Corporate travelers in the Asia/Pacific region increasingly
are gravitating toward airlines with premium economy offerings, according to a Sabre
Asia Pacific survey of 108 corporate travel agents in the region.
The survey, conducted in April and May, indicated that
premium economy class acts as “a powerful stimulant to corporate demand.” About
half the agents have seen corporate cost-cutting lead to downgrades from
business class to economy, but almost as many, 41 percent, instead have shifted
travelers from business to premium economy seats.
Meanwhile, 24 percent said travelers required to fly economy
are requesting premium economy seats. The agents noted this as a “tendency to
demand more than what is permitted by policy.”
Premium economy class also is affecting travelers’ choice in
carriers. Just under a quarter of agents in the survey have fielded requests
from corporate travelers to switch to carriers with premium economy seats when
offered standard economy bookings. About a dozen carriers in the Asia/Pacific region
offer premium economy service.
“For corporate travel management companies, all these
scenarios are a positive form of compromise,” Sabre’s report said. “Premium
economy has provided them with another lever to adjust their client’s travel
budget, without significant loss of comfort for their travelers.”
In addition, the survey found,
corporations are asking travel agents to exercise tighter controls around
ancillary air spending. About a third now control ancillary costs for corporate
clients, compared with a fifth in Sabre’s survey last year.