Is the Canadian Traveller getting good value for their airline taxes?

In 1997, a full fare economy class seat from Toronto to London Heathrow cost $1,960. Taxes were an extra $22. Today, the price of a similar ticket is $2.012 but the taxes have risen to $160. Yes, that's an increase of 800% in 6 years.

This is not restricted to international routes either. Looking at the same timeframe, the fare from Toronto to Vancouver has actually decreased from $1.252 to $1,176, yet the taxes have increased from $28 to $90.

Yes, in part, these increases are justified. Some are due to a change in funding for airport operations, (from government subsidies to user fees), and some result from increased airport security costs after 9/11. But the majority of the increase comes from the need to fund massive airport redevelopment - the new Terminal 1 at Toronto being the most obvious example.

So, is the airline traveller getting good value for their tax increases? For the Canadian business traveller, we believe the answer is an unequivocal no.

While the airport expansions in Toronto, Vancouver, Montreal and Ottawa were necessary because of increased traffic, their hefty increases in fees could never have levied in a competitive business environment. As Giovanni Bisignani, Director General and CEO of the International Air Transport Association (IATA) points out: "While the rest of the industry is looking to increase efficiency, Toronto is in a league of its own with respect to price hikes. GTAA increased the landing fee rate by 208% since 1998 and we don't see any relief in sight."

Toronto Terminal 1 is an exercise in narcissistic architectural extravagance, generating $6 billion in debt with little or no improvement in passenger handling efficiency. Walking through grand halls of impressive design offers little consolation if one has to endure 30 minute-long waits at security and hectic ten minute gallops to the gate. Delays of an hour or more for retrieving checked baggage are surely not acceptable when a host of other, much older North American airports can deliver your suitcases in 20 minutes or less.

Unfortunately, there is no reprieve is sight for the long suffering Canadian airline passenger. France's successful introduction of an Airline Solidarity Tax to provide aid to Third World Countries, (since endorsed by the United Nations), clearly indicates that politicians see airline travellers as an easy target for raising revenues. And with no benchmark for improving passenger handling performance, there is little incentive for operations like the GTAA to improve.

If you agree with Rocky's Rant and wish to make your feelings known, here are the contacts: For Pearson International Airport, contact Eve Wiggins, Manager of Customer Service at the GTAA, phone 416 776 6648 or fill out the Customer Comment Form

For the Federal Government, contact Lawrence Cannon - Minister of Transport, Infrastructure and Communities email Cannon.L@parl.gc.ca Phone (613) 992-5516 Fax (613) 992-6802

Now's the time to make sure you and your family have valid Canadian passports

Most travellers are aware of the new regulations requiring air travellers to the United States to carry either a valid Canadian passport or a NEXUS card which may be used at a Nexus kiosk.

Not so widely appreciated is that these new regulations also apply to travellers passing through US airports en route to other destinations, such as Mexico or the Caribbean.

Canadian Consular Affairs advises that Canadians entering or transiting the United States by air without the required documentation may be prevented from boarding their flights. They advise travellers to obtain the appropriate required documentation before leaving Canada, and to keep this documentation up to date and carry it with them when travelling.

New regulations for Children

In addition, in March, new regulations will require that all children who appear to be 12 or older must provide valid ID before boarding any aircraft flying from Canadian airports.

The new ruling means that children as young as 10 or 11 could be denied the right to board domestic flights if they can't produce valid ID. The program will be extended to international flights in June.

According to the Passenger Protect regulations, the required documents can either be one piece of government-issued photo ID, such as a passport or driver's licence, or two pieces of non-photo ID issued by government, at least one of which must show name, birth date and gender.

Our advice: don't delay. Corporations should make sure all travellers have a valid passport, and individuals with families should apply for passports for all family members as it is universally accepted as valid photo ID whatever your age, wherever you fly. There are currently significant delays due to higher demand for passports, and current wait times are several weeks.

