{"id":604,"date":"2026-06-03T12:21:45","date_gmt":"2026-06-03T12:21:45","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=604"},"modified":"2026-06-03T12:21:45","modified_gmt":"2026-06-03T12:21:45","slug":"southwest-exec-says-the-free-bag-and-assigned-seating-overhaul-is-already-paying-off","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=604","title":{"rendered":"Southwest exec says the free bag and assigned seating overhaul is already paying off"},"content":{"rendered":"<div>\n<p>That reality is now shaping decisions at companies where long-standing business models are being reworked in response to shifting consumer expectations and tighter margins. Few shifts have been more visible than at Southwest Airlines, where recent changes\u2014ending its long-held policy of two free checked bags and moving away from open seating\u2014cut to the core of what the airline has long been known for.<\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=602\">Wall Street is beginning to think Trump can\u2019t reopen the Strait of Hormuz<\/a><\/p>\n<p>But speaking at <em>Fortune\u2019s<\/em> COO Summit on Tuesday, Southwest\u2019s EVP and Chief Customer &amp; Brand Officer Tony Roach acknowledged the magnitude of the changes, comparing the shift away from open seating to \u201cchanging the engine in the car.\u201d He argued the moves were necessary for the airline\u2019s long-term survival\u2014not a departure from its identity.<\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p>\u201cWe are a brand that\u2019s been iconic, but we want to be sustainable,\u201d Roach told a crowd of execs at the \u201cThe Bold Bets That Are Reshaping Customer Experience Today\u201d panel. \u201cAnd so fundamentally we need to change our business model, so that we have the future to look forward to.\u201d<\/p>\n<p>Southwest has also pushed further upmarket, adding more premium offerings to compete for higher-spending travelers. But Roach said the airline is not necessarily trying to mimic larger rivals.<\/p>\n<p>\u201cAll we\u2019re doing is widening in aperture to be able to add more premium into the mix,\u201d he said. \u201cIt doesn\u2019t mean we\u2019re trying to be Delta, because we don\u2019t think we need to be Delta to be successful.\u201d<\/p>\n<p>Despite headwinds in the airline space in particular due to rising fuel prices, Southwest\u2019s stock is up more than 25% over the last year. Roach described the company as \u201crunning better than it was before.\u201d<\/p>\n<div>\n<div><\/div>\n<\/div>\n<h2>Shifting consumer habits pushed MGM to launch its first all-inclusive package\u2014now a takeover bid is raising the stakes<\/h2>\n<p>Southwest is not alone in having to rework its value proposition.\u00a0<\/p>\n<p>MGM Resorts\u2014best known for Las Vegas properties including Mandalay Bay and Bellagio\u2014has faced similar pressure as shifting consumer habits weigh on tourism spending. Las Vegas welcomed 38.5 million visitors in 2025, down 7.5% from the year prior, according to the city\u2019s Convention and Visitors Authority, underscoring the challenges facing the broader hospitality sector.<\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p>\u201cWe had to really redefine what value means in the context of our portfolio,\u201d Ayesha Molino, MGM Resorts International\u2019s COO, said in the <em>Fortune<\/em> panel alongside Roach.<\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=595\">The $18 expense report and the defunded intern programs: symbols of corporate America\u2019s dysfunction<\/a><\/p>\n<div>\n<div><\/div>\n<\/div>\n<p>\u201cWe heard loud and clear last year from our customers that they felt like they weren\u2019t getting that value proposition from Vegas anymore, particularly at our core properties,\u201d Molino added during the conversation. \u201cSo we listened, we heard it, we changed.\u201d<\/p>\n<div>\n<div><\/div>\n<\/div>\n<p>Part of that rethink has included the launch of MGM\u2019s first all-inclusive experience package, bundling hotel rooms, resort fees, parking, meals, and entertainment into a single fixed price\u2014a direct response to customer concerns over affordability and hidden costs.<\/p>\n<p>The company\u2019s recalibration comes at a pivotal moment. Media mogul Barry Diller\u2014whose company already holds a 26.1% stake in MGM\u2014this week proposed an $18 billion bid to take over the casino operator, arguing the business has yet to reach its full potential.<\/p>\n<p>Molino briefly acknowledged the proposed deal but emphasized that MGM\u2019s immediate focus remains operational execution.<\/p>\n<p>\u201cThe trick is really to make sure that we keep our 60,000 employees focused on what they need to do every single day, which is deliver the best guest services possible,\u201d Molino said. \u201cAnd at our scale, it is a big task to keep that population focused, but I think our leaders are well positioned to do it, and everyone is very zoned in on the task at hand.\u201d<\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p>In the meantime, Molino said MGM is keeping every option on the table to make the customer experience as seamless as possible\u2014including revisiting marketing strategies and rethinking booking flows.<\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=593\">Who is Chris Olah? The atheist Anthropic cofounder the Pope chose to sit beside him at the Vatican and tell the tech industry it can\u2019t govern itself<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Executives at Southwest and MGM say reinvention\u2014not tradition\u2014is becoming essential as travelers grow more price-conscious and industry pressures mount.<\/p>\n","protected":false},"author":1,"featured_media":603,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[133],"tags":[],"class_list":["post-604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coo-summit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Southwest exec says the free bag and assigned seating overhaul is already paying off - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=604\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Southwest exec says the free bag and assigned seating overhaul is already paying off - 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