We’ve seen an increasing number of airlines roll out “basic” business class products. We’ve seen everything from Qatar Airways to ZIPAIR introduce these kinds of fares. Now Finnair is the latest airline to roll out these fares, except I’d say Finnair’s version is particularly punitive.
In this post:
Finnair’s new “business light” fares
As of today (June 15, 2021), Finnair has put its new “business light” fares on sale. These new fares are valid for flights within Europe, as well as for flights between Europe and Asia. Finnair won’t initially sell these fares between Europe and the United States, given the oneworld transatlantic joint venture, which prevents Finnair from setting its own pricing.
With this change, Finnair has three types of business class fares:
- Business light, which is the most basic type of business class fare
- Business classic, which is the most traditional type of business class fare
- Business flex, which is the most flexible (and expensive) type of business class fare
Finnair is rolling out “business light” fares
Restrictions on Finnair’s “business light” fares
Finnair’s new “business light” fares include the most restrictions we’ve seen from any major network airline to roll out a “basic” business class product.
What are the restrictions with these new business class fares?
- They only allow carry-ons, and not any checked bags
- They earn 150% elite miles, rather than the 200-250% elite miles offered by other fares
- They don’t allow any changes or cancellations
- They only allow seat assignments and lounge access for a fee
- They don’t allow priority check-in, priority security, or priority boarding
That is ridiculously restrictive. It’s one thing to earn fewer miles and to not allow changes or cancelations, but not even letting people check-in at the business class counter, or board with business class? Really? Ouch…
It’s not entirely clear whether oneworld elite members would still receive their typical privileges or not, which could potentially limit just how bad these fares are for some passengers.
Finnair “business light” fares don’t come with seat assignments
What are Finnair’s “business light” fares like?
There would be a reasonable and consumer-friendly way for Finnair to introduce fares like these. Given the huge number of restrictions we’re talking about, it would be fair if Finnair sold these fares at a significant discount (like 30%+ off the regular business class fare). But nope, like so many other airlines that have introduced basic business class fares, that’s not what Finnair is doing.
For example, take a roundtrip business class ticket from Helsinki to Hong Kong this fall. A roundtrip “business light” fare costs 2,700EUR (~$3,270), while a roundtrip “business classic” fare costs 3,000EUR (~$3,632). I’m sorry, but how outrageous is it to pay over $3,000 for a roundtrip business class ticket and be told to board last and to use economy check-in? It defies logic.
It’s a similar story in other markets, where the savings are marginal. For example, within Europe one of the biggest advantages of business class is all of the priority services, because otherwise you just get an economy seat with a blocked middle and better food. Yet “business light” pricing is only marginally lower.
I simply don’t get it. There’s absolutely nothing wrong with the concept of basic business class fares, but the idea should be to offer genuine value to customers, and get premium economy travelers to “buy up” to basic business class, when they couldn’t have otherwise justified doing so.
Instead Finnair’s “business light” fares are simply a money-grab. It’s not about the value proposition of “business light,” it’s about being sufficiently punitive to the point that the airline hopes that people will pay enough to avoid it.
Finnair isn’t the first airline to unbundle business class
In fairness to Finnair, it’s not the first airline to introduce these kinds of fares. In mid-2019, Emirates introduced unbundled business class, where the Dubai-based carrier’s cheapest business class fares no longer included lounge access, chauffeur service, or the ability to upgrade, along with limits on seat selection.
Emirates was one of the first airlines to unbundle business class
This is something the airline had been working on for years, and it’s something the airline has maintained, so I guess it’s working quite well.
This is also something that other airlines have followed since Emirates lead the way, though the execution has differed. For example, when Lufthansa introduces a new business class on its 777Xs, the airline plans on charging for certain seat assignments, essentially creating a premium business class. The airline hasn’t yet decided if it plans to differentiate the soft product, but it’s something that’s under consideration.
Lufthansa’s new business class, coming on the 777X
Perhaps what Lufthansa is doing there is the opposite of Emirates — rather than unbundling business class, the airline is bundling to create an even more premium product.
Bottom line
Finnair has rolled out its new “business light” fares, which are incredibly restrictive. They don’t allow free checked bags, changes, cancelations, or lounge access. But beyond that, they don’t even allow you to check-in or board with business class, which is something so restrictive that we’ve never seen before.
To add insult to injury, these fares aren’t actually that attractive. It’s one thing if these basic business class fares were half of the regular business class price, but that’s definitely not the case. Rather than trying to offer a genuine value proposition, Finnair is clearly just hoping that people will pay extra to avoid basic business class.
What do you make of Finnair’s new basic business class fares?
