Lu believes that along with frequency of flights the quality of the product is the key determiner in the success of an airlines' business class. "The product itself is the most important thing," he says. "But it has to be the best product for the same money. The business traveller is very loyal, so in addition to a decent service, a loyalty programme is very important in building a customer base."
In the last few years, the main focus for airlines has been the US market. "Everybody is chasing the American market, and every airline is trying to get a piece of it," Lu says. "It still represents the biggest area. Unlike local firms, American corporates are still doing well, so the scope for travelling business class is still there. In the States, people yell if they aren't given business class: They threaten to not travel. Here it is different."
Tough job
Companies in Hong Kong, Lu believes, are not becoming any more generous with their travel budgets, although he notices a slight improvement in Thailand. "The Thai economy is picking up, so business travel is picking up slightly. Manila is the same as [it was] last year."
Another trend Lu identifies is the business traveller's move from first to business class, as companies in Asia attempt to control budgets, and as the service and comfort levels in business class increase. "There is now not as much need for a first class. The only real difference is that the food is better - and you may be able to lie down. Some first-class seats only have a 50-inch pitch, whereas some airlines have business class seats with 65-inch pitch. It makes a difference.
The airlines will continue to push business travel, simply for the yield it provides. Business travellers can expect better service, competitive pricing and the ever-present incentive of frequent-flyer miles. "If you compare the yield on an economy ticket during a promotion and a business-class seat, you are looking at four to five times the return. So airlines will always promote business travel," says Lu.