July 30, 2024
Photo by Forsaken Films on Unsplash
Will Assigned Seating Hurt Southwest Airlines?
Southwest Airlines has announced that it will move from its traditional open seating model to assigned seating with additional premium options starting soon.
This shift, reflecting evolving customer preferences for seat assignments on longer flights, marks a significant change after over 50 years of open seating. Southwest’s president and CEO, Bob Jordan, highlighted that this update aligns with customer expectations and the airline’s modernization efforts, including fleet upgrades and improved in-flight amenities like USB charging and better Wi-Fi.
The new seating arrangement will feature about one-third of seats with extended legroom, similar to industry standards. Additionally, Southwest will introduce overnight redeye flights starting on Feb. 14, 2025, with routes connecting Las Vegas, Los Angeles, Phoenix, and Baltimore. This expansion into 24-hour operations aims to attract more customers and improve overall service.
Analysts have noted that while this updated seating model is a major change for Southwest, rivals have already adopted similar strategies.
According to an article by Live and Let’s Fly, “With each of these changes Southwest became just like every other carrier.” It explained that implementing seating assignments and soon charging for those seats represents a major shift in the airline’s model and makes it almost indistinguishable from its competitors.
The article also discussed how Southwest Airlines has evolved into a major U.S. carrier with higher prices and expanded routes. The company was originally focused on offering relatively cheap, short-haul flights and unique perks, but now the airline competes with both legacy carriers and ultra-low-cost airlines. As it grows and evolves, Southwest faces challenges in maintaining its distinctive low-cost model. As a result, it is adopting legacy carrier strategies, including higher ancillary fees and more conventional airport hubs. This shift to a more traditional business model forces Southwest to continually innovate in order to stay competitive.
CNN reiterated the fact that “the open-seat boarding process has been central to what Southwest calls its ‘egalitarian operating philosophy,’ along with no bag fees or first-class cabins.” In 2007, former Southwest CEO Gary Kelly said, “Open seating became a very strong brand component with our customers, and something that we wanted to continue to offer them — that freedom of choice.”
Southwest Airlines introduced the distinctive open seating policy in the 1970s, allowing passengers to choose any available seat, unlike other airlines that assigned seats and offered multiple upgradeable cabin classes. This egalitarian approach, driven by founder Herb Kelleher, emphasized low fares and boarding efficiency. Even though Southwest began experimenting with assigned seating in 2006, the airline surveyed customers on 200 flights out of San Diego and then another 200 in San Antonio, and the majority preferred open seating. While the airline later introduced boarding groups to streamline the process, it was the only major U.S. carrier offering open seating.
Last month, Southwest Airlines received a $2 billion investment from Elliott Investment Management, aimed at addressing the airline’s recent underperformance. Elliott plans to push for significant changes, including potentially new leadership, due to concerns over poor execution and outdated strategies. The airline has struggled since the pandemic, notably facing technology issues in 2022. Besides this new seating strategy, Southwest also recently made its fares available on Google Flights, enhancing visibility and comparison with other airlines.
BrainTrust
Patricia Vekich Waldron
Contributing Editor, RetailWire; Founder and CEO, Vision First
Brian Numainville
Principal, The Feedback Group
Georganne Bender
Principal, KIZER & BENDER Speaking
Recent Discussions
Discussion Questions
How might Southwest Airlines’ shift from open to assigned seating affect its brand identity and customer loyalty, given its history of egalitarianism and low fares?
What impact could Southwest’s adoption of legacy carrier strategies have on the competitive dynamics of the airline industry, particularly with the rise of ultra-low-cost carriers?
With Elliott Management’s investment and Southwest’s recent challenges, what strategic changes could the airline make to improve its market position while staying true to its core values?
Poll
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Having non-assigned seating has always been a point of differentiation for Southwest. However, whether it is a good or bad point of differentiation depends on who you ask. Some love it, others hate it. My gut guess is that moving to a standard model is likely to win Southwest more new customers than it loses existing ones. The other point, of course, is that assigning seats allows Southwest to start charging for premium accommodation and services onboard, which is a lucrative incremental revenue stream.
It’s a bad differentiator and frankly one of the reasons I never fly the airline. Makes me feel like a teenager, and not in a good way. Good riddance.
