Air France and KLM are joining the list of airlines that are offering “basic” business class fares. The way the airlines are going about it is quite interesting, though.
In this post:
New Air France & KLM Business Light fares
Air France and KLM have just rolled out a new “Business Light” fare bundle, complementing the existing Business Standard and Business Flex fares. Business Light fares come with two additional restrictions compared to Business Standard fares:
- You don’t receive lounge access
- You receive one free checked bag weighing up to 32kg, rather than two free checked bags
Elite status perks still apply on these fares, so if you have SkyTeam Elite Plus status you can still take advantage of lounge access and an extra checked bag, essentially avoiding these added restrictions. Note that those booking Business Light and Business Standard fares also don’t receive free seat selection, which was a recent change.
These new fares have been rolled out for travel as of April 25, 2023, and apply for travel from Europe to all intercontinental destinations, excluding North America, China, Vietnam, and Mauritius (presumably due to the partnerships that are in place in those regions, which would complicate offering these kinds of fares).
For the time being, it would appear that Business Light fares are €100 cheaper than Business Standard fares per direction of travel. For example, take the below Copenhagen to Dubai via Amsterdam fare on KLM, where Business Light costs $1,081, while Business Standard costs $1,190.
My take on Air France & KLM basic business class fares
Air France and KLM justify these new Business Light fares by explaining that this allows the airlines to “offer customized fares at the best price,” and give customers “more choice and control.” That’s the justification that all airlines use for “basic” fares.
In reality, the primary intent of these kinds of fares is to generate more revenue by getting consumers to “buy up” to higher fare bundles to avoid these restrictions. Generally when airlines introduce new “basic” fares, they don’t suddenly discount the previous cheapest fares, but rather the previous cheapest fares become the new “basic” fares.
What are my thoughts on these new Business Light fares from Air France and KLM? A few things come to mind:
- It’s interesting that this comes just weeks after the airlines introduced seat assignment fees on most business class fares, and that those fees aren’t just limited to Business Light fares, but also apply to Business Standard fares
- For SkyTeam Elite Plus passengers, there’s not much downside to these fares (unless you want to check a third bag), while for other passengers, it’s generally going to be a question of whether you’re willing to pay €100 for lounge access
- I think we’re going to see more and more airlines increasingly segment premium fares, given that business travel demand seems to have permanently shifted; while there are a lot more leisure travelers springing for business class, it’s not at the same fares as we saw from business travelers pre-pandemic
Bottom line
Air France and KLM have introduced new Business Light fares in most long haul markets, which cost an extra €100 each way. These fares don’t offer lounge access and come with just one checked bag, but if you have SkyTeam Elite Plus status, you can still take advantage of elite perks.
We’re seeing more and more airlines introduce “basic” business class fares, and it’s hard to argue that this is good for consumers. At least those from Air France and KLM aren’t the most punitive of these kinds of fares, and the pricing premium to avoid Business Light is mild… for now.
What do you make of these Air France and KLM Business Light fares?
(Tip of the hat to Levi)
Where KLM Business Light *does* work is for holders of KLM/AF Flying Blue Platinum cards, for whom seat selection at the time of booking, lounge access, and an extra 32kg checked bag are included in the Light fare. Am also seeing prices for segments in Business Light that are cheaper than Standard Plus for dates either side of the chosen (Light) day of travel, so it can work for those with some flexibility in their...
Where KLM Business Light *does* work is for holders of KLM/AF Flying Blue Platinum cards, for whom seat selection at the time of booking, lounge access, and an extra 32kg checked bag are included in the Light fare. Am also seeing prices for segments in Business Light that are cheaper than Standard Plus for dates either side of the chosen (Light) day of travel, so it can work for those with some flexibility in their schedule. The bottom line is, though, that lounge access and seat selection at the time of booking come in at around 300 euros per segment more than Business Light for anybody who doesn't fit into the presumably tiny group of individuals who hold a KLM/AF Platinum card and have a flexible travel schedule.
