Air Canada Debuts '99 Program

<B> Air Canada Debuts '99 Program</B>

By Chris Davis

Air Canada has completed a vast upgrade of its group and meetings program, offering zone fares, site inspection fares and at least 5 percent off all fares.

The program, very similar to that of Star Alliance partner United Airlines, is much more extensive than past ones, which basically offered discounts off certain Air Canada-Continental Airlines fares to a melange of corporate and association accounts.

Since Canadian Airlines, Air Canada's primary competitor, upgraded its group program, the need for Air Canada to follow was clear. "I'd like to see revenues increase by a minimum 25 percent," said Vito Cerone, Air Canada's convention and incentive sales manager.

The program also is designed to increase awareness of Air Canada in the minds of American planners. "As we looked at the market, we realized this is exactly the direction we wanted to go in as far as market segmentation," Cerone said. "We felt we had to go after this market. We're not as well known in the United States, so we have to entice planners."

Customers agreed. Air Canada's program "has been kind of lackluster in the last few years, but they're paying more attention to the meeting market now, and we're delighted to direct more business their way," said former Meeting Professionals International president Anna Lee Chabot, head of meetings and assemblies for the Ottawa-based Royal College of Physicians and Surgeons of Canada, which directs 75 to 80 percent of its group travel to the carrier.

Since the RCPS and Air Canada have an existing negotiated group rate, the new program won't affect her much. But she said it should help the airline compete. "They've been listening to their clients and have finally put something in place that's competitive," she said.

Air Canada's zone fares, known officially as "area pricing"--offer 35-40 percent discounts, generally, off standard fares, Cerone said. The United States and Canada are split into 10 zones under the program, with a minimum two-night stay required. But "Canadian and American planners wanted more flexibility in pricing," he said.

The program also offers a 5 percent discount on all fares, including joint fares with United, and another 5 percent discount on fares booked 60 days prior to departure. Planners receive a free ticket for every 40 purchased. Site-inspection discounts hinge on a written pledge to use Air Canada as the meeting's carrier, unless the event is held at a destination the airline does not serve.

Cerone said the program is the result of the current business climate. "Group programs are part of market reality," he noted. "We have a significant convention business, but with United as a partner, we want to streamline our product so the customer can receive more service.