Southwest Airlines 2014 Annual Report Download - page 20

within the aircraft’s existing repainting schedule, while new aircraft will be delivered in the Heart
livery. In addition, many of the future airport conversions will be integrated into existing and
upcoming airport improvement projects.
During 2014, the Company continued to benefit from, and aggressively market, Southwest’s
points of differentiation from its competitors. For example, Southwest continues to be the only major
U.S. airline that does not impose additional fees for first and second checked bags. Through both its
national and local marketing campaigns, Southwest has continued to aggressively promote this point of
differentiation from its competitors with its “Bags Fly Free®” message. The Company believes its
decision not to charge for first and second checked bags on Southwest, as reinforced by the Company’s
related marketing campaign, has driven an increase in Southwest’s market share and a resulting net
increase in revenues.
Southwest is also the only major U.S. airline that does not impose a fee on any of its fares for a
Customer change in flight reservations. The Company has continued to incorporate this key point of
differentiation in its marketing campaigns. The campaigns highlight the importance to Southwest of
Customer Service by showing that Southwest understands plans can change and therefore does not
charge a change fee. While a Customer may pay a difference in airfare, the Customer will not be
charged a change fee on top of any difference in airfare.
Also unlike most of its competitors, Southwest does not impose additional fees for items such
as seat selection, fuel surcharges, snacks, curb-side checkin, and telephone reservations. In addition,
Southwest allows each ticketed Customer to check one stroller and one car seat free of charge, in
addition to the two free checked bags.
The Company also continues to promote all of the many other reasons to fly Southwest such as
its low fares, network size, Customer Service, free live television offerings (discussed below under
“Inflight WiFi and Entertainment”), and its Rapid Rewards frequent flyer program.
Business Traveler Amenities
Southwest offers several products that have been designed to attract business/full fare
travelers.
Business Select. As discussed above, Southwest’s “Business Select” fare includes perks such
as priority boarding in the first 15 boarding positions within boarding group “A” when available, a
higher frequent flyer point multiplier than other Southwest fares (including twice as many points per
dollar spent as compared with Wanna Get Away fares), “Fly By®” 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, 2014, Fly By Priority Lane access
was available at 78 airports served by Southwest.
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.
12