Source: Fortune
Summary
Southwest Airlines and MGM Resorts are reworking their business models to adapt to changing consumer expectations and tighter margins. Southwest has ended its policy of two free checked bags and moved away from open seating, while MGM has launched its first all-inclusive package in response to shifting consumer habits. Despite challenges in the industry, Southwest’s stock is up over 25% in the last year, and MGM is focusing on operational execution amidst a proposed takeover bid.
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The numbers tell one story.
Southwest Airlines is changing its business model, ending its iconic free checked bags policy and open seating. Tony Roach, EVP and Chief Customer & Brand Officer, says the changes are necessary for long-term survival. MGM Resorts is also reworking its value proposition, launching its first all-inclusive package in response to customer concerns over affordability and hidden costs.
Southwest’s stock is up 25% in the last year, despite headwinds in the airline space. MGM’s COO, Ayesha Molino, emphasizes operational execution amidst a proposed takeover bid.
When the customer experience is redefined, the entire business model must follow.
Author: Evan Null
