Not-So-Open Skies: Southwest Makes Historic Change
As someone who has shuttled between two continents I’ve called home for a few decades now, and as an erstwhile management consultant with a portfolio of global clients, I’ve clocked in the vicinity of 5 million airline miles. But last month, I did something I hadn’t before: I flew Southwest Airlines (and had to ask my daughter how to navigate boarding and seating). And just in time, too, as the once iconoclastic and now iconic airline announces that it is ready to retire one of its signature features: open seating.
The Southwest Difference
With cramped seats, unapologetic delays, and indifferent service, there is little to differentiate one airline from another. In this sky of sameness, Southwest remains (remained?) the last holdout. While the airline has lost most of its original Herb Kelleher flourish (but not Herb’s trademark Wild Turkey), there is enough to set apart the flamboyant yellow, red, and royal-blue livery from the pack. Open seating is as much part of the brand’s DNA as is the promise of friendly and casual informality, as well as a commitment to transparency (or, as the company calls it, “transparency”).
The Business Imperative
But the markets can be a harsh taskmaster. Of late, Southwest has struggled financially, and activist investors have been turning the screws, pushing for change, and looking to squeeze every drop of growth out of the business. Configuring seating to extract premium fares for assigned and preferential seating is simply too tempting an opportunity to ignore. But what about the “brand”? Therein lies a valuable lesson for marketers: A brand’s personality cannot be static but must inexorably evolve with the needs of the business and its stakeholders. A brand unmoored from the business and adrift requires immediate course correction.
Aligning Brand Strategy To Business Strategy
Our research shows that a growth strategy can be activated through various levers, including product and experience. In a category that has plunged to the bottom in service, airlines see a glimmer of hope for revenue through differentiated services like preferential seating and the near-ubiquitous premium economy cabins on international flights. But Southwest has very publicly eschewed such a class system; will it be able to effect this transition? Time will tell, but it’s not like the airline has stood still — Southwest left its renegade reputation behind some time ago, and perhaps to its detriment, its customers seek Southwest out for the same reasons that they fly other airlines (price, duration, stops, etc.).
New Brand Expressions
Does the sky of sameness get even more muddled now that Southwest will look more like the others? Not necessarily. Delta, for example, has managed to scrape out a modicum of differentiation in this category based on a commitment to digital and in-flight experiences. Over the years, Southwest has accumulated a wealth of brand equity in customer trust and experience. And now, even though Southwest will play by the rules of others, it can bring its special version of brand experiences to it. But that will require Southwest to carefully nurture what is truly unique about its brand and then find new expressions for it in this different route to market.
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