Skift Forum: Premiumization Should Be Structural Strategy, Not a Product Upgrade
At Skift Global Forum, Air Canada Chief Commercial Officer Mark Galardo and ZS Managing Partner Kunal Shah said premiumization should be a structural company strategy rather than layered on top of existing operations. Galardo said premium revenue share at Air Canada grew from about 20% a decade ago to 30% today, with a target of 35% by end of decade. Shah said the industry too often equates premium with upscale, but midscale and economy properties can also capture value through pricing and personalization, and premium travelers prefer digital-first experiences. Galardo said premium demand is directly correlated to the health of the economy and strength of equity markets, and warned against…
Impact and considerations
Premium revenue share is now a key variable in airline profitability; Air Canada's rise from 20% to 30% with a 35% target shows network and fleet investment is being driven by premium demand signals. But Galardo noted premium demand is directly correlated to equity markets and the macro economy, so companies treating…
Key points
- Air Canada CCO Galardo said premium revenue share grew from about 20% a decade ago to 30% today, with a target of 35% by end of decade.
- ZS Managing Partner Shah said premium strategy cannot just be layered on top of existing operations; it must be infused into how the business operates.
- Shah said the industry too often equates premium with upscale, but midscale and economy properties can capture significant value through pricing and personalization.
- Shah said premium travelers actually prefer digital-first experiences over human interaction unless they need help.
- Galardo said Air Canada flies nonstop from Montreal to Sicily and is the only carrier with nonstop service from North America to Thailand, routes that only work because of premium demand.
- Galardo warned against moving too fast, citing many cautionary tales of airlines that flipped the pendulum too quickly.
Sources and time
- Primary source
- Skift
- Other sources
- 0
- First source publication
- 25 Sept 2026, 22:18
- Page published
- 25 Sept 2026, 22:54
- Last updated
- 25 Sept 2026, 22:18
- Original links
- Skift Feed：Beyond the Upgrade: Building a Premium Strategy That Actually Works (opens in a new tab)Primary source · en · Published 25 Sept 2026, 22:18