 Southwest built its reputation by being an airline that offered affordable tickets, great service and a rewards program that set them apart from its competition. But it was not content with its old award-winning version of Rapid Rewards, because the program was not a revenue generator and did not appeal to the elite-level business travelers of other airlines.
Southwest's formerly easy-to-understand, easy-to-use web site, and outstanding frequent flyer program will come to a close on March 31 when it devalues and makes more complicated its Rapid Reward points. Southwest proclaims how Rapid Rewards is being "improved." A quick review of the details makes it abundantly obvious that this is anything but the truth. An airline which once boldly proclaimed: "Southwest gives America the freedom to fly," now no longer rewards its once loyal customers for flying (the essence of a frequent flyer program).
Now customers will have to spend substantially more to achieve rewards similar to those in the old plan. The most expensive fare offering the most benefit, Business Select, now more than ever is designed for just that, the "Business Select."
While Southwest may increase its income, they have hurt their reputation for being different, for keeping things simple and for keeping things fun and honest.
Now, many of their loyal fans say they are just like the other guys in their disregard for loyal customers.
Southwest, which once held such egalitarian principles: "every seat is a first-class seat," now rewards you only for increased spending, based on a tiered system (Business Select, Anytime, and Wanna Get Away fares. A-List and A-List Select tiers).
"We're making modifications in our Rapid Rewards loyalty program to adapt to changes in market conditions while allowing us to maintain the most flexible and most rewarding frequent flyer program among all major airlines." A spokesman for Southwest told Consumerist.
To cite a (author unknown) Facebook posting: "Southwest had one of the most LOYAL customer base out of any airlines. Their passengers regularly raved about the Southwest experience. The company has remained profitable while most of the industry has struggled. Still Southwest felt the need to recruit the coveted BUSINESS TRAVELER who tends to (or is willing to) spend more on a ticket.
Ripping off business class customers seems to be the current strategy. They already treat economy class poorly simply because they can. Now that they have enough business class customers, they figure they can also afford to do the same with them. Eventually, it will move up to first class.
Skyway Robbery Several airlines are planning to increase the number of frequent-flyer miles needed for a ticket in 2014 as well as reducing perks. Delta announced two rounds of Skymiles increases for 2014. Starting Feb. 1 United is hiking the number of miles needed for business and first-class seats on many overseas routes, as well as economy seats to Hawaii. So far, the newly merged American Airlines has merely devalued its AmEx Platinum and Centurion card perks. Those credit cards will no longer provide free entry to US Airways and American's airport lounges, effective March 22. It's still a honeymoon for American Airline's frequent flyers. They'll wake up and smell the coffee in about a year when the newly combined airline devalues their award chart so badly it will resemble the 1929 stock market crash.
MileagePlus=MileageBust Once upon a time, a frequent flyer card was treasured. There was a day when you could automatically get a free seat next to you if you'd collected enough miles. Now frequent flyer mile values have dropped so much, you question whether these 'loyality' programs are worth it.
The consolidation of airlines over the last 10 years means that there may not be the need for frequent flyer programs, as there is such little competition for business among airlines. Also, it points to questionable decision-making at the Justice Department by approving so many airline mergers in recent years. Oligopolies, just like monopolies, are bad for consumers. Prepare to pay more.
The "Rewards" program, like the flying "experience" is getting worse. The "unbundling" of services - differential pricing for window, aisle and center seats and "preferred" seats like emergency exit rows, checked bag fees, boarding order preference, ovehead bin priviledge, etc. are fleecing the traveling public. There has been little change to the basic cost of getting you from Point A to B. All of these extra charges are there solely to generate additional revenue for the airlines - not to offer enhanced services. For the airlines to suggest that this is a change desired by its customers is, at best, disingenuous, and at worst, an outright lie. Fares have risen nearly 12 percent since 2009, an AP analysis shows. When people say there is still plenty of competition: American, United, Delta, Southwest, Frontier, Jet Blue, Allegiant, Spirit, Alaska, let's look at all the cities with commercial air service and see what percentage are served by more than one or two airlines; what percentage have mainline flights; and what percentage are on a meaningful network. It's nice that Allegiant serves Portsmouth, NH (PSM) for example, but the only destinations are Orlando and Fort Myers/Punta Gorda. Allegiant doesn't sell connections, so PSM doesn't has meaningful, useful air service.
(Business Class YUL-CDG in February.)
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Is there any other industry where the main competitors' pricing looks like that and no-one bats an eye?
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enforcing all-inclusive ticket pricing, basic travel requirements (i.e. seat standards, humane seat widths and row spacing, fair treatment when flights are cancelled and coverage of frequent flyer progams.) |
