This document is a group report on Ryanair that includes an overview of the company, its vision, mission, long-term strategy, and operating activities. The key points are:
- Ryanair is the largest European low-cost carrier, operating over 1,600 daily flights between 186 destinations across 30 countries.
- Its vision is to be Europe's largest airline in the next six years. Its mission is to provide the lowest fares and friendly, efficient service that satisfies customers.
- Ryanair's long-term strategy focuses on maintaining low fares, improving customer service, frequent point-to-point flights on short routes, and having the lowest operating costs through strategies like purchasing used aircraft and negotiating
Today, most of the organizations quite advanced in involving multiple applications of strategic management.
In this paper I have tried to describe an effective and working Ryanair’s competitive strategy, approach and factors have accounted for Ryanair’s success. I also analyzed what are Ryanair’s distinctive capabilities and how they are implementing various strategies to attract and retain customers.
Today, most of the organizations quite advanced in involving multiple applications of strategic management.
In this paper I have tried to describe an effective and working Ryanair’s competitive strategy, approach and factors have accounted for Ryanair’s success. I also analyzed what are Ryanair’s distinctive capabilities and how they are implementing various strategies to attract and retain customers.
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Description of the strategy (business model) of Low Cost Carrier Ryanair. Focussing on the value proposition, value architecture, revenue model and corporate culture and values.
Ryanair Airline Case study
Europe's cheapest airline, best services at the lowest rates
Customer Strategic MAnagement, SWAT Analysis, TAWS analysis, PESTEL Analysis, porters 5 force analysis, Value Chain, BCG Matrix,
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Description of the strategy (business model) of Low Cost Carrier Ryanair. Focussing on the value proposition, value architecture, revenue model and corporate culture and values.
Ryanair Airline Case study
Europe's cheapest airline, best services at the lowest rates
Customer Strategic MAnagement, SWAT Analysis, TAWS analysis, PESTEL Analysis, porters 5 force analysis, Value Chain, BCG Matrix,
5. Methods of Payment in International Trade/Export and Import FinanceCharu Rastogi
This presentation discusses methods of obtaining export and import finance such as Accounts Receivable Financing, Factoring (Cross-Border Factoring), Letters of Credit (L/C) Banker’s Acceptance (BA), Working Capital Financing, Medium-Term Capital Goods, Financing (Forfaiting) and Countertrade. It also discusses methods of payment of international trade; Cash in Advance, Letters of Credit, Documentary Collections and Open Account followed by a comparative study of different methods. Furthermore, types of letter of credit and procedure of working of a letter of credit are also discussed.
Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service.
Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.
Case Study Ryanair Business Strategy Analysis Ryanair is .docxbartholomeocoombs
Case Study: Ryanair Business Strategy Analysis
Ryanair is an Irish low-cost airline headquartered in Dublin, founded in 1985. It
operates 181 aircraft over 729 routes across Europe and North Africa from 31 bases.
Ryanair has seen large success over recent years due to its low-cost business
model and has become the world’s largest airline in terms of international passenger
numbers. Taking Porter’s generic business strategies into consideration, Ryanair
operates a cost-leadership strategy to drive itself into achieving its mission of being
the leading European low-cost carrier (LCC). Throughout this essay the business
strategy of Ryanair will be analysed and the sustainability of their model evaluated.
Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled
passenger airline through continued improvements and expanded offerings of its low-
fares service. Considering their objectives and mission, Ryanair’s decision on their cost-
leadership strategy was based on a few main factors discussed below.
A major influence was the deregulation of the airline industry in 1978, which removed
government intervention within the European continent. Under the new rules, routes
and fare decisions were made by individual airlines which meant that they could
compete on other factors besides food, cabin crew and frequency. As a result of
deregulation, a large number of new airline start-ups emerged within the EU and
competition among airlines increased dramatically resulting in downward price
pressures. Ryanair was established to take full advantage of these market conditions.