“Greyhound with wings” was my initial impression, years ago.
Paula, I totally agree with you. The no seat assignment policy is the worst thing about Southwest and this is a positive move for customer satisfaction. The best benefits of Southwest are the no bag fees and their liberal cancellation policy. Those two benefits are what truly differentiates them from the “major” airlines.
And flying secondary routes. There are times it comes in handy.
Herb Kelleher is rolling over in his grave. Southwest worked for years to differentiate its brand with humor, a folksy and differentiated approach, a no frills way to travel. The open seating was just one strategic approach among others to help reduce confusion and operational hassles to get the jet turned around quickly back in the air. Really it was just as much a cost saving move for the company operationally as it was a way to prove to customers they were indeed a good value at low price.
If they wanted to boost revenue, they could have created a small premium section upfront, but still leave the open seating concept alone for the rest of the plane.
Brad, you stole my line. Yes, Herb Kelleher would be rolling in his grave. There has to be another way to increase revenue… Just don’t start charging for the peanuts…
100% on those peanuts. Can you imagine if they switched to pretzels served on other airlines? Mutiny!
When Southwest’s fares are the same as those of full-service airlines, those points of differentiation fail. You have to wonder what the customer focus groups discovered.
Although Southwest superfans are vocal in their opposition, 80% of passengers surveyed preferred assigned seating. What was once a more efficient way to board a plane (and thus turn the planes around faster) has lost its competitive edge. Anybody who flies SWA often (they dominate the market share at my home airport, MKE) has seen the process devolve through the years as more people clog the aisles looking for a desirable spot, or clog the aisles with carryon bags that they could have checked for free.
I would pay for extra legroom on Southwest (as I do on every other airline), and perhaps the extra revenue from this and other changes can allow the airline to be more price-competitive again. At this point I see little difference between SW and its competitors’ fares, which is absolutely contrary to its original mission.
p.s. Keep the free bag fees, no change fees and easy use of points, please!
Maybe Southwest can raise more revenue by auctioning off thousands of numbered poles at boarding gates around the country! Might make a nice souvenir for superfans.
How many people were surveyed to get that 80% number. Just curious!
Making this drastic operational change is going to require significant changes to systems and processes.
Southwest’s adoption of legacy carrier strategies(?) I think this may be backward: it was other carriers that became more like Southwest. So like this… or not – and many won’t – I think it’s a logical, if maybe not mandatory change. SW can, and will, continue to compete on the basics: moving you from A to B cheaply and on time ( as well as not moving you from A to C to D to B 🙂 )
I have flown on Southwest Airlines 4-8 flights a year for the past 20 years – mostly solo short-haul business trips. I liked the boarding cattle call well enough. It was no more or less dehumanizing than the board-by-your-contrived-group-status routines we encounter with American or Delta. On SW I typically opt for a middle seat near the front and I’m off and running by the time most folks have their stuff out of the overhead bins.
But the experience is different when you’re with a travel companion or (worse) several family members. It becomes much harder to find seats together – even in the rear. If the trip involves one or more transfers, that stressor is multiplied by the number of boardings. I imagine those travelers had plenty of gripes about Southwest’s “egalitarian” boarding routine.
If the fares remain competitive and simple, I’ll be good either way. If the new owners at Elliott Investment treat Southwest passengers as so many dishrags from which they can wring more margins, they will lose passenger loyalty and commoditize the brand.
I always found the unassigned seats extremely stressful. I don’t know that changing this will automatically drive more purchases, though. At the end of the day, flight times and prices are driving consumers’ decisions more than anything.
I loved SWA “once” because it had better pricing and better service and because I didn’t have to fight through the piles of people that rush the gates the moment the first group of passengers is asked to board even though their boarding groups were years from actually boarding!
SWA was once the anti-airline (to me) and I appreciated the value (with a smile). I also greatly appreciated the humor. I wanted simple, no hassle, service at a great price and they delivered. And once they started offering the insanely inexpensive EarlyBird upgrade, it became a no brainer.
I haven’t flown SWA in ages mostly because the value is no longer there (for me). SWA has lost much of its “anti-airline” allure and, as pointed out by many others, their pricing is no longer a differentiator. I think that with this move they’re officially, just another airline.
This isn’t the thing that will save SWA but as long as they’re going to be like everyone else, they might as well charge like them.
