WestJet is calling for “transparent and all-inclusive vacation pricing” in Canada, reports managing editor, Michael Baginski in this week’s digital edition of Canadian Travel Press.
Noting that the Canadian Transportation Agency now requires “all-in-advertising” for airlines – that is, prices that include taxes and fees — WestJet says the rules should apply to tour operators too, including OTAs.
At the heart of the issue is lack of consistency in pricing that “varies by tour operator” and disadvantages wholesalers that do apply all-in pricing to their marketing.
“This is an area I believe is getting out of hand,” WestJet Vacations VP Tim Croyle told a trade audience at WestJet’s recent Travel Partner Awards in Toronto, suggesting that some operators weight more pricing into taxes and fees, making the base price lower and more attractive to consumers and, at the same time, lowering the commissionable price for agents.
“It’s bad news for travel agents for the industry [and] I think it reflects badly on the industry.
“We’ve taken it upon ourselves,” Croyle crowed, “to take a leading role in the industry. We invite you to join our push for changes.”
Croyle told Canadian Travel Press that the issues has come to a head again with “the Canadian dollar dropping like a stone,” which cuts into tour operator margins.
During the summer, plenty of discussion, as well as research and focus groups took place at WestJet, he said, in which company execs asked, “Are we just be stupid?” by taking the high road and offering all-in prices in its tour operator advertising.
For the full story, check out this week’s digital edition of Canadian Travel Press by clicking here.