Southwest Airlines is adding a fourth fare category as part of a change aimed at attracting more business travelers and increasing revenue.
The new fare level will be higher than Southwest Airlines’ cheapest tickets, but lower than the top two airline fare categories. Southwestern executives believe this will bridge the large price gap between the cheapest fares called WannaGetAway and the more expensive tickets.
Consumers who purchase a new fare level called Wanna Get Away Plus can earn 33% more mileage points than a base ticket and transfer the value of the ticket to another Southwestern customer.
This is the first major change in Southwest Airlines’ fare system in 15 years. An airline official said the changes announced on Thursday would take effect in May or June.
Airlines frequently tinker with fares and fees in order to squeeze more income from passengers. In recent years, Delta, American Airlines and United Airlines have been competing with low-cost carriers by rolling out new, minimal “basic economy” fares.
Next, the three major airlines encourage customers to pay more for regular economy seats, including the amenities they expect.
Southwest Airlines hinted at a change in December without revealing details. The new fare level is one of several moves, including a new credit card transaction with Chase Bank, and Dallas-based airlines will increase their annual revenues by a total of $ 1 billion to $ 1.5 billion next year. I want
Executives didn’t say how much the Wanna Get Away Plus seats would cost compared to cheaper seats, but it depends on the flight.
In addition to more frequent mileage points and credit transfer capabilities, Plus buyers can fly in standby at no additional cost, even if new flights are expensive.
Southwest Airlines also adds early boarding privileges to the next most expensive fares, called anytime, to avoid preying on full ticket sales. Early boarding is a benefit as Southwest Airlines does not allocate seats. That is, the last passenger to board a congested flight arrives in the center seat.
Andrew Watterson, airline’s chief commercial officer, said all changes should be particularly attractive to business travelers. Southwest Airlines is trying to steal more business trips from Delta, American Airlines and United Airlines.
Consumers who purchase the new Wanna GetAway Plus fare level will earn 33% more mileage points than a base ticket. Nur Photo via Getty Images
Southwest Airlines’ most expensive tickets, called Business Select, are fully refunded and include early boarding, free drinks and the most frequently used mileage points. Tickets will be refunded at any time, but WannaGetAway tickets will not be refunded. All three include up to two check bags for free (not offered by other US airlines). It also includes free ticket changes.
The majority of Southwestern customers buy WannaGetAway fares.