Lowcostization. I'd rather pay to an airline that does not fu**k in such a way their clients
i do agree with all the above j class light is a rip off no lounge no seat selection limited checked in bags not worth the difference with standard really but they have to aligne with competitors
for me i would not choose it
I can't imagine how complex these backend IT systems are getting with all these 'upgrades' and options. Better hope nothing fails....
yikes
i wont fly AF no more
SkyTeam and especially DL/AF/KL are doing everything possible to chase us out. For my Business travel, policies won’t allow me to book anything but Business light now (if lot economy on some routes) and while I’m not sure, I’m willing to bet that the MQD earnings ( I credit my flights to skymiles), will be lower than the usual 40% of distance (or 20% in the case of O fares). So simply… why bother fly...
SkyTeam and especially DL/AF/KL are doing everything possible to chase us out. For my Business travel, policies won’t allow me to book anything but Business light now (if lot economy on some routes) and while I’m not sure, I’m willing to bet that the MQD earnings ( I credit my flights to skymiles), will be lower than the usual 40% of distance (or 20% in the case of O fares). So simply… why bother fly with them. Luckily there are many options! Hopefully with Jet Blue & even some of the ME airlines, they still value and try to earn our business.
No thanks. Just doesn't make sense these lite fares and I'd never be interested with no seat selection + no lounge. Much rather pay that 100 more
Not a Great Way to TREAT their Customers!!!! Bad business model
Put it this way there is an existing business fare with lounge access seat assignments and lounge access , they simply introduced a lower “ light” fare. It may suit many people otherwise they wouldn’t.
It’s like saying I always buy a four pack of beans with salt and sugar for £4. The supermarket has now introduced a healthy version for £3 without salt and sugar, so I’m not going to buy the beans at all now.
That's not how this works out though.
They don't reduce the price at all. The ex salt and sugar one that no one wants is £4 and you now suddenly have to pay £4.50 for the one you actually want.
And then they insult your intelligence by claiming it's to lower prices and improve choice.
This is all a product of people wanting to work from home. Lower business travelers costing airlines so they will just have to find the profit elsewhere.
Well I'm sure they don't want to put you off completely so soon especially since their audience is business class vs economy. But I bet that a year from now depending on how this is received, business lite will have other things removed. This is clearly targeting miles business class flyers vs those actually dropping cash because that group generally view $100 like a restaurant tip. I don't oppose this separation but my brain is...
Well I'm sure they don't want to put you off completely so soon especially since their audience is business class vs economy. But I bet that a year from now depending on how this is received, business lite will have other things removed. This is clearly targeting miles business class flyers vs those actually dropping cash because that group generally view $100 like a restaurant tip. I don't oppose this separation but my brain is also telling me going forward this gives airlines more ways to screw over the customer.
As SkyTeam elite, I love the idea of unbundled fares. Will help me save $$$!
As a pricing professional, I can't take issue with segmenting fares and going to a "good, better, best" bundle. This is a pretty basic pricing practice to enhance profit and margins. For me personally, I would be tempted to go with the business lite.
I am flying Air France out of and back to ATL this summer. I am on award tickets and already booked, but if I were buying now, paying $100 for...
As a pricing professional, I can't take issue with segmenting fares and going to a "good, better, best" bundle. This is a pretty basic pricing practice to enhance profit and margins. For me personally, I would be tempted to go with the business lite.
I am flying Air France out of and back to ATL this summer. I am on award tickets and already booked, but if I were buying now, paying $100 for access to the Delta SkyClub in ATL would be a pretty steep ask. Accessing the Air France lounge at CDG might be a much more tempting quetstion. With Priority Plus, I can access the Club at ATL which is certainly not on par with the SkyClub but more than adequate at a savings of $100.
