Who'd have guessed? The airline
bean-counters are working out that their biggest money-spinner isn't first
class with its showers and private bathrooms or business class with its
lie-flat beds, which has led to the abolition of first class for many of them
because it is so lavish.
No, in an industry where
"yield" is measured in square centimetres, the airline accountants
are in a lather about premium economy class.
If you're over 30 years of age,
you may remember seeing it on your first trip on a plane with your parents. In
the 1980s, it was that quiet little space at the front of the plane they called
business class: 38 to 40 inches (96 centimetres to 102 cms) forward space
between seat rows and a slightly wider seat and better meals.
"Premium economy is kind of the new business class,"
Kent Craver, a Boeing direct of cabin experience and revenue analysis at
Boeing, told the Wall Street Journal last week.
That's because it is virtually
identical to the business class of the 1980s and 1990s in both comfort and
price pitched at twice to four times the best discount economy fare compared to
up seven times the best discount economy rate for today's business class.
The fact that there is now such
a price chasm between the premium passenger experience and the increasingly
squeezed and torturous cattle class down the back was destined to cause more
creaking in the airline revenue model as the flying business searches for
elusive profits.
One of the biggest holdouts against premium economy as an
affordable compromise between a bed and a sardine seat finally folded last week
when Euro giant Lufthansa decided it was going to finally bite the bullet.
Like Qantas before it,
Lufthansa was worried that premium economy would simply cannibalise its
business class market.
According to the Wall Street Journal, the latest
was Lufthansa's third internal attempt to justify a premium economy class after
twice previously concluding that it would simply encourage its existing
business class customers to spend less on the cheaper option.
The Wall Street Journal reports that, only after Lufthansa in
2012 began upgrading its business class to lie-flat beds from almost-flat ones
was it confident of not cannibalising its own premium traffic.
"You ask yourself: isn't
there a down-sell risk?" says Lufthansa's chief commercial officer Jens
Bischof. "I see the upsell potential as significantly higher."
Lufthansa premium economy (96
cms per seat row) will be installed between October this year and the northern
summer of 2015. An estimated 10 per cent of Lufthansa's long-haul seats will be
premium economy.
It's strictly a mathematical
equation: Lufthansa's new premium economy seats occupy 50 per cent more
floorspace than standard economy, but can be sold for multiples more. Even
allowing for the value-added perks like china meal service, amenity kit and an
extra checked bag, the airline is way in front.
"It will be a very
profitable product," says Bischof.
Who could forget Qantas's
decade-long equivocation about what traditional airline people regarded as a
radical departure from the set-in-stone rules of airline passenger class
division?
As airlineratings.com publisher Geoff Thomas reminded us recently, Qantas chief executive James
Strong was adamant in 1997 that he "couldn't make a case for" premium
economy.
It wasn't until after Qantas's
then-partner British Airways had made a smash hit of premium economy that
Qantas CEO Geoff Dixon finally gave the green light in 2008, not long before he
left the airline and Alan Joyce took over.
Premium economy is
well-entrenched in our part of the world, with Qantas, Virgin Australia and Air
New Zealand among the true believers.
But significantly Singapore
Airlines is holding out, as are the three big Gulf carriers, Emirates, Etihad
and Qatar, and the US carriers flying to Australia, United and Delta, although
a number of US carriers offer varying standards of premium economy
domestically.
Do you consider premium economy value for money? Have you used it in
your recent travels? What was your verdict?
28 comments:
The planes have decided that first class isn’t the moneymakers and that the cheap seats at the back are the way to go. Airline services have made the decision that the fancy luxury seats are not the way to go. If you're over 30 years of age, you may remember seeing it on your first trip on a plane with your parents. In the 1980s, it was that quiet little space at the front of the plane they called business class: 38 to 40 inches (96 centimeters to 102 cm’s) forward space between seat rows and a slightly wider seat and better meals. But now the fact that there is now such a price chasm between the premium passenger experience and the increasingly squeezed and torturous cattle class down the back was destined to cause more creaking in the airline. The biggest holdouts against premium economy as an affordable compromise between a bed and a sardine seat. Qantas chief executive James Strong was adamant in 1997 that he "couldn't make a case for" premium economy. It wasn't until after Qantas's then-partner British Airways had made a smash hit of premium economy that Qantas CEO Geoff Dixon finally gave the green light in 2008, not long before he left the airline and Alan Joyce took over.
Premium economy is well entrenched in our part of the world, with Qantas, Virgin Australia and Air New Zealand among the true believers.
But significantly Singapore Airlines is holding out, as are the three big Gulf carriers, Emirates, Etihad and Qatar, and the US carriers flying to Australia, United and Delta, although a number of US carriers offer varying standards of premium economy domestically. So the premium economy the new (old) planes finally has the write idea.
