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
NDP motion regarding Palestinian statehood passes after major Liberal alterations
A motion from the federal New Democrats initially calling on Canada to recognize the 'State of Palestine' passed amid widespread acrimony on Monday, after the Liberals drastically altered its wording to see the government simply work towards that aim as part of a two-state solution.
'He didn't want to die': Family of Calgary man killed in standoff speaks out
Family of a Calgary man killed after a 30-hour standoff with police last week are speaking out, sharing details of the tense and heart-wrenching experience.
Toronto family doctor who called patient's body 'perfect' suspended for 3 months: tribunal
A family doctor in Toronto has been suspended for three months after a disciplinary tribunal found that he failed to follow proper protocols while examining a patient's breasts and made inappropriate comments about her body.
Ohio mom who left toddler alone 10 days when she went on vacation pleads guilty to aggravated murder
An Ohio mother whose 16-month-old daughter died after being left home alone in a playpen for 10 days last summer while she went on vacation was sentenced Monday to life in prison with no chance of parole.
Retired teacher pleads guilty to paying for sex with 15-year-old in Collingwood, Ont.
In a Barrie courtroom on Monday, a retired high school teacher from the Niagara Region pleaded guilty to sexual touching and obtaining sexual services from a 15-year-old boy in Collingwood in 2021.
Hertz CEO out following electric car 'horror show'
The company, which announced in January it was selling 20,000 of the electric vehicles in its fleet, or about a third of the EVs it owned, is now replacing the CEO who helped build up that fleet, giving it the company’s fifth boss in just four years.
5 charged in Calgary kidnappings that targeted women
Calgary police have charged five men in a pair of kidnappings last year that targeted innocent victims.
Demand soars for solar eclipse glasses in Canada. Are they worth buying?
The demand for total solar eclipse glasses used to safely view the rare celestial event has been ramping up as sellers, along with astronomy and eye-care experts in Canada, warn that viewing the eclipse with the naked eye is dangerous.
Canadian commander of volunteer fighter group dies in Ukraine
A Canadian-born commander of the so-called Norman Brigade, a volunteer fighting group in Ukraine, has died.