Airfare volatility and shifting global dynamics are reshaping how Canadian travellers book flights and how advisors sell them. In this week’s Take 5, Sam Patel, B.Comm., CFG and ‘Chief Fun Guy’ at Airnets, weighs in on pricing pressures, evolving booking behaviour and how advisors can stay competitive while navigating an increasingly complex air landscape.

1.With ongoing geopolitical tensions in the Middle East impacting fuel supply and pricing, how are you seeing this translate into airfare costs for Canadian travellers, and what guidance are you offering travel advisors navigating these increases?

“In the travel industry, we have become very familiar with the word ‘change’. After the pandemic, revenge travel helped drive a strong rebound, and consumers have made it clear that they want to enjoy the experience today rather than wait for tomorrow. 

“While I do believe there may be a modest short-term impact in certain regions, overall fuel costs are not likely to deter consumers from their vacation plans. We continue to see strong interest in travel to North America, Asia and Central and South America. Fuel cost will have more of a challenge for the airlines in terms of unexpected large costs, which will be offset by a certain percentage by implementing fuel surcharges and in some regions cancellation of flights/reduced schedules.”

“Given the current uncertainty, we are advising our sub-agents to ticket bookings immediately whenever possible to avoid additional fuel surcharges from the airlines. In the short term, we do expect jet fuel costs to continue rising, so acting quickly can help protect both advisors and their clients from further price increases.”

2. As a consolidator working with over 60 airline partners, what trends are you currently seeing in demand across key regions, and are there any notable shifts in booking behaviour among Canadian travellers?

“At the outset of the Middle East crisis, it was inevitable that we would see a significant number of refunds, and many agents did rebook clients to alternative regions. However, after the first few weeks of the conflict, we saw a considerable decline in refunds, and airline sales have remained consistent with demand levels from previous years. 

“We are seeing recovery in travel to the U.S., continued strength in Asia and steady demand across parts of Europe. At the same time, Africa, Central America and South America are all showing increased sales. 

“The visiting friends and relatives (VFR) market remains very strong, and luxury leisure travel continues to be highly resilient. Overall, Canadian travellers are still prioritizing travel but they are also becoming more flexible in terms of destination and routing.”

3. With airfare volatility becoming more pronounced, how can travel advisors leverage net fares and consolidator rates to remain competitive against online booking platforms?

“Adding NDC fares to our booking platforms has given agents another valuable tool to deliver both savings and stronger service to their customers. It allows them to offer more competitive pricing while also reinforcing the value of booking through a trusted advisor. 

“Net fares in the Canadian market continue to be especially beneficial for agents who prefer to build their markup into the fare so they can be properly compensated for the time and expertise involved in selling air. Many airlines allow markups of up to 25% and agents are increasingly maximizing these opportunities. 

“Post-pandemic, advisors are doing far more than simply issuing tickets. They are helping clients navigate labour disruptions, weather events, flight cancellations, schedule changes, and geopolitical developments such as the Middle East crisis. Because it can be difficult to charge for that support after the fact, many agents are now increasing their service fees or upfront markups on net fares. That approach helps them remain competitive while still being fairly compensated for the complexity of the work they do.”

4. What role does technology play in supporting your network of over 4,000 agencies, particularly when it comes to efficiency, pricing transparency and servicing non-IATA or home-based advisors?

“At Airnets, we understand that selling air is a highly competitive business. One of the ways we support our network is by not charging any ticketing fees – in fact, we have been issuing tickets for free for over 10 years.  

“Our technology is available 24/7 and gives both IATA and non-IATA agents access to a wide range of fare options. This not only improves efficiency and pricing transparency but also helps reduce the risk and cost associated with debit memos, incorrect exchanges and refund errors that can happen when less experienced agents are handling complex air files. It also frees advisors up to focus on selling higher-margin products. 

“We are seeing agencies continue to book in the GDS and queue their files to us, particularly as some have given up their IATA accreditation. At the same time, many advisors are choosing not to use a GDS at all. For those agents, we offer access to net, NDC, commissionable and published fares, all of which allow for markups and service fees so they can remain competitive with airline websites and OTAs.

“Airnets is also well known for supporting sub-agents with complex, multi-segment itineraries that cannot always be handled effectively through technology alone but can be managed by a highly experienced Airnets agent.”

5. Are there specific tools, training or support initiatives Airnets has introduced to help advisors better manage complex itineraries and fluctuating fares in today’s environment?

“Yes, many host agencies, networks and travel companies have invited Airnets to participate in keynote speaking engagements and webinars focused on selling air. With every airline offering different rules, fare families and servicing requirements, it is completely understandable that many advisors feel anxious or hesitant about selling air.  

“At Airnets, we recognize that challenge, and our team often acts as a hands-on help desk for our sub-agents. We are proud to say that we have helped many advisors go from not selling air at all to confidently selling it and generating meaningful revenue from it. 

“This is especially true in the luxury market, where many agents are earning strong margins from premium economy, business-class and other high-value air bookings. Our role is to support them at every step, whether that means training, servicing, troubleshooting or helping them close more complex itineraries with confidence.”

For more information, go to www.airnetsintl.com.