Feature: Premium Economy
Gary Hance, director of IT and yield at travel management company ATPI, disagrees with this positive view. “I remain unconvinced about the perceived growth of Premium Economy,” he says. “Instead, I would argue that Business class still reigns supreme among business travellers. These days, more cabin classes are being added all the time, and based on this fact, I would say any increase in Premium Economy is merely by default. “Looking at figures as far back as 2010, we have noticed a slight spike in bookings for Premium Economy, but as a whole, these figures are generally on the decline. Alternatively, Business class has remained steady and constant, lending weight to the argument that any noticeable downturn in this class has been largely exaggerated.” Nigel Turner, director business development and programme management, UK & Ireland, at Carlson Wagonlit Travel (CWT), takes an equivocal view on Premium Economy. “Some clients view Premium Economy as a good alternative to Business class on long- haul routes, especially the shorter ones and on day-time flights,” he says. “Apart from cost savings, the cabin can on some airlines provide seats that are equal to Business class of a few years ago, as well as additional space and the likelihood of an environment that’s a lot more
“The originator was Virgin Atlantic which introduced Premium Economy as a mid- class for the cost-conscious business traveller”
conducive to the ability to work or relax inflight. “An increasing number of clients are using Premium Economy during the economic downturn, perhaps as a result of changes in travel policy, especially lower-grade executives on shorter-haul journeys. But overall usage of the class is still relatively low and remains pretty static year on year.”
Portman’s Stephen Woodward confirms travellers see Premium Economy as a viable cost-cutting measure on shorter journeys, such as to the US East Coast. But while they use the service on the outbound daytime flight, they combine this with a Business class ticket for an inbound overnight trip.
“Premium Economy take up is strongly evident on long-haul routes of over 10 hours, such as to Tokyo, Hong Kong and Los Angeles,” he adds. “But Business class is still the preferred option. This is highlighted by some travellers still opting to fly to their destination from a European hub in Business, which is often equal in price to a direct flight in Premium Economy. This underlines the perception change that is still needed. Premium Economy is underrated by many travellers, despite airlines increasingly offering a much improved and higher quality of service.”
The middle-of-the-road cabin is not, however, underrated by tax authorities. Rather
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