“YOLO” baby boomers populating “pointy end” of airlines post-pandemic

by TOMASZ SNIEDZIEWSKI  

June 1st 2023

Print Friendly

The International Air Transport Association (IATA) recently reported travel in first and business class has recovered faster than total passenger traffic, reaching 86% of 2019 levels in February compared with 81% overall air traffic demand. Read More » Historically, corporate clients have been the mainstay of the premium cabin market, but this is no longer so – at least for now.

Big spending leisure travelers are indulging in “revenge flying”, trend analysts proffer. Also, other airline customers are traveling for “bleisure” combining business with leisure often accompanied by their spouses or partners.

Reportedly, the pandemic has created a shift towards the “You Only Live Once” or “YOLO” mentality among the affluent when they travel. YOLOs are now more ready to purchase luxury products and experiences, including premium air fares. Some airlines report bookings from leisure travelers have “almost completely compensated” for the drop in corporate airline ticket sales.

Many Asia-Pacific airlines are focusing on meeting the needs of this new clientele. YOLO and Bleisure passengers are more demanding than corporate travelers, expecting more than a comfortable space to work or sleep during a red-eye flight.

In Taiwan, where traditional culture associates important family and social events with sharing exquisite meals, all three major carriers, China Airlines, EVA Airways and STARLUX Airlines offer signature dishes to their premium passengers prepared in partnership with renowned Michelin star restaurants and chefs.

Focusing more on “soft products”, such as food or inflight entertainment, is critical to winning the hearts of deep-pocketed leisure travelers, these airlines believe.

But the corporate traveler is not being ignored, with several airlines investing in the “hard product” of business and first class cabins.

Recently, Qantas Airways and Etihad Airways announced major upgrades of their premium cabins. At Japan Airlines, a new first class will be arriving in the carrier’s premium cabins from the northern hemisphere winter.

At All Nippon Airways, premium passengers will soon be travelling again in cabins with interiors designed by master architect Kengo Kuma. Nigel Goode, chair of aircraft interior designers, PriestmanGoode, told the Financial Times recently demand from airlines is “really picking up” and carriers also are looking at cabin re-designs that appeal to a younger generation of travelers.

Some airlines are betting leisure travel in the premium cabin is here to stay, believing that once passengers experience luxury flying they will find it difficult to return to the back of the bus. Other forecasters claim it is not a sustainable trend. Factors threatening the permanence of Bleisure demand, they predict, are over-capacity as a result of massive aircraft orders, inflation’s erosion of household disposable income and concerns about carbon emissions from flying.