Originally Posted by
Andriyko
Quite why people still think that there are millions of passengers who are eager to pay more to get to their destination is unlcear.
The same reason why millions of people will cheerfully pay extra to stay in a Hilton hotel, even though there's a Travelodge over the street. Or will spend $5000 more on a BMW even though a Ford has all the same gadgets and the same build quality.
If all it took to charge a premium were to offer a better seat or more legroom or some food airlines would have been doing it.
Reputation is far more important than you seem to be implying. It isn't about having a good seat or good food, it's about having the reputation for having good seats or good food. Look at Emirates, successfully marketing themselves as a premium airline despite having 10-abreast Y on a 777.
People will, and do, pay a premium if they think they are buying into a luxury or premium brand. And, conversely, they will not pay a premium if they think they are buying into a low-cost brand.