Virgin business fliers increase, so do profits

by Charlie Leocha on August 26, 2008

It is no secret that Virgin Atlantic has long been recognized as having the best business class product across the Atlantic. But business fliers have been taking a long time to shift allegiances fully to Virgin because of corporate policies and misguided frequent flier loyalties.

This past year has seen Virgin begin to take significant business market share. According to BBC, “Premium passenger numbers rose 22% during the year, as Virgin took market share from BA and other rivals.”

Anyone who has read my columns knows that I am a fan of Virgin Atlantic Upper Class (their business class service) from their amenities kits to their jammies to the over-the-Atlantic massages to their dedication to customer service and to their airport lounges. Even Virgin Atlantic coach class is a step above other transatlantic carriers.

Friends of mine who flew Upper Class with Virgin Atlantic from Hong Kong to Heathrow swore to never fly with anyone else unless a Virgin Atlantic flight was unavailable. These are the full-fare-paying passengers airlines crave.

I attribute the growth of Virgin Atlantic’s business service to a series of factors. The long unyielding dedication to excellent customer service has not been diminished by budget cuts. The Virgin frequent flier program has not been evicerated while others have. The financial downturn has limited corporate use of first class travel arrangements and Virgin’s Upper Class is as close as any business class comes to a first class service. And finally the melt-down at British Airlines’ Terminal 5 made an impact on many business fliers.

Other airlines that have focused on customer service are being rewarded as well. Southwest Airlines has announced slower growth, but more frequent flier benefits. It’s Companion Pass has been a big hit with business travelers. And to increase their share of business fliers, Southwest is making a special effort with advanced boarding of business travelers, free drinks and lots of plugs for computers and cell phones in the boarding areas.

It’s nice to see that a fanatical focus on customer service still yields quantifiable increases in traffic and profits.

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{ 1 comment… read it below or add one }

Richard August 26, 2008 at 6:54 am

For what it’s worth, the IFBT (In-Flight Beauty Treatment – i.e. the massage) was taken off Virgin planes a while back, which is a pity, but not a great loss. I would still choose to fly Virgin whenever feasible, whatever class I end up in, and I’m a British expat in Hong Kong. I normally upgrade using miles, but I’ve been known to kick in for a fare class bump to allow an upgrade, and I have paid outright for Upper Class once or twice.

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