Flight Centre says fly via Asia or Dubai to US to save big on business class fares

Business class airfares remain stubbornly high, particularly when flying directly to the US. But there are ways to make big savings – even if it means travelling via Tokyo or Dubai.

Flying from Melbourne to New York in business class with Cathay Pacific via Hong Kong can cost a third of the price of flying a more direct route with Qantas.

Flying to the US via Asia or even Dubai is becoming a cheaper option for executives, with some saving thousands of dollars – as much as 66 per cent – on fares by ditching the direct route across the Pacific.

Business class airfares are yet to significantly budge from the highs of post-pandemic 2022 and on some routes are even more expensive, as airline customers continue to pack out premium cabins.

For example, return business class fares from Sydney or Melbourne to the US west coast can cost up to $20,000 – and even more travelling to the eastern seaboard – with a lack of competition and higher labour costs compared with Asian and Dubai routes fuelling the nosebleedingly high prices.

Plan ahead

But Gurpreet Ghuliani – operating partner of Titanium Ventures, formerly Telstra Ventures – says planning ahead is key to generating savings, along with a willingness to adapt work schedules to spend more time in the air.

“There are a few things, which I think that the airlines kind of take advantage of. There’s the executive who’s too busy … they think they’re too important, and so just book the flight. And they usually do it last minute, and you pay for that,” Mr Ghuliani said.

“The other side of it too, is that they have to be there at a certain time – without planning the trip properly – so you’re paying a premium. And the fact that we’ve only got Qantas, United, Delta – American has merged with Qantas in terms of the fares – and Air New Zealand, which can get you through. You are pretty well stuck, in some respects, on options.”

Other options of course include flying economy, the average price of which has fallen 13 per cent in the past year, according to Flight Centre. And Microsoft co-founder Bill Gates chose to travel in economy during his first 10 years as a billionaire. Why? Because he didn’t see the value in business class, which in the early 1990s was only marginally better than economy despite costing six times the price.

Titanium Ventures operating partner Gurpreet Ghuliani.

Now Gates reportedly owns a fleet of private jets worth almost $200m. But not every executive can afford a private jet, and business class has taken giant leaps in the past 30 years to offer an experience similar to having your own aircraft in the hangar.

Most business class seats offer lie-flat beds as well as doors to offer privacy, allowing executives to work on sensitive documents while catching some shut-eye so they are refreshed and ready for action when they reach their destination, helping minimise jet lag.

Sales alerts and Asian stopovers

And Mr Ghuliani said there are several ways to travel at the pointy end of the plane for a fraction of the cost. One is setting up a sales alert with Qantas or another airline, which can see direct return business class fares to San Francisco fall to about $6500-$7000 at certain times.

Another option is working out if you can incorporate a stopover in Asia on a US trip.

Travelling from Melbourne to New York via Hong Kong in business class with Cathay Pacific costs as little as $7938, according to desktop research by The Weekend Australian. Travelling on the same dates and class with Etihad Airways via Dubai is more than double the price at $16,729, but this is at not as expensive as Qantas’s more direct route, which costs $23,169. Air New Zealand charges a similar amount, with a two-hour stopover in Auckland.

Flying business class from Melbourne to New York on Air New Zealand in early November costs $23,521, according to Expedia.

“If you’ve got any work just to do in Asia, or if you want to hop to Asia, you’re kind of paying a third of the price,” Mr Ghuliani said.

“I’ll give you a great example. I’ve just come back from the US. If I went premium (economy), it was going to cost me about $4700 on that fare. But I went to Singapore, had two days work there, then made my way on ANA, which is a Japanese airline, business class for $4600. So business class Singapore to KL (Kuala Lumpur), from KL it was an hour stop in Tokyo, and then straight to San Francisco.”

But it is not just about saving money, there is also the optics from customers, clients, and in Titanium Ventures’s case, potential portfolio companies.

“As a VC, you want to keep thinking just like a start-up,” Mr Ghuliani said.

“The last thing a future entrepreneur wants to see are VCs flying business class everywhere saying: ‘Hi, we’re here to work with you’. Because their view is ‘do you understand us?’ So our mode of transport is premium. But geez, if I can get business for as close to premium as possible, we’ll do it.”

The shower in the business class area of Emirates’s Airbus SE A380 aircraft.

It’s not just looking at indirect routes, which can save money. When in Europe, Mr Ghuliani has also used train travel to save money.

He had a work trip in Europe earlier this year that involved flying to Singapore – where he worked for two days – then flying on Qatar Airways to Paris rather than London. This saved $800. Mr Ghuliani then travelled by train to another job in Amsterdam, then Hamburg, Zurich and London.

