FlyerTalk Forums - View Single Post - Is Premium Economy an awkward middle ground?
Old Mar 9, 2019, 10:45 am
  #31  
pinniped
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Originally Posted by evergrn
For TPAC flights, in general the Y:PE:J ratios would be 1 : 2 : 6 for price, 1 : 1.5 : 6 for the seat footprint.
At least that's been my observation.

Based on this, PE offers the worst value. Airlines are ripping people off with PE revenues, and airlines know it.
But it's not as simple square footage of space. For many people, the most valuable inches of space in a seat are the 33rd through 38th inch - the difference between torture-Y and not-quite-torture-Y. For some people, the value of the 39th inch through 60th inch (or whatever J provides) is less important. Other people want the full lie-flat seat and are happy to spend what it takes to get J.

Since PE is still a new-ish thing, airlines are going to try to market it and capture 2x the Y revenue where they can. If passengers think this is a ripoff, then they'll have empty seats and need to adjust the pricing. Time will tell whether this happens or not. If PE is included in enough corporate travel policies, that'll keep yields propped up - just like they did for J and F for decades.
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