Skift Forum: Premiumization Should Be Structural Strategy, Not a Product Upgrade
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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…
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- Skift FeedSkift 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…