The airline plane companies have realised they have been making more money from the premium economy class than both the first class seats or the business class. In the 1980s, business class was just a small area at the front of the plane with better spaced seats and better food."Premium economy is pretty much the new business class." That's because premium economy is the same as the business class of the 1980s and 1990s. Lufthansa premium economy will be installed near the start of 2015 occupying 50 percent more space the standard economy but can be sold for multiples more. "It will by a very profitable product."
"Premium economy is kind of the new business class," Kent Craver told Wall Street Journal. The airline money-counters are finding out that their biggest money maker isn't first class with its fancy food, personal bathrooms and showers, or business class with comfortable beds and quality food, but premium economy. The fact that there is such a price difference between a premium seat and the taunted and terrible cattle class down the back was supposed to cause more trouble in the airline company as the business searches for more money. Like Qantas, Lufthansa was worried that premium economy would destroy its business class popularity. Premium economy is a well-built in our part of the system, with Qantas, Virgin Australia and Air New Zealand are the ones who know this is true.
Premium economy is the big thing right now! Forget about cattle class with the all those cheap'os, go premium it is the now the more popular way to go when traveling. Airlines have decided to take the price down in premium economy so that it makes it a more popular option. The euro giant airline Lufthansa have made their premium economy take up 50% more floor space and will be installed this October and the summer of 2015. Also a Boeing diret of cabin revenue said " Premium economy is practicly the new business class" he told Wall Street journal last week. Reason being it's identical as the business class back from the 1980's - 1990's. People say that premium economy is very popular with airlines in our part of the world, airlines such as Air New Zealand, Qantas and Virgin Australia. I hope someone books me a seat in premium economy to LA really soon. ��
Which seat would you like on a plane, first class, business class, or economy class? Well obviously you would choose first class. You would think this would not be the case as the cost of a first class ticket is very expensive. Cattle class is the airlines biggest money maker.Lufthansa airlines has made a change to their seating. The new old business class which is now called 'premium economy' has taken space from first class and given to business class (96cm per seat row) of space. 30 years ago business class is almost the same as premium class now. Lufthansa's was worried that premium economy was not affordable so it would easily burn down its business class market. Premium economy should be placed in October this year and Summer 2015.
The plane,Lufthansa decides their biggest money maker ,Cattle class wasn't enough.Well obviously the cost would expensive.But now,the Lufthansa airline's change the old business class into the Premium business class.The airline had taken a couple of seats from the business class to the first class,so the Premium class have more space.
I now that the buisness seating makes a lot more money the the first class They are thinking of macking more seats in the buisness class for better money the first class and the buisness class have beter food then a normal class.A normal class is not as luxtrury as other classes cause the others have flat beds and bigger space and the airline is called i forgot.
The premium economy is like the new version of business class thats because it is virtually identical to the business class of the 1980s and the 1990s in both comfort and priced at twice to four time four times the best discount economy fare compared to up seven times the best discount economy rate for todays business class
"Premium economy is kind of the new business class. Thats because it is virtually identical to the business in the 1980s and 1990s.The airlines have worked out that their biggest money maker isnt first class with its showers and private bathrooms or business class with its lie flat beds which has led to the abolition of first class because many of them are so lavish.The fact that there is now such a big price difference to premium passenger experience and the cattle class down the back was destined to cause more creaking in the airline revenue model as the business looks for more profits.
It turns out that luxurious first class isn’t the most popular seat in the air travel industry. Premium economy is making more money than first class ever could. Premium economy is practically the same as the business class of 1970 to 1980. It’s only a bit more expensive than economy class and almost as fancy as present-day business class, whereas business class itself nowadays is seven times more expensive than economy.
A company called Lufthansa finally decided to install premium economy on its planes. The reason why it didn’t do it earlier is that they thought people would stop using business class entirely; it was so successful.
Lufthansa the European airline giant has worked out that first class and business class are not the biggest money makers. In fact the biggest money maker is premium economy. That is because premium economy is almost identical to the business class of the 1980’s to 1990’s. Lufthansa’s premium economy has 50% more floor space than economy. Bischof says that it will be a very profitable product. Lufthansa’s premium economy will be installed between October this year and the northern summer of 2015
Lufthansa an European airline have found out that premium economy is making the most money because it is a bit like the new business class because more people prefer it because of the cost of business and first class. Lufthansa's new premium economy seats are 50% more floorspace than standard economy, but can be sold for multiples more. The airline is way in front. But still Singapore Airlines is holding out and so are the three big gulf carriers ,Emarites,Etihad,Qatar.
German airline, Lufthansa have announced that they will be introducing Premium Economy on estimated 10% of the seating on their long haul flights, in between October 2014 and August 2015.
