Listening to the CEO of Spirit, it is clear that their focus above all else is price. Their business model is based on the assumption that we are willing to be uncomfortable for a two-hour flight at the right price. When asked if he should provide free drinks and peanuts, their CEO joked that it would not make the seats feel any bigger. They obviously embrace their reputation, but their poor customer experience is no joke. Among other things, Spirit is willing to sacrifice customer service quality to slash prices. Spirit may win in the price category, but they lack empathy, tangibles, and responsiveness.
Southwest on the other hand has seen great success in providing cheap flights while also focusing on treating customer well. According to the videos, Southwest has seen record passenger load and on-time performance. They do not charge for “extras” like Spirit. This improved experience builds loyalty and can be enough to win customer over from similar short haul airlines. If Spirit wants to compete with Southwest, they will need to improve their customer experience. They could keep the tight seats, but improve customer service standards. The free drinks might not make the seats feel any larger, but they just might change the attitude of a flyer.
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