USADreamliner
Topic Author
Posts: 1211
Joined: Sat Sep 17, 2005 1:33 pm

Is Premium Economy Necessary?

Tue Jan 31, 2006 4:07 am

Does it make any difference (in money,load factors)for Airlines to offer Premium Economy?


USADreamliner  wave 
 
fbgdavidson
Posts: 3563
Joined: Thu Oct 14, 2004 6:25 am

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 4:16 am

British Airways publicly stated WT+ makes more money per sq. ft. than any other cabin.
"My first job was selling doors, door to door, that's a tough job innit" - Bill Bailey
 
Tango-Bravo
Posts: 2887
Joined: Sun Jun 17, 2001 1:04 am

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 4:24 am

Quoting USADreamliner (Thread starter):
Does it make any difference (in money,load factors)for Airlines to offer Premium Economy?

Yes; without exception it definitely does make a difference... in seating configuration of the aircraft on which it is featured. Since your question seems to imply "does premium economy make a positive difference?"...

If the airline who offers premium economy turns more comfortable spacious seating into premium economy fares or offers the perk for a fee/surcharge added to discounted fares, yes.

If it is essentially nothing more than yet another boondoggle (ala free first class upgrades) that an airline throws at customers who happen to travel with them more frequently on cheap fares than other pax, no.
 
BCAL
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RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 4:32 am

Although many people might associate Premium Economy with BA or VS, it was actually started by British Caledonian in the early 1970s. The airline decided that those passengers who paid the full economy fare should be allocated a separate cabin with enhanced facilities, better food and better service. It made a big difference to the airline's yields and attracted 'premium' economy passengers away from their competitors.
MOL on SRB's latest attack at BA: "It's like a little Chihuahua barking at a dying Labrador. Nobody cares."
 
londonlady71
Posts: 152
Joined: Fri Jan 20, 2006 2:39 am

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 4:33 am

well we sell lots and lots and people are very happy with it for the price it is, we do have incentive schemes to sell it ie vouchers for the most sold and for every seat sold into a draw for a larger prize but we sell them for love too  Smile
 
jacobin777
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Joined: Sat Sep 11, 2004 6:29 pm

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 5:08 am

its a great balance (for price) between economy and business class....

the 6-7 extra inches of seat pitch (compared to economy) makes the biggest difference in the world!
"Up the Irons!"
 
abrelosojos
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Joined: Sun May 29, 2005 6:48 am

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 5:52 am

... plus it makes sense when looking @ UALs Y+ policy. Instead of upgrading your best clients to J, you upgrade them to Y+. Wise move.

-A.
Live, and let live.
 
MAH4546
Posts: 24557
Joined: Wed Jan 24, 2001 1:44 pm

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 6:15 am

It's a great product, IMO. It offers a roomier cabin than standard coach at a small upgrade cost. I recently booked MIA-LHR in Y+ on BA for $997 r/t +tax. A bargain, and only about $150-$200 more than other airlines where charging for coach.
a.
 
RIXrat
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RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 6:42 am

My home airline, airBaltic, does not differentiate between business and economy class, except for the curtain that is drawn after takeoff. The business class passenger who pay about $400 more are given an orange juice or a glass of champagne before takeoff, oh, and then a cold salad wrapped yesterday.

Emil
 
ehho
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Joined: Thu Dec 15, 2005 3:26 am

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 6:47 am

Quoting Abrelosojos (Reply 6):
UALs Y+ policy. Instead of upgrading your best clients to J, you upgrade them to Y+.

Indeed, or what about the deals with the 30$ upgrades one-way or 299$ for a whole year of upgrades? I bet they get a great edge over AA in hometown traffic (ORD that is). Yep, Y+ makes sense in many ways.
"Get your facts first. Then you may distort them as much as you please" -- Mark Twain
 
airlineaddict
Posts: 308
Joined: Wed Jan 19, 2005 12:37 pm

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 6:52 am

Quoting EHHO (Reply 9):
Indeed, or what about the deals with the 30$ upgrades one-way or 299$ for a whole year of upgrades?

Great deal for passengers, but this would seem to be revenue negative in terms of maximizing space on the plane.
 
ikramerica
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RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 6:54 am

Especially on international flights, where UA can still "bump" you up without eating into the J or F revenue. A buddy on the way to Australia got bumped up to Y+ on UA due to a mishap, and he said it was much better than his usual Y experienced on NZ, QF or UA.
Of all the things to worry about... the Wookie has no pants.
 
ehho
Posts: 769
Joined: Thu Dec 15, 2005 3:26 am

RE: Is Premium Economy Necessary?

Tue Jan 31, 2006 7:53 am

Quoting AirlineAddict (Reply 10):
Quoting EHHO (Reply 9):
Indeed, or what about the deals with the 30$ upgrades one-way or 299$ for a whole year of upgrades?

Great deal for passengers, but this would seem to be revenue negative in terms of maximizing space on the plane.

Good point, I wonder how the revenue effects are for UA. Someone mentioned earlier in the thread that BA claims WT+ is its most profitable cabin per m2. On the other hand, KL finished off its euroclass product quickly a few years ago. Hmm...
"Get your facts first. Then you may distort them as much as you please" -- Mark Twain

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