Until the next SWA comes along…
Only flew Southwest for non-business and it was a hassle to try to find seats together on family vacations. Never liked the mad dash for seats and I’m sure I am not alone. While it was a differentiator and maybe when introduced was a novel idea, I think it’s time to move on.
Assigned seating is a realism that Southwest must finally accept. This is what their customers want, and Southwest knows that this is what should be done. The customer is always right and assigned seating is the reason Southwest needs to move forward to compete. On top of this, assigned seating allows Southwest the ability to collect other revenue streams (profits) for premium seating, premium boarding, and premium amenities (charging, WiFi, etc.). It also gives Southwest the ability to better define its loyal customers by offering them luggage upgrades, food upgrades, seat upgrades, boarding priority, etc. What is there not to like?
After all these years, Southwest Airlines is making some excellent strategic changes. Assigned seating will play well with business travelers who never cared much for the cattle car race to get a decent seat.
In addition, Southwest will be offering a few rows with extra leg room. Again, business travelers will fly Southwest more often.
Occasional travelers don’t mind the open seating but Southwest is smart enough to realize that with all the business destinations they serve these days, it was time for change. Db
The plane is going to take off whether it’s got assigned seating or not. Southwest needs to make money, and assigned seating is another way to monetize. Expect the next move to be priority seating in the first few rows for an additional fee.
When Southwest’s airfares became close to American’s or Delta’s for the same market, it lost its competitive edge. Why would anyone want to pay a similar ticket price and not have an assigned seat? I’ve flown Southwest a few times and have not enjoyed the seating/boarding process, which is why I choose other airlines. Moving to a more standard model will win them more business but this doesn’t mean they can ignore all other components of the flying experience. They will need to revisit their overall customer journey and it starts well before anyone arrives at the airport.
Southwest lost its cachet as “the budget airline with a difference” a long time ago. Free bags or not (which most customers don’t seem to care about), the fares are simply no lower than the legacy airlines, and frequently higher. Given that, please give me an assigned seat.
The key motivator for this change may be in the phrase of the introduction to the discussion: “…reflecting evolving customer preferences…” Like fellow BrainTruster, Paula Rosenblum, the majority of air travelers don’t gravitate to it anymore. No significant loss.
Meeting the competition is not how a brand beats the competition. This change is fine, but it’s not a differentiator.
Southwest has a problem. They’re sandwiched between Sprint and everybody else. It’s going to require bigger ideas and broader innovation if they want to compete effectively.
I have flown Southwest almost exclusively for over 40 years and do so for several reasons: I get to choose my seat, bags fly free, no puddle jumpers, and the opportunity to earn a Companion Pass so my husband flies free with me anywhere I go. SWA also doesn’t randomly cancel flights – in Chicago this is a frustration if there is even a hint of snow.
Unless SWA is running a deal, I don’t consider it a low priced carrier because rate-wise it’s on par with other major airlines. What SWA doesn’t do is nickel and dime you to death with extra fees. By the time I have booked on United I have spent several hundred additional dollars on choosing a seat, upgrading boarding position, and checked bag fees. No thanks.
As a loyal customer, I don’t like this for Southwest, it is going to become another classist airline. Its leadership is obviously caving to the very customers who hate SWA instead of listening to those who love it.
I can make really good arguments on both sides of this discussion. Personally, I’ve always liked SWA’s open-seating model, and I frequently fly SWA for personal travel. The real money in air travel are business travelers who like amenities and aren’t against paying premium fares. Business travelers don’t mind paying extra for perks or seats if it means getting somewhere directly and not going through Denver, Phoenix, Midway, or Love Field to get anywhere. I also like to get where I’m going on time; in my experience, SWA flights are often late. The open seating becomes an issue when you’re late on a connection, bolt through the airport to get to the next gate, and find the highly coveted “A” boarding group was seated a while ago, and now you’re in a middle seat.
The other perk I like on SWA, especially when flying with family, is the free checked bags. That is a huge differentiation today when I feel like I’m getting nickeled and dimed with every interaction with other airlines. If that goes away, the value prop for SWA gets pretty thin.
