Awesome Video: The Economics Of Airline Classes

By: Ben Schlappig

Published: March 15, 2017

26 comments

Yesterday YouTuber Wendover Productions uploaded a great video explaining the economics of airline classes. It explains why airlines make most of their money in business class, the history of airlines’ various classes, and more.

I think this is a really great explanation for a wide audience. Sure, there’s a bit more to this and it doesn’t get into everything, but for a 10 minute video targeted at someone with no knowledge of the airline industry, this is extraordinarily well done. The video was just uploaded yesterday and already has over 675,000 views, which is especially impressive for a video about airlines.

Here’s the video, which I hope some of you will find interesting:

(Tip of the hat to Alon)

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AUSTEX Guest

March 16, 2017, 8:18 pm

Why didn't anyone mention that this video was a gross oversimplification with several errors? Oh wait, almost everyone did. Some very insightful replies. I liked Roger's, but others, too. Why was there no wine list?

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ericnyc Guest

March 16, 2017, 11:39 am

I liked the idea of the video, though I thought it went on too long. Clearly it oversimplified some things, such as how wildly the price of a seat in in a cabin can vary. And its conclusion at the end that all of us in economy were "just there to fill the plane" didn't really make sense. After all, according to his logic, if economy wasn't profitable, airlines would get rid of it. @Roger fascinating post, thanks! @Josh G. Not sure what you mean by your "experts" comment. Most of us here are just people who like to (or have to) fly, and are trying to make sense of a complex, confusing pricing system where key information is often withheld from the consumer. We "have no clue how things actually work" because your employer keeps them secret. If you have more insight than the rest of us, please share it here! I'd love to know more about how RM works. Alternatively, if your point is that working in RM makes you cooler than the rest of us...well that's pretty silly.

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iv Guest

March 16, 2017, 10:05 am

I really enjoy these videos.

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Harris Guest

March 16, 2017, 9:58 am

What about Malindo Air and Thai Airways.?

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Josh G Guest

March 16, 2017, 9:20 am

@ Roger +1 Having also worked in RM this doesn't even scratch the surface. Of course FFs and observers (this blog being no exception) love thinking they're experts in our industry when they really have no clue how things actually work. With improved segmentation capabilities, IATA NDC/Resolution 787, and next gen RM capabilities this video will be even more out of line.

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