Southwest Says ‘No’ to Basic Economy
-
More from SmarterTravel:
- Southwest Promises Three Times More Bandwidth for Inflight Wi-Fi
- Southwest Pilots to the Airline’s CEO: You’re Fired!
- New Southwest Perk for Elites: Free Priority Standby
Basic economy fares may be sweeping through the industry, but one airline says it’s staying out.
Southwest CEO Gary Kelly said today that his carrier has no interest in dividing its cabins into multiple levels of service. “What you have at Southwest is a very strong brand position in customers’ minds,” Kelly said on a fourth-quarter earnings call,
. “The whole free bags and no change fees becomes a very powerful component out of all that. So we don’t feel like we need [to change anything].”
“Every other competitor, they lavish attention on elite customers and ignore the rest,” Kelly said. “That is our biggest opportunity because we don’t ignore anybody.”
Related: As Revenue Declines, Southwest Mulls New Airline Fees
Kelly’s comments come as several major carriers are implementing so-called “basic economy” fares. While the details vary from carrier to carrier, these fares generally cover little more than a seat on the plane, mimicking the stripped-down service (and lower prices) of ultra-low-cost-carriers.
United’s
, which
American copied almost directly
, is particularly spartan—our own Tim Winship dubbed them “nasty fares.” It includes only one personal item and prohibits ticket-holders from using the overhead bins. Delta’s
doesn’t restrict carry-ons.
Basic economy passengers aren’t prohibited from using amenities included in other economy fares, such as inflight entertainment. But, in most cases they board last, can’t change their reservations or fly standby, aren’t eligible for upgrades (United basic economy passengers aren’t eligible for miles, either), and can’t choose their seats in advance.
Of course, passengers have to
choose
these fares, and those who do are presumably willing to make sacrifices in the name of savings. Still, this erosion in service is unsettling for some, and represents the industry’s fixation on moving toward
a la carte
pricing models. While cheaper on paper, this doesn’t necessarily add up for the consumer, who now pays a premium for “perks” such as choosing where to sit.
Kelly says offering that choice isn’t worth it. “Any time we contemplate offering customers a choice, we debate that heavily because complexity drives confusion and it clouds the brand.”
Smart Hacks for Hassle-free Travel
Learn from the pros with travel tips and tricks that make getting from here to there a breeze. Travel smarter one email at a time.
Subscribe
By proceeding, you agree to our Privacy Policy, and Terms of Use
Love travel tips like this? Don’t miss out.
Learn from the pros with travel tips and tricks that make getting from here to there a breeze. Travel smarter one email at a time.
Subscribe
By proceeding, you agree to our Privacy Policy, and Terms of Use