Premium airlines in Asia investing millions on luxury travel

Premium travelers flying to and from Asia never had it before. Business travel segment in Asia is considerably looking beyond comprehension thereby increasing scope for discount business class tickets more than ever. Betting on a rebound in business from the wealthy, Asia’s premium airlines are currently on a spree vying with each other in investing millions of dollars on luxury services. Limousine pick-ups and on-board chefs are among the latest fad for these airlines.

While first and business class passenger traffic seems to have fallen significantly in the last few years as airline companies world over continue to cut costs, business travel sector appears to be lucrative for major Asian carriers. A recent study has indicated that Singapore Airlines, Cathay Pacific Airways and Qantas Airways are among premium carriers that are still estimated to earn nearly 35 to 40 percent of passenger revenue from the high-margin segment.

The study pointed out that yields per premium passenger are around four to five times higher than those for economy class. Considering the given outcome, Asia’s premium carriers are not lagging behind in investing huge amount on amenities ranging from luxurious cabins to fine dining. The industry data also showed that Asia-Pacific airlines of late are the most profitable in the global aviation sector. A top air travel industry analyst summed up saying that if airlines don’t upgrade their products then they are always going to be under pressure to drop the price more significantly. However, if upgrades are made and people see the investment, see something new, fresh, there are some who will be willing to try it. This raises the chances for increased profitability.