Loss of long term business?
While the recession may have made a serious dent in the demand for premium air travel, not everyone believes that scrapping first class is the way forward.
Natalie Matteus, from luxury travel company Odysseus Deluxe Travel Collection says this move could be detrimental to long-term business for airlines. Odysseus, which caters to high net worth travellers says its own data reveals a “slight fall in the use of business class, but not in first class.”
“People who can afford to fly first class will end up changing to other airlines that offer this service,” says Matteus.
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“There are only a handful of airlines that offer a first-class service and these are seen as the very best airlines. First class should always be on offer for long haul travel and for Middle East and Far East markets.”
“It’s a matter of vision and reputation. Skipping your best service might offer some short-term profits, but in the long run those who invest in first-class will benefit more.
Matteus adds: “It’s really a pity that Singapore Airlines has taken this step especially as people from this region really value these services. Maybe they are doing the right thing in the short term, but I would say for this market, they are losing out on a lot of long term clients.”
There are still some carriers that agree with this sentiment. Gulf airlines Emirates and Etihad have bucked the budget trend altogether to launch lavish new premium cabins (Etihad was recently awarded ‘Leading First Class’ at the World Travel Awards) and neither airline says it has any plans to cut back on its first class offering.
“We have an excellent and very competitive premium class offering, and our First and Business cabins continue to be an important part of our product mix. We have no plans to reduce the number of first and business class seats offered in our existing cabins,” Ahmed Khoory, Emirates’ senior vice president commercial operations gulf, Middle East told Arabian Travel News.
Peter Baumgartner, chief commercial officer, Etihad added: “We take a longer, more strategic approach to the cyclical aviation industry and are confident that premium travellers will return as global markets return to stronger trading conditions.”