I have seen premium creep put into effect just like premium hikes did to health insurance: slowly, a little more this month and a little this month, etc. To begin with airlines began cutting legroom, then turned basic comfort into a premium. Hotels came behind, cutting off housekeeping and breakfast in the name of choice. It is not innovation doing but segmentation. We live in a society where companies are making money on every inch of convenience given that the information indicates that people are willing to pay to keep the inconvenience away. Whenever my family goes vacationing, I consider these addons as optional riders in insurance cover. It is not whether I want it or not but rather Would I regret not having it? With business trips, I will spend on flexibility or Wi-Fi since it is a form of utility and not luxury. However, checks-in too soon or seat upgrade does not shift the needle and so I will not make such a purchase. Smart traveler no longer pursues perks, but they are redefining what is really worth the premium
I visted over countries and flew at least 50 times in business class. Most of the time I used miles or credit card points to book them. My experience is that airlines try to find new income streams by selling extra luggage etc. and communicating it as "premium" to better market and justify the costs. Travelers became more willing to pay extra to get some more comfort and even to be somewhat special compared to most of the other travelers even if they do not gain a real advantage. They want to feel not like the regular person. When I see such offers I always try to be objective and decide based on hard facts to see if the additional costs are justified or not. I really like the comfort of business class but I would not pay the regular price as I think it is way to expensive but using miles/points is the workaround for me. I think this is still a very good solution to enjoy the comfort while flying, even for hotel bookings, and do not pay huge additional price.
I travel a great deal, so I've become aware of all the companies that have turned things once part of the price into luxuries. Airlines and hotels want to charge you for everything: You already pay extra for legroom on airlines, and soon, hotels are expected to start charging for things like Wi-Fi and breakfast that they used to throw in free with a room. Cruises have done the same when it comes to things like room service and Wi-Fi; car rentals now refer to cars with basically any feature more advanced than metal-belted tires or side-curtain air bags as "premium." Not that these services are improving, they're just being peddled as add-ons to fleece you out of more money. This change is happening because businesses are aware that people are willing to pay for convenience, even if the service itself hasn't been improved very much. My suggestion is to get clear on what you're really using and make sure you don't overspend for the things that are not important to you. Good deals are still out there if you're willing to do a little legwork, and know what was worth paying for in the first place.
I've noticed something when I travel. What used to be standard, like good Wi-Fi or late checkout, now often costs extra. We see the same pressure in our restaurants, with rising costs making businesses want to charge for old standards. We just list all our prices upfront. I always check for hidden fees now, and I'd rather support places that don't try to squeeze you for every little thing. That trust is worth more than a quick upcharge.
During my recent trip to France I recalled that seat selection used to be a standard service without any additional fees. The airline staff now treat standard aisle seat requests as if passengers were asking for first class accommodations. The hotel used to offer early check-in without any additional cost but now charges $40 for this service. The team at Oakwell made a decision from the start to avoid charging small fees to our customers. Our hotel provides all amenities including robes and tea service and flip-flops and beer flight pairings without any extra costs. The hotel includes all amenities because customers hate discovering hidden fees in their bills. Your guests should experience positive surprises during their stay at your establishment.
The experiences of growing TrackSpikes.co helped me understand that all the simple things can be repackaged as a luxury and lose their true value. Airlines reducing legroom and renaming it premium economy act in the same way as I was opposing creating affordable high-performance spikes. The features of my customers are not overstated but innovative and not exaggerated as luxury. Unbundling of the travel ecosystem is a shell game version of calculating what was previously baseline and charging survival basics. I find in this a lesson of integrity in products: customers have to break through smokescreens and insist on bare utility. When leading my team, I am on business and equality but not bending meaningless extra subjects who claim to be upgrades. Customers will need to redirect that thinking, through high-end creep. Insist on transparency. Only pay what increases the bar. It is the fight of honest value within the market designed in such a way that it makes it hard to differentiate and take the excess revenue. This experience drives my criticism which is raw and accurate going beyond industry spin to reach actual consumer impact.
