A pleasant view from the front
Though most passengers are putting up with less legroom and fewer amenities, the space at the front of the plane is getting more comfortable: What once offered slightly wider chairs and more attentive flight attendants is now a seat behind a privacy wall that doubles as a bed and comes stocked with a selection of skin care products.
It's an economic question: Business class seating is a big driver of airline revenue, and from the beginning, non-first class seating has offered airlines a new way to capture loyal customers and reward them for that loyalty.
Fasten your seat belts and stretch your legs, we're going to fly through this.
By the numbers
12%: Percentage of Airline Passengers Who Are Business Travelers
2 times: How profitable are business travelers for airlines?
80%: The percentage of American Airlines' revenue that comes from customers who are members of the airline's frequent flyer program or who purchase “premium content”
$38,000: The price of a one-way first-class suite ticket between New York and Abu Dhabi in 2016. It includes a three-room suite with a living room, double bed and private bathroom with shower. Probably never going to fly again
+7 kg (15 lbs): Average weight for business travelers vs. leisure travelers
Explain it to me as if you were explaining it to a 5 year old!
Premium seats are big business for airlines
For a long time, the airline's primary customers in the sky have tended to be business travelers heading to meetings or large conventions, not the occasional vacationer. And in an investor presentation in March, American Airlines said it was “very concerned” about the airline's ability to attract and retain customers. Clarified that they were not straying from proven methods It's about meeting the needs of these customers.
The company says 80% of its revenue comes from members of its frequent flyer program, AAdvantage, which it estimates has more than 1 million members, or One in four U.S. airline passengers have purchased or are considering purchasing premium content.
It makes sense: business customers, often “premium” customers, are more likely to purchase airline tickets without advance notice, and willingly pay much higher fares in the process.
Fun fact
During the early days of commercial flight in the 1930s, all passengers aboard a twin-engine Douglas DC-3 I can lie in bedBut only the rich could afford to fly.
Biography
1940s: To meet the demand for cheaper fares, airlines offer different classes of travel to provide the highest level of comfort and service to passengers willing to pay the highest price. Most airlines offer two classes, but some offer four: Deluxe (or upper first) class, First, Tourist, and Economy.
Late 1950s: The typical cabin layout seen on most commercial aircraft today was established primarily on the Boeing 707 and Douglas DC-8, which remained the most popular airline models until the 1970s.
1978: The United States deregulated the airline industry, allowing airlines to compete for the first time on the basis of different cabins and ticket prices.
1979: Responding to rising first-class fares, Qantas introduced what many believe to be a first: “Business Class,” though some pay tribute to British Airways, which in 1978 introduced a cabin between economy and first class that it called “Club Class.” That same year, Pan Am also introduced “Clipper Class.”
the year of 2000: British Airways is the first airline to offer fully flat beds in business class. A new standard of comfort.
2007: Jet Airways was the first airline to offer in-flight “suites,” but business class “pods” soon became the standard.
it's not all About Business (Class)
Though it may not feel like it to those in business, airfares are getting cheaper, which is good news for consumers but bad news for industry players.
So-called “legacy” carriers such as Delta Air Lines and American Airlines are starting to charge lower fares and make stronger inroads into territory once more securely held by the likes of Spirit Airlines and Southwest Airlines.
The U.S. Bureau of Labor Statistics tracks airfares as part of a basket of goods that make up its Consumer Price Index inflation measure, and according to that measure, fare growth has been negative for more than a year, with a streak stretching back to April 2023. Demand for business travel (or the lack thereof) is A big reason why airlines like Delta and American Airlines are lowering their prices.
Can be cited
“We've spent a lot of time listening to our agents and corporate customers and getting their feedback. We're taking several immediate steps to respond and adapt to this situation, and we'll be working over the coming weeks to optimize for our customers and American Airlines as we move forward.” — CEO Robert Isom at the Bernstein Conference in May
American In the end, they fired their chief commercial officer. That same month, Vasu Raja also resigned, largely because of a Bain report that confirmed rumors in the industry that he had alienated business-class passengers.
Look at this
Fly first class? Of course not! It's company policy.
conference room The vile and treacherous Englishman In this classic British Airways ad from 1987, he receives retribution for trying to sabotage a New York-based colleague.
questionnaire
How important is flying comfort to you?
- Comfort is my middle name
- To save money, I'm going to give up expensive lattes for a month.
- Never mind, just take me there
We don't judge, we're just curious!
💬 Let's talk!
Last week's poll magazine, 54% Someone who said they were nailing their idea to the door and promoting the magazine. 30% If you just want to print at a local store, 16% Try to go viral using Google Slides.
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