Sales Force Pitches Airline To Corporate Travelers

They've put the plan in motion... now, they have to sell it. Low-cost carrier Southwest Airlines has dispatched a newly-bulked-up sales force throughout the country, in an attempt to woo the business travelers the airline recently revamped its very corporate culture to attract.

As ANN reported, Southwest announced earlier this month it will move away from its former "family-friendly" image, in hopes of attracting more travelers flying on business trips. Those passengers typically fly on short-notice, often on their company's dime... and pay higher fares than the airline's usual clientele.

"That is admittedly the customer that is harder to win," Southwest CEO Gary Kelly told The Wall Street Journal.

To attract those fliers, the airline unveiled a "Business Select" fare: for a $10-$30 premium over the cost of a regular, full-fare ticket, travelers will receive a guaranteed "A" group boarding pass; extra Rapid Rewards credits; a free drink coupon; and the option of a full refund or changeable fare if they need to cancel their trip. Southwest will also reward its most frequent fliers, who fly 32 flight segments per year, with "A-List" status... who will be automatically checked in for their flights.

To spread the word, Southwest has launched an aggressive advertising campaign... including not only television and print ads, but also direct appeals to companies that often send employees on corporate trips. The airline has dispatched a 15-member sales force to a dozen US cities, to drum up business for the new program.

Earlier this month, Southwest sales rep Tony Roach lured travel managers for 14 businesses to Houston, for a white-tablecloth lunch at the Hotel Derek -- if you have to ask for room rates there, you probably can't afford it -- to make his pitch to win their business.

Results from that lunch were mixed, according to the WSJ. Phyllis Morrow, who handles travel for CenterPoint Energy Inc., told Roach she sees little benefit to the airline's program... as all it would mean for the company is higher air fares, at the expense of low-fare travelers. Roach replied anyone flying more than 16 round-trip flights per year would qualify for such perks as preferential boarding.

Some at the lunch meeting saw the benefits. Toni Henderson, corporate travel manager for Rimkus Consulting Group, notes Business Select perks are "only $10 to $15 more one way" than what the company typically pays for last-minute air fares.

Many in the industry caution Southwest on putting all its eggs in the business-traveler basket, at the expense of its bread-and-butter customers.

"It is integrity, really, that's at stake," said corporate advisor Jim Kane, a partner in the consulting firm Brookeside Group. The airline runs the risk of alienating its core clientele, Kane added... and as Southwest shifts its focus, "opinions and perceptions will change."

Leisure travelers -- once attracted to Southwest's low-fare structure -- may be dismayed when they check the airline's revamped website for airfares, only to learn of the three new fare categories, "two of them aren't them," said travel agent Steve Danishek of Seattle-based TMA Travel. More business-oriented seats also means fewer seats available at lower fares... and those customers may look elsewhere, instead of paying a premium.

In fact, Danishek adds, that's already happened. Michele Copeland, who tried to book seats for her family last month on Southwest for a return trip from a cruise, found the airline's "Wanna Get Away" fares already sold out for the date she planned to travel -- leaving only business fares available.

"I felt cheated," said Copeland. "There was nothing available for a good price, only business fares." Danishek wound up booking the Copelands on United... for over $100 less per seat than Southwest's available fares.

FMI: www.southwest.com