Business Class is getting a major makeover
For years, business class was the stable middle child of air travel. Not crazy luxurious like first class, but still a solid upgrade over economy. Those days are gone, though. Airlines are shaking up business class in two very distinct directions that travellers and travel managers need to understand. So what are these new airline fare options about?
The 'business lite' movement in business travel
On one side, we have the rise of ‘business lite’ - streamlined business class fares that ditch some of the usual bells and whistles to offer lower price points. Think of it as flexible business class. Carriers like Qatar Airways, Emirates and Air France-KLM are leading this trend of creating fare types without amenities like lounge access, limited seat selection or reduced points earning.
You’ll still get the core benefits of more personal space and an enhanced inflight experience. But airlines can charge less by removing the fluff that not every business traveller may need or care about.
As GM of FCM Bonnie Smith notes, “For frequent business travellers whose priority is just having that lie-flat seat and some space, these lower-cost light business class fares can offer really compelling savings versus traditional business class thanks to pricing flexibility.”
Of course, she cautions that if you do value lounge access, securing your preferred seat in advance or racking up elite status, then these stripped business lite fares are probably not worth the compromises.
The ultra-luxury business class renaissance
Then you have the complete opposite movement - airlines going all-out with ultra-luxurious new business class cabins and amenities rivalling or exceeding what we once knew as first class. They're targeting high-revenue corporate travellers.
We’re talking incredible suites with privacy doors, double beds, massive personal TV screens and even bar lounges. Major airlines like Japan Airlines, Air India, Cathay Pacific and Lufthansa are spending huge to create these exceptional premium experiences in business class.
The target market? High-revenue business travellers and premium leisure travellers who want insane amenities and service without paying the premium for a separate first class cabin.
Smith sums it up nicely: “Airlines can essentially position this new ultra-luxe business class as the new de facto first class experience, but at better profit margins.”
Farewell first class?
Speaking of which, this business class upgrade movement is actively contributing to the demise of first class cabins on many airlines. Why devote aircraft space and resources to an ultra-premium first class cabin that often goes under-filled when business class can now replicate (or exceed) that level of luxury?
Carriers like American Airlines are ripping out first class from some of their long-haul aircraft in favour of expanding their swanky business class cabins to align with customer demand for premium experiences.
Mix and match for best value in business class
The upside of all these changes is it gives corporate travel programmes and premium travellers far more ability to customise premium experiences and spending for business travel.
Business travel managers can now mix and match fares based on travel needs, groups and budgets. Maybe you splurge on business class for those ultra-important executive trips, but take advantage of business lite fares for other business travellers when the main priority is just having a lie-flat bed.
There are also sustainability benefits, as lite business fares produce fewer emissions by not providing excess amenities.
Do your homework
The one big caveat is travellers and business travel managers absolutely must scrutinise the details on what is and isn't included with these new fare types. We all have our business travel preferences. Being crystal clear on the amenities, seat types and benefits (or lack thereof) is critical before booking.
While not having to do as much research was one of the nice things about classic business class, this new more customised model puts the onus on travellers to understand exactly what they're getting for their premium investment on each flight.
FCM is all about helping you find value in your corporate travel programme and business travel. Chat to us and we’ll help you find those savings.