Is this the end of First Class flying?
Recently, Qatar Airways unveiled its revolutionary Business Class, with CEO Akbar Al Baker claiming it gave passengers “a First Class experience in Business Class”.
Qatar will soon be the first airline to offer couples seated in Business a double bed on its Boeing 777s and A350s as well.
Qatar follows a number of airlines that are going hard on the Business Class front, reasoning that the oversized seat setup and exorbitant service is no longer relevant.
According to an article on Skift, this could very well be the end of an era for First Class offerings.
While some carriers have cut first class completely, Skift reports others have only given it the chop on poorly performing routes. Several have even cut the size of cabins to less than six seats.
Speaking to Skift, president of passenger airlines for Air Canada, Ben Smith, said, “With these suites that you see on some luxury carriers, the demand for that is pretty limited.
You look at the value proposition and the cost differential, and the amount of real estate it takes up can hardly be justified.
“There’s a very small market that sits between business class and a private jet that wants to fly in first class. From the biggest financial centres, perhaps.”
By comparison, the jazzed up Qatar Business seat can accommodate a family of four in one pod.
“The living space in the Q Suite is as large as you can have,” Al Baker told media in Berlin.
But the aviation industry has seen much change in the last 10 or so years. Back just a decade, passengers wanting a lie-flat seat only had First Class as an option, with Business just having a decent recline.
Now almost every Business you see on international flights has a flat bed in Business. No, they’re not as long or wide, or come with as much storage as First, but it’s hard to justify paying such a high price just for a few more inches.
Even the reliable First Class passengers – the corporate executives – are turning to Business instead, meaning just a few people on flights between major business hubs are left booking First.
“You see a lot of carriers starting to phase out first class because the only difference really between business class and first these days are you get a little bit better food and better wine onboard,” Andrew Yiu, Air Canada’s managing director for product design, told Skift.
“But most of customers are just looking for that lie flat seat to be able to sleep so they can function when they arrive at their destination.”
Per Skift, in North America, only American Airlines can see a long-term future for international first class offerings, and even they’ve stripped it to just on 20 Boeing 777-300ERs that fly to major financial centres like London and Hong Kong.
Lufthansa, which according to Skift is the world’s biggest buyer of caviar, is removing its First Class cabin from all aircraft but the Airbus A380s and Boeing 747-8s.
Singapore Airlines is also culling cabins, and while its A380s are hanging on to larger cabins, many of its other aircrafts including new Airbus A350s don’t come with a First Class at the pointy end of the plane.
“In the context of business class becoming so good, the incremental reason for most travellers to travel first class rather than business is not as compelling as it perhaps used to be before full lie-flat beds, before very, very wide seats, before the privacy and all of the other attributes that now come with our business class,” Campbell Wilson, Singapore’s senior vice president for sales and marketing, told Skift.
“It’s more of a niche product than perhaps it used to be. That’s why the cabin has been adjusted slightly.”
But from the perspective of keeping First Class, even if only for a small market of flyers, Cathay Pacific’s chief operating officer Rupert Hogg, told Skift, it’s about “having your own personal space, being acknowledged, feeling that you are someone who is important” are big factors for passengers with disposable incomes, willing to pay.
Just look at Etihad, for example, which introduced its Residence offering in 2014. Have a squiz at the dreamboat here, if you need a reminder.
The Residence had a number of rooms, including a private bathroom, included in the suite, with Nicole Kidman the face of the flying experience.
Etihad also started spruiking “first class apartments”, with both a bed and seat on offer.
“The halo effect is considerable,” Etihad Group CEO James Hogan told Skift last year.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
Air Canada Cathay Pacific etihad airways qatar airways skiftLatest News
Two thirds of Australians support introduction of tourism tax, survey reveals
Can you guess which generation was the most outraged at the news? Hint: It is exactly who you think!
“The consumer really just wanted more classic reward availability” – customers underwhelmed by Qantas FF shakeup
All this consumer wants is to sit behind someone that doesn't push their seat back to near-horizontal levels.
Aussie travellers warned of ‘significant’ visa shifts in destinations including Chile, US and Vietnam
To be honest are biggest advice for having a layover in the US, is just don't.
Profile: Delta CEO Ed Bastian
Bastian says the airline business isn't for the faint hearted. We're sure Alan Joyce would agree!
Final Call: Travel DAZE Exec early birds are about to expire
Much like the auctioneer at the hottest sale of the year, we're giving you one more chance to jump at this deal!
Forget the weekend! Experience Gold Coast launches mid-week travel campaign
Your boss might be a bit bothered if you jet off mid-week, but you'll be the envy of all of your Instagram followers.
Victorian Tourism Industry Council warns of losing tourism dollars to NSW & QLD
Trendy cafe's hidden in CBD laneways can only get so many tourism dollars, clearly!
AIME 2024 rustles up $330m for APAC economy
This figure is a 65 per cent increase on 2023, much alike The Nibbler staff's alcohol consumption.
