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Has Finnair lost the plot with its new ‘Business Light’ tickets?

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Finnair is the latest airline to move to ‘unbundling’ its business class product with the launch of ‘Business Light’ tickets.

You should be very wary of this because you could very easily find yourself booking a discounted ticket which gets you, well, not very much.

‘Unbundling’ is a slightly bizarre concept which doesn’t apply to many other aspects of life.

Finnair Business Light fares

Pret may offer you 50p off a coffee if you bring your own cup. However, many other businesses – such as WeWork – have succeeded by bundling things which were not bundled before. Your WeWork office comes with furniture, signage, cleaning, electricity, high speed internet, free access to meeting rooms, printing and free beer, tea and coffee. You can just turn up and get to work. Unbundling is not a trend happening everywhere else.

How have airlines approached unbundling?

Unbundling CAN work when you separate out aspects of a service and charge a realistic premium for adding them back.

If a service represents a genuine cost to the airline (ie if you can’t use the lounge, the airline saves money, so your ticket is cheaper) and you can add it back at a fair price then people should accept it.

The problems with unbundling business class flights revolve around:

  • the services removed do not justify the small discount in the product price
  • the services removed often save the airline nothing (eg removing priority boarding saves no money – it only impacts where you are in the queue) but do inconvenience passengers
  • the cost of adding the services back is often disproportionately high
  • most importantly, business travel policies often force flyers to take the cheapest fare – and if the cheapest fare is the one with no lounge access, no priority boarding, no priority security, no seat assignment and reduced mileage, you’re stuck

How do Finnair’s new ‘Business Light’ tickets look?

Unsurprisingly, Finnair believes that it is “addressing the increasing trend for personalisation of the travel experience”.

I’m sure you thought the same thing when British Airways removed your free seat assignments.

These are the three fare categories you can now book in Finnair business class:

Finnair business light ticket rules

What is missing with Finnair Business Light’?

It would actually be easier to tell you what is included – ie your seat. That’s about it.

You are NOT getting:

  • access to airport lounges
  • checked baggage (these are Hand Baggage Only long-haul business class tickets)
  • seat selection
  • priority check-in
  • priority security
  • priority boarding
  • your standard amount of frequent flyer miles

The last one is not an issue if you credit your Finnair flight to British Airways Executive Club. However, it is possible that BA may change its rules so that ‘Light’ tickets earn fewer Avios.

It is not clear if oneworld elite members will still receive their standard benefits. If so, most of the benefits above – lounge access, check-in, security, boarding – will come back.

Do I make a huge saving by booking Finnair’s ‘Business Light’ tickets?

Don’t be silly.

Here is some typical pricing from London to Hong Kong via Helsinki. This is for the outbound flight only, ie the outbound half of a return flight:

Finnair business light prices

The saving for losing all of the items listed above is £120, or about 11% vs Business Classic.

I don’t know how many people travel to Hong Kong with just hand baggage, but if you have a suitcase then much of that saving is swallowed immediately.

If you are crediting your flight to Finnair Plus, the reduction in frequent flyer miles earned (3,000 fewer) is costing you £30 of value.

Conclusion

A saving of £120 to remove lounge access and potentially remove free seat selection would not be unreasonable.

I am also in favour of letting passengers, as Luthansa does, upgrade to Business Class for a modest premium on quiet flights but without getting any additional benefits. This is a fair trade off.

Finnair, unfortunately, seems to have gone too far. What benefit does removing priority check-in or priority boarding bring? It still takes the airline the same amount of time to deal with all of the passengers. All it will do is annoy passengers who may have been forced into ‘Business Light’ by their corporate travel department.

The only thing that Finnair seems to have achieved from these changes so far is to generate a large amount of critical coverage online. I’m not sure it is the right way to attract the few business travellers who will be looking to fly long haul premium cabins this Summer.

Comments (81)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • ChrisW says:

    There seems to be two main reasons airlines are moving to unbundling business:
    – encourage people to buy more expensive fares by warning them they are missing out on perks by buying the cheapest fare
    – acquire new corporate travellers by offering lower fares (because they’ve stripped out benefits) to companies who couldn’t care less if their employees have things like seat selection or not.

