Is Southwest Airlines about to start charging for checked luggage?

Just as Delta Air Lines announced plans to raise its checked baggage fees, another carrier appears to be quietly considering charging its customers for the first piece of checked luggage.

The airline? “No-fee” Southwest.

And those aren’t the only proposed changes. Rapid Rewards members, hold on to your hats.

Here’s a screen shot from a recent survey sent to its customers. On one of the screens, it asks passengers to pick which leisure fare they’re likely to buy. The survey lists two existing fare types, Southwest’s Business Select and discounted Anytime fares. But what’s this?

Here are two new kind of fares that are considerably more restrictive. Let me draw your attention to “New Fare B.” There are no free bags, a change fee and the fare is “not reusable.” Sounds a lot like the kind of fares the legacy carriers are offering, and perhaps worse.

Reader Tanya Keyser describes her reaction when she saw the poll.

I was surprised, and a little uneasy, to see in a survey Southwest sent me hints they might change their Rapid Rewards program, and that they are moving more and more to an a la carte system like the legacies. They’ll still have my business as long as they keep their no change fees and ticket credits, but…

Oh, yeah. The survey also mentions an “improved” Rapid Rewards system that ties points to the amount of money you paid for your ticket. From the survey:

It’s difficult to say if Southwest is just floating these ideas past their customers, or looking for a rubber stamp. I guess we’ll know soon enough.

Update (10:30 a.m.): Southwest says it has “no plans” to charge for bags. “Surveys simply help us learn more about our customers,” it says.

(Photo: gTarded/Flickr Creative Commons)

  • Joe

    It sounds like they’re thinking of replicating Frontier’s “Airfairs” program. The rumor has it that they’re hurting in Denver where Frontier seems to be the preferred carrier for Colorado passengers.

  • Elizabeth

    I sure hope this doesn’t happen. I love Southwest and one of the reasons is because you don’t have to pay for luggage.

    I’ve said this before to others, but IMO what makes the baggage fees annoying is the fact that you pay for them at the airport. When I plan for a trip I budget out money for how much it’s going to cost for things like airfare, hotel, etc., then spending money. Paying for bags at the airport feels more like the money is coming out of the spending money instead of the airfare budget. Yes, I do budget it that way, but mentally it just feels like “well there’s $25 less that I can spend on my vacation.” I think that’s where the problem lies. I wouldn’t mind paying for my bag, which I know I’m going to take, when I pay for my ticket. That wouldn’t be as annoying.

  • Rich

    I sure hope Southwest does not change anything with their current business model. Didn’t they post a story on their blog a month or so ago telling how much extra revenue they have received by. not charging for luggage? I have exclusively flown on southwest for about 12 years because of their great policies, with no ticket change fees and baggage fees. I hope they do not turn their airline into a commodity.

  • Janet

    Honestly, I will probably stop booking Southwest as much if they do this. I work for a college and book 80% (about $100,000) of our flights on Southwest because of the no fee’s structure and ease of changing tickets. Letting anyone use the credit is a huge plus for us. If they implement fee’s, they are no better than the majors and I would go back to booking a wider variety of airlines. So so sad to even consider that they would do this!

  • Bob

    I’m a retired Road Warrior and Southwest has been one of my two my carriers of choice for three decades. I adjusted to the boarding procedure, and spend the extra 10 bucks so that I do not have to “score” a low boarding number by checking in seconds after the check in is available. This fee structure will put them at a par with the dinosaurs. The Get Away fares will be a lot less attractive to leisure customers, and the non-reusable portion of fares will be a huge detriment. It would be batter just to give double flight credits to Denver flights for a period of time than to go down this slippery slope.

    It will be the beginning of the end for the famed Southwest “Culture”.

  • Bob

    Correct email please

  • http://www.luminositymarketing.com Candice Seiger

    As a research professional, I can say that the fact that Southwest is even doing a research study shows they are pretty close to changing something about their pricing. I ran another study for a competitor airline a little over a year ago and the results were not good for the traveler. Let’s hope that the travelers responding to the survey choose their responses wisely so that all the rest of us don’t end up paying more.

  • Ian

    It was only a matter of time. Delta’s bag fee has been so successful it’s about to be raised by $3. Anticipate $30 fees by the end of the year. Customers haven’t stopped flying, so it’s pretty much a green light. Has Southwest seen a noticeable uptick in travellers because of no baggage fees? And not just once-a-year-to-Orlando travellers?

  • Maarilyn

    I would hope that SW is smarter than to completely ruin their wonderful legacy. Have used SW for 12+ years and hopeful I don’t have to change because service has always been great.

  • http://www.twitter.com/travelPRgirl Caitlin Murphy

    I hope SWA realizes how much travelers value the flexibility of traveling with them. I love no frills and not being charged for bringing luggage on a trip (something I think is part of the travel experince.)

