The data from the flagship SME division of Flight Centre Travel Group shows premium economy bookings increased 35 per cent year-on-year in the March 2025 quarter, despite average international return-airfares in the cabin class rising nine per cent during the same period.

Despite these price increases, premium economy has emerged as an attractive value option compared to the steeper increases seen in first-class and business-class fares.

“Many organisations are recalibrating value, balancing comfort, productivity and employee wellbeing against price,” says Tom Walley, global managing director at Corporate Traveller.

“Premium economy is increasingly seen as the sweet spot for long-haul travel.”

Despite the popularity of this seating class, a Corporate Traveller survey of its travel advisors found most believe premium economy offerings could still improve.

The most requested upgrades include access to business-class lounges, greater seating width, deeper seat reclines, improved privacy between passengers, and additional legroom.

“Benefits that focus on genuine comfort, restfulness and not just priority boarding or meal upgrades are what today’s travellers value most,” says Walley.

“Travellers are willing to pay a premium for a better experience that allows them to arrive refreshed, ready to do business and maximise the return on their travel investment.”

Photo at top: iStock/dima_sidelnikov.