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Tuesday, June 03, 2008

Southwest Says "No surprise fees," and "Fees don't fly with us."

Southwest_Airlines_logo Can Southwest Airlines survive by being the brand that doesn't charge extra for services?

American Airlines now charges $15 for the FIRST checked bag. And, U.S. Airways will STOP handing out pretzels to flyers. There are fuel surcharges and fees for phone reservations, curbside check-in, ticket-change fees, and snacks and beverages.

As more airlines charge extra fees for things we used to expect to be part of the "service", Southwest Airlines has begun to position itself as the carrier that offers true low fares with no strings attached.

It is an interesting tact. And may fit nicely with Southwest's contrarian brand DNA.

The airlines new advertising messages deliver lines like: "No surprise fees," and "Fees don't fly with us."

I see only two problems with this differentiated message: 1). Didn't Southwest just introduce "Business Select" fares which allow you to pay more to receive premier boarding and seating? (sounds like a fee to me) and 2). How long will Southwest be able to buck the trend of the industry? And will this position come back to bite them?

This is what Anne Murray, senior director of marketing communications for Southwest has to say:

"Fees are such a hot topic now because it's getting worse. It's sort of surprising because [no fees and serving complimentary snacks and beverages are] fundamental to Southwest. We proudly provide what we think are basic elements of service."

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