Management Essay Paper on Southwest airline

Southwest airline

Ways that airline customers might be segmented

Airline customers can be segmented into various ways, particularly when the customers have different needs as well as wants, which can be identified. The customers may be segmented into various approaches depending on; age, location, demographic characteristics, gender, buying habits, size, accessibility, and growth potential.

Southwest’s main target can be that of business as well as leisure travelers. This is because the business traveler is much price-sensitive as compared with leisure travelers. The business travelers have a shorter notice as compared to the leisure travelers. Moreover, the leisure travelers often travel around the world and exhibit reasonable prices when shopping. On the issue of segment that would not be, is long-hauls, which the company should not venture due to its high fare rates. Long hauls never offer additional amenities, including the provision of drinks or special foods.  

Pros and cons for expansion of Southwest beyond short hauls

            The advantages as well as disadvantages of Southwest expansion beyond short hauls are varied and diverse. The advantages include the elimination of nonproductive flights, installation of rapid rewards on the frequent flyer program, adoption of newer planes that are fuel efficient, and with the increasing fuel, customers need to be ferried whenever they want to go. However, the disadvantages include high costs since the purchase of newer planes can be very expensive. Small changes in the population as well as consumer tastes may tremendously affect the business encountering a lot of troubles while expanding into the newer markets, and the airline’s fares may have to increase, which can greatly affect the company’s market in terms of customers.