Southwest Airlines announced some policy changes, including dropping its long-standing ‘bags fly free’ policy, which had distinguished the airline from other carriers for many years.
The changes kick in on May 28, just in time for the busy summer travel season. Travelers who are elite tier Rapid Rewards A-List Preferred Members or purchase a Business Select Fare will still be allowed to check up to two bags for free. Rapid Rewards Credit Card members can check one bag for free. All other passengers will be charged for their first and second checked bags.
There is no word yet on the cost of checking luggage, but the airline said it would be in keeping with industry standards.
Some industry experts warn that this change could erode customer loyalty.
“This is how you destroy a brand. This is how you destroy customer preference. This is how you destroy loyalty. And this, I think, is going to send Southwest into a financial tailspin,” airline industry analyst Henry Harteveldt of Atmosphere Research Group said, per CBS News.
“Southwest, with these changes, becomes just another airline.”
“When 97% of your customers say they fly you because of your ‘bags fly free’ policy and you make dramatic changes to it, you are telling almost all of your customers, ‘Your business doesn’t matter to us anymore,'” Harteveldt added. “We are watching an airline self-destruct. This is the equivalent of deliberately sailing a ship into an iceberg.”
However, Bob Jordan, Southwest’s CEO, said the new baggage policy will help the airline remain competitive in the industry.
“We understand this is a significant change for our customers, but it’s necessary to ensure the long-term success of our airline,” he said, according to KRLD 1080.
The airline also announced adjustments to its Rapid Rewards customer loyalty program, with customers earning more points on the Business Select fares and fewer points on the lower-cost Wanna Get Away and Wanna Get Away Plus fares. Redemption rates will now vary depending on flight demand.
Southwest will soon introduce a new Basic fare designed to attract “consumers who value fare above everything else,” according to the airline’s press release.
Southwest’s new initiatives “will help us return to the levels of profitability we all expect, and to support our collective long term success. It’s also about adapting to what our customers want,” said Jordan, per CBS News.