Southwest Airlines
How does Southwest's customer service affect its bottom line?
Any airline is by nature a services business, which by the structure of its business model is centered on creating accurate expectations of customers and then exceeding them. By continually surpassing the expectations of customers, companies build exceptional brand equity and loyalty. This is what Southwest has done such an exceptional job of in one of the toughest services businesses to excel in. They have continually set expectations with customers and then deliberately designed a myriad of processes to ensure everyone has a good flight and at a competitive price.
The ability to continually exceed expectations and deliver excellent customer experience is a large part of why Southwest Airlines continues to be profitable and has the honor of being the only American-based airline to never file for bankruptcy. By delivering excellent customer experiences on a consistent basis, business and pleasure travelers alike reward them with more business. And all of these factors taken together contribute to a profitable, scalable business model that Southwest is perfecting with its unique approach to customer service.
Among 47 industries, airlines overall earn the lowest customer satisfaction score. What could they learn from Southwest?
Put the customer at the center of every process even if...
Southwest Airlines Air travel is still the preferred means of transport in the United States of America largely because it is faster. However, it has in the recent times experienced decreased growth from the peak in before the 1990s. The period between 1980 and 1990, there was a sharp increase in the number of people travelling by air. Today, major carriers have cut costs in the face of intense rivalry and
Southwest Airlines has been a model of success for the past forty years. It is a success based on company values, on low prices, on business innovation, and on the quality of the service, among other elements. The company built on these values and used an adequate promotional campaign and strategy to build brand loyalty. Today, many of the company's clients use its services because of what is known as
Southwest Airlines is one of the most successful low-cost airlines in the world. The company's focus on constant innovation, excellent labor relations, and sound financial management have ensured its success at a time when many companies have suffered from the economic downturn. In this way Southwest Airlines has created an example of business success for many. The company's success is also due to the consistency among its organization practices, which
Southwest Airlines The airline industry has been one that has consistently lost money during the last decade. Even before that, if an airline did not have a good business strategy, they were most likely doomed to failure. Many people do not remember Braniff, TWA or Pan American, but for a long time they were among the largest air carriers in the world. He present model, for airlines as well as other
Southwest Airlines Analysis Established in 1971 by Herbert D. Kelleher and several business partners, Southwest Airlines has secured a strong position in the airlines industry over the last 35 years. Southwest and its wholly owned subsidiary, Air Tran, serve a combined 103 destinations in 41 U.S. states, the District of Columbia, the Commonwealth of Puerto Rico, and six near-international countries (Johnson, 2011). Both entities combined offer over 4000 daily flights. The
Southwest Airlines The deregulation of the United States domestic civil aviation industry in 1978 saw airlines begin to compete freely. However, the capital-intensive nature of the business, along with undifferentiated products and services, has led to 120 airline bankruptcies since then. In the light of this context, Southwest's ability to compete is particularly interesting as it has not only continued to expand, but has been the only one to earn a
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