Change in Southwest Airlines Boarding Process
Southwest Airlines has an intriguing mode of boarding process. Instead of assigning specific seats to passengers, an open seat policy has been favored. An open seat policy gives the passengers the freedom to take any seat of their choice as long as the seat is available. As a mode of boarding, the open seat policy has been around for an estimated 42 years. Interestingly, while people wait for its abolishment, Southwest Airlines opted for introduction of changes in the different sectors related to this field. Many analysts have had mixed reactions on the changes introduced in the airlines during their 2007 and 2009 renovations. The introduction of early-bird check-in for example, and the use of game theory and dominant strategy to increase profits were significant changes introduced.
Several notable changes followed the 2007 renovation. Even though nothing was done to the open seat policy, more well organized and reliable procedures were formulated. One of the outstanding procedures formulated, for instance, led to the doing away with the ‘cattle call’. Cattle call was an unpleasant scenario that arose as a result of the use of first come- first served basis. The airline had created a platform on which those who arrived first got the chance to book the best seats. As a result, many people showed up too early, resulting in overcrowding at the station. The consequences of this overcrowding were unbearable, including the sprouting of unnecessary argument between boarders who were trying to grab seats. Minor fights would also emerge as others tried to cut in line.
Delegate your assignment to our experts and they will do the rest.
Introduction of boarding groups and boarding numbers helped establish order and a sense of direction to passengers. The system works by dividing travelers into groups A, B, and C. A passenger with a lower body number in any group was the first to get on the airplane. However, each passenger is free to pick any seat of their choice once in the plane. The number assigned to a passenger on boarding was based on the time the passenger checked in for the flight. To secure a satisfactory boarding number, a passenger is required to make an early check within at least 24 hours before the flight. For a traveler who failed to book online, in this case, the need to wait until the end of the line is key to boarding the flight.
After the above, advanced changes have been realized in the airline focusing on giving travelers’ best experiences. For example, the Southwest Rapid Reward Priority Card rewards customers with four priority boardings during their anniversary every year. Another option is the BusinessSelect Fare that guarantees one a seat between A1- A15. In addition, as an A- List member, there is an automatic position behind the BusinessSelect clienteles. Finally, families get the advantage of boarding between group A and B. In precision, they board after A group but before the B group. The favorable part about this policy is that it is not a paid option.
Southwest’s Main Goal in Introducing the Early-Bird Check-In
The early bird check in came as a result of the sprouting of secondary markets that were focused on helping travelers book flights. According to Southwest, it was meant to improve efficiency, effectiveness, and customer satisfaction by granting customers the freedom to choose their own seats as well as save time and energy by avoiding queuing. As a win- win situation, this boarding technique allows customers to select a seat of their liking and an early available directly above bin space as a way of improving their travel experience as well as generate revenue for the airline.
Outcome of the Game Involving Early-Bird Check-In
Early bird check in has helped in the ticket booking as passengers can now get a boarding ticket 12 hours earlier (than other passengers who get to book a ticket) with the opening of the website. Despite that, it has created a lot of confusion to many travelers especially those who are unfamiliar with the policy of open seating. In addition, many travelers assume that they will be awarded an A group boarding after checking in early, accompanied by a quick pass through the passengers line and the picking of prime seats. However, early bird check in does not guarantee all that. In fact, this policy is to ensure that a passenger is booked for the flight and there has not been any added advantage despite rise in booking fee.
Passengers’ Dominant Strategy
A dominant strategy is described by Kevin and Yoav (2008) as rational set of steps that would generate complete best results despite the competitors’ position in the market. The Southwest Airlines introduction of the early bird check in comes as a dominant strategy despite its controversial open seating policy. A Nash equilibrium graph can be used to explain the profitable results achieved by the Southwest airlines whether travelers decide to pay the ten dollars fee for the early bird check in or not. For example in a scenario with passenger X and Y, if passenger X decides to book the early bird check in, he is guaranteed a seat of his choice and vice versa. If both decide not to pay, they get seats with average conditions but save their money. However, it would be more advantageous for both to pay the fee so they can stand chances of having better seats since they are competing with other possible passengers of the flight. Not paying the fee results to unsatisfactory traveling due to poor seating positions, automatically creating an urge in every traveler to pay the fee. The elimination of assigned seats, therefore, makes the early bird check in a dominant strategy.
Why Travelers Face the Prisoner’s Dilemma with the Early-Bird Check-In Process
Travelers of the Southwest airline face prisoner’s dilemma through the discussion of whether or not to pay the ten dollars for the early bird check in. If one does not pay the fee, then another passenger who is cautious about traveling in a good seat will. Therefore, this makes the decision of whether or not to pay for the fee harder to make. Despite the travelers paying for the seat, it is not a guarantee that they will all be privileged to travel in a good seat. The travelers who are willing to pay to access these privileges are the ones faced with this prisoner’s dilemma.
Advantages and Disadvantages of the Early-Bird Check-In Process for Southwest Airlines
One of the biggest advantages of boarding the Southwest Airline is the ability to cancel the flight without a fee being charged. The early bird check in, notably, allows a traveler to add it to an already scheduled flight within a range of 36 hours before the flight’s local leaving time. In addition, it creates a convenient platform especially for those who might not be able to check in within 24 hours. Moreover, it allows one to book a better boarding position especially with flights whose most of it passengers are from another city. When booking a direct flight, early bird check in is advantageous due to the fact that booking starts 24 hours before flight, creating the possibility of a fill.
One of the main disadvantage of this method is the fact that the fee is too high, yet a passenger is not exactly guaranteed a better seat. Most of the check-ins are guaranteed a position in the flight despite the 15 dollars charge-The flight does not have a limit number that would prevent excess number of passengers from booking the flight. In addition, these tickets are not refundable. Unfortunately, this comes as a disadvantage especially in instances where one needs to cancel flights or has been late for a flight. Moreover, trading seats is discouraged, but one is rarely scolded.
Ways in Which Other Companies can Utilize Similar Game Approaches to Maximize Profits
Owen (1995) describes the game as an all-encompassing business discipline. As he illustrates, therefore, an example of such an approach in a company is the reduction of prices from already set market prices and introducing a lower price but still maintaining the company’s profit, maybe with a slightly reduced profit percentage. This approach, therefore, will force competition to either reduce their prices or have customer diverting. Unfortunately, this ground for cooperation might lead to other firms defaulting, making it worse for the market.
Another example would be the delaying of a product release as a way of increasing the competitive edges. The delay is as a result of prolonging the testing period instead of releasing the product immediately. Marketing the product immediately creates an advantage over other rivaling firms. For instance, in a pharmaceutical company, a product can be marketed immediately after release so as to gain an added advantage over the competitors. In addition, the release date can be delayed, ensuring that the product released is better and costs less in terms of value.
References
Presh, Talwalkar. (2013). Southwest Airlines boarding and game theory, retrieved from https://mindyourdecisions.com/blog/2013/03/05/southwest-airlines-boarding-and-game-theory/
“ Southwest provides amenities that make your travel extraordinary.” Southwest products, retrieved from https://www.southwest.com/html/customer-service/faqs.html?topic=earlybird_checkin
Prisoner's Dilemma . Plato.stanford.edu (4 September 1997). Retrieved on 3 January 2013.
Owen, Guillermo (1995). Game Theory : Third Edition. Bingley: Emerald Group Publishing. p. 11.
Leyton-Brown, Kevin and Shoham, Yoav. (2008). Essentials of Game Theory: A Concise, Multidisciplinary Introduction . San Rafael, CA: Morgan & Claypool Publishers.
