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Getting Down to Business

Nov 07 2007

As you can tell from our announcement today, we have a lot of exciting news for our business travelers and our frequent Rapid Rewards Members, and these enhancements go into effect tomorrow, hand-in-hand with the systemwide rollout of our new streamlined boarding procedures.  Much of my time and focus (and that of the entire Marketing Team) over the past year or so has been devoted to these changes, and I see them as reconfirming the vision of our Founders, Herb Kelleher and Rollin King, who envisioned an airline that would allow business travelers to park the car and travel by air.  Herb and Rollin intuitively knew that business travelers want safe, affordable, frequent, and friendly flights that provide outstanding value for their money, and today's announcement is dedicated to that goal.

Road Warriors have special travel needs; their plans usually change at the last minute; and because their time is so important, they often arrive at the airport just before boarding begins.  If ever there was an airline that recognized the benefits of productivity, it is Southwest, and while great fares are extremely important for business travelers--and their companies--making the most of their time is critical.  The exciting changes that we have announced today will help these Customers meet both their productivity and budget goals.  We have a great interactive page at southwest.com, and it will provide you specific details.

However, I do want to touch on the more significant aspects of these changes.  Our new Business Select Fare category ensures that, for a few bucks over our Business Fare, our Business Select Customers will be among the first to board and will also receive extra Rapid Rewards credit for their travels and a free cocktail (or beer or wine).   Along with this new fare category, our current unrestricted walkup fare is being renamed our Business Fare, and it gives business travelers total flexibility in their travel plans.  And, we haven't forgotten our leisure travelers with our Wanna Get Away Fares that offer our world famous discounted leisure fares.  (DING! fares remain generally our lowest fares and can only be accessed through the DING! "widget," which is downloaded directly to your desktop.  To sign up for DING!, click here.) 

Along with the changes in our fare platform, you will see enhancements at southwest.com as we have simplified our initial fare displays to help you find the fare that best suits your travel needs.  The Wanna Get Away fare section will always show the lowest available fare (again, except for DING! fares) for your selected travel date.  Searching for lower fares on other travel dates is also easier now with the newly improved "Southwest Shortcut."

Aside from new fare product and web display, we have another exciting enhancement for our most frequent travelers, the Customers we call our A-Listers.  To be a part of this A-List, you don't have to walk a red carpet, hire a publicist, or hide from the paparazzi; you just need to complete 32 one-way flights (16 roundtrips) in a 12-month period.  Once you reach this milestone, you move to the A-List, and we will check you in automatically for your flights and hold your boarding pass(es) for you.  All you (or your publicist) have to do is print out your preassigned boarding pass and be at the gate at least 20 minutes before departure.  We'll do the work for you.

Another exciting change is the availability to redeem two Standard Awards in our Rapid Rewards frequent flyer program for an unrestricted Freedom Award. We listened to our frequent travelers who wanted "last seat availability" on our flights, and we're introducing this new program today. With the exception of a few select blackout dates, Southwest is making it possible again to redeem frequent flyer Awards for unrestricted travel.

Today is exciting because these new enhancements give us the ability to differentiate our product to meet the differing needs of our Customers without having to change our decades-long dedication to low fares and great Customer Service. I am hoping that you will be just as excited as we are about these enhancements to our product because we really want to be your airline of choice for both your business and personal travel needs.

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Comments

Suggestion for the Business Select program. Offer online upgrades from standard fare to BS. My company travel policy does not allow booking of the Business Select, but I travel enough that I would be willing to pay for an upgrade online to BS for the flexibility.
High on Southwest

Hi DeAnna,
We certainly appreciate the courage, skill, and sacrifice of firefighters like your husband, and we salute him. If I can give you some background about government fares, I think it will answer your question. These fares are negotiated directly with the specific government entities for individuals traveling on government business. Usually they only apply to state and federal governments because of the quantity of travel involved. It is very rare to have a negotiated rate with a municipality--simply because the volume isn't there. With a government fare, we can offer a lower rate because we know we will have a set volume of travel, and the government can control travel costs, since they are the ones who will be paying the bill. Because the governments directly pay for these fares, they are the ones who control the form of payment for the tickets. Prior to corporate style credit cards, they would issue government travel orders or GTOs to purchase tickets. Today, the individuals who qualify for government travel have governent-issued travel cards, and we are bound by the contracts with those governments to accept this specific form of payment.
Brian

