Big Take Airlines Are Cashing in on ‘Premiumization’
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Nov 29, 2024 Amanda Mull, a senior reporter at Bloomberg Businessweek, dives into the evolving airline pricing landscape. She explores the concept of 'premiumization,' revealing how airlines are enhancing first-class experiences while making economy travel feel more like a budget squeeze. Mull discusses the shift in strategy since the 1970s, where airlines pivoted to cater to both premium and budget travelers post-COVID. With data-driven marketing becoming essential, she highlights how airlines utilize analytics to refine their approach, impacting your overall flight experience.
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Luxury Air Travel
- Early airline travel, post-WWII, was centrally managed with fixed prices.
- Airlines competed on perks, offering luxurious amenities like carving stations and cocktail lounges.
Deregulation's Impact on Airlines
- Deregulation in the late 1970s increased competition and brought down airfare prices.
- This shift led to a rise in leisure travel and a decline in luxury amenities.
Loyalty Programs
- Airlines created loyalty programs to retain business travelers, offering perks like upgrades and lounge access.
- First-class tickets became valuable bargaining chips in these programs.