The Southwest Airlines can place some leisure travelers on rivals with its latest decision to start loading on controlled bags, according to an industry expert.
It was a policy along with open seats-that helped the carrier change himself from his competitors for over 50 years and appeal to a wide range of budget-conscious travelers.
Southwest announced this week that it would only offer free -controlled bags for some loyal and business class customers starting May 28.
“While the idea of adding bags of bags can work well in a spreadsheet, the southwest is in danger of losing the part of the leisure travel market,” Peter Mcnally, the global head of the Fox Bridge Sector, for Fox Business.
The change came a few months after the company warned that it will start offering seats and providing premium opportunities for seats on all flights, another action created to increase profits by loading higher rates for premium countries across its network.
Both movements highlight how the company’s financial challenges have forced her to reassess her access.
The southwest was also among some of the major US airlines this week that called for their quarterly financial expectations as the industry claims with the demand of software from economic uncertainty and other factors.
With its latest change, the southwest can be in competition for longer cracks, but not in its entire business.
Southwest has many short load flights that take care of travelers who usually go for a day or a one-night trip and do not require controlled baggage. For these types of rapid tips, the southwest will continue to offer some of the most competitive tariffs in the market.
“The family of four children flying to Orlando in the southwest now has the most costly competitive opportunities, as American, when adding the bag fees,” Mcnally said.
For example, the “Big Three” airlines – Delta, American and United – “have powerful loyalty programs that are making them more competitive in the American leisure market while offering some premium options,” Mcnally said.
Southwest also said this week that he plans to introduce a new base for his tickets at the lowest prices purchased on or after May 28 before he starts offering more premium seats with an additional fee for a higher fee.
“While our experts see the possibility of income from more premium options, those opportunities will take time to play as the cabins have to be reconfigured,” Mcnally said, but “is not the immediate increase in income from saying,”
However, Mcnally said the basic economy will be quite standard, as the airline will not be able to keep prices so much.
“The low cost of the airline industry has found low limited prices. The spirit was bankrupt, after all. The costs increased during the second of the pandemia in the working rates and stayed there, ”he said, adding that these are contractual and will not change.
Fuel costs have fallen in recent years, offering relief, but the ability to deliver extremely low tariffs is still limited. Said mcnally.
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