Southwest high fares
Jan 9, 2010, 11:26 am
#1
Original Poster
Join Date: Feb 2008
Posts: 27
Southwest high fares
First I want to say I love this site thanks FT for all the good information.
Second I was wondering if anyone has any insight into why Southwest airfares are so high. I have been shopping for airfare from SLC to FLL/MIA area and it seems like Southwest is consistantly almost double what other airlines are. Any ideas why?
Second I was wondering if anyone has any insight into why Southwest airfares are so high. I have been shopping for airfare from SLC to FLL/MIA area and it seems like Southwest is consistantly almost double what other airlines are. Any ideas why?
Jan 9, 2010, 12:16 pm
#2
Original Member and FlyerTalk Evangelist
Join Date: May 1998
Location: Kansas City, MO, USA
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Because Southwest belives they should make a profit running their airline and they believe rational yield management is an integral part of such a strategy.
I recently bought a round-trip MCI-RSW ticket for my wife and I, and I ended up buying two tickets on Delta for about the same price as one ticket would have cost on Southwest. I would have still given Southwest the business in that case except that Delta's schedule for the flights was better. Of course, the chance for FC upgrades doesn't hurt them either in such a case (though upgrades are tough as Silver on DL, our flights there are early Saturday morning, so I expect we'll have a shot at those).
I recently bought a round-trip MCI-RSW ticket for my wife and I, and I ended up buying two tickets on Delta for about the same price as one ticket would have cost on Southwest. I would have still given Southwest the business in that case except that Delta's schedule for the flights was better. Of course, the chance for FC upgrades doesn't hurt them either in such a case (though upgrades are tough as Silver on DL, our flights there are early Saturday morning, so I expect we'll have a shot at those).
Jan 9, 2010, 2:14 pm
#3
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
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Southwest will usually cost more far in advance for peak travel, meaning popular flights that are going to sell out. Only during the last week or so before travel will Southwest's fares become competitive for these flights.
Southwest sells a higher percentage of full fares than other airlines, allowing those full fares to stay relatively low.
Southwest sells a higher percentage of full fares than other airlines, allowing those full fares to stay relatively low.
Jan 9, 2010, 3:14 pm
#4
Join Date: Feb 2007
Location: SJC, SFO
Programs: Delta DM, IHG Spire, Hertz PC, H.com Gold^3, lowly something on others...
Posts: 1,260
As a SWA A-List member, I can tell you that Southwest is a low price leader is a myth and not true. SWA often times is the most expensive airline. Many will argue SWA is lower because of no baggage fee and such. If you are not an elite member with another airline that waives baggage fee, then you should take that into consideration. In a lot of cases, with even the free baggage fee, SWA still cost more than other airlines in many cases. SWA seem to only willing to lower prices when they are in a market with many competitors that they have the lowest passenger fill rate.
Jan 9, 2010, 6:20 pm
#5
Join Date: Oct 2001
Programs: LTP, PP
Posts: 8,700
The short answer is that they can and they are maximizing revenue like any corporation does.
I had to book my first non WN fare in 3 years today on Jet Blue. $60 OW all in JFK-BUF for a completely personal excursion. I wanted WN even with a plane change but it was at least $150 not including the hassle of getting to/from JFK for me, a die hard WN/ISP fan. I thought long and hard and am gambling because that $60 is burned toast should plans change and because of weather and personal issues there is a high possibility of just that...
I had to book my first non WN fare in 3 years today on Jet Blue. $60 OW all in JFK-BUF for a completely personal excursion. I wanted WN even with a plane change but it was at least $150 not including the hassle of getting to/from JFK for me, a die hard WN/ISP fan. I thought long and hard and am gambling because that $60 is burned toast should plans change and because of weather and personal issues there is a high possibility of just that...
Last edited by joshua362; Jan 10, 2010 at 10:58 am
Jan 9, 2010, 7:50 pm
#6
Join Date: Oct 2009
Location: SAT
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Posts: 625
And let's not forget that WN flights are often better routings / timeframes for some... From MCI for instance, it's really worth spending more (when it is) to go directly somewhere rather than spending half a day flying to Altanta, Dallas, or Denver... 
Jan 10, 2010, 10:50 am
#7
Join Date: Mar 2000
Location: Santa Cruz, CA USA
Programs: AA, UA, WN, HH, Marriott
Posts: 7,290
When you buy a WN ticket, you are also getting "insurance" in case you need to make a change. If you take into account that the major carriers all charge $150 penalty to change a nonrefundable ticket, that could be a big factor. Also, for corporations and organizations, the transferability of an unused nonrefundable ticket can mean a big savings as well.
