Air Canada recently offered a 25% discount on base fares, prompting Dan Pomerantz and Melanie Lyman-Abramovitch to rebook their Montreal to Chicago flight to take advantage of the sale. Despite the discount, the new tickets ended up costing more than the original ones due to dynamic pricing. Air Canada explained that an undisclosed 20% discount applied to the initial booking. This experience highlights the challenges consumers face with fluctuating base fares during promotional sales.
As more businesses adopt dynamic pricing, concerns about transparency have been raised. Industry experts are calling for clearer pricing practices to help customers determine if advertised discounts are truly beneficial. The Competition Bureau is investigating algorithmic pricing, noting that it can create confusion and hinder consumers’ ability to make informed decisions about pricing.
Pomerantz and Lyman-Abramovitch expressed frustration with the lack of transparency in discounted airfare promotions. They emphasized the need for change in the industry. The Competition Act prohibits misleading advertising, but dynamic pricing complicates the calculation of actual savings for consumers. Experts suggest that businesses using dynamic pricing should disclose algorithm operations during promotions to enhance transparency and consumer decision-making. The Competition Bureau continues to monitor dynamic pricing practices to ensure fair competition in Canada.