By offering low prices, Ryanair entered a huge and virtually unlimited market.
Having seen the major success of the low-cost carrier Southwest in the United States,
Ryanair decided to follow in their footsteps by establishing an LCC for the European
continent that targeted fare-conscious leisure travellers and regular low cost business
travelers. By doing this Ryanair became the first low-fare airline in Europe. However,
they took the Southwest model further by offering no drinks and snacks at all and
abolishing the frequent flyer program that Southwest now offers its customers.
The evaluation of Porters five forces influenced Ryanair’s choice of a cost-leadership
strategy, as the threat presented by new entrants and the threat of substitutes could
hinder their success. The threat of new entrants is high within the aviation industry
which meant that low fares would help drive away any further competition. The threat
of substitutes to Ryanair had to also be carefully examined. Their primary market,
Europe, had the availability of high speed trains and car holidays. For Ryanair to be
successful, prices had to be low to attract the public, and resist strong
competition from substitutes like Eurostar.
As Europe’s largest low fare airline, Ryanair’s competitive advantage remains in their
abil.
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2. Elemental Economics - Mineral demand.pdfNeal Brewster
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Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
How Does CRISIL Evaluate Lenders in India for Credit Ratings
Ryan air report
1. FOREIGN TRADE UNIVERSITY
FACULTY OF ECONOMICS AND INTERNATIONAL BUSINESS
LOGISTICS & INTERNATIONAL FREIGHT FORWARD
GROUPWORK REPORT
RYAN AIR
By Group 3
Ha Noi, Sept 2014
2. CONTENT
CONTENT ................................................................................................................................1
GROUP MEMBERS ...............................................................................................................2
PART 1: OVERVIEW OF RYAN AIR & ITS TERRITORY...........................................3
I. INTRODUCTION.........................................................................................................3
II. TERRITORY .............................................................................................................4
PART 2: RYAN AIR ‘S VISSION, MISSION & LONG-TERM STRATEGY .............5
I. VISION...........................................................................................................................5
II. MISSION ....................................................................................................................5
III. LONG-TERM STRATEGY ....................................................................................6
PART 3: RYAN AIR ‘S OPPERATING ACTIVI TIES .....................................................9
I. COST LEADERSHIP STRATEGY ...........................................................................9
II. HUMAN RESOURCE STRATEGY ................................................................... 11
III. MARKETING STRATEGY ................................................................................. 13
PART 4: RYAN AIR ‘S TATIC-LEVEL ACTIVITIES ................................................. 16
I. RYANAIR’S PROMOTION CAMPAIGNS ......................................................... 16
II. SOME FACTS AND FIGURES .......................................................................... 20
REFERENCE......................................................................................................................... 21
1
3. GROUP MEMBERS
STT NAME STUDENT NUMBER
1. Trương Thúy Hoa 46
2. Bùi Lan Phương 92
3. Đinh Thị Bích Hằng 38
4. Vũ Ngọc Linh 63
5. Nguyễn Thị Hòa
6. Vũ Thị Thu Thủy 108
7. Nguyễn Hoàng Sơn 98
8. Phạm Khánh Linh 64
9. Trần Thị Thu Hoài 49
10. Chu Quý Sơn 97
11. Nguyễn Thành Đạt 17
12. Trần Quang Huy 55
13. Hà Tiến Đạt 18
14. Đỗ Thành Tú 193
15. Phùng Bá Ngọc 81
16. Lê Tuấn Hiệp 43
17. Nguyễn Thảo Trang 111
2
4. PART 1: OVERVIEW OF RYAN AIR & ITS TERRITORY
3
I. INTRODUCTION
Establishment: in 1985 by Christopher Ryan, Liam Lonergan and Tony Ryan
as a single-aircraft family operation.
