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WestJet-Sunwing Deal Poised for Trudeau Approval; March Break Travel Surges; Union Blasts Toronto Pearson Limits

WestJet’s controversial takeover of Sunwing is set to be approved today by the Trudeau government.

WestJet also has been given federal licenses for flights to Hong Kong, the Philippines, Singapore and Malaysia.

The Globe and Mail this morning (March 10) reported that the announcement will be made today, providing WestJet with a huge increase in its share of the packaged vacation business. 

Calgary-based WestJet and Toronto-based Sunwing announced the proposed merger in March, 2022. The federal Competition Bureau later stated that the takeover would lead to fewer choices for Canadian travellers, and higher prices.

The Globe story said the Trudeau government in Ottawa is expected to put conditions on the WestJet-Sunwing merger.

Meanwhile, the Canadian Transportation Agency this week granted licenses to WestJet for new Asia flights. After previously granting the airline access to Japan, the agency now has given its blessing for WestJet to fly to The Philippines, Hong Kong, Malaysia and Singapore.

Those flights presumably would be from Calgary, but there’s been no announcement from WestJet. The Alberta-based airline has previously announced plans to fly from Calgary to Tokyo, as well as Barcelona and Edinburgh.

On a related note, the CTA on Thursday granted a license for Flair Airlines to begin flights to the Dominican Republic from Canada.

KAYAK reports a massive surge in searches for visits to Los Angeles by Vancouver residents. Photo Courtesy Los Angeles Tourism.

MASSIVE SURGE IN MARCH BREAK TRAVEL DEMAND

KAYAK, which bills itself as the world’s leading travel search engine, says data reveals a 75 per cent year-over-year (YoY) surge in travel demand across the country, showing that travel over March Break in Canada is skyrocketing as Canadians are eager to spring into their next trip and enjoy some much-needed sun and fun during their week off.

Top destinations for Canadians this month include Paris, Los Angeles, New York City, Florida, Las Vegas, Hawaii and Jamaica.

KAYAK says demand for March Break travel is topping the charts in major cities across the country, with demand in Calgary up over 100 per cent (122% YoY), followed closely by Vancouver (up 75% YoY) and Toronto (up 50% YoY) compared to the same time last year.

“Despite a 15 per cent YoY increase in flight costs for March travel in Canada, we’re seeing Canadian globetrotters embrace their wanderlust, flying to international destinations in Europe and Asia, as well as tropical destinations where palm trees are a frequent sighting,” officials said.

Here are the top trending destinations for Toronto and Vancouver.

  1. Paris, France (132% YoY increase)
  2. New York, New York (100% YoY increase) 
  3. London, England (96% YoY increase)
  4. Fort Lauderdale, Florida (94% YoY increase)
  5. Orlando, Florida (90% YoY increase)
  6. Las Vegas, Nevada (85% YoY increase)
  7. Liberia, Costa Rica (82% YoY increase)
  8. San José, Costa Rica (81% YoY increase)
  9. Montego Bay, Jamaica (65% YoY increase)
  10. Cancún, Mexico (60% YoY increase)
  1. Los Angeles, California (185% YoY increase)
  2. Las Vegas, Nevada (130% YoY increase)
  3. San José del Cabo, México (117% YoY increase)
  4. Phoenix, Arizona (109% YoY increase)
  5. Kahului, Hawaii (82% YoY increase)
  6. London, England (75% YoY increase)
  7. Puerto Vallarta, Mexico (65% YoY increase)
  8. Palm Springs, California (58% YoY increase)
  9. Bangkok, Thailand (52% YoY increase)
  10. Manila, Philippines (29% YoY increase)

 

People standing in line with luggage at the airport check in. (CNW Group/Unifor)

UNION BLASTS TORONTO PEARSON PASSENGER LIMITS

Leading up to March break and the busy summer travel season, the Greater Toronto Airports Authority (GTAA) decision to cap flights and the number of travelers fails both passengers and airport workers, says Unifor.

“The GTAA is punishing the traveling public by limiting flights and services as a band-aid solution to airport congestion, instead of fixing the problem by implementing common sense solutions to improve job quality and hire needed workers,” said Unifor National President Lana Payne.

“We need to end the chaos in airports – but a travel cap merely limits supply instead of meeting the demand. At the core of things, this is a failure to keep the aviation industry attractive to workers.”

Unifor has repeatedly called on the aviation industry to change its failing workforce strategies by ending the practice of contract flipping and paying airport workers a living wage.

The GTAA announced the caps as a stop gap measure to limit baggage handling and security screening needs during peak times.

“Seeing that the plan hasn’t evolved since first announced last summer, shows just how little effort government and industry are putting into solving the underlying problems.” said Payne. “These measures just contribute to angry and frustrated travelers. Putting on a cap today isn’t relieving the pressure for air travel tomorrow.”

An alpine lake in Engelberg, Switzerland. JIM BYERS PHOTO

CANADIAN VISITS TO SWITZERLAND CLIMBING

Numbers recently released by the Swiss Federal Office of Statistics, show a recovery of 83% in Canadian overnights in Switzerland, for a total of 227,658 nights, just slightly short of the country’s record-breaking results in 2019.

The strong recovery signals a positive trend for 2023 as we enter the busy summer and fall travel season. 

 “The solid second half of the year from July through December is a promising indicator for
the current year and beyond.” said Oliver Weibel, who recently joined Switzerland Tourism as Director Canada. ‘The numbers vastly improved in the second half of the year after travel restrictions were dropped in April 2022.”

The overnight figures combined from the US and Canada to Switzerland in January 2023 are +9.7% higher compared to the same month in 2019, placing North America as the second biggest market after Germany and the largest long-haul market for Switzerland Tourism. Canada is a big and important part of that picture.

“North Americans love experiences in nature with the cultural dynamism that a destination like Switzerland offers in such close proximity. And with the resurgence of the popularity in train travel as a top 5 consumer need** for sustainable travel experiences, Switzerland presents one of the most sustainable ways of seeing multiple destinations in one place,” said Weibel.

Stanley Park in Vancouver. JIM BYERS PHOTO

CANADIAN DOMESTIC AIRLINE PRICES: PRETTY GOOD FOR NOW

Airline prices are high for international travel, but CTV News says increased competition among local carriers has made trips within Canada less expensive.

Roundtrip domestic flights for 2023 averaged $294 as of last week, up 16 per cent from the same time last year but still 15 per cent below the $354 average of 2019, according to Montreal-based travel data firm Hopper Inc.

One expert told the network that Canadians flying between Toronto and Vancouver had a choice of just two airlines a few years ago. and that prices usually hovered between $500 and $600, including taxes. Now Canadians also have options from the likes of Porter Airlines, Lynx Air, Canada Jetlines and Flair, as well as Air Canada and WestJet, and advertised prices can be as low as $147.

I expect those prices won’t last long, and that fares will rise substantially as we get closer to the traditional summer season for domestic travel in Canada.

The new Hyatt Centric hotel in Montreal. PHOTO COURTESY HYATT HOTELS

NEW HYATT CENTRIC HOTEL OPENS IN MONTREAL

Hyatt Hotels has opened the first Hyatt Centric hotel in Canada, the Hyatt Centric Ville-Marie Montréal.

Located in Old Montréal, the property has 177 guestrooms, a restaurant fusing Québec and British cuisines, a rooftop pool (slated for summer 2023) plus four meeting and event facilities, according to hotelmanagement.net.