7DaysinParadise
Travel => General Travel => Topic started by: travelchick on July 17, 2009, 06:38:29 AM
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Airlines brace for `lean, dark times'
THE CANADIAN PRESS
Both Air Canada and WestJet have introduced dramatic seat sales in anticipation of sluggish fall and winter seasons (July 16, 2009).
Air Canada, WestJet launch seat sales to boost winter travel as passenger numbers continue to fall
Jul 17, 2009 04:30 AM
Chris Sorensen
Business Reporter
It's only mid-July and many parts of the country have yet to experience the swelter of summer, but Canada's two major airlines are already wringing their hands over what's expected to be a brutal fall and winter travel season.
Weighed down by the weak economy, WestJet Airlines Ltd. yesterday launched a 50-per-cent-off seat sale for travel between Sept. 8 and Dec. 16. The Calgary-based airline is also offering a temporary price guarantee for customers who book before July 23, but later find a cheaper fare for the same flight on WestJet's website.
Air Canada, which had introduced its own 40-per-cent-off sale a day earlier, moved quickly to match WestJet's fall sale fares.
While seat sales for the slower fall and winter period aren't unheard of in July, observers noted that this year's sales come amid fares that have already been discounted in a bid to coax recession-weary travellers back into the skies.
"This fall is going to be tough," said Robert Kokonis, president of airline consulting firm AirTrav Inc.
"It's going to be lean, dark times and carriers are going to have to resort to extraordinary measures to fill their planes."
Both Air Canada and WestJet recently reported a slump in June load factors – the percentage of available seats filled – as consumers cut back on travel spending during what is normally one of the busiest travel periods of the year.
Chris Avery, vice-president of revenue and planning for WestJet, said the airline is experiencing "dampened demand" along with the rest of the industry.
Avery said WestJet hopes a seat sale combined with a temporary price guarantee – a tactic first rolled out this spring – will persuade reluctant travellers to take the plunge.
It's a similar story south of the border. Earlier this month, U.S. discount carriers Southwest Airlines, AirTran Airways and Frontier Airlines touched off a round of seat sales with prices below $100 (U.S.) on many shorter routes. The moves marked an earlier-than-usual start for the discounting of fall flights.
Meanwhile, the International Air Transport Association said that fears of a prolonged recession and rising fuel prices have caused "renewed pessimism" for airlines, with some carriers predicting it could take until 2011 for the industry to experience a turnaround.
The industry group said yesterday its latest data show passenger numbers continuing to drop – particularly in the lucrative business-class sector. It said premium travel sales fell by 23.6 per cent in May, which was on top of a 22 per cent decline a month earlier.
While so-called premium passengers occupy less than 10 per cent of an airline's total seats, they can account for as much as 30 per cent of an airline's revenue.
In Canada, the weak economy has dealt a particularly harsh blow to Air Canada, which posted a $400 million loss in the first quarter and could be in danger of filing for bankruptcy protection for the second time in less than six years. In addition to falling ticket sales, the country's largest airline is wrestling with pension deficits totalling $2.85 billion and debt payments associated with recent aircraft purchases.
WestJet, by contrast, continues to push ahead with an aggressive growth strategy that includes plans to expand its fleet of Boeing 737 aircraft from 79 to 121 planes within four years. Selling only economy-class tickets, the airline has so far managed to remain profitable during the downturn and appears to be trying to use an estimated 30 per cent cost advantage over Air Canada to increase its market share.
Kokonis said the situation makes it difficult for Air Canada to follow the lead of other big U.S. carriers by cutting back on flights in a bid to save money. "If Air Canada drops a bit of capacity, WestJet will just come in and replace it."
With files from the Star's wire services
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I've noticed some really good deals for September already.
I was speaking with a travel agent yesterday and she said that the days of Last Minute Deals are over. Now the best savings come from booking a couple of months earlier.
Check out the prices for the fall and you'll see that it's true.
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speaking of seat sales, I saw an ad for airfare to Toronto for 9 bucks! I thought it was a typo. Turned out I was wrong. :binkybaby:
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Last year we booked in September for departure on Nov 7th. I have been checking and prices are not too bad right now for November. I'm going to hang off until Sept. I've got a couple of Plan B's just in case. :grin:
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Well, this is as good a place as any to announce: We are going to Sol Luna Mares and PRDO for the first two weeks in December! It is a major celebration of three different occasions all rolled into one. :grin: The price for PRDO has already gone up 30 dollars but SLM is still the same. I know I shouldn't be checking but you know how it goes. :roleyes: Prices go up and down but I believe we got a good price for PRDO (which I have always wanted to visit) and I really cannot picture the price dropping substantially enough to make me sick. :laughing7: TC :grin:
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TC, that's fantastic news and please put it in the travel calendar so we can all track your countdown.
Is it SLM for the first week and then move over to PRDO for the second?
