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It worked like it did for airlines: lower prices and generally worse service unless you want to pay for it (and most people don't).
by dehrmann 5y ago
It worked like it did for airlines: lower prices and generally worse service unless you want to pay for it (and most people don't).
- pdonis 5y agoIf most people aren't willing to pay more for better service, then the better service is not worth what it would cost and not providing it makes the economy more efficient--resources are freed up to be applied to things that are worth what they cost.
- BigRedDog1669 5y agoBut with airlines, the terms of service and what fees tacked on are constantly changing so it seems impossible to know ahead of time that you are actually getting better service with a higher cost. And the pricing that is constantly changing makes it seem like a higher price is because of demand on that flight, not because higher service. It just isn't possible to know what you are getting vs what you are paying unless you do a ton of research or fly all the time.
- dehrmann 5y ago> constantly changing so it seems impossible to know ahead of time that you are actually getting better service with a higher cost The main variables are legroom, food, and bags. First class gives you all of them. Premium economy gets you legroom (and possibly food, but at $12 for a snack box, I don't stress over it). Offerings are pretty consistent across the legacy carriers. Free checked bags haven't been a thing for a long time. The budget carriers like Spirit nickel and dime you for literally everything, but that's their thing. Southwest is weird. Unless you're on a discount carrier, you'll get food and alcohol on all long-haul flights.
- BigRedDog1669 5y agoThat's a good assessment on the choices you can pay for. I also think about how likely it is that the carrier will cancel or delay the flight, will it be a mess to get my money back if the flight gets cancelled or changed (even if the policies say it is allowed), and will the wifi work after I pay for it on long flights. Those things aren't covered by paying even more money and don't correlate with paying more for a flight.
- pdonis 5y ago> with airlines, the terms of service and what fees tacked on are constantly changing I don't think those things are constantly changing. What constantly changes is the price of the base ticket, because airlines are always looking for ways to price discriminate--i.e., to charge more for the same flight to customers who are willing to pay more, but charge less to customers who can't afford to pay more, in order to keep the maximum number of seats filled on every flight. But what that price buys you, and what you're going to be charged for stuff that isn't included in that price, doesn't change very often.
- throwaway0a5e 5y agoThe service is only "generally worse" because the cheap low end product didn't exist before and is so wildly successful it's became the default. You can still fly first class if you want. Pretty much nobody does.
- tonyedgecombe 5y agoIt's the middle that disappeared.