engleski

Recent Trends in Premium Air Travel

Premium travel by air is closely related to business activities, such as international trade of good and services and it is very important market segment that supports airline financial performance. The paper examines the drivers of recent premium air travel that determine the size of premium travel markets between country pairs and changes caused by economic developments in different geographic regions. Advances in cabin designs and amenities offered by airlines to compete for business and first class passengers are elaborated as well as new premium-class products offered by legacy carriers and low cost carriers. The innovations in business class seating incorporate features previously exclusive to first class, while first class features tend to be like those of premium hotels. Trends in premium air travel over the period of last decade and its dependence on economic changes for main traffic route areas are analysed in the paper and it is shown that business passengers, contrary to the opinion of being inelastic with respect to fares, expressed significant downgrading behaviour, particularly in the short haul market. The paper brings some important specific guidelines for airlines to keep and increase their premium travel volumes and improve their financial performance.

Premium class travel ; business passengers ; low-cost airlines ; legacy airlines ; passenger yield

nije evidentirano