The Finnair höpö-höpö (nonsense) thread
Jun 22, 2017, 1:05 am
#1681
Join Date: Jun 2015
Programs: AY+, SK EB
Posts: 2,958
Neither did I. I didn't even think along these lines until reading that article. Now I am unsure what to think. My reasoning is:
[...]
c) For the first time (I've ever seen) he acknowledged that longhaul J isn't sold to businessmen anymore. "We have a lot of tourists that we carry, not so much business people on many our routes. It looks like there’s a segment where the tourists want to be in business."
So has Finnair ever been able to target such a group without getting into low prices? And has Finnair any other way of reaching low prices besides unbundling?
[...]
c) For the first time (I've ever seen) he acknowledged that longhaul J isn't sold to businessmen anymore. "We have a lot of tourists that we carry, not so much business people on many our routes. It looks like there’s a segment where the tourists want to be in business."
So has Finnair ever been able to target such a group without getting into low prices? And has Finnair any other way of reaching low prices besides unbundling?
Jun 22, 2017, 9:29 am
#1682
Join Date: Jul 2007
Programs: AY Gold
Posts: 596
Jun 22, 2017, 10:38 am
#1683
Moderator, Finnair
Original Poster
Join Date: May 2011
Location: MMX (CPH)
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Those are the old style aurinkomatkat destinations. I might be wrong, but I think most of AY core destinations are leisure routes. I guess all three Thai destinations, HAN, XIY, CKG, CAN and a few other chinese ones are to be counted as upheld by tourists (europeean and/or asian). Since after the joint ventures appeared, the business-heavy routes are mostly "outside" of AY core operations these days, n'est-ce pas?
Jun 22, 2017, 11:41 am
#1684
Join Date: May 2012
Location: GVA (HEL)
Programs: AY Plat (OWE)
Posts: 536
Those are the old style aurinkomatkat destinations. I might be wrong, but I think most of AY core destinations are leisure routes. I guess all three Thai destinations, HAN, XIY, CKG, CAN and a few other chinese ones are to be counted as upheld by tourists (europeean and/or asian). Since after the joint ventures appeared, the business-heavy routes are mostly "outside" of AY core operations these days, n'est-ce pas?
Jun 22, 2017, 12:40 pm
#1686
Join Date: Jun 2015
Programs: AY+, SK EB
Posts: 2,958
I notice the travel season. Last week my Saturday morning flight was already a week prior only available in Pro and on my return date next week Finnair doesn't even sell tickets anymore in Y for any of the two flights then.
Jun 22, 2017, 1:54 pm
#1687
Moderator, Finnair
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Join Date: May 2011
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I didn't lead my reasoning to a conclusion, but I was aiming towards saying that if AY keeps on adding aurinkomatkat destinations and are indeed following through on the Asian strategy (secondary cities in china) the dependence on "tourism" (whatever the definition is) is going to get higher.
Isn't BKK one of those destinations that offers a lot of update availability? If so that indicates J demand is not that high.
Jun 22, 2017, 2:00 pm
#1688
Moderator, Finnair
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Finnair published their "strategy review" today and this sentence was a bit odd to me.
Is this really meant to be one sentence with 2 main parts having causal connection?! "Through their continued focus on customer experience they will reach the goal of double ancillary revenue... "
I really don't want any more "customer experience" right now. I am having my hands full with the website.
Finnair continues to focus on customer experience and aims to nearly double its 2016 ancillary revenues by 2020.
I really don't want any more "customer experience" right now. I am having my hands full with the website.
Jun 22, 2017, 11:30 pm
#1689
Join Date: Mar 2000
Posts: 938
Sadly, I believe that is exactly what they mean. Customer experience refers to everything that used to be included in the ticket price ten years ago (luggage allowance, seat selection, drinks, meals, newspapers etc). They will charge extra for all of these and more in the future. This is the LCC strategy AY have chosen. The good news for us customers is that ticket prices are lower than 10-20 years ago.
Jun 23, 2017, 3:15 am
#1690
FlyerTalk Evangelist
Join Date: Jan 2008
Location: HEL
Programs: lots of shiny metal cards
Posts: 14,105
Sadly, I believe that is exactly what they mean. Customer experience refers to everything that used to be included in the ticket price ten years ago (luggage allowance, seat selection, drinks, meals, newspapers etc). They will charge extra for all of these and more in the future. This is the LCC strategy AY have chosen. The good news for us customers is that ticket prices are lower than 10-20 years ago.
OTOH they already do charge for most everything. Starting point is Light, if you need luggage, either buy it, or go Basic (+20-30€), 3€ for a newspaper, meal is for purchase. What can they still charge for? Seat selection and taken to the extreme, airport checkin á la Ryanair. Worst case scenario - Light not earning miles at other OW FFPs. I don't think they would go so low as to exclude fares from AY+ earning.
They can go down this road as long as FR or EZY doesn't appear at HEL. DY is not that low cost anymore, they seem to be content with the duopoly on the gravy train routes.
Jun 23, 2017, 7:35 am
#1691
Moderator, Finnair
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Join Date: May 2011
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If "experience" equals "chargeable" They can easily charge for IFE.
They can "improve" the product by selling prio security that list goes on.
The thing is: if this is going to work they must expect to be able to lower ticket prices LESS than the average purchase. Otherwise this is "Ebberöds bank".
Remove everything that was included in the ticket then average pekka will buy back maybe 20%. So if a stripped off ticket is sold for 200 less, the buy ack of 20% shoul equal 200. Which means buyback of 50% will actually raise the price by 300...
They can "improve" the product by selling prio security that list goes on.
The thing is: if this is going to work they must expect to be able to lower ticket prices LESS than the average purchase. Otherwise this is "Ebberöds bank".
Remove everything that was included in the ticket then average pekka will buy back maybe 20%. So if a stripped off ticket is sold for 200 less, the buy ack of 20% shoul equal 200. Which means buyback of 50% will actually raise the price by 300...
Jun 23, 2017, 2:20 pm
#1692
Join Date: Feb 2001
Location: HEL
Programs: AY Plat Lumo, SK Gold
Posts: 954
Jun 23, 2017, 8:36 pm
#1695
Join Date: May 2015
Location: ATL/MCO
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Posts: 5,662