Southwest Airlines 2010 Annual Report Download - page 11

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Enhancements to Southwest.com
In 2010, the Company completed a comprehensive rebuild of its southwest.com website for the purpose of,
among other things, providing more product options, driving better booking rates, and improving ancillary
revenues. The 2010 enhancements include improved navigation capabilities that make it easier for Customers to
locate what they need. Any part of a trip can now be planned directly from the home page, and the website can
now recognize a Customer’s home airport and provide offers relevant to the Customer. The website can also
remember a Customer’s most recent searches to make it easier for the Customer to shop for flights, cars, and
hotels, and includes a shopping cart functionality that allows a customer to purchase air, hotel, and car all at
once. Customers can now also book unaccompanied minor travel online. The website also highlights points of
differentiation between the Company and other air carriers, as well as the fact that southwest.com is the only
place where Customers can purchase Southwest fares online.
During 2010, southwest.com accounted for approximately 79 percent of all Southwest Airlines bookings. In
addition, for the year ended December 31, 2010, nearly 84 percent of the Company’s Passenger revenues came
through its website (including revenues from SWABIZ, the Company’s business travel reservation web page).
Increased Targeting of Business Travelers
The Company offers several products that have been designed to attract additional business/full fare
travelers.
Business Select. As discussed above, the Company’s “Business Select” product includes perks such as
priority boarding, bonus frequent flyer credit, priority security access in select airports, and one complimentary
adult beverage. The Company’s “Business Select” program contributed approximately $88 million in revenue
premiums during 2010, up from $72 million in revenues during 2009.
“Fly By®” Priority Lanes. The Company has introduced Fly By Priority Lane access for its Business
Select Customers and Rapid Rewards A-List Members at many of its airports. Fly By Priority lanes are
priority access lanes located at ticket counters and security checkpoints. The lanes allow Business Select
Customers and Rapid Rewards A-List Members direct access to the front of the line at the ticket counter and/
or security checkpoint.
Enhanced Rapid Rewards®Frequent Flyer Program. As discussed further below under “Rapid Rewards
Frequent Flyer Program,” the Company has announced enhancements to its frequent flyer program that will
better reward the Company’s most loyal customers.
SWABIZ®.SWABIZ is the Company’s business travel reservation web page. SWABIZ allows business
travelers to plan, book, and purchase Ticketless Travel on Southwest Airlines and to efficiently obtain their
lowest fares and maximum frequent flyer credit.
In addition, as discussed below under “Inflight Internet Connectivity,” the Company has begun installing its
fleet with equipment to provide WiFi connectivity.
Ancillary Services and Fees
During 2010, the Company experienced revenue benefits from its addition in 2009 of new service offerings
such as the Company’s EarlyBird Check-in™ and Pets Are Welcome on Southwest (PAWS) products. EarlyBird
Check-in allows Customers to obtain an early boarding position directly behind Business Select and A-List
Customers by adding an additional $10 to the price of a one-way fare (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 – see “Rapid
Rewards Frequent Flyer Program” below). The Company’s PAWS offering allows Customers to bring small cats
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