With Hong Kong based airlines Cathay Pacific introducing premium economy class on its Delhi-Hong Kong route, the potential of the Premium Economy segment, comprising of service-and-cost-conscious travelers, is making its presence felt to the Indian market.
Positioned perfectly between economy and business class in terms of pricing and comfort, it is becoming a preferred product type on long haul routes of more than 5 hours, for both business and leisure travelers.
Among other international carriers, Virgin Atlantic, British airways, Turkish airlines, Air France, etc also offer premium economy on long haul routes.
Addressing this segment of the market, Tom Wright, GM - South Asia, Middle East & Africa, Cathay Pacific said, “We are introducing new product on Delhi-Hong Kong route on A-330 aircraft. With 28 premium economy seats out of 242 seats, we have introduced premium economy in India for the first time. The product is new to us as a company also. We see a big opportunity here. Eventually, we will introduce it on other routes also.”
“We expect to address a niche market of frequent flyers who want better service than economy, yet can’t afford as high as business class” Wright added.
For Virgin Atlantic, the British airline owned by Richard Branson’s Virgin Group, premium economy has been a very popular product on India-London and India-Newark route.
According to Stephen King, General Manager, Virgin Atlantic- India, “We have seen a strong demand in Premium Economy from India, with over 65 per cent growth this year to both London and New York from Delhi. The best performing route was our Delhi - Newark route which saw 160 per cent growth versus last year.The Premium Economy market as a whole has also grown by more than 50% on both routes."
King said, “Premium Economy is available to all our connections from Delhi and Mumbai, which beyond daily London and NY flights includes Boston, Washington, Miami and, in the summer, Chicago as well across our global network. Our Premium Economy constitutes 18 per cent of the cabin. That’s over 3000 seats a month in Premium Economy.” he added.
The airlines’ receptiveness to cost conscious and comfort seeking clients is very evident in their target groups.
British Airways spokesperson said, “The typical World Traveller Plus (premium economy) passenger tends to be self-employed or work for small-medium-sized businesses. A number of leisure travellers, such as honeymooners, who want to treat themselves to a little extra luxury also make up an element of the cabin.”
Jay Bhatia, Chairman, Western Region of Travel Agents Association of India (TAAI), “Outbound Indian travellers are preferring to travel on premium economy as they desire wider seats with more legroom by paying a cost in between the economy and business segment. It is the popularly increasing option to the traveller to travel with price, comfort and amenities.”
Some airlines offer extra miles, lounge facilities, express check-in, etc. to premium economy travelers. Bhatia also added, “More airlines flying long haul routes are contemplating to introduce premium economy seats on their flights to increase revenues and creating a new segment of passengers travelling in this category. The airlines are trying to maximise their revenue potential by introducing seating preferences to customers.”
