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Writer: Patrick Whyte

When writer Venkatesh Rao coined the term Illustrator: Vanessa Branchi
“premium mediocre” in 2017, he probably didn’t
realize how well it would end up describing the
zeitgeist. Rao calls them the “rent-over-own, everything-as-
a-service class of precarious young professionals
It’s a phrase fit for our sliced-and-diced times auditioning for a shot at the neo-urban American
where companies are increasingly looking for dream.” It is this group of people that compa-
new ways to sell us average products at luxury nies are targeting with their premium mediocre
prices. It doesn’t matter which part of the sector offerings. You can tell because of the number of
you look at, airlines, hotels, and tour operators hotels now offering avocado toast — or avocado
are all trying it. anything — with their breakfasts.

Premium economy isn’t a new concept in the Premium mediocre consumers are aware they
aviation industry. What is new is the way they have are consuming premium mediocre goods,
divided up regular old economy. Legacy carriers but do so anyway. It is not “clueless, tasteless
have copied the likes of Southwest, Ryanair, and consumption of mediocrity under the mistaken
most notably Norwegian and introduced new impression that it is actual luxury consumption,”
fare classes. Rao argues, rather it is “dressing for the lifestyle
you’re supposed to want, in order to hold on to
Sometimes they are offering customers an inferior the lifestyle you can actually afford — for now —
product at the same price. At other times, they while trying to engineer a stroke of luck.”
are trying to convince us to part with a bit more
money for something that looks slightly fancier. Airlines aren’t the only travel sector tapping into
It’s marketing 101 redefined for the Instagram this cultural movement. Tour operator Thomas
generation. Cook is consciously going after the millennial
market with its new branded hotel product:
In March 2018, Virgin Atlantic split its economy Cook’s Club, which goes further than avocados
product into three different segments: economy by actually talking up its vegan food offering.
light, economy classic, and economy delight. It’s the same in the next generation of boutique
PREMIUM Economy light is a carry-on only fare and is similar hostels. As the CEO of Generator, Alastair Thomann,

said: “You’re charging 4-star rates and you’re
to what other transatlantic carriers have done.
MEDIOCRE Economy delight, however, is a different beast. offering a 2-star service, which is what makes it
so profitable.” By picking a design-led “luxury”
It is trying to convince passengers to part with
hostel over the nondescript regular, variety
an extra $127 or so based on a random search for
GOES flights between New York and London. And what consumers are signalling willingness to make
a premium mediocre choice.
do they get for that? Mainly, a bit more legroom
and priority check-in and boarding.
MAINSTREAM Rao identifies millennials, especially those on Boutique hotel pioneer Ian Schrager has long
talked about the split within high-end hospitality
the urban east and west coasts of the U.S., as and this inspired him to launch Public hotels.
Skift Take: the prime audience for the premium mediocre The concept of luxury-for-all, while not quite the
phenomenon. Perhaps because this group — same as premium mediocre, touches on some
Despite what the name might suggest, premium mediocre isn’t and it’s the same in Europe, Asia, and Africa — is similar themes.
necessarily something bad. It’s just that after a while consumers are acutely aware of its standing in society with a
desire bigger than any other generation to be Rao’s essay, which appeared on the Ribbonfarm
going to cotton on to the fact that simply adding avocado to every seen in a certain way. longform blog, looks a lot at the consumer
meal doesn’t always make it more luxurious.

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