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Southwest vs continental airlines case study
Southwest vs continental airlines case study
Southwest airlines in summary
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Are We Unknowingly Supporting the Villain?
“A Tale of Two Airlines” by Christopher Elliott brings good versus evil to a whole new level. It depicts Southwest Airlines as a hero, who only cares about the well-being of its customers. On the other hand you have the “villain,” Spirit Airlines. Spirit attempts to deceive its customers by advertising the lowest possible price, however underneath that cover is hidden fees. The purpose of this essay is to analyze “A Tale of Two Airlines” to see if Elliott can pull passengers out of Spirit’s evil grasp and back into the trusty hands of Southwest Airlines.
Christopher Elliott is a consumer advocate as well as a consumer service expert, this means that on a daily basis Elliott fights to get the absolute
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best for each customer. He also has written many books on airfare and the best way to fly. This immediately establishes ethos in his essay, because Elliott has proven that he knows what it takes for an airline to win over the consumer. When the article was published in National Geographic Traveler in December 2012/ January 2013 Spirit Airlines had recently announced that they were expanding into Texas. Elliott felt compelled to write this essay because he knew that Spirit was moving onto Southwest Airline’s home turf. An issue could arise from this, as in Spirit stealing all of Southwest Airline’s hard earned customers due to their low prices. Elliott didn’t want the “hero” Southwest Airlines to lose business, so he jumped into action writing an essay with a claim of: Give your business to a company who cares (43).
This is a claim of value, it puts a good company up against a bad company. He supported this claim by showing that Southwest and Spirit Airlines were worlds apart when it came to customer service. Southwest Airlines constantly goes out of its way in order to give the passenger the best experience possible. For example, giving concerts on the airplane, going against their own rules in order to make someone happy, and not punishing customers with fees. Spirit Airlines is the exact opposite. Spirit Airline’s customers say they are “treated like cargo” and the business is ran more like a “trucking business” (42). The saddest part of all is that Spirit Airlines couldn’t even find it in their heart to immediately give a veteran a refund after he found out he was terminally ill and couldn’t fly. It took a rally of veteran groups to convince the CEO to give the man his money back. The only thing Spirit Airlines really has going for them is the low prices. However, you have to jump through hoops to ensure that you are getting a low price and not walking into a trap full of fees. This all boils down to the warrant: Businesses like Southwest Airlines deserve our business over uncaring companies such as Spirit …show more content…
Airlines. Each customer has the choice of what airline they want to fly with.
When the consumer chooses price over quality, they get the service they paid for. Spirit Airlines has the same amount of customers as Southwest, even though they have horrible service, therefore Spirit has no reason to improve their customer service. That is because Spirit brings in the big bucks without even trying. Elliott argues that price shouldn’t be the only thing we look into before booking a trip, but also to take into account a “company’s service reputation” (43). There are so many different review sites out their nowadays you can find a review on nearly any place there is. Often times if people were to do their research before just jumping into something they would find out that the deal isn’t worth it. Spirit Airlines is one of those times; after a quick search using yelp you can find dozens of one star ratings and the only positive being the price. On the other hand you have the Southwest Airline reviews. There are dozens upon dozens of four and five star reviews on yelp for Southwest Airlines each exalting the staff and how clean the airplane was. This instills the fact that we have to know a business’s reputation before requesting their
services. Elliott effectively proved his arguments. No one wants to go to a restaurant and have the worst waitress/waiter ever, no one wants to sleep in a motel where bugs are crawling up the wall, no one wants to be “treated like cargo” no matter how cheap it may be. People want good service, and they want to feel cared about. With the hero, Southwest Airlines, that’s exactly what you are getting.
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
By exposing readers to a world where workers are underpaid and mistreated, corruption is heavy, and factories control a whole neighborhood, Sinclair shocks readers and explains that the Packington factories “[were] really not a number of firms at all, but one great firm, the Beef Trust” (Sinclair 112). Similar to how the airlines shared information to upcharge passenger tickets and control the airport, Sinclair writes that “every week the managers of [The Beef Trust] got together and compared notes” (Sinclair 112). Stating that these meetings were not to help the workers or consumers, because they judged the effectiveness of workers there and “fixed the price they would pay for beef…..and all the dressed meat in the country” (Sinclair 112). Sinclair also tells readers that the mergers and cooperation not only hurts workers and consumers but also smaller companies. For example, the airlines that grow and try to “bully foreign carriers” (Thomaselli) can be compared to the man who tried to “gather this filth in scows, to make lard out of it” (Sinclair 97) in Bubbly Creek but was stopped when “the packers took the cue, and got an injunction to stop him, and afterwards gathered it themselves” (Sinclair 97). Even though large airlines and smaller airlines both try to cheat to have a winning hand, the monopolies end up on top and can have a more widespread hold on the nation’s travelers and have “80 percent of the nation’s air traffic to be concentrated among four airlines”
Superheroes and villains are not commonly associated with airlines, but in the article “A Tale of Two Airlines” by Christopher Elliot, it is put into a different perspective. The two airlines in question are Spirit and Southwest. Although both have some similarities, they both have considerably different views on how to treat customers. Southwest practices treating customers with respect, while fares may be a little higher. Spirit’s beliefs are to treat customers “like cargo” with lower fares. With their friendly attendants and better overall customer interaction, this appoints Southwest as the hero, making Spirit our villain. Elliot makes his point by exclaiming the “heroes” should be rewarded with a higher multitude of passengers and the “villains” should not be granted this satisfaction.
