The first class products available across various airlines currently represent the best onboard experiences available within commercial aviation. While the number of operators that offer first class has been decreasing for over a decade, the market segment still remains competitive, attracting a small portion of flying customers.

Naturally, to reflect this, these cabins are also some of the most expensive on the market, and often, the airline’s profits lie in selling out this cabin, along with other premium cabins it offers onboard, rather than the considerably larger economy cabin. In this article, we will consider five different factors that influence how the airline prices its first class product.

Prices Increase With Flight Duration

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As stated above, first class fares are usually the most expensive fares offered by the airline on a particular route. With that being said, perhaps one of the most obvious factors that determines the price range for a seat in the cabin is the length of the flight. Generally, the longer a flight is, the more expensive the fares are.

This is because the longer the flight, the higher the operating costs, but also the higher service costs. Longer flights would mean passengers would cost more in terms of meals and drinks provided, any additional amenities, and so on. While this factor might be less recognizable when considering regional and short-haul flights, it becomes very evident once passengers start looking for destinations further from their point of departure.

With that being said, it is worth noting that this is not always the case, as there are several other factors that could cause the airline to increase its first class fares regardless of the distance of the actual flight. These include factors such as how far in advance of the departure an itinerary is being viewed, the demand or the number of seats left within the cabin, along with the actual onboard product, and the aircraft being used.

What You See Is Not What Many Pay

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The vast majority of passengers would generally not bother looking at the first class fares, and those who do, as stated above, would find these fares to be generally the highest fares the airline offers on a particular route. Despite this, many first class passengers generally do not pay as much as the marketed fare when flying these cabins.

Airlines generally have contracts with corporate organizations, whose staff travel extensively, and depending on the organization, this can include traveling in premium cabins such as business class and first class. By forming a contract with an airline, the staff of these organizations get access to special rates, which allow for company-wide cost savings on travel.

It is also common for passengers traveling under corporate contracts to have the option to change their travel itinerary at the last minute, without additional charges, to best suit their business needs and flexible work schedules. Furthermore, by exclusively flying with a single airline, the company and the staff can also take advantage of the airline’s loyalty program features. On the other hand, the contract provides the airline with an assurance of client loyalty.

It also gives a steady and predictable stream of high-yield travel bookings, along with predictability on an approximate number of premium cabin seat sales over a period of time. While the publicly offered higher fares might mean the airline potentially misses out on a very limited number of high-yield leisure travel bookings, the carrier can offer a certain level of exclusivity for its corporate clients and other passengers who are willing to pay the full marketed fares.

First Class Prices Are Also Bracketed

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Much like the prices offered on economy and business cabins, some airlines offer multiple price brackets for their first class seats as well. While this does offer flexibility for passengers, it is worth noting that different airlines offer different numbers of price brackets within their booking engines.

For a better understanding, the following table displays data on the number of price brackets available on four different airlines that offer first class products on board their aircraft. It also shows information on price ranges offered (these are not fare comparisons).

The range of prices will allow passengers to book fares that best suit them and their travel needs. It is worth noting that airlines often also offer an additional bracket, which is applicable for flights with reward seats available in first class, which would allow passengers to redeem their miles, along with tax, which has to be paid in cash. However, the availability of these seats is under the airline’s sole discretion.

Last Minute Prices & Passenger Demand

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While it is true that first class seats are the most expensive seats in flight, there are certain ways in which passengers can get seats at a cheaper fare. There is the obvious early booking method, where seats generally tend to be cheaper, the earlier a flight itinerary is looked at. On the other end of the spectrum, if there are seats available within the first class cabin, on the day of the flight or shortly before departure, this is also an opportunity for passengers to get first class seats at a discount, with some caveats.

The availability of discounted upgrades closer to the date of departure or on the day is entirely dependent on the airline’s revenue management algorithm, which determines if it is more cost-effective for the airline to sell the seat at a discount rather than fly empty. Furthermore, the discounted upgrades to first class will typically only be eligible for passengers holding a business class ticket, and the algorithm will determine the price of the upgrade.

With that being said, if the first class cabin on a route is filling up quickly, or the airline’s historic load factor data for a route shows strong demand in first class, this can also result in prices rising for seats within the cabin, especially when looking at the itinerary closer to date. Furthermore, the origin and destination pairing also plays a role in influencing the ticket fares, because some routes see higher first-class demand than others. The table above details some of Emirates first class offerings on various routes.

As stated initially, the distance and duration do not always equate to higher fares, and the table above proves this. While Dubai to Dublin is a longer flight than Dubai to London, the latter has historically seen significantly higher demand, which is why the airline considers it a flagship route. Similarly, Emirates flights to Sydney and Auckland are priced similarly, with only a difference of $23.81, despite the latter being a longer flight, while the airline’s flight to Christchurch via Sydney is nearly $600 cheaper than the flight to Sydney itself.

Aircraft & Onboard Products Also Play A Role

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This is another factor that can influence ticket pricing, but it is not one that is set in stone, as different airlines have different policies. This is again upon the airline’s discretion, and some operators might choose not to differentiate fares depending on the aircraft type and the onboard product. But why does it matter?

Due to the competitive nature of the airline industry, airlines constantly evolve their fleet with newer aircraft types, often featuring new onboard products. Although in recent years, many airlines have been moving away from offering first class products, the carriers that do offer it are constantly reinventing their cabins. As such, sometimes a single airline can offer a significantly varying first class experience.

Perhaps this is most evident on carriers such as Etihad Airways and Singapore Airlines, where the carriers’ first class inventory is limited to only certain aircraft within their fleet. Despite this, the first class products onboard each airline’s A380 fleet are significantly different and elevated than the first class product on their other aircraft, such as the Boeing 777-300ER or the Boeing 787-9.

When considering Etihad’s offering to London Heathrow Airport, the carrier prices its A380 first class at a slightly higher rate than first class on its Dreamliners. With that being said, the airline does charge further for passengers flying the airline’s first class onboard its A380s and wish to book the single Residence suite. This is a one-of-a-kind three-roomed first class product in the sky, and the airline sells it as an upgrade to first class.