What direction is first-class and premium travel heading in? Emotional experiences, pristine service, cutting-edge yet flexible technology, and moments that create lasting memories. This was the conclusion that leaders from Panasonic Avionics, Recaro, Schott, and Tangerine came to during the AIX Virtual Roundtable, held in partnership with Inflight Magazine. Full video at the bottom of the article.

The session gathered Andrew Masson, Vice President of Product & Portfolio Management at Panasonic Avionics; Stefan Berroth, Senior Product Manager at Recaro; Klaus Portmanns, Global Director of Sales Aviation at Schott; and Dan Flashman, Creative Director at Tangerine, to discuss the evolving landscape of first-class and premium travel and where it’s heading in the coming years, especially as passenger demand for comfort, privacy, and luxury continues to rise. The discussion explored how modern interior and design elements, such as tones, lighting, seating, In-Flight Entertainment and Connectivity (IFEC) and materials, can shape passengers’ perceptions and enhance the overall experience.

Panasonic Avionics’ Masson highlighted that consumer expectations have risen, especially in recent years. He said: “Expanding classes now have higher expectations, and business and premium class tickets have become more affordable, with airlines offering better incentives. Today, business class seats are often as good as, or better than, first class from just a few years ago, featuring lie-flat beds, improved entertainment, and better food. There’s also an increase in both business and leisure travel, showing that business travel isn’t fading as once predicted. In fact, there’s a greater realisation of the importance of in-person experiences.”

Adding to this, Flashman noted, “The shift is towards ‘memorable experiences’ rather than simply getting to a destination. Premium travel isn’t just about arriving; it’s about the journey itself. Changing demographics, like the rise of the middle class in China and India, and ageing populations, are all influencing the industry.” Berroth also added that “Business class products are being upgraded more and more, with features once exclusive to first class. Premium economy is evolving too, now offering what was once an early business class experience. Additionally, business travel and loyalty programs have driven demand.”

Meanwhile, Portmanns said: “After experiencing premium economy or business class, passengers often stick with these options for future travels. Loyalty programs and the miles or points they earn make them more willing to use rewards for upgrades, contributing to the demand for premium class travel.”

In terms of regional differences in premium travel, the offerings are clear, yet the disparities between markets are both widening and narrowing in different ways… While North America leads in sheer volume, the Middle East and Asia set the trends for premium travel, each region contributing to a unique mix of volume and experience in the global market.

Masson explained, “In North America, the market is dominated by the big three–American Airlines, Delta, and United Airlines. They’re currently in an arms race when it comes to cabin experience, with a focus on seating and in-flight entertainment. Canadian airlines are similar in this regard, offering a comparable experience.”

He continued: “In Europe, the emphasis on low-cost carriers, is leading to a different regional experience compared to the U.S. Meanwhile, the Middle East remains the leader in pushing ultra-premium offerings.”

Berroth added to this, “In Europe, especially for domestic flights, business class often means an economy seat with a blocked middle, given the shorter distances. In contrast, domestic flights in Asia or the U.S. tend to be longer, offering a more premium experience. Across these regions, we see different priorities emerging, like accessibility and seat space in the Americas, and layout innovation in Europe.”

He further noted, “In Asia and the Middle East, premium materials and finishes play a huge role, especially in creating a strong first impression.” This is echoed by Portmanns, who observed that “the best airlines, particularly from the Middle East and Asia, set trends that others follow. We see more lighting per seat in Asia than in Europe or North America. As [Masson] mentioned, the front-runners set new standards, and airlines around the world adapt to remain competitive.”

So, what region is seeing the most premium or first-class travel? The panelists all agreed that it varies, depending on the perspective, whether in terms of volume or experience. Masson explained, “North America has the largest volume of flights, with its huge fleets from major carriers. However, in terms of premium experience, the Middle East stands out, with carriers that set the bar for quality and luxury. These Middle Eastern airlines push the entire industry forward, creating the pinnacle of premium travel, which raises standards globally.”

