How Emirates Is Attracting Luxury Travelers
Of Dubai Emirates Airlines in August announced a invest more than 2 billion dollars to improve the in-flight customer experience, including cabin interior upgrades and a new menu – with unlimited caviar.
The world’s largest long-haul airline will retrofit more than 120 planes with new interiors, as well as offer menus with new vegan options and cinema snacks like popcorn, Emirates said. in a statement.
Other new perks for the airline’s first-class passengers include unlimited portions of Persian caviar, paired with classic Dom Perignon champagne.
Those investments come as soon as Emirates posts a $1.1 billion in damage for the year ending March 31.
Emirates Airline President Tim Clark said: “While others are responding to industry pressures with cost-cutting, Emirates is going against the odds and investing to deliver a better experience. ever for our customers”.
What are other airlines doing?
Emirates isn’t the only airline pulling out all stops to get around the spiral of “revenge travel” – the idea that people are making up for “lost” time during the pandemic to travel. come back.
Earlier this year, Finnair launched a new line of high-end economical cabinsseats that provide about 50% more space than economy class seats.
Emirates in August announced an investment of more than $2 billion to enhance its in-flight customer experience.
Photo: Emirates
Air France, similarly, announced new long distance business chair in May, complete with sliding divider For passengers who want their own space.
Emirates told CNBC it’s seen “a lot of interest” in these luxury upgrades, though it said it doesn’t have full numbers yet.
Is that enough?
However, a travel analytics firm noted a shift in demand for premium seats.
ForwardKeys’ Olivier Ponti told CNBC in an email: “During the pandemic, we’ve seen a drop in the number of people traveling by air. However, the proportion of travelers flying in premium cabins has declined. increased significantly”.
Ponti says that before the pandemic, the split between premium and economy seats was 13:87, compared with 17:83 in 2022.
“While there is no guarantee that the shift to premium seats will be sustained as air travel recovers, one can understand why airlines would want to invest in passenger retention. Seniors, who, this year typically spend 575% more on a seat than those in the flying economy.”
However, others are skeptical.
Edward Russell, an editor at Skift, a travel industry news site, told CNBC it’s unclear how “small” product changes will have on sales.
“Most travelers fly an airline or alliance where they have loyalty or choose the cheapest fares. Only a small group of travelers will actually book flights based on the addition of sliding doors or zero caviar. limit.”