    I also love that I can cancel without a problem or fees and use my transferable airline credit to book a friend’s trip. Last year, I had nearly $500 worth of travel vouchers, so my grandparents were able to come home for the holidays on that.

    I also luv the customer service offered by their crew – this was the airline that returned my new Coach purse with everything inside within 24 hours when I left it on a flight last month. (A fail for me, was a win for SWA.)

    Crossing fingers for no SWA fees,
    @TravelPRgirl

  • Mike Tetreault

    I flew on Southwest for the first time last month, lured by the prospect of $50 RT from CLE to MDW for the day. Since I don’t have a problem checking in moments after it becomes open (having been trained with other carriers to score exit row seats by doing so), getting a low number wasn’t a problem. I found the boarding experience fairly civilized, with folks jockeying for seating instead of overhead space.

    Where this will hurt them is not in immediate revenue, but in future growth. SWA’s been poaching customers from other carriers, lured by more inclusive pricing and less rapacious change policies. By emulating the policies they publicly shun, they’ll relegate themselves to being thought of as “that airline with the line up” instead of “that airline that doesn’t turn customers upside down to shake out loose change.”

  • KF

    I would not mind if Southwest charged for checked luggage, since that would not apply to me, but I would hope they would police carry-ons, since they are currently the worst offenders that I have seen as far as the people carrying on multiple, over-sized bags.

    I’d be more worried about change fees and non-reuseable credit, which I think would influence a lot of their business travelers. Also it’d be great if they got rid of early bird check in.

  • Lisa S

    I flew American almost exclusively until the baggage fees came. Now I plan my vacations around Southwest. It is wonderful to save money, get great customer service, and see a few places I wouldn’t have (e.g., Fort Lauderdale versus Miami). If SWA becomes like the dinosaurs, there is little incentive to fly them on anything but direct flights, and even then maybe not. So sad to hear about this “survey.”

  • Kelly

    When I buy a meal at Chili’s I expect that the drink will be included in the price. It is not though. We should have the government fix that too. When I go bowling, the shoe rental should also be included. But is is not. Well let’s get the government to fix that too. Where is the line on what is rediculous for the government to control. I think the government controlling bag fees for airlines is as rediculous as the government making sure I get a pickle with my Big Mac. It’s none of the government’s business.

  • http://www.blogsouthwest.com Christi Day

    Wow, lot’s of great feedback today! We regularly conduct surveys to learn more about the choices our Customers make when given various fare options. This recent survey does not signify an upcoming change in our Bags Fly Free mantra. Our goal at the end of the day is to determine what is most important to our Customers. Using tools such as our Blog, surveys, and Twitter – help us keep the pulse and as this recent survey proved we have passionate Customers who share their feedback and help us remain relevant. Our “Bags Fly Free” campaign is absolutely ringing true with consumers and at this moment, Southwest has NO plans to start charging for bags.

    Let me know if you have questions!
    Christi
    @Southwestair

  • Kevin M

    While I agree that these types of fees (and fare restrictions) are bad news, I don’t jump to the conclusion that Southwest is “pretty close to changing something about their pricing” (per Candice, above). A good, well-run company knows the preferences of its customers and how strongly they feel about various features of their pricing model, i.e. “Do our customers really care if the value of their unused tickets is reusable for a year after purchase date, and if so, how much? Do enough of *our* customers (as opposed to industry-wide numbers) change tickets often enough to worry about this?” and “How valuable is our no-checked-bags fee to our customers? How many of them are aware of our relatively unique position on this? Would they rather airfares overall go up, if costs rise to the point something must give, or would they prefer bag fees as is the case everywhere else?”

    The only way to find out these questions is to ask. Sure, everyone’s complaining about baggage fees, assigned seating fees, and so forth, but that’s in part because those fees are the only option that the legacy carriers gave travelers. (In fairness, that’s partly because Southwest, protected for years behind giant fuel hedges, was able to hold off on general fare increases and the legacy carriers were forced to match.)

    Like all airlines, Southwest is under enormous cost pressures, including having concluded several rounds of negotiations with its unions for wage increases in exchange for what are euphemistically called “work rule adjustments” (translation: the employees give a little in terms of productivity standards). However, those higher wages kick in fairly fast, whereas the savings from productivity may lag behind, and may not save as much as predicted.

    Southwest has been fairly upfront and frank that it’s looking at its options as to the best ways to increase revenue to remain profitable, and this kind of survey is one way to find out just what its customers really want, when presented with an honest choice: would you rather pay fare A with these restrictions, or fare B with these other restrictions? Would you rather pay fare A, but with these potential fees attached, or fare B, with none of these fees? I say kudos to them.

