[Anonymous]

[BusinessTraveller]

Conventional wisdom would suggest that the days of European business class are numbered.

As the budget airlines’ keener pricing enables them to capture more and more executive passengers, the conventional carriers’ business classes appear to offer ever poorer value.

Passengers pay huge sums for little extra onboard comfort and service. What meaningful benefits there are tend to be in terms of preferential treatment on the ground.

Before the advent of budget carriers it was the “Saturday night” tariff rule (whereby passengers booking cheap tickets were compelled to spend a Saturday night away) which guaranteed the success of business class.

Passengers who had to return on Friday night could access one of only two tariffs: Eurobudget or business class.

The small price gap between Eurobudget (an economy class ticket which came with change and refund penalties) and business class (which was fully refundable and flexible) meant that most passengers opted for the latter because of its extra benefits.

Once the budget airlines entered the market with simple one-way pricing the conventional carriers’ Saturday night stay rule collapsed.

And ever since then their business classes have been in decline as many passengers perceive it as offering poor value for money especially as they can book cheap economy fares without the weekend stay rule.

So why haven’t the conventional carriers axed business class?

Well one carrier did try. Around ten years ago Holland’s KLM downgraded business class to little more than economy. It even renamed the product as Europe Select.

But following passenger complaints, KLM restored the extra space and onboard amenities in March 2011 and rebranded its short-haul premium cabin as Europe Business Class along with the necessary upgrades.

https://www.klm.com/travel/fb_en/prepare_for_travel/on_board/travel_classes/europe_select.htm

In a way, KLM’s original decision to downgrade business class was a surprising one.

The point is that KLM in common with British Airways, Lufthansa, Swiss and so on rely on short-haul passengers to fill long distance flights at their hub airports.

If they downgrade the short-haul product they worry that premium fare passengers, who may have paid thousands of pounds for a long-haul ticket, will defect to a rival airline or hub.

It is especially the case with the handful of carriers who retain a first class cabin, namely Air France, British Airways, Lufthansa and Swiss.

So that’s why if an airline decides to axe business class it will only do so on non hub routes.

A classic example here is Lufthansa which has transferred those services, not serving either Frankfurt or Munich, to budget subsidiary Germanwings.

So for the time being, business class will remain on flights to the likes of Amsterdam, Frankfurt, London, Munich, Paris and Zurich.

But nothing in the airline business is set in stone … so who knows what the future will bring.

Alex McWhirter

[TimFitzgeraldTC]

Hi Alex

Good points. I see 2 ways it will go with Business Class. Either as you mention it will eventually die out as many seem to predict. Or one major European carrier will suddenly have a bright spark and actually introduce a proper cabin with a proper seat – maybe more like the old Longhaul Business Class products – or more like some of the better premium economy seats out there in a 2-2 configuration (no silly middle seats getting in the way) against the 3-3 on most aircraft operating in Europe in economy. I don’t think fares would change much from where they are – but they might get more people to pay £700+ to Madrid for example from London rather than £150 in economy. It would then give a proper exclusive feel and and a real discernable benefit and experience for your money. Seats in Business could have proper TV’s (useful for 2-3 hour flights) and maybe a large table that can be used as a desk for executives travelling on work (maybe with plug in internet access).

If one carrier raises the game then others may follow. It is a thought and it might not happen but I think people would pay it if it was worth it. Just depends on whether Europe can get out of recession to give airlines incentive to invest in there short haul products.

[IanFromHKG]

For those of us with elite status, the additional cost of European business class makes even less sense.

On oneworld partners I get premium check-in, lounge access, additional luggage allowance (on every airline except BA, but they will join the oneworld extra-luggage fold on 1 March), fast track (in some airports) and the ability to book my seat ahead of the hoi-polloi which generally means I can get an exit row or other extra-legroom seat. In other words – nearly everything which “distinguishes” business class from economy

Add all that up, and what extra do I get if I fly (for example) Club Europe? And the answer is… an empty seat next to me (which I can sometimes wangle anyway if I get the coveted front-left row of economy), the possibility (I state it no higher than that) of marginally better food on board, and the option (according to time of day) of getting champagne or speciality tea on board. And a measly few extra air miles. For anything more than a very very few quid, it just isn’t worth it.

I have been on domestic coach flights in the US (not notorious for their high standards) where I have been more comfortable and had better service than on European business class flights.

I appreciate that BA (and others) want to maintain maximum flexibility in using their fleets, but frankly the Euroconverter seats are an almighty con. I wish they would sacrifice the flexibility, introduce a proper business class, and sell the cabins according to the seats available in each instead of fobbing off premium passengers with a buggered-about economy seat

[Tallinnman]

Agreed – for the price we need more space ie legroom/seat pitch and width.

