operated. During this time, travel agent fees were going through the roof and reserving an airline ticket was a complicated, drawn-out process. To counter this, Southwest implemented its own reservation system tailored to their own needs, which also included the industry’s first paperless ticketing system; but this wasn’t the end of IT innovation from Southwest Airlines. In 1995, Southwest.com was launched, and the online ticketing and reservation system was launched in 1996. Soon thereafter, Southwest Airlines ticket sales were primarily coming from their online reservation system (70%). By the late 90’s, Southwest.com was the most visited airline website [4]. By the start of the millennium, Southwest airlines had already mastered another IT milestone which is still in use to this very day: allowing the passenger to print their own boarding vouchers and allowing passengers to self-check in on their own computer even before arriving at the airport [4]! By implementing these two features on the Southwest website, the airline was able to reduce the number of customer service agents at check in counters and allowed customers to spend minimal time waiting at an airport [2]. This increases both passenger and staff efficiency, making the mundane task of waiting around at an airport virtually a thing of the past.
Industry Analysis: Applying the Porter model to Southwest Airlines, we can see airline that is surrounded by fierce competition and costs [4]. For intra-industry
Southwest Airlines is a major US airline established in 1967 that services a multitude of cities in all 50 states and beyond. The company is known for its outstanding quality in providing services and it 's cost effective ticket prices to its many passengers throughout the nation. This airline is based in the southwestern United States, in the city of Dallas Texas, and due to the tremendous number of airplanes that it has and the timely service that it provides to its passengers, this airline services more US passengers than any other airline. This airline also has the largest fleet of planes of any economical or low-cost airline service in the world and employees more than 45,000.
Southwest employs a relatively simple fare structure, featuring low, unrestricted, unlimited, everyday coach fares as well as even lower fares available on a restricted basis (Bailey, et. al., 2009). In January 1995, Southwest Airlines became the first major airline to introduce a Ticketless Travel option, eliminating the need to print and process a paper ticket altogether (About, 2012). This innovation was born out of necessity after it was tossed out of three other computer reservation systems (United, Continental and Delta’s, as these airlines felt threatened by Southwest’s competitiveness). This innovation allows customers to completely bypass the computer reservation systems of major airlines by
Today Southwest Airlines is the biggest domestic passenger carrier in the United States of America operating more than 3,400 flights a day. They provide service to 93 cities and 5 countries internationally. Last year Southwest Airlines, “Enplaned approximately 136 million Customers (About Southwest). The airline has grown since it’s first years flying out of Love Field in Dallas, Texas. In the beginning, Southwest provided flight service to only three Texas cities in 1971. One of Southwest Airlines’ early advertisements was a double page ad that ran in Dallas newspapers during May announcing their first flight on June 18, 1971 (Lusk). This advertisement introducing a new airline would soon revolutionize the airline industry and create the new category, of low cost carrier, to the world.
Introduction While flying home to Texas last summer with Southwest Airlines, I had the most fun and unique experience with an airline that I could ever remember. It all started out quite oddly enough in the lobby just before takeoff. As I was checking in at the ticket counter, the representative asked me if I wanted to play a game that could get me free round trip tickets. "Sure, who wouldn't," I exclaimed. As she gave me my boarding pass she said, "Great, how many holes do you have in your socks?" Initially caught off guard, I responded, "Excuse me!" "The free tickets are being given to the customer who has the most holes in their socks," she explained with a perky smile.
Southwest Airlines (SWA) begins in June 18, 1971, when SWA first operated a first airline consul between Houston, Dallas and San Antonio. Rollin King and Herb Kelleher are the founders of the company. The end of 1971 SWA immediately began to expand.
Southwest Airlines is globalizing their company in order to reach a bigger market, and become competition for other companies. Southwest Airlines has already conquered the domestic market beating American Airlines, United, and Delta according to Fortune. Access to a new market is what motivated Southwest to globalize, they are expanding to the south of North America, with their new assets found in their acquired airline AirTran Airways (LeBeau, 4) . Southwest Airlines has brought low rates and a great experience to the domestic market, which was warmly received, they now plan to dip into global market to bring better service to all.
