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I work in senior management for a large NGO and until recently we had a policy of WTP/PE for all flights over 8 hours and business class only for somewhere like Australia.
Now, we operate an all-economy policy, but the company will pay for extra leg room/luggage. Staff are free to upgrade their tickets and pay the difference with frequent flyer miles and/or cash. We also now have a lounge-pass.
Personally, I don’t think we’ve saved much, and other than adjust our image, have probably increased costs by purchasing many add-ons. I agree with what others have said – it depends on the job required each time travel is needed.