The trend to replace first-class cabins with “Business Class Plus” long-haul products

In recent years, the aviation industry has seen a significant change, especially in the premium cabin segment of long-haul flights. The once glamorous first class cabin, a synonym for luxury and exclusivity, is slowly being phased out by many airlines in favor of a modernized first class cabin. Business class Product, often referred to as “Business Class Plus.” This new trend is redefining the air travel landscape by combining luxury with convenience, appealing to a wider range of customers.

The decline of first class

The decline of first class can be attributed to several key factors, the most important being cost efficiency and changing customer preferences. Airlines such as Oman Air have replaced their first class cabins with “business studios” in their latest long-haul aircraft configurations. These new business class seats offer many amenities traditionally reserved for first class, including lie-flat beds, direct aisle access and gourmet dining options, but at a lower cost for both the airline and the passenger.

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Another compelling reason for change is the underutilization of first class seats. According to an analysis by Flightworx, occupancy rates for first class cabins are often lower than for other cabin classes, leading to a rethink of the added value of these seats. The exclusivity and prestige of first class are undeniable. However, with few passengers willing or able to pay the premium prices, it is more economical for airlines to invest in improved business class products that appeal to a larger audience.

The rise of “Business Class Plus”

Several major airlines around the world have adopted the concept of “Business Class Plus.” For example, according to Asiana Airlines’ website, the airline recently introduced its “Business Suite,” a hybrid of First and Business Class that offers first class Business Class cabin experience. This strategic move will enable Asiana to offer luxury services at a more competitive price, adapting to the current demand dynamics in the aviation market.

British Airways has also redesigned its premium offering. While the airline continues to offer a separate first class, the focus is now clearly on improving the business class experience. This shift is partly due to the changing expectations of business travelers who have become more cost-conscious after the pandemic but still want comfort and privacy on long-haul flights.

The Business Class Plus concept typically includes fully flat beds, more privacy through sliding doors or partitions, expanded dining options and access to premium airport lounges. These offerings are aimed at discerning customers seeking a balance between luxury and affordability, making them an ideal target for airlines looking to maximize profitability while offering a premium experience.

A shift towards Business Plus

British Airways one of the world’s leading long-haul carriers, offers a compelling case study in the shift to ‘Business Class Plus’. Traditionally known for its outstanding first-class service, BA has restructured its premium product strategy in response to changing market dynamics and consumer preferences.

Before the pandemic, BA had already invested in a revamped business class offering called “Club Suite.”

This product features sliding doors for more privacy, direct aisle access from every seat, and modern amenities that provide a luxurious experience closer to first class. This change has only accelerated post-pandemic.

As recent reports indicate, British Airways sees the recovery of long-haul business travel as a multi-year process, with many companies implementing tighter travel budgets. In 2020, the airline retired the last remaining 747, drastically reducing the availability of first class seats. In addition, the 747 was replaced by the modern A350, which was equipped with the new Club Suite and did not have a first class.

Market dynamics and customer preferences

The trend of eliminating first class in favor of an upgraded business class is also being driven by changing market dynamics and customer preferences. In the post-pandemic world, business and leisure travelers’ perception of value has changed significantly. As companies cut travel budgets and more people book premium seats out of their own pockets, there is a greater focus on finding a middle ground between cost and comfort.

Airlines are adapting to these changes by offering products that provide many of the benefits of first class without the exorbitant price tag. According to The Business Times, the long-haul business travel segment is expected to be slow to recover as many companies rethink their travel policies and look for more cost-effective solutions.

The future of premium air travel

The trend of replacing first class cabins with ‘business class plus’ products reflects a broader trend towards the democratisation of luxury in the airline industry. As airlines continue to innovate and adapt to the evolving needs of travellers, we are likely to see more airlines adopt this model. The benefits are clear: more efficient use of cabin space, a wider appeal to business and leisure travellers, and the potential for higher load factors and increased revenue.

However, this does not necessarily mean the end of first class. In some markets, particularly those with a high concentration of the super-rich or where long-haul travel predominates, there may still be some first-class offerings. However, these will likely become even more exclusive and bespoke, emphasizing privacy and tailored services to justify their existence and prices.