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.
Read the interview with Marika Pauli, Head of Ancillary Product Development, Customer Experience for Finnair and learn more about their ancillary strategy here.
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