At HEL now on a QF ticketed DONE5 RTW fare. Lounge agent claims its business light - in D bucket - and thus no lounge access. This airline is a joke.
When BA introduced charging business class passengers a fee for seat selection, I stopped flying with them. I would never fly Finnair either.
OK we book Finnair because its cheap and a great product. Ive opted for the 20kg bag and lounge access but no seat reservation. as the BC cabin is excellent and give direct isle access who in their right mind would pay another (in my case £260) to select a seat on a fare which was £1650 to BKK. if it was £20 or £30 each way id consider but 15% on top of the fare is marketing madness surely
There is a very good reason to book Finnair's Business Light tickets on longhaul flights: the access to very comfortable Business Class seats at a lower cost. Seats where you can lie down and sleep.
It's pretty easy to get Finnair's Silver card that allows you to check in at business class counters and also check in luggage for free.
Recently flew BCN-HEL-BKK on Finnair taking advantage of Business Light.
I’m a JL OO Emerald member. I was able to see the seats at booking on finnair.com.
At Finnair check in counter in BCN, I was able to check in 2 pieces of luggage with an allowance of 32kg as max weight per piece with priority luggage handling. At BCN I was able to access the lounge. Interestingly BCN-HEL was operated by IB...
Recently flew BCN-HEL-BKK on Finnair taking advantage of Business Light.
I’m a JL OO Emerald member. I was able to see the seats at booking on finnair.com.
At Finnair check in counter in BCN, I was able to check in 2 pieces of luggage with an allowance of 32kg as max weight per piece with priority luggage handling. At BCN I was able to access the lounge. Interestingly BCN-HEL was operated by IB with IB crew. Tight connection at HEL so did not have a chance to use the lounge there. HEL-BKK C class was quite basic and value engineering was quite visible from
Bedding to food and beverage onboard. At less than EUR900 I paid for one way from BCN to BKK, overall good it was a value though.
My humble opinion is that Finnair tries to cover their covid losses with these unjustified price increases. I just made a big mistake by booking inter-european flight in business class without knowing that I must pay extra for my seat.
By, by Finnair.
The thing about 'basic business' that confuses me is that I thought that OneWorld says that if you are flying a OneWorld flight in business class, you are entitled to lounge access. So while I get that airlines run the alliances and are constantly changing the rules to suit, does this not go against the written rules of the alliance? Or have they already changed the rules since Qatar started doing it?
Seems okay to me. My two biggest reasons for flying business class are comfy seat/legroom and decent meal/drink service. Seems like I'd get that. If I were traveling solo, with just carryon, had my own lounge access with a credit card, and didn't really care what comfy seat I got, I'd save $400 to fly Business Light. I'd just check in really early and hit the Priority Pass lounge. Traveling the way I normally do,...
Seems okay to me. My two biggest reasons for flying business class are comfy seat/legroom and decent meal/drink service. Seems like I'd get that. If I were traveling solo, with just carryon, had my own lounge access with a credit card, and didn't really care what comfy seat I got, I'd save $400 to fly Business Light. I'd just check in really early and hit the Priority Pass lounge. Traveling the way I normally do, I'd probably fork over the $400 for the regular business class ticket. So, the pricing difference seems appropriate to me.
Seems basic business is similar to economy plus on some of the American carriers.
I wonder what would happen if they had to change an aircraft which does not have so many seating variations. I would be certainly annoyed if I purchased a business basic fare and ended up in an economy seat of any type.
Cleaver way to target those that want to feel like they are in business class but have a lower class product/service so to be a bit cheaper.
@Ben
Not just the US, Japan is not included either. Joint venture with JAL.
For once consumers are actually benefitting from the cartels.
@Ben, ZIPAIR is a very bad example of introducing light fares. It is a low cost carrier, it is JAL''s stated intention to compete in the mid to long haul LCC market with ZIPAIR. They were born with unbundled fares for the same reason, show me a low cost carrier without unbundled fares.
After the launch on 15th, the prices went up.
Say on 14th HEL-HKG-HEL was 2300€ RT in Business Classic. After 15th these exact flights are 2300€ in Business Light and 2650€ in Business Classic. And not just limited to these, but theres other examples also.
Im off to find status match and forget Finnair. But im just lowly LUMO.
It has been confirmed by Finnair that status perks do apply to Business Light, even check-in baggage. So essentially that gives gold(=sapphire) or higher members the same Business experience as classic, except for flexibility, unless you need more than 1 bag of course.
I don’t mind business class light. Priority boarding meh.
It’s always been my thought that airlines can sell biz class fares to business travelers who don’t care about price, who fill up half the cabin. They’ll book the full fare.
