Southwest Airlines 2009 Annual Report Download - page 12

flights, check flight status, view flight schedules, and login to their frequent flyer account from their mobile
devices. 77 percent of the Company’s Customers already book directly online, and, for the year ended
December 31, 2009, nearly 77 percent of the Company’s Passenger revenues came through its website
(including SWABiz revenues), which has become a vital part of the Company’ distribution strategy. In
addition, for the year ended December 31, 2009, more than 94 percent of the Company’s Customers chose
the Company’s E-ticket travel option, which eliminates the need to print and process a paper ticket.
In March, the Company launched a new Travel Guide on southwest.com, which provides a variety of
benefits to assist Customers in making travel plans. Travel Guide users can share their own travel
experiences and view ratings, reviews, photos, and videos posted by fellow travelers of destinations, hotels,
restaurants, and activities they recommend. Customers can create their own Travel Guide profile and search
for information on their favorite vacation spots by desired destination, activity, or theme. Each destination
page features a city bio, a seven-day weather forecast, information on local hotels, shopping, nightlife and
restaurants, airport information, and driving directions to local attractions. According to independent
sources, southwest.com is already one of the most visited travel websites in the world.
Ancillary Services and Fees. In June, the Company introduced charges for non-routine ancillary
activities. The Company began allowing Customers to bring small cats and dogs into the aircraft cabin for a
$75 one-way fare. The Company also implemented a $25 each way service charge for Customers who travel
as an unaccompanied minor to address the costs to the Company related to the administrative work and extra
care necessary to safely transport these Customers. The Company also increased its already existing service
charge to check a third or overweight bag by $25.
EarlyBird Check-in™.In September, the Company introduced “EarlyBird Check-in,” which allows
Customers to receive an automatically assigned boarding position before general check-in begins by adding
$10 to the price of a one-way fare. Customers who purchase EarlyBird Check-in are able to board ahead of
all passengers except “Business Select” and “A-List™” frequent fliers. Priority boarding privileges are
already included in the purchase of a Business Select fare and are a benefit of being an A-List frequent flyer.
Other Initiatives. During 2009, the Company also continued to work on other initiatives designed to
pave the way for additional revenue opportunities, such as an enhanced Rapid Rewards®frequent flyer
program, inflight Internet connectivity, increased sales distribution channels, and Business Select product
enhancements. In addition, during 2009, in connection with the Company’s previously announced plans to
implement a codeshare relationship with Mexican carrier Volaris, the Company began offering Customers
the ability to book flights to Mexico on Volaris via an online link to Volaris’ booking portal on
www.southwest.com. The Company has delayed implementation of its codeshare arrangements with
Volaris, as well as with Canadian carrier WestJet, in order to reallocate staffing and technology resources to
support nearer term revenue opportunities.
Customer Service Enhancements
During 2009, the Company continued to focus on improving the Customer Experience through initiatives
such as “Fly By™” security lanes, improved baggage tracking, “virtual hold” Customer Service call-backs, and
proactive Customer communications through automated outbound messaging.
“Fly By” Security Lanes. The Company has introduced “Fly By” security lanes at 44 of its airports
and intends to expand the program to additional airports as needed. A “Fly By” lane is a priority access lane
located at the security checkpoint and the ticket counter reserved for the Company’s Business Select
Customers and Rapid Rewards A-List Members. The lane allows these Customers direct access to the front
of the line at the ticket counter and/or security checkpoint.
Improved Baggage Tracking.The Company also introduced on-hand baggage scanners, which provide
Customer Service agents (i) visibility to bags in the Company’s possession across the system, (ii) increased
efficiency and organization with the automation provided by the scanning equipment, and (iii) the ability to
recover misplaced bags more quickly for Customers and provide information as to the timing of bag returns.
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