In a commoditising market - air travel and credit cards are perfect examples of this - price tends very quickly to cost+ based on the minimum margin people are comfortable accepting. Hence at the sharp end, any cost reduction ends up feeding through.

Value based pricing is where you can persuade people to pay more depending on the value to them of what is being purchased. Luxury brands are in this category,; value can be fiscal or perceived. Thus BA can add three finger sandwiches and a drink to the same basic product and charge people three times more for it.

For thiise of us who shop in supermarkets and look for travel deals, cost+ dominates. Which is why a reduction of credit card costs is generally a good thing for consumers.