Why has Southwest's pricing strategy been successful the the last three decades?

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Basically, Southwest Airlines' pricing strategy has been to offer the lowest possible fares.  This has succeeded because so many airline passengers have been looking for low fares rather than for the perks that were once offered by many airlines instead of low fares.

Southwest's basic plan was to offer low...

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Basically, Southwest Airlines' pricing strategy has been to offer the lowest possible fares.  This has succeeded because so many airline passengers have been looking for low fares rather than for the perks that were once offered by many airlines instead of low fares.

Southwest's basic plan was to offer low fares for no-frills flights.  Southwest did not offer much in the way of meals.  It did not offer lounges for business passengers in airport terminals.  It did not offer assigned seating and so passengers could not pick their seats.  This worked because many passengers did not really care about these things and were not willing to pay higher fares to get them.

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