When the first premium economy classes were introduced almost twenty years ago by Eva Air (Taiwan) and then Virgin Atlantic, most other airlines were at worst condescending and at best sceptical. Many of them felt that there was little room for this \"fourth class\", a hybrid model between the traditional economy cabin and business class.<\/p>\n
Extravagance on the part of a few carriers? Not for sure. The arrival of British Airways in this segment in 2000 represented the first consecration of this fourth class, bringing it recognition and notoriety. At the time, British Airways was targeting leisure travellers in particular with this superior economy class, featuring a specially designed seat from Recaro, improved meals and a kit to distinguish World Traveller Plus from its counterparts at the back of the aircraft. More comfort for passengers, without having to pay the price of business class.<\/p>\n
According to a study carried out by British Airways a few years ago, the typical World Traveller Plus traveller is self-employed or works for an SME. Another important segment of this market identified by the British carrier is honeymooners looking for a touch of glamour...<\/p>\n
Over the last decade, the Premium Economy product has grown in importance. Basically, the airlines have simply followed the changes in passenger behaviour by refining their offer. Executives on private trips, young and relatively wealthy people and senior citizens have all been identified as potential passengers for this fourth class, looking for greater comfort and recognition of their status, even when travelling in economy class. The emergence of the premium economy class has also been linked to a growing difference in the quality of service between classes of travel. This is confirmed by Bruno Matheu, Executive Vice President Commercial at Air France-KLM: \"For several years now, a gap has been widening between economy and business classes, with the latter becoming ever more spacious and luxurious, thanks in particular to seats that are comparable to beds.\"<\/p>\n
Such a product difference is obviously reflected in the price of the ticket, while from a strategic point of view, the creation of a fourth class of travel makes it possible to increase unit revenue per passenger in the mid-range segment. For example, it costs 299 euros for a Paris-New York flight on Air France in economy class (the cheapest fare), i.e. almost five times less than the same flight in business class (1,422 euros). In Voyageur Premium, the benchmark fare is 546 euros, i.e. almost double the lowest fare1.<\/p>\n
But it is above all the crisis that has favoured the fourth class. The introduction of stricter travel policies in companies, particularly SMEs, has boosted demand. In Scandinavia, for example, we are seeing a change in behaviour in the business community, which has become more frugal,\" says Michael Stenaae, Vice President Partners and Alliances at SAS Scandinavian Airlines. Many no longer see the need to pay for business class services, particularly on short and medium-haul routes.\"<\/p>\n
At Air France, Bruno Matheu confirms: \"Our Premium Voyageur product offers an appropriate response to market expectations, both in periods of growth, with the move upmarket from economy class to Premium Voyageur, and in times of crisis, with the creation of an intermediate level for passengers tending to switch from business class to economy class\". Premium Economy classes are becoming more popular every year. There are currently around fifteen carriers offering this fourth class, the latest converts being Japan Air Lines, LAN, Icelandair, Qantas, Air France and KLM.<\/p>\n
The French national airline has invested 75 million euros in Premium Voyageur, available since November 2009. In the UK, Virgin Atlantic, one of the pioneers of fourth class, completely revamped its product in 2007. This airline now carries more than a million passengers a year in its Virgin Premium Economy. \"I have to admit that our Economy Premium product is a big hit in these times of crisis,\" says Rob Fyfe, CEO of Air New Zealand. It's the fastest-growing class, with unit revenue almost doubling. It's an extremely popular product because it offers a fare that our passengers find ideal.\"<\/p>\n
The philosophy of premium economy class is based mainly on a seat with more space between each row, generally between 95 cm and 105 cm. For the record, this distance was still standard equipment in business class in the early 90s! However, beyond the seat pitch and recline - on average around 120\u00b0 - Premium Economy Class can refer to very different concepts. It can be reduced to its simplest expression, as at United Airlines or KLM, where the only difference between the product and a traditional economy class is the wider spacing between the rows. \"We are completely satisfied with the Economy Plus concept on United, and I don't think we'll be tinkering with it in the near future\", says Gilles Tallec, Managing Director France and Benelux at United Airlines. Economy Plus also has the advantage of allowing the most loyal passengers to be upgraded to a higher class, avoiding filling the business cabin with upgraded passengers. Our Mileage Plus passengers can buy their upgrade directly at the airport,\" explains Gilles Tallec. Hence the enormous success of Economy Plus, which we are seeing on a daily basis; while the crisis has led to a drop in the number of business class passengers, Economy Plus has managed to maintain its market share.<\/p>\n