We stayed at a cabin during our trip to enjoy the fall colors in the Rocky Mountains. Our cabin had a cozy fireplace with logs already in the fireplace. When we left, we discovered that we were charged an extra fee for the logs that we used. We were annoyed by this especially considering the cabin was already priced as a "luxury" cabin, so we didn't anticipate getting charged extra for something as basic as firewood. We probably should have complained or asked for clarification, but we honestly just wanted to relax and not allow the situation to stress us out as we finished up our trip.
I travel often to close factory deals for SourcingXpro and I feel this premium creep. A 34-inch seat now sits behind a paywall and one chain in LA tried to charge me 25 dollars for daily housekeeping that used to be auto. I pushed back at check-in and they waived it once I said I would book two nights only. On cruises Wi-Fi slipped into a bundle and my last car hire up-charged for a USB port like its gold. My rule is to lock price ladders early and decline bundles at the counter. Treat add-ons like line items in a contract not a fate.
If you think that's bad wait till you discover luxury car manufacturers are now charging for features like remote start. You have to pay for apps for things that used to be on your keyfob. Sadly, what I call "device drain" is draining people's bank accounts. Technology has made it so easy for us to scan our face and purchase things via plastic, and even now finance that people don't realize what they're spending. With zero effort to open your wallet, it's so easy to spend that these "little extravagances" don't seem like money at all.
The phenomenon of "premium creep" in travel is not abstract; it's a transparent, high-stakes operational decision to capitalize on the customer's guaranteed dependency. Companies are doing this because they have successfully segmented the market into price-sensitive buyers (who accept the base, stripped-down product) and risk-averse buyers (who are willing to pay any amount to guarantee the absolute necessity). My experience with this is operational: we see the equivalent in the heavy duty trucks parts trade. For years, the base price of an OEM Cummins part implicitly guaranteed comprehensive expert fitment support and documentation. Now, companies charge extra for things like guaranteed Same day pickup fulfillment or dedicated technical assistance. What used to be a part of the core product—the guarantee of operational certainty—now often costs extra. Companies justify this by forcing the customer to pay for zero risk. They sell the base product (the "seat" or the "part") cheaply, but they charge a premium for the certainty that the customer's time and financial exposure will not be compromised. Travelers are not getting "more"; they are paying the non-negotiable cost of having a major operational variable—like luggage delivery or asset integrity—secured. My advice for other travelers and business owners is to ruthlessly audit the base price. Assume that the stripped-down, basic product is functionally unreliable, and budget the true cost of the guaranteed outcome. It is still possible to get a premium product at a basic price only if you are willing to assume all the operational risk yourself. In my trade, that risk is always too high.
Jeff Lenney - Digital Marketing & SEO Consultant American Airlines AAdvantage Executive Platinum member for 3 years. I fly a few times a month, and the "premium creep" is everywhere. Thirty-four inches of legroom used to be standard economy, now it's Main Cabin Extra. Hotels do the same thing with Wi-Fi and early check-in. Everything's being sliced up and resold like it's some special perk. I get free checked bags because of my AAdvantage status, but most travelers are stuck paying for what used to be included. Companies call it "customization," but it's really price creep with better branding. These days I look at the total cost before booking. Sometimes I'll skip the big chains and go with smaller hotels that still include the basics. There are still a few brands that treat you like a guest instead of a revenue stream; you just have to look a little harder.
Hi, i'm Kelly, an elopement wedding photographer who travels all over the country to photograph weddings. I travel a lot, especially during the summer and fall months. When flying, I used to always book Southwest for their free checked bags. With all of my gear, it's impossible for me to get away with just a carry on. I usually carry on my expensive cameras, which I can fit in a personal size bag, and then check all of my less expensive gear, and my clothing, shoes, etc. But when booking my flights this year, I realized they no longer offer free checked bags. I used to look only at Southwest when booking my flights, often times not even considering flight times, but now I don't even filter down to Southwest. They're now just lumped into the rest of the airlines. If i'm not getting that benefit, I don't see why I would only fly Southwest anymore.
