Southwest Airlines: Staying Ahead in the Pricing Game

1 What has been southwestern United Statess traditional determine system? Why has this pricing strategy been so successful throughout the airline business businesss first three decades? Southwests traditional pricing strategy has been the choice of buying chintzy airplane tickets for fair basic transportation services, without any plain service, such as meals. Even though there is umpteen people that buy expensive tickets just to have in all the comfort that others airlines offer, Southwest decided to do the opposite and marketing just the transportation itself for the lowest price it could be just so you could get to places without paying too much for it. They unploughed it simple and inexpensive. 2 What values do airline customers both product line and leisure snuff iters seek when they buy air travel tickets? Has Southwest done a emend job than competitors of contact the needs of these air travelers? In what ways? Both business and leisure travelers seek for flexibility, convenience and a balance in the midst of good service and price when buying airline tickets. Southwests policy allowing customers to change flights without penalty appealed to customers. But what actually made Southwest stand out to both customers were its universal flights serving a ton of cities at convenient times and low prices.

Though Southwest did not serve meals or provide electronic entertainment like other airlines, its pricing met the needs of its low-cost seeking target market better than other airlines. 3 What internal and external factors affect airline pricing decisions? What impact atomic number 18 these factors now having on airline pricing and profitability? External factors that effect airline prices are: gas prices, seasons, threat levels, competition and prices of inputs to making the airplanes and running their business. immanent factors effect such as labor cost, cost of the planes, render at the airports, terminal fees. All these factors are increasing good the airfares even though Southwest keeps it price... If you want to get a full essay, order it on our website: Orderessay

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