Westjet changes fare structure, lowers top rates


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WestJet introduces everyday low pricing

Airline offers more value 365 days a year, eliminating the need to wait for fare sales

CALGARY, June 17 /CNW/ - WestJet today introduced new everyday value fares with an enhanced pricing structure that reduces the volatility that has been present in the airline industry by providing lower fares across their entire schedule (330 days ahead of departure). Guests can purchase with confidence when they're ready to book rather than have to wait for a seat sale to get a low price.

In addition, WestJet has taken the extraordinary step of reducing its full price fares by an average of 25 per cent for all flights across its entire 68-city North American and Caribbean network.

"Since the launch of our airline in 1996, WestJet has been the leader in driving prices down and providing value to millions of Canadians," said Hugh Dunleavy, WestJet Executive Vice-President, Strategy and Planning. "This move today reasserts our value leadership position to our guests.

"Feedback from our guests shows that they are frustrated at the unpredictability of fares with seat sales only available up to a few months in advance," continued Hugh Dunleavy. "WestJet is listening and has responded by providing guests the opportunity to book great prices across the entire schedule.

"As part of this new strategy, fares at the higher end of the spectrum will be reduced," concluded Hugh Dunleavy. "For those guests who, for one reason or another, have to travel at the last minute or at peak travel times like Christmas, we've significantly reduced those fares to make them more affordable. This is what our WestJet care-antee is all about - offering great low prices and high value, and most of all, always caring for our guests."

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So what, the $89 YYC-YWG vanish never to been seen again, but I can get $139 in Feb 2011 whenever I want? And the WestJet Y fare drops 20%?

What happens when AC or Porter decides to stir the pot and drops in the low seat sale fares? WJ is going to have to match and this whole thing is for not.

Or does this just mean when they decide to have $89 fares, I can book those fares for the full year? No blackout dates? Christmas is going to be cheap this year?

I'm even more confused now. Me thinks this is just PR grabbing noise from the caring owners. Don't worry though.... it will be front page full colour spread on the front page of tomorrow's Calgary Herald.

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So what, the $89 YYC-YWG vanish never to been seen again, but I can get $139 in Feb 2011 whenever I want? And the WestJet Y fare drops 20%?

What happens when AC or Porter decides to stir the pot and drops in the low seat sale fares? WJ is going to have to match and this whole thing is for not.

Or does this just mean when they decide to have $89 fares, I can book those fares for the full year? No blackout dates? Christmas is going to be cheap this year?

I'm even more confused now. Me thinks this is just PR grabbing noise from the caring owners. Don't worry though.... it will be front page full colour spread on the front page of tomorrow's Calgary Herald.

No where does it say that WestJet will no longer offer seat sales.

It just says that they're reducing fares.

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I really have no idea whether this will add more to the bottom line or not but I do like that we are trying something different.

Why not? We have money in the bank, are profitable and if this tweaks the profits a bit, great! If not, nothing ventured, nothing gained.

I agree with Rick Erickson, AC will probably follow suit. Porter? probably not.laugh.gif

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You should have booked using expedia, most days (mid week in August) you can get a round trip on either AC or Wesjet for 1159.00 for a couple. biggrin1.gif The flight quote is on their nonstops.

I DID book in April...I only paid 977.00 vs what I would have to pay today, and booking via Expedia would have been more expensive than when I booked in April.wink_smile.gif

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Kip: I see I need to take that remedial READING 101 course. Clever.gif

I think Kip got on one of those (never see this low of a price again....we care-antee) prices. Ya, he's checking every day, well maybe not on Sundays, but he's keeping his eye on WJ. :eek: You can bet if he see's a lower price he's on it like a Captain spotting a free newspaper. :dueling:

Just kidding Kip, I too remember the promotion and I can see why you watch.

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Another reason for Westjet's everyday low price strategy could be the result of behind the scenes actions of the Competition Bureau.

The Competition Bureau's view on false or misleading Ordinary Selling Price:

http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/00522.html#false

False or Misleading Ordinary Selling Price Representations

Subsections 74.01(2) and 74.01(3) of the Competition Act are civil provisions. They prohibit the making, or the permitting of the making, of any materially false or misleading representation, to the public, as to the ordinary selling price of a product, in any form whatever. The ordinary selling price is determined by using one of two tests: either a substantial volume of the product was sold at that price or a higher price, within a reasonable period of time (volume test); or the product was offered for sale, in good faith, for a substantial period of time at that price or a higher price (time test).

In the event that the represented ordinary price refers to the ordinary price of suppliers in the market, unless these suppliers have sold a substantial volume of the product at the represented ordinary price, or alternatively, these suppliers have offered the product for sale in good faith at the represented ordinary price, this price cannot be referenced as the ordinary price, and an issue is raised under subsection 74.01(2).

In the event that the represented ordinary price refers to the supplier’s ordinary price, unless the supplier has sold a substantial volume of the products at the represented ordinary price, or alternatively, the supplier has offered the product for sale in good faith at the represented ordinary price, this price cannot be referenced as the ordinary price, and an issue is raised under subsection 74.01(3).

Under these provisions, it is not necessary to demonstrate that any person was deceived or misled; that any member of the public to whom the representation was made was within Canada; or that the representation was made in a place to which the public had access. Subsection 74.03(5) directs that the general impression conveyed by a representation, as well as its literal meaning, be taken into account when determining whether or not the representation is false or misleading in a material respect.