In the 1980’s-1990’s, the section of the plane called business class was virtually identical to today’s premium economy.
Some of the things that make premium economy better than standard economy are more space, china meal service, amenity kit and an extra checked bag. Lufthansa, like Qantas before it were worried that opening up premium economy would make sales on business class tickets drop drastically, though they decided it was going to work even though it was their third attempt to get it up and running.
tra
Lufthansa are install premium economy seats in there aircraft because they are making more money and improving the passenger experience.
People are happy to pay more for premium economy because there are more baggage allowance there is more space more entertainment and better meals.
Premium economy class is kind of like business class. If you're over 30 years of age, you may remember seeing it on your first trip on a plane with your parents. In the 1980s, it was that quiet little space at the front of the plane they called business class it was 38 to 40 inches (96 centimeters to 102 cm) in the forward space between seat rows and a slightly wider seat and better meals. Lufthansa premium economy (96 cm per seat row) will be installed between October this year and The fact that there is now such a price chasm between the premium passenger experience and the increasingly squeezed and torturous cattle class down the back was destined to cause more creaking in the airline revenue model as the flying business searches for elusive profits the northern summer of 2015. An estimated 10 per cent of Lufthansa's long-haul seats will be premium economy.
"premium economy is the new business class",
many people are swapping first class for premium economy because business class is too lavish, with its showers, private bathrooms and flat beds. You may remember seeing it on planes when you were younger. premium economy is a growing part of our world, as Quantas, Virgin Australia, and Air New Zealand are amount the true believers.
Next time you go on a plane, you should try premium economy.
who would had guessed? the airline bean-counters have worked out that lufthanser's premium economy isn't first class AT ALL. It has no showers, private bathrooms or lie flat beds. If your an adult over 30 years of age you would most likely remember seeing it on your first flight with your parents.
you can have your own bed and bath room.
that awesome.
because i like.
you likely remember seeing on your first flight with your family.
The German airline Lufthansa is encouraging economy customers to pay a bit more for the new premium economy, with bigger and more comfortable seats than economy class.The only problem is that if they had premium economy then people might not book business class and they will make less money.Towards estimation only 10 percent of the long-haul seats will be premium economy .Wouldn't you want to pay a bit more for luxury?
The airline bean-counters are working out that their biggest money, isn't first class with its showers and private bathrooms or business class with its lie-flat beds.Premium economy is well around in our part of the world, with Qantas, Virgin Australia and Air New Zealand.Lufthansa premium economy seat row will be 96 cms per each row, will be installed between October this year and bit of the summer in 2015.Towards estimation will only be 10 percent of the long-haul seats will be premium economy .
The airline bean-counters are working out that their biggest money-spinner isn't with its shower and private bathrooms or business class with its lie-flat beds.
Premium economy is well-entrenched in our part of the world-with Qantas,Virgin Australia and Air New Zealand
Amount the true believers
Premium economy is kind of the new business class. Thats because it is virtually identical to the business in the 1980s and 1990s.The airlines have worked out that their biggest money maker isnt first class with its showers and private bathrooms or business class with its lie flat beds which has led to the abolition of first class because many of them are so lavish. But one of the biggest holdouts against premium economy as an affordable compromise between a bed and a sardine seat finally folded last week when Euro giant Lufthansa decided it was going to finally bite the bullet. Like Qantas before it, Lufthansa was worried that premium economy would simply cannibalise its business class market. Lufthansa premium economy (96 cms per seat row) will be installed between October this year and the northern summer of 2015. Premium economy is well-entrenched in our part of the world, with Qantas, Virgin Australia and Air New Zealand among the true believers. But significantly Singapore Airlines is holding out, as are the three big Gulf carriers, Emirates, Etihad and Qatar, and the US carriers flying to Australia, United and Delta, although a number of US carriers offer varying standards of premium economy domestically.
the air line companies have worked out that they are that there are making more money out of the premium economy so the are charging more for flasher seats and stuff. in an industry where "yield" is measured in square centimeters, the airline accounts are in a lather about premium economy class.
it's just thats on airlines the most selling place is the plane is not the first class with it's beds and good sevices it was the business class the airline was called lufthansa airlines.
One of the biggest holdouts against premium economy as an affordable compromise between a bed and a sardine seat finally got folded last week when Euro giant Lufthansa decided it was going to finally bite the bullet.
Like qantas before it,Lufthansa was worried that premium economy would simply cannibalise its business class market.
it turns out that first class nor business class are airlines biggest money makers but instead its premium economy with its better quality food and seating than cattle class but a reasonable price compared to first class and business class.
I don't see why business class or first class don't have bigger seats like they did in 1980. Lufthansa is making bigger seat space in October. In the meantime people will not worry about their bathooms and showers.
interesting
Post a Comment