Future Growth Potential of Airline Economy Class due to Post pandemic Preference for Low cost Travel and Increased Regional Connectivity
The economy-class seating segment was the most affected during the recent pandemic. Till July 2021, passengers were reluctant to fly due to economy-class seats offering the least privacy between co-passengers. However, these cabins are the cheapest on commercial flights; effective vaccination results helped raise the demand for air travel, and revenues from economy-class cabins increased.
The resumption of operations of low-cost carriers (LCCs) and ultra-low-cost carriers (ULCCs) (both models featuring all-economy-class cabins), which survived the pandemic, helped quicken the recovery of global air travel demand and regional connectivity. Start-up airlines, observing the success of LCCs and ULCCs, have been set up based on these 2 business models. Ticket prices and competitor price reviews drive the passenger choice factors for an economy-class product. The future trends (especially during the recovery period) indicate that ticket prices will be the first passenger influencer when selecting flight schedules. Airlines serving passengers through the full-service carrier (FSC) business model can provide even economy passengers with increased service offerings. However, the value assigned to these offerings may differ for each passenger.
The role of economy-class passengers is paramount for airlines in achieving their sustainability goals and targets. Original equipment manufacturers (OEMs) and airlines strive to implement sustainable solutions for economy cabins. The outlook for economy-class cabins appears promising during recovery and growth periods.
KEY ISSUES ADDRESSED:
- What are the important considerations for passengers while selecting their itinerary?
- What are the latest best practices and innovations in global economy cabins?
- What factors do airlines consider during the pricing management of economy class?
