Southwest Airlines shake-up continues with pivot into package holidays
August 22, 2025
Southwest Airlines has entered the package holiday market with the launch of its new in-house product, Getaways by Southwest.
The move is the latest in a string of initiatives implemented by the airline to improve profitability through ancillary sales, including charging for checked hold bags and launching assigned seats for passengers, triggering an end to its five-decade-old open seating policy.
The carrier says Getaways by Southwest will provide customers with greater flexibility when booking holidays.
Southwest Airlines offers flight bundles
The Dallas-based airline confirmed that the new offering allows passengers to book bundled packages including flights, hotels, car hire and ground transport to a range of leisure destinations such as Las Vegas, Orlando, Hawaii, Cancun, Punta Cana and Montego Bay.
“Getaways by Southwest expands what Customers love about Southwest – flexibility, an award-winning Rapid Rewards loyalty programme, and great perks – to the vacation experience,” said Phil Gouel, Vice President Product Development at Southwest Airlines.
“This end-to-end vacation package, coupled with our legendary customer service, is perfect for customers seeking a convenient, valuable, and curated vacation experience.”
Perks of a package
Holidaymakers booking through the platform will earn five Rapid Rewards points for every dollar spent, while also benefiting from the two free checked bags policy.
Packages can be changed without incurring fees, and cancellations will generate a travel credit valid for 18 months.
The airline has pitched the venture as a natural extension of its customer-friendly model, which has long emphasised flexibility and value.
With business travel slower to recover, airlines across the industry are chasing holidaymakers. For Southwest, Getaways represents both a revenue opportunity and a way to deepen its connection with its core market.
Capturing the leisure market
In fact, the decision to launch its own vacation packages reflects a broader shift among carriers looking to capture more of the lucrative leisure travel market.
Selling seats alone has always been a low-margin business, but by bundling flights with hotels, cars and extras, Southwest can increase revenue per customer – just as established holiday brands such as Jet2holidays and TUI do in the UK.
The move also plays to Southwest’s historic strengths. The airline had built its reputation on flexibility – two free checked bags, no change fees – and these benefits are now offered to its new “Getaways” packages, even if they no longer apply to regular passengers.
Loyalty is another driver. Customers booking through Getaways earn Rapid Rewards points, which helps lock travellers into Southwest’s ecosystem and encourages repeat business.
End to unassigned seating and free checked bags
Earlier this year, Southwest revealed the details of its new assigned seating and eight boarding groups, which will take effect next year.
Starting July 29, 2025, the airline will introduce the new seat assignment options to its reservation system, ending its first-come-first-seated policy. It will be available for bookings on flights departing from January 27, 2026.
Southwest is also adding extra legroom seats. Bookable for travel from 27 January 2026, the seating has up to five additional inches of extra legroom.
The move to charge for checked bags was another significant change for Southwest. The carrier now charges $35 for the first checked bag and $45 for the second piece of luggage. Passengers may bring one cabin bag and one personal item for free.
Southwest Airlines has said it expects to earn more than $350 million from checked bag fees in 2025, rising to a potential $1 billion annually once the full impact of the change is felt.
And despite initial concerns about passenger backlash, executives say the rollout has been smooth, with no measurable drop in bookings or customer engagement.
