02-10-2010
06:00 PM
4 Loves
Onboard Wi-Fi now presents another revenue stream for the airline industry. From my standpoint as an A-List member and frequent flyer, Southwest should consider:
a. If a fee is necessary, charging a low one-time fee or annual fee for less frequent flyers.
b. Promoting free wi-fi for A-List members (an effective marketing tool to cultivate loyalty).
c. Using Rapid Rewards drink coupons for the service if a charge is deemed necessary.
It appears that Southwest's "No Baggage Fee" marketing effort has produced the desired results. Promoting Wi-Fi in the same manner would likely generate a similarly positive response. Although Southwest has lagged behind other carriers in providing Wi-Fi, an examination of the competitors pricing strategies and the resulting feedback can be utilized effectively in formulating Southwest's decision. Southwest should continue their policy of distancing themselves from their competitors. Taking a different approach to the add-on pricing culture embraced by other carriers has been a proven winner for Southwest. The pricing approach toward embracing and promoting onboard Wi-Fi should be no different.
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