I’m thrilled to sit down with Katarina Railko, a seasoned hospitality expert with deep roots in the travel and tourism industry. With her extensive experience and passion for innovation, Katarina has become a prominent voice in entertainment and events, often sharing her insights at expos and conferences. Today, we’re diving into Finnair’s groundbreaking strides in digital transformation, focusing on their introduction of ancillary combos, the technology behind personalized customer experiences, and what this means for the future of airline retailing.
Can you walk us through what sparked Finnair’s decision to launch ancillary combos as a key part of its digital transformation journey?
Absolutely. The inspiration came from a deep understanding of evolving customer expectations. Travelers today want flexibility, value, and a seamless experience when booking flights. Finnair recognized that offering bundled services could address these needs by simplifying choices and providing cost savings. It’s also a strategic move to align with broader goals of enhancing customer experience through personalization, making every interaction with the airline feel tailored and intuitive.
How would you describe ancillary combos, and what sets them apart from the usual add-on services we’ve seen in the past?
Ancillary combos are essentially pre-packaged bundles of services offered at a discounted rate compared to purchasing each item separately. Unlike traditional add-ons, which are often presented as standalone options, these combos are designed to complement each other and enhance the travel experience. For instance, Finnair’s initial bundle pairs seat selection with internet access, anticipating what a traveler might need for comfort and connectivity during their journey.
Could you elaborate on how the seat selection and internet access bundle works for customers booking with Finnair?
Of course. When a customer books a flight on Finnair’s website, they’re offered the option to purchase this bundle at a reduced price. It combines the ability to choose a preferred seat with onboard internet access, which is especially handy for those who want to stay connected or get work done while flying. It’s a straightforward process, integrated right into the booking flow, so there’s no extra hassle for the customer.
What role has modern technology played in enabling Finnair to offer these personalized bundles effectively?
Technology has been a game-changer here. Finnair leverages advanced retailing capabilities to create and manage these offers dynamically. This means they can analyze customer preferences and behavior in real-time to present the most relevant combos. The shift to modern systems has also streamlined backend operations, allowing for smoother integration of services and a more cohesive experience from booking to boarding.
Finnair has pioneered the use of native orders in the airline industry. Can you break down what native orders are and why they matter?
Native orders are a modern way of managing customer bookings in a single, unified record. Unlike older systems where data might be fragmented across multiple entries, native orders bring everything—flight details, ancillary services, personal preferences—into one place. This makes it easier for airlines to offer bundled services like combos and for customers to manage their bookings. It’s a foundational step toward more personalized and flexible travel experiences.
How have customers responded to these ancillary combos since they were introduced?
The response has been overwhelmingly positive from the start. Customers appreciate the value of getting a discount on bundled services, and many have commented on how easy it is to add these combos during the booking process. It’s clear that travelers value the convenience and the thought put into pairing services that naturally go together, which has boosted overall satisfaction.
With the seat and internet combo currently limited to select European markets, what’s the strategy for expanding this offering globally?
The initial rollout in specific European markets was a deliberate choice to test the concept, gather feedback, and refine the offering before a wider launch. The plan is to gradually extend availability to all markets over the coming months, taking into account factors like internet service capabilities on different routes and regional customer preferences. It’s about ensuring a smooth experience everywhere we introduce it.
Looking ahead, Finnair has hinted at more combos, such as meals and lounge access. Can you share a glimpse of what’s on the horizon?
We’re excited about the possibilities. Future combos will likely include pairings like pre-ordered meals with priority boarding or lounge access with extra baggage allowances. The focus is on creating bundles that resonate with different types of travelers—whether they’re business passengers looking for efficiency or leisure travelers seeking comfort. We’ll be listening closely to customer feedback to shape these offerings.
What’s your forecast for the future of personalized retailing in the airline industry over the next few years?
I believe we’re just at the beginning of a major shift. Personalized retailing will become the norm, driven by advancements in data analytics and customer-centric technology. Airlines will increasingly offer dynamic, tailored experiences—think bundles that adapt to your travel history or even real-time needs during a trip. The focus will be on creating value and building trust, ensuring travelers feel understood and prioritized at every touchpoint.
