Premium economy bookings are climbing fast, and it’s not just about the legroom. New data from Corporate Traveller – Flight Centre Travel Group’s specialist SME division – shows bookings in the cabin grew 35% year-on-year in Q1 2025, despite a 9% rise in average premium economy fares to $4,495 over the same period.
The key takeaway here is that businesses are backing comfort over cost for their work travel – and that shift is also creating new revenue opportunities for travel advisors.
But why the boom? It could be because premium economy offers a sweet spot between standard economy and business class, a cost-effective solution for travellers wanting more space and a better rest without the hefty price tag.
Or it could be down to the fact that business and first-class fares are seeing even steeper price hikes.
New priorities
“Lowest airfares are no longer the number one priority for business travellers,” Corporate Traveller Global Managing Director Tom Walley said.
“Many organisations are recalibrating value, balancing comfort, productivity and employee wellbeing against price. Premium economy is increasingly seen as the sweet spot for long-haul travel.”
According to Corporate Traveller, that preference is being led by industries like IT, finance, construction and manufacturing, with London, Singapore, Los Angeles, Las Vegas and Shanghai topping the list of premium economy destinations.
In a recent survey, Corporate Traveller advisors ranked Singapore Airlines, Qantas and Air New Zealand as the best in class, but also flagged a few wish-list items like better seat recline, more legroom, privacy screens and lounge access.
Win/win
All of this spells good news for agents’ earnings too, thanks to higher-value bookings.
Help your clients understand the benefits of premium economy – better rest, more productivity and a much more comfortable journey – and you’ll be helping them make a smart investment while boosting your bottom line.
“Benefits that focus on genuine comfort, restfulness and not just priority boarding or meal upgrades are what today’s travellers value most,” Walley said.
“Travellers are willing to pay a premium for a better experience that allows them to arrive refreshed, ready to do business and maximise the return on their travel investment.
“As business travel evolves, organisations are putting greater emphasis on traveller wellbeing and productivity.
“Flying premium economy offers the balance between comfort, cost-efficiency and business effectiveness, helping travellers arrive ready to perform at their best.”
Meanwhile, new FCTG data has revealed where inflation has really hit our wallets between 2019 and now – and the numbers show that airfares have grown considerably less than many daily items.
