Why Business Class?

View PDF | Print View
by: Edward Popper
Total views: 95
Word Count: 592
Date: Wed, 18 May 2011 Time: 3:19 AM
0 comments

Many of us have done it. We walk through business class on the way to our cramped economy class seat on an airliner and think "who are these pampered snobs with their big fancy seats, wine glasses, pillows and blankets?" Class divisions are nowhere more keenly apparent than on an airplane. But the next time you fly, you might, just for a moment, consider feeling some gratitude for the business class passengers. After all, because they're paying really high, and I mean really high prices for their perks, it allows the airlines to keep airfares lower for you and I and still make a profit.
What is business class, and why does it exist? Why would someone pay several thousand dollars to not undergo a few hours of mild discomfort in a coach class seat?
Business class is of course a premium level fare. It is sometimes sandwiched between first class and economy; although the industry trend is that business class is replacing first class altogether as the only premium level fare. The business class seating offered on many long-haul international flights really exceeds the luxuries traditionally associated with first class sometimes offering such amenities as fully flat seating, privacy screens, workspace with electrical hookups for all your electronic devices, individual entertainment, sumptuous meals and fine wines and champagnes. These passengers may also have access to private airport lounges and facilities as well as streamlined check-ins.
Who pays for this stuff? There are of course wealthy individuals for whom money is simply not an issue, but most business class passengers are flying on a corporate account. When a company sends its representative overseas, sometimes with millions of dollars in sales or contracts hanging in the balance, the cost of a business class fare is a small premium to pay to insure he arrives fresh and well-prepared.
Shaking off the effects of occasional travel is no big deal to most of us, but constant travel can be very demanding physically. A responsible corporation looking after the health and well-being of its frequent flyer employees may opt to spend extra money to make the experience as comfortable as possible. Also, business class travel may be seen as a valuable perk by employees and is much cheaper than paying higher salaries because it is completely tax-deductible.
While it is true that many discount carriers manage to keep prices low and turn a profit without offering premium fares, it is also true that many of these carriers use older aircraft, fly shorter domestic routes and as newer companies are not yet saddled with the burden of the high wages and benefits that are inherent with a more mature workforce. In other words, an employee who's been on the job for 25 years is going to cost you more than one who's been on the job for two years.
Airlines selling premium fares is somewhat analogous to American automobile manufacturers selling SUVs. Because their labor costs are so much higher on a per-vehicle-sold basis than their foreign competitors, American manufacturers are forced to sell more SUVs and premium vehicles with higher profit margins than their competitors who can make money all day long selling compact cars.
So the next time you fly, keep in mind that business class airfare provides important economic benefits to businesses, gives some comfort to poor souls who spend much of their lives traveling and helps the airlines to make a profit while keeping fares reasonably low for everyone else.

About the Author

Edward Popper is a travel industry professional.