FlyerTalk Forums - View Single Post - Joint ventures making it difficult to book Finnair metal?
Old Jan 30, 2016, 4:04 am
  #96  
intuition
Moderator, Finnair
 
Join Date: May 2011
Location: MMX (CPH)
Programs: Eurobonus Diamond, QR Gold, AY+ Platinum, A3*G, Nordic Choice Lifetime Platinum, SJ Prio Black
Posts: 14,182
Finnair has the "ticket types" (Campaign, Basic, Value, Pro) where most/all trip attributes are bundled into one package. One ticket type corresponds to one complete set of rules - flexibility and points earning.

The ticket type is treated as an addon on top of the ticket price. The price is still controlled by the fare bucket, so if a ticket in say bucket P has a price of 100€ it might cost 130€ in Basic and 160€ in Value.

The idea is to present the customer with a base price and clear options that costs more but contains more. You will always upfront know what you are getting for your money and you can decide for yourself that you want to pay extra to get better flexibility and more points.


Then the Japan joint business comes along, and AY folds completely in front of big daddy BA. So all tickets to Japan are sold the BA way. That means the customer only have the option of different flexibility levels: "Econ saver", "Econ premium saver", "Econ flex" and "Econ premium flex".

Naturally the "premium" price categories means nothing to AY since they don't offer this cabin, but what the heck, BA knows best... So there is a inflexible ticket and a flexible one.

But with this fare system, and here is the big thing, the price AND the earnings are controlled by the fare bucket, which is not visible or selectable. All tickets, regardless of flexibility choice, are always sold from the lowest available fare bucket. So a 500€ econ-saver and a 1500€ econ-flex ticket sold today earns the same on AY+ program, like 25%.

To earn 100%, you need to find a ticket in buckets K,M,P,T regardless of what flexibility to are paying extra for. And you can't choose K,M,P,T, you can only wait for all the lower buckets to be emptied, before the booking engine offers you a hidden T fare.

Or you need to use a travel agent to force the T fare, and that is what I was offered to have done by the AY+ call center.


[Ranting]
It makes great sense, because naturally BA doesn't care about creating loyalty in the AY+ program, and if you can sell some econ-premium tickets and fly people in AY cattle class then there is more money for BA to extract from the joint business.


This is a major issue if one wants to fly AY, wants to credit to AY+ and wants to go to Japan. Not only did they make the system less transparent and more complex than before. They also raised the prices and slashed the earnings.

It is very difficult to understand why Finnair went into this agreement. Even if they manage to sell 100% of the now overpriced under-rewarded AY flights to japan, they won't keep the profits from it, since they all share revenue based on capacity. So when AY sells an expensive AY ticket, BA gets more money.


--- Added
And yes, the same goes for the TransAtlantic joint venture. So only China, Korea and Thailand is left for AY to control them selves.
intuition is offline