The current Euro crop of reduced legroom but middle seat ’empty for your (not the airlines?)convenience’ business class (particularly LH) is just about bearable on a short connection to their hubs when flying onwards. I’d rather sit at the exit row.

Jet Blue stateside with their extra legroom seats at the front is much more comfortable – even with the middle seat filled. Small premium to pay.

Virgin America has an excellent front of cabin product that at times is great value.

Locally, Estonian Air introduced a product between Business and Economy – it was basically business class service but no free middle seat guaranteed. You also sat behind Business pax. It was hugely successful amongst regular economy travelers. However some of the business class pax ‘downgraded’ so they changed this product downwards and guess what – it became a non entity value wise and we all remained in economy and the front became desserted again.

So there is a market I feel with the right value proposition. Unfortunately the need to protect existing but shrinking revenue means the price differentiation will be too high to provide the necessary value.

[Senator]

I believe the length of flight has a certain degree of impact. From London to major cities on the continent, the actual flight time is rather short. However, based in Stockholm and with my destinations being Zurich and London it is common to be in the seat for around 2½ to 3 hours each time. Combined with my 192cm and 100kg it does make a difference.

Obviously, I don’t expect the industry to cater only to me. I use BA and Swiss almost exclusively as both offer discounted business class fares I can afford. For me, the price I am willing to pay for intra-Europe business class is around £500-600 return max. Most fares from Stockholm to just about anywhere in Europe on other carriers are north of £1,000 return.

I would not be able to keep status without buying business class within Europe. My long-haul travel is now just about none-existing for work with 3-4 leisure trips a year (in business). To keep my precious BA Gold and LH Senator I need these segments in business class.

So for me, I am willing to pay a little extra for the middle seat, a decent meal with beverages, extra miles/points, and lounge access (if not entitled to by status). I think scrapping it all together is a no go specially if you want to cater to connecting long-haul passengers.

I would also like to point out that the UK market (and specially London) is very price competitive in regards to fares (at least compared to my home market). Some of this is driven by the depreciation of the Sterling, but still it offers a great value. Often I buy cheap fares from Stockholm and other fares exLON for busy European weeks.

[IanFromHKG]

Proper regional business class can be done – but can it be done in Europe?

http://www.cathaypacific.com/cpa/en_US/whatonboard/new-regional-business-class
http://www.cathaypacific.aero/newregionalbusinessclass/index.html?lang=en

[Senator]

Ian_from_HKG, with a few exceptions I believe most Asian carries use wide-body aircraft on regional routes. Furthermore, I suspect the average length of a flight would be longer.

I think it would be more likely that we would see the US style “Domestic First” seats if anything. I wouldn’t hold my breath 🙂

[IanFromHKG]

Dragonair have 17 widebody, but 21 narrow-body. They are adopting the same new regional business class as CX

Even US Domestic First seats (and in fairness some of them are very comfortable, even if they do lack IFE) would be an improvement over Euroconverters!

[esselle]

I flew AUH-DOH on an EY A320 last week in a J cabin fitted with 2×2 equivalents of the CX midhaul product.

With three cabin attendants for max capacity of 16 pax, this 45 minutes in the air flight is one which, for once, I wished had lasted longer!

[Binman62]

Notwithstanding the aircraft type the main issue with European business class is that they all use Y class seating and flexible cabins.

It is clear that there is global demand for premium travel and the next revolution in Europe will either be the reinstatement of a proper fixed First Class / Business Class cabin or the elimination of the buisness class overall. The current products d not justify the fare differential.

[Senator]

Good point Ian_from_HKG and esselle,

I tend to buy Domestic First in the US if I can find decent fares…

[IanFromHKG]

Are there any others out there who would pay more of a premium for a “proper” business class seat on short-haul flights – is there really a demand for it?

I could see myself paying more for the extra comfort (and exclusivity, and service, etc etc)

As it is, though, I genuinely find it is rarely worth the extra cost – so the airlines are missing out on additional revenue that they could earn from (admittedly infrequent, insofar as intra-European flights are concerned!) travellers like me (and my family)

[DutchinSwitzerland]

I would certainly be willing to pay more if the product would be worth it. the first “European” airline to introduce a proper seat on short to mid haul flights is Turkish although, due to the limited number of aircraft fitted with it, it’s still a bit of a hit and miss whetehr you actually get it. The US carriers offering of a 2-2 deeply reclining seat is comfortable for any flight up to about 4 hours. I can’t understand why AF isn’t putting it’s long-haul premium economy into short haul as business seats……

[NameRemoved-18/12/14]

The only reason I achieved BA Gold status was thanks to heavily-discounted, restricted Club fares.

On flights lasting 1-2 hours, is Business really necessary? Keep flexible fares for those who can afford them. On longer European flights from London, e.g. Istanbul, Athens, Kiev, by all means have a separate cabin.

[Author]

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