Airline 'premiums' fail to deliver the luxury they claim.
The airline industry has long been known for its ability to nickel and dime customers, extracting every last penny from their wallets. The latest trend is no exception: "premium" services that seem more like up-charges than actual luxury experiences.
For those willing to pay extra, airlines are offering a range of perks, including window seats, checked baggage, and even lounge access. But what's truly premium about these services? Not much, according to experts.
"It's turned out that competition has led to this situation where the airlines can make more money by unbundling everything," says Marvin Lieberman, a professor at UCLA's Anderson School of Management. "The airlines have essentially figured out what people are willing to pay for."
In other words, airlines have become masters at identifying which services their customers are willing to pay extra for, and then charging them accordingly. This has led to a situation where the luxury experience is no longer about the service itself, but rather about the convenience of paying more.
One expert notes that making air travel as awful as possible – think smaller seat pitches, longer boarding times, and delayed baggage claims – is actually a sound business strategy when everyone's doing it. Carriers don't need to sell more first class tickets to make money; they just need to sell more seats that aren't the worst.
Ultimately, the "premium" services offered by airlines are little more than marketing gimmicks designed to separate customers from their hard-earned cash. Whether you're willing to pay extra for a window seat or lounge access is irrelevant – what matters is that the airline has successfully extracted every last penny from your wallet.
As one expert puts it, the real premium experience is about how much money you're willing to part with. And if you're not careful, airlines will take advantage of you every step of the way.
The airline industry has long been known for its ability to nickel and dime customers, extracting every last penny from their wallets. The latest trend is no exception: "premium" services that seem more like up-charges than actual luxury experiences.
For those willing to pay extra, airlines are offering a range of perks, including window seats, checked baggage, and even lounge access. But what's truly premium about these services? Not much, according to experts.
"It's turned out that competition has led to this situation where the airlines can make more money by unbundling everything," says Marvin Lieberman, a professor at UCLA's Anderson School of Management. "The airlines have essentially figured out what people are willing to pay for."
In other words, airlines have become masters at identifying which services their customers are willing to pay extra for, and then charging them accordingly. This has led to a situation where the luxury experience is no longer about the service itself, but rather about the convenience of paying more.
One expert notes that making air travel as awful as possible – think smaller seat pitches, longer boarding times, and delayed baggage claims – is actually a sound business strategy when everyone's doing it. Carriers don't need to sell more first class tickets to make money; they just need to sell more seats that aren't the worst.
Ultimately, the "premium" services offered by airlines are little more than marketing gimmicks designed to separate customers from their hard-earned cash. Whether you're willing to pay extra for a window seat or lounge access is irrelevant – what matters is that the airline has successfully extracted every last penny from your wallet.
As one expert puts it, the real premium experience is about how much money you're willing to part with. And if you're not careful, airlines will take advantage of you every step of the way.