Changes in Airline Advertising a Big Win for Consumers

Sandra Williams

People are angry about having to pay for hidden fees, especially when it comes to travelling.

"I can't stand having to pay for that (expletive) tax, when I purchase a flight" says Jennifer, a 33-year-old program officer from Ottawa, Ontario.

In 2006, the Government of Canada introduced Bill C-11, which requires the Canadian Transportation Agency (CTA) to regulate how airfare is advertised. But over six years have gone by and the Act hasn't been enforced until now.

Canadian low-cost carrier WestJet has used all-in air price advertising in their display ads, banner ads, website landing pages and print materials since early January 2012. WestJet admits that they have a minor technical glitch that their web provider will resolve within the coming months. Today when you book a flight, you will have to hover over the price and an overlay will provide you with the complete price breakdown of that particular flight. In the near future they hope to display the all-in price without the need to hover over the listed price. This feature is not commonly available around the world, and WestJet expects that this level of transparency will please many consumers. And now, Air Canada, too, is advertising all-in pricing.Allison Wallace, a spokesperson for Flight Centre welcomes the change. "It will level the playing field" she says. It won't drastically change the way Flight Centre operates because the company has been disclosing this information for a longtime to please their customers. At any given time you can request a complete breakdown of how you have been charged.

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However, disclosure of pricing, for travel agencies, is not mandatory across the country. For instance, it is required in Ontario but not in Alberta or British Columbia.

Again, the new rules won't change much for some travel agencies, but it could aid in consistency.

Items like fuel cost and airport taxes, which amount to be higher than the more familiar HST, will become very clear. The reality is higher fees are the norm with international flights. In some cases, just traveling through an airport – even if you are in transit – will result in a surcharge. "Unfortunately, it's the cost of doing business," says Wallace.

Inconsistency in airport tax exists even across Canada, where Toronto Pearson International Airport is among the highest in the nation.

CTV news reported that approximately one in five Canadians drive to the U.S. to avoid high airport taxes. Cities such as Bellingham, Washington; Buffalo, NY; Syracuse, NY, and "Montreal's U.S. airport" New York State's Plattsburgh International Airport are popular airport tax havens for many Canadian travellers.

This exodus has cost the Canadian travel industry a lot of revenue. And the numbers are increasing -- for now.

Consumer demand has caused the CTA to fully enforce the issue. An email from a CTA representative says, "The issue is complex and airfare advertising has evolved internationally, particularly in the European Union and the United States since 2007. The European Parliament has had legislation in place since 2008. The United States strengthened its regulations requiring all-in airfare advertising as of January 26, 2012."

Throughout February, the agency will be consulting with the travel industry, consumer groups and individual Canadians. They hope to publish a draft of the regulation in Part 1 of the Canadian Gazette in June 2012. They are asking the public to provide feedback on the proposed regulation before it will be finalized in Part 2 of the Canadian Gazette, which is set to be published at the end of 2012.

Robert Palmer, spokesperson for WestJet welcomes the changes, "We've never been opposed to all-in pricing. Everyone has to play by the same rules."

Wallace and Palmer both agree that sales will go up. All-in pricing may initially cause sticker shock for some customers because the numbers may appear higher than the tantalizing $99 trip to the Bahamas. But it shouldn't take too long for these changes in advertising to settle in.

It looks like this is a big win for Canadian travellers. Now, the price you see is the price you pay -- no strings attached.

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