The use of information technology has been developing for decades, but in recent years it has become mainstream in the airline industry for building company revenue. Southwest Airlines has been one of those airlines that have successfully use technology to improve operations and customer loyalty. Such use of data analytics technology to implement strategies that analyze what consumers prefer when boarding, in-flight and arrival has helped to improve customer satisfaction and in return has made possible for the airline to be profitable in this turbulent industry continually.
Thus, developments have revolutionized their entire system and have profound implications for strategic and tactical management, but most importantly the have dramatically changed industry structure and altered competitiveness of the airline.
Advantages of Using IT
Information Technology (IT) has become widely employed in recent years to analyze data in organizations to improve revenues and customer satisfaction to retain loyalty. One such company is Southwest Airlines where they have implemented IT to become one of the most profitable businesses in such a competitive industry.
The emergence of the Internet in the 90s and development of Intranets and Extranets forced airlines to refocus their strategy on technology innovations to enhance their competitiveness, hence created data analytics.Southwest adopted the Internet and created a website where customers could use for booking flights. They understood the implication that IT would have on the company regarding increase revenue. The understanding requirement for success is understanding and satisfying customer needs and expectations.
One area where IT has improved operations of Southwest is self-booking through the internet.Customers can book flights at their convenience and make any changes hours before departure.Another is the expedited services when checking in at the airport which is a b…