PPT

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Differentiation Strategy Southwest Other Airlines • Focused on shorter routes within 1 hours of travel • Considered competitor as the car travel and not airlines • Customer experience is considered the best way to win loyalty by “Fun-LUVing” attitude for in-flight entertainment • Culture committee made to guide Southwest in creating the fun loving Aura • Cashless cabin (credit card only for onboard purchase ) • Minimum turnaround time (10 minutes), 1/5th of competitors • Point to point service with no first class, no assigned seats no interlining of bags or passengers and no code sharing • Flights from Airports not served by other airlines , less congested and more easily accessible to business travelers • Prices set according to private…show more content…
sharing capabilities Options feasibility Changing Boarding Process • Changing legacy system based on first come first serve basis with no assigned seats, low load factor • Change to reserve seats in advance • More concerns on who sit next to customers • Slowed the boarding process • Decision on maintaining the open seating • Allowed customers to reserve seats in waiting line to get preferred boarding treatment • Priority boarding product called “business select” for a slight premium fare New fares, Products & Services • Early bird fares to those booking early and altered the Rapid Reward program to make it quicker to earn free flights • Onboard internet and cashless cabin for onboard purchases • No fee for changing tickets and “bags fly free” policy allowing customers to check up to 2 bags at no cost to continue Southwest’s low fare, high service image Acquiring slots and gates at LaGuardia • Used for low cost carrier for domestic , international and transcontinental flights • $7.5 million to get the slots and it could generate this revenue from 8 flights operating daily • But this would be a departure from initial strategy of operating out of non congested airport • Also this could cause delay in flights as 50% of the delays happens at congested airports in US • Landing costs at LaGuardia would be significantly higher than those Southwest incurred at other airports • Shuttling planes between 1-2 cities served by LaGuardia to ensure that the problem does not flow in

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