Project #54431 - Southwest Airlines

Introduction

If you have flown in the past few years it is likely that you have experienced frustration due to recent airline practices that cut costs and increase revenue. Some of these practices include: eliminating free meal, drink, and snack service on flights; eliminating pillows and blankets; and possibly the most frustrating practice of all, required baggage fees for checked and even carry-on bags! In this assignment you will examine one airline that has taken a stand against these additional airline fees and at the same time is setting records for profitability. How is this airline offering the best value for an even better price? In this assignment you will spend a considerable amount of time researching Southwest Airlines and answer a series of questions regarding their success with specific pricing strategies.

Instructions

In a short description (200-500 words) you will answer the three questions below about Southwest Airlines. Before you answer these question review the information found on the Southwest Airlines website. It will also be helpful to read the following articles:

USA Today: Southwest says lack of bag fee helps increase revenue

The New York Times: Aboard Planes, Class Conflict

Los Angeles Times: Southwest Airlines chief is flying high

Questions:

  • How does Southwest Airlines’ pricing strategy create value for its customers?
  • How does a low-cost, no frills airline create a better value for the customer?
  • What are some specific examples of what Southwest has done to give the customer more for their money?

Subject General
Due By (Pacific Time) 01/31/2015 12:00 am
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