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
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold
A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time.
Manitoba mom praises quick-thinking fire department for freeing daughter stuck in playground equipment
A Manitoba mother is praising firefighters for their quick work in helping her daughter who got stuck at a playground in Lorette, Man.