Covering the Inbound Tourism Industry Since 1996
By the time 2017 is history, Canada’s inbound tourism industry should experience its best year ever according to the industry’s latest monthly profile for June, which shows nearly every one of Destination Canada’s markets increasing and setting the stage for a record year.
In particular, the totals for Mexican arrivals are “off the charts.” Here is how 2017 has been fairing on a monthly basis versus 2016, which itself was a record year.
June 2017 Arrivals Destination Canada
Air Canada, the country’s largest airline, is not taking lightly the recent announcement by WestJet—it is Canada’s second-largest carrier—that the latter is launching a new ultra-low-cost airline by later this year or in early 2018.
Two weeks ago, Calgary-based WestJet, which was founded in 1996 and grew from a charter and regional carrier to an airline that now serves 100 destinations in Canada, the U.S., Europe, Mexico, Central America and the Caribbean, announced that it would launch the new airline which, it hopes, will replicate the success of similar air carriers in Europe. There, WOW airlines, Norwegian and airberlin have fueled a large increase in lift capacity in 2017.† And another European entry into the fold is scheduled for next month when LEVEL airlines, a unit of IAG, which operates British Airways, Iberia and Aer Lingus, begins service from its base in Barcelona.
In the ultra-low-cost model, the cost of a flight’s components are unbundled; the consumer pays one price for a seat, with add-ons charged for seat location, checked baggage, carry-on baggage, food, beverages, and other items for which there was no charge or were considered amenities that were included in the cost of an airline ticket.
Bring it on! Air Canada, which is headquartered in Montreal, does not seem daunted by the prospect of having to compete with WestJet in the ultra-low-cost segment. It already has a low-cost subsidiary, Rouge, which launched in 2013 with flights to Europe and the Caribbean.
The airline’s top officials say that it is in a better position than it has been in more 10 years to respond to WestJet’s move. “We actually have many more tools at our disposal, which gives us a much better feeling and confidence that we are well-positioned to respond to whatever gets put in front of us,” Ben Smith, Air Canada’s president of passenger airlines, told CBC News.
And Air Canada’s chief executive, Calin Rovinescu, said that the carrier will have no problem with WestJet’s plans to expand its main service on international routes by adding at least 10 Boeing 787 Dreamliners beginning in 2019, telling business analysts in a May 5 conference call: “The addition of incremental competition is something that at this stage is not troubling to us.”
Also in the skies over Canada is New Leaf Airlines, which launched in 2015. Based in Winnipeg, it has a small fleet of aircraft that primarily serve destinations in the western part of the country.
Already on Board: Even though the new airline does not yet have a name, it has in place two key officers in it leadership team. WestJet has appointed one of its own, Bob Cummings, as executive vice president of the new venture. Cummings will have accountability for all aspects of this new venture, including planning, branding, pricing, product development and operationalization. He has been with WestJet since 2005, with almost 11 years at the executive vice president level with a variety of responsibilities.
WestJet has also appointed Ed Sims as executive vice-president, commercial, with responsibility for all aspects of the commercial function within WestJet including sales, marketing, product, network planning, revenue management, corporate development, airline partnerships and WestJet Vacations. Sims will join WestJet on May 29, 2017. Sims’ career spans more than 30 years in the tourism and aviation industries, encompassing airlines and tour operators, as well as air traffic control. He has worked in the European and Australasian markets, holding senior commercial and general leadership positions within: Tui, Thomas Cook, Virgin Groups and Air New Zealand where he headed up the international wide-body business. His most recent role was as CEO of Airways, New Zealand’s air navigation service provider.
† See “European Low-Cost Carriers Driving Increase in Lift Capacity between Europe and USA” in the March 9, 2017 issue of the Inbound Report. (https://www.inboundreport.com/2017/03/07/european-low-cost-carriers-driving-increase-in-lift-capacity-between-europe-and-usa/)
Data for the month of January 2017 show that all 11 of the 11 target international markets for Destination Canada registered healthy increases in arrivals versus January 2016. And last year was a near-record year for international visitation to Canada. With 19.98 million international overnight arrivals, 2016 saw the second highest number of arrivals in Canadian history, falling only four-tenths of a percent short of the record high set in 2002 (20.06 million).
Meanwhile, Destination Canada is going to give special focus on India in 2017. A market that has grown steadily in size for the past six years—actually doubling in size during this period—it is expected to generate continued double-digit percentage growth in 2017, especially with the launch of Air Canada service to Mumbai beginning in July 2017.
The just-released final monthly report for 2016 of Destination Canada (DC) showed that it finished 2016 with a strong December and a total number of visitors for the year that was close to a record. Some highlights from Destination Canada’s final monthly report for 2016 included the following:
Notes:
iii. The exchange rate variation is calculated on the average value of the Canadian dollar during during the current month and YTD relative to the same periods in the previous yea.
USA Traffic Highlights: Due in no small way to the strong U.S. dollar vs. the Canadian loon, arrivals from the U.S. into Canada reached levels they had not seen since 2005. Some details:
One of the ways that Canada is celebrating its 150th anniversary in 2017 is by having Parks Canada offer free admission to all Canadian national parks, historic sites and marine conservation areas for the entire year. All a visitor has to do is to order a Discovery Pass, which Parks Canada will mail to you. For all of 2017 the gives its holder unlimited opportunities to enjoy National Parks, National Marine Conservation Areas and National Historic Sites across the country.
But please note:
—You only need to order one pass for your group or family if you are all travelling together. A 2017 Discovery Pass is valid for everyone arriving in the same vehicle at a national park, or arriving together at a marine conservation area or historic site.
—The Discovery Pass is only accepted at national historic sites which are operated by Parks Canada.
—Activities such as tours or parking that normally carry a separate fee may not be covered by the Discovery Pass.
—Camping fees are not included with the Discovery Pass
—Validity Period: January 1st 2017 to December 31st 2017.
—Display: The 2017 Discovery Pass must be hung from the rear view mirror of the vehicle facing forward or it can be placed on the front driver side dashboard facing up.
What about the Travel Trade? As much as possible, Parks Canada says, it will be taking a “business as usual without the payment” approach for the travel trade to help ensure a smooth transition through the year. You can find more information in the travel trade section of Parks Canada website at:
http://www.pc.gc.ca/eng/voyage-travel/voyagistes-traveltrade/voyagistes-traveltrade.aspx
For a list of links to Canada’s national parks, visit: http://www.pc.gc.ca/eng/index.aspx
For securing a copy of the Discovery Pass, copy and paste this link: goo.gl/aW5cO8