More information on applying for a Canadian Passport can be found at Applying for Canadian Passports

Improved On-line passport applications save time at the Passport Office

The Canadian Government has recently introduced a new process, called epass, to bring on-line convenience to a variety of government services, including applying for passports. Epass uses the Public Key Infrastructure (PKI) to allow Canadians access to electronic services from any Internet terminal in the world, using a unique credential that allows you to use a variety of on-line programs that require enhanced security measures. To register for an epass, users will need to create a username and password, and select three questions and answer them. Registration for an epass may take up to ten minutes. Click here for Full information on epass

Passport offices are now offering a dedicated line for epass applicants, which can save you up to an hour at the passport office.

Nexus cards save time at Canadian International Airports and land border crossings

With the new passport requirements, frequent travelers to the United States should consider investing the time and effort to obtain a Nexus Card. The Nexus Card allows approved persons to cross the border more quickly, using automated NEXUS self- serve kiosks at participating international airports, and to enjoy a quick and simple entry process at land borders. For example, the Whirlpool Bridge at Niagara Falls is only available to Nexus Card holders and avoids the long waits currently common at the border. For more information on the Nexus Card, Click here

Travel Managers should budget for increasing costs of travel and accommodation

According to a recent study by American Express, continued high demand and shortage of rooms in many cities means that hotel room rates are on the rise again this year, by as much as 18% in some locations. Hotel costs now average over $150 per night, so it's no surprise then to find that the average cost for business travelers is now over $300 per day.

Other trends in hotel pricing are more insidious. Some major hotel groups are trying to persuade large corporate customers to accept dynamic pricing when renegotiating contracts. Under dynamic pricing, the room rate would increase dynamically as room availability becomes restricted and decrease when occupancy levels are low. The hotels point to the potential for savings, but the cynic is tempted to ask why hotels would push such a scheme unless it promised them significantly higher revenues and profits.

Fortunately, dynamic pricing has, so far at least, found little favour among large corporations, who point to budgeting and cost control difficulties when there is no longer a fixed price for a room. However, with demand for high-end hotel accommodation far outstripping supply, we can anticipate increasing accommodation costs for the foreseeable future, reinforcing the need to ensure you are booking at the lowest available rate at all times. TTI, through its association with the American Express Travel Services Network, has access to the lowest available rate on all hotel reservations.

Meanwhile, car rental prices are also on the rise, increasing by 10% in the past 12 months to $85.oo per day. The biggest part of this increase comes from taxes and fees that airport authorities add to the basic rental price. These taxes are often hidden from travelers until they get to pay their bills - another insidious practice. See Rocky's Rant for more about airport taxes and their effect on business travel.

Prompt action by Air France rescues schoolchildren stranded at Charles de Gaulle

In an era when travel suppliers are making every attempt to cut costs, often sacrificing service for efficiency, it is encouraging to hear of an airline responding to a situation above and beyond reasonable expectations.

Recently, five 15 year-old Canadian students, visiting France on an exchange program over the March Break, missed their return flight from Paris. One of the five did not get to the departure gate on time and the others decided not to board the plane and leave their friend stranded.

Under IATA rules, Air France could have insisted on all five buying new tickets. Instead, when the group went to Air France's customer service desk to find out how they could get home, the airline responded by securing them seats on the next flight, arranging overnight hotel accommodation at no cost and providing a 24 hour chaperone service to ensure their safety and security - all within half an hour.

They arrived home safely, 24 hours late, much to the relief of their parents - which incidentally included Rocky and Janine Racco Félicitations, Air France - who are the recipients of this issue's Authentic Personal Service Award!

If you would like to share similar experiences of travel suppliers going above and beyond the call of duty, please email rracco@tticanada.com

It’s a good idea to let your credit card companies know when you are traveling abroad

Credit Card suppliers face huge losses due to fraudulent use of credit cards, and have systems installed to track any changes in spending behavior that can signal a stolen card or misappropriated card information. If you plan to travel to an overseas destination, it is advisable to contact your credit card provider to advise them of your travel plans and of your estimated expenditure. This will avoid the inconvenience and aggravation that can result from non-authorization of credit card transactions while overseas.