Amex GBT to purchase CWT for $871m
It's big deals like this that get a firm handshake - hence the sore hands over at the CWT and Amex GBT offices.
Boeing cleanout: CEO, chair to go as safety crisis plagues the manufacturer
CEOs are falling thick and fast these days. We should have started up a bingo game with their headshots in the office.
Star boss resigns, admits retaining NSW casino licence unlikely under his leadership
The CEO resigned after 18 months in the role. 'Another one bites the dust' rumoured to be heard playing in Pyrmont.
Corporate Traveller swings amateur golfers around the globe for World Golf Competition
How're your golf skills? Consider yourself a Tiger Woods or often get quadruple bogeys? We take after the latter.
Corporate travellers to spend big on Melbourne F1 despite financial pressures
Part of the attraction is sick days after the event as corporate travellers suffer creaked necks and blown eardrums.
Bonza officially kicks off Gold Coast-Darwin route
The Flying Purple Thumb is back at it with another route. We swear, we're going to make this nickname stick!
South West Sydney Tourism launches Western Sydney Tourism Awards
Penrith's 3 consecutive NRL premierships wasn't enough? The people of Western Sydney could fill the trophy cabinet more!
Hotels vs. Airbnb: Industry leaders at odds over who should pay accommodation levy
There's not as much gore in the Hotels vs. Airbnb saga as there is in Alien vs. Predator, but it's just as thrilling!
Singapore Airlines revamps premium economy with new menu, amenity kit
Felt Singapore Airlines was lacking "the sauce" (as the kids say). Bolster belief in the carrier's je na sais quoi here.
Business Events Adelaide set for 20th Destination SA event
Destination SA turns 20! Hopefully it's not celebrated with vodka cruisers and vapes like most 20th birthdays.
Boeing’s woes delay massive Virgin Australia order
This delay means Virgin staffers will be without that new plane smell, inspiring us to sell it in a can.
All the winners from the 2023 Qantas Australian Tourism Awards
Somehow missed this news recently? Good thing you're subscribed to our fabulous newsletter!
Corporate international travel from Brisbane up 30% YOY: Flight Centre
Queenslanders seem keen to go somewhere that actually serves good beer! Sorry, we actually like Great Northern.
Amora Brisbane undergoes $30m remodelling, geared up for MICE offerings
When $30m goes into an amazing hotel to get it geared up for MICE offerings, that's amore!
Corporate Travel Management’s CEO Laura Ruffles steps down
CTM confirmed that Ruffles will be stepping down due to a personal health issue, effective immediately.
Qatar Airways crowned World’s Best MICE Airline at World MICE Awards
You could say Qatar Airways really 'nabbed the cheese' with this one! Alright, we'll see ourselves out...
Qantas, Jetstar & Virgin hike airfares as supplier costs inflate
Supplier increases means you'll pay more. It's like pass the parcel, but instead of getting a present, you owe money.
NSW Central Coast wins global sustainability award for promoting ecotourism at ITB
NSW Central Coast jumped the gun on St. Patricks Day and got the green celebrations going early!
PHOTOS: RuPaul’s Drag Race stars hit Kings Canyon for Priscilla’s 30th anniversary
The stars have renamed the iconic spot 'Queens Canyon'. No name change to the adjacent 'Priscilla's Crack', however.
Air NZ to suspend Auckland-Chicago route amid aircraft troubles
Sorry Kiwis, your craving for authentic deep dish pizza will go unsatiated (or you could just fly with another airline).
Tasmanian Premier promises to build the world’s largest chocolate fountain if re-elected
If only sticky 6-year-old children could vote. Then the Tassie Premier would be guaranteed a victory!
The staggering amount invested in 2022/23 Australian tourism projects revealed!
Any guesses on how much it was? We'll give you a hint: It's between $1 and $9 trillion (hope this helps).
Marriott’s Bonvoy Lounge makes it a 5-peat at Formula 1 in Melbourne
If Formula 1 is so good, then why isn't there a Formula 2? Oh there is one... Never mind.
Virgin Australia posts $236m profit, but the outgoing CEO warns of turbulence ahead
Hrdlicka warns of tough times ahead, just after announcing she's leaving. We wonder if there could be a connection!
Ascott opens new 255 room property in Central Sydney
Bored of your bedroom and want 255 new ones to try? The new Ascott property is here to solve this very specific problem!
Work and play at the Radisson RED, Auckland
We aren't going to tell you what order to work and play in, just that you should be looking to do both at Radisson Red.
Swiftonomics 101: Just how much did fans spend travelling to see Taylor Swift?
Thought you'd heard the last of Swift, huh? Not in your Wildest Dreams could Swiftomania go out of Style!
Rex posts a $13.3m turnaround for 1H24, but still at a loss
Rex is slowly making its way back to pre-pandemic form. Much like us with our sporadic attempts at exercise.