    As for Lisa S – I can assure you that even if the fee structure changes, Southwest will still be very unlike the dinosaurs in many other ways that make it worthwhile (for many) to fly them over the legacy carriers – employee attitude, for one. You mentioned the “great customer service yourself”; I don’t think that’s likely to change even if fares or fees change.

    Many people are under the impression that since Southwest doesn’t use a pure hub system, that their non-direct flights are full of takeoffs and landings and plane changes. In my experience, on most non-transcontinental flights, Southwest at most has one change of plane and at most one additional stop–often only one of the two. The total time involved in those stops is seldom longer than a layover at a legacy hub; there’s usually far less stress in changing planes because Southwest will typically have a cluster of gates together in one spot–contrasted with, say, going between entire terminal buildings at IAH-Houston for Continenental, ATL-Atlanta for Delta, DFW-Dallas/FtWorth for American, or ORD-Chicago for United. On top of which, with a legacy carrier, you end up flying backwards against your general route sometimes – try to go to the west coast on Delta from, say, south Louisiana and you’re going to be routed all the way back to Atlanta, layover, then fly back past your starting point to California. That gives the Delta flight at least two hours more of flying time than a “work your way west” Southwest flight, which allows for a lot of Southwest “turnarounds” and still getting you there quickly.

  • http://www.roamingtales.com Caitlin

    I’ve booked my first US domestic flight ever with Southwest, largely because of their baggage policy. I might not even check in bags on this flight but it’s an option I would value for future flights and it won my goodwill because it showed me that they are not an airline that nickels and dimes its customers. I’ve signed up to their frequent flyer program and the point was to form a relationship with an airline. They could lose my business if they introduce baggage charges as it was the main thing that set them apart from everyone else. Even if it’s an option with two types of fares, one with free baggage and one without, that’s not good enough. It affects me if other passengers are taking on too much baggage as carry-on – it causes hassles in the cabin.

  • Steve

    I have to say…if Southwest introduces bag fees anytime in the next few years, I will lose ALL respect for them because they have heavily focused their marketing on “bags fly free.” If they had not chosen to market the lack of bag fees so heavily, I would be disappointed but more understanding.

    That said, I think a much more disturbing part of the proposed “New Fare B” is making the ticket non-refundable AND non-reusable. Personally, I find the idea of a ticket being non-reusable even if the flight is cancelled well in advance to be unethical and unconscionable, and though I’ve never had to cancel a flight I commend Southwest for making even their cheap fares reusable. (I have no problem with airlines not wanting to make cheap tickets refundable, but I think not allowing the purchase price to be applied to a future flight in the event of a cancellation amounts to theft). If the “New Fare B” was available at a substantial discount to the “Wanna Get Away” fare, maybe I could understand it. But I would guess that what would actually happen is the “New Fare B” would be available at the price of the “Wanna Get Away” fare, and then the other fares would increase. (And what’s up with the idea of barring those passengers from buying early check-in? You’d think SW would WANT more people to spend $10 on something that is pure profit for them).

    I do think one positive thing that no one has mentioned here is making Rapid Rewards credits not expire as long as there’s activity every 24 months. I dislike the current Rapid Rewards program because as someone who doesn’t fly SW often enough to earn a free flight in 2 years, it’s essentially useless to me. (I still joined, just in case, but I don’t expect I’ll ever get anything).

  • Steve in NJ

    If Southwest started charging for checked bags, it would be the “end” of them in Philadelphia!!! I’m sure I’m not the only one (or ten thousand) who stopped flying US Airways (Philly is a major hub for US Airways) and switched to Southwest, solely for the free checked bags policy!

  • T. Keyser

    There seems to be a lot of focus on the possibility of a fee for checked baggage – which Southwest has stated they have no plans to charge for. Even if they did at some point start charging for checked baggage – they would only be doing what every other airline is already doing.

    What concerned me more was the hint of a change fee, and on top of that, the hint of ticket funds being “not reusable.” The change fee (or lack thereof in Southwest’s case) is what drove me to Southwest for almost all of my domestic travel.

    After I traveled a few times with them, and had to change a ticket (when I fully expected and was happy to pay the fare difference), and saw both the attitude of their employees, how great their customer service was, and how easy it was to change flights, reuse credits, the simplicity of earning Rapid Rewards, etc. I was SOLD.

    If I exchange a pair of jeans at the store, I expect to pay the price difference, but I don’t expect to pay a fee for a different size. I find the change fee the deal breaker. It’s what, to me, has really made Southwest unique. It’s also turned me away from other airlines in the past. It could do the same with Southwest, but I hope it won’t come to that.

  • Carver

    I’m not a SW flyer, but would people be willing to pay reduced air fare in return for paying for bags?

