Is Southwest Airlines Clipping Its Own Wings?
Southwest Airlines recently announced that they’re walking away from open seating, a 50-year-old practice that’s been a major component of their overall brand experience.
Soon, the legendary economy airline will be transitioning to assigned seats and premium seating with extra legroom – just like all of the other airlines.
Sure, the move could drive up profit margins in the short term, but what about the long-term costs? A change like this could do damage to a brand experience that’s fueled one of the airline industry’s few challenger brand success stories.
Why do they “wanna get away” from open seating?
According to Bob Jordan, President, Chief Executive Officer, & Vice Chairman of the Southwest Airlines Board of Directors, the move is “part of an ongoing and comprehensive upgrade to the Customer Experience, one that research shows Customers overwhelmingly prefer.”
It’s important to note that the airline has also been under mounting pressure from investors to make changes in the wake of “disappointing” financial results. Southwest’s statement announcing the move made sure to state that the airline’s leadership is committed to, “serving the interests of and creating lasting value for our Shareholders, who have provided us with highly valuable and candid feedback on our performance and path forward.”
So yes, the fact that private equity vultures seem to be circling probably played a role in this brand-altering decision.
How will this impact Southwest’s brand?
A brand is more than a look and feel. It’s the perception people have of your business. Branding is how your business connects with people to shape that perception, and the customer experience is an enormous part.
There are certainly pitfalls of the open seating policy, and more people have been taking advantage of the system in recent years, making it less enjoyable and more frustrating for passengers who actually play by the rules.
That said, Southwest Airlines still ranked as the #1 Airline for Economy Class Customer Satisfaction in the J.D. Power 2024 North America Airline Satisfaction Study for the third year in a row. That doesn’t happen by accident. The Southwest brand is known for their excellent customer service, friendly staff, fair prices, and of course, their open seating policy.
Whether you prefer open seating or not, the fact that Southwest was the only airline to offer that experience made their brand more memorable and unique.
To throw away the equity of a true experiential brand differentiator like open seating seems like a big gamble. While the move might juice profit margins in the short term, it’s also abandoning one of the experiences that many Southwest superfans love about them.
What do Southwest’s customers have to say about it?
It’s probably true that a majority of airline passengers out there actually prefer assigned seating. I’m one of them. But some of the best brands out there are the brands that understand and fully embrace the fact that they’re not for everyone. They cater their experience to fit a very specific set of needs and customers, and those customers end up loving them for it.
Here are some comments left by loyal Southwest customers on Reddit after the announcement was made:
Even a few fliers who weren’t fans of Southwest’s model recognized their value…
Will this end up being a smart move for Southwest?
Time will tell. I don’t have a crystal ball, and smart people who are close to the situation and make a whole lot more than I do get paid to make these decisions. Pressure from an investor with a massive multi-billion dollar stake in your company certainly complicates things, too.
Sadly, as a branding pro, I can’t help but feel this move will likely end up costing Southwest, and its most loyal fans, in the long run.
Prices will climb. Open seating will go extinct. Differentiators will dwindle. Parity will set in. Profit margins might increase, but Southwest’s disappointed loyalists might also start looking elsewhere. After a while, the brand will have lost its meaning in the hearts and minds of domestic travelers, and the Southwest brand may very well find itself grounded — permanently.
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