    I don’t like it at all – a big part of the business class experience is the priority everything.

    • Tom says:

      Would an average corporate travel policy allow for paying standalone fees for seat selection or lounge access? I.e. booking the cheapest fare available, but then paying to add on things that are plausibly important/essential? You would think that something like meals should be allowable, if that were unbundled too, so just a question of where the line is.

      • John says:

        I think my company allows us to expense seat selection if it’s not included in the travel class booked by the system.

        We also have deals with certain airlines – for example, with BA I can access seat selection for free in business, even if I don’t have the required status.

      • Sam G says:

        Mine would allow it. But this particular fare could easily be avoided in the system we use by saying you need to check in a bag, it isn’t sophisticated enough to figure out basic+bag fee.

        Then again we wouldn’t be booking an indirect longhaul or a short haul flight in J, so unlikely we’d need to worry about it!

        • Dev says:

          My lot would relish this … but because of the savings but because the policy makers are the lot that never get to travel and we are all piss takers in their eyes and jealousy clouds their judgement!

          There are ways around this … I never travel HBO on company business! I’m not in a rush nor do I want to drag stuff transiting giant hub airports!

  • John says:

    This could be a good idea in theory but it depends on the prices. Perhaps they want to trial it and see how well it sells compared to the other fares / what passengers add back and what they are willing to pay.

    Also very important would be whether status gets you some / all of these benefits back. If it doesn’t then there is no point of status (depending on flying pattern)

    Remember this is about long-haul business class not short-haul.

    On shorter trips I can easily travel without checked baggage, I went to New Zealand for 1 night HBO, though the whole trip took a week, to avoid paying 20 Omani rials twice (since BA doesn’t check through separate tickets, and it was in the brief period where Oman removed the 5 rial tourist visa).

    Since I now have kids I probably do need checked bags but when I was travelling with my wife only, we often had just one. So if we could save £40 or whatever by removing checked baggage from one of the tickets that would be nice.

    Priority boarding and lounge access – there are all these HFP articles about dragonpass and aspire and whatever, which I usually ignore since I have no interest in them, but they seem to be popular with other readers, so doesn’t seem to be a problem if the airline removes it?

    As mentioned above I don’t understand why anyone wants to board early although having no lounge access may be a good reason. It’s not like you can make the bed flat and go to sleep straight away, you still have to wait for everyone to board and then do all the safety stuff.

    Fast track security (and sometimes immigration) seems to be becoming an airport paid service nowadays. Also even before covid outside of holiday periods slow track was not much slower than fast track, and currently when nobody is flying much it is pretty speedy everywhere.

    Seat selection, I’m surprised at the number of people who gladly pay BA £100+ to select seats, Finnair probably wants to cash in on these people too.

    • Red Flyer says:

      Not much fun though if you are hand baggage only and board last to find that the only space for it is above seat 55C!

      • BJ says:

        Should not be an issue in business class though ybag might still have to go a bit away from seat.

    • Memesweeper says:

      “ Since I now have kids I probably do need checked bags”

      nope – you’re not using their allowance properly … even multi week long haul my family are HBO. Not because we don’t have the allowance, but because the whole trip is just a ton easier without lots of big bags. We don’t tend to stay in one place so this is a consideration when travelling abroad, not just in the airports.

      • Babyg says:

        i wish my wife subscribed to this… but with a large suitcase just for liquids, shoes and other lady/child related things we are stuffed (and have been stuffed waiting for said baggage).. i miss the HBO days..

        • Lady London says:

          I think I’m your wife’s sister. There is no point travelling without luggage. It’s essential.

    • Bagoly says:

      They are applying this to short-haul too.

  • Phillip says:

    I wonder if this is either aimed at leisure travellers with airlines assuming corporate travel will take a little longer to return post covid, or the usual “trick” of showing up as the cheapest option on online aggregate sites!

