As more airlines remove flexibility from business class tickets, TMCs and corporates are increasingly questioning the value of paying a premium for comfort when traditional business-class benefits are no longer guaranteed.
“If business class loses flexibility, it stops being a solution and starts being a luxury. The real value of business class isn't the lie-flat seat, it’s certainty. Take that away and you've got a premium product that doesn't solve a premium problem. For corporates, if a ticket can't adapt when plans shift, it’s not business class, it's just expensive comfort,” said Carmen Hidalgo, Customer Success Team Leader, Corporate Traveller.
While business class still delivers value through comfort, productivity and privacy, it is no longer a standardised product, according to Dmitri Eremin, GM at Indo Jet Travel Sandton. “Airlines are unbundling benefits like flexibility and seat selection, while investing more heavily in onboard experience, connectivity and premium cabin products,” said Eremin.
Corporates exercise caution
Corporates are becoming more cautious about business class bookings, spending more time weighing cost versus comfort.
“Procurement teams are now scrutinising fare rules much more to ensure value for money. The booking process has become more complex and time-consuming with more comparisons and balancing costs and benefits,” said Eremin.
Hidalgo says this has transformed the booking process into a strategic process. “Booking has turned into strategy, not selection. What used to be a straightforward upgrade decision is now a calculated trade-off between cost, risk and agility.”
She said there is a growing zero-tolerance mindset for paying top-tier prices without top-tier rights. “If flexibility isn't baked in, that fare is going to be challenged internally. Business class still has a place, but it now needs to justify itself,” said Hidalgo.
However, Henry Annandale, Ticketing Manager at TAG Travel, believes flexibility is not the only factor influencing booking. “I think price points in general have a huge effect on their buying patterns. Passengers think a bit harder these days, they weigh up flexibility, comfort, flight duration, duty of care and support during disruptions and even possible business outcomes,” said Annandale.
Shift to premium economy
More travellers are opting for premium economy, viewing it as a middle ground between comfort and cost control, particularly when paired with more flexible fare conditions.
“Some corporates have shifted towards premium economy as an alternative. Premium economy is becoming increasingly attractive as a compromise between comfort and cost control, especially when paired with more flexible fare conditions,” said Eremin.
Corporates are becoming more strategic, moving towards flexibility-first thinking. “They are choosing premium economy with full flexibility, mixing cabins across a trip and upgrading tactically instead of upfront. Corporates aren’t asking ‘what is the best cabin?’. They are asking ‘what is the smartest way to stay flexible without overspending?’” said Hidalgo.
Annandale says providing clients with options and accurate information remains important.
“We need to know what our travellers require and how to best meet their needs. A lot of airlines are doing upsell options, where you have the option of booking a more discounted booking class but upselling to a higher, less restrictive fare. We need to be able to advise our travellers on the different options available out there and give them enough information to make an informed decision,” said Annandale.
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