Friday, February 3, 2023

Finnair takes the leap towards modern distribution

Finnair continues the journey towards enhanced retailing and introduces next steps towards a more dynamic, customer-centric selling through modern distribution channels.  

Starting early 2023, Finnair will gradually implement continuous pricing in modern distribution channels – through Finnair.com and Finnair mobile App as well as NDC-enabled channels for agent partners. Through continuous pricing, customers will not experience large price increases between booking classes as pricing is not tied to the 26 legacy price points. This results in more competitive  pricing in modern channels compared to offers through legacy EDIFACT.  

In addition, to further accelerate the technology transformation, Finnair is removing Finnish domestic itineraries from EDIFACT distribution starting May 1, 2023. Domestic Finland travel, i.e. flight itineraries that both start and end in Finland, will from May onwards be available to customers when purchased on Finnair’s direct channels and via Finnair’s NDC enabled sales outlets (Finnair Agency Sales Tool – FAST, certified Finnair NDC Aggregators and NDC Direct Connect API). This change does not impact travel starting in Finland and ending in another country or travel starting outside of Finland and ending in Finland.

“We are committed to transforming how flight products are sold and serviced, for the benefit of our customers and the whole industry,”, says Jenni Suomela, Vice President, Global Sales and Channel Management, Finnair. “We encourage our B2B partners to join on this journey, to make the benefits available for all of our customers, and are ready to support and help our partners in this transformation.”

These moves are logical steps in Finnair’s journey towards modernized distribution. In September 2021, Finnair announced its ambitious target to be fully in modern digital distribution by end of 2025, phasing out legacy EDIFACT content. Having invested in direct channels and NDC (New Distribution Capability) for years, Finnair aspires to transition to modern digital distribution enabling customers to choose relevant services for their travel according to their needs and preferences. In December 2022, Finnair announced a long-term IT investment to strengthen retailing capabilities through modern offer and order management.

Over the course of 2022, Finnair introduced EDIFACT surcharge for itineraries commencing in Europe as well as several markets in Asia (travel starting in Hong Kong, India, Japan, Korea, Singapore, Thailand and offline markets) and Middle East (travel starting in Israel, Qatar and United Arab Emirates). Additionally, Finnair removed Finnair Light fare brand from EDIFACT.

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