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I've often thought this is some kind of market inefficiency that I don't quite have the vocabulary or expertise to describe. You don't get 5x more space or serv
by bootlooped 3y ago
I've often thought this is some kind of market inefficiency that I don't quite have the vocabulary or expertise to describe. You don't get 5x more space or service. Shouldn't it be roughly proportional to how much more it costs the airline, plus some extra profit on top? Instead it seems like an absolutely massive premium.
- thirtyseven 3y agoIt's price discrimination. Some airline users are not price sensitive (the wealthy, corporate travelers with expense accounts) and they don't care about getting maximum value for their dollar. Economy fliers do.
- sokoloff 3y agoIt's also a pretty good subsidy to economy fliers.
- thirtyseven 3y agoAssuming they don't intentionally make economy worse to increase the perceived value of first class.
- balderdash 3y agoLay flat business class seats probably take up the equivalent of ~4 economy seats…
- SOLAR_FIELDS 3y agoCharging that much seems fine to me, I think doing what you are describing would create a market inefficiency. 5x seems to be what the market is willing to pay for that seat, which is fine. It excludes lower income people from ever taking business class but those higher priced seats help make travel more affordable in the uncomfortable, jam packed rear of the plane