Planned obsolescence is a business strategy where products and services are designed with a limited useful life, encouraging consumers to make repeat purchases. This strategy is evident in various sectors, including the travel industry. Here, we explore how airlines and hotels employ planned obsolescence to maintain and boost revenue.
Airlines
1. **Frequent Aircraft Updates**:
- **Practice**: Airlines often introduce newer aircraft models with enhanced features, improved fuel efficiency, and greater comfort.
- **Impact**: These updates, while necessary for safety and efficiency, encourage travelers to choose airlines with the latest fleets, driving up demand for newer services and making older planes seem less appealing.
2. **Class Upgrades and Amenities**:
- **Practice**: Frequent changes in cabin configurations and amenities, such as new seating arrangements, in-flight entertainment systems, and premium services.
- **Impact**: These periodic enhancements entice travelers to pay for upgrades, ensuring airlines can continually market new and improved experiences to passengers.
3. **Mileage Programs**:
- **Practice**: Frequent flyer programs are designed to incentivize repeat business. However, the devaluation of miles and points over time encourages travelers to use them quickly before they lose value.
- **Impact**: This strategy drives more frequent travel as customers aim to maximize their rewards before they become less valuable.
Hotels
1. **Renovations and Upgrades**:
- **Practice**: Hotels regularly renovate and update their rooms and facilities to stay competitive and attract guests.
- **Impact**: This practice can make older properties seem outdated, pushing travelers to seek out newer or recently renovated accommodations, thereby maintaining a steady flow of business.
2. **Loyalty Programs**:
- **Practice**: Hotel loyalty programs often have point expiration policies and changing reward structures.
- **Impact**: These encourage guests to book more stays to maximize their benefits before points lose value or redemption thresholds increase, ensuring continued patronage.
Feelings and Implications
Planned obsolescence in the travel industry can lead to mixed feelings among consumers. While frequent updates and new offerings enhance the travel experience by providing more comfort, convenience, and efficiency, the constant push for newer services and products can be perceived as a strategy to extract more money from travelers. This can lead to frustration and a sense of being manipulated.
Conclusion
In the travel industry, planned obsolescence drives innovation and improved services but also ensures ongoing revenue streams for companies. While travelers benefit from enhanced experiences and greater choice, they may also feel pressured to spend more frequently.