The major airline company in the United States, Southwest Airlines, has recently reported that it'll add a fourth fare category as part of changes to attract as many business travelers as possible and increase its revenue. Actually, it's the first significant change in Southwest's fare structure in 15 years. According to the company, all the changes will come into force in May or June.
How much will such a new fare cost? The price will be higher than the cost of Southwest's cheapest tickets but below the airline's top two fare categories. The companies' leaders think that it'll help to fill the large price gap between the cheapest fares, called Wanna Get Away, and more expensive tickets.
And what about the advantages? First of all, consumers who buy the new Wanna Get Away Plus, will receive 33% more frequent-flier points than those who purchase the basic tickets, and they'll be able to transfer the value of a ticket to another Southwest customer. Besides, the company will add early-boarding privileges to the next most expensive fare, called Anytime, to avoid selling tickets at full price.
Here's what Andrew Watterson, the airline's chief commercial officer, said about it:
“All the changes should be especially attractive for business travelers. Our company is trying to take more business travel away from Delta, American and United.”
The Dallas-based airline expects that it'll collectively increase annual revenue by between $1 billion and $1.5 billion next year.
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