First class makeovers give the rich hotel rooms in the sky
Airlines are reinvigorating first class as deep-pocketed customers embrace travel again, taking luxury to new heights up in the sky. First-class cabins are increasingly resembling mini hotel rooms, with sofas, double beds, televisions, desks, wardrobes, minibars and in some cases, walk-in showers. The more creative, the better. You can even book a chef. The investment is happening despite slowing economic growth and a cost-of-living squeeze. Airlines are betting that enough people are willing to splurge on flying in style after being grounded by Covid and denied the chance to travel. “Leisure travelers in particular continue to book flights in business or even first class,” Deutsche Lufthansa CEO Carsten Spohr said during an earnings call in March. “This year is the first year all my team tell me, ‘Spohr, we need to grow first class,’” he told investors last week. The German airline is investing $2.7b over two years to revamp its long-haul aircraft under a program it has named Lufthansa Allegris. Qantas is also showcasing a plush new first class, a realm that’s typically beyond the reach of ordinary passengers — the closest most people get is a stolen glance as they shuffle conga-line style to the plane’s exit doors. The IATA estimates that airlines suffered about $200b in losses over the past three years as Covid wreaked unprecedented havoc. They desperately need to claw some of that back, and first class has become a potential goldmine. Premium travel, which also includes business class, is back to 86% of 2019 levels, according to IATA, while total air travel demand, including economy class, is at 81%. Even with first class fares going for more than 10 times as much as standard economy seats, demand is there - either for bookings with cash or the rare opportunity to use up miles accumulated on credit cards during the pandemic. “There is still a large amount of excess savings,” said David Mann, chief Asia economist at Mastercard Inc. “The willingness and the ability to spend doesn’t look like it’s going away anytime soon, which most likely explains why airlines are making announcements.” Story has more.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-05-12/general/first-class-makeovers-give-the-rich-hotel-rooms-in-the-sky
https://portal.staralliance.com/cms/logo.png
First class makeovers give the rich hotel rooms in the sky
Airlines are reinvigorating first class as deep-pocketed customers embrace travel again, taking luxury to new heights up in the sky. First-class cabins are increasingly resembling mini hotel rooms, with sofas, double beds, televisions, desks, wardrobes, minibars and in some cases, walk-in showers. The more creative, the better. You can even book a chef. The investment is happening despite slowing economic growth and a cost-of-living squeeze. Airlines are betting that enough people are willing to splurge on flying in style after being grounded by Covid and denied the chance to travel. “Leisure travelers in particular continue to book flights in business or even first class,” Deutsche Lufthansa CEO Carsten Spohr said during an earnings call in March. “This year is the first year all my team tell me, ‘Spohr, we need to grow first class,’” he told investors last week. The German airline is investing $2.7b over two years to revamp its long-haul aircraft under a program it has named Lufthansa Allegris. Qantas is also showcasing a plush new first class, a realm that’s typically beyond the reach of ordinary passengers — the closest most people get is a stolen glance as they shuffle conga-line style to the plane’s exit doors. The IATA estimates that airlines suffered about $200b in losses over the past three years as Covid wreaked unprecedented havoc. They desperately need to claw some of that back, and first class has become a potential goldmine. Premium travel, which also includes business class, is back to 86% of 2019 levels, according to IATA, while total air travel demand, including economy class, is at 81%. Even with first class fares going for more than 10 times as much as standard economy seats, demand is there - either for bookings with cash or the rare opportunity to use up miles accumulated on credit cards during the pandemic. “There is still a large amount of excess savings,” said David Mann, chief Asia economist at Mastercard Inc. “The willingness and the ability to spend doesn’t look like it’s going away anytime soon, which most likely explains why airlines are making announcements.” Story has more.<br/>
