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Premium Cabin "Premiums" - Question  
User currently offlineLanPeru From Peru, joined Jun 2001, 645 posts, RR: 9
Posted (5 years 1 month 5 days 3 hours ago) and read 2211 times:

Hello:

I am curious to know what is the premium that is charged for premium cabins, such as First or Business really covering? Am I paying for the amenities on board? Or the ground? For example, on an airline that has say the 777 and 737, Business class fares are not really based on the plane. You might still pay the premium fare and end up on a 737 with 38" pitch vs. the 60" that might be offered on the 777.

If airline offered the same food in all cabins (Economy-catering) and same groud amenities, no lounge, but preferred check-in. Would the fares be considerably lower? Would it be more about me paying for extra space and maybe another FA? Or would it be the same.

My logic:

If I get more space (say 25% more), an extra FA and dedicated check-in, shouldn't my fare be only slightly higher than a regular economy fare? Say 25%-30%? Just curious...

LanPeru

5 replies: All unread, jump to last
 
User currently offlineAirbuseric From Netherlands, joined Jan 2005, 4269 posts, RR: 51
Reply 1, posted (5 years 1 month 5 days 3 hours ago) and read 2165 times:

More space,
bigger seat,
more privacy on board,
Lounge access with beverages and food,
More mileage on your loyalty programm,
more cabin attendants per passenger,
dedicated check-in with reduced waiting time,
priority handling for baggage,
more baggage allowance (kgs),
more handluggage allowance (usually 2 pieces instead of 1),
more ticket flexibility (usually with C-class fare, not J-class though),
priority boarding and deplane,
better catering on board, more reading material, sometimes better IFE etc, etc.



"The whole world steps aside for the man who knows where he is going"
User currently offlineStitch From United States of America, joined Jul 2005, 30978 posts, RR: 86
Reply 2, posted (5 years 1 month 5 days 3 hours ago) and read 2154 times:
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In general, a premium cabin offers about one third less seats per row, so that means on a purely seating basis, that row needs to generate about a third more revenue. Of course, a premium cabin has more legroom, so compared to Economy on say a 777, a row of 7 business seats with 64" pitch would equal 18 Economy seats (2 rows of 9 with 32" pitch).

So on a purely mathematical basis, each Business Class seat takes up over 2.5x as much floorspace so on a purely mathematical basis, the fare needs to be over 2.5x as much to match the revenue.

Then you need to add in the additional catering costs (more and higher quality food, liquor/wine) as well as the higher cabin crew costs (the ratio of FAs to passengers is much higher than the FAA minimum of 1 to 50). You also have lounges and additional ground support staff.

Of course, as with just about any "luxury" product, the mark-up on a premium cabin fare is much higher than the actual costs. So a Business Class fare will be higher than the actual multiple of an Economy Class fare with a larger profit margin.


User currently offlineYellowtail From United States of America, joined Jun 2005, 6170 posts, RR: 2
Reply 3, posted (5 years 1 month 5 days 3 hours ago) and read 2115 times:



Quoting Airbuseric (Reply 1):
allowance (usually 2 pieces instead of 1),
more ticket flexibility (usually with C-class fare, not J-class though),
priority boarding and deplane,
better catering on board, more reading material, sometimes better IFE etc, etc

Better looking flight attendants...etc etc...



When in doubt, hold on to your altitude. No-one has ever collided with the sky.
User currently offlineStitch From United States of America, joined Jul 2005, 30978 posts, RR: 86
Reply 4, posted (5 years 1 month 5 days 3 hours ago) and read 2105 times:
Support Airliners.net - become a First Class Member!



Quoting Yellowtail (Reply 3):
Better looking flight attendants...etc etc...

Actually I flew UA LHR-LAX in First a few years back and a French supermodel came up to ask the Purser a question. Alas, she was working the Economy cabin.


User currently offlineAPYu From United Kingdom, joined Sep 2007, 837 posts, RR: 0
Reply 5, posted (5 years 1 month 5 days 2 hours ago) and read 2025 times:

Many people just pay more for the exclusivity of it and are willing to pay a premium for such


We'd like to welcome in particular our Executive Club members and those joining us from our Oneworld alliance partners.
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