Southwest Business Takes Off And Takes Business Travel To New Heights
Southwest Airlines Co. (NYSE: LUV) (the "Company") today celebrates the evolution of its dedicated business travel Team with a new suite of services and a new name, Southwest Business. Southwest Business brings travel managers and travel management companies new capabilities within Travelport's global distribution systems (GDS) and the Amadeus Travel Platform, the expanded reporting and settlement capabilities with the Airlines Reporting Corporation (ARC); and a larger Team to reach more People than ever before—all in an effort to showcase the carrier's business-friendly policies including no change fees (a fare difference might apply) and bags fly free (first and second checked luggage, size and weight limits apply).
"For nearly 50 years, we've been a business traveler's airline with high-frequency travel options and low fares. Today's announcement evolves that philosophy even further by offering travel managers and business travelers new capabilities when booking Southwest travel in the channel of their choice. We're also making it easy and smooth for travel management companies to do business with Southwest Business through expanded partnerships, the addition of more content within GDS channels, a refreshed SWABIZ® booking tool, and more Team Members focused on highlighting Southwest's business-friendly policies," said Tom Nealon, President of Southwest Airlines. "Behind this galvanized effort, more than 59,000 Southwest Employees are all focused on bringing more Heart and Hospitality to thousands of businesses that put their trust in Southwest to connect their people to the places important to them."
Booking Channels of Choice
As Southwest Business evolves, the Company announced today a new agreement to bring industry-standard processes to the Travelport and Amadeus GDS channels including allowing travel managers the ability to book, change, cancel, and modify reservations. The Company anticipates the new capabilities to be ready for bookings by mid-2020, and estimates this new revenue initiative to provide incremental improvements in pre-tax results in the range of $10 million to $20 million in the second half of 2020, with significant improvements expected in 2021 and beyond. By increasing the Company's participation within these channels to the highest level, travel managers and travel management companies will have access to more of the airlines' fares and flight schedules. Southwest is also partnering with ARC to implement industry-standard processes to handle the reporting and settlement of tickets booked through Travelport and Amadeus channels.
"We are delighted to extend our partnership to now support Southwest Business. Whether through traditional channels or with new standards, we continue to deliver airlines' content just as they want it, and provide agencies with the technology and content to satisfy travelers," said Greg Webb, Travelport's Chief Executive Officer. "Our new Southwest Business partnership is a great example of our customer-centric approach."
"Over the past five years, Amadeus and Southwest together have implemented a technology system designed to provide not only stellar customer service, but also a long runway for Southwest to grow," said Julia Sattel, President, Airlines, Amadeus. "Today's addition of distribution content to our technology partnership is a significant milestone. It deepens our companies' relationship to now include Southwest Business, and strengthens our ability to benefit travel sellers who rely on us to provide tools and world-leading content to help them provide superior service to their customers."
"We're excited that Southwest has chosen to leverage ARC's network of accredited travel agencies to increase their product availability to the corporate traveler," said ARC Executive Vice President and COO, Lauri Reishus. "We look forward to working closely with Southwest to successfully implement their distribution strategy."
To complement these additions to its travel solutions portfolio, Southwest recently added a partnership with ATPCO/SITA to refresh product connections via a dedicated, direct-connect channel, and offer its award-winning Hospitality to more corporate travelers.
Southwest Business also continues investing and enhancing its online booking tool, SWABIZ®. With recent upgrades, the site has become a one-stop shopping experience with air, car, and hotel booking functions. SWABIZ recently introduced more robust reporting tools aimed at putting corporate travel managers in control of their organization's travel programs.
Southwest Business: New Name, Same Heart
Southwest Business is designed around taking the work out of work travel by making it easier to do business with Southwest Airlines. Throughout the past two years, Southwest has been laying a foundation for this announcement with continual growth within the organization. Southwest Business has added more Account Managers across the United States, a new Business-to-Business Partner Desk (available to qualified accounts), and a new look-and-feel to its SWABIZ® booking tool to highlight the carrier's emphasis on encouraging corporations to put their trust in business travel solutions offered by Southwest Business.
To learn more about Southwest Business, visit SWABIZ.
*Participation means capabilities available to business travel agencies.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company's plans and expectations with respect to Southwest Business, global distribution systems, and related alliances and capabilities; and (ii) the Company's financial expectations and projected results of operations. Forward-looking statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the Company's dependence on third parties, in particular with respect to global distribution systems, related alliances and capabilities, and the Company's technology plans and initiatives, as well as the impact on the Company's operations and results of operations of any related third party delays or non-performance; (ii) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (iii) the Company's ability to timely and effectively prioritize its initiatives and related expenditures; (iv) the Company's dependence on Boeing and the Federal Aviation Administration with respect to the timing of the return of the 737 MAX aircraft to service and any related changes to the Company's operational and financial assumptions and decisions; (v) impact of governmental regulations and other actions, as well as consumer perception, on consumer behavior; (vi) the impact of economic conditions, actions of competitors (including without limitation pricing, scheduling, capacity, and network decisions, and consolidation and alliance activities), extreme or severe weather and natural disasters, fears of terrorism or war, and other factors beyond the Company's control, on consumer behavior and the Company's business decisions, plans, strategies, and results; and (vii) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and in the Company's Form 10-Q for the fiscal quarter ended June 30, 2019. Caution should be taken not to place undue reliance on the Company's forward-looking statements, which represent the Company's views only as of the date this report is filed. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
ABOUT SOUTHWEST AIRLINES CO.
In its 49th year of service, Dallas-based Southwest Airlines Co. (NYSE: LUV) continues to differentiate itself from other air carriers with exemplary Customer Service delivered by more than 59,000 Employees to a Customer base topping 130 million passengers annually. Southwest became the nation's largest domestic air carrier in 2003 and maintains that ranking based on the U.S. Department of Transportation's most recent reporting of domestic originating passengers boarded. In peak travel seasons, Southwest operates more than 4,000 weekday departures among a network of 101 destinations in the United States and 10 additional countries.
Southwest coined Transfarency® to describe its purposed philosophy of treating Customers honestly and fairly, and low fares actually staying low. Southwest is the only major U.S. airline to offer bags fly free® to everyone (first and second checked pieces of luggage, size and weight limits apply, some carriers offer free checked bags on select routes or in qualified circumstances), and there are no change fees, though fare differences might apply.
Southwest is one of the most honored airlines in the world, known for a triple bottom line approach that contributes to the carrier's performance and productivity, the importance of its People and the communities they serve, and an overall commitment to efficiency and the planet. Learn more about how the carrier gives back to communities across the world by visiting Southwest.com/citizenship.
Book Southwest Airlines' low fares online at Southwest Airlines or by phone at 800-I-FLY-SWA.
SOURCE Southwest Airlines Co.