r it would have to increase price of fares.Nowadays, Southwest Airlines conquered the market niche of low-fare airline industry in the United States. Moreover, this market has a potential to grow and Southwest Airlines will play the major role in its future. SUCCESS FROM A SIMPLE STRATEGYHow has Southwest achieved such phenomenal success in the face of stiff competition? Basically, Southwest offers no-frills service at low fares on relatively short flights. Additional benefits the airline provides include simple scheduling, ticketless travel, and point-to-point service.The core of Southwest's marketing strategy is the short-haul domestic route. An average trip of 394 miles that last about an hour allows airline to be at or near top in periodic measures of on-time performance. Southwest serves airports that are readily accessible, rather than large, crowded international airports.Low fare airlines compete in the segment of market that accounts for approximately 40 percent of the passenger traffic in the United States. Southwest selects new markets where there are too few flights and high fares. When it enters the market, fares drop by as much as 70 percent. This action often triggers a price war, which in turn benefits customers and increases traffic in that area.Before starting service to a new city, Southwest launches an extended public relations program that emphasizes community relations, special events, and direct marketing. The intent is to build awareness of Southwest Airlines and make it a part of community even before service starts to the city. For example, in 1993, Southwest Airlines used baseball theme to enter the Baltimore market, because the city was hosting the All-Star game that year.Although other airlines have implemented a marketing strategy emphasizing low prices and modest services, few have achieved stable success. ValuJet, Western Pacific and Kiwi Airlines have tried to copy Southwest's approach. For ex...
