Qatar Airways has long been known for offering an exceptional business class experience, but a relatively small investment is helping to elevate its service even further and solidify its dominance in the market. By introducing caviar service on select routes, the airline is adding a touch of luxury that differentiates its product and sets it apart from competitors. The cost of this indulgence? Just $1 to $2 million per year—a small price to pay for the huge premium halo it provides.
The addition of caviar in business class cabins across routes like Boston, Dallas, Hong Kong, Houston, London, Los Angeles, New York, Paris, Sao Paulo, Singapore, Sydney, and Washington D.C. has turned heads in the aviation industry. This caviar service not only adds a unique touch of elegance, but it also helps Qatar Airways elevate its product without overhauling the entire experience. In fact, the cost of providing caviar is relatively low—at about $5 to $10 per serving—yet the airline benefits from a significant premium perception in the marketplace.
Oliver Ranson, who analyzed the numbers behind this investment, notes that Qatar’s strategy is a far cry from its competitors. Take American Airlines, for example, which offers Flagship First Class meals almost identical to its business class service, with only minor upgrades, such as an additional soup course, and serves wines priced around $8 per bottle. On the other hand, Qatar Airways has invested in the finer details that make all the difference, such as serving high-quality Baerli caviar, a delicacy retailing for $20 per serving. The airline likely pays much less due to volume discounts, adding minimal cost to each passenger’s food service, yet reaping significant rewards in terms of customer satisfaction and brand prestige.
This focus on small but impactful upgrades extends beyond food. United Airlines, for example, recently made an investment in high-end wines, like Freemark Abbey cabernet, which costs more than Qatar’s caviar but doesn’t have the same visibility or high-status appeal. It’s these types of nuanced investments that allow Qatar Airways to remain ahead of the curve in offering a luxurious and memorable business class experience.
The numbers behind the caviar investment reveal the relatively low cost for such a high return. Qatar Airways serves around 6,800 business class seats per day across its fleet, but only 1,300 of those seats are on caviar routes. Assuming an 85% load factor, that means about 550 servings of caviar are provided each day, costing the airline anywhere from $2,750 to $5,500 per day. Over the course of a year, this translates to an investment of $1 to $2 million. However, the return on this investment in terms of customer perception, loyalty, and premium brand status far exceeds the cost.
In conclusion, Qatar Airways’ $1 to $2 million annual investment in caviar service for its business class cabins is a prime example of how small touches can create significant returns. By focusing on details that elevate the passenger experience, Qatar has managed to position itself as the leader in luxury air travel, offering a product that rivals competitors and gives them a distinct edge in the competitive world of premium air travel.