Does cost correlate to service?

If you are paying more, do you get better service? Some would expect so, and that is what is worth underlining.  Higher cost or price point may translate into a higher expectation of service. Conversely, a lower cost or price point may create a lowered expectation of service.

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Let’s look at the airlines. When you fly (and pay for) first class, you are assuming that a good portion of the additional cost will cover better service and amenities. Indeed, that is what you are paying for.  If you fly on a discount airline, you expect very little in the way of amenities.  Ryanair, a European value airline, is considering charging for the use of the lavatories, so that they can remain as low cost as possible. In the airline world,  cost definitely correlates to service (although we all have experienced inflated pricing at certain times of the year, but this has more to do with supply and demand).

An area that is still not resolved when it comes to cost is the baggage surcharge most airlines charge. Does this mean that you will get better service (i.e. your bag will arrive with you at your destination)?  USA Today explores this in the article “As bag fees rise, are airlines improving baggage handling?”  The answer seems to be maybe. Unfortunately, the fee is not being applied toward service but rather to offset other costs.

Again, this brings us to the main point, which is can we relate better service to higher cost. In many cases we can, and when higher costs do not associate with better service, we will have expectations shattered.

What are your thoughts?


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