1) What has been southwesterlys traditional pricing strategy? Why has this pricing strategy been so successful throughout the airlines first base three decades?
Since its inception, Southwest has prided itself on the pursuit of low fares. It has of all time sought to remain the lowest in the airline manufacturing for specific routes that it flies. When Southwest successfully is the market leader in a low priced route, other airlines drop fares to match in fellowship to remain competitive. This is something that generally occurs with most airlines nowadays and not just Southwest except those flying to or from a hub city. This pricing strategy has been successful because Southwest operates as a no frills airline. It does not have first class, no butt end assignments, no airport lounges, flies only one persona of plane, no meals, few promotions, and is not responsible for a allowance for its employeesâ€"to name just a few. The elimination of these expenses contributes to the success of Southwests low pricing strategy and enables them to keep their prices low even when their competition providenot match price because they require the supererogatory profit to maintain these cost centers that Southwest does not have.
Moreover, Southwest prides itself on not charging additional fees, such as baggage fees, commonplace with its competition in todays market.
2) What determine do airline customersâ€"both business and leisure travelersâ€" prove when they buy air travel tickets? Has Southwest done a better job than competitors of meeting the needs of these air travelers? In what ways?
Each class of customers generally desires different things. channel travelers generally do not care as ofttimes about price and value convenience, the type of aircraft flown, the ease with which tickets can be changed, a great frequent flier platform that has huge perks, a lush first class cabin and assigned seating, a sumptuous airline lounge with dislodge drinks, and the assurance of on...If you want to get a full essay, order it on our website: Orderessay
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