CALGARY - There are plenty of beach bargains this winter and flu fears shouldn't get in the way of holiday plans, travel agents say.

Resorts and cruise lines are slashing rates and offering special incentives to lure travellers south and fill rooms, whether it's deals on dining and drinks or extra hotel nights and two-for-one specials.

It comes as federal health authorities issued a warning to Canadians on Wednesday to cancel or rebook travel planes on trains, buses and ferries if they suspect they are ill with the H1N1 flu.

The government also urged everyone from bus drivers to flight attendants to keep watch for potentially sick passengers.

But travel agents believe business will remain brisk even as the industry braces for the second wave of H1N1, which has so far has contributed to dozens of deaths in Canada and hundreds of hospitalizations in the country since April.

Many resort properties in sunny destinations are offering steep discounts--especially in Mexico, where an earlier outbreak of H1N1 has already taken a toll on tourism.

The travel industry hopes bargain prices--and a soaring loonie--will translate into a surge in bookings during the peak winter season.

"There's going to be lots of deals out there . . . I don't think the market has come back as quickly as people thought," said Andrew Hopkyns, director of business development at AMA Travel.

Hopkyns doesn't believe fears about a flu outbreak will keep clients from travelling.

He recommends people take precautionary measures instead. " You should always have travel insurance--and H1N1 is no different from anything else," said Hopkyns.

Many insurance plans provide cancellation options as well as medical coverage in the event a client falls ill while away from home, and can be purchased through a travel agency or the airline.

WestJet Airlines spokesman Richard Bartrem said the carrier currently has no plans to alter its change and cancellation policy, noting it already provides flexibility. Travellers are allowed to cancel or change a booking within 24 hours. After that period, it's a $50 fee.

The same rules for switching or cancelling travel dates still apply for Air Canada passengers. "This is a fluid situation . . . and we will respond appropriately to developments," spokeswoman Angela Mah said Wednesday.

It's a different story for some airlines south of the border, where many states and cities are struggling to obtain enough H1N1 vaccine.

United Airlines said it will waive the cost of changing a ticket, provided the passenger has a doctor's note. Other carriers said they will make decisions on a case-by-case basis.

It's simply too early to tell how the current flu season will unfold, said Donavon Gaudette of the Association of Canadian Travel Agents.

"We were expecting a lot of negativity to certain areas, especially Mexico. But people understand that H1N1 is a global issue."

tgignac@theherald.canwest.com