Finnair Unique Price Reform

28th Aug 2003

Pricing of domestic, Scandinavian and European flights will change from the present prices based on rules and restrictions to flight-based pricing determined by management of supply and demand. The price reform will answer customers’ changing needs and expectations as well as create greater clarity, flexibility and choice in both business and leisure travel.
The reform will reduce the number of price types and rules that exist at present, which have been difficult for customers to understand and which the expanding number of market places has only increased. The structural reform of prices will standardise price rules throughout Europe. Customers’ freedom to choose for themselves the flight and price that best suits their needs at the time in question will be increased, as only seven different price levels and two basic rules will remain.
A new era for business travel - Finnair’s new price concept does not impose advance purchase conditions and, from the beginning of September, business passengers can, if they wish, make a business trip in economy class on the same day. It will also be possible to buy an outward ticket in a different price class from the return ticket. The more flexible the departure or return times, the greater the saving. Customers will now also be able to combine their flights freely and return from a different city from the one at which they arrived.
“Finnair is consigning business travel advance purchase periods to history, leading the way amongst European airlines. The new system gives customers flexibility in making their choices,” says SVP Marketing Mika Perho.
More freedom also in leisure travel:
For leisure travel, all domestic and European outward and return flights have been priced separately so that it will be cheapest to fly outside the busiest times.
“If customers value the cheapest price, they can travel on flights outside the busiest periods. If, on the other hand, they value the morning and evening flights where demand is highest, they will have to pay more,” says Finnair’s Sakari Romu, Assistant Vice President responsible for pricing.
The outward and return flights can be combined if necessary from three different price classes and, even in leisure travel, it will not be necessary to fly back from the same city at which the outward flight arrived. This will allow flexible travelling and interesting options, such as an outward flight to Rome and a return flight from Milan. The advance purchase period is also consigned to history, except for the cheapest, Monday-Thursday, departures.
Except for the cheapest price class, a separate child discount is also available for children aged 2-17 years. In addition, passengers under 25 years of age and those who are 65 years and over will in future receive their own special prices, with which they can also make one-way flights.
In connection with the reform, all domestic flights and European flights to Budapest, St. Petersburg, Prague, Riga, Tallinn, Warsaw and Vilnius will change to a one-class model.
In connection with the price reform, handling fees in all distribution channels will be added to Finnair flight ticket prices sold in Finland, Sweden, Norway and Denmark. The handling fee will be included in the flight price, as will charges for booking and ticket writing.




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