Skip to main content

(DAY 916) Paying for exclusivity in services

· 3 min read
Gaurav Parashar

Paying for exclusivity is at the core of many products and services, especially in travel and events. Business class tickets and VIP tickets are built on this idea. They offer more comfort, better service, and faster access, but the real differentiator is exclusion. By paying more, one avoids the crowd, reduces waiting, and shares space only with others who have made the same choice. It is less about the seat or the meal and more about the filtered environment that money creates.

This model works because demand is not just for utility but also for separation. The business class cabin on a flight does not exist in isolation—it is meaningful because the economy cabin exists alongside it. Similarly, VIP tickets at concerts or matches matter because they provide distance from the general audience. Exclusion creates value, and companies price it accordingly. The higher ticket price is a way to ensure that only a smaller set of people access that level of service, reinforcing the exclusivity further.

The psychology behind this is consistent across industries. People are willing to pay not only for tangible upgrades but also for a curated gentry. Traveling with fewer passengers, attending an event with a quieter section, or accessing a lounge with select entry are all experiences defined by who is kept out as much as by what is included. It reflects a broader truth about consumption—that satisfaction often comes from relative advantage rather than absolute need.

This also explains why these services remain profitable despite higher costs of delivery. The willingness to pay is not strictly about comfort but about the assurance of refinement. The food on a flight could be replicated elsewhere at a fraction of the cost, but the context in which it is served makes it feel different. The lounge access before boarding or the priority exit after landing are all part of creating a bubble. The same applies to VIP areas in stadiums or clubs, where the view may not be dramatically better but the filtered company makes it desirable.

Looking at it this way, exclusivity becomes a product in itself. The service is designed around scarcity, and the price ensures that scarcity is maintained. Paying for business class or VIP tickets is essentially paying for the right to limit access. It is not always rational in terms of value for money, but it aligns with how markets shape themselves around human preferences. The model is unlikely to change because the desire to separate and refine experiences is persistent. Businesses understand this well, and customers continue to reinforce it by choosing exclusivity whenever they can afford it.