Wednesday, October 10, 2012

The reasons for the rest of the difference are government policies that discourage competition, and




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HIGHER taxes and fees are often blamed for the millions of Canadian passengers eschewing local airports for those in nearby online travel agent training American cities. But according to a new report from the University of Maryland, "Transborder Demand Leakage and the U.S.-Canadian Air Passenger Market", these charges accounted for just 17% to 37% of the difference in fares between online travel agent training Canadian-US cross-border routes and comparable US domestic routes.
The reasons online travel agent training for the rest of the difference are government policies that discourage competition, and the airlines themselves. The report s co-author, Martin Dresner, points out that "Air Canada appears committed to serving time-sensitive business travellers at the expense of price-sensitive leisure online travel agent training or non-business travellers. Discount carriers like Southwest and Jet Blue subsequently stay out of the transborder market and take advantage of the passengers leaking to the US airports along the border."
Canadians, Mr Dresner said, tend to be sensitive about paying more for the same products and services than Americans do, especially since the Canadian dollar is near par with the greenback. The study found that the average fare from Chicago to Toronto in 2008 was $232.70, compared with $101.31 for Chicago to Buffalo, which is about two hours south of Toronto. In 2004 the figures were $179.22 and $153.90 respectively.
More than 4.7m travellers online travel agent training in Canada used "detours", such as substituting Buffalo for Toronto, Burlington, Vermont, for Montreal and Seattle for Vancouver. In doing so, they collectively saved $480m, and cost airlines in Canada $1.3 billion online travel agent training in lost revenue in 2008.
"Policymakers should re-think the Open Skies agreement to promote low-cost carrier participation in this market and re-evaluate carrier antitrust immunity," said Mr Dresner, an Ontario native online travel agent training who admits to often flying into Buffalo when his end destination is actually Toronto. "(Antitrust immunity) online travel agent training leads airlines into alliances to share costs and agree on prices. Simply, they don t compete."
It may only be $100 per person but when it is a family of 4 then it adds up. In fact, it is frequently more than just $100 or so. I have travelled by jet blue out of buffalo for $250 savings on my ticket alone or I calculate about $200 net of gas and parking. Maybe you are losing an extra hour, but it's so worth it! Regardless. The article started out by saying price doesn't account for all the reasons Canadians fly from the US. Yet went on to discuss pricing exclusively. What are the other factors? Better connections? Ability to visit some shops along the way? Easier passage through border patrol vs the airport (i have checked border crossing times for the several crossing points into buffalo while on my wat to hit up the best way times)? Or, not most recently, as the law has changed, but land was the last type of crossing added to require a passport. Flying into US meant producing a passport whereas at the land border one could get away with just a birth certificate (and driver license to board the plane). Though if you ask me, not getting one's passport is just laziness.
Canadians are fiercely patriotic and loyal to their airline, Air Canada. I am afraid they may be paying online travel agent training dearly for their loyalty. Many years back I read that Air Canada (along with the Canadian government) made a rule that no competing airline flying on the same routes as Air Canada could charge less than Air Canada. This might explain why it is ALWAYS the exact same -high- price to fly between many cities in and out of Canada. Competition is not allowed. Canadians should be very angry with Air Canada for pulling the wool over their eyes for all these years. They have not been rewarded online travel agent training for their loyalty, but punished by paying artificially higher prices.
Thank you for giving me more information. I should have been clearer in saying that - in the past airlines online travel agent training flying the exact US routes as Air Canada were not allowed to charge online travel agent training less. IE. Toronto's Island Airport YTZ to EWR Newark. Air Canada does not fly this exact route from YTZ so Porter can charge what it wants has done very well on this unique online travel agent training situation. We wish the fares in and out of Canada were more reasonable because then we could visit there more often. The 1 hour flight from NYC to Toronto can cost almost as much as it costs to fly to London, Paris sometimes Rome. We love Canada and it's culture.
