Key Highlights :
For years, business class travel has been the preferred choice for executives and business travelers. But the pandemic has changed the landscape of business travel, with many executives now working from home and companies opting for virtual meetings instead of paying for expensive business class tickets. This has led to a trend for Bleisure travel (combining business and leisure travel) and a new trend of leisure travelers upgrading to First and Premium class flights.
On routes across the globe, airlines are rapidly expanding First and Premium spaces to cope with the boom in high-end leisure demand. This trend was unexpected, as it seemed that the pandemic would reduce the demand for business class travel. Instead, the ability to travel 'bleisurely' has killed off Business travel and split the leisure market into two—those who can afford it head to Premium and First class, with everyone else heading into Economy.
Carsten Spohr, the CEO of German airline Lufthansa, has never been told that the airline needs more First class space—until now. It seems that more people are willing to spend $10,000 on a one-way ticket with all the airport extras, such as valet parking and a personal assistant. This trend is not just happening in First class, as the high-end leisure traveler who can't afford First is being tempted by Premium class seats. Air France's Premium cabins are at their highest ever occupancy rates and the company is selling out of its Premium tickets.
The trend of leisure travelers upgrading to First and Premium class flights is not just impacting airlines, but also private jet travel. Private jet use has become more accessible and democratized, with applications and services making it easier to upgrade, even just one-way. Air Charter Service, the world's largest private aircraft broker, increased its clients by 25% in 2021 and demand has continued over the past 2 years.
The trend of leisure travelers upgrading to First and Premium class flights has been a boon for airlines, allowing them to report large profits and even upgrade the Economy experience. However, the environment is the only loser in this instance, as private jet trips are four times more per person than when traveling on a commercial airplane and 800 times more than the train.
It seems clear that this trend of leisure travelers upgrading to First and Premium class flights is here to stay, particularly as airlines look to upgrade the Economy experience too. For the time being, it looks like it will be an increasingly longer walk to reach Economy seats on the plane.