Premium economy gains traction

Airlines are also responding to changing demand patterns by putting more attention on premium economy and hybrid cabin products. These offer travellers a better experience without the full premium of business class, which makes them attractive to both leisure and managed corporate travellers. Gulf and Asian carriers are especially active in this space as they try to protect yield while widening their appeal.

For Indian TMCs and corporate buyers, this matters because premium economy is moving from “nice to have” to policy conversation. Some travel programmes are already reassessing whether premium economy should be allowed on longer routes or for specific traveller bands. That shift could reshape airline negotiations, fare benchmarking and traveller policy over the next year.