Southwest Airlines has officially abandoned its policy of allowing two free checked bags, sparking concern over potential customer loss. Although the airline estimates that introducing bag fees could generate $1.5 billion annually, it also anticipates a loss of $1.8 billion from customers opting for competitor airlines like Southwest as a result of this policy change. The new fees will apply to passengers who do not meet loyalty or credit card criteria, altering a long-standing marketing strategy focused on free baggage as a competitive advantage.
The decision to implement bag fees, which could earn Southwest Airlines an estimated $1.5 billion annually, may backfire with potential losses of $1.8 billion.
With the new policy, passengers who do not meet specific criteria, such as loyalty status or credit card privileges, will face charges for checked bags.
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