Scandinavian Airlines Service (SAS) is attempting to arrest the decline of European business class with an upgraded product. As well as better catering, the new business has four-across (2-2) seating throughout its fleet, giving more sideways space on planes like the Airbus A321 and Boeing 737.
The move comes as business class within Europe is facing unprecedented pressure from tighter company travel budgets. Fewer and fewer passengers are travelling in business class, yet it remains popular with traditional passengers who like the use of a lounge and the extra space and service. Twenty years ago, SAS's product was so popular that 60-80% of its passengers routinely flew business class. ?Five years ago that figure dropped to 30%. Today it's down to 15% and still falling,? says Thomas Wandahl, director of SAS operations. ?If the number of business class passengers drops to 10% we would be forced to decide whether to keep it or not.?
SAS isn't giving up just yet, though, and it has high hopes for its upgraded economy class. According to Wandahl, ?younger business travellers don't care about the traditional business class environment. They are more conscious of saving time.
So they demand frequent flights and have no time to use the lounge because they arrive at the airport at the last minute. So we have to provide them with a fast track through the airport and a ten-minute gate check-in.?
All of these benefits are incorporated into SAS' new Economy Flex product now being rolled out across Europe (although fast track and ten-minute check-in may not be available at some airports outside Scandinavia because of layout and [airport] policy.
Other benefits with Economy Flex include ticket flexibility and free catering (SAS now charges for food and drinks in regular economy). Although you get the same seating as in the back of the plane, passengers do occupy a choicer seating zone immediately behind business class. Out of the UK, the price saving against business class is only £100 on a round-trip ticket, however ? yet business class offers much more in terms of service and comfort, even if you don't take advantage of all its extras.
SAS in the UK says that pricing is determined market by market. If the UK price is believed to
be too high then adjustments will be made.
The move comes as business class within Europe is facing unprecedented pressure from tighter company travel budgets. Fewer and fewer passengers are travelling in business class, yet it remains popular with traditional passengers who like the use of a lounge and the extra space and service. Twenty years ago, SAS's product was so popular that 60-80% of its passengers routinely flew business class. ?Five years ago that figure dropped to 30%. Today it's down to 15% and still falling,? says Thomas Wandahl, director of SAS operations. ?If the number of business class passengers drops to 10% we would be forced to decide whether to keep it or not.?
SAS isn't giving up just yet, though, and it has high hopes for its upgraded economy class. According to Wandahl, ?younger business travellers don't care about the traditional business class environment. They are more conscious of saving time.
So they demand frequent flights and have no time to use the lounge because they arrive at the airport at the last minute. So we have to provide them with a fast track through the airport and a ten-minute gate check-in.?
All of these benefits are incorporated into SAS' new Economy Flex product now being rolled out across Europe (although fast track and ten-minute check-in may not be available at some airports outside Scandinavia because of layout and [airport] policy.
Other benefits with Economy Flex include ticket flexibility and free catering (SAS now charges for food and drinks in regular economy). Although you get the same seating as in the back of the plane, passengers do occupy a choicer seating zone immediately behind business class. Out of the UK, the price saving against business class is only £100 on a round-trip ticket, however ? yet business class offers much more in terms of service and comfort, even if you don't take advantage of all its extras.
SAS in the UK says that pricing is determined market by market. If the UK price is believed to
be too high then adjustments will be made.
