Unfortunately, due to the economics of airline class[0], privileged passengers account for about 70% of airline revenue.
There is some differentiation on the service you offer, bigger seats, maybe being able to lie flat.
But that's about it, and since that's all there is the airlines just start making shit up.
"Global Services (and generally 1K) members have their food orders taken first"[1]
Really, this is a thing? Just think about how ridiculous it is. And that it obviously has to be codified somewhere in the rule book. Along with all the other silly rules that aren't public. A friend of mine is a frequent traveller, and he told me a lot of the little tricks you have to pull to get good service.
"GS members have their own phone line, [..] the agents are based in the United States and are extremely helpful."[1]
Well, my Lufthansa agent was extremely helpful to "random joe with economy class ticket".
[1] https://thepointsguy.com/2016/04/top-perks-united-global-ser...
Movie theaters make money off of marked up popcorn and pop, videogames make money off of DLC and in-game purchases, etc.
When your side business starts requiring you to sabotage your main business to ensure people engage with the "side" part, is when things get interesting.
Sometimes it's better to avoid the race to the bottom altogether via regulation, ensuring that anyone who wants any improvements needs to improve things for everybody, or deal with the status quo.
That's the logic many Canadians use for vociferously opposing private schools (and I agree with it).