First Class Cabin Bonanza: $1,250 Round-trip To Europe?

Where to get Business Class for as low as $1,100, a cheat sheet forgetting free “In-Class Upgrades,” and more…

Home for the holidays? Not on your life. Thanks giving and Christmas-New Year are among our favorite times to travel to Europe because it’s the season when airlines slash premium cabin fares.

This year that’s especially true for First Class, which can be had for as low as $1,993 round-trip. Business Class is going for as low as $1,540—and both prices include taxes and fees.

Welcome to the New Holiday Fare Paradigm

First Class fares are at least $800 lower (47%) and Business Class at least $200 lower than last year. If you figure in what FCF calls the “Mileage Value Offset (MVO),” meaning the value of the miles you receive for the flight, prices mentioned above drop to $1,250 for First Class and $1,100 for Business Class.

Here’s what we’ll cover in this piece so you can jump on what’s relevant to you:

• When to go all out and buy First Class and when to stick with Business Class.
• How to get one of the best Low-cost Class-of-Service Upgrades (CSUs) for only $150.
• How to get Free Intra Class Upgrades (ICUs), meaning “a better” Business Class seat—than the unsuspecting might otherwise get.
• Is paying with miles a wiser than paying with cash?

Why Travel to Europe During the Holidays?

• It’s far less crowded than in summer. Hotel room and restaurant reservations are easier to get, and lines are shorter at major cultural attractions.
• The Euro has fallen against the dollar. As we went to press, the exchange rate was about E1 = $1.22, and many experts were predicting that the Euro will decline further.
• The weather is more conducive to travel, especially in the south. True, you’ll encounter some gray skies, but that’s better than searing heat.
• Europe is more itself in low season (my favorite reason). That’s especially true of cities such as Florence, London, Paris and Venice, which take on a different character during the summer tourist onslaught.
• Many hotels also offer great promotional rates during the winter months.

Promotional holiday premium fares are not only offered to western Europe from major U.S. cities, but also to such destinations as Athens, Istanbul, Moscow, and St. Peters burg, and are available for smaller U.S. departure cities such as Boise, Monterrey, and Reno.

Maintain Perspective: Consider the Net Cost of the Fare—as Well as the Upgrade

Once you add in the “Mileage Value Offset (MVO),” First Class promotional fares actually drop to $1,250, assuming you plan to use the miles in the future.

The “Net Upgrade Cost” (NUC) from Business to First is only $150, easily the best NUC upgrade on the planet.

While other analysts might be covering holiday Business Class fares—which don’t get me wrong, are a good bargain—the real story this year is First Class holiday fares.

The lowest holiday First Class fares are being offered by four major airlines: American—the first time in a few years it has offered international promo First Class fares for holiday travel—Lufthansa, SWISS, and United.

If you’ve ever considered going all out, this is the time to do it. For example, New York-London is about $11,000 on British Airways versus United’s amazing Thanksgiving deal.

[aside headline="What About Premium Economy Holiday Fares" alignment="alignright" width="half" headline_size="default"]No deal here because during the holidays, demand for the seats is high, as is economy. Business Class is a much better bargain, even if it costs more. For example, New York- Paris in Premium Economy on Air France is about $1,400, while Business Class is only $300 more. This is no time to think about PE.[/aside]

The small bit of bad news is that British Airways isn’t playing along and probably won’t, as deeply discounting First Class is not in the carrier’s DNA. Air France, on the other hand, has come out with its own special holiday fares, offering up to 70% off on First Class travel at Thanksgiving and Christmas (about $4,100 on New York-London versus Air France’s normal fare of about $13,500).

The best First Class deal—and the best one we’ve seen in 16 years of examining premium airfares under the microscope—is on United. When you figure in the value of miles earned in First Class, 250% of the miles flown.

United charges $2,000 New York-London. The 19,524 award miles you earn have a value of about $750, the cost of buying them. Most premium travelers would value them much higher, so you can personalize the net cost based on how you value miles. Subtracting the value of the miles you’ll earn from the fare yields a net cash cost of $1,250, a savings of 88% versus United’s normal First Class of $11,000—and only $150 more than Business Class. You can’t even fly to Hawaii from New York in First Class for that amount, and even if you could, you’d be getting a domestic, not an international, First Class seat.

If you’re a United 1K elite, you also earn a 100% Premier bonus—7,810 award miles, valued at $300—which reduces the First Class ticket net cost to $950. United Members also earn up to 11,000 Elite Qualifying Miles (EQMs), which could be almost half the number you need to retain elite status. So, not only might you look at this as “First Class for only $950,” but you also make a big jump towards elite status.

The charts below provides representative examples of holiday First Class fares from the U.S. to Europe on American, Lufthansa, SWISS, and United.

Thanksgiving Travel: Sample Low R/T First Class Fares*

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Christmas Travel: Sample Low R/T First Class Fares*

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What About Business Class?

Almost all of the major international carriers, except British Airways and Iberia, are offering low Business Class fares during the holidays. On United from New York to London, the Thanksgiving fare is $1,500 (including taxes) versus $3,600 post-holiday, a savings of $2,100 (58%). You will also earn 10,398 award miles, which cost about $375, yielding a real “net cost” of $1,125, a savings of 69%.

See the charts below for representative examples of holiday Business Class fares for most major airlines including American, Delta, Lufthansa, United, and Virgin Atlantic. Also please check FCF’s newsroom for alerts with more fares.

Thanksgiving Travel: Sample Low R/T Business Class Fares*

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Christmas Travel: Sample Low R/T Business Class Fares*

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Get Free “In-Class Comfort Upgrades” (ICUs)

Getting into Business Class does not automatically guarantee the best flight experience. If you don’t book the right aircraft and flight you might get stuck with a second-rate seat—and realize significantly less value on your investment.

Get a Free In-Class Comfort Upgrade by Flying a Partner Airline

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The chart at the right shows the better alternative (i.e., the In-Class Comfort Upgrade) to your preferred carriers when it comes to getting the best Business Class seat to Europe.

See chart below for more on the comfort discrepancies—which can equal great opportunities for you.

Business Class Seat Profiles for Airlines Offering Great Holiday Fares

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The Fine Print

Know the Opportunity Travel Window It’s the same for Business and First Class fares.

Thanksgiving: Nov. 18 to Nov. 23 for departure, Nov. 23 to Nov. 28 for return. Christmas: Dec. 17 to Jan. 4 for departure, Dec. 25 to Jan 8 for return.

Minimum/maximum stay

Thanksgiving: 3 days/10 days.

Christmas: 3 days/10 to 22 days, depending on airline.

Miles or cash?

With many Business Class awards starting at 100,000 miles, and the lowest fare starting at $1,500, the return on miles is only 1.5¢—and even less (1.1¢) if you factor in the miles you would earn on a paid Business Class ticket.

The same holds true with First Class. United charges 135,000 miles for a First Class award ticket, a return-on-miles of about 1.5¢, about the same as Business Class. That’s far below the normal return, 4¢ to 10¢+, that FCF recommends.

Unless you have miles to burn, fly First Class and pay cash.