Three-Tiered Approach to Economy Works for Virgin Atlantic

Last spring, Virgin Atlantic unveiled three new experiences for economy passengers. These packages – Economy Delight, Economy Classic and Economy Light – offer very different perks, but in the months since their introduction, they have enabled the carrier to meet the needs of all of its passengers.

Last spring, Virgin Atlantic introduced three new economy experiences for travelers. Since then, passengers flying with the carrier can take their pick from among Virgin’s Economy Delight, Economy Classic and Economy Light fares.

In a statement at the time, the airline said that these ticket types offer travelers “three new ways to fly will allow customers to choose the product that suits their budget and travel style – but never compromise on inclusive food and drink, unrivaled service, and in-flight entertainment.”

For example, Economy Delight passengers can enjoy extra legroom seats and priority boarding while Economy Classic travelers have a guaranteed baggage allowance. But for those who would prefer a no-frills approach, Virgin’s Economy Light offers budget fares for those carrying only hand luggage.

Offering his comments at the time of the launch, Craig Kreeger, Virgin Atlantic’s chief executive described these new fare levels as “the biggest change to our Economy cabin in over a decade.”

Now, it seems that Virgin’s three-tiered approach to its economy fares has paid off.

Offering his comments to TTG, David Geer, the airline’s senior vice president of revenue management and digital and distribution said, “What we’ve seen with having three products in the economy cabin is it depends on the market and the time of year [customers] are flying. It gives us the opportunity to tap into particular sources of demand.”

Geer also took the time to offer up his thoughts on Virgin’s venture with Delta Air Lines, saying, “From a Virgin Atlantic perspective, it is one of the biggest structural boosts we’ve had with the size and location of the network. Tapping into Delta has given us extra business demand through their hubs.”

He added, “When creating the customer proposition, we can have the Delta scale and the Virgin flair and let them come together. If anything, we’ll use the opportunity to re-fleet and refresh the cabins to actually increase the size of the premium cabin rather than [it being] the other way round.”

[Photo: Virgin Atlantic]