Southwest Airlines 2012 Annual Report Download - page 13

2013, Southwest intends to implement a service charge for reuse of funds associated with Wanna Get
Away tickets that are not canceled or changed prior to departure.
• “Anytime” fares are refundable and changeable, and funds may also be applied toward future travel
on Southwest.
• “Business Select” fares are refundable and changeable, and funds may be applied toward future
travel on Southwest. Business Select fares also include additional perks such as priority boarding, a
higher frequent flyer point multiplier than other Southwest fares, priority security and ticket counter
access in select airports, and one complimentary adult beverage coupon for the day of travel (for
Customers of legal drinking age).
AirTran
AirTran also offers a user-friendly fare structure that features a variety of competitive fares and products.
Unlike Southwest, AirTran currently offers a Business Class product. With the exception of Business Class fares,
all AirTran fares are nonrefundable, but can be changed prior to departure, subject to payment of a service
charge. AirTran Business Class fares are refundable and changeable and include additional perks such as priority
boarding, oversized seats with additional leg room, bonus frequent flyer credit, no first or second bag fees, and
complimentary cocktails onboard. In addition, AirTran’s Business Class product can be purchased separately or
through an upgrade of a non-Business Class fare within 24 hours of travel.
Websites
Southwest.com
The Company’s Internet website, southwest.com®, is the only avenue for Southwest Customers to purchase
and manage travel online. Any part of a Customer’s trip can be planned directly from the southwest.com home
page. Southwest.com can recognize nearby airports for a Customer and provide offers relevant to the Customer.
Southwest.com can 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 book unaccompanied minor travel online. Southwest.com highlights points of
differentiation between Southwest and other air carriers, as well as the fact that southwest.com is the only place
where Customers can purchase Southwest fares online. During 2012, the Company enhanced southwest.com and
swabiz.com (the Company’s business travel reservation web page) for its Spanish speaking Customers by
translating both websites into Spanish. This enhancement provides an easier booking tool to Customers who
prefer to transact in Spanish. During 2012, southwest.com accounted for approximately 85 percent of all
Southwest bookings. In addition, for the year ended December 31, 2012, approximately 84 percent of
Southwest’s Passenger revenues came through its website (including revenues from SWABIZ®).
AirTran.com
The Internet is also an integral part of AirTran’s distribution network. Sales booked directly on airtran.com
represent AirTran’s largest and most cost-effective form of distribution. In addition to being user-friendly and
simple, AirTran’s website is designed to sell tickets efficiently. AirTran.com allows Customers to easily book
and manage their travel, including the ability to retrieve and change future flight reservations, make seat
selections, and check in online. Sales through airtran.com produced approximately 54 percent of AirTran’s
revenues during 2012 and approximately 58 percent of AirTran’s total bookings in 2012.
Operating Strategies and Initiatives
During 2012, the Company continued to address economic uncertainty and high jet fuel prices through its
strategic initiatives. The Company focused on five major strategic initiatives: (i) integration of AirTran,
(ii) Southwest’s All-New Rapid Rewards®frequent flyer program, (iii) fleet modernization, (iv) incorporation of
the larger Boeing 737-800 aircraft into the Southwest fleet, and (v) new reservation system and international
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