Westjet 2009 Annual Report Download - page 43

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WestJet 2009 Annual Report 13
Caribbean markets. The new WestJet Vacations reservation
system, implemented during the third quarter of 2009, will
allow WestJet Vacations to successfully expand its sales and
distribution channels. WestJet Vacations has been instrumental
to our growth and will be a key contributor to the future success
of our airline.
Ancillary revenues, which include service fees, onboard sales
and partner and program revenue, provide an opportunity to
maximize our profi ts through the sale of higher-margin goods
and services, while also enhancing our overall guest experience.
For 2009, ancillary revenues were $91.7 million, representing a
decrease of 4.2 per cent from 2008. Ancillary revenue per guest
decreased by 3.5 per cent to $6.66 per guest in 2009, from $6.90
in 2008. These declines were attributable mainly to lower revenue
due to the termination of our tri-branded BMO Mosaik AIR MILES
MasterCard credit card partnership on July 31, 2008, as well as
a decrease in certain fee revenues. Subsequent to the cutover
For 2009, charter and other revenues decreased by 14.1 per cent
to $213.3 million, from $248.2 million in 2008. This decline was
driven mainly by the termination of our charter agreement with
Transat, effective May 10, 2009. Due to our expanded destination
base, these declines were partially offset by an increase in
WestJet Vacations non-air revenue. On January 11, 2010, we
announced the signing of a cargo sales and service relationship
with EXP-AIR Cargo that offers an expanded range of products
and services for cargo customers throughout Canada, the U.S.,
Mexico and the Caribbean.
WestJet Vacations had another great year in 2009, driven largely
by the strength of our Las Vegas and Disney markets, as well
as the 11 destinations added as part of our winter schedule. In
only its third year of operations, WestJet Vacations has become
a signifi cant player in the Canadian tour operator industry. It
is the number one Canadian provider of hotel rooms into Las
Vegas and has been successful in the popular Mexico and
Charter and scheduled transborder and international as a percentage of total ASMs
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
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