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June 19, 2008

Are “Premium” Travelers Fleeing the Airlines?

Filed under: Business Class, First Class — mike @ 2:38 pm

Amidst the rising costs, fuel surcharges, fractured routes, long lines, and general annoyances that seem to accompany air travel these days, the number of passengers willing to purchase first class and business class airfare on commercial airlines is dwindling. Full-fare coach airline tickets are taking a hit, too:

 

“The Standford Transportation Group, a US based aviation consulting firm, has completed its biennial review of US domestic airline passenger activity and business aircraft activity. The study found that the number of airline passengers purchasing the premium, or first class, discounted first class, business class and full price coach airline tickets on US domestic airlines has fallen from 20% of overall airline travel before 9/11 to less than 10% of overall airline travel today.” (from All Things Aviation)

So, where are the “premium” passengers going? Well, a large number of travelers (90% — according to the study) are using discounted airfare for travel. The report also touches on the shift that many business travelers have made from commercial airlines to alternative business aviation options.

We know that higher prices, the weakened dollar, and the growing fuel issue have soured a number of first class and business class passengers on commercial airlines. Regardless of whether these travelers seek out other means of transport or if their companies resort to booking them in a discounted coach seat as opposed to a first class or business class seat, the airlines will likely continue to see business travel numbers and profit drop.

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