The Business Travel Magazine Oct/Nov 2019

PREMIUM ECONOMY
Up and
away
Cost-conscious corporates are now looking more favourably
at premium economy, prompting carriers to refresh their
offerings. Gary Noakes assesses the latest cabin upgrades
Virgin Atlantic
Not that long ago, premium
economy either didn’t exist on
most airlines or was merely an
option that offered a seat a tiny bit wider
and with slightly more legroom.
Now, premium economy generally offers a
very distinct product, with a separate cabin
and a spacious seat with a good recline, plus
upgraded food service on designer plates
and branded amenities to match.
It has been a long time coming. It was first
introduced by EVA Air way back in 1991, but
it has taken until this year for all the major
US carriers to finally accept that premium
economy didn’t just mean paying extra to sit
at the front of the economy section with a
little more space but the same food and
beverage offering.
For travel managers, it’s a golden age of
choice. For far too long, premium economy
has meant too many different things and the
consistency now in the market offers a
degree of certainty not seen before.
Moreover, a glaring gap in the premium
economy sector among the big Middle East
carriers is being filled – at least by one of the
region’s three major airlines – meaning that
there are more premium economy options
when flying eastwards too.
Premium economy falls into the economy
booking category for most corporates, but it
is not without its sceptics. Many will point
out that it is comparatively poor value for
money considering it offers a limited space
in which to work and, most importantly, rest,
compared to business class.
Rate expectations
Published premium economy fares can be
almost double economy rates and, as such,
it is a purchase often best made close to
departure or, in some cases, at the very last
minute. It is then that the differential
between full-fare economy and premium
economy can become very slim. Moreover,
many airlines sell upgrades at check-in at
knock-down rates when flights have spare
seats – not that this helps buyers making
purchases ahead of departure.
There is more awareness of, and demand
for, premium economy generally, but the
cabin’s impact on corporate sales is
surprisingly small, according to one leading
brand. There is no generic market data on
premium economy, but American Express
Global Business Travel’s own figures show
sales declining and making up less than 1%
of its overall business.
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