Mirriam-Webster dictionary has hailed the “Pandemic” as the word of the year (2020 if you are a little behind on your calendar). It may very well be “Lockdown”.
At my work, with friends from all over the world, we are swapping stories of how our respective governments are dealing with (or not dealing) the pandemic situation.
Seemingly a universal approach is to close down gyms, swimming pools, restaurants, and other places where people tend to spend time together (I was surprised to learn that Jamaica didn’t lock down gyms but introduced a curfew instead and it worked. Go figure.).
In Poland, for example, only organized groups are permitted to exercise, but gym workout equipment and free weights cannot be accessed “on-demand” legally. Legally is the key word here – From the same friends, I get some anecdotal stories about underground gyms, saunas, and hair salons.
In “Secret Gyms and the Economics of Prohibition”, the NPR’s Planet Money Newsletter authors launch an investigation into the illegal ways the gyms are operating under new rules. The story may very well be recounting ordeals of getting alcohol in the 1920s:
“Take the case of Christina, a paralegal and gym enthusiast from Tucson, Arizona, who asked us not to give her last name for fear of being labeled a snitch “
Apart from underground speakeasy establishments, there is of course a grey area of businesses striving to survive and clearly pushing the interpretation of the law. Since outdoor dining is still permitted, enterprising restaurant owners are coming up with outdoor, well, buildings:
I admit it is hard to judge these efforts to help the business stay afloat. Setting aside the responsibility for creating conditions helping spread the infection, I am surprised how quickly the history makes a full circle.
We are back in the roaring 20s, meeting in underground illegal clubs to get our fix of the forbidden fruit (in this case, meeting in person).
I’m most curious what is the 21st century equivalent of Jazz.
Surprising Effects
Did you know that the Frequent Flyer programs are bigger businesses than the airlines themselves?
The Financial Times pegs the value of Delta’s loyalty program at a whopping $26 billion, American Airlines at $24 billion, and United at $20 billion. All of these valuations are comfortably above the market capitalization of the airlines themselves — Delta is worth $19 billion, American $6 billion, and United $10 billion.
Byrne Hobart explains in this fantastic article about classic airline economics:
Loyalty programs aren’t a great business paired with a terrible one, they’re the part of a single unified business that makes it viable. An airline without its highly profitable loyalty program is a company that faces high labor costs, volatile fuel prices, and a rapidly changing demand environment. With loyalty programs, that’s offset by a high-margin, high-growth side business.
Local women crochet sweaters to shield rescued elephants from cold, Elephant Conservation Care Center, India
Time for something heart (and elephant 🐘) warming!
