Southwest, American expand offerings in hunt for business flyers

American Airlines and Southwest are trumpeting new efforts to cater to lucrative business travellers. Southwest, which pioneered a discount strategy aimed at budget flyers, will give corporate travel managers greater control over bookings. American is wooing them with free preferred seats and priority access through security checkpoints. The moves, announced Monday at the Global Business Travel Association convention in Chicago, highlight the competition to lock in contracts with corporate buyers that can guarantee certain amounts of flying, often in upgraded cabins. In addition, business travellers are typically willing to pay more for tickets to have the added flexibility of booking just before travel. Southwest’s expanded capabilities should be in place by mid-2020. The increased business from the initiative will add as much as $20m to pretax earnings in H2 next year, “with significant improvements expected in 2021 and beyond,” the Dallas-based carrier said. The changes, enabled by new technology implemented over the past five years, provide increased access to Southwest’s fares and flight schedules to travel managers, who gain the ability to make, change and cancel reservations. That’s in addition to the carrier’s existing policies that appeal to business travellers, such as flight changes with no penalty, and no charge for as many as two checked bags. American is trying to entice business flyers with preferred seating -- window and aisle seats usually close to the front -- at no charge, along with priority check-in, security processing and boarding for those booked under corporate travel accounts. Such passengers also get help faster in re-booking when flights are cancelled. The complimentary preferred seating will be available on American’s website and mobile app.<br/>