Finnair uses GDS to build a global network of ancillary revenue

Finns seem to naturally take life’s challenges in stride.  Perhaps it’s because a good portion of the country lies above the Arctic Circle.  Or maybe it’s the challenge once faced by sharing its entire eastern border with the former Soviet Union.  This country . . . and its national airline . . . have learned to squeeze success from being resilient.

Finnair faces plenty of challenges, with markets now influenced by low cost Norwegian Airlines and a hub location at the corner of, not in the centre of Europe.  With the high cost structure of a tenured workforce, the airline knew it could not adopt the LCC model.  Instead, it has always aimed higher with a premium product offering special appeal to business travellers.  Lately, the strategy has been reinforced with an array of a la carte extras that meet the agency distribution desires of corporate clients.  Finnair is a global leader for its efforts to generate ancillary revenue through global distribution systems.

The airline has become a master of a la carte sales in the online booking path.  Under the branding of “Travel Extras” consumers are invited to select a seat, add baggage, pre-book meals and treats and lounge access; and purchase Wifi, cancellation protection, and trip insurance.  The carrier uses attractive graphics and promotional language such as “book online and save at least 20%” for its checked bags offer.