The inconvenient truth is that unassigned seats may have initially kept fares lower and the affectionately dubbed “cattle calls” were acceptable — but never lauded. If Southwest can now seamlessly move to assigned seats while offering the no-baggage fee perk and competitive fares, I’ll sign their praises. If the playing field is entirely leveled, I cannot commit my loyalty.
Bottom line for passengers – I don’t think customers will care (in fact, they may celebrate this change). Bottom line for Southwest – hope it brings them stability.
It’s the end of an era, as Southwest Airlines has ended its open-seating operating model.
A transformational change, which will disappoint their loyal customers, is underway, as Southwest Airlines‘s profits fell 46% as an airline, and they are taking urgent steps to increase revenue and reduce operating costs.
For some context, over its 50-year history, Southwest has had an open seat model, with passengers only assigned a boarding group and a number that represents a reserved spot within that group.
- The airline said it performed research and found that 80% of its customers and 86% of potential customers preferred assigned seating.
- “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,” it said.
- The company didn’t specify when the changes would go into effect but said it would provide more details in late September
- And it comes as Southwest faces pressure on both sides: More premium airlines are making money off economy plus seating, while ultra-low-cost carriers are stealing away budget travelers with truly no-frills flying
Southwest has long resisted altering its seating procedures. It’s been a significant part of their culture, making them a unique airline.
- But the changes come amid sharp criticism from an activist investor and $231 million in first-quarter losses.
- The airline also experienced a series of potentially dangerous incidents this year.
- The airline will still offer free checked bags. Elliott Investment Management, the activist hedge fund that invested nearly $2 billion in the airline’s stock earlier this year, had proposed eliminating the airline’s “bags fly free” policy.
Considering the rising costs to serve and the challenges that airlines are experiencing to run a profitable model, many would say that this shift was inevitable.
Assigned seating versus open seating is not as much of an issue as Southwest’s original value proposition, which it has offered from its beginning. Southwest is known for good customer service and passenger-friendly policies, such as “bags fly free,” no cancellation fees (other airlines have followed this one), and more. I remember being at a meeting with a Southwest executive who claimed open seating was a money-saver for them. Perhaps new software and technology make this a moot point. Currently, Southwest charges more for early check-in and a higher price for Business Select, guaranteeing to be one of the first on the plane. To me, this makes sense as Southwest is now considered one of the major airlines.
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Having non-assigned seating has always been a point of differentiation for Southwest. However, whether it is a good or bad point of differentiation depends on who you ask. Some love it, others hate it. My gut guess is that moving to a standard model is likely to win Southwest more new customers than it loses existing ones. The other point, of course, is that assigning seats allows Southwest to start charging for premium accommodation and services onboard, which is a lucrative incremental revenue stream.
It’s a bad differentiator and frankly one of the reasons I never fly the airline. Makes me feel like a teenager, and not in a good way. Good riddance.
“Greyhound with wings” was my initial impression, years ago.
Paula, I totally agree with you. The no seat assignment policy is the worst thing about Southwest and this is a positive move for customer satisfaction. The best benefits of Southwest are the no bag fees and their liberal cancellation policy. Those two benefits are what truly differentiates them from the “major” airlines.
And flying secondary routes. There are times it comes in handy.
Herb Kelleher is rolling over in his grave. Southwest worked for years to differentiate its brand with humor, a folksy and differentiated approach, a no frills way to travel. The open seating was just one strategic approach among others to help reduce confusion and operational hassles to get the jet turned around quickly back in the air. Really it was just as much a cost saving move for the company operationally as it was a way to prove to customers they were indeed a good value at low price.
If they wanted to boost revenue, they could have created a small premium section upfront, but still leave the open seating concept alone for the rest of the plane.
Brad, you stole my line. Yes, Herb Kelleher would be rolling in his grave. There has to be another way to increase revenue… Just don’t start charging for the peanuts…
100% on those peanuts. Can you imagine if they switched to pretzels served on other airlines? Mutiny!
When Southwest’s fares are the same as those of full-service airlines, those points of differentiation fail. You have to wonder what the customer focus groups discovered.
Although Southwest superfans are vocal in their opposition, 80% of passengers surveyed preferred assigned seating. What was once a more efficient way to board a plane (and thus turn the planes around faster) has lost its competitive edge. Anybody who flies SWA often (they dominate the market share at my home airport, MKE) has seen the process devolve through the years as more people clog the aisles looking for a desirable spot, or clog the aisles with carryon bags that they could have checked for free.