But it’s very hard to sell the rest of the cabin because leisure travelers are so far back from spending $6k to fly ord to lhr. But the airlines don’t want to make...
I don’t mind business class light. Priority boarding meh.
It’s always been my thought that airlines can sell biz class fares to business travelers who don’t care about price, who fill up half the cabin. They’ll book the full fare.
But it’s very hard to sell the rest of the cabin because leisure travelers are so far back from spending $6k to fly ord to lhr. But the airlines don’t want to make cheap fares so that biz travelers get annoyed by the discrepancy. Hence the lack of flexibility of award fares etc. if you want to use an award you may not be able to fly on a monday etc. No business traveler wants a Wednesday flight. But if you’re on holiday you can buy miles and take it. Also rules like you must stay over a Saturday etc.
These fares do the same thing. Delineate so as not to piss of biz travelers who need priority check in.
They should just make it way cheaper to fill the cabin. Biz travelers will pay full fare and they can sell the rest of the cabin without cannabilising the people who have the company pay.
My company isn’t going to buy Alaska miles to fly me to Hk for work. So the airlines aren’t undercutting the people who want to pay $9k in first class for the one way fare that “costs” me $1400 when I book with miles.
All in I like it. I just want the seat and some booze. If I have a 14 hour flight and guaranteed overhead space I’ll stay in the lounge to the last minute. And if I’m denied lounge access I’ll pay $19 to have a couple of beers in a bar near the gate to save $400 or more.
Not cool Finnair - never flying with you!
Why is this "brutal"?
We are more than happy to pay for lie-flat business class seats without the other bells and whistles of business class service. Upgrades / awards may not be as easy if you are traveling with your spouse (200K miles can't score you 2 RT awards). We can usually get lounge access with Amex Platinum. Priority checkins and boardings would be nice, but definitely not a deal breaker. As for checked luggage,...
Why is this "brutal"?
We are more than happy to pay for lie-flat business class seats without the other bells and whistles of business class service. Upgrades / awards may not be as easy if you are traveling with your spouse (200K miles can't score you 2 RT awards). We can usually get lounge access with Amex Platinum. Priority checkins and boardings would be nice, but definitely not a deal breaker. As for checked luggage, the math isn't hard.
I have absolutely no problem with a la carte pricing for J, as long as the pricing isn't deceptive, i.e. forcing you to pay for something at a point you have no option to decline (say, charging extra for seatbelts), but joking aside, I'm sure such practices are illegal anyway.
All Oneworld Sapphire and Emerald benefits apply even if in this god-awful business light.
Socialist countries are gonna do socialist things. Speaks to the equality of outcome normalized in the nordics, make it for everyone and soon it becomes something for no one
I can understand charging for lounge access and reducing the amount of miles earned, because these are things that actually translate into saving money.
But no priority check in or boarding? These cost the airline nothing. Makes zero sense.
This could this be a way for Finnair to compete with airlines that have premium economy cabins. Instead of creating a separate cabin, offer some business class seats with fewer amenities.
The punitive fare model is just dumb. I hope Finnair many failures as they go down this path.
I'm wondering whether this is just a pricing/marketing gimmick. Given three choices, people tend to go for the middle one intuitively. At the same time, Finnair gets to market 'Business Class from 2700€' when in reality the aim is to nudge the customer toward that €3000 fare class.
More importantly, Basic Economy often didn't lower the lowest price—it simply replaced the lowest standard economy fare with something worse and hiked up the price of...
I'm wondering whether this is just a pricing/marketing gimmick. Given three choices, people tend to go for the middle one intuitively. At the same time, Finnair gets to market 'Business Class from 2700€' when in reality the aim is to nudge the customer toward that €3000 fare class.
More importantly, Basic Economy often didn't lower the lowest price—it simply replaced the lowest standard economy fare with something worse and hiked up the price of standard economy. That's also an option here. In a search engine, C-fares will appear the same, but the customer will need to pay more to retain seat selection, lounge access, priority etc.
"There’s absolutely nothing wrong with the concept of basic business class fares, but the idea should be to offer genuine value to customers" That's the funniest thing I read today, on which planet do you live? :-)
Of course this is a money grab, what makes business class expensive for the airline is the space the seat takes. You can't offer a significantly lower price by cutting stuff that has minimal cost associated with...
"There’s absolutely nothing wrong with the concept of basic business class fares, but the idea should be to offer genuine value to customers" That's the funniest thing I read today, on which planet do you live? :-)
Of course this is a money grab, what makes business class expensive for the airline is the space the seat takes. You can't offer a significantly lower price by cutting stuff that has minimal cost associated with it. The only reason to cut these things is to keep the base price more or less the same and sell what was previously included for additional revenue.
