7 million.

In the business class category, Egypt Air charges N4.1 million, Kenya Airways N4.8 million, Qatar Airways N4.97 million, Turkish Airlines N4.98 million, Ethiopian Airlines N5 million, and Emirates N8 million.

Yinka Folami, the current president of NANTA, expressed concerns regarding the exclusivity of the visa policy despite the opening of ticket bookings. “The restrictions remain significant. I anticipate that an airline like Emirates, having been absent from the market for two years, will implement a strategic entry plan. As a Nigerian, I am apprehensive about Emirates charging in dollars.”

Folami stated, "The naira remains our official currency, and from my perspective, the continued denomination of dollars in Nigeria will only exert further pressure on the naira. This is my viewpoint." He emphasized the importance of respecting the country's legal tender, noting that Nigeria, as a sovereign nation, deserves recognition beyond just the cost of tickets