Airline Cross-Border Selling in 2025 – “Dash for Cash” or well thought through strategic sales approach?

Early on in my aviation career I worked for an Asian airline in Sydney in the early 1980s. Back in those days cross-border selling was an internal company geographical challenge.

Before electronic tickets, airline staff, myself included, would manually inspect flight coupons at the airport each day to spot out-of-sequence tickets.

Passengers traveling from Sydney to Europe often exploited cheaper fares from different markets by using tickets purchased elsewhere.

This required a “friendly” travel agent to sell the ticket outside the country of origin who would explain to the passenger how and when to present the flight coupons and in which order. This practice albeit cannibalization was the advent of “cross-border selling” and in those days sanctioned by the airline in the issuing market.

Our job was to identify these tickets, decode their payment details, and charge travelers the appropriate fare difference equivalent to the tariff level charged to Australian originating traffic.

This practice, widely used by global airlines in those days such as Pan Am, eventually prompted IATA to introduce the SOTO (Sold Outside, Ticketed Outside) pricing mechanism. This stabilized fare structures for a while and ensured transparency, addressing the issue of fare cannibalization across markets.

Fast forward to Post-COVID 2025, and cross-border selling has re-emerged, tempting cash strapped airlines into short-term strategies to boost immediate cash flows or “dash-for-cash”.

However, this approach, if not managed strategically, can lead to revenue leakage, compliance complexities, tax evasion and market imbalances.

Below, I outline strategic solutions airlines can adopt to manage SOTO ticket sales effectively, drawing from successful industry examples:

1. Strengthening Revenue Management and Pricing Strategies

Airlines like Lufthansa and Delta Airlines have successfully implemented dynamic pricing algorithms, adjusting fares in real-time based on demand, seasonality, and customer trends.

For example, Lufthansa uses sophisticated geo-fencing technology to restrict certain fare classes, ensuring travelers pay fares appropriate to their departure location.

This significantly minimizes fare arbitrage and stabilizes regional pricing.

2. Enhancing Compliance and Tax Optimization

Emirates Airline has excelled by creating a dedicated global compliance team to manage taxation and regulatory complexities across diverse markets.

By utilizing automated tax calculation software, Emirates ensures accurate compliance and tax reporting globally.

Similarly, airlines strategically establish ticketing operations in tax-friendly jurisdictions, like Ireland or Singapore, to optimize financial efficiency.

However, without significant due diligence tax avoidance issues can arise causing problems especially if external aggregators are implemented to execute these “dash for cash” strategies.

3. Strengthening Fraud Prevention and Security Measures

Qatar Airways has deployed advanced AI-driven fraud detection systems to flag suspicious transactions in real-time, effectively preventing revenue loss from fraudulent ticket purchases.

Through multi-factor authentication (MFA) and stringent identity verification protocols for high-value bookings, Qatar Airways has significantly reduced fraudulent transactions and chargebacks.

4. Regaining Control Over Distribution Channels

Singapore Airlines encourages passengers to book directly through its website by offering exclusive benefits such as seat selection privileges, loyalty rewards, and fare discounts.

Additionally, it maintains strict contracts with Global Distribution Systems (GDS) and third-party agents, imposing penalties for pricing policy violations, thereby regaining control over ticket distribution.

5. Improving Customer Service and Support

Cathay Pacific has successfully enhanced its customer support by establishing regional call centers providing multilingual assistance across different time zones.

Leveraging AI chatbots and virtual assistants, Cathay Pacific streamlines ticket modifications and refunds, improving customer satisfaction.

6. Mitigating Market Cannibalization and Fare Imbalances

Air Canada has effectively mitigated market cannibalization by introducing market-specific fare restrictions.

They utilize IP-based restrictions and regional payment methods to limit fare exploitation.

By aligning fare structures and service policies with partners through balanced interline agreements, Air Canada ensures consistent customer experiences while protecting revenue.

Charting a Sustainable Path Forward

Ultimately, turning cross-border selling into a sustainable success requires airlines to integrate advanced technology, proactive compliance measures, and customer-centric distribution practices.

Airlines that prioritize robust risk management and strategic foresight, as demonstrated by industry leaders, will be best positioned to navigate the complexities of global airline sales without compromising yield and cannibalization whilst ensuring taxation regulations are adhered to.

Through significant investment and judicious analysis these market leaders have transformed short-term revenue opportunities into long-term growth and market stability.

P.S. At Anjuna Airline Solutions, we thrive on simplifying complex challenges—cross-border selling included. To see how we can support your airline, visit our About Us page.