Southwest Airlines: Staying ahead in the pricing Game

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The success of Southwest’s pricing strategy in the first three decades was due to their lower costs compared to other airlines. They focused on serving smaller airports and did not offer meals or electronic entertainment, keeping their ticket prices low. However, both business and leisure travelers seek lower prices for air travel, and some business travelers are willing to pay more for last-minute tickets and additional amenities that Southwest does not offer. Southwest’s current pricing strategy offers higher fares for additional benefits such as preferential boarding, frequent credits, and free cocktails. This strategy differentiates them from competitors and is sustainable. Marketing recommendations for Southwest include not increasing fees, maintaining good quality, offering tickets through internet sources, and regularly updating their website to stay in contact with customers.

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what has been Southwest’s traditional pricing strategy? Why has this pricing strategy been so successful thought out the airline’s first three decades? Answer 1 : Southwest pricing strategy was the complete opposite of the industry’s conventional wisdom. They gave more flexibility to move planes around based on demand.

Pricing strategy was successful thought out the first 3 decades because they cost were very lower relative to other airlines. Southwest did not serve the major airports dominated by the major airlines. They serve no meals only snacks they did not charge passengers a fee to charge same for ticket they had no electronic entertainment and did not offer any retirement plan what values do airline customers- both business and leisure travelers – seek 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? Answer 2: Both business and leisure travelers seek to buy a air ticket with lower price but at the same there are some business travelers who were often walling to pay higher prices if an air line offered last minute tickets assigned seating first class cabins and privet airport lounges none of which southwest had.

Therefore southwest did not do a better job than competitors of meeting the needs these air traveler what is southwest’s current pricing strategy? Does this strategy differentiate southwest from its competitors? Is the strategy sustainable? Answer 4: Southwest current pricing strategy was new for category. These fares are $30 to $50 higher for round trip ticket. The tickets however offer the customers preferential boarding bonus frequent credits and a free cocktail on each flight.

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They also offer more nonstop routes and more frequent flight that work with business traveler’s schedules. As they charged their strategy they can attract more customers which shows that their strategy differential them from its competitors. Yes the strategy is sustainable because like other airlines it is their beginning to change extra fees and they are changed and the environment they are in has also change. what marketing recommendations, including pricing recommendations, would you make to southwest as it moves into the next decade? Answer 5: We should like to recommend them that they should not increase the fees this will make upset their regular customers.

They will be disappointed and move to other airlines. They should stick with their good quality. Their tickets should be always available though internets as the internet sources are growing more. They should regularly upload their updates in their web site which will make them in contact with their regular customers.

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Southwest Airlines: Staying ahead in the pricing Game. (2017, May 18). Retrieved from

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