Quote:
Originally Posted by tallpilot
Southwest spent its initial years marketing to business travelers. They achieved cost savings through productivity not by eliminating or charging for service options.
They get lumped in with discount carriers now but it's historically inaccurate.
SW marketed cheaper fares at full service with an emphasis on their rewards programs which happened to be popular to business travelers. They didn't mostly TARGET business travelers specifically vs others. Their emphasis started out being a cheaper ticket with quality (albeit sometimes comical/quirky) customer service - via an appreciation of its employees. They also had lower overhead/costs in smaller airports (Dallas and Houston) as well as a more efficient fleet than the traditional fleets of the 70s. It was further assisted by wise business decisions like fuel hedging and paying labor less (but with substantially improved benefits packages - like friends and family discounts, etc.)
Fast forward 20-30 years and the modern ULCC model takes only small parts of the SWA model and cheapens it even more. Cheaper and more fuel efficient fleets. Paying labor considerably less but without the benefits. Gimmicky promotions and nickel and dime ancillary charges.
The new ULCC model worked for a while. However, the REAL issues with the model today is that it never had a great service presence both to the customer and the employee. Gate space wasn't discounted and no fuel discounts were realized. Also, the seat is extremely uncomfortable (until recently). That, coupled with a lack of customer friendly website has resulted in a model that proves to be less and less sustainable as the desires/tastes of the modern traveler evolve. Right now, purchasing a ticket on Spirit or Frontier website is an annoying experience and many of the destinations are served by other airlines that are only slightly more expensive overall but offer a MUCH more pleasant flight experience. Essentially, the ULCC in the US is just a faster version of Greyhound. SWA is no longer a ULCC or even an LCC - it doesn't need to be since it has such a loyal following via its rewards program.
The result - the ony real discount is the aircraft lease and a slight fuel burn advantage.