For long haul flights you are correct. For a cheaper Intra-European fare, lounge access as well as luggage and priority security line have a higher percentage of the ticket price.
Priority luggage and priority check-in are probably just differentiation but have no additional cost.
SAS and Lufthansa have a less complicated approach: Cut lounge access for third-party lounges altogether and no priority lines - no matter which fare class you’re traveling in.
I would guess that if you get to use your status even when flying economy, then you'd get to use its benefits when flying low fare business class. In fact this seems like a push to get more people to have loyalty to a FF program since you can still use those benefits while buying a slightly cheaper ticket. If you aren't a FF to any one airline however, it will just be infuriating to...
I would guess that if you get to use your status even when flying economy, then you'd get to use its benefits when flying low fare business class. In fact this seems like a push to get more people to have loyalty to a FF program since you can still use those benefits while buying a slightly cheaper ticket. If you aren't a FF to any one airline however, it will just be infuriating to deal with this. I've already found myself irritated when checking google flights and seeing a good business class fare on Qatar and then realizing its their ridiculous business light version of a fare.
I thought so, too! As long as oneworld élite benefits are kept, this could mean a special discount for oneworld élites, which can be seen as a positive move. I already get lounge access, priority check-in, and priority boarding as a oneworld sapphire, so why should I pay the same price for a business class ticket paid by a non-status pax? The only difference here would be checked bags, I assume.
and reduced mileage accrual.
I just booked Qatar from JFK to Cairo with Basic (no seat selection/lounge access) incredible pricing 4400 for two ppl. I am One World Emerald and husband is OW Saphire so I could book seating at time of booking. Also there is a OW Lounge in Doha (inferior to Qatar lounge) but based on layover may not make difference. If long layover would rather stay in transit hotel which is lovely.
There have been many YouTube bloggers who have covered the Finair A350 service from LHR and how it’s the best inter Europe business class product along with the earning potentials. I fear this has brought about the step change announced by the airline today.
I wonder if paying for an economy ticket and then buying a business class upgrade at check-in on day of travel is a better deal than buying a basic business class ticket in advance.
Just watch...Finnair with business minus fares. You have to wash dishes on arrival and help load and unload baggage from the hold.
Fares in this particular example are obviously not very good but under the right pricing I wouldn’t be opposed to this concept. Personally, I always travel with carry on only and often travel through countries where the check in lines and boarding gates are a jumbled mess anyways where there’s no “priority” lines of boarding. It’s not particularly a perk I have ever seen any value for. Just give me a good comfortable seat in...
Fares in this particular example are obviously not very good but under the right pricing I wouldn’t be opposed to this concept. Personally, I always travel with carry on only and often travel through countries where the check in lines and boarding gates are a jumbled mess anyways where there’s no “priority” lines of boarding. It’s not particularly a perk I have ever seen any value for. Just give me a good comfortable seat in the plane with standard J food services. I would miss the lounge for sure and if I had to fly with an airline that had terrible middle seats in J then I’d value seat selection, but a lot of the other stuff that comes with a typical J is fluff so I’m good with the concept. The pricing likely never will make sense for this though.
"Excuse me ma'am, my seat isn't working."
"Ah yes, I see you purchased a business basic ticket. With these fares your seat is locked in the upright position. I can unlock it for you if you would like to upgrade to a regular business ticket. That will be €1000."
This!
Nothing prevents the customers from refusing this offer. And nothing prevents Finnair from giving up on this if not enough customers are interested. I'm very curious to see if this will last.
I agree with a previous comment - there is a segment of customers who don't care about certain aspects of the traditional business class offering. They either never check luggage, nor accrue miles, nor use the lounge, nor eat on the plane, nor...
Nothing prevents the customers from refusing this offer. And nothing prevents Finnair from giving up on this if not enough customers are interested. I'm very curious to see if this will last.
I agree with a previous comment - there is a segment of customers who don't care about certain aspects of the traditional business class offering. They either never check luggage, nor accrue miles, nor use the lounge, nor eat on the plane, nor drink alcohol while flying etc. I actually find this Finnair idea a very interesting experiment.
Exactly :)
Some business travelers are only allowed to book certain fares. This might trap them into only being able to book the basic business fare.
I'm just curious if Finnair sells new business light fares on flights between Europe and Japan.
Finnair, together with other oneworld members, BA, Iberia and JAL are in the joint venture for service between Europe and Japan, to my understanding.