Another internal challenge for Southwest Airlines is the conflicting management style and business operation with AirTran. On top of that, the external challenges such as the increase of competitions and gas prices are some of issues f...
Spirit Airlines has long been considered an unorthodox airline. They, of course, address all four P’s in their marketing strategy; however, they focus a large amount of their effort on price and promotion. They focus on cutting price through “unbundling”. They focus on promotion through taking advantage of social issues and breaking news. Many advertisements and deals promoted by Spirit have given the public a definite shock-factor. Spirit has made two objectives very clear: they are furious at getting the customer the lowest fare possible by any means necessary, and they will similarly use any means necessary to get those potential customers to notice those fares. Such a blatant marketing strategy works. Even going up against some big competition, Spirit finds ways to be competitive and successful in flagrant fashion.
“Our people are our single greatest strength and most enduring long-term competitive advantage,” reports CEO Gary Kelly on the Southwest Airline website (https://www.southwest.com/html/about-southwest). The company works hard to hire great individuals and then rewards and supports them to make satisfied, productive employees (Ross & Beath, 2007). In fact, Southwest Airlines has received repeated recognition as a great place to work (“Southwest Corporate Fact Sheet,” n.d.). As a result, Southwest Airlines is able to provide a low-cost, fun-cultured experience with excellent customer service (Ross & Beath, 2007). This has allowed the company to build its final strength in this evaluation: a strong brand
Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business. A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research.
Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.
Since 1987, when the Department of Transportation began tracking Customer Satisfaction statistics, Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. Many airlines have tried to copy Southwest’s business model, and the Culture of Southwest is admired and emulated by corporations and organizations in all walks of life. Always the innovator, Southwest pioneered Senior Fares, a same-day air freight delivery service, and Ticketless Travel. Southwest led the way with the first airline web page—southwest.com, DING, the first-ever direct link to Customer’s computer desktops that delivers live updates on the hottest deals, and the first airline corporate blog, Nuts About Southwest. Our Share the Spirit community programs make Southwest the hometown airline of every city we serve.
Pricing. Their pricing strategy is based off their market position as a budget airline. Positioning their company as a budget airline, Southwest can maintain and keep their lower price points compared to their competitors. For Southwest to maintain sustainability as a market leader, they must effectively utilize their resources to reduce their cost of operations. By only operating one type of aircraft, short non-stop flights, point to point routes, and flying into less crowded secondary airports, this has allowed Southwest Airlines to keep their price points down while simultaneously reducing their planes turnaround time.
Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.
There are few things that are impressive about Southwest Airlines first one is how they treat the employees. For Southwest Airlines employees are first and customers are second. If the employees are treated well that will bring in happy customers. Next is that Southwest is not only with their low prices but is able to create a competitive advantage by offering a fun and humorous experience when flying. Finally another impressive fact is when Herb Kelleher’s retire from CEO position yet remained a Southwest employee till July 2014. Even after the retirement he was still active with the Southwest Airlines that reflected his enthusiasm and dedication for the
Before to select the proper alternative, three alternatives were analysed and evaluated under four decisions criteria: customer experience, cost, growth rate / market penetration and ease to implementation (See Exhibit 2: Factor Analysis). Between all the alternatives, it was suggested that Southwest Airlines enters to New York City by bidding the slots and gates at the LGA (See Exhibit 3: Alternatives Analysis). This alternative sustains the challenge of changing the customer experience which means adding more flights from and to the East; furthermore, entering to new markets will reinforce “the power of the network” through LGA. At the same time, this decision will allow signing more code-sharing agreements with other airlines flying to international destinations and offer new products and services to LUV customers as loyalty rewards, in-flight internet, onboard duty-free purchases, etc.; as a result of this, it will increase passenger’s insights and experiences by flying with Southwest Airlines. Nevertheless, there is potential risk by selecting this alternative, in the recent years the energy prices has had a huge increase affecting costs, fares and even capacity needed, however Southwest Airlines has been able to hedge fuel for decad...
The company’s cost leadership strategy of keeping their fares low to ensure frequent and convenient travel along with its playful, fun poking advertising, exciting promotional ways, and various vibrant ways of operation enabled the company to expand exuded its effect on both customer and competitors, thus lowering the prices in the new market. This is the ‘Southwest
The mission of Southwest Airlines is a dedication to the highest quality of service delivered with warmth, friendliness, individual pride, and company spirit (Mission…, 2007). The company also provides opportunities for learning and personal growth to each employee. Creativity and innovation is very important and highly encouraged, for the purposes of improving effectiveness. Employees are to be provided the same concern, respect, and caring attitude within the organization that the employees are expected to share with the customer. Southwest Airlines was initially created to be a low-cost alternative to high price of intra-Texas air carriers (Freiberg, 1996). Southwest’s fares were originally supposed to compete with car and bus transportation. It was a little airline, and it would withstand the test of time. As a discount, no-frills airline, it would provide stiff competition for larger airlines. Their strategy was to operate at low cost, offering no food, no movies, no first class, and no reserved seats. They created their own market and provided increased turnaround times at the gate, by avoiding hub-and-spoke airports and opting for short-haul, direct flights. Through this market approach, Southwest has a majority of market share in the markets they serve.