When Your Flight Gets Cancelled Travel Insurance Can Help You Get There On Time

Sometimes, inherent optimism tempts people not to take out travel insurance when they fly. It is, after all, optional. However, quite frequently, we come across circumstances when not having such insurance could have been very costly. Consider this story, fortunately with a happy ending:

Two TTI clients had booked a vacation which was to begin with two nights at the very exclusive and hard-to- get-into Burj el Arab Hotel in Dubai - better known perhaps as The Sail. Their flights were booked from Toronto to Dubai via New York.

On the day of their departure, all flights from Toronto to New York were cancelled because of weather conditions in New York. They were stuck at the airport, with the dream vacation rapidly becoming a nightmare.

Because the clients had travel insurance, their TTI Travel Specialist was able to re-route them the same day to Dubai via London - a change that would otherwise have cost them over $4,000 per person. They arrived in Dubai close to their scheduled time, their dream vacation intact.

TTI recommends clients make sure they have travel insurance for all out-of-Canada trips. You really never know when you might need it!

More Canadians choosing Costa Rica for Vacations

For several years, Costa Rica has been enjoying a growth in popularity as a tourist destination, and today eco-tourism is the country's number one industry. This fascinating destination is becoming more popular each year with Canadians, and here we profile some of the interesting vacations available.

First, some interesting facts: The country is quite small, slightly smaller than Nova Scotia and covers only 0.1% of the global land mass. YET Costa Rica boasts 5% of all species on the planet today, making it the most biologically diverse country in the world. It is the only place where you can view the Atlantic and Pacific Oceans at the same time. It was the first country to abolish its army, diverting defense budgets into health care and education. The result: a literacy rate of 96%, 50% higher than its neighbour Nicaragua, and an average life expectancy of 77 years, equal to the USA.

The people of Costa Rica are generally warm and friendly, and proud of their national motto "Pura Vida," meaning literally "The Pure Life." The country is predominantly safe and crime free, although it is not advisable to leave valuables in an unattended vehicle. There is a welcome lack of beach vendors and other forms of tourist hassle.

Costa Rica offers a wide variety of vacation experiences, which may be sampled according to individual taste.

The Pacific Coast offers miles of pristine beaches, excellent surfing, and a selection of sports activities including golf, scuba diving, snorkeling, and sport fishing. The Northern Caribbean Coast features an abundance of wild-life, with wilderness eco-lodges set among the rain forest and waterways, while further south there is excellent surfing and a unique ambience, part Latin American, part Caribbean island.

In between, the remarkable diversity ensures something of interest, no matter where you stop. With constantly changing scenery and 25% of the country devoted to National Parks, it is hardly surprising that a significant percentage of tourists visit several locations as part of their vacation. Whether exploring volcanoes, viewing wild-life, or engaging in more exciting pursuits such as white water rafting or canopy rides, there is something to cater for everyone.

Costa Rica, like all tropical climates, has both a rainy and dry season. The timing of the rainy season varies depending on what part of the country you wish to visit. High season lasts from Christmas through the end of March, but Costa Rica can be an enjoyable destination at almost any time of the year.

Getting around can by road can be a leisurely pursuit, especially in the rainy season. Government efforts to improve the roads has made travel easier in recent years, but the mountainous terrain and volume of traffic mean even 100km can become a two hour journey. There are other options to renting a car however. Two internal airlines, Sansa and NatureAir, fly from San Jose directly into all the most popular destinations, and several tour operators offer an inexpensive door-to-door transfer service.

Getting there is also straightforward. There are direct, non-stop flights from Toronto to San Jose and Liberia, as well as a variety of flights from all over North America via gateway cities such as Newark, Houston, Miami, Los Angeles and Charlotte.

If you require further information about destinations in Costa Rica, please contact your Vacation Travel Specialist at TTI.