Profiting From The Business Class

Shilpa Joshi, sales manager, GSA, Korean Air, explains why travellers won’t mind paying more for Business Class seats

With increase in Business Class travel, almost all airlines are upgrading premium services by introducing facilities like mobile phones, faxes, internet connectivity, convertible seats (which can recline into beds), especially on long distance flights. The main reason behind this phenomenon is to cope up with the time difference between the two countries, and because business competition demands fast communication.

The introduction of premium facilities means that Business Class passengers can utilise his/her 20 to 22 hours of flying to its utmost value. He/she will therefore not mind paying for it since it will save him the cost of staying one night extra at a hotel. Also, certain carriers even provide massage on board which really helps on a long flight to overcome jet lag and stress.

The current increase of 30 per cent in fares of the Business Class will not help airlines if these facilities are not introduced. But the percentage value for the investment for upgrading to Business Class must be based on authentic statistics and not assumptions. With a planned strategy and a targeted audience, it is possible to get the optimum value only on certain routes and sectors. But airlines need to get ready for certain lean periods too, till the concept is accepted by the business community. Therefore airlines need to use such aircraft which can change the configuration as per demand and supply.

Current economic conditions have forced corporates to reduce from Business Class to Economy, which is reflected in the upward trend of travelling Economy Class. But, if the current need of Business Class passengers are kept in mind, additional charges can be levied and will be paid.

Meanwhile, with the current aspect of decentralisation of business from big metros to the smaller ones, the aviation industry in India has realised the need of opening up metros like Bangalore, Hyderabad and Madras by allowing airlines to have direct flights from these cities instead of changing aircraft at Mumbai or Delhi to reach there. Direct flights also means lesser flying hours.