alt Hacker NewsYes, there will always be someone willing to buy on price alone, but that doesn't mean that there aren't also people who will pay more for better service. To wit: Spirit is financially fucked, mainline carriers are in better condition. The existence
I think the real thing is that - in North America at least - there is a pretty good chance that a mainline carrier will treat you poorly, hit you with unexpected fees, jam you into a tiny seat, etc.
For many people, the difference between an ultra-low cost carrier and a mainline carrier is whether they have to walk through first class on the way to their seats. If you are going to get treated like cattle and upsold on everything anyway, might as well save a few bucks.
Given the choice between Singapore Airlines and United, I'll pay extra for SingAir because I KNOW the service will be better. Given the choice between United and Southwest, I'll just get whichever flight makes the most sense since I don't really expect United to offer better service.
> For many people, the difference between an ultra-low cost carrier and a mainline carrier is whether they have to walk through first class on the way to their seats. If you are going to get treated like cattle and upsold on everything anyway, might as well save a few bucks.
That goes beyond airlines and extends to everything. The trend I've been observing in every product and service category is the hollowing out of the middle: the market bifurcates, one part serving the cost-sensitive customers and getting stuck in a race to the bottom, the other serving premium clientele with highest-quality or bespoke goods/services, gravitating towards few customers and "if you have to ask, you can't afford it pricing".
Multiplying volume by margin, "lots of cheap shit" and "few pricey sales" are both sustainable, but the middle segment - "reasonable quality for reasonable price" - is not.