I do not understand the policy that "Government Employees" can only get a government rate if they have a government issued credit card. At various other businesses, my husband, as a City Firefighter (thus employed by our local government), is always given a discount, and has never had to provide a government issued credit card. These guys aren't even paid close to what they're worth, and I can certainly assure you that our local government would never pass out a credit card to them, even when they travel for the City.

I am very disappointed with the new Rapid Rewards program. Rewards are practically worthless now, as it is nearly impossible to find seats on any flights I want. I am going to get an American Airlines credit card and quit using my Rapid Rewards card--the $60 fee is crazy, the "rewards" useless, and the increase in the amount it takes to earn a "reward" is unreasonable. This used to be my favorite airline--the first one I thought to use for any trip. This is no longer the case.

Great choice of words. "Freedom Award"'
Pay double for a flight and somehow imply that it is "FREE" ?

Double for nothing - great concept.

Kevin, How can I get you to stop sending me RR Credit Card offers every week. I really DO NOT want your Visa card and am getting a little irritated that I can't seem to get removed from you mailing list. Stop the waste!

Feels a bit like a blog of shame. I feel that this change undercuts my loyalty to the airlines by 50% (that our awards are valued at 50%), so goes my loyalty. The airline works hard to build the loyalty, but apparently is working hard to lose it.

I must confess that I have not read all 285 prior comments on this subject. However, I did read enough to get the idea that few like the new boarding system, fare structure, and the devaluation of our rapid reward awards. On the latter subject, for instance, I find that there are no "standard" awards available for a trip from Houston to Los Angeles for Palm Sunday weekend, but plenty of seats on all flights at all fare levels. And, of course, plenty of "enhanced" awards tickets are available. This is the first time that I have not been able to find award seats this far in advance. I take that as evidence that Southwest has greatly reduced the number of "standard" award seats. How does this benefit customers?

I will reiterate several points made by others previously:
1. Numbered boarding passes are progress - though many do not agree.
2. The system of assigning the boarding numbers in NOT progress.
3. Families and those needing help should be boarded first. This allows them to stay together and the rest of us to sit far away - except for those unlucky "C" pass holders.
4. The new "twofer" for rapid rewards awards sucks - and is not worthy of Southwest. This sounds like something Continental would do (and has).
5. I do not object to receiving more rapid reward credit for paying higher fares. This makes good sense and rewards the traveler who pays more, for whatever reason.
6. Southwest is no longer automatically the cheapest seat in many markets - even the senior fare has recently gotten out of hand. This is not progress, either.

As a resident of Houston I have alternatifves to Southwest - Continental, AA, UA, USAir, Delta - just to name a few. With your new policies, these also-rans are starting to look more attractive - a good trick, to say the least.

I am hoping to see some major adjustments in your new policies. After all, hope springs eternal.

B.K.

It is only more money for SW if you buy their tickets. SWA is no longer on my list. They lost their focus. They used to be different, now they are the same if not worse.

What a shame. The sad part is the managers that thought this up probably go home and tell their wife and kids what a great job they are doing! Guess Again!

Dear Kevin and SWA...

So... I thought I would wait a while before commenting on the new RR program. I am going to do my best to refrain from spewing any anger or hostility, but please forgive me in advance if any happens to leak out as I share my observations.

Please keep in mind that I refrained from commenting until I "experienced" your new program, and didn't just respond based on speculation.

I would like to refute the comment you made to Dennis on an early post that this program was created as a "win-win for both our frequent travelers (such as yourself) and Southwest." This program is OBVIOUSLY not for the benefit of any traveler, let alone the business traveler as you say, here is whyÃ