Southwest Airlines 2013 Annual Report Download - page 20

Business Select. As discussed above, Southwest’s “Business Select” product includes perks such as priority
boarding, a higher frequent flyer point multiplier than other Southwest fares (including twice as many points per
dollar spent as compared to Wanna Get Away fares), priority ticket counter and security checkpoint access in
select airports, and one complimentary adult beverage coupon for the day of travel (for Customers of legal
drinking age).
Fly By®Priority Lanes. Southwest provides 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 select 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. As
of December 31, 2013, Fly By Priority Lane access was available at 68 airports.
SWABIZ. SWABIZ is Southwest’s business travel reservation web page. SWABIZ allows business
travelers to plan, book, and purchase Ticketless Travel on Southwest and to efficiently obtain their lowest fares
and maximum frequent flyer credit.
In addition, as discussed below under “Inflight WiFi and Entertainment,” Southwest has continued to
install equipment on its fleet to provide access to WiFi connectivity and live television utilizing the Customer’s
mobile device.
AirTran currently offers Business Class on every flight; however the Company has stated it intends, upon
full integration of AirTran, to have a consistent all-coach product offering.
Ancillary Services and Fees
During 2013, the Company continued to experience revenue benefits from service offerings such as
Southwest’s EarlyBird Check-in®and Pets Are Welcome on Southwest (P.A.W.S.) products. EarlyBird Check-in
provides Customers with automatic checkin so Customers are checked in 12 hours before general boarding
positions become available, improving Customers’ seat selection options. Customers can purchase EarlyBird
Check-in for an additional $12.50 each way (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 “Southwest’s Rapid Rewards
Frequent Flyer Program” above). Southwest’s P.A.W.S. offering allows Customers to bring a small cat or dog
into the aircraft cabin for a $95 one-way fare. In 2013, as part of the Company’s network connectivity efforts, it
began enabling Customers to book a small cat or dog into the aircraft cabin on domestic shared itineraries with
AirTran. Southwest also charges an additional $50 per one-way trip for unaccompanied minor travel to address
the administrative costs and the extra care necessary to safely transport these Customers. The Company also
expects to continue to benefit from ancillary revenue opportunities created by Southwest’s Rapid Rewards
frequent flyer program.
During January 2013, Southwest began selling open premium boarding positions systemwide at the gate
for a $40 charge per flight. Southwest’s sale of open premium boarding positions at the gate provides another
early boarding choice for its Customers in addition to Southwest’s “Business Select” product and EarlyBird
Check-in. Also in 2013, as part of the Company’s network connectivity efforts, it began enabling Customers
booking shared itineraries through AirTran channels to purchase these open premium boarding positions at the
gate on Southwest-operated flights.
During second quarter 2013, Southwest announced its implementation of a No Show policy that applies to
nonrefundable fares that are not canceled or changed by a Customer at least ten minutes prior to a flight’s
scheduled departure. If a Customer has booked a nonrefundable fare anywhere in his/her itinerary and that
portion of the flight is not used and not canceled or changed by the Customer at least ten minutes prior to
scheduled departure, all unused funds on the full itinerary will be forfeited, and the remaining reservation will be
canceled. This policy does not apply to military fares, senior fares, or travel during certain irregular operations,
including severe weather conditions. The No Show policy will not impact Customers who simply cancel a
Wanna Get Away or DING! ®fare at least ten minutes prior to scheduled departure; in this case, Customers may
reuse their funds toward future travel on Southwest, without a change fee, as they have always done. Customers
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