Skip to main content

Southwest Airlines' Brand Promise Goes 'Pfffth!"

In a desperate search for new revenues, Southwest Airlines is now charging passengers $10 for so-called EarlyBird Check-in.
"Southwest officials say that by paying the extra $10, you'll probably be among the first 30 people to board — the "A" group — although they won't promise it." (Emphasis mine.)
Analysts forecast the new charges adding $75 million - and possibly as much as $250 million - to Southwest's annual revenues. It's an interesting case study in pricing power and brand performance. If Southwest's fares are more than $10 cheaper compared to alternatives (which they are not, at least on the routes I fly most often) consumers may not care all that much.

But I care. And yes, it's partly about the money. For years I've gone out of my way to avoid Southwest, due mainly to their chaotic ticketing and boarding processes. There are better-organized bus companies plying back roads in the rural Third World. (Plus I hate Chicago's Midway Airport.)

You buy your ticket with no confirmed seat but must return to the very same web site 24 hours before your flight to reserve a place in some line unless you pay $10 more which may or may not get you a better place in line. WHAT? Are you kidding me? They MUST'VE modeled that process after something they found in a hospital somewhere.

Maybe I'd put up with it if I saved LOTSA money along the way. But I haven't saved money and the chances I ever will just got slimmer by $10.

"I'm now free to move about the country?" Add 'free' to the growing list of words with indeterminate meanings.


Comments

dalamander said…
Couldn't agree more. Southwest gleefully pilloried competitors who began charging fees for checked bags, and now they're adding a surcharge that doesn't even provide a guaranteed benefit (like getting your suitcase on the plane)? Kinda muddles the message a bit, doesn't it?
Jeff Barkoff said…
Not knowing the details of how it works, I'm a bit skeptical.

But, having an infant with us when we travel Southwest, I could foresee the value of early boarding at a price.

Getting on the plane early certainly discourages anyone from having to sit next to us who doesn't mind/want a crying baby.

Clearly, SW is still evolving its boarding policies and procedures, while trying to innovate and stay clear of traditional carriers policies.

Popular posts from this blog

Michael Porter On Health Care Reform

Michael Porter, writing in the New England Journal of Medicine, proposes "A Strategy For Health Care Reform - Toward A Value-Based System." His proposals are fundamental, lucid and right-on, meaning they're sure to be opposed by some parties to the debate, the so-called "Yes, but..." crowd. Most important, in my opinion, is this: "... electronic medical records will enable value improvement, but only if they support integrated care and outcome measurement. Simply automating current delivery practices will be a hugely expensive exercise in futility. Among our highest near-term priorities is to finalize and then continuously update health information technology (HIT) standards that include precise data definitions (for diagnoses and treatments, for example), an architecture for aggregating data for each patient over time and across providers, and protocols for seamless communication among systems. "Finally, consumers must become much mor

Being Disrupted Ain't Fun. Deal With It.

Articles about disrupting healthcare, particularly those analogizing, say, Tesla's example with healthcare's current state, are frequently met with a chorus of (paraphrasing here) "Irrelevant! Cars are easy, healthcare is hard." You know, patients and doctors as examples of "information asymmetry" and all that. Well, let me ask you this: assuming you drive a car with a traditional internal combustion engine, how much do you know about the metallurgy in your car's engine block? I'll bet the answer is: virtually nothing. In fact it's probably less than you know about your own body's GI tract. Yet somehow, every day, us (allegedly) ignorant people buy and drive cars without help from a cadre of experts. Most of us do so and live happily ever after (at least until the warranty expires. Warranties...another thing healthcare could learn from Tesla.) Now, us free range dummies - impatient with information asymmetry - are storming healthcare

My Take On Anthem-Cigna, Big Dumb Companies and the Executives Who Run Them

After last Friday's Appeals Court decision, Anthem's hostile takeover of, er, merger with Cigna has but a faint pulse. Good. Unplug the respirator. Cigna's figured it out but Anthem is like that late-late horror show where the corpse refuses to die. Meanwhile, 150 McKinsey consultants are on standby for post-merger "integration" support. I guess "no deal, no paycheck..." is powerfully motivating to keep the patient alive a while longer. In court, Anthem argued that assembling a $54 billion behemoth is a necessary precondition to sparking all manner of wondrous innovations and delivering $2.4 billion in efficiencies. The basic argument appears to be "We need to double in size to grow a brain. And just imagine all those savings translating directly into lower premiums for employers and consumers."  Stop. Read that paragraph again. Ignore the dubious "lower premiums" argument and focus on the deal's savings. $2.4 billion saved