Business travellers shun premium economy

Business travellers are not swayed by the introduction of a premium economy class by some airlines.

The new service has little effect on traveller’s choice of cabin class, according to the latest Barclaycard Business Travel Survey.

The poll of 4,000 UK business travellers also found that only two per cent select an airline for frequent flyer incentives and ‘air miles’.

British Airways emerged as the most trusted airline brand for the sixth year in a row, with almost half of business travellers (48%) choosing to travel with the carrier.

Despite recent threats of strike action and continued intense media attention over the past 12 months, BA’s popularity increased by one per cent on the previous year.

Second most popular is Virgin Atlantic, which has regained its position after losing out to easyJet in last year’s results.

Despite the heavy investment of some airlines in premium economy products, it seems to have had little affect on business travellers with the majority of travellers remaining in the lower cost classes.

Standard economy is the most popular class with nearly half of business travellers (46%) – an increase of three per cent on the previous year.

The research found the increase in economy came at the expense of business class travel. In 2006, 14% of business people said they travelled most by business class – down by three per cent from 2005.

Class most travelled in by business travellers:

      Cabin Class

     2005

     2006

      Standard Economy

     43 %

     46 %

      Low cost/no frills

     31 %

     31 %

      Business

     17 %

     14 %

      Premium economy

     8 %

     7 %

      Premier/First

     2 %

     1 %

When asked whether the introduction of premium economy had had an effect on their business travel plans, an overwhelming majority of business travellers stated that it had no effect.

Of those polled more than three-quarters (78%) stated that the introduction by some airlines had no effect, with only 15% admitting it had encouraged them to upgrade their travel purchase from economy classes and just 4% saying it had led to them downgrading their class.

Barclaycard Business commercial cards director Denise Leleux said: “The introduction by some airlines of a premium economy class does not seem to have encouraged business travellers to either “buy up” or “buy down” – where passengers move from standard economy or business class to premium economy.

“The results suggest that despite the heavy investment in premium economy services by some airlines, business travellers seem reluctant to change from the class they are used to.”

Of the 48% of business travellers who chose BA as their preferred airline, nearly half said it was because they trusted or liked the brand, with over a third saying it was because of airport convenience and almost a third stating that it was because of the breadth of network.

Company policy appears to have little impact on a business traveller’s choice of airline with only 5% saying their choice of BA was down to their company’s travel policy.

Business travellers’ top five airlines for business travel:

      Airline

     2005

     2006

      BA

     47 %

     48 %

      Virgin

     7 %

     8 %

      easyJet

     8 %

     7 %

      bmi

     4 %

     3 %

      Ryanair

     2 %

     3 %

BA also cemented its position as the chosen airline for big business and SMEs alike. The research found that the airline increased its share of the market of larger companies to 56% (up from 54% the previous year). Amongst small businesses the story was the same with nearly half of all small sized companies choosing BA over its nearest competitor, easyJet (10%)

Leleux said: “It is clear that brand loyalty is a key factor when business travellers choose who to fly with. Despite the difficulties that BA has faced in recent months it is clear that they have a loyal following of customers who are continuing to fly with Britain’s flag carrier.”

When it came to companies using low cost airlines for business purposes, the research showed that although its share of the low cost market fell in the last 12 months, easyJet remained the favourite low cost airline in the UK.

The top five airlines for low-cost business travel are:

      Airline

     2005

     2006

      easyJet

     37 %

     32%

      BA

     7%

     14%

      Ryanair

     13%

     11%

      bmi

     9%

     8%

      Flybe

     3%

     4%

by Phil Davies