PaigeSavage has some very insightful commentary. She is clearly looking at things through a micro-economic lens, which paints a clearer picture than the macro lens of some of the other commentary.
As a provider since 2005 who has primarily been UTR, there are a lot of factors that go into my pricing.
On a trip to Minneapolis this year, the airfare was 3x what it was in the past. The hotel was $70 more expensive per night. The cost of food was exorbitant. Although inflation is up 8% over last year, my travel costs were representative of at least a 100% increase. Are companions expected to simply absorb those increases?? How can we??
I adjust my rates when I travel/tour. If I want to go to southern California, I know to cut that rate BIG TIME, because there is a supply/demand issue at play. That's just the reality. While there are a lot of friends who will want to see me, I also have to balance my rate with knowing there are literally thousands of other providers on the rosters.
I look at my day-to-day rates in my home base of San Jose CA. My incall studio apartment rent has gone from $1,900/month (which was an AMAZING deal) up to $3,400/month. My utilities and insurance have nearly doubled in the last 2 years. Then you deal with the increase in basic costs, and it's clear to see that the market is suffocating all of us.
To say that rates 'should ultimately be determined by service' doesn't take into account other mitigating factors. My rate also considers my education & day-to-day career. I am not going to allow myself to profit fewer dollars per hour as a provider than what I would make per hour at my regular job, for example. In addition, I think we can agree that while some folks might be satisfied with a burger from McDonalds (and even those prices have gone up), other people might be more inclined to enjoy a burger from The Rossini in Vegas. The quality of the product might matter just as much as the quality of the service. In the end - yeah, it's still a burger. But is it??