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1、Mission The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.,About SouthWest,More than 37 years ago, Rollin King and Herb Kelleher got together and decided to start a different
2、 kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. Began as a small Texas airline Fly to 64 destinat
3、ions across US 3400 times a day, With over 500 aircraft Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to sh
4、are externally with every Southwest Customer.,Offerings,Always the innovator, Southwest pioneered Senior Fares, a same-day air freight delivery service, and Ticket less Travel. They Provide low cost flying across the U.S cities They are so low they compete with car fares They have a brilliant websit
5、e which any customer can easily navigate through They provide additional offerings such as car/ hotel bookings on their site booking. So lowly priced and they still offer discounts Provide vacation packages to locations like (LA, Las Vegas, Disney Land) Rapid Rewards - Fly just eight (8) roundtrips
6、in 24 consecutive months,Pricing Strategy,SWAs pricing strategy is to charge the lowest possible fare that still enables the airline to make a profit. They think that there competition is with automobiles. Southwest must keep its operating cost to the bare minimum. These fares would not be sustainab
7、le unless it is supported by a high passenger load factor,Operation Simple It offers a single class, open seating, and no meals. Its aircraft fleet consists only of one type - the Boeing 737 - to minimize training and maintenance costs. Run its own reservation system, and sells a significant portion
8、 of reservations through its Web site. It can cut costs in the customer service,Profit Analysis,Analyzed viability of increasing profits by reducing airfares 20% Investigated a SWA high volume route for this analysis (LA / Oakland) Current route demographics:,Current SWA Costs,Costs,Revenues & Profi
9、t,Max Profit Point,Max profit point realized with a 15% reduction in ticket price,Cost vs. Revenue vs. Profit,TC,Profit,TR,PROMOTION,Rapid reward offer Annual education travel program Special offers Celebrity endorsement Promotional partners Commercial Ads,Rapid Reward Offer,Get one bonus credit whe
10、n you fly into or out of Minneapolis/St. Paul! Receive triple Rapid Rewards credit and up to 25% off with Alamo! Avis rewards Southwest Airlines Rapid Rewards Members with double credit and up to 40% off! For a limited time, earn a bonus Rapid Rewards credit at any Best Western Hotel! Budget rewards
11、 Rapid Rewards Members with up to 40% off and up to double credit! Receive triple credit at Cambria Suites hotels Double up with Dollar! Dine your way to Rapid Rewards credits with Rapid Rewards DiningTM. Up to 20% off & earn double Rapid Rewards credits with Hertz! Earn Triple Rapid Rewards Credits
12、 with Hyatt Book smart. Receive double credit at Thrifty.,Annual Education Travel Program,Southwest Airlines and the Hispanic Association of Colleges and Universities Open Travel Program for College Students Online registration starts from 13 apr 09 till 5 jun 09.,Celebrity Endorsement,Model Bar Ref
13、aeli unveiled Southwest Airlines new SI One 737 at LaGuardia Airport in New York today.,Promotional Partners,Credit cards,Rental cars,Hotels,Dining,Retail,PEOPLE,DIFFERENT CAREERS AT SOUTHWEST AIRLINES,CONTINUE,CONTINUE,BENEFITS - THE EIGHT FREEDOMS,CONTINUE,CULTURE,Culture: the development, improve
14、ment, and refinement of the originality, individuality, identity, and personality of a given people.,Work Hard Desire to be the best Be courageous Display a sense of urgency Persevere Innovate,Adhere to the Basic Principles Treat others with respect Put others first Be egalitarian Demonstrate proact
15、ive Customer Service Embrace the SWA Family,Have FUN Maintain perspective (balance) Celebrate successes Enjoy your work Be a passionate Team player,PLACE,SOUTHWEST AIRLINES TOP TEN AIRPORTS,Low cost Un tapped market Less facilities Comparatively less luxuries,KEY POINTS,THE SOUTHWEST EFFECT AND CODE
16、SHARE AGREEMENTS,Morris Air Muse Air Iceland Air ATA Airlines West Jet Airlines Volaris,ROUTE-MAP OF SOUTHWEST AIRLINES,NON-STOP SERVICES,Process,Southwest has built a successful business on an unusual model: Flying multiple short quick trips into the secondary (more efficient and less costly) airpo
17、rts of major cities Uses only one aircraft type, the Boeing 737 Tickets cannot be purchased through common online venues and a minority are booked through travel agents. Southwests tickets are issued directly by the airline over the phone or online at the companys website. Southwest allows passenger
18、s to change reservations without additional cost. Refunds can be made online where you need to cancel the reservation or you can do so by calling the reservation number.,Customers are not assigned seats; rather, they are assigned to one of three “boarding groups“ Southwest offers no aisle or window
19、seat assignments Extend no upgrades nor preferred boarding status to their most frequent travellers Southwest historically allowed three pieces of luggage to be checked in free as opposed to the limit of two on the domestic flights of some other U.S. airlines Southwest served smaller meals than the
20、meals served by full service airlines, with shorter flights receiving single small snacks and soft drinks, and longer flights (with a duration of about 3 hours or more) meriting “Snack Pack“s of pre-packaged goods. In the 2000s these meals in a bag typically exceed the food served on full-service ai
21、rlines. There are several flights that are at least of two hours long whereby you are served with peanuts and pretzels. If you are on a non stop flight, then a packaged snack will be served. Other complimentary tea, coffee, non alcoholic drinks are also available but some product such as beer, wine
22、may be charged. Provide no lounges with free drinks,Physical Evidence,Southwest is known for colourful boarding announcements and crews that burst out in song.,“Marvin Martinez, a bellman and front desk agent at the San Antonio River Walk Marriott, says, “We all bring out smiles in our own special w
23、ay. Me, Im a performer. Every day Im on stage in front of my biggest fans, my guests. When I walk into the lobby, Im on! Im an aggressive hospitality animal. My guests always leave satisfied.”,An Birds Eye View,An Birds Eye View,Part C: Prescribe,1.Ptoduct with competitors Since recent terrorist att
24、acks, competition for southwest airlines has shifted from major airlines to low-fare airlines.,After September 11,2001, Delta, the second largest U.S. carrier, cut 21 percent of its workforce and in 2006 operated with approximately 47,000 employees. A third past competitor ,America West, is faring b
25、etter than Southwests above two competitors. Jet Blue is one of Southwests most noteworthy competitors.,An Birds Eye View,All of the competitors have come into head-to-head competition with Southwest on several occasions.,For now, considerations for serious expansion have been put on hold as many ai
26、rlines are still trying to recover from losses over the past few years.,An Birds Eye View,An Birds Eye View,Part D: The Future,The problem : Competitors have learned from Southwest and its unique management strategies, and they are using these tactics as well as unique ones to win over consumers. So
27、uthwest has always utilized conservative growth tactics ,but this may hurt them if new competitors opt for faster growth strategies.,An Birds Eye View,2. The measure: In mid-2007, Southwest provided service to only sixty-three cities in thirty-two states, so there are tremendous opportunities for expansion,Southwest to begin service in their communities because of the positive impact the company has had when it began operations in a new location.,An Birds Eye View,