Blog
Premum Flyers Go Awol
7th February 2009
The front seats of many aircraft have been rather quiet and empty in recent months….
For many airlines the revenue from premium business class tickets represents a hugely important stream of revenue and high profit margins but with the recession bearing down on market demand for domestic, short haul and longer haul flights, many airlines are introducing deep discounts on premium class tickets in a bid to fill spare seats and generate much needed cash flow. BMI is no exception. Their latest email marketing campaign targets economy class customers who might just be persuaded to upgrade for the occasional flight - it is a test to see how price sensitive they are and I must admit, with a couple of flights to Edinburgh due in the next few months I am sorely tempted to take up the offer!
“We have taken 50% off our Business Class fares to Belfast, Edinburgh, Glasgow, Dublin and Brussels. With fares from just £139 return there is no better time to treat yourself to a touch of luxury, and a seat at the front of the plane. And with Valentine’s Day just around the corner, why not escape for a romantic weekend, or a much deserved spring break?”
And Bloomberg reports that BA and Air France are following suit:
“First- and business-class traffic, or the number of passengers multiplied by the distance flown, is slumping at full- service carriers such as British Airways and Air France as business confidence wanes and global trade slows. British Airways, which reported that premium-class traffic fell by 12 percent in December, has slashed prices for business-class tickets to leisure destinations to lure customers.”
Cathay Pacific has cut as much as 60% off the published business class fares between Hong Kong and San Francisco for travel to 1 April
Singapore Airlines is offering 20% discounts on its all-business class flights from Singapore to both Los Angeles and Newark
Virgin Atlantic has cut its Upper Class fares by some 40% on all destinations, trimming a London-New York round trip by 40% and a flight between London and Johannesburg by 37%
Tempted?
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.