DALLAS -- Southwest will launch a reformulated vacations packages brand in mid-2025 and run it in-house.
Getaways by Southwest will replace the Southwest Vacations brand, whose operations are outsourced to Apple Leisure Group.
As a result, Getaways by Southwest packages will be sold directly within the Southwest website as well as in other direct Southwest channels, a change from the current indirect model.
The move is part of Southwest's broader initiative, detailed at a the airline's Investor Day on Thursday, to increase profits over the next three years. Other major portions of the initiative include selling assigned seats, retrofitting planes with extra-legroom seats, entering airline partnerships beginning with Icelandair, and various cost-saving measures.
Southwest executive vice president of transformation Ryan Green said Southwest has the most shopped U.S. airline website. Southwest also carries double the total passengers of any other airline to Orlando, Cancun, Hawaii, Las Vegas, Montego Bay and Punta Cuna -- six markets that comprise 40% of package tour customers, Green said. Those factors, Green said, ideally position Southwest to run its own vacation packager.
Getaways by Southwest will offer various consumer benefits not available with Southwest Vacations, Green said. Customers will be able to purchase packages with Rapid Rewards loyalty points.
Green also promised an industry-leading cancellation policy. When vacations are canceled, customers will be able to use the travel credit for a different vacation if they choose. But they'll also have the option of applying the credits for flight-only trips.
"It will be very friendly and flexible," Green said.
Because Getaways by Southwest will be an in-house program, Southwest will have direct relationships with hotels, opening doors to new potential lodging perks, Green added.