KLM has taken some inspiration from United Airlines for the launch of its Economy Comfort class. However, the Dutch carrier has departed from this approach, in particular because of the strategy adopted by its partner Air France. Economy Comfort offers 10 cm of extra space between each row and a reclining angle double that of traditional economy class. Once again, the product seems to have been designed in part to meet the demand for upgrades from certain passengers. It costs between \u20ac80 and \u20ac150 for economy class passengers to move to Economy Comfort. Better still, KLM automatically offers to upgrade all Flying Blue Platinum members, while a discount of 50 % and 25 % applies to Flying Blue Gold and Silver cardholders respectively. To the great satisfaction of passengers, most airlines offer a specific Premium Economy product. This generally takes the form of a special cabin configuration: greater spacing between seats, which are fewer in number, a special seat - JAL and Air France seats, for example, are enclosed in a shell -, large individual video screens, computer sockets, etc. Economy Premium also includes a toiletry kit, a welcome glass of champagne and, optionally, a meal specific to the class, or even the Business Class tray at Air New Zealand. On the ground, passenger boarding and disembarkation have priority. The same applies to baggage delivery. Some airlines offer access to a business lounge, and sometimes a fast-track service, with priority passage through police and security checks.<\/p>\n
Other carriers are also considering introducing such a class. \"We are seriously considering such a product for our flights to Europe. It would be easy to introduce with the arrival of our new Boeing 777s in 2010\", says Hussein Massoud, CEO of Egyptair. The same applies to Continental Airlines where, according to CEO Lawrence Kellner, \"we are observing the evolution of demand\". Asia - with the exception of Japan - seems more resistant to a Premium Economy product. We sell our Premium Economy Class mainly in Europe and North America,\" explains Rob Fyfe of Air New Zealand. This product is finding it harder to break through in Asia, where travellers are less accustomed to this new concept.\" For their part, Singapore Airlines and Thai Airways, which had both launched a premium economy class on their very long-haul routes, have finally retreated. \"We continued to have more demand for economy class or traditional business class. I don't think we will be returning to such a product for the time being,\" says Chew Choon Seng, CEO of Singapore Airline. After announcing that it was seriously studying the Premium Economy option in 2006-2007, Cathay Pacific quietly buried the project...<\/p>\n
As for the success of fourth class in Japan, this is the result of the effects of the crisis and tighter travel conditions in Japanese companies. \"We are achieving a load factor of almost 100 % compared with 50% in business class. Our Premium Class is a real anti-crisis tool\", says Schinichiro Ito, CEO of All Nippon Airways. JAL and ANA are therefore continuing to introduce their Premium product to new markets. JAL now offers it on Tokyo-Sydney, while ANA has introduced it on all its routes in Europe and North America.<\/p>\n
While we're at it, Premium Economy is gradually being introduced on short-haul routes in Europe and America. \"Our B. Flex Economy service has all the characteristics of Premium,\" says Bernard Gusti, one of the two chairmen of Brussels Airlines. Although our passengers are seated in economy class, we offer them a number of advantages normally reserved for business class: the middle seat is neutralised, priority is given to screening and security formalities, and the baggage allowance is increased. As copying is the best form of flattery, we are delighted to see that other carriers are now adopting this concept,\" he adds.<\/p>\n
Air France's new short- and medium-haul product scheduled for this spring will include a full-fare economy class with new advantages. SAS goes even further: \"We're looking into the need for a business class in Europe, because demand has slowed for some time. And I'm not sure it will ever come back. We could introduce a mixed product where the passenger would benefit from an economy class service on board, but would continue to have access to a lounge or priority boarding. But nothing has been decided yet\", says Michael Stenaae.<\/p>\n
Could Premium Economy eventually eat into the potential of Economy Class? All airline strategists agree that business class will regain popularity as soon as the effects of the global crisis fade. Which, in theory, means mid-2010... In theory.<\/p>","protected":false},"excerpt":{"rendered":"
Premium Economy classes are becoming more and more common in airline cabins, offering a new alternative between a business class that is considered a little too expensive in times of crisis and an economy product that is considered too basic by business travellers.<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"type-darticle":[],"n_magazine":[],"class_list":["post-14617","post","type-post","status-publish","format-standard","hentry","category-aerien","vapo-free"],"acf":[],"yoast_head":"\n