Head office: Dublin Airport, Ireland
Airline designators: FR (by IATA), RYR (by ICAO)
Current CEO: Michael O'Leary
Current fleet: 300 new Boeing 737-800 aircrafts
Level of operation: more than 1,600 daily flights (over 500,000 per year)
Revenue (for the year ended March-2013): EUR 4,884 million
Net profit: EUR 569 million
Services other than flights: Car hire, hotels, transfer & parking, etc.
Market share:
In short, Ryanair is currently the largest European low-fare airline or, as they like to
call themselves, “Europe’s only ultra low-cost carrier”.
5. 4
II. TERRITORY
Ryanair has 69 bases, across 1,600 low-fare routes, connecting 186 destinations
in 30 countries:
Africa: Morocco
Europe:
1.Belgium
2.Bulgaria
3.Croatia
4.Cyprus
5.Czech Republic
6.Denmark
7.Estonia
8.Finland
9.France
10.Germany
11.Greece
12.Hungary
13.Ireland
14.Italy
15.Latvia
16.Lithuania
17.Malta
18.Motenegro
19.Netherlands
20.Norway
21.Portugal
22.Poland
23.Romania
24.Slovakia
25.Spain
26.Sweden
27.Switzerland
28.United Kingdom
29.Austria
Ryanair’s coverage:
Note: red text indicates Ryanair base
6. PART 2: RYAN AIR ‘S VISSION, MISSION & LONG-TERM STRATEGY
5
I. VISION
Vision defines the optimal desired future state – the mental picture, of what an
organization want to achieve overtime. Vision functions as a “North St ar”, it is what
all employees understand their work every day ultimately contributes toward
accomplish over the long term. Leaders may change, but a clearly established vision
encourages people to focus on what’s important and better understand organization-wide
change and alignment of resources.
The vision of Ryanair is to keep going up and be Europe’s largest airlines in
the next six years.
II. MISSION
A mission defines the present state or purpose of an organization. It answers
three questions about why an organization exist:
WHAT it does?
WHO it does for?
HOW it does what it does?
Mission is something that all employees should be able to articulate upon request.
The mission statement of Ryanair: “With new technological planes of Ryanair we
hope to please all of our European customers on their travel. We hope to serve people
of all ages while providing the best service money can buy. We will bring our low
price travel, with our dedication to helping our community and with our marketing
plan we hope to grow, while providing the best work experience for our employees.
We will treat everyone equally and with the upmost respect.”
Shortly, the mission of Ryanair is to keep the lowest fares among all the other
European airlines and to have a friendly and efficient services that satisfies
customer’s need.
7. 6
III. LONG-TERM STRATEGY
Objective: Firmly establish itself as Europe’s leading low-fares
scheduled passenger airline through continued improvements and expanded
offerings of its low-fares service.
Key elements:
1. Low fares
Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious
leisure and business travelers who might otherwise have used alternative
forms of transportation or would not have traveled at all.
Selling seats on a one-way basis => eliminating minimum stay requirements
from all travel on Ryanair scheduled services, regardless of fare.
Setting fares on the basis of the demand for particular flights and by
reference to the period remaining to the date of departure of the flight => highe r fares
charged on flights with higher levels of demand for bookings made nearer to the date
of departure.
2. Customer services
Ryanair’s strategy is to deliver the best customer service performance in its
peer group
Better punctuality, fewer lost bags and fewer cancellations than all of the rest of
its peer grouping in Europe
Focusing strongly on the execution of these services and by operating from
uncongested airports
3. Frequent Point-to-Point Flights on Short-Haul Routes
Ryanair provides frequent point-to-point service on short-haul routes to
secondary and regional airports in and around major population centers and travel
destinations
Point to point flying (as opposed to hub-and-spoke services) allows Ryanair to
offer direct, non-stop routes and avoid the costs of providing through service for
connecting passengers, including baggage transfer and transit passenger assistance
costs.
8. Short-haul routes allow Ryanair to offer frequent service, while eliminating the
necessity to provide “frill” services otherwise expected by customers on longer flights.
