Founders cover image

#56 The Biography of Herb Kelleher

Founders

00:00

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

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app