I've been in real estate, property management, and construction in Tampa Bay for over 20 years, and I'm seeing the exact same pattern in housing--what used to be standard is now "premium." When I started Direct Express in 2001, stainless appliances, granite counters, and basic lawn care were included in most rentals. Now landlords charge $50-100/month extra for those same features and call it an "upgraded unit." Here's what's driving it: operating costs have exploded while competition forces base prices to look attractive. At Direct Express Rentals, our insurance premiums doubled in three years, property taxes jumped 40%, and maintenance costs are up 60%. Rather than raise base rent $300/month and scare everyone away, properties unbundle services--charge $1,495 base rent plus $75 for appliance package, $50 for pest control, $25 for online portal access. Tenants see the lower number first and rationalize the add-ons. My advice: negotiate everything upfront and get it in writing. When I'm working deals, I bundle services--use our construction company for repairs, our property management, and our brokerage, and we discount across the board. That model still exists, but you have to ask. Most companies would rather give you three services at standard pricing than lose your business entirely. The folks who just accept the first quote are subsidizing discounts for people who push back. The premium creep won't reverse because investors have realized people will pay it. But there's still plenty of room to negotiate if you're willing to commit to multiple services or longer terms. We give 10% off property management fees for owners who also use Direct Express for buying or selling. Nobody advertises these deals--you have to ask.
The hotels nowadays tend to charge you with such things that you would never have thought you would pay such charges as an example of receiving packages at the front desk or charges to have your luggage held after check out. Other properties add unwanted charges such as unattended parking at the suburbs, setting up or a break-down of meeting rooms, or even assuring a certain room location. Airport shuttles, which were always part of the package, have become line items as well as bellhop or housekeeping gratuities- sometimes automatically added to your bill. During one of my last visits, I came across a daily fee of using a refrigerator despite the description of the room stating that an in-room fridge should be one of the basic features. Always enforce upfront and scan room agreements by ensure you read the agreements thoroughly sometimes such fees can be reduced by asking. Your eyes are sharp and you have some tenacity, and without compromising experience you can save on paying more than you need to pay. Unless it is clearly mentioned as part of it, guess it is not, and do not shy to bargain it down, I promise you that your wallet will be rewarded as well as your wallet.
Marketing Manager at The Otis Apartments By Flats
Answered 4 months ago
I manage marketing for a portfolio of 3,500+ apartment units, and I've watched this happen in reverse in our industry--we've actually been adding back features that competitors stripped out. When I analyzed our resident feedback data through Livly, I found people were frustrated paying "premium" rates but still dealing with basic issues like not knowing how to operate their appliances. We created maintenance FAQ videos that our staff shares during move-ins, which dropped dissatisfaction by 30% and increased positive reviews without charging extra. Here's what I've learned from negotiating $2.9M in annual marketing contracts: companies rebrand basics as "premium" when they see competitors getting away with it, not because costs actually increased. I secured master service agreements by showing vendors their historical performance data--when they realized I knew exactly what their services actually cost them to deliver, suddenly those "premium" annual media refreshes became included at no extra charge. The markup exists because most customers don't have that benchmark data. My advice from the housing side: always ask what was included two years ago at the same price point, then show them you've done that research. When I negotiate vendor contracts, the ones who try charging extra for what used to be standard immediately drop those fees once they know I've compared their old proposals. Most travel companies operate the same way--the "premium" label is just testing whether you'll pay, and it disappears fast when you demonstrate you know better.
I've raised over $500M in capital and sat through countless pitch meetings where companies try to justify price increases with "value engineering"--which is MBA-speak for charging more while delivering less. Here's what actually happens in those boardrooms: finance teams run models showing that 70-80% of customers won't downgrade even when you strip out basics and rebrand them. The math works until it doesn't. I saw this break in real-time at Premise Data. We operated in 140+ countries collecting ground truth from real people, and the data showed something fascinating: premium pricing strategies collapse fastest in transparent markets. When contributors or customers can see exactly what they're getting versus what they're paying, the game ends. Airlines and hotels survive on complexity--obscure booking classes, opaque fee structures, dynamic pricing that makes comparison nearly impossible. My move: I book positioning flights on budget carriers for under $100, then use those savings on accommodations that matter. Last month I flew Spirit to Denver (terrible seat, don't care--it's 90 minutes), then spent extra on a hotel near the race venue because sleep before an Ironman actually affects performance. Most "premium" airline seats are just regular seats from 2005. The real tell is this: if a company can't explain why something costs more in one clear sentence, it's premium creep. I learned this negotiating vendor contracts--when they start using multiple paragraphs to justify pricing, they're counting on you not doing the math. Track three trips and write down every fee. You'll spot the pattern immediately.