Corporate Trips Are on the Rise Again

Despite previous anxieties, business class travel is experiencing a revival, indeed, it is thriving more than ever before. A couple of years ago, the aviation industry was wracked with uncertainty, mired in fears that post-pandemic flyers would baulk at the expense of traveling stop-quality. They believed that passengers would pursue convenience over cost, prioritising Zoom calls and Teams meetings over air travel and hotel stays. Consequently, fares would drop, thereby negatively impacting the airlines’ profit margins while potentially offering an added bonus to executives.

It was presumed that standard routes would lose viability, and some airline operators even considered reducing the business class seating in their aircraft. Such prospects posed serious threats to premium airlines, which rely heavily on business clients for nearly a third of their revenue, and the large international hotel chains, whose sales are predominantly driven by executive travelers.

However, the specter of such a scenario has proven chimeric. As anyone trying to secure a business class fare this summer could attest, prices are at an unprecedented high. As aviation gets back on its feet, demand is found to be eclipsing supply in every segment. The Global Business Travel Association anticipates corporate travel to exceed its pre-Covid peak within this year.

Early indicators of the resurgence of business class air travel were observed at two conferences earlier this year. The Aircraft Interiors Expo and the Passenger Experience Conference in Hamburg introduced a glimpse into the future of comfort in air travel, with state-of-the-art surround sound cinemas and fixed plush seating. Airlines, such as Finnair, are reimagining comfort zones in their aircraft, favoring “almost fully flat” seats, indicating a departure from wholly flat layouts. In other words, airlines are becoming more efficient at maximizing limited air space.

The repertoire of advances like on-board showers, which were widely publicized over a decade ago, are becoming less critical to premium travelers than a spacious, efficient flight service replete with quality food and wine.

Subsequently, around 1,700 industry leaders congregated at the IATA’s annual general meeting, held at the JW Marriott in Dubai, where the latest industry trends were shared, interspersed with strategies to increase the average profit per passenger beyond the existing €6 mark.

As temperatures soared externally, Richard Quest from CNN exercised his braces and vocally criticised airline executives. Willie Walsh, a native of Glasnevin and the director general of IATA led the conference.

Prominent figures like Carsten Spohr of Lufthansa, Tim Clark of Emirates, Vanessa Hudson of Qantas among others agreed that business class has welcomed a new category of consumers.

The pre-COVID business class paradigm predominantly catered to patrons who were there courtesy of their employers’ payments. Today, executives and air-mile accumulators share the business class experience with a fresh generation keen on luxury seating, fine dining, and exclusive lounges.

By 2023, when air travel rebounded, individuals who had saved during the lockdown demonstrated their readiness to splurge more, reconnecting with exploring family and friends. “The demographic in our premium cabins has diversified with several customers willingly paying the fares previously exclusive to corporates, with some flying more frequently,” commented Ms. Hudson.

Emirates, known for providing the largest in-flight entertainment screens, reported a 31 per cent rise in demand for business class from Dublin.

In 2024, as supply struggled to keep up with demand, ticket prices went through the roof. Full capacity isn’t back on every route, especially eastward ones. However, American services in Dublin have surpassed pre-COVID figures with 222 weekly flights in 2024’s summer against 189 in 2019’s. On these routes, modern planes with more business class seating are being utilized, however, airlines encounter no challenges in filling them.

Business class does vary, however. Plenty of our overseas travel on narrower aircraft extends to the US east coast and eventually, with the A321XLR’s debut, to the west coast. The future of transatlantic aviation from Ireland lies in smaller planes covering longer routes. Premium seating on these flights is an asset.

The growth of premium economy is another trend emerging post-pandemic. The unique in-between class first launched by British Airways, American Airlines, and Virgin Atlantic has been familiar to Irish travellers since its inception 25 years ago.

Many airlines were initially hesitant to equip their cabins with an intermediary class, worrying that it might impact the sales of their business class. Air France was the first to step up, closely followed by Lufthansa despite their initial reservations.

American carriers, on the other hand, embraced this idea enthusiastically, taking it to the next level with passengers now faced with an overwhelming number of seat types on one plane. American Airlines offers five different seat types on their B77-300: first class with 8 seats, business class with 52 seats, premium economy and cabin extra both with 28 seats, and finally the main cabin offering 188 seats.

Additionally, JetBlue’s A321neos service, despite being a narrow body, cater their new Dublin to Boston and New York routes with four types of seats. This includes four closed suites, 12 lie-flat seats, 41 premium economy seats boasting 37 inches of legroom, and 102 standard seats with 33 inches of legroom, which however, shrinks to 28 inches when the person in front adjusts their seat backwards.

As the quality of the economy class has deteriorated, more individuals are opting to upgrade to premium. About a quarter of American airlines’ seats are designated as premium, followed by European airlines with a slightly lower percentage, and Aer Lingus trailing behind with only a tenth of their seats considered premium. Aer Lingus decided to encourage discount business class sales rather than incurring the costs of introducing a third class. Their wide-body planes feature 23 business class seats and 248 or 287 economy seats, dependent on the type of aircraft, whereas the A321s possess 16.

It is worth mentioning that Europeans are not typically familiar with business class on short-distance routes. This luxury was withdrawn by both Aer Lingus and Ryanair over 20 years ago, and this trend isn’t just seen in Ireland, it has also spread across most mainstream European airlines.

Surprisingly, Ryanair was found to be the preferred choice of business travellers according to a 2013 study that revealed 22% of its passengers were business passengers. When questioned, these individuals indicated that factors like timely arrivals and non-reclining seats were more important to their comfort than indulgent luxuries like fine wine. Ryanair, unsure how to proceed with this revelation, initiated a series of strategies with seemingly insignificant effects.

Business class services to Europe are still available from airlines such as Turkish Airlines, British Airways, Lufthansa, and Air France, particularly on journeys of five hours or more. For shorter flights, lounge access is a key factor, with alterations to Aer Lingus’ loyalty programme in 2016 receiving criticism due to concerns primarily over accessibility to lounges at Heathrow.

While the tried and tested methods of solo travelling and smart attire no longer guarantee the best deals, corporate travel agents are armed with knowledge on optimal travel times. Simultaneously, airlines continue to entice casual business class clients with special offers. Regularly accumulating air miles and monitoring business class sales are also effective strategies, as well as subscribing to direct email notifications from airlines.

Today, many airlines will auction off their remaining premium seats, with initial offers shared by email. If you act quickly, there are bargains to be secured; act late and you may find even better ones. In the case of emptier business class sections, it might be possible to purchase a seat at the gate for a modest sum, but be aware that on popular routes, business class often fills up by this point.

Despite the rise of virtual meetings and platforms such as Zoom, they will not be replacing in-person interactions or experiential tourism. Agreed by some, Zoom has been associated with negative connotations. Business executives find the drawbacks of virtual meetings acceptable when balanced with the perks of face-to-face consultations.

Travel demands dedication. A prolonged stay at Dallas airport, for example, soon loses significance following the thrill of securing an important contract. And the experience is made even more satisfying with the promise of a comfortable seat on the return flight.

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