Remember when finding your seat on Southwest Airlines resembled an Olympic sport? For more than 50 years, flying on Southwest meant something different. No assigned seats, free checked bags and a playful crew created a travel experience that felt more relaxed than other airlines. But recently the airline introduced major changes, including assigned seating and fees for checked bags. The reaction from customers has been mixed and it offers a fascinating lesson in services marketing.
Unlike physical products, services rely heavily on people and processes to create value. Airlines aren’t just selling transportation, they’re providing an experience that includes booking, boarding, interacting with employees and arriving smoothly at the destination. For decades, Southwest differentiated itself with a unique boarding process that allowed passengers to choose any available seat. That process became part of the brand’s identity.
Now the company is experimenting with assigned seating and tiered options such as standard, preferred and extra legroom seats. The aircraft haven’t changed, but the process has. Some travelers welcome the predictability, while loyal customers feel the airline has lost part of what made it special. This shift highlights a key challenge in customer experience management. As markets evolve, companies must adapt their service design to meet new expectations. At the same time, they must protect the elements that created loyalty in the first place. Southwest has historically excelled at empowering employees to create memorable interactions with passengers, which helped the airline rank highly in customer satisfaction for years.
The big question for marketers is whether changing a core service process strengthens or weakens the overall experience. When a company adjusts how customers interact with its service, even small operational changes can reshape how the brand is perceived. For students studying marketing, Southwest’s transformation reminds us that in service industries, the customer experience is the product.
Discussion Questions and Activities
- Why was open seating such an important part of the Southwest customer experience?
- How can changes to a service process affect brand perception and customer loyalty? Do you think assigned seating will attract new customers or alienate loyal ones? Why?
- What role do employees play in delivering a positive customer experience in service businesses?
- How should companies balance efficiency with maintaining a distinctive service experience?
- Watch and Analyze the Campaign. Students watch videos from the new Southwest advertising campaign explaining the seating changes. Ask them to identify how the company communicates the new process and attempts to reassure customers.
- Map the Customer Experience. In small groups, students create a customer journey map for a Southwest flight from booking to landing. They should identify the key “people” and “process” moments that shape the passenger experience.
- Service Redesign Challenge. Students select another service business (such as a restaurant, streaming service or ride-share platform) and propose one change to its service process that could improve the customer experience. They must explain how the change affects people, processes and customer satisfaction.
Sources: Goldstein, Michael (21 Feb 2026), Has Southwest Become Just Another Airline? Forbes; Peek, Sean and Hoffman, Amanda, (15 Jan 2026), Southwest Airlines: A Case Study in Great Customer Service, Business.com; Economy, Peter (6 Mar 2026) Southwest’s Reserved Seating Change Is a Powerful Lesson in Leadership and Adaptability.