Secondary and regional airports are generally less congested than major
airports and, as a result, can be expected to provide higher rate of on-time departures,
faster turnaround times, fewer terminal delays and more competitive airport access and
handling cost.
7
4. Low Operating Cost
Ryanair’s operating costs are among the lowest of any European scheduled
passenger airline.
Aircraft Equipment Costs: Purchase used aircraft of a single type. The
purchase of aircraft from a single manufacturer enables it to limit the costs associated
with personnel training, maintenance and the purchase and storage of spare parts, as
well as affording greater flexibility in the scheduling of crews and equipment
Personnel Productivity: Control its labor costs by continually improving the
productivity of its already highly-productive work force
Customer Service Costs: More cost efficiently services provided by third
parties such as aircraft handling and ticketing.
Airport Access Fees: Ryanair attempts to control airport access and service
charges by focusing on airports that offer competitive cost terms.
Management attempts to obtain competitive rates for such services by
negotiating multi-year contracts at prices that are fixed or subject only to periodic
increases linked to inflation. The development of its own internet booking facility and
reservations center has allowed Ryanair to eliminate travel agent commissions.
5. Taking advantage of the Internet
Ryanair convert its host reservation system from the BABS (British Airways
Booking System) to a new system called Flightspeed under a 10 year hosting
agreement with Accenture Open Skies (“Open Skies”). Open Skies developed an
internet booking facility called Skylights, which allows internet users to access
Ryanair’s host reservation system and to make and pay for confirmed reservations in
real time through Ryanair’s Ryanair.com website.
9. 6. Commitment to Safety and Quality Maintenance
Ryanair’s commitment to safety is a primary priority of the Company and its
8
management:
Hiring and training of Ryanair’s pilots, cabin crews and maintenance personnel
Including a policy of maintaining its aircraft in accordance with the highest
European airline industry standards
7. Enhancement of Operating Results through Ancillary Services
Ryanair provides various ancillary services and engages in other activities
connected with its core air passenger service, including non-flight scheduled services,
the in-flight sale of beverages, food and merchandise and internet-related services =>
increase sales, while at the same time reducing costs on a per unit basis.
8. Focused Criteria for Growth
Building on its success in the Ireland-U.K. market and its expansion of service
to continental Europe, Ryanair intends to follow manageable growth plan targeting
specific markets. Ryanair believes it will have opportunities for continued growth by:
Initiating additional routes from the U.K. or Ireland to other locations in
continental Europe that are currently served by higher-cost, higher-fare carriers;
Increasing the frequency of service on its existing routes;
Starting new domestic routes within EU countries;
Considering possible acquisitions that may become available in the future;
Connecting airports within its existing route network (“triangulation”) ;
Establishing more new bases in continental Europe
10. PART 3: RYAN AIR ‘S OPPERATING ACTIVITIES
9
I. COST LEADERSHIP STRATEGY
1. No-frills services
Ryanair will advertise low prices and people will occasionally have a hard time
finding a flight at this price. At the same time the price will be for the very basic
service for getting passengers from A to B. Advertising seats "from € 5" is legal as
long as some seats are actually sold for this price. The rest may be sold at much more.
And every prospective passenger will have to go through a decision process regarding
extras like luggage, check-in or insurance, opting out or opting for an additional
charge.
Ryanair Luggage Restrictions: Ryanair has the target of reducing check-in
baggage to zero to save on costs. Baggage handlers and the baggage infrastructure cost
money, baggage in the hold costs fuel. Check-in baggage will incur charges and there
is no effort made at hiding this fact.
Ryanair Check-In Closures: Check-in desks serving Ryanair flights do cut off
at exactly the time when you are told they do. Again it is a simple matter of
understanding that when Ryanair say "half an hour", they mean 30 minutes. Despite
being an Irish company, Ryanair is not run with the happy-go-lucky ethos of "Ah,
sure, it'll fit!" No - Ryanair is run by bean-counters with military precision for the
purpose of paying little money.
