Key facts
- Southwest Airlines is ending its policy of two free checked bags.
- Southwest Airlines is moving away from its open seating policy.
- MGM Resorts has launched its first all-inclusive package.
- These changes aim to address shifting consumer expectations and tighter margins.
- Barry Diller has proposed an $18 billion bid to take over MGM Resorts.
Southwest Airlines and MGM Resorts are reworking their business models to adapt to shifting consumer expectations and tighter margins. Southwest has ended its long-standing policy of two free checked bags and is moving away from open seating, changes described by EVP and Chief Customer & Brand Officer Tony Roach as necessary for long-term survival and sustainability. The airline is also introducing more premium offerings to attract higher-spending travelers without mimicking competitors. Despite industry headwinds, Southwest's stock has risen over 25% in the past year.
MGM Resorts, facing declining visitor numbers in Las Vegas (down 7.5% to 38.5 million in 2025), has launched its first all-inclusive package, bundling rooms, resort fees, parking, meals, and entertainment. This move addresses customer concerns about affordability and hidden costs. The company's recalibration occurs as media mogul Barry Diller has proposed an $18 billion bid to take over MGM, believing the business has not yet reached its full potential. COO Ayesha Molino emphasized the company's focus on operational execution and delivering excellent guest services amidst the proposed deal, while keeping 60,000 employees focused on their daily tasks.