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When Southwest Airlines finally began showing its flights for the first time on Google Flights, Kayak, and Expedia, it didn't get the pop it anticipated.
While Southwest went live in Google Flights and Kayak in 2024, Expedia only started showing Southwest's flights on February 26.
And that was a major factor, along with pressure from investor Elliott Management, that led Southwest to reverse its "bags fly free policy."
Up until 2024, basically the only place to book Southwest fares online for leisure travelers was Southwest.com and the Southwest app.
Southwest CEO Bob Jordan noted the disappointing results of the change in booking channels at a financial conference Tuesday: "We saw no share shift to Southwest Airlines for the fact we had better policies."
Those "better policies" referred largely to the lack of fees for the first two checked bags and changing flights.
Jordan said that on Expedia and metasearch engines an airline can inform passengers about the value they get in a fare.
But the lack of a bump in market share led Southwest to update its thinking about bag fees, he said.
"In contrast to our previous analysis [at Investor Day in September], actual customer booking behavior through our new booking channels, such as metasearch, did not show that we are getting the same benefit from our bundled offering with free bags, which has led us to update the assumptions," Jordan said.
Price-Sensitive Customers
Southwest's research into its performance in new booking channels also showed that online travel customers can be swayed by a few dollars in savings.
"What we did see, and this ties into our basic economy, is that customers are incredibly in those channels sensitive to price and will shift on very small movements in price," Jordan said.
Like many of its rivals, Southwest intends to introduce a basic economy fare.
Displays of Southwest Flight Listings Had Room for Improvement
A look at Southwest's current listings for flights before May 28, when the changes become effective, may add context to why Southwest didn't better leverage its 'bags fly free' policy on new booking channels.
One can argue that Southwest's flight listings on Expedia and Kayak, in particular, could have been more advantageous. It should be noted that the airline crafts the text in listings.
For example, Expedia's listings today for Southwest flights on March 14-15 from Dallas Love Field to New York La Guardia — and that's before the airline begins to charge for bags — say "Changes included, carry-on included." But they provide no information at first glance about two free checked bags. You have to click further to discover the free bag policy.