With long-haul budgets under pressure, executives could be feeling the pinch in the back of planes for years to come. But premium-economy seats may be the ideal compromise between cost and comfort

As the economic squeeze tightens, business chiefs are travelling less, and when they do they're increasingly being forced to turn right as they board aircraft instead of left, taking seats in economy rather than business class. Airline watchdog IATA reported a fall of 16.7 per cent earlier this year in the number of passengers travelling on first- or business-class tickets, blaming "the extent of the deepening recession".

The prospect of a downgrade will be uncomfortable for those who are used to business-class service. And for the economy traveller who dreams of flying up front, the downturn will put it even further out of reach. But the news isn't all bad. Often overlooked, the premium economy concept has been flying long-haul since 1992.

First introduced by Virgin Atlantic, premium economy at first glance may have limited appeal. When compared with modern business or first-class long-haul concepts, the flat-bed, automatic lounge access, limousine transfer and increased bag allowance are clearly absent. Scratch beneath the surface, though, and you'll realise that the gap between economy and premium economy is vast, so big that any association with the word economy seems unjust.

In many ways, today's premium-economy products closely resemble business-class concepts from earlier this decade, but for a much lower price. In fact, most of the seats today are simply recline-restricted replicas of the "cradle" business-class seat. Pioneered by British Airways in the early 1990s, this seat design offers great comfort, thanks to a moving base that rotates as the chair reclines.  

Depending on which airline you choose to fly with, today's premium-economy products will give you 34-52 inches of legroom, with increased recline. Compared with most long-haul economy configurations, where a seat pitch of 31 inches is the norm, premium-economy seats are, on average, two to four inches wider, too. The extra width means that you'll never be more than one seat away from an aisle.

With recent advances in in-flight entertainment, the addition of laptop power and adjustable lumbar support in every seat, several of today's premium-economy products outshine business-class concepts from a few years ago. Throw in priority check-in, a smaller, quieter cabin with dedicated crew, improved food served on ceramic plates with proper cutlery, and old economy loses its appeal quickly.

So, which carrier offers the best premium-economy service? As a rule of thumb, airlines that fly a combined business/first product instead of separate first and business cabins have more scope to push the boundaries of premium economy into business-class territory. With huge variations in product specification by airline, it pays to do your homework via websites such as seatguru.com. Bmi's Premium Economy seat is winning the legroom battle from UK shores to the US and the Caribbean, with a seat pitch of 49 inches. But if you're heading to New York and you're prepared to fly via Paris or Amsterdam, you may want to consider the 52-inch pitch Prem+ service offered by British Airways. The real winner in premium economy, though, is Virgin Atlantic. Having won Best Premium Economy category at the coveted Business Traveller Awards for the second year in a row, it is clearly doing something right.

So how large is the premium? Booked in advance, premium economy is generally 80 per cent more expensive than an equivalent economy fare. Closer to the departure date, the premium starts to drop to the point that, on the day of travel, the increase can be as low as 25 per cent. Remember to ask about premium economy at the ticket desk before you join the economy check-in queue.

For businesses that still allow travel in first and business class, the cost comparison with premium economy will be welcome news to retrenchment-focused executives. Business class is typically three to five times the cost of premium economy. Little wonder then that demand for premium economy is expected to rise sharply in the next 18 months.

A downgrade to premium economy is also the perfect statement for companies wishing to reduce their carbon footprint. With most business-class, flat-bed concepts occupying slightly over 1 sq m of cabin floor space, premium economy is twice as space-efficient, taking up just 0.5 sq m. By comparison, the economy seat will occupy 0.3 sq m.

So the next time you're planning a long-haul trip, be sure to include premium economy in your price comparisons. When you peer through the economy curtain at the start of your flight and see people shoe-horning themselves into their accommodation, you'll be glad you did. Don't be fooled by  the word economy. The premium is most definitely worth it. This is one mode of travel that is in a class of its own.