rise 2 per cent, and by 1 per cent in North America. Carlson Wagonlit and GBTA (Global Business Travel Association) also expect overall airfares to rise in Europe this year – by 5.5 per cent in western Europe and 7.1 per cent in eastern Europe. The trends in premium air travel varied
greatly by region during 2017, according to IATA, with higher growth in Europe “driven by the region’s stronger economic backdrop”. But premium demand has “lagged behind” on routes between Europe and the Middle East, and between North and South America. While premium air travel demand
is closely correlated to the economic performance of regions and individual countries, this can also be seen across different sectors and industries.
WHO’S TRAVELLING? TMCs identify industries such as banking, financial services, consulting and IT as those sectors where business class air travel has been increasing year-on-year, while the energy sector is “starting to rebound” as the price of oil has slowly crept up over the last 12 months. Other industries that remain “cautious” about booking business class travel include retail, engineering and consumer products. According to CWT, employees from the
energy sector still account for 23 per cent of international business class travellers, despite the industry’s struggles since 2014, followed by the financial sector with a 19 per cent share of the market. The energy sector could bounce back
further in 2019 thanks to the policies of US President Donald Trump, according to Paul East, chief operating officer, UK, Europe & Americas, at Wings Travel Management.
70 BBT March/April 2018
“Trends in premium air travel varied greatly by region during 2017”
“Trump has controversially signed
executive orders to allow the construction of new pipelines, creating more jobs in the oil sector,” explains East. “While these are unpopular in terms of their impact on the environment and climate change, ultimately they could create more jobs in the oil sector, and generate more business travel.”
Premium economy
UNITED IS SET TO BECOME the latest airline to introduce a premium economy cabin – joining its main US rivals American Airlines and Delta which have already added the product in past few years. The Chicago-based carrier is to introduce Premium Plus on “select” international flights later this year, promising “more space, comfort and amenities” to passengers. United’s chief commercial officer Andrew Nocella says: “It will take about three years to fully roll out across our international system.” He adds that
United has been working on Premium Plus with Lufthansa and other Star Alliance partners which already operate premium economy cabins.
Another United partner, Air Canada, already offers premium economy on transatlantic flights from the UK and Ireland to Canada. The cabin (pictured) will be available on the airline’s new routes from Dublin to Montreal and Shannon to Toronto, which are due to launch in June. Premium economy cabins have now been added to most global long-haul markets, apart
from the Gulf-based carriers and even this may be about to change. Emirates’ president Tim Clark has been talking about introducing premium economy over the last couple of years. But the Dubai-based carrier has yet to announce firm plans or a potential timescale.
With the global economy seemingly
on the up – even if the picture is more gloomy in the Brexit-obsessed UK – are organisations starting to loosen up on the policy restrictions put in place since the financial crisis and recession of 2008-09? Talk to TMCs and travel buyers, and you
will find that there is no rush to return to the pre-crisis days when it comes to relaxing the travel policy that determines whether a traveller can fly in a premium cabin or not. Indeed, some organisations are even pushing out flight time thresholds for business class travel from four to six hours to six to eight hours.
BUYINGBUSINESSTRAVEL.COM
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