Commercial Aviation Business Class Seating Growth Opportunities

Commercial Aviation Business Class Seating Growth Opportunities

Passenger Preference for Increased In flight Privacy and Innovative Fare Structures in Business Class will Drive Growth

RELEASE DATE
28-Nov-2022
REGION
Global
Deliverable Type
Market Research
Research Code: PE13-01-00-00-00
SKU: AE01656-GL-MT_27172
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$2,450.00
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Description

Business class revenue was a key growth driver for airlines as they attempted to resurrect from COVID-19 pandemic-related service disruptions. The emergence of the new traveler segment, the luxury leisure traveler, ensured business class cabins remained fully booked throughout the seasonal tourism periods. Overall, passenger preference for privacy on board aircraft was high, which led to many passengers opting for business class travel, despite higher fares.

Airlines have been experimenting and innovating around many avenues, such as improving service quality, adding new service elements, sustainability, and new fare structures. While lie-flat seats and direct aisle access were considered benchmarks before the pandemic, seats equipped with doors for increased privacy are the new benchmark for passengers. On the sustainability front, direct contribution from original equipment manufacturers (OEMs) is scarce, while airlines are trying to implement sustainable best practices within their business class cabins.

The last decade saw a growing trend of low-cost carriers (LCCs) offering business class products, largely due to their high profitability. Airlines are also experimenting with new fare structures, primarily the unbundling of complementary services. The unbundled fare strategy has become a strong growth opportunity, especially for airlines facing low load factor and yield scenarios.

Key Issues Addressed:

  • How is the unbundled fare strategy implemented, and what are the related growth opportunities?
  • What important considerations do passengers analyze while selecting their itinerary?
  • How are LCCs embracing business class products?
  • What are the latest best practices and innovations seen in global business class cabins?

Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on Commercial Aviation Business Class Seating

Growth Opportunities Fuel the Growth Pipeline Engine™

Introduction to Business Class Seating

Passenger Perspective on Business Class Travel

Airline Perspective on Business Class Cabins

Revenue Scenario and New Pricing Models

Sustainability

OEM Innovation in Business Class Seating

Global Best Practices in Business Class Offerings

Outlook for Business Class Seating

Growth Drivers

Growth Restraints

Growth Opportunity 1: Strategic Deployment of Unbundled Fares

Growth Opportunity 1: Strategic Deployment of Unbundled Fares (continued)

Growth Opportunity 2: Effective Marketing of Unbundled Services

Growth Opportunity 2: Effective Marketing of Unbundled Services (continued)

Growth Opportunity 3: Increased Investment in Developing Cabin Crew Skillsets

Growth Opportunity 3: Increased Investment in Developing Cabin Crew Skillsets (continued)

List of Exhibits

Legal Disclaimer

Business class revenue was a key growth driver for airlines as they attempted to resurrect from COVID-19 pandemic-related service disruptions. The emergence of the new traveler segment, the luxury leisure traveler, ensured business class cabins remained fully booked throughout the seasonal tourism periods. Overall, passenger preference for privacy on board aircraft was high, which led to many passengers opting for business class travel, despite higher fares. Airlines have been experimenting and innovating around many avenues, such as improving service quality, adding new service elements, sustainability, and new fare structures. While lie-flat seats and direct aisle access were considered benchmarks before the pandemic, seats equipped with doors for increased privacy are the new benchmark for passengers. On the sustainability front, direct contribution from original equipment manufacturers (OEMs) is scarce, while airlines are trying to implement sustainable best practices within their business class cabins. The last decade saw a growing trend of low-cost carriers (LCCs) offering business class products, largely due to their high profitability. Airlines are also experimenting with new fare structures, primarily the unbundling of complementary services. The unbundled fare strategy has become a strong growth opportunity, especially for airlines facing low load factor and yield scenarios.--BEGIN PROMO--

Key Issues Addressed:

  • How is the unbundled fare strategy implemented, and what are the related growth opportunities
  • What important considerations do passengers analyze while selecting their itinerary
  • How are LCCs embracing business class products
  • What are the latest best practices and innovations seen in global business class cabins
More Information
Deliverable Type Market Research
Author Vedhas Sabnis
Industries Aerospace, Defence and Security
No Index No
Is Prebook No
Podcast No
WIP Number PE13-01-00-00-00