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Thanks, flopnfly! I will put it on the calendar. And yes, SLM is first; I know it would be a bit disappointing to have it after PRDO--we're saving the better one till last. :icon_thumright: TC :grin:
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(http://i111.photobucket.com/albums/n140/millij_2006/Smilies/congratulations.gif) TC! That is wonderful news and something to look forward to. We loved PRDO and enjoyed meeting up with friends at Sol Luna and enjoyed their food, drinks, and beach as well. I think it would be a great way to do a two week vacation.
We have been watching prices for a trip South late Oct-early November and have been considering making the 9 hour drive to Montreal where I am already seeing lots of decent prices compared to last year's. The only companies offering the Caribbean from the East in the Fall are Air Canada Vacations and Westjet Vacations and both are very expensive!! Hopefully scrounging for the market will make some better deals with them. As Bmnichol mentioned, those deals have come up late Aug - early Sept the past couple of years.
As far as the '09/10 Season to the south I was told by a travel agent that for the Maritimes three tour companies would be sharing the same plane. That does not look very good for last minute prices in the Spring but then again it seems like we were doing the same speculation last year!
As an option I have also been looking at making the 5 hour drive to Maine to travel from there. So far I haven't found any prices that compare to Montreal's and it seems like in the U.S. they have to endure some real "milk runs" with the main carriers to get to their final destination.
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TC, what a great trip that sounds like. :icon_thumright: What tour operator offered that? That might be the way to go - two weeks, two
different resorts. I know Panama offered it, but I am speaking in reference to resorts each on a beach.
You're the early booker this time. *clap*
Hopefully time will fly for you AND stop checking prices. :nono:
Hopefully you will create a ticker countdown too.
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Thanks, Milli. 'Glad to hear you enjoyed both resorts, esp. PRDO. :icon_thumright:
Bebbie, Thanks too! :grin: I checked prices online at my normal sites (selloff, itravel) and when I saw a price I liked, I visited our local travel agency (affiliated with Marlin). Because it was a midway switch, I wanted to book locally. (It only cost $25 pp more and has given me an extra piece of mind.) She said there is no problem doing two resorts as long as the company has both properties in their listings. This trip is through Sunwing. I am also going to book their Elite Plus package, mostly for the extra luggage weight since going for two weeks necessitates more clothes--at least in my mind. :roleyes: The nice thing about this trip is that someone who has done this told me that the transfer costs between the two resorts is about 5 CUC, the price of a taxi. :laughing7: Gotta love that! If I can, I will do a ticker but you know how un-techno I am. :thumbsdown: TC :grin:
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TC, I don't know what you mean by "midway switch". :tard:
That is something to consider doing - two resorts. Sounds like the second one you are going to is more elite. How nice.
Definitely pay the extra for the Elite Plus package - I would for the extra luggage weight allowance. I don't think of the extra clothes you need,
but for the toiletries. And 'stuff' you might want to give away.
*Our TA is no longer in business, so we are considering going to Marlin Travel. They will match prices, plus you get a travel mug and Airmiles.*
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Hi Bebbie, You're going to kick yourself :tard:: "midway switch" just meant that after the first week at the SLM, we will switch (move) to PRDO. TC :grin:
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*Our TA is no longer in business, so we are considering going to Marlin Travel. They will match prices, plus you get a travel mug and Airmiles.*
Bebbie: Is Price Matching a general Marlin policy or just something your local agency will do? (my local agency is now Marlin)
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There has been great deals for the fall that I have noticed since January of this year, I for one look forward to grabbing one :thumbsup:
Congrats on booking TC :icon_thumright:
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Thanks, Bulldog! When I did the calendar, I noticed your name. We have the same birth-month and only a week apart! :thumbsup: TC :grin:
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Ah another who had Christmas too close to their Birthday, really SUCKED as a kid :crybaby2: :crybaby2: :crybaby2:
Or maybe it was just me :ROFL:
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:OTB: It wasn't so bad for me. My mum had it worse: January 2nd. She said there was little money left after Christmas (Depression baby too.)
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Maybe your Mom made it not so bad as she went threw it as a youth :dontknow:
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Congrats on the awesome trip, TC!
enjoy!
We booked with Marlin last time, and they match online, and they print all the stuff out for you.... I liked them..
Karen :cuflag:
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Thanks, kharmar! I know you love PRDO. There are quite a few people here who have gone so I know that I will get answers to any upcoming questions. Will we be seeing your Asian trip photos soon? :laughing7: TC :grin:
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Im trying to remember what PRDO stands for. :thinkz:
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Paradisus Rio de Oro.
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A representative at Marlin also said they will match (in some cases, even better pricing) between tour companies...as long as it is the same day departure and same resort. She said that she did that for a couple - they saved $150. Now thinking back, she said they were able to fly out with Nolitours rather than another airline. Marlin and Nolitours are affiliated with each other. Go to both sites, you will note the star logo that is Nolitours' logo.
BTW went to the Nolitours' site last night and this morning - unable to get pricing for El Salvador past December. Just showing for November and December. That is strange..just a week or so ago I could get a price.