Planned improvements to Virgin's Premium Economy service are part of a three-year strategy to boost its share of the business travel market. Mike Toynbee reports By rights, Virgin Atlantic should have called its Premium Economy cabin Middle Class, catering as it does for Upper Class travellers at the front end of the aircraft and those, less fortunate souls, confined to the back in Economy.
But the fact is this third category – or fourth in the case of rivals such as British Airways – is designed to encourage passengers in steerage to spend more for the privilege of enjoying a little extra space and comfort, thus increasing the fare paid and, in turn, the carriers’ profitability. In other words, capturing the hearts and wallets of those
who aspire to Business Class but either can't afford it or justify the additional expense.
That, at least, is how the thinking goes. But there is another side to the story. When times are tough, Premium Economy is the safety net for those who are no longer rich enough, or are constrained by company policy, to travel Business but have too few tattoos and body piercings to feel entirely comfortable among the denizens of Zoo Class.
And according to travel management company HRG's managing director Mike Platt, that is the whole point. Premium Economy is "more palatable" than traditional Economy. "While savings are not as great as the full move to Economy, it is a rewarding compromise for companies trying to move away from a 'Club' culture," he maintains.
But with the recovery of premium fare travel in the past couple of years, there is evidence, at least on long-haul routes, more travellers are upgrading rather than the other way round. The latest Barclaycard Business Travel Survey reveals that a quarter of all travellers are now paying premium fares, including a significant eight per cent in
Premium Economy cabins.
For Virgin Atlantic, a three-year growth plan announced earlier this year is aimed at capturing a greater business market share, with products tailored towards premium passengers at the heart of the strategy.
A combination of new and extended business routes – such as London-Dubai and a sixth daily service between London and New York – as well as improvements both in the air and on the ground, are designed to boost the number of business travellers by at least 10% over a 12-month period. There will also be an increased focus on DIY check-in online or at the airport to speed up the check-in and boarding process.
The three-year growth plan also includes significant changes for travellers using Premium Economy and Economy. Trials are already underway for new seating in both classes, with a continuing emphasis on space and comfort.
Premium Economy passengers currently enjoy dedicated check and priority boarding, a wider, more comfortable seat with six inches (14.5cm) extra leg room, a glass of Champagne prior to take off, a choice of liqueurs to follow dinner and a state-of-the-art in-flight entertainment system with seatback screens.
In 2004/5, Virgin Atlantic announced pretax profits of £68 million (US$125 million) and revenues totalling £1.63 billion (US$3 billion). The airline operates the newest long-haul fleet in the world, with 18 aircraft of its total fleet of 33 having been introduced since 2000. It currently serves a total of 26 destinations worldwide and carries more than five million passengers a year.
What you get in Premium Economy Class
Seat: wider and more comfortable than the Economy Class version, with a 38in pitch compared to 32in
Cabin amenities: newspapers; for the outbound journey, the amenity kit is filled with added extras
including socks, eye-shades, earplugs, a Virgin Atlantic pen, toothbrush and toothpaste – all packed into an opaque rucksack;for the inbound journey, passengers receive eye-shades, ear plugs, toothpaste and a toothbrush in a wash bag
In-flight service: a glass of Champagne prior to take-off; priority Economy meal with a choice of three entrees, including a vegetarian option; Sunday roasts available on all flights departing the UK on the sabbath; choice of
liqueurs to follow dinner; priority Economy duty-free choice
In-flight entertainment: on selected aircraft the V-port system offers 300 hours of video on demand whereby passengers can watch or listen to what they want, when they want, and can start, pause or rewind their chosen
movie, TV show or CD. Alternatively, there is a choice of between 14 and 20 video channels, plus nine-14 audio
choices and 10-15 Nintendo games on selected aircraft
On the ground: dedicated check-in at all locations; priority boarding and express Economy baggage reclaim; Gold tier members of Virgin Flying Club qualify for lounge access
Frequent flyer programme: Flying Club, with three membership tiers (Red, Silver, Gold) offering a wide range of benefits and rewards; top level includes Upper Class check-in irrespective of class of travel and use of Virgin
Clubhouses worldwide; new top-up mileage facility recently introduced. FlyingCo is a special loyalty scheme aimed at small and medium-sized businesses, enabling travellers and the company to earn miles
Website: www.virgin-atlantic.com
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