Saturday, October 17, 2009

It's on when it comes to fees at Southwest Airlines

Southwest Airlines likes to say "it's on" when it comes to flying their airline. They even run ads saying, "Why do the other airlines hate your bags?" (I actually like those ads). On Southwest, your first two bags fly free (other airlines charge various fees). What they don't tell you is they plan on collecting "ancillary revenue" on their most loyal customers. These are the members of their Rapid Rewards program. New changes for the program are planned for 2010 and nicknamed Rapid Rewards 2.0.

I will be the first to say Southwest Airlines has one of the richest frequent flyer programs in the industry. I have earned a Companion Pass on four different occasions. Rapid Rewards Members who fly 50 or more roundtrips (or receive 100 credits through flight and partner use) within a 12-month period receive a Companion Pass. A Companion Pass allows one person of your choice fly free when traveling with you anytime for an entire year. Brilliant perk!

What is not so brilliant is Gary Kelly, CEO of Southwest Airlines, talking about charging for various features in the Rapid Rewards 2.0 program. Gary says being a member in the Rapid Rewards program is a choice. Let me tell you Gary - the bigger and more important choice is flying your airline. That choice isn't yours, that choice is ours. Are you kidding me? We are the folks that have kept you in the black all these years.

Now I have a decision on my hands. Keep flying Southwest or spread my love to other airlines? I live in Portland, OR and travel almost every week. Although Southwest Airlines has a good schedule out of and into PDX, so does Alaska Airlines. On most flights both companies are competitive on fares. With Alaska Airlines, my loyalty means first class upgrades (not available on Southwest) and usually includes a meal (not available on Southwest). There are also direct flights on Alaska Airlines to many of the locations that I fly to (usually at least 1 stop on a Southwest flight). I normally buy a Business Select fare on Southwest (kudos to Southwest on creating this option). My wife is great at scoring me an A1 and the fare also includes a free drink and extra Rapid Reward credits - but an assigned seat is often most important to a business traveler. Also - on my last attempt to book Rapid Rewards travel, I could not use a Standard Award and was forced to convert two awards to a Freedom Award. For upcoming holiday travel, I could not even use a Freedom Award. That was a disappointing first!

Quick inventory turns may keep Southwest ahead of the competition in terms of profitability. However the direction of the Rapid Rewards program is starting to feel... well let's just say UNITED! Hey Gary - we appreciate the jokes and the funny songs from you flight attendants, but leave your most loyal customers (Rapid Rewards members - especially Companion Pass holders) alone. After all, what would Herb say?

One thing that I would pay an extra $10 for would be a guaranteed overhead luggage space. Since you already sold me a seat, how about guaranteeing me a space for my carry on luggage?

Respectfully,

The Travel Brain

Full Disclosure: For the benefit of the FTC, I did not receive any compensation directly for this blog post. All opinions expressed are strictly those of The Travel Brain.

1 comment:

  1. Very Interesting, I like knowing what perks I have to look forward too and what Im not wanting to pay for. Is there going to be a grading system for flight attendants and pilots in the future? Looking forward to hearing about your next experience!

    ReplyDelete

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