I would pay for extra legroom on Southwest (as I do on every other airline), and perhaps the extra revenue from this and other changes can allow the airline to be more price-competitive again. At this point I see little difference between SW and its competitors’ fares, which is absolutely contrary to its original mission.
p.s. Keep the free bag fees, no change fees and easy use of points, please!
Maybe Southwest can raise more revenue by auctioning off thousands of numbered poles at boarding gates around the country! Might make a nice souvenir for superfans.
How many people were surveyed to get that 80% number. Just curious!
Making this drastic operational change is going to require significant changes to systems and processes.
Southwest’s adoption of legacy carrier strategies(?) I think this may be backward: it was other carriers that became more like Southwest. So like this… or not – and many won’t – I think it’s a logical, if maybe not mandatory change. SW can, and will, continue to compete on the basics: moving you from A to B cheaply and on time ( as well as not moving you from A to C to D to B 🙂 )
I have flown on Southwest Airlines 4-8 flights a year for the past 20 years – mostly solo short-haul business trips. I liked the boarding cattle call well enough. It was no more or less dehumanizing than the board-by-your-contrived-group-status routines we encounter with American or Delta. On SW I typically opt for a middle seat near the front and I’m off and running by the time most folks have their stuff out of the overhead bins.
But the experience is different when you’re with a travel companion or (worse) several family members. It becomes much harder to find seats together – even in the rear. If the trip involves one or more transfers, that stressor is multiplied by the number of boardings. I imagine those travelers had plenty of gripes about Southwest’s “egalitarian” boarding routine.
If the fares remain competitive and simple, I’ll be good either way. If the new owners at Elliott Investment treat Southwest passengers as so many dishrags from which they can wring more margins, they will lose passenger loyalty and commoditize the brand.
I always found the unassigned seats extremely stressful. I don’t know that changing this will automatically drive more purchases, though. At the end of the day, flight times and prices are driving consumers’ decisions more than anything.
I loved SWA “once” because it had better pricing and better service and because I didn’t have to fight through the piles of people that rush the gates the moment the first group of passengers is asked to board even though their boarding groups were years from actually boarding!
SWA was once the anti-airline (to me) and I appreciated the value (with a smile). I also greatly appreciated the humor. I wanted simple, no hassle, service at a great price and they delivered. And once they started offering the insanely inexpensive EarlyBird upgrade, it became a no brainer.
I haven’t flown SWA in ages mostly because the value is no longer there (for me). SWA has lost much of its “anti-airline” allure and, as pointed out by many others, their pricing is no longer a differentiator. I think that with this move they’re officially, just another airline.
This isn’t the thing that will save SWA but as long as they’re going to be like everyone else, they might as well charge like them.
Until the next SWA comes along…
Only flew Southwest for non-business and it was a hassle to try to find seats together on family vacations. Never liked the mad dash for seats and I’m sure I am not alone. While it was a differentiator and maybe when introduced was a novel idea, I think it’s time to move on.
Assigned seating is a realism that Southwest must finally accept. This is what their customers want, and Southwest knows that this is what should be done. The customer is always right and assigned seating is the reason Southwest needs to move forward to compete. On top of this, assigned seating allows Southwest the ability to collect other revenue streams (profits) for premium seating, premium boarding, and premium amenities (charging, WiFi, etc.). It also gives Southwest the ability to better define its loyal customers by offering them luggage upgrades, food upgrades, seat upgrades, boarding priority, etc. What is there not to like?
After all these years, Southwest Airlines is making some excellent strategic changes. Assigned seating will play well with business travelers who never cared much for the cattle car race to get a decent seat.
In addition, Southwest will be offering a few rows with extra leg room. Again, business travelers will fly Southwest more often.
Occasional travelers don’t mind the open seating but Southwest is smart enough to realize that with all the business destinations they serve these days, it was time for change. Db
The plane is going to take off whether it’s got assigned seating or not. Southwest needs to make money, and assigned seating is another way to monetize. Expect the next move to be priority seating in the first few rows for an additional fee.
