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Southwest Airlines' "bags fly free" strategy pays off
Dec 30, 2009

While all competing airlines fell over each other with charging for checked baggage, Southwest stood alone, never charged, advertised that fact and it paid offThe  LA Times reported the results Southwest  Airlines has achieved by once again, differentiating themselves from the others, by being unique.  By resisting the temptation to "pile on" the consumer in charging for  checked baggage,  here is what happened at Southwest:

  • They now serve more passengers than any other US Airline
  • They added 4 major destinations to their routes (LaGuardia, Minn/St. Paul, Boston and Milwaukee)
  • They have increase their market share by 1%
  • They offered all employees raises  in the midst of the worst financial slump in airline history

It really is about differentiating yourself from your competitors by how you do what you do isn't it!


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