Cabinalysis: Sometimes a downgrade is a smart move (there, we said it)
In 1992, on an EVA Air flight, something extraordinary occurred. Or was it a Virgin Atlantic flight?
For the first time, passengers took their seats in a cabin that was in between Business Class and economy. EVA called it Deluxe Economy. Virgin called it Mid Class. Now, 29 years later, we all know it as Premium Economy.
Yes, which airline got there first is an ongoing dispute. Success has many fathers, as they say. But it could have been an orphaned failure. I mean, if your Business Class flyers disembarked en masse to that cheaper new cabin, it would be a disaster.
But something else happened. Economy sufferers moved up instead, and the rest is history. These days, the big three U.S. airlines alone have more than 90 flights with Premium Economy seats to Europe.
Business One Way, Premium Economy the Other
In February we wrote about the strategy of mixing up cabins (Horses for Courses) each way on a round-trip flight, and we got a lot of positive feedback about it. In our May report, Mixed Cabin Part II: The One Step Above Cattle Class, we looked at doing the “cabin shuffle,” meaning using the extra legroom seat for the day flight and Business Class or Premium Economy for the overnight flight. This is ideal for elite status members with American, Delta, and United, who get the extra legroom benefit for free.
Here’s the gist of it: Why fork over money for a Business Class seat during a daytime flight? Sure there are many other added comforts of being in Business Class, but the biggest benefit is a lie-flat seat for an overnight flight. We argued that budget-conscience travelers should save that luxury for the night leg of the trip, and fly Premium Economy during the day. Sure, this doesn’t apply to everyone, but if your budget is very tight and not arriving disheveled is a priority, then this is for you.
It’s all about being smart with your money. Why buy an expensive 4WD vehicle when you only drive in the city? Why pay for an all-you-can-eat buffet when you’re not that hungry?
In other words, we’re defining an upgrade as...
An improvement in the overall value of an opportunity whereby its benefits exceed any drawbacks.
When a Downgrade (in Comfort)
Results in an Upgrade (in Overall Value)
Some think a move from Business Class to Premium Economy is a downgrade, and it is if you only look at it from the comfort perspective. But that’s a one-dimensional view, and I’ll show you why – with an example.
On April 12, a round-trip between Charlotte and Frankfurt in Premium Economy costs $1,653 (at time of writing), while a round-trip in Business Class is $2,383. The mixed-class fare is $2,018.
Good deal: Upgrade from a round-trip in Premium Economy to a mixed-class fare with Premium Economy one way and Business Class (and a comfy bed) the other for just $365, and arrive the next morning well-rested.
Bad deal: Downgrading from Business Class round-trip to the mixed-cabin trip and only saving $365.
On March 7, on the other hand, a round-trip in Premium Economy is $1,543, while a round-trip in Business Class is $3,983. The mixed class fare is $2,763.
Bad deal: Upgrading from a round-trip in Premium Economy fare to the mixed cabin round-trip and paying $1,220. Ouch.
Good deal: SAVING $1,220 for “downgrading” from Business round-trip to Premium Economy for the return trip leg that’s during the day (when you don’t even sleep) if you’re budget-conscious. See the screenshot below.
FCF Talks About Downgrading? Is the World Upside Down?!
Yes, I think
A big mistake any traveler can make is not thinking outside the cabin when an opportunity arises.
Mixing Cabins. A Simple Fare Formula
To determine the cost for mixing cabins, simply add the Business Class seat cost to the Premium Economy seat cost and divide by two. While this is
, it will be close, sometimes within a hundred dollars or so.
So, taking this mixed-class idea a step further, Business Class flyers have the option of saving a lot when fares are high, and conversely, Premium Economy flyers can get a smart upgrade to Business Class when fares are low.
Let’s look at another example: Dallas to London versus Dallas to Paris for travel in April on American Airlines.
Dallas to London Example
UPGRADE DEAL: A round-trip in Premium Economy is $1,817, but if you travel outbound in Business Class and return in Premium Economy, the fare is $2,150. That’s a reasonable $333 to upgrade one-way to Business Class.
NO DEAL: A round-trip in Business Class is $2,575, but if you travel outbound in Business and return in Premium Economy, the fare is $2,150. I mean, talking me out of a comfy Business Class seat across the Atlantic to save all of $425? Er, no thanks.
Divide and conquer.
Dallas to Paris Example
NO DEAL: A round-trip in Premium Economy costs $1,817, but travel outbound in Business and return in Premium Economy and the fare is $3,287. That means an upgrade to Business, one-way costs $1,470.
NO DEAL: Round-trip in Business is $3,646, but if you downgrade and travel outbound in Business and return in Premium Economy, the fare is $3,287, a savings of only $359.
There you have it... more ways to think about squeezing more value from your next trip.