Southwest Airlines has been encouraged by their successful sales strategy which they launched in July and has adopted the same price-cut in fare as low as $ 25. It was thirteen year ago when the airline offered such a low price on 25th anniversary sale. The July sale has provided the company with data to repeat the strategy even in those months when there is less rush of passengers e.g. the month of October is regarded by the Airline industry as of lesser number of air passengers but the “per seat mile” values during peak months helped the airline to reckon the expected returns in a low-key month.
This led to take the bold step of adopting low-price sale during the month of September and it really worked for Southwest Airline but not for others to much extent. Southwest has earned 3% increase in the revenue during September. The greater revenue was due to healthy response of customers due to low price. Extra sales helped earn more revenue in the month of July which further strengthened the will of the company to adopt the same sale plan in the future.
The success of the strategy was so huge that the customers expressed their desperation on the company’s Website and protested that they could not have contact with airline reservation office. It was due to large number of customers who had engaged the phone lines of the office. Anyway, the low-price plan has worked for the Southwest Airlines and they have intention to continue with it to earn more and more revenue.
Southwest Airlines
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