Really? Your experience is in STARK contrast to my colleagues who cover Canada and fly (or often actually fail to) Air Canada out of desperate necessity. I've yet to hear any of them relate a positive service experience online travel agent training with any AC employee.
But most Canadians don't have a US airport near enough to make any sense, and crossing the border by auto is hardly a picnic, and the airport "security" should be enough to drive out all but the radioactive- immune or sexual violation-tolerant.
"But most Canadians don't have a US airport near enough to make any sense". Not sure of your definition of "most," but more than 1/3 of Canadians live in the Toronto, Montreal, Ottawa, and Vancouver metro areas, which as the article stated, are all within reach of a US airport. Not incidentally, those airports also account for much more than half of Canadian air passengers so the metro areas probably account for much more than 1/3 of air travelers. The average resident of Toronto online travel agent training I'm fairly certain flies more often than the average resident of Moose Jaw or Cold Lake.
I've personally experienced over an hour from Toronto to Pearson airport so 2-ish to Buffalo to save 50% of the airfare probably appeals to a lot of people, regardless of their "patriotism" for Air Canada.
Ottawa is unfortunately a bit underserved. The closest US airport served by a "real" airline is Watertown, 2.5 hours away. And even then, the only flights are American Airlines to Chicago. Just wait till they decide to give Ogdensburg a bigger runway though. There will be tumbleweeds blowing through YOW.
Crossing the border by auto is fairly easy and quick these days. Just travelled from Windsor to Detroit and I had my choice online travel agent training of three open but empty Customs booths to choose online travel agent training from (there were about 10 booths open total). I haven't experienced any problems with airport security at Detroit Metro Airport.
Counting only Burlington VT. ( Greater Montreal), Syracuse online travel agent training NY ( Ottawa, Kingston), Buffalo, NY (GTA, Hamilton, Kitchener- Waterloo, and Niagara), Detroit - Southwestern online travel agent training Ontario, and Bellingham WA.- Greater Vancouver, would capture well in excess of fiftyper cent of the Canadian population
It may be that Canadians online travel agent training have picked up on the US carriers' reputation for exceptional service, and it's worth the drive to be treated well. From security through til the end of the flight, the US is a traveler's dream.
Even as a leisure traveler, the idea of driving 2 hours to Buffalo (plus the uncertainty of waiting times at the border crossing) instead of 30 minutes to Toronto Airport makes those savings seem less impressive. Not to mention the limited number of destinations available non-stop from Buffalo compared to Toronto. And while Air Canada has its problems, it's head and shoulders above most American carriers!
The point you're missing is that when you are flying to a US airport from Pearson, you need to arrive 3 hours prior to your flight, see their website FAQ. You will save significant time and money by flying from Buffalo. As for destinations, Buffalo has over 100 nonstop flights a day to the the top 20 plus markets Canadians fly to, like many Florida destinations, New york, Chicago, Boston, Las Vegas, etc. I don't think that the over 2 Million Canadians each year that choose Buffalo are ill-informed.
I have to agree with this post - we regularly travel from Boston to St Catharines near Niagara and even factoring the hassle of the border crossing Buffalo is cheaper, faster and more convenient online travel agent training than Pearson. We are generally out of the plane and into our limo in minutes at Buffalo. JetBlue is a really nice carrier too- still has "free stuff" on board and is way cheaper than Air "Cana-flot"....
As a Montreal native, I always check fares against those in Burlington and Plattsburgh before booking, and I often end up using those airports. The Canadian system has only allowed for two competitors (Westjet and Porter), and alternatives such as buses are limited in order to keep the rail fares high. Consumers are really losing online travel agent training out
See the pattern? Whenever Canada has a bit more wiggling room in negotiating sufficient number of landing online travel agent training spots and pricing, prices online travel agent training go down. With Europe and US, it is hopeless, as they prefer to operate their own airlines and have a lot more bargaining power over Canada online travel agent training in such matters.
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