Beyond the Comfort Zone: Are Business Class Airfares Ridiculously Overpriced?
It’s been 10 years since I’ve been in the travel industry, but this particular quirk still makes me curious.
After hearing numerous complaints and whinges from many of my clients and friends - I share my thoughts.
As the founder of IFLYFLAT, a company that helps business owners maximize their points and rewards for flying, I have had the opportunity to experience a wide range of travel experiences, from budget carriers to first & business class flights on the world's leading airlines, from five-star luxury hotels to two-star rooms.
My experiences have taught me that while there are some surprises that turn out to be lucky, there are also times when expensive options can be disappointingly subpar.
Today, I want to talk about the increasingly overpriced pointy-end seats on planes and why I believe that the airline industry needs to step up its game.
First of all, let's compare what spending over $10,000 for a 24-hour period might get you.
If you were to spend this kind of money on a three Michelin star restaurant, you would expect an exceptional dining experience, with impeccable service and attention to detail.
Similarly, if you were to spend $10,000 per person for one night in a 5-star hotel, you would expect a luxurious experience, with amenities and services that cater to your every need. Bags carried, doors opened, everyone to greet you by name and your favourite chocolates by the bedside.
However, when it comes to flying First or Business class, the experience can often be quite different. Despite paying top dollar, passengers are often faced with flight delays or rescheduling, with little more than an apology offered in return. Furthermore, when it comes to getting help with issues, call centres often give priority to higher loyalty status customers, rather than those who have paid $10,000 or more per ticket, or $40,000+ for a family trip.
One of my clients, Georgia, recently shared her experience with me. She and her husband had saved up 1 million points to fly business class to Europe. However, when they tried to book the flight, there were no points seats available, and the only option was to pay $16,000 from their savings to fly business class. Georgia was deeply disappointed, as the food served during the flight was of poor quality (looked and tasted like microwave dinners) and some options were not available, despite the fact that they had informed the airline of their preferences in advance.
Another a friend, Henri, had a similar experience. He paid $12,800 to fly business class. When he arrived at his seat, he discovered that his seat was glitchy, and the screen was not working. Despite filing a complaint with the airline, he has yet to receive any compensation, and is unsure if his complaint was taken seriously. Had he known what he was in for, he would have taken a different flight, and he believes that he deserves a substantial refund to his credit card and not some travel voucher.
And thirdly, I’ve heard if a passenger is involuntarily downgraded from a paid Business to Economy class, it seems that they will only receive a refund for the fare difference between their original ticket and a fully flexible priced Economy ticket. You might know that a last-minute fully flexible Economy ticket is very expensive and might cost more than the discounted Business Class ticket purchased in advance, so hopefully, no one is asked to pay more to get downgraded against their wishes with this formula. It is unfair as the customer gets penalised both financially and loses comfort. I feel a full refund for that sector is warranted in such cases.
If a service mishap were to occur with one of the dishes in a michelin star restaurant, they would give you extra food, drinks and take off a portion of the bill as compensation for disturbing the entire experience.
If there was an issue with the room at the 5-star hotel, such as malfunctioning air conditioning, you would get looked after more than just an “apologies for the inconvenience”.
Yes, the travel industry was hammered during Covid-19 and suffered billions of dollars in losses, those working in the travel industry are understaffed, overworked and doing their best to make everyone happy.
But, the fact that airlines are now making billions in profits while simultaneously struggling with service levels for those paying exorbitant prices for business class flights is unacceptable. Great for shareholders now, but in the medium to long run it could be very bad for shareholders.
It is essential that airlines "wake up" to the current reality and provide service levels that are commensurate with the prices they are charging, which range from $12,000 to $16,000 or more.
Don't offer the seats if you can't deliver on the promise, and if issues arise - have a workable process that doesn’t make the customer battle for rectification.
Now, I know what you're thinking: "But Steve, you've never paid for a business class seat. How do you know what it's like?" That's true, I've never paid cash for a business class seat and I hope that I never will.
However, my passion for points has enabled me to fly around the world in the pointy-end by leveraging the best value from the points reward systems that airlines and credit card companies have designed. When I fly on points, I can look past the lower levels of service and satisfaction, because I paid less than half-price, I know that someone else (or their company) sitting next to me has likely paid top dollar and they did not get what they were promised. I am angry for them!
In conclusion, paying for an expensive airfare is already painful, and then getting a poor experience is absolutely terrible. The airline industry needs to step up its game to match the service level worthy of the prices they are currently charging. It shouldn’t be just a game of supply and demand.
Value is the name of the game.
Excuse me, I need to go find my oxygen mask, I think I just got a little worked up! 🤣
Until next time,
Steve Hui
Founder of IFLYFLAT - The Points Whisperer
