Is Southwest Losing Its “Secret Sauce?”

Southwest Airlines - 2 Free Bags

In the business world, brands are like pop stars: fans flock to what makes them unique, not what makes them ordinary. Southwest Airlines has long boasted a near-cult following—two free bags, open seating, and a friendly, no-nonsense vibe that said, “Don’t worry, we’ve got you.” That’s been Southwest’s biggest marketing flex, a promise so consistent it felt like the airline was winking at the rest of the fee-happy industry. But now, in the midst of a boardroom feud with activist investor Elliott Managament, there’s buzz that Southwest, amongst other changes, might start charging for bags and assigning seats—moves that could certainly improve revenue but also put devoted fanbase in doubt.

The Brand & Marketing Angle

Branding isn’t just a design or a color palette. It’s the promise a company makes—and, crucially, keeps—to its customers. When Southwest proclaimed “Bags Fly Free,” it wasn’t just a perk; it was a memorable hook that set them apart from the crowd. From a marketing standpoint, that’s pure gold. Lose that and you risk melting into the background of an industry known for surprises in the form of extra fees.

Learning from the Rebels

Certain brands excel at taking a sledgehammer to industry norms:

  • Netflix destroyed late fees and ushered in binge-watching. Not just an update—an outright overhaul of how we consume TV.

  • Tesla bypassed dealerships to sell cars directly. That not only felt fresh, it made buyers feel like part of a movement.

  • In-N-Out kept a teeny-tiny menu in a world demanding “super-size everything.” The payoff? Endless lines and a near-religious devotion.

They succeeded because they doubled down on the very thing that made them different. It’s classic marketing strategy: find a unique selling proposition so vivid that customers can’t stop talking about it—and keep delivering on it.

The Big Question

If Southwest starts charging for bags and assigning seats, are they sacrificing long-term loyalty for short-term revenue? Possibly. The airline’s cult status didn’t come from following the herd; it came from rewriting the rules. It’s a bit like In-N-Out adding a 30-item menu: sure, you might please a few new people, but you risk alienating the faithful who loved you for your simplicity.

Ultimately, Southwest’s brand equity was built on making travel feel straightforward, friendly, and—dare we say—fun. Breaking that promise isn’t just changing a policy—it’s rewriting their marketing narrative. And in an industry where fees are as common as cramped legroom, the best story Southwest can still tell is, “We’re not like the rest.” But if they stop telling that story, they might find out just how ordinary (and forgettable) they can become.

Thomas Frank

Partner, Chief Creative Officer at Merrick Creative. Brand and Marketing Specialist, Designer, Entrepreneur, Podcaster

https://merrickcreative.com
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