Southwest Airlines has historically taken a unique approach in the airline industry, especially with its fare distribution strategy. Unlike other major airlines, Southwest has traditionally only sold tickets directly through its website—they would never show fares on Google Flights.
However, for the first time in recent memory, Southwest's fares are now displayed on Google Flights. This marks a pivotal change in Southwest's distribution strategy and provides consumers with more power to effectively compare flight prices.
Why the Change?
I anticipate this has to do something with Southwest's recent financial performance. Essentially, Southwest is not doing as well as it used to. In the past, the airline basically forced many loyal customers to search on its website alone to find its fares, which made it harder to compare across different airlines.
However, it seems like they want to tap into more consumers outside of Southwest's loyal customer base. By enabling fares on Google Flights, they'll be able to start competing directly with other airline's fares.
What's The Benefit For Consumers?
The addition of Southwest to Google Flights is a huge win for consumers.
Not only is it now infinitely easier to compare airline fares, you can also set price tracking alerts now. Notably, all Southwest fares either offer some type of refundability or flight credit. This means you can book your Southwest flight, set a price alert, and then watch for price drops. If the price does drop, then you can rebook the flight and get the credit.
What's Next For Southwest?
This move suggests that Southwest is experimenting with different distribution channels. If all goes well, I wouldn't be surprised to see them start appearing on online travel agencies like Expedia. And just as a reminder, Southwest is an absolutely massive airline (they serviced 172M passengers in 2023, the 2nd most in the USA behind American Airlines)—this could have tremendous downstream effects on pricing for all airlines since we can now see pricing more easily compared to one another.
Conclusion
Southwest Airlines has started listing fares on Google Flights, a significant development for both the airline and consumers. It reflects a shift in Southwest's traditional business model towards greater integration with popular travel comparison tools to tap into more potential consumers. This change is likely to enhance customer satisfaction for both frequent Southwest and infrequent Southwest fliers and could potentially lead to more competitive fare pricing in the industry.
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