The growing demand from global players
Over the last couple of years, the popularity of premium economy has not only increased, but the willingness to invest in a good travel experience has also grown significantly, states Anand Yedery, regional head of marketing and sales, SAMEA, Cathay Pacific, the airline that introduced premium economy on its network in 2012 and reintroduced the cabin in India in 2017.
He says, “The product offers the customers with an upgraded travel experience in terms of improved seats, enhanced services, and amenities as compared to economy class. With the increase in awareness of the premium economy product, passengers are more than willing to pay a premium for these services that provide them with a more comfortable and convenient experience both onboard and on ground.”
The increasing popularity of premium economy cabins is catering to two distinct segments — travellers who choose to upgrade their class of travel from economy to premium, in many cases the aspirational travellers, and another emerging segment of premium travellers who are choosing to downgrade from business to premium, to save costs and still enjoy relatively premium services.
George Ettiyil, senior director sales, South Asia, Lufthansa Group Airlines, says, “The growing affluence of Indian travellers, both within the country and abroad has led to a significant increase in the demand for premium economy product amongst both leisure and business consumers. The reason why many guests, especially those travelling on long-haul flights to Europe and North America, choose to upgrade to a premium economy class experience is the additional travel comfort and increased exclusivity.” He adds, “The product is very well received in India, a fact that reflects in the seat booking numbers, consumer interest, and higher purchase intent. Since its launch, we have registered a significant rise year-on-year.” Lufthansa debuted the premium economy class in March 2014 with a retrofit of their Boeing 747-8 aircraft; it is now available on their entire long-haul fleet. The product category was first introduced in India in 2015 on flights from Bengaluru to Frankfurt and was later expanded to include the New Delhi-Frankfurt and Mumbai-Frankfurt sectors.
Virgin Atlantic was one of the first airlines to launch a premium economy cabin across its network. David Hodges, commercial manager, Virgin Atlantic India says, “We were among the first ones to introduce, in 1992, as Mid Class, a service aimed predominantly at the cost-conscious business traveller who for budgetary reasons travels economy but still requires extra space.” (The product was rebranded as Premium Economy in November 1994 and as Premium in March 2018). On the subject of offering premium economy on Indian sectors, Hodges adds, “India’s appetite for Premium has grown strongly as customers want that extra comfort. It’s particularly popular amongst business travellers who are looking to relax, eat a premium meal and then do some work. Our wifi-enabled fleet and in-seat power supply allow corporates to work stress-free.”
Similarly, premium economy product of Singapore Airlines is also popular among frequent flyers. The airline spoils its premium economy passengers with touches of customisation and generous hospitality.
As per some industry reports, the Dubai-based airline, Emirates also plans to launch a premium economy cabin in 2020 and Delta Air Lines is set to add premium select to all flights by 2021. However, there is no confirmation yet.
Talking about the only domestic airline to offer premium economy in India, Sanjiv Kapoor, chief commercial officer, Vistara, says, “The genesis of Vistara’s premium economy goes back to the consumer insights that were gathered before Vistara launched operations in 2015. Our study showed that there is a growing population that does not mind paying a little extra for such an experience; for additional space and amenities to work or relax without incurring a huge expense; one that offers a superior experience to economy class on the ground and in the air, and yet not as expensive as business.”
The perks
There are several perks attached to this cabin. For instance, Hodges explains that he sees a lot of business travellers and choosing to fly premium as they can skip queues with priority boarding, dedicated check-in and baggage drop counters. He says, “The main innovation recently was to introduce our inflight Wander Wall, where passengers can help themselves with snacks and soft drinks and socialise with fellow travellers.”
Singapore Airlines offers a service called Book the Cook that lets passengers pre-order meals prepared by celebrity chefs. For inflight meals to and from India, Lufthansa has collaborated with Masterchef Vinod Saini from The Leela Palace in New Delhi. Ettiyil says, “The aim is to recreate majestic experiences akin to those delivered by the royal kitchens of India, with dishes that are popular amongst guests at The Leela Palace’s signature fine-dining restaurant, Jamavar.”
Whereas Hong-Kong based carrier Cathay Pacific passengers enjoy inflight amenity kits, extra baggage allowance and on-ground services with priority check-ins, Lufthansa’s premium economy passengers get a baggage allowance of two check-in bags travelling on long-haul flights, which finds favour with guests travelling long distance. Furthermore, for a nominal charge, premium economy guests can enjoy certain facilities availed by Lufthansa’s business class customers such as pre-flight access to Lufthansa’s lounges. In terms of seats, ANA’s premium economy cabin seats come with the reclining function and leg rest that are ideal for long-haul flights.
Popular routes
Cathay Pacific’s premium economy is a popular product on long and medium-haul routes. Network-wide North America, Australia, and Europe see maximum uptake on this cabin. From India, Cathay Pacific travellers opt for the premium economy for destinations like San Francisco, Los Angeles, New York, Vancouver, Toronto, Sydney and Melbourne among others. Yedery reveals, “Even on our India-Hong Kong routes, the load factor for this cabin is healthy. In fact, to cater to increasing demand, we have deployed the Boeing 777-3000 ER on key routes like Mumbai, Delhi, and Chennai out of India.”
For Virgin Atlantic, its daily Delhi-London service is quite popular (the airline is also set to start a Mumbai-London service) whereas Singapore Airlines sees a lot of traffic on the Australia, New Zealand, the US and India route. British Airways currently offers a premium economy class (earlier called as Worth Traveller Plus) on all its flights from India, including services from Bengaluru, Delhi, Mumbai among others, and looks quite promising on these sectors. ANA’s B787 Dreamliner on the Mumbai-Tokyo sector is also gaining a lot of traction. ANA flies its B787 also from Delhi and Chennai, connecting Japan with India’s major economic hubs.
Back home, Vistara reveals that the demand for the premium economy has picked up significantly especially between the Tier I routes.
Premium Economy made in India
According to Sanjiv Kapoor, chief commercial officer, Vistara: We now see mid-level corporate executives, young entrepreneurs, and even leisure travellers choosing our premium economy product and appreciating it. Travel has now become an important part of millennials’ lifestyles, who now view the experience of travelling as an investment rather than an expenditure.
Also, a lot of corporates had an “economy class only” travel policy, whereby nobody was permitted to travel business class except perhaps CXOs. With the introduction of our premium economy, a large number of corporations have incorporated the option of premium economy in their travel policies.
Premium economy on Vistara is at the front of the aircraft just behind business class, with upscale ambience offering 20 per cent more leg room than regular economy class. Apart from serving complimentary selection of gourmet meals and beverages, Vistara is also the only airline in south Asia and southeast Asia to serve Starbucks coffee onboard (available only for premium economy and business customers).