Ryanair In-Flight Catering: Ryanair actually charges for food and drinks. A
reality check is recommended here - coffee ad sandwiches are simply not part of the
flight price.
2. Reorganize fleet of plane
They operate only one type of aircraft to keep maintenance simple and cost
effective with bulk buying of a single set of spares. The flying crews are
interchangeable as they only have one aircraft type and consequently their training is
11. reduced and simplified. They outsource where they can to keep their productivity high
and have their computer systems well integrated
Ryanair has placed a huge $22bn (£13.6bn) order for a fleet of Boeing 737
MAX 200 aero planes, which it'll be filling with a potential 197 passengers. A
reorganization of the insides should allow it to fit more people inside and slightly
improve knee clearance for lanky travelers.
The planes feature eight more seats than Ryanair's current 737-800s, a boost
achieved by moving the rear toilets and removing part of the front galley. The planes
are also some 18 per cent more fuel efficient in their Ryanair configuration, which will
help batter down prices by a few pence if needed.
3. Reorganize pricing structure
With various pricing strategies, by reviewing the business practices by Ryanair
one can see that the company is adopting a dynamic pricing strategy. It is a flexible
pricing mechanism made possible by advances in information technology, and
employed mostly by Internet based companies through responding to market
fluctuations or large amounts of data gathered from customers – ranging from where
they live to what they buy to how much they have spent on past purchases. In another
word, customers with different willingness or necessity under various situations would
be charged differently.
First of all, a large proportion of the flights are designed to land in the remote and
smaller airports where the rental cost would be lowered, and thus the prices of the
tickets would be in a lowered level. Because of such arrangements, people choosing to
fly with focus on cost would be able to choose such flights because of their willing to
travel via such remote airports while those customers with focus on convenience could
still choose flights bounded for large cities by with higher prices.
Secondly, most in-flight services are chargeable. In-flight services or value added
services such as baggage, meal and seat selection are usually free for all passengers.
But as for the company, it separates such value added services alone and sell them to
those who are willing to pay for such services while the others will enjoy cheaper
ticket prices.
10
12. The ticket prices are divided into different categories based on the market
fluctuations and a large amount of data gathered from customers, in general customer
who have booked tickets very earlier before the departure date of the flights could
enjoy cheaper fares.
For operational effectiveness, it is then recommended that Ryanair should
outsource as many non-core functions as possible that may abandon peripheral
services such as catering or ground handling services and can be required to perform
such activities as external specialist companies defined to be independent profit
centers.
11
II. HUMAN RESOURCE STRATEGY
Ryanair is the most successful low-fare airline in Europe who follows on cost
leadership strategy. HRM policies and practices of Ryanair range from outsourcing
certain non-core functions, adopting flexible work practices (telework, work from
home) and the increased use of information technology. In addition, it is essential that
a cost-benefit analysis of implementing new HRM policies and practices be
undertaken in order to not enhance to the cost strategy.
1. Recruitment
Ryanair aim to identify and recruit suitable applicants in a cost effective and
legal manner, the recruitment process involved planning, screening and selecting. The
HR team at Ryanair most ensure recruitment program is directly related to the
company strategic planning.
2. Training & development
Ryanair conducts cost efficient strategy which results in low investment in
training and development on employees. The fear of trained staff being poached could
also be utilized as an excuse for Ryanair to not increase their training budget as trained
staff might leave for a more lucrative competitor.
3. Performance appraisal
In order to control employee compensation costs, the firm implements a
performance related pay structure. Although the company provides lower labor costs,
the employees can earn additional pay or remuneration base on their performance.
13. Unlike other airline company, every touch points to customers is taken advantage
to increase revenue for the company instead of raising high satisfaction from
customers. For instance, Ryanair charge 40 pounds for overweight luggage and reward
5 pence for employee who found that.