“And I got work done. The key thing is that when you do these things, yes it takes more than 14 hours, so you need to have flexibility and you also need to make sure you’re planning ahead and that you’ve got work to do in other countries.”

Don’t get seduced by loyalty programs

Mr Ghuliani also said do not be seduced by loyalty and status programs – which in many cases have been more profitable to airlines than flying planes.

Agribusiness dealmaker David Williams says Emirates’s food and drink offering is superior to Qantas.

“You’d be amazed at how in the corporate world that’s an important element – the ability to be in a first class lounge. But I’d avoid all those bits and pieces if I can still fly comfortably somewhere. I’ll fly ANA, which is with Star Alliance that’s also with United; I’ll fly Qantas where it makes sense.”

Mixing economy and business fares

Mixing fare types too is another cost saver. Technology expert Trevor Long has saved thousands of dollars flying economy to Asia and then business class to Europe.

He flew to Berlin earlier this month and was quoted almost $20,000 to travel business class from Sydney for himself and a co-worker. But flying economy to Jakarta and then business to Berlin cost $7000 for the pair – saving $13,000.

Like Mr Ghuliani, Mr Long said it was all about planning, as well as using sites such as Google Flights to find the best deals.

Tech expert Trevor Long says planning is key to savings.

“It’s knowing how long you are in places and using those moments for work. These are long trips, which is why I travel business. I take advantage of whatever lounge access (is available) whether that is buying lounge access at a destination or using privileges through status,” Mr Long said.

“In Jakarta most recently, we found a little fast food restaurant and had a few nibbles while we worked. So there’s a way around everything, if you’re willing to find a way.”

Flying via Dubai – cheaper but longer

Melissa Elf, chief operating officer at Flight Centre Corporate Traveller, said flying to the US via the Persian Gulf could be cheaper compared with travelling directly over the Pacific.

“There are certainly savings to be had by adding stopovers if you can be flexible with your route and arrival time. For businesses looking to save money on travel, this is a valuable consideration,” Ms Elf said.

The bar in the business class lounge of an Airbus SE A380-800 aircraft operated by Emirates. Picture: Getty Images

“Middle Eastern carriers often offer competitive fares compared to direct flights, and travellers can sometimes find more affordable options with a layover in cities like Doha or Dubai.”

And, Ms Elf said, the earlier people booked the cheaper the flight.

“Last year one of our Corporate Traveller customers gave themselves the goal of improving their annual advance purchase by 20 per cent, by simply shifting 33 per cent of their bookings from within two weeks to at least four weeks in advance. By doing so, they reduced their average trip cost year on year by $137 per booking, for a total savings of $120,000 over 800 bookings.”

Better service

David Williams says: ‘It’s a joke when I can drink Yattarna and 707 on Emirates but not in Qantas Chairmans Lounge’. Picture : NCA NewsWire / Nicki Connolly.

David Williams, agribusiness deal-maker and managing director of corporate advisory firm Kidder Williams, said he travelled to the US via Dubai on Emirates – not because it was cheaper but because the service was superior.

“The cost is similar but the food, wine and service (on Qantas) are inferior,” he said.

“It’s a joke when I can drink Yattarna and 707 (which retail for $220 and $800 a bottle respectively) on Emirates but not in Qantas Chairmans Lounge. What a pleasure to be met in the Emirates lounge in Dubai by the shoe shine man who recognised my crocodile RM boots and whisked them off for cleaning.”

Mr Williams also praised Emirates for operating an onboard shower.

Best trans-Pacific deals

But for those who want to fly over the Pacific, there are bargains, so long as they’re willing to travel for longer and add stopovers.

“For example, some of the most affordable flights to the US over the next few months will

transit through Fiji, Hawaii, Auckland, or even Vancouver,” Ms Elf said.

Qantas business class cabin on the Airbus A380-800.

Return flights from Sydney to Los Angeles via Honolulu in January 2025 start at $1220, Ms Elf said. Whereas direct flights from Sydney to Los Angeles start at more than double that, at $2500. The direct flight takes roughly 14 hours, but a stopover in Hawaii can extend travel time to upwards of 20 hours.

“It’s a balancing act. It can add a lot of time to the trip. For corporates, we mostly see them prioritising the quickest and most direct route,” Ms Elf said.

“(But) there is appeal in a multi-stop route for some corporates – beyond value for money – especially if those travelling for business have some personal leisure time built into the trip.”