Adapted for the more socially and fiscally responsible boardrooms of today, the line could be ‘business class is for wimps’. For the past five years companies have been steadily hacking away at their travellers’ budgets, applying greater scrutiny to everything from room service bills to airline tickets.

Although business class cabins are flying at full capacity, companies of all shapes and sizes are now encouraging, if not mandating, employees fly a cheaper class of service, and restricting business class privileges to senior level personnel, says Alex Cruz, head of Accenture’s aviation practice. Even those travellers entitled to fly business class sometimes feel guilty about taking that option.

So why are business class cabins packed? Analysts suspect the strength of British Airways’ Club World cabin, for instance, is more attributable to the surge in travel on certain routes, including those with specific ties to oil, rather than a wholesale up-tick in business class traffic. If that’s the case, it would help square why business cabins are brimming even though travellers are trimming their budgets.

Another likely reason business class is booming is because it has been re-sprayed with a first-class colour. The conventional business class of Gekko’s day looks a lot more like the premium economy products of today, while the modern-day business cabin, with its lie-flat beds, Michelin-starred menus and slick technology, are reminiscent of the luxurious, golden-age of air travel.

For business travellers on a budget, the “premium” class cabin, as coined in 1992 by Virgin Atlantic, and mimicked by BA in 2002 in the form of World Traveller Plus, provides a ‘guilt-free’ version of business class.

The good news is that choosing the cheaper option today does not mean sitting in the non-reclining seat in the last row near the toilets. On the contrary, premium offers a wider seat, lap-top power, in-seat entertainment, and, if you’re flying Virgin, a dedicated upper deck, which is arguably more private and has more storage space than Upper Class. The air hostesses in premium also tend to be a lot more generous with the cocktail cart. Premium passengers on BA and Virgin also feel the difference on the ground thanks to separate check-in desks and boarding planks.

When it comes to choosing which class of service to fly, Carol Wright, a vice president at Universal Music, says comfort is the number one priority. “If you can’t have a lie-flat bed, then you at least want roomier seats, fast-check-in, and a decent meal, so that’s when premium economy is a good option.” Wright says she is now looking forward to testing out newcomers MaxJet and Eos, both of which offer a business-class product priced below standard business class fares.

Gary Rogliano, CEO of MaxJet Airways, which operates between Stansted and New York and Washington, says 70% of the airline’s passengers are business travellers, 30% of whom work for companies with more than 1,000 employees. This suggests there is a strong market for a diluted business class product among companies of all sizes.

Vincent Eavis, director international development for Citigroup, notes that even the well-fed financial services industry is feeling the strain on travel budgets. Eavis recalls a recent trip to the US, where he and his colleague were told only one of them could travel if they both flew business class, even though both are at a level where business class is permissible. Consequently, both men flew premium economy.

“It’s a good option to have because it gives you some extra room, you board and deplane faster than if you were in economy, and you can get some work done. If I have the choice, I still fly business, but premium definitely beats economy.”

Eos, which also flies between Stansted and JFK, but whose product is more akin to fully-fledged business class sold at a premium economy price, is also finding success with business passengers on a budget. General Electric is planning a trial partnership with Eos to see how much it can save while still offering its employees a business class experience.

“I’m surprised more carriers haven’t added a premium product,” says JP Morgan aviation analyst Chris Avery, who points out that the premium economy cabins generate more revenue per metre than any other class. BA and Virgin are well aware of the benefits.