Spirit Airlines drops its no-frills pricing model, transforming the Big Front Seat into a 'business class' option in a major update.
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Although the Airbus jets will retain their yellow paint, nearly every aspect of the Spirit Airlines travel experience is set for a makeover.
The carrier based in Dania Beach, Florida, unveiled what may be its most significant commercial strategy change to date on Tuesday.
Spirit is officially moving away from its traditional low-cost fare model and introducing four new tiered fare options as part of a revamped passenger experience aimed at improving its challenging financial status.
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Spirit's four new fare options and products
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Spirit is launching four new fare options aimed at catering to a diverse array of travelers.
The new fare options come with various amenities and extras. The lowest-priced choice is the Go fare, which closely resembles the current Spirit experience.
With this fare, you receive a ticket and a personal item, but all other extras like seat selections, checked baggage, and snacks must be purchased separately. Passengers with Go fares are not permitted to bring a full-size carry-on bag, nor can they pay to add one. Therefore, those wanting to bring a larger suitcase will need to opt for a different fare type or pay for checked baggage.
The next tier is the Go Savvy fare, which allows for either a full-size carry-on or a checked bag, along with a standard seat assignment. However, snacks, beverages, and onboard Wi-Fi will be available for an additional fee.
The airline will also introduce two new premium fare options that come with exciting new products.
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The first option is the Go Comfy fare, which guarantees a blocked middle seat, priority boarding, a carry-on bag, and a checked bag. This fare also includes a choice from a small snack basket and one nonalcoholic beverage. Initially, Spirit will allocate the first three rows of its economy section for Go Comfy seats, as CEO Ted Christie shared in an interview with TPG prior to the announcement.
Lastly, Spirit will transform the Big Front Seat experience into something akin to domestic first class. Named Go Big, this is Spirit's priciest new fare, featuring a range of benefits and amenities.
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Key highlights include access to the Big Front Seat, exclusively available to Go Big fare purchasers. In addition to all the perks of the Go Comfy fare, Go Big travelers will enjoy a more upscale food and drink selection (including alcohol), complimentary streaming Wi-Fi, and priority check-in.
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"We're now going to market and sell it as a classic business-class product," said Christie, emphasizing that the new Go Big experience builds on the significant success of the Big Front Seat.
In its rebranding efforts, Spirit aims to position Go Big fares as domestic first-class options, encouraging travelers to recognize these seats when searching for premium cabins on travel sites, according to Matt Klein, Spirit's chief commercial officer, in a conversation with TPG.
The revamped Big Front Seats are intended to rival offerings from American Airlines, Delta Air Lines, United Airlines, and Alaska Airlines, all of which provide similar first-class recliners. However, these airlines offer a more extensive service compared to the Go Big experience, including full meal service and dedicated flight attendants on routes over 750 miles, along with separate lavatories.
Starting August 16, passengers will be able to book all of Spirit's new fares, with the complete Go Big and Go Comfy onboard experiences launching on August 27.
While Spirit aspires to sell a high volume of its new premium fare bundles, there may be instances when these seats do not fully sell out. To avoid flying empty seats, Spirit's chief transformation officer, Rana Ghosh, informed TPG that they plan to adopt a "surprise and delight" strategy for upgrades, particularly for cardholders and some status members, which will be implemented gradually over time.
Spirit's new fare offerings resemble those of major network airlines rather than typical low-cost carriers. This shift is intentional, according to Christie, who noted that these fare bundles align with current traveler expectations.
"We are responding to market demands regarding what matters most to our customers. Spirit is committed to rapidly providing these products to its passengers," he stated.
Earlier this year, Spirit introduced a series of customer-friendly enhancements, all of which will be incorporated into the new fare structures. Notably, all tickets can be changed or canceled without incurring a fee (with a possible fare difference) for a travel voucher that remains valid for one year. Additionally, the weight limit for standard checked luggage has increased to 50 pounds.
Spirit's revamped boarding groups
To accommodate the new fares and streamline turnaround times, Spirit is overhauling its boarding process, implementing a five-group system starting August 27.
Priority boarding will consist of groups 1 and 2, restricted to those who purchase Go Big and Go Comfy fares, as well as Free Spirit Gold and Silver elite members, Free Spirit cobranded credit card holders, and active-duty U.S. military personnel and their families.
The specifics regarding the division of groups 3, 4, and 5 remain unclear, but we will provide updates if the airline shares additional information.
Spirit launches priority check-in
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We've returned to a point where Spirit used to charge extra for passengers to print their boarding passes at the airport.
Starting August 27, Spirit will roll out priority check-in lanes at over 20 airports across the country. This lane will provide the airline's premium travelers with expedited access to a check-in agent.
Travelers eligible to utilize the priority check-in lane include those who purchase a Go Big fare, as well as Free Spirit Gold elite members and holders of cobranded credit cards.
Key takeaway
These changes come amid challenges for Spirit. The airline has not only been struggling financially but also faced a significant setback when the U.S. Department of Justice successfully blocked Spirit's proposed merger with JetBlue.
Combined with rising costs, this has led many prominent figures in aviation to speculate that ultra-low-cost carriers may be headed for bankruptcy. "They're going out of business," said United Airlines CEO Scott Kirby in a recent episode of "The Air Show" podcast when discussing the future of ultra-low-cost carriers.
Spirit is on a mission to enhance the passenger experience while striving for profitability. This initiative involves a series of customer-friendly policy changes, forming the basis of its extensive fare rebranding strategy.
Spirit and its ultra-low-cost competitors must take measures to thrive in an environment where major network carriers are increasingly competing with their basic economy fares and broader service networks. Notably, Spirit's significant rival, Frontier Airlines, implemented similar policy changes earlier this year.
Christie stated that these new adjustments enable Spirit to "introduce several offerings that will provide us with the chance to compete more effectively across a wider range of product segments."
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