Southwest airlines consolidating reservation centers
An added goal was to embrace all the recent transformational technology changes that promised to further enhance rewards programs, including social media, sophisticated data analysis, and ubiquitous mobility, which were fundamentally changing how the airline served its customers.
The goals were lofty, but so too were the risks, especially for a company long recognized by travelers and independent analysts as a leader in customer experience.
Growing ancillary revenue is "definitely an objective" for Southwest, likely to show in 2018, Kelly said.
He declined to elaborate on those services, except to say, "I'm not talking about charging for bags. But we do have opportunities to invest in tools and techniques and beef up our resources to pursue some opportunities."During the third quarter of this year, Southwest's total operating revenue declined 3.4 percent year over year to .1 billion.
Frontier Airlines declared bankruptcy in April 2008 when its main bank demanded a huge cash injection with only a few days notice.
Frontier was already operating as a low cost carrier – with one fleet, focused operations at one hub airport (Denver International), and no legacy costs (no pension, for example).
Our newly renovated concourses are spacious, comfortable, and offer plenty of pre-flight tastes and treats. Pick up a t-shirt at the gift shop, or a bag of melt-in-your-mouth chocolate covered Michigan cherries.Distribution costs were targeted as a real opportunity for Frontier.According to industry sources, although Frontier had somewhat lower distribution costs than most legacy carriers, Southwest had approximately half the cost per passenger in reservations and distribution as Frontier had: .78 per passenger enplaned versus Frontier’s .77 per passenger enplaned in 2007.Missteps were not an option, and fortunately, the committee had an ace in the hole—a corporate tradition of keeping the needs of consumers front and center.“Because of that, we ended up with a win/win,” Green says.
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