When Southwest’s airfares became close to American’s or Delta’s for the same market, it lost its competitive edge. Why would anyone want to pay a similar ticket price and not have an assigned seat? I’ve flown Southwest a few times and have not enjoyed the seating/boarding process, which is why I choose other airlines. Moving to a more standard model will win them more business but this doesn’t mean they can ignore all other components of the flying experience. They will need to revisit their overall customer journey and it starts well before anyone arrives at the airport.
Southwest lost its cachet as “the budget airline with a difference” a long time ago. Free bags or not (which most customers don’t seem to care about), the fares are simply no lower than the legacy airlines, and frequently higher. Given that, please give me an assigned seat.
The key motivator for this change may be in the phrase of the introduction to the discussion: “…reflecting evolving customer preferences…” Like fellow BrainTruster, Paula Rosenblum, the majority of air travelers don’t gravitate to it anymore. No significant loss.
Meeting the competition is not how a brand beats the competition. This change is fine, but it’s not a differentiator.
Southwest has a problem. They’re sandwiched between Sprint and everybody else. It’s going to require bigger ideas and broader innovation if they want to compete effectively.
I have flown Southwest almost exclusively for over 40 years and do so for several reasons: I get to choose my seat, bags fly free, no puddle jumpers, and the opportunity to earn a Companion Pass so my husband flies free with me anywhere I go. SWA also doesn’t randomly cancel flights – in Chicago this is a frustration if there is even a hint of snow.
Unless SWA is running a deal, I don’t consider it a low priced carrier because rate-wise it’s on par with other major airlines. What SWA doesn’t do is nickel and dime you to death with extra fees. By the time I have booked on United I have spent several hundred additional dollars on choosing a seat, upgrading boarding position, and checked bag fees. No thanks.
As a loyal customer, I don’t like this for Southwest, it is going to become another classist airline. Its leadership is obviously caving to the very customers who hate SWA instead of listening to those who love it.
I can make really good arguments on both sides of this discussion. Personally, I’ve always liked SWA’s open-seating model, and I frequently fly SWA for personal travel. The real money in air travel are business travelers who like amenities and aren’t against paying premium fares. Business travelers don’t mind paying extra for perks or seats if it means getting somewhere directly and not going through Denver, Phoenix, Midway, or Love Field to get anywhere. I also like to get where I’m going on time; in my experience, SWA flights are often late. The open seating becomes an issue when you’re late on a connection, bolt through the airport to get to the next gate, and find the highly coveted “A” boarding group was seated a while ago, and now you’re in a middle seat.
The other perk I like on SWA, especially when flying with family, is the free checked bags. That is a huge differentiation today when I feel like I’m getting nickeled and dimed with every interaction with other airlines. If that goes away, the value prop for SWA gets pretty thin.
The inconvenient truth is that unassigned seats may have initially kept fares lower and the affectionately dubbed “cattle calls” were acceptable — but never lauded. If Southwest can now seamlessly move to assigned seats while offering the no-baggage fee perk and competitive fares, I’ll sign their praises. If the playing field is entirely leveled, I cannot commit my loyalty.
Bottom line for passengers – I don’t think customers will care (in fact, they may celebrate this change). Bottom line for Southwest – hope it brings them stability.
It’s the end of an era, as Southwest Airlines has ended its open-seating operating model.
A transformational change, which will disappoint their loyal customers, is underway, as Southwest Airlines‘s profits fell 46% as an airline, and they are taking urgent steps to increase revenue and reduce operating costs.
For some context, over its 50-year history, Southwest has had an open seat model, with passengers only assigned a boarding group and a number that represents a reserved spot within that group.
Southwest has long resisted altering its seating procedures. It’s been a significant part of their culture, making them a unique airline.
Considering the rising costs to serve and the challenges that airlines are experiencing to run a profitable model, many would say that this shift was inevitable.
Assigned seating versus open seating is not as much of an issue as Southwest’s original value proposition, which it has offered from its beginning. Southwest is known for good customer service and passenger-friendly policies, such as “bags fly free,” no cancellation fees (other airlines have followed this one), and more. I remember being at a meeting with a Southwest executive who claimed open seating was a money-saver for them. Perhaps new software and technology make this a moot point. Currently, Southwest charges more for early check-in and a higher price for Business Select, guaranteeing to be one of the first on the plane. To me, this makes sense as Southwest is now considered one of the major airlines.