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
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.