Subsection 74.01 is usually directed at retail organizations that have sale after sale after sale where no consumer actually pays the regular sales price. In these instances the CB rules the "sale" or "Bargain" is misleading because there is insufficient volume of transactions at the non-sales price for which the percentage off is derived. The Brick furniture store was caught and fined last year under this clause. Other furniture retailers (e.g. Sears, Bay, etc.) were also given warnings and had to restrict their constant use of sales.

In Westjet's instance they have opened up the lower Sales Fare buckets for the past 18 months. Additionally, the nonsale "regular" or "full" price was restricted to the last 7-10 days before flight on near full aircraft and not offered at all on empty flights. Additionally Westjet only offers one price point for sale, if the Sale price fare bucket is open, all passengers are accommodated. In AC's instance, the sales price is Tango while the regular price of Tango Plus and Latitude are also offered for sale. Latitude fares are popular with the upgrade crowd, so AC has a volume of passengers paying higher price than the lowest fare offered. Consequently AC can continue to offer sale after sale after sale.

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Another reason for Westjet's everyday low price strategy could be the result of behind the scenes actions of the Competition Bureau.

The Competition Bureau's view on false or misleading Ordinary Selling Price:

http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/00522.html#false

False or Misleading Ordinary Selling Price Representations

Subsections 74.01(2) and 74.01(3) of the Competition Act are civil provisions. They prohibit the making, or the permitting of the making, of any materially false or misleading representation, to the public, as to the ordinary selling price of a product, in any form whatever. The ordinary selling price is determined by using one of two tests: either a substantial volume of the product was sold at that price or a higher price, within a reasonable period of time (volume test); or the product was offered for sale, in good faith, for a substantial period of time at that price or a higher price (time test).

In the event that the represented ordinary price refers to the ordinary price of suppliers in the market, unless these suppliers have sold a substantial volume of the product at the represented ordinary price, or alternatively, these suppliers have offered the product for sale in good faith at the represented ordinary price, this price cannot be referenced as the ordinary price, and an issue is raised under subsection 74.01(2).

In the event that the represented ordinary price refers to the supplier’s ordinary price, unless the supplier has sold a substantial volume of the products at the represented ordinary price, or alternatively, the supplier has offered the product for sale in good faith at the represented ordinary price, this price cannot be referenced as the ordinary price, and an issue is raised under subsection 74.01(3).

Under these provisions, it is not necessary to demonstrate that any person was deceived or misled; that any member of the public to whom the representation was made was within Canada; or that the representation was made in a place to which the public had access. Subsection 74.03(5) directs that the general impression conveyed by a representation, as well as its literal meaning, be taken into account when determining whether or not the representation is false or misleading in a material respect.

Subsection 74.01 is usually directed at retail organizations that have sale after sale after sale where no consumer actually pays the regular sales price. In these instances the CB rules the "sale" or "Bargain" is misleading because there is insufficient volume of transactions at the non-sales price for which the percentage off is derived. The Brick furniture store was caught and fined last year under this clause. Other furniture retailers (e.g. Sears, Bay, etc.) were also given warnings and had to restrict their constant use of sales.

In Westjet's instance they have opened up the lower Sales Fare buckets for the past 18 months. Additionally, the nonsale "regular" or "full" price was restricted to the last 7-10 days before flight on near full aircraft and not offered at all on empty flights. Additionally Westjet only offers one price point for sale, if the Sale price fare bucket is open, all passengers are accommodated. In AC's instance, the sales price is Tango while the regular price of Tango Plus and Latitude are also offered for sale. Latitude fares are popular with the upgrade crowd, so AC has a volume of passengers paying higher price than the lowest fare offered. Consequently AC can continue to offer sale after sale after sale.

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  • 1 month later...

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You have received this e-letter because you have signed up with WestJet's JetMail. If you have received this e-letter in error, or wish to unsubscribe, please send a blank e-mail here. Unfortunately, replies to this e-mail will not be received by WestJet. If you have questions, please share your experience on westjet.com. The privacy of your information is top priority at WestJet, for more information, please visit our Privacy Policy.

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:cool::cool::cool:

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June 17, 2010

WestJet introduces everyday low pricing

Airline offers more value 365 days a year, eliminating the need to wait for fare sales

... Guests can purchase with confidence when they're ready to book rather than have to wait for a seat sale to get a low price.

... "Feedback from our guests shows that they are frustrated at the unpredictability of fares with seat sales only available up to a few months in advance,"

... "This is what our WestJet care-antee is all about - offering great low prices and high value, and most of all, always caring for our guests."

August 12/ 2010

WestJet launches fall and winter seat sale

"This is a system-wide seat sale with all 71 destinations in Canada, the United States, Mexico and the Caribbean "

"Many guests had indicated they were under the impression we were permanently removing seat sales," continued Hugh Dunleavy. "While we will continue with our everyday low pricing structure, it was always our intention to offer seat sales periodically throughout the year."

Nice care-antee. I wonder where all those patsies (er... guests) got the impression that they wouldn't have to wait for seat sales to be care-anteed the lowest price ... oh.... it's because WestJet care-anteed it to them less than 2 months ago. That should help with the frustration.

I can Calgary-antee that the Herald won't be pointing out this sleight of hand reversal-in-policy.

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Nice care-antee. I wonder where all those patsies (er... guests) got the impression that they wouldn't have to wait for seat sales to be care-anteed the lowest price ... oh.... it's because WestJet care-anteed it to them less than 2 months ago. That should help with the frustration.

I can Calgary-antee that the Herald won't be pointing out this sleight of hand reversal-in-policy.

Well here you go bud, in todays Calgary Herald Business section:

http://www.calgaryherald.com/business/WestJet+everyday+values+confused+customers/3392139/story.html

:cool::cool::cool:

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