Rapid Rewards at Southwest Airlines

1. In my opinion, Southwest should not save low-numbered boarding cards for its most frequent fliers. First of all, that would go against the idea of having simplicity in its operations systems. If Southwest reserved their low number boarding cards for its most frequent fliers, the airline would run into complications with customer seating preferences or disagreements. This would cause the established simple system of Southwest to be ineffective if certain exceptions would be made for frequent fliers. Not only does Southwest stand for simplicity but also egalitarianism. It would be contradictory for Southwest Airlines to stand for equality while at the same time offering preferential treatment to its most frequent fliers. In order to continue to be “the best short-haul, no-nonsense, low-fills utilitarian airline” Southwest should not implement saving low-numbered boarding cards for their frequent fliers. A tradeoff for this egalitarian mentality is the loss of those frequent fliers who feel that their loyalty should be rewarded for preferential treatment. Airlines that offer first-class and business class seats have the potential to lure away customers who feel that an important requirement to them remaining loyal is to be given first priority in seats. Many customers would rather pay extra in order to get better treatment in compensation for the money they invest in flying frequently. If Southwest begins to reserve low numbers for their frequent fliers, they might end up not only experiencing a decrease in efficiency when it comes to boarding, but complaints from customers who chose Southwest strictly due to their “first come first serve policy”.

2. In my opinion, Southwest should allow frequent fliers to take the next available flight with an empty seat versus having these customers wait for the next available flight within the same fare class. My decision is based upon the fact that an empty seat is already a sunk cost, and that way frequent fliers could be

Cited: Discher, Steve. “Not All Customers Are Equal: The Case for Differentiated Service”. Customer Insight/Business Intelligence. insurancetech.com. Insurance and Technology. 22 May 2009. Web. 23 Jan 2010.