All the pay structure are designed related to cost effective. In this case, Ryanair
benefits from both side: promote their staffs follow their cost strategy, and also gain
revenue and minimize cost arising.
However there are a lot of draw-backs behind their succeed. Ryanair focuses
only on their cost but not their human resources who directly bring them the
satisfaction from customers, who work beyond their authorization and staffs are also
the one who build up the reputation for the company. With its low cost and efficiency
driven strategy, the RyanaAir has high passenger per employee ratio. This results in
overload in work, less time for innovation and unresponsive to customers’
requirements. At the same time, they are benefit from highly efficient staffs who are
committed with policies that define to multitask and earn more. Ryanair saw long
work hours as a sign of commitment. Pilots, reservation staffs all have to work in long
hours. Pilots were asked to take substantial pay cuts. There were changes in working
conditions and relocation to new bases with no help with their relocation costs. After
being claimed by Irish Airline Pilots’ Association (IALPA) due to the pay cut for
pilots, RyanAir decided to hire Romanian pilots who are not in IALPA members to
continue their strategies. Besides there are some rules for employees when working at
the office, for example: Personnel are not allowed to charged mobile phone at the
office, and they have to pay for their own uniform, food and education courses.
For such high requirement in commitment to overloaded works, and such
dissatisfied merits, there is no doubt that Ryanair is capable of strong human resources
even with high pay and reward. The human resources of the company are not seen as a
potential source of competitive advantage. The company do not seem to value its
people. There is a growing belief that a company’s human resources is the most
important source of competitive advantage. In a fast-changing environment where
technological innovations and other strategies can be copied, it is the human resources
that bring a sustainable competitive advantage.
12
14. 13
III. MARKETING STRATEGY
Ryanair is the European low cost airline. And it applied the low-cost or no-frill
marketing strategies, which has made Ryanair one of the most successful airlines in
the world. Its success can be discovered by the analysis of the Marketing Mix strategy.
1. Price
- Ryanair has low fares.
- 70% of seats are sold at the lowest two fares.30% of seats are charged at higher
fares. The last 6% are sold at the highest fare
- Ryanair occasionally get in trouble with bodies such as the Advertising
Standards Authority (ASA) in the UK over differences between advertised and
actual price – in fairness to Ryanair these are rare mistakes.
2. Product
- Low cost, no frills air travel to European destinations.
- There is no free food or drink onboard. Food and drink are income streams.
You buy them onboard, or you don’t – take your own food and drink if you
like.
- There are other income streams – or ancillary revenue. The company has deals
with Hertz car rental, and a number of hotel businesses. So Ryanair takes a
commission on ‘up selling’ i.e. ancillary revenue. Other examples include
phone cards and bus tickets. About 16% of profit is made this way. This keeps
costs lower.
3. Promotion
- They spend as little as possible on advertising.
- They do not employ an advertising agency. Instead all of the advertising is done
in-house. In fact O’Leary himself oversees much of the promotion of Ryanair.
They use simple adverts that tell passengers that Ryanair has low fares.
- Ryanair employs controversy to promote its business. For example in 2009, the
company reasoned that passengers would be charged £1 to use the toilets on
board. O’Leary reasoned that passengers could use the terminals at either the
destination or arrival airport. This would speed things up. It was reasoned that
this is what passengers wanted – since they did not want other passengers
15. leaving their seats and walking the aisles to go to the toilet. O’Leary also argued
that larger passengers should be charged more since they took up more room –
again it was reasoned that this is what the majority of passengers wanted.
- Some of their aircraft are decorated in the livery of advertisers e.g. News of the
World, Jaguar and Kilkenny (beer).
4. Place
- Ryanair does not use travel agents so it does not pay agency commissions. It
uses direct marketing techniques to recruit and retain customers, and to extend
products and services to them (i