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
Canadian gov't proposes new foreign influence registry as part of wide-spanning new bill
Prime Minister Justin Trudeau's government is proposing a suite of new measures and law changes aimed at countering foreign interference in Canada, amid extensive scrutiny over past meddling attempts and an ever-evolving threat landscape.
Boeing Starliner capsule's first crewed test flight postponed
The long-awaited first crewed test flight of Boeing's new Starliner space capsule was called off for at least 24 hours over a technical issue that launch teams were unable to resolve in time for the planned Monday night lift-off.
Teacher charged in historical sexual assault of Calgary teenage girl
Calgary police have charged a teacher with the alleged sexual assault of a teenage girl more than 20 years ago.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Man banned from owning animals after fatal Calgary dog attack
The owner of three Calgary dogs that got loose and mauled a woman to death in 2022 has been ordered to pay a $15,000 fine within one year and banned from owning any animal for 15 years.
East-end Ottawa family dealing with massive rat infestation
Residents in Ottawa’s Elmridge Gardens complex are dealing with a rat infestation that just won’t go away. Now, after doing everything they can to try to fix the issue, they are pleading with the city to step in and help.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Newfoundland and Labrador latest province to tighten rules on Airbnbs
Newfoundland and Labrador is the latest jurisdiction to bring in stricter rules for short-term rentals, with a coming set of regulations that will force operators to register with the provincial government.