Premium economy air travel will become the growth product for corporate customers as they look to cut costs by downgrading from business class, a leading corporate travel agent has predicted.
Sydney-based LTM Travel Management, a division of Leggett Travel Group, estimated that 20 per cent of its clients will cross to premium economy by the end of the year. It will save each firm 40 per cent on their corporate international travelling costs, general manager Renos Rologas said.
But he admitted that premium economy has faced barriers.
“Previously, consideration to move from business class to premium economy had been overlooked as a question of perception of image, culture and travel habits that are difficult to change,” Rologas said. “This certainly should not be perceived as a downgrade from business class but an efficient and effective way to save on travel costs.”
Increasing numbers of airlines are introducing premium enconomy, including Qantas which launches the class in April to London, Singapore, Bangkok and Johannesburg.
Rologas said the cabin offers all the services needed by business travellers including dedicated check-in and PC power outlets.
“Since premium economy has become available in the market we have consistently encouraging our customers to consider this alternative as a major way of saving money,” he said. “It does not compromise on service and image but provides real value for money.”