Is This Really Why First Class Fares Are So Expensive?
Jackie Reddy May 30, 2018
There’s no denying that first-class is expensive, but for those who are willing to pay for the convenience, the price tag is well worth it. Whether passengers choose this class out of convenience or for the luxury, Business Insider India takes a closer look at the costings behind first-class.
It’s no secret that first-class is expensive, but for those willing to pay, the premium price is deemed to be well worth it. As Business Insider India reports, first-class fares can cost up to 70 percent more than an economy ticket, with premium tickets on international routes often exceeding this figure.
For those wondering what is behind these prices, the outlet explores the reasoning behind the costs.
First and foremost, from great food to lie-flat beds, the price tag ensures that flying is a bit more comfortable, if not downright luxurious.
Secondly, first-class also affords passengers access to an array of services – usually via an exclusive lounge – before they even step onto the plane.
But carriers, the outlet reports, rely on the fact that travelers – some of whom see first-class as a convenience – are willing to fork out for these fares. According to travel blogger Ben Schlappig of One Mile At A Time, “The cost of airfare is incredibly dynamic and is all about what consumers are willing to pay, rather than how much they should pay to cover their ‘fair share.’”
Commenting on pricing, Schlappig says, “Corporate contracts and incentives are at the heart of high first-class pricing. Some companies have big contracts that get them upgrades or discounted first-class fares, and that can still be very lucrative for airlines.”
Additionally, the outlet reports, there are those – corporate employees, for example – who don’t need to pay for their tickets. Regardless of how they pay, there is, reports the outlet, a cachet around first-class which creates a sense of prestige.
But all these perks comes at a cost, something that is passed on to the passenger via a hefty fare, which, the outlet reports, has only increased over time. This, of course, has been fed by higher fuel prices and other operating costs.
Travel blogger Nomadic Matt was quoted by the outlet as saying, “Airlines can’t absorb all of that increase, so they pass some of that on to the consumer, leading to higher fares.”
[Photo: Shutterstock]
No, I am not ignorant of economics. The airline business is very competitive. If New Airline figured out a magic patentable 3-D way to enlarge economy seats to domestic first class size without reducing the number of passengers it would enjoy great financial success. That's why you see airlines constantly tweaking the business class cabin: trying to stuff as many seats in as possible while still giving a good experience. So they try to figure out what is essential: every seat has aisle access?, lie flat?, when the seat lowers to lie flat, how wide does the "coffin" have to be, etc. Sure, some people will pay (with their money or other's money) to fly premium regardless of the cost, but business class is a very competitive business with the airlines putting a great deal of time and money into the question of how densely business class seats can be packed without unacceptably degrading the product.
What a waste of time.. Bad statistics and poor content. Btw, business class offers lounge benefits and lie flat beds as well..in case that was the highlight or essence of the this article
It’s not just the bad statistic, the article makes no sense. The first paragraph is basically repeated, and saying “up to 70%” then potentially even more is stupid. The writer made a small mistake with her stats, the editor is to blame for this mess of an article.
The level of ignorance of simple economics in the article is laughable. Cost has very little to do with the price of many good and services, especially "luxury" items. First Class costs what it does because there are customers willing to pay those fares for that level of comfort and service.
maybe 70% than a full fare economy ticket