    • Bagoly says:

      It would be interesting to get confirmation from somebody who works in airline marketing, but I expect it is almost entirely driven by being cheapest to the algorithm (perhaps £10 less than previous, not £120).
      What is perhaps more depressing is that given the systems, processes and people they are facing on the buying/intermediary side, that is probably sales-maximising behaviour.
      While the “agency problem” (people doing the buying being different from people doing the consuming) sometimes results in overpaying, in this case it tends to lead to under-quality.

  • Dubious says:

    One challenge with this approach is that it can generate a sense of loss aversion. I wonder if they will use this to have future temporary promotions that give components of the classic fare’ for the price of lite’.

    If I were travelling on a ‘classic fare’ where a ‘lite fare’ had been an option, I would have a greater expectation of the value of the extra services and thus their delivery, i.e. my expectation of receiving priority check in/boarding etc is heightened and any loss would be more likely to result in a complaint. When services are always included regardless of the fare I am much more easy going about them.

  • Robin says:

    Speaking as a travel consultant, I loved your article thankyou.
    Maybe signs of “push-back” ?!
    I hate this so-called “personalisation” of the travel experience rubbish!
    BA described unbundling as providing “customer choice”
    Unfortunately, many customers fall for this marketing-presentation
    Like a previous commentator who suggested “saving” £40 on baggage would be “nice”.
    Airlines exist to make money, to earn as much revenue as possible, so it’s not about “savings”, it’s ALWAYS about charging “extras”
    Even you fell for it when you suggested that it would be understandable to exclude seating. How much does it cost a airline to allow you to reserve your seat?
    I long for the good old days when you booked your flight and that was that instead of all this nickel-and-dime nonsense!

    • Dubious says:

      I particularly dislike Finnair’s attempt at selling ‘Lite’ by claiming it is ‘more sustainable’ because you have less baggage weight!

      • Dubious says:

        I find it very contemptuous.

      • Memesweeper says:

        It’s not more sustainable.

        It *is* less unsustainable.

        People should be encouraged to travel with fewer bags and less weight.

        • A says:

          Do I get a discount then, because I weigh 130lb as opposed to someone in the seat behind who weighs 220lb?

        • Yuff says:

          I wish my wife would take that view 😩

    • TimM says:

      Agreed.

      Being 6’4″, I long for the days when the check-in staff saved the exit row seats for tall people instead of the airline selling them to anyone prepared to pay at their time of booking.

      I also long for the days of package holidays when the tour operator issued two flight coupons and an accommodation voucher in a small booklet. Now I travel with around 30 sheets of A4 that I have to print myself from multiple sources and order as may be required for the trip only to find my boarding pass doesn’t scan, “Go back to check-in!”.

      I wish airports would re-bundle themselves. They appear to have forgotten their main purpose. It is not to capture people with money for as long as possible and send them on a maze of over-priced retail and fast-food outlets until they really have to leave. I am surprised an airport has not been created that does not have any flights.

  • Fraser says:

    This may appeal to those with elite status if most of these “unbundled” elements are still on offer to them. But then the airline is just throwing away revenue!

    A colleague based in Helsinki made the mistake of flying Finnair in economy from Singapore and discovered the fare he’d booked didn’t include food, and since he’d not pre-booked a meal, had nothing to eat for the entire flight!

    Despite living in Helsinki he vowed there and then never to fly Finnair again. Be afraid, be very afraid, of these fares.

    • Alex Sm says:

      Isn’t it a statutory requirement to serve food on long-haul flights for all passengers? And I can’t believe they didn’t do any sell-onboard stuff for those like him

      • @mkcol says:

        No.

        There is a requirement to have drinking water available free of charge, which Norwegian fell foul of on the SIN (IIRC?) route.

  • Doug M says:

    What I hate most is the complexity this introduces. Did I buy the wrong ticket, did I remember a or b. I almost always book with BA/AA because I know what I’m getting. Unbundling of anything is crap for this customer.

    • Bagoly says:

      +1
      “First Class” on US domestic not having lounge access tripped me up a few years ago.

  • John says:

    Interesting piece, although I have a slight quibble with the idea that WeWork are “successful”! (As I recall, their bottom line hasn’t been the most healthy.)

    Still, that probably reinforces, rather than undermines, the overall point!

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