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Introduction to Finnair Continuous Pricing

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With this article we want to expand on understanding on Continuous Pricing on Finnair bookings and hopefully provide asnwers to as many questions as this topic may arise.
 

Table of content

Continuous Pricing and Advantages  
Scope
Continuous Pricing application
Overall functionality
Continuous Pricing and fare products
Continuous Pricing offer visibility
Booking changes


Continuous Pricing and Advantages  

The current pricing methods used by airlines are based on outdated technology, hindering the pricing potential of the industry. The dominant role played by Global Distribution Systems (GDSs) in shaping an airline's offerings and the limitations imposed by their technology, allowing only 26 pricing options, contribute to frequent price spikes. This makes it difficult for airlines to offer the best possible price that caters to customer needs, especially when that price falls between two booking classes. 

We have gradually implemented continuous pricing since early 2023 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.  The prices will be determined by market conditions, such as the time of booking or the peak season, instead of personal customer information. Travel agencies using EDIFACT based Global Distribution Systems (GDS) such as Amadeus, Sabre, and Travelport will not have access to these price offers. 

 

Scope

Where do continuous priced offers apply?

The launch of price offers based on Continuous Pricing covers flights operated and marketed by Finnair. Unfortunately, these offers will not be available for flights including a segment that is marketed by Finnair but operated by other partner airlines, such as JL operating, AY marketing. 
 

Which cabins and RBD’s will have Continuous Pricing applied?

All cabins and RBD’s can have Continuous Pricing applied on them. In some routes' cabins and RBD’s the filed prices might be used. 
 

Which markets will offer Continuous Pricing?

Continuous Pricing will only be provided for certain domestic, short haul and long haul routes (direct and connecting). Continuous Pricing based price offers can eventually be globally available across all markets.
 

Continuous Pricing application

How can Travel Agents sell continuously priced routes?

Travel Agents who have access to NDC-enabled channels will automatically have access to Continuous Pricing. This feature will also be simultaneously introduced on Finnair.com. 
 

Does the application of Continuous Pricing extend to all products offered by Finnair?

Continuous Pricing can be used for most of Finnair’s own marketed and operated flight products, although the price guarantee is only valid for tickets purchased on the same day. If the customer decides to purchase a product with a longer ticketing period, the standard or negotiated fare will apply instead. 
 

Is there a need for any technological adjustments for Continuous Pricing implementation?

Continuous Pricing does not demand any technological changes for NDC users, so no adaptations are needed in that respect. 
 

Will it be necessary to enter into a new contractual agreement for enabling Continuous Pricing?

It is not necessary to sign a new agreement for Continuous Pricing. The NDC connection already includes price offers based on Continuous Pricing.
 

In what way does Continuous Pricing impact the Look-to-Book (L2B) ratio?

The L2B ratio remains unaffected by Continuous Pricing. Customers can get price offers based on Continuous Pricing through search, shop, and price transactions without any additional transactions.

 

Overall functionality

Does Continuous Pricing enhance content differentiation?

Yes. The implementation of Continuous Pricing represents a significant advancement in terms of content differentiation. This innovative technology provides dynamic offers through both the direct channel finnair.com and NDC-enabled channels. Continuous Pricing is integrated into NDC distribution, augmenting the range of benefits available to customers.
 

Do the Continuous Pricing algorithms function the same way on the .com website and via NDC channels?

Although the Continuous Pricing logic is uniform across all NDC capable channels, there might be slight variations in the calculation steps between Finnair.com and NDC channels due to their distinct system set-up, which could result in different pricing outcomes.
 

Can a combination of standard fares and price offers based on Continuous Pricing be made?

Continuous Pricing is implemented based on the Origin and Destination (O&D) logic. Continuous Pricing can also eventually be applied to both the Outbound and Inbound segments, to only the Outbound segment, or to only the Inbound segment. For the fare component that does not have Continuous Pricing applied, a standard filed fare will be provided.
 

Is a booking class still associated with price offers that are based on Continuous Pricing?

Booking classes (RBDs) are still required for price offers based on Continuous Pricing. 
 

Does the introduction of Continuous Pricing result in any changes to the availability of booking classes?

The introduction of Continuous Pricing does not currently affect the availability of booking classes. The availability of booking classes is based on the pricing and steering, which is subject to regular adjustments due to factors such as changes in demand or competition, and is not directly linked to Continuous Pricing.
 

How much price variation can one expect between a standard fare and a price offer generated by Continuous Pricing?

Continuous Pricing does not have a typical difference between a standard fare and a price offer. The aim of Continuous Pricing is to provide the most relevant offer for each itinerary.
 

How long is the price offer valid for and what is the ticket time limit for offers based on Continuous Pricing?

If a new pricing (=repricing) is done, even if it is done on the same day, then the applied Continuous Pricing adjustment could be different and so you may have a different price compared to the initial. 
 

What will be the date and time indicating the last date to ticket information in the stored fare?
The calculation of last day to ticket is independent of the price guarantee time limit of the Continuous Pricing offer, which is only applicable for tickets issued on the same day of booking. Last ticketing date is determined based on the ticket time limit and fare note information.
 

Does the fare note mention that the price offer resulting from Continuous Pricing is not guaranteed within the Ticket Time Limit?

The fare note does not contain any information about a time limit for price guarantees for price offers, just like with standard pricing.
 

Can all NDC API integrations process price offers generated by Continuous Pricing? 

Yes, NDC API integration between Finnair and travel agents or aggregators can provide offers generated by Continuous Pricing.
 

Are there any specific processes related to Online Booking Tools that need to be considered?

If fare conditions are displayed in Online Booking Tools or other self-booking tools, they may show the last date to ticket information based on the fare note of the standard fare. If the TST has been lost or is not valid anymore (cf. time limits) a repricing is done and there is a possibility that the price change because the Continuous pricing adjustment may now be different.

 

Continuous Pricing and fare products

Is the fare structure within the GDS changed with the introduction of Continuous Pricing?

Continuous Pricing and changes to the fare structure are independent of each other, and the implementation of Continuous Pricing does not affect the fare structure in the GDS
 

Which itineraries and fare brands are in scope of Continuous Pricing and can they be combined with each other?

It is possible to apply Continuous Pricing to all published round-trip and one-way fare products. The availability of fare brand combinations will continue to be governed by the existing fare rules, without any changes.
 

Are corporate fares in the scope of Continuous Pricing?

At the moment corporate fares do not apply Continuous Pricing.
 

Does the introduction of Continuous Pricing affect the process of pricing and booking for groups?

Continuous Pricing does not affect the group pricing or booking process, as group bookings are not currently eligible for Continuous Pricing.
 

Is it possible to apply Continuous Pricing when there is a waitlist in the PNR?

Regardless of the flight status, the best pricing option will be presented, whether it is the standard fare or the offer utilizing Continuous Pricing.

 

Continuous Pricing offer visibility

Can a price offer based on Continuous Pricing be obtained without adding an account code?

Continuous Pricing will calculate the price advantage automatically for all fare types, so there is no need to add a pricing code to receive a price offer based on this logic. 
 

How are price offers based on Continuous Pricing handled in the shopping process, and why is it not possible to identify them at that stage?

Finnair does not flag price offers based on Continuous Pricing in the shopping process because the ticket designator that identifies the offer is only returned once the booking or order creation has been completed. Therefore, it is not possible to identify them until after the shopping process.
 

How can offers based on Continuous Pricing be searched for?

It is not possible to search only for offers created by Continuous Pricing.
 

Will the standard fare structure be presented alongside the Continuous Pricing offer, allowing the traveler to choose between the two options?

Finnair does not provide a simultaneous display of standard fares and price offers based on Continuous Pricing. However, it may be possible for our partners using a legacy GDS to display standard fares alongside the Continuous Pricing offers depending on their technical capabilities.
 

How is sales auditing applied for tickets that include price offers based on Continuous Pricing?

Sales auditing is applied for all bookings and Continuous Pricing offer is not an exception.
 

How does Continuous Pricing impact point accrual in the Finnair Plus program?

The calculation of points is based on the ticket's fare amount, which is also applied to tickets priced using Continuous Pricing.

 

Booking changes

Can tickets with price offers based on Continuous Pricing be automatically exchanged or reissued?

Yes. Exchange/reissue of tickets with price offers based on Continuous Pricing can be done automatically given the following conditions: 

  • The reissued office and new itinerary are activated for continuous pricing

  • The ticket to be exchanged/reissued is fully unused

 

What is the process for handling voluntary changes?

Any voluntary change, even free-of-charge rebookings, will require a ticket exchange/reissue. A ticket with a price offer based on Continuous Pricing will not be automatically updated or revalidated.