Jan 10, 2010, 11:49 am
#8
Join Date: Jun 2002
Location: North Wales, PA
Posts: 253
I think like every other airline, it just depends. WN sets the bar for fares generally pretty low with their lowest fares and then everyone else jumps on the bandwagon. If they sell out the Wanna Get Away fares, then their fares end up being higher.
If WN is within $40 of the other airlines, I will usually fly them since I believe in "dancin' with the one that brung ya". Right now I am pricing out another trip to Vegas and WN is at $242. Delta is at $235. If Southwest weren't flying this route, I am sure that US Scare would be setting the bar at $350.
If WN is within $40 of the other airlines, I will usually fly them since I believe in "dancin' with the one that brung ya". Right now I am pricing out another trip to Vegas and WN is at $242. Delta is at $235. If Southwest weren't flying this route, I am sure that US Scare would be setting the bar at $350.
Jan 10, 2010, 2:14 pm
#9
Join Date: Dec 2008
Location: Seattle, WA
Programs: AS Gold, DL, WN
Posts: 86
Generally speaking, it is simple supply and demand. As WN sells more seats earlier to the departure date, the value of prices go up. You don't say when you are looking at flying so there could be a myriad of reasons why the price is high.
Jan 10, 2010, 4:26 pm
#10
Join Date: Oct 2005
Location: Milwaukee, WI
Programs: HH Gold; AA AAdvantage Mbr; DL Skymiles Silver Medallion; World of Hyatt Mbr; NK Free Spirit Mbr
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Given all this then, is there still a "Southwest Effect" any more?? It used to be that you could rely on WN to always be the cheapest fare on any given city pair, period. Not very encouraging. Maybe my airport/metro area shouldn't work so hard at trying to get Southwest to fly here!
Jan 10, 2010, 4:42 pm
#11
Join Date: Nov 2009
Location: ALABAMA
Programs: STARWOOD PLAT, LT GOLD,WN A-LIST PREFERRED, NATIONAL EXECUTIVE
Posts: 267
have not seen that much of a difference form my HUB when you add the obaggage fee that i have to have every time that is 100 per fare. Then you add the ease of changing flights, etc. it is hard for me to beat flying anything else but WN but flying out of BHM your choices are not that great
Jan 10, 2010, 4:42 pm
#12
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,624
The Southwest effect eliminates absurdly high fares in captive markets. For example, SF Bay Area to Seattle was $400 each way full fare 20 years ago, until Southwest entered that market.
Jan 10, 2010, 5:37 pm
#13
Join Date: Mar 2009
Posts: 93
I believe people are willing to pay more for the flexibility in changing flights.
As WN does not charge change fee, it is priced in to the fare.
As WN does not charge change fee, it is priced in to the fare.
First I want to say I love this site thanks FT for all the good information.
Second I was wondering if anyone has any insight into why Southwest airfares are so high. I have been shopping for airfare from SLC to FLL/MIA area and it seems like Southwest is consistantly almost double what other airlines are. Any ideas why?
Second I was wondering if anyone has any insight into why Southwest airfares are so high. I have been shopping for airfare from SLC to FLL/MIA area and it seems like Southwest is consistantly almost double what other airlines are. Any ideas why?
Jan 10, 2010, 5:40 pm
#14
Join Date: Oct 2005
Location: ORD, MDW or MKE
Programs: American and Southwest. Hilton and Marriott hotels primarily.
Posts: 6,462
Given all this then, is there still a "Southwest Effect" any more?? It used to be that you could rely on WN to always be the cheapest fare on any given city pair, period. Not very encouraging. Maybe my airport/metro area shouldn't work so hard at trying to get Southwest to fly here!
Jan 10, 2010, 6:11 pm
#15
Join Date: Oct 2005
Location: Milwaukee, WI
Programs: HH Gold; AA AAdvantage Mbr; DL Skymiles Silver Medallion; World of Hyatt Mbr; NK Free Spirit Mbr
Posts: 2,531
ARE there any TRUE LCC's any more?? G4 doesn't really count, as their flights are largely less than daily frequencies and they don't allow onward connections. I mean, SOMETHING has got to give in my home market, where we have north of 60% market leakage due to high fares.