Portmanns said, “North America dominates in terms of volume, but the trendsetters are in the Middle East and Asia, especially when it comes to growth and innovation in premium offerings.” Berroth also shared similar views, noting, “According to Airbus and Boeing forecasts, Asia Pacific is expected to drive significant growth in the coming years, alongside North America and China. In terms of first class, Asia Pacific and the Middle East lead, but for business class, North America has the highest volumes, both domestically and internationally.”

The green dilemma

When discussing some of the biggest hurdles in creating future premium cabins, the panellists agreed that sustainability presents both a challenge and an opportunity. Masson explained, “It’s a good challenge, especially when it comes to safety, but meeting those standards is becoming harder. For example, when we switched to OLED screens instead of LCD, one reason was the difficulty of passing head impact requirements with glass. We had to move to a more expensive technology, but it turned out to be much lighter as well. Sustainability, however, is an opportunity as it allows us to explore lightweight and innovative materials that contribute to a more sustainable future.”

Flashman echoed this, but also highlighted how sustainability might change the way people view travel itself. “I am interested to see how sustainability will impact the way we travel. Will it make us value each journey more, turning it into something special rather than just getting from A to B?” he said.

Certification remains a challenge for the industry, particularly when it comes to sustainable materials. Berroth noted, “The cost of developing materials that can pass safety and sustainability tests, whether it’s for fabrics, dress covers, or recyclable materials, is significant. Right now, sustainable aviation fuel, for example, is much more expensive. The industry must invest in making these materials commercially viable to push them into the mass market.”

Beyond sustainability, Masson highlighted the challenge of maintaining a consistent passenger experience across fleets of different aircraft types and ages. “One of our biggest challenges is ensuring that airlines with both new and older aircraft can provide a similar passenger experience. Newer IFE systems with high-definition screens and faster computing power offer more applications and better video quality, but airlines don’t want a vastly different experience across their fleet. The issue arises when retrofitting older systems… How do we bring those up to the technological level of newer ones? The rapid pace of technological advancement makes it difficult to upgrade 15 or 20-year-old systems to match today’s capabilities.”

“Collaboration is absolutely key”

Looking ahead at the future of premium and first-class travel, the panellists unanimously agreed that collaboration will be crucial. Masson highlighted the growing need for early integration, stating, “As we move towards large format curved screens and more integrated technology in the seat and suite, we need earlier collaboration. The ergonomics of headphone-less audio must be seamless, and with airlines demanding quicker turnarounds, designers, vendors, and airlines must work together from the start.”

Portmanns echoed Masson’s sentiment of earlier integration: “Business and first-class seats have become masterpieces of engineering, and to achieve such high-quality products, integration needs to happen as early as possible. Sometimes, we get involved late and discover issues like lack of space or electricity, and then we have to scramble to resolve them.” He continued: “The earlier everyone is involved, the easier it is to integrate, but it still remains a complicated process. Collaboration is absolutely key.”

Flashman emphasised that future premium travel will be focused on more personalised experiences.

“People are looking for more than just a seat; they want an emotional experience that creates memories. Airlines will create more differentiated offerings, with flexible spaces that adapt to solo or group travel. Technology will also enable better service, helping crews anticipate passenger needs.”

As the session closed, one thing was abundantly clear: despite economic fluctuations, rising costs, and evolving passenger expectations, first-class and premium travel are here to stay. In fact, demand is only growing, continuously raising the standards and quality of each class. Perhaps, as this evolution continues, today’s business class may one day become the new standard economy.

Perhaps, as this evolution continues, today’s business class may one day become the new standard economy.

“We always hear first class is going away because business class has become so good, but then an airline introduces incredible suites, sparking a new arms race,” said Masson. “I think ultra-premium airlines will keep first class alive for the foreseeable future.”

Watch the full AIX Virtual Roundtable recording, or visit Inflight Magazine.

Aircraft Interiors Expo (AIX) will take place in Halls B1-B7 at the Hamburg Messe, Germany, from 8-10 April 2025. The event will be co-located with the World Travel Catering & Onboard Services Expo (WTCE) in Halls A1 and A4, following the Passenger Experience Conference (PEC) on 7 April. An AIX badge allows attendees free access to WTCE across the 3 show days. For more information or to register for 2025, visit the website here.