Greg Coticchia’s Post

It's crucial to break free from the constraints of "we've always done it that way" or even "that's our identity." A big shift from Southwest Airlines as they announce the introduction of assigned seating and optionally enhanced legroom. With 80% of their customers expressing a strong desire for these changes, the airline anticipates a smoother operation and a substantial boost in profits. #SouthwestAirlines #CustomerExperience #Innovation #BusinessGrowth

Southwest Airlines is finally getting rid of open seating for assigned seating, an annoyance the executive team just noted that 80% of its customers preferred. How could it take so long for such a company to listen to their customers! No wonder Southest in general has fallen so far behind in last several years. One caveat is that I bet many of those 80% of customers will not like the alternative assigned seating option once they have to pay for all the extras like in other airlines, with those extras expected to bring Southwest an extra billion in revenue per year. Shows also the importance of choice design, since 80% finding is not based on the alternatives customers will be faced with. Not #CustomerCentric #MarketResearch #MarketingAnalytics

What's the one U.S. airline that’s been profitable since 2008? The one where passengers are encouraged to have fun: Southwest Airlines. Now think about your business. As the owner, if you’re not enjoying yourself, how do you expect your staff or your customers to feel? It's not just about great service; it's about creating an unforgettable experience. When your customers enjoy doing business with you, they’ll share that excitement with the world—free marketing at its best! Is your business delivering an experience worth talking about? Let’s make it fun for everyone, starting with you! #BusinessExperience #CustomerService #FunAtWork #CustomerLoyalty #BradSugars #AvidActionCOACH #VancouverBusinessCoach #BusinessCoach #KamloopsBusiness #VancouverBusiness

As a public company that operates internationally, Southwest Airlines is heavily reliant upon collaboration. When it comes to #SECreporting, individuals from #legal, #investorrelations, #accounting, and #more team up to produce #reports, so the easier and more clear the communication is, the better. That’s why Southwest been a Workiva customer since 2013. In this video, hear from Riley Drummond, Southwest Airlines Supervisor of #FinancialReporting, and learn how he's used Workiva to #digitally #transform their #work and #collaboration. #airlines https://lnkd.in/gF879jme

🚨 Big Changes Coming to Southwest Airlines! 🚨 In a major shift aimed at enhancing passenger experience and boosting revenue, Southwest Airlines is planning to introduce assigned seating and sell seats with extra legroom. 🛫✨ This marks a significant departure from its 50-year tradition of open seating. Key Highlights: - Assigned seating and premium legroom options to roll out next year, pending regulatory approval. - Red-eye flights to be introduced for the first time. - Initiative part of a broader strategy to attract more corporate travelers and increase revenue. 📊 Despite a challenging second quarter, Southwest reported a profit of $367 million, surpassing analysts' expectations. However, its shares dropped 3.8% in premarket trading. 🗣️ CEO Bob Jordan emphasized, "This is the right change at the right time," underscoring the need to adapt to evolving customer preferences. Notably, 80% of surveyed customers favored assigned seating. 💼 Elliott Investment Management, a key shareholder, has been advocating for faster adaptation to modern flying demands. Stay tuned for more details at Southwest's investor presentation in late September! #SouthwestAirlines #AviationNews #TravelUpdates #CorporateTravel #InnovationInAviation

Big Changes at Southwest Airlines🛫 Southwest Airlines just announced a comprehensive overhaul of their business model to better align with what customers want. Here’s what’s changing: 🔹 Premium Seating: Southwest will introduce a premium section with extended legroom across its fleet, transforming one-third of all seats to enhance passenger comfort. 🔹 Allocated Seating: Moving away from their traditional unassigned seating, Southwest will now offer allocated seating, responding to the preferences of a vast majority of their customers. 🔹 Redesigned Boarding Process: Details are yet to be unveiled, but a new boarding model will soon replace the current system. 🔹 24-Hour Operations: Introducing redeye flights to utilize aircraft more efficiently and optimize the network, with the first routes launching in February 2025. Alex Grip #SouthwestAirlines #TravelNews #AviationIndustry

👉 Differentiation is a fundamental challenge for most businesses. Many companies tend to mirror competitors more than they admit. Southwest's recent announcement of moving to assigned seating with a premium-ish cabin marks a significant effort to secure the premiums required to cover the escalating costs. Will this strategy work effectively for Southwest Airlines? Will opting for this homogenization strategy instead of differentiation be beneficial for ❤️LUV? #BusinessStrategy #CompetitiveAdvantage

My recent experience with Frontier Airlines taught me a valuable lesson about customer expectations and the concept of perceived value. While the decision to fly with Frontier was based on its cost-effectiveness, the accumulation of additional fees for baggage and carry-on items revealed a different picture. On the other hand, Southwest Airlines initially appeared to offer less value due to a higher upfront cost, but it would have ultimately resulted in a more economical choice, saving twice the amount that the initial ticket with Southwest would have cost. This experience underscores a critical lesson for us as leaders: the importance of transparently communicating the true value of our services compared to lower-priced alternatives. As the adage goes, "You get what you pay for," emphasizing the need for strategic clarity in how we position our offerings. This approach not only aids in setting realistic customer expectations but also in fostering long-term customer satisfaction and loyalty. Happy Sunday my friends! - Z. #CustomerExpectations #PerceivedValue #Transparency #LeadershipLessons #CustomerSatisfaction #Loyalty

Southwest Airlines' "wheels up" strategy was brilliantly simple. They knew that planes only make money when they’re flying, not when they’re sitting on the ground. So, Southwest built their entire operation around getting planes back in the air as quickly as possible. From boarding procedures to cleaning routines, everything was streamlined to cut downtime and increase flight frequency. While competitors might have taken 45 minutes or more to turn planes around, Southwest reduced this to 15-20 minutes, allowing them to run more flights, lower costs, and maximize profitability. "Wheels up" became their "one phrase strategy". Importantly, it was easy for every employee to understand and acted as a guiding focus for the company’s success. So, what's your company's "one phrase strategy"? What's the core activity that drives your profit and inspires operational efficiency? If you want some help with this, get in touch and we'll work on it together.

Southwest Airlines Is Ditching Open Seating - is that good strategy? Under pressure to improve profits, Southwest Airlines is giving up on one of it’s core principles - open seating. The company says it needs to adapt to changing customer needs and make more money under pressure from activist investors. This article from Wall Street Journal examines the issue. From a second order effect perspective there are some positives and some negatives to this change. 1. Revenue Increase: premium seating options, extra legroom and quicker access can bump up revenue. 2. Operational Efficiency / complexity: Open seating has often been touted as the reason why Southwest can turnaround it’s flights quickly. Maybe there’s a better way - but the jury is still out on that. 3. Impact on Costs: Standardization the way that Southwest has done it has been a good thing - lower maintenance costs, easier to repair / replace, better purchasing power with vendors. Moving away from standardized seating may increase costs. 4. Customer Satisfaction: it’s a balancing act - long standing customers are probably not going to be happy, but premium seating may attract newer customers (those flying for work). 5. Brand Identity: Open seating is one of those things that makes Southwest stand out. Moving away from open seating may dilute its brand identity. Open seating has been a hallmark of Southwest ever since its inception. It is one of the many things that made Southwest unique and beloved. Changing things can potentially lead to higher revenues - but tricky part is, at what cost? Southwest has always been a shining example of how a business can succeed by getting its basics right, taking care of employees and its customers, and doing the right thing. I hope this change in strategy turns out right. It would be a shame to see Southwest lose its luster. Source: https://lnkd.in/g2zPNuar #strategy, #future, #money, #airlines