How to Book International Flights Using Mobile Money
An Atoms & Bits case study
More Tanzanians are flying than ever before. Over 5 million passengers took to Tanzania's skies in just the first nine months of financial year (FY) 2023/24—up from 4.1 million in FY 2022/23. Planes are taking off and landing more often too. The number of flights grew to 205,968, nearly double last year's count.
But while planes fill up and new routes open, most Tanzanians still buy their tickets the old way: by visiting a travel agent or airline office. This might seem strange in 2024. After all, 72% of Tanzanian adults use mobile money. Yet only 13% regularly pay for things digitally, and fewer than 6% have ever bought anything online.
What is New in Tanzania's Sky?
Air Tanzania Company Limited (ATCL) tells part of the story. In 2016, it flew to just three cities within Tanzania. Now it reaches 15 places inside the country and flies to 11 international destinations. The government-owned airline carried 4,000 passengers a month in 2016. Today it carries 90,000. Its share of Tanzania's air travel market grew from 2.4% to 57%.
The money shows this growth too. ATCL now makes TZS 30 billion each month, up from TZS 700 million in 2016. Overall, flying contributes 8.2% to Tanzania's US$75.7 billion economy.
On the other hand, Air France just started flying to Dar es Salaam in 2023, its 31st route in Africa. But the numbers show room for more. Only 8,500 people flew between Paris and Dar es Salaam from January to September 2022. Compare that to London: over 50,000 people flew between London and Dar in 2019, even though they had to change planes along the way.
Beyond Numbers
Tanzania is becoming more connected to the world. The country just signed new flying agreements with Suriname, Algeria, the Czech Republic, and Ivory Coast, bringing its total to 85 countries. Airlines can now fly more routes between these places.
Tourism played a big part in this growth. Between January and October 2023, 1.17 million tourists visited Tanzania—far more than the 716,741 who came during the same months in 2021. The President’s "Royal Tour" film, launched in April 2022, helped showcase Tanzania's attractions globally.
A Technology Gap
Tanzania's aviation sector is growing rapidly. But the way people book flights hasn't kept pace. According to FinScope Tanzania 2023, formal financial inclusion has expanded from 65% to 76% since 2017, driven by mobile money adoption. Currently, 72% of Tanzanian adults use mobile money, making it the country's most popular financial service.
However, a wide gap exists between having mobile money and using it for services:
Only 23% have used mobile money for essential purchases like airtime
Just 13% make monthly digital merchant payments
3% have used QR payments
Less than 1% use bank accounts for purchases
Only 5.9% of Tanzania's adults shopped online in 2021 (GSMA data)
These gaps matter because Tanzania's aviation market keeps expanding.
Digital Solutions Emerging
The market is beginning to adapt. Otapp, an e-ticketing startup established in 2014, recently became Tanzania's first accredited developer for Travelport's Galileo Global Distribution System (GDS), which connects travel agents and airlines.
Just as marketplaces like Amazon allow sellers to reach millions of customers, Galileo enables platforms like Otapp to access a vast array of flight options and book them seamlessly.
Its GDS certification provides direct access to over 400 airlines' real-time inventory and allows integration with local mobile money services.
For international routes, the platform connects to major carriers including:
Emirates, Turkish Airlines, and Qatar Airways connecting through Middle East hubs
Ethiopian Airlines and Kenya Airways linking to other African cities
KLM, Air France, Saudia Airlines bringing European travelers
Edelweiss Air and EuroWings
Key features of the platform include:
Real-time booking across multiple airlines with transparent pricing
Customizable search filters for departure times and layovers
24/7 customer support for booking assistance
Integration with existing payment infrastructure
Try it out here.
What This Means
For Tanzanian travelers, this means being able to search, compare, and book flights from hundreds of airlines through a single platform. Otapp's integration with Galileo also allows you to pay via mobile money, making the process even more convenient.
Implications for local airlines:
Better data about what routes people want
Lower costs than running many physical offices
Easier to fill seats on less popular flights with flexible pricing
Looking Ahead
Recent government efforts show where things are heading. The Tanzania Civil Aviation Authority (TCAA) just spent TZS 31.5 billion to upgrade communication systems between pilots. They're installing new equipment at twelve airports across the country.
But the biggest changes might come from rules, not technology. If Tanzania fully opened its air travel agreements with other African countries (called SAATM), studies show it could:
Increase passenger numbers by 68%
Generate $78.5 million in consumer benefits
Create 3,730 new aviation jobs
Add 28,350 tourism jobs
Bring in 203,100 more tourists yearly
In other words, digital ticketing platforms like Otapp may experience significant market demand in the coming years.