Southwest Airlines has been making significant strides in the corporate market, gaining thousands of new accounts each year and shifting industry share. According to Dave Harvey, the Chief Sales Officer of Southwest, the carrier’s revenue has seen substantial growth, providing a tailwind for the company. The success in the corporate market is attributed to the airline being easier to work with, offering industry-standard solutions, and having a robust point-to-point network. Southwest’s focus on flexibility has also been a key factor in capturing market share, with about three points of industry share being shifted last year.
NDC and Technical Capabilities
When asked about Southwest’s consideration of New Distribution Capability (NDC), Harvey mentioned that the airline is monitoring the situation. He emphasized that Southwest’s product is all about value, even the lowest fare product, Wanna Get Away, offers flexibility. While other players in the industry are investing in the next level of retailing and personalization through NDC, Southwest’s current product offerings do not require such enhancements. However, Southwest acknowledges the need to adopt NDC for technical capabilities, as more partners are looking to direct connect with the airline. This move towards NDC is essential to accommodate new booking tools and agencies that prefer a direct connection.
Southwest Airlines is leveraging Artificial Intelligence (AI) primarily as an enabler for enhancing customer service. The use of AI has not only improved service quality but also increased productivity and efficiency within the organization. Recently, the airline launched its customer assist feature, which utilizes AI to handle servicing requests that would traditionally require human intervention at the contact center. The implementation of AI has resulted in higher customer satisfaction levels while freeing up employees to focus on delivering authentic hospitality. In addition to customer service, AI is also being applied in technical operations to streamline processes and increase productivity. By using AI as an assistant to provide valuable insights and guidance, highly skilled workers can focus on higher-value tasks, leading to overall productivity gains and cost savings.
Southwest Business is set to launch a new solution called Travel Track, aimed at addressing the need for real-time data visibility for travel managers and Travel Management Companies (TMCs). The current lack of a comprehensive data solution hinders the ability of TMCs and travel managers to track the whereabouts of travelers in real time, especially when changes are made to travel itineraries. Travel Track is designed to provide event-based updates, such as traveler check-in times and boarding information, ensuring that TMCs and travel managers have up-to-date information on their travelers’ movements. This level of data transparency is crucial for duty of care purposes and enhances the overall travel experience for corporate clients.
Southwest Airlines continues to make strides in the corporate market through its focus on customer service, flexibility, and technological innovations. By staying attuned to market trends and leveraging AI and NDC capabilities, Southwest is poised to further enhance its competitive edge in the industry. The introduction of the Travel Track solution further solidifies the airline’s commitment to providing reliable and transparent travel solutions for corporate clients. Southwest’s strategic approach to innovation and customer-centric services positions the airline as a key player in the corporate travel sector.
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