5min chapter

Founders cover image

#56 The Biography of Herb Kelleher

Founders

CHAPTER

Southwest Two Tier Fare System

Southwest realized there's really two types of travelers that an airline had to satisfy if it was to cover the entire market spectrum. They introduced a system wide two tier fare structure in which all seats on executive class flights departing on weekdays until 7 p.m. were sold for $26. The times when people are actually traveling for leisure are going to be sold for $13 - a 35% decrease from the $20 fare. Southwest would not only match Braniff's fare it would also offer every passenger choice so they really don't want their standard ticket is $26. So instead of paying we're going to give you more more more flexibility and more convenient times but say I'm paying

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