Southwest Airlines has been making significant strides in the corporate market, with thousands of new accounts being added each year. This growth has not only expanded the carrier’s customer base but has also led to a shift in industry share. Southwest’s revenue has also seen a notable increase, paving the way for further success in the market. The company’s emphasis on being easy to work with, providing industry-standard solutions, and offering a point-to-point network has been key to its success. Winning on flexibility has been a major driving force behind Southwest’s ability to capture market share, with the airline managing to shift about three points of industry share in the past year.
While Southwest Airlines is currently monitoring the development of New Distribution Capability (NDC), the carrier is not rushing to adopt it. Southwest’s all-in value approach, even for its lowest fare product Wanna Get Away, emphasizes flexibility and value beyond what is typically offered in basic economy products. The airline believes that its current product offerings do not necessitate a shift to NDC from a product standpoint. However, Southwest recognizes the importance of NDC from a technical perspective, especially as more partners express an interest in direct connections. By aligning with the NDC spec, Southwest aims to cater to new booking tools and agencies looking to connect directly, thereby streamlining the booking process and enhancing customer experience.
Unlocking the Potential of AI
Southwest Airlines is harnessing the power of Artificial Intelligence (AI) to enhance its services and drive efficiency. AI serves as an enabler for improved customer service, allowing for quicker resolution of servicing requests and increasing customer satisfaction. Moreover, AI can boost productivity by supporting tasks such as providing real-time information to mechanics in the tech ops department, thereby optimizing workflow and freeing up skilled workers to focus on higher-value tasks. On the commercial side, AI can play a vital role in inspiring customers and driving sales by offering personalized recommendations and enhancing the overall travel experience.
Southwest Business is set to launch a new data solution called Travel Track, aimed at providing real-time visibility of travelers to Travel Management Companies (TMCs) and travel managers. Traditional data solutions often fall short in tracking changes to travel itineraries, resulting in a lack of real-time visibility for TMCs and travel managers. Travel Track addresses this gap by offering event-based updates on traveler activities, such as check-ins and boarding. By providing up-to-date information on the whereabouts of travelers, Travel Track enhances duty of care standards and ensures that TMCs and travel managers have the necessary information to respond promptly to any travel-related incidents.