Another example of things to come lots pf smoke and mirrors for airlines to sell you less for more. As the hysteria of the Covid slows people are beginning to travel and the carriers are trying anything to recover and pay down debt accumulated during the shutdown of course on our backs. While ChrisC has a point that is certainly not the case here. And yes when one looks at the fare structure you are...
Another example of things to come lots pf smoke and mirrors for airlines to sell you less for more. As the hysteria of the Covid slows people are beginning to travel and the carriers are trying anything to recover and pay down debt accumulated during the shutdown of course on our backs. While ChrisC has a point that is certainly not the case here. And yes when one looks at the fare structure you are hard pressed to see the savings.
Like the supply chain its going to take a long time for some form of normalcy to return
This is nothing more than an attempt by Finnair and the others to "up sell" business class tickets. Undoubtedly some people will gravitate towards the cheapest fare available, but many more will pay the up charge to get what is more or less traditional business class ticket.
It's not "unbundling". It's "up selling".
I wouldn't call these fares and conditions brutal.
Giving people a clear choice is surely a good thing.
Some people will be more than happy to pay €300 less for business class if it excludes things they don't need like checked bags. They aren't bothered about lounges or priority boarding etc
If you want checked bags then there are fares that include them. if you want a lounge most airports now have pay for...
I wouldn't call these fares and conditions brutal.
Giving people a clear choice is surely a good thing.
Some people will be more than happy to pay €300 less for business class if it excludes things they don't need like checked bags. They aren't bothered about lounges or priority boarding etc
If you want checked bags then there are fares that include them. if you want a lounge most airports now have pay for lounges.
A lot of people don't collect miles so lower earning rates won't bother them.
What will matter is will status passengers get luggage and lounge access included in these fares due to their status or is there a status exclusion like BA has with their HBO fares where you don't get status bag allowances.
The price in this example is too high, yes. But in general I find the concept of a business class light fare good. I would even go further and cut Business class catering and alcohol and amenity kits etc. I am convinced that there is a market for economy class travelers that just want to be seated more comfortably and have more space than in economy class but do not need the luxury of business...
The price in this example is too high, yes. But in general I find the concept of a business class light fare good. I would even go further and cut Business class catering and alcohol and amenity kits etc. I am convinced that there is a market for economy class travelers that just want to be seated more comfortably and have more space than in economy class but do not need the luxury of business class.
I understand that this is the wrong forum here because we are aiming for points, lounges, business and first class flights and the best onboard catering. But average people just want to have more space.
Sure, but wouldn't the passengers who seek that market really be looking for "premium economy"? While Finnair doesn't currently offer that product, press releases from the Before Times indicated they were going to.
Seems like a really poor time to go down the "low-cost carrier" path when the airline is basically grounded and the home country (Finland) essentially remains closed to tourists.
I think lounges and priority check in and fast track security are complete deal breakers on this - especially if no exception is made for alliance most loyal flyers. I am One World Emerald and Part of the deal I make chasing tier status with $$ is that I have priority and lounge access. If Finnair goes this route (unlike Qatar which still gives those perks for tier status in their Basic fares) bad for frequent travelers like myself.
You’re probably correct that many passengers just care about the seat but for those of us who do have the means pay for a full service experience, do we really want to surrounded by a cabin full of people who are indifferent to service? Far too many are indifferent to etiquette as well. I’ve had no concerns booking with finnair in past but will likely seek other options going forward, particularly to asia. Why deal...
You’re probably correct that many passengers just care about the seat but for those of us who do have the means pay for a full service experience, do we really want to surrounded by a cabin full of people who are indifferent to service? Far too many are indifferent to etiquette as well. I’ve had no concerns booking with finnair in past but will likely seek other options going forward, particularly to asia. Why deal with uncertainty and inevitable uneven service when there are so many true full service options. Would have made more sense on transatlantic service where service levels at AA and BA are not great. JL or CX J or the new Finn? Lol, no chance.
How do these fares interact with your Oneworld status? E.g., if you are Oneworld Emerald travelling on a basic fare, will you not still get the priority check-in/boarding etc that way? I guess maybe they're doing this to attract people who would usually fly economy so have no expectations of the extras, and are willing to pay a bit more purely for the onboard experience and comfort?
I just booked Qatar from JFK to Cairo with Basic (no seat selection/lounge access) incredible pricing 4400 for two ppl. I am One World Emerald and husband is OW Silver so I could book seating at time of booking. Also there is a OW Lounge in Doha (inferior to Qatar lounge) but based on layover may not make difference. If long layover would rather stay in transit hotel which is lovely.
Especially in these times... are they really projecting huge business class volume? I'm already seeing lots of "good" fares for this summer and even into autumn for Europe.