B.C. Ferries is temporarily slashing off-peak passenger fares across its fleet.
Fares will be discounted by 50 per cent during certain off-peak periods Sept. 8 to Oct. 15, said chief executive Mike Corrigan.
The promotion is made possible by an increase in ferry vehicle and passenger traffic. Passenger traffic increased five per cent and vehicle traffic increased 4.7 per cent in the first financial quarter ending June 30, compared with the same period last year.
“While we are uncertain how long this current growth in traffic will last, this promotion allows us an opportunity this fall to test variable pricing concepts in order to understand their impact on traffic trends, customer responses, and operations,” said Corrigan. “This will help us gather information as we prepare pricing strategies for our Fare Flexibility and Digital Experience Initiative in 2017, which will make variable pricing a permanent part of our service delivery model.”
During the promotion, the 50 per cent fare discount will be available Monday through Thursday on certain mid-day sailings, and on Saturday afternoon and evening sailings. It’s a savings of $8.45 for an adult passenger riding between Tsawwassen and Swartz Bay, a fare on par with what it was in 1997.
In October, regular passenger fares will be discounted by 50 per cent on all sailings on the northern routes.
Seniors travelling on both major and minor routes Monday through Thursday will get a 50 per cent discount off their regular fare meaning they will pay 25 per cent of the regular adult fare.
The discounts not apply to fees for transporting vehicles.
“The fact that the positive trend in B.C. tourism and in our passenger traffic is going against the general trend in the Canadian economy makes it difficult to say exactly how long it will last, however, we intend to leverage the resulting strong financial results to keep fare increases at approximately the rate of inflation, fund our $3 billion capital program to replace aging vessels, terminal and information technology infrastructure, as well as test variable pricing promotions for the remainder of this fiscal year,” said Corrigan.
Tourism industry consultant Frank Bourree of Chemistry Consulting called the discount a brilliant move. “It’s been 20 years since we’ve seen positive numbers on B.C. Ferries and now they have the luxury of some very significant vehicle and passenger increases so they can afford to offer some discounts.” The move should mean strong shoulder season ridership, he said.
The discount should bring back some people who feel they have been priced out of a trip on the ferries, said Tourism Victoria chief executive Paul Nursey. He noted that the promotion is a product of B.C. Ferries working toward prices based on demand — higher for peak times, lower for off-peak.
Bourree said a combination of strong U.S. visitation — he estimates a five per cent increase in American visitors alone this year — and more Canadians coming to the Island contributed to B.C. Ferries’ higher numbers. With the U.S. dollar strong, Canadians are not going south, “and instead they are choosing to go to Kelowna and Victoria.”
B.C. Ferries recorded $18.8 million in earnings in the first quarter, up from $13.9 million in the first quarter of the previous fiscal year.
Revenue increased 2.2 per cent to $217.7 million, outpacing a 1.2 per cent increase in operating expenses that hit $184.6 million.
During the first quarter B.C. Ferries offered about 41,000 sailings and carried about five million passengers and two million vehicles.
This story was first posted by the Times Colonist.