  • Rich

    I would also agree that Southwest earned my business equally due to no baggage fees and no change fees! Also, it is great that any residual credit can be used for another traveler, and the name does not have to stay the same. If Christi is reading these posts, please pass along the comments to please do not change the current setup for changing a ticket, as it is one of the best reasons to fly with Southwest and it really sets Southwest apart from the competition.

  • http://www.roamingtales.com Caitlin

    @ T.Keyser “There seems to be a lot of focus on the possibility of a fee for checked baggage – which Southwest has stated they have no plans to charge for.”

    “No plans” doesn’t always mean “won’t”. Sometimes it’s code for “we probably will but we haven’t positively committed to it yet so it’s not official policy”. It strongly looks like it’s something they’re considering.

  • Linda Frese

    I just flew on Southwest for the first time and I loved it! I did pay the extra $10 each way for ‘Early Bird’ boarding and I think it was well worth it. It’s amazing how quickly they can turn around a plane.

    I was also surprised that they served complimentary soft drinks and juice as well as peanuts/crackers. I know that’s not much, but it’s more than Spirit and US Air do. And there is significantly more leg room.

    Free checked bags is a definite plus. They shouldn’t change anything!

  • Michelle B.

    In addition to the “Bags Fly Free” campaign blitz which would be a huge problem if they now start charging for bags, one other problem that SW would encounter is that the more an airline charges for bags, the more passengers will attempt to carry on what they wouldn’t before. That considerably slows down the boarding process as people stuff things into overheads and run out of room and bags need to be gate checked, etc.

    Considering SWs pride in short turnaround times and on-time performances, charging for checked baggage would have significant impact on these 2 areas.

  • Heather

    To Candice-
    As another research professional I have to wonder if they are doing this research to prove to stakeholders that charging baggage fees would enrage customers…So Southwest customers, be vocal and let your opinion be known! That is why companies do research anyway..

  • TheFrequentFlyer

    Survey is no surprise. They almost shot themselves in the foot with the whole “no fee zone” campaign. Thankfully that zone tape is no longer around their gates anymore.

    Southwest did post some quarterly losses in 2009. It will probably will continue in 2010 unless business travel turns around quick. They can’t justify having red ink because of poor hedging bets anymore. The shareholders are going to demand they turn the ship around and make some $$$.

    You can see Gary and his team have come up with ways to raise revenue without being too intrusive. Such as entering new business-oriented markets. It was a great way to cut some frequency on poorly performing routes and put those planes on new routes. The addition of pets on-board fees, early board to grab another $10 from customers and the like.

    Believe it or not, the once-a-year-to-Orlando crowd are not the profit makers. Its the frequent business traveler that continuiously buys the business select fares for last minute trips. Thats the gold mine they are looking for.

    I”no fee zone” campaign forever.

  • H_X

    For me, the biggest appeal of reserving on Southwest is that they don’t charge a change fee. So I’d much rather see a checked bag fee *if* Southwest “had” to add new fees.

  • preston

    Charging for bags will be a problem, not especially for the $$, but because folks will starting bringing more and more crap into the plane. Anyone who has had the misfortune to fly Delta lately knows what I mean. The bins are jammed.

    Of more concern (to me at least) is the talk of charging for any schedule changes. That may prove to be the “deal breaker” as far as my wife and I flying SWest exclusively. We fly SW frequently, and this (IMO) is their best feature, the one item above all others, that makes them our number one choice.

    There is an old saying, “if it’s not broken, don’t fix it”. Well, SW is not broken, yet I fear someone will try and “fix it” anyhow. That will be the ruination of the airline.

  • David Z

    SW is not broken

    If their posted losses continue, then that’s a different story.

  • FL Traveler and SW Fan

    While I definitely do not want to see a change in the “free bags,” the part of this survey that troubles me the most is the reference to non reusable, and/or a fee to make changes to an existing booking. One of the major reasons I choose to fly SW is due to their flexible policies. When AA went to the $175 change/cancellation fee, they loss my business entirely. SW started as, and has remained, a class act and what I consider a very public – friendly airline. I realy, really don’t want to see that change!

  • JW

    How many of you that complain about non-reusability buy a movie ticket expecting to be able to see the movie anytime you want? No, you buy the ticket for a specific time on a specific day. If you miss it, then too bad. The prices are different for different times of the day. Would it be fair to buy a matinee ticket and use it for the 8pm showing?
    No, you’re not going to pay 30 dollars for a plane ticket and have the flexibility to fly whenever you want. That would be absolute chaos and no airline would be in business with such a model.

  • J

    Has it occurred to you that certain circumstances come up that might make the people unable to use their ticket at the time that they originally planned? Unforeseen situations do occur.