Southwest Airlines is a passenger airline company that arranges and provides scheduled flights for passenger and transportation freight services. The company mainly provides, low-fare, point-to-point services all over the US and near-international markets. The headquarters is located in Dallas, Texas and as of December 2014, the company employed over 46,278 people. The company was founded by Rollin King and Herb Kelleher in 1971. Southwest was the first airline to introduce the frequent mile program. This took place in the mid 1980’s. This type of program allowed passengers to add up traveled miles to use later as credit on a future airline ticket. The traveled miles would add up and would also reduce the price of a ticket. Southwest created the idea of senior discount, fun fares and the fun packs. These were perks that attracted people from different age groups. When Southwest originally was incorporated, the idea was to operate in three cities in Texas, but after taking over Morris Air and TranStar in 1987, this gave them a cutting advantage in the airline industry.
When on vacation, the first people you deal with are the airline companies, yes this is the dreaded trip to the airport. Way to often people have their happy vacations ruined by inconsistent and unreliable customer service, making them late for flights because of long lines, slow service, and unreliable technology that is difficult to use. However, Southwest airlines is one company that is standing out above all others. Known for their outstanding customer service and “Bags Fly Free” campaign, Southwest has held their ground against rising prices in airline travel and continued to expand its reaches while at the same time attracting many satisfied customers. Southwest Airlines was founded on June 18, 1971 by Rollen King and Herb Kellener. The very same year, Southwest began its flights servicing Dallas, Houston, and San Antonio. Southwest quickly climbed the ranks within airline the industry and became the fifth largest US air carrier by 1998, carrying an average of 50 million passengers a year across the United States. From then on, Southwest soared above the rest of the mid-range air carriers, and continues to do so to this day. Southwest quickly became known for its innovation when it comes to customer service and satisfaction, and it is still well known today for its simple and convenient customer service. Southwest has also been deeply involved when it comes to their social responsibilities, taking action to be ecofriendly whenever, and wherever possible. (Avstop)
According to Southwest.com “More than 38 years ago, Rollin King and Herb Kelleher got together and decided to start a different 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. And you know what? They were right.” (Southwest) A southwest airline is a top airline because of their mission, striving to meet and exceed customer service by attending to customers in a warm, friendly high quality manner.
Southwest Airlines, since the beginning has struggle and fight to get in the airline business. Starting with Dallas, Texas. Southwest had to fight to stay at Love field airport, when all the airlines moved to the new Airport of Dallas-Fort worth International airport. Winning this battle gave Southwest the opportunity to get all the customers they wanted, from the near downtown airport, instead of driving 15 miles for the new airport, pay for expensive parking and having to arrive one hour earlier. However the other airlines did not like it, like American Airlines and Braniff International. They would have to pay higher fees for use of the new airport and Southwest Airline did not. The other great battle
Customers are part of the process and taking their roles willingly. For distribution of tickets, initially commission was given to travel agents but later Southwest implemented a “ticketless” (paperless) travel program and later the development of Southwest.com as a means of using the internet to sell travel directly to customers. Southwest was a true pioneer in utilizing the internet, first establishing a website in 1995. This lowered distribution cost.
Southwest Airlines began operations in 1971, and has remained profitable after 44 years. The company has experienced challenges such as high fuel prices, a recession, and even the tragedy of 9/11. Their strategy is unique and one-of-a-kind. They have innovated the airline industry by keeping costs low while not sacrificing quality or punctuality.
Southwest Airlines /Competition Paper Introduction: Air transport is a global industry and as such every airline is a likely challenger for every other. It is contrary to expectation that any airline will be able to contest on a large scale without being associated to other carriers. Traffic feed is the industry's lifeblood and stand-alone carriers will be labored to carry low-revenue point-to-point traffic when front with airlines able to offer manifold route alliances. Southwest Airlines is a major carrier to the USA accounting for about 85% of its airfreight tonnage, but it also operates scheduled services to South Africa, Japan and Hong Kong. The subject of strategic alliances inside the air transport industry is not a well-researched
Southwest was the first major airline to introduce a ticket-less travel option. The company eliminated the need to print a paper ticket altogether. The company also began using a computer reservation system to provide ticketing and automated booking services to customers. Together, with the above programs, the company created Internet ticket-less travel sales (Southwest 2005).
Southwest Airlines was created in the late 1960’s by a businessperson Rolling King, and law school graduate Herb Kelleher, who sought a faster travel time between Houston, Dallas, and San Antonio, Texas (Dess, et al., 2014, p. C137). After overcoming all of the antagonism and legal problems of many major airlines, Southwest was able to take its first flight in 1971 (Dess, et al., 2014, p.C137). With a dedication and will power to grow the company, King and Kelleher sought out ways to increase growth.