Also, I have no need and can't remember ever checking a second bag - Rick Steves would be appalled that I am taking a checked-sized bag to France! :). And as I replied to the earlier post about seat assignment, in business class, on most aircraft, I am not nearly as particular on which seat I get as I would be in economy with the risk of a middle seat looming.
Given all that, I think the case for a segmented bundle in business class is a very appealing option and I think that will be true for many people. As for whether they are pricing the lowest bundle at the current fare and going up from there, that is effectively a price increase and that comes down to what the market will bear. If the market won't bear it, you can expect fares to be adjusted. I find airline pricing to be perhaps the most interesting industry in our discipline - granted I am an avgeek and am biased! - but this case is an example of why it appeals to me so much.
It’s a huge turn off. What these geniuses don’t understand is that when booking business travel through an agency, no changes or upgrades can be made unless we go through these agencies. So while I might be tempted to pay the $100 (it will become much more, similar to how Delta changes the Premium Select pricing) I won’t be able to it through corporate or the agency and the airline won’t allow me either (tried...
It’s a huge turn off. What these geniuses don’t understand is that when booking business travel through an agency, no changes or upgrades can be made unless we go through these agencies. So while I might be tempted to pay the $100 (it will become much more, similar to how Delta changes the Premium Select pricing) I won’t be able to it through corporate or the agency and the airline won’t allow me either (tried this today)!
So bottom line, not gonna bother try to fly SkyTeam next time I’m booking on concur and come across “business light”.
@Ben Do you think that moving forwards, business class award tickets will only count as "Basic"?
Business class without seat selection? No thanks !
Don't care about lounge access and I'm NEVER checked two suitcases in 100 trans atlantic flights. So I'm all for this.
Was it Qatar that started all this?
We will see this happen more across other airlines. Business travel is not coming back to 2019 levels and the airlines are relying on "premium leisure" to fill these cabins, and that is not sustainable. Watch for larger Premium Economy cabins and smaller Business Class cabins next.
Oneworld status with free seat selection remains by far the best alliance. As long as that remains, I will remain Oneworld loyal customer and eternal Emerald status holder. *A gold and SkyTeam do not compare.
Lack of lounge is not a factor, get it with status anyway. With unbundling of seat assignment from fare these light C fares are becoming a worry. Just a matter of time until C-light has no checked luggage at all...
Oneworld status with free seat selection remains by far the best alliance. As long as that remains, I will remain Oneworld loyal customer and eternal Emerald status holder. *A gold and SkyTeam do not compare.
Lack of lounge is not a factor, get it with status anyway. With unbundling of seat assignment from fare these light C fares are becoming a worry. Just a matter of time until C-light has no checked luggage at all and award ticket book you into C-light instead of C-flex. Inevitable but somehow expected in near future. I hope at least award tickets remain C-flex for a long time.
If my memory serves, QR was the first airline to introduce basic business class (it's since been copied by EK and AY and now AFKL). You're at least as likely to encounter basic business class on oneworld as on SkyTeam, and given QR's influence on oneworld and IAG, it's a matter of time before BA (which was the first to charge for seat assignment in business, let's not forget) introduces basic business, at which point QR+BA+IB+AY is basically the core of OW.
That's my point. As OW Emerald (7days pre flight as Sapphire, too) you don't care. The other alliances do not offer such alliance wide status perks of free seats. Paid seat assignment is here and spreading to other airlines. Not paying for it with OW with status is a huge benefit. Without any status, you are screwed on that front with more airlines of course, my point is you are screwed as *A Gold or SkyPlus whatever-level.
Seat assignment has nothing to do with this: it was already unbundled.
Business light fares are absolute garbage. They arent offering choice, theyre offering a reduction in quality under the mask of being cheaper, except it wont be cheaper, the price will just go up and then it will be normal. Then sale fares will only ever be the light ticket, then points bookings will be light fares.
Yup agree. The really bad thing also is that it will give you a lot of false prices when you are on say Google flights because these alleged cheap fares will flood your search results. And I am willing to bet that while it's a difference of $100 in this example, nothing prevents them from making this dynamic. I'm sure this will eventually get more granular like no meals, no pillows and blankets, boarding with economy plus etc.
