00:00There are too many options when you're booking a flight these days, but there's a reason for that,
00:03and it's actually making life better for everyone. Everyone likes cheap fares, but do you really want
00:08to pay extra for a checked bag or to pick your seat? Airlines are even doing it for business
00:12class now. You might get the flatbed, but you have to pay extra for the fancy lounge or to pick
00:17your
00:17seat. And the next thing you know, they're probably going to take away the ice cream too. These new
00:21tiers may feel like classic corporate upsells, but they actually allow the airline to pass on
00:25more savings to you, the customer. Consider that flying has never been cheaper or that more
00:29Americans than ever are flying, but that doesn't change the fact that flying is now a less pleasant
00:34experience. And this actually mirrors what's happening in the larger economy. Americans are
00:38richer than ever, but they're also more dissatisfied. Why? Because as the upper middle class expands,
00:44they demand more goods and services, but the supply is not infinite. So businesses are responding with
00:49relentless price differentiation. The expenders pay the maximum while basic features get unbundled in
00:55the savings get passed down along the line. Whether it's air travel, subscriptions, events,
01:00or the rest of the economy, you can expect more of your life to be tiered like this.
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