For the past 50 years, Southwest Airlines used an open-seating model, where passengers picked seats on a first-come, first-served basis. Today, the carrier announced that’s set to change, as it plans to introduce assigned seats and premium seating options. The announcement coincided with disappointing second-quarter profits, which dropped 46% from a year prior.
Southwest Airlines changes course based on customer research
Before making the change, Southwest conducted consumer research, which showed a strong preference for assigned seats. Additionally, the new policy should strengthen revenue and improve financial results.
According to Southwest, “The research is clear and indicates that 80% of Southwest customers, and 86% of potential customers, prefer an assigned seat. When a customer elects to stop flying with Southwest and chooses a competitor, open seating is cited as the number one reason for the change. By moving to an assigned seating model, Southwest expects to broaden its appeal and attract more flying from its current and future customers.”
Besides that, premium seating options with enhanced legroom cater to another research-based passenger preference. Though cabin designs are yet to be finalized, Southwest plans about one-third of seating fleet-wide to be premium.
Bob Jordan, President, CEO, & Vice Chairman of the Board at Southwest, stated, “Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice— at the right time—for our customers, our people, and our shareholders.”
“We are excited to incorporate customer and employee feedback to design a unique experience that only Southwest can deliver. We have been building purposefully to this change as part of a comprehensive upgrade to the Southwest experience as we focus on customer expectations – and it will unlock new sources of revenue consistent with our laser focus on delivering improved financial performance.”