I don't want to defend AFKLM but....
- Unlike BA and LH, AFKLM still gives free bags to elite holders on light fares. No exceptions.
- Unlike US Airlines, AFKLM still gives you status credit (XP) in basic economy. A business basic or standard fair will still give you the same status points.
Given how easy it is to be Silver in the programme, especially for Americans, I think this is a...
I don't want to defend AFKLM but....
- Unlike BA and LH, AFKLM still gives free bags to elite holders on light fares. No exceptions.
- Unlike US Airlines, AFKLM still gives you status credit (XP) in basic economy. A business basic or standard fair will still give you the same status points.
Given how easy it is to be Silver in the programme, especially for Americans, I think this is a minor issue and just a method of extracting more revenue from less frequent flyers. As Flying Blue Platinum the difference is basically 0 for me in Business and minimal in Premium Eco.
If you have STE+ and cancel less than a third of your trips (and don't need a third checked bag), this is like an elite discount (on top of free seat selection).
Oh no, you have fallen for their spiel.
They have not introduced a lower offering with a lower fare - they have introduced a higher fare for the previous offering and the previous fare for a lower offering.
For the return leg you still pay the extra ca. €100 meaning about €200 more. You also get less miles than on the standard business class fare. The €300 rebooking fee is what i find rather steep.
I don't like this but i guess it's only a matter of time till the LH Group and IAG introduce these fares.
Another bad KLM plan invented by beancounters.... When I save up for a leisure business class ticket I have to pay extra to be sure to sit next to my wife? And we have to wait in the crowded terminal at Schiphol when paying 2000 euro or more... Business class fares are already very expensive when buying for personal use, I'm not keen on paying more for these "extra's". We are diverting to Lufthansa and...
Another bad KLM plan invented by beancounters.... When I save up for a leisure business class ticket I have to pay extra to be sure to sit next to my wife? And we have to wait in the crowded terminal at Schiphol when paying 2000 euro or more... Business class fares are already very expensive when buying for personal use, I'm not keen on paying more for these "extra's". We are diverting to Lufthansa and British Airways business class for sure...And many of people will do the same.
This doesn't go far enough, they need to start doing business "sharing is caring"...where you don't get lounge access, you don't get priority, you don't get extra luggage or even the business class seats. BUT...BUT...you get a nice email from the CEO saying that the extra you paid was "shared" with the CEO and the executive team.
They can also explore business class seats where you can sit with 2 other random strangers, food...
This doesn't go far enough, they need to start doing business "sharing is caring"...where you don't get lounge access, you don't get priority, you don't get extra luggage or even the business class seats. BUT...BUT...you get a nice email from the CEO saying that the extra you paid was "shared" with the CEO and the executive team.
They can also explore business class seats where you can sit with 2 other random strangers, food portions are for 1 but who needs one WHOLE meal right...we're fat and overweight as it is.
Unbundled business class fares is one concept I got genuinely excited about when it hit the industry. These days (and KLM is the most recent example), it's mostly a disingenuous ploy (some would say scam) to offer less product for.....the same price or more!! Yup...no thanks.
What did you think it would be besides a money-grab?
One seat taking up that much space on a plane is the expensive part; that’s hard to honesty unbundle.
Umm...a well thought out strategy (you know, like what other business occasionally do) to entice more pax thereby generating more income? I don't presume you know 'good' business practice? Don't feel bad, not everyone does.
Trusting airlines to make honest, positive business practices/strategies does not demonstrate a good sense of business on your part.
NOOOOOO. i hate unbundled premium fares now.
had they served their original purpose of "cheaper" fares to experience J class, I'd jump on the ship right away. but no, this is one of their weird tactics to sell a downsized J class experience at the same price as whatever their lowest Business Class tier right now sells for.