Canadian flight prices plummet as airlines use tactic to lure travellers back, expert says
Canadian airlines are offering flights at prices hardly ever seen before, but one expert says there's a strategy behind the deep discounts and that these rock-bottom deal won't stick around for long.
On WestJet, it currently costs $117 to fly one-way from Toronto to Calgary. A flight from Toronto to Vancouver only costs about $10 more.
Meanwhile, a non-stop flight from Toronto to Kelowna will only set you back about $134.
And these deals aren't just for dates during the lockdown. On Air Canada and WestJet's website, the deals appear to go until at least the end of 2021.
"It's time to buy your tickets if you want to get them cheap," says Frederic Dimanche, director of the Ted Rogers School of Hospitality and Tourism at Ryerson University. "I don't think this is going to last very long."
He believes Canadian airlines, like Air Canada and WestJet, are lowering their prices for a variety of reasons.
"The Canadian government will be relaxing their constraints on travel soon … it's important for the airlines to take advantage of this," Dimanche said. "One way that they can do it is by lowering the prices to increase demand."
"It's called price elasticity. It’s a traditional strategy in marketing, you lower the price, you increase demand."
He believes another major factor behind the deep discounts is generating travel confidence in Canadians.
"We know Canadians are not confident about travelling yet," he said. "They need to be told it’s safe to travel again and that’s one objective of the pricing strategies."
He thinks when people tell family and friends they’ve booked a trip, it will help others slowly build confidence in travelling again.
But once demand starts to pick up, Dimanche said the cheap prices from Air Canada and WestJet will disappear because it is not sustainable financially.
"A ticket from Toronto to Vancouver for $140, the airline isn't going to be making a lot of money on this," Dimanche said.
Even WestJet admits that these deep discounts won’t be the new normal, saying in a statement to CTV News Toronto that as the demand to fly increases, so will fare prices.
Air Canada said in a statement that their fare prices fluctuate for many reasons, which includes demand.
It appears these airlines know immediate demand for travel will be within Canada. Both the WestJet and Air Canada websites are promoting their deals and destinations within Canada.
"With provinces setting timelines for reopening, we are promoting our services because Canadians are now planning future travel," Air Canada told CTV News Toronto. "There is pent-up demand, with people eager to visit family and friends, take deferred vacations or even fly for business reasons."
CTVNews.ca Top Stories
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
Disappointment widespread over budget's proposed $200-month disability benefit funding
Advocacy groups across Canada are expressing widespread disappointment about the amount of funding earmarked in the 2024 federal budget for the long-awaited Canada Disability Benefit.
BREAKING Toronto Raptors player Jontay Porter banned from NBA
Toronto Raptors player Jontay Porter has been handed a lifetime ban from The National Basketball Association (NBA) following an investigation which found he disclosed confidential information to sports bettors, the league says.
Earthquake jolts southern Japan
An earthquake with a preliminary magnitude of 6.4 hit southern Japan late on Wednesday, said the Japan Meteorological Agency, without issuing a tsunami warning.
ArriveCan contractor to be admonished by MPs in extraordinarily rare parliamentary display
Enacting an extraordinarily rarely used parliamentary power, MPs have summoned an ArriveCan contractor to appear before the House of Commons on Wednesday afternoon to be admonished publicly for failing to answer their questions.
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
Gas prices across Ontario expected to climb to levels not seen since 2022, analyst says
Ontario is going to see a big jump at the pumps later this week as gas prices in the province hit levels not seen in nearly two years, according to one industry analyst.
Ancient skeletons unearthed in France reveal Mafia-style killings
More than 5,500 years ago, two women were tied up and probably buried alive in a ritual sacrifice, using a form of torture associated today with the Italian Mafia, according to an analysis of skeletons discovered at an archeological site in southwest France.
Paul McCartney and John Lennon’s sons have released a single together
A new Lennon and McCartney collaboration is the last thing anybody expected.