Tallink to open route to Russia

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The ferry operator is hoping the new route will help offset the loss of duty-free on many services once Estonia joins the European Union

Baltic ferry operator Tallink is to begin a regular Helsinki-Tallinn-St Petersburg service on April 1, to help the company offset the loss of duty-free sales on its core routes after Estonia joins the EU in May. The new route will give Tallink a vital foothold in the Russian market, where the operator plans to open a ticket and marketing office in the near future.

Tallink's vessel M/S Fantaasia, which now services the Stockholm-Tallinn route, will be transferred to the St Petersburg service. Tallink will soon launch its newest ship, the M/S Victoria, to replace the Fantaasia on the operator's Swedish route.

Tallink purchasing director Magnus Skjörshammer told TRW that the operator's retail offer onboard the St Petersburg service would initially be targeted at Finnish travellers. ?But little by little, we'll focus more on Russians, which no other ferry operator is doing yet,? he explained. ?At Tallink we have an advantage in that our staff speak Russian and know the culture well. Eventually our assortment will be tailored more for Russians, along with the entertainment we offer onboard.?

Among the product categories Skjörshammer expects to prove popular among Russians are malt whiskies, premium cognacs and other high-end items. He also cited wine as a potential growth area. ?Wines are extremely expensive on the Russian domestic market, and we will be able to offer a huge price advantage to Russian travellers. It seems that knowledge of wines among Russians is not as high as among Nordic consumers, so we will focus on tastings and other promotions.?

As Estonia's EU membership date draws near, Skjörshammer said the company was continuing to work on a post-abolition strategy. ?We will continue with duty-paid,? he confirmed. ?Volumes will go up though margins will go down. We are awaiting more information from the authorities, who have been more flexible than we thought. Customs were not sure what issues to address, so we and other ferry operators showed them what has been done in the UK, Sweden and other EU markets. We are much more optimistic about the future now than we were.?

In other news, Tallink is to open a hotel in the centre of Tallinn in partnership with Best Western. The 10-floor, four-star hotel, which will contain 349 rooms, will open in May. Said Skjörshammer: ?Hotels in Tallinn are often fully booked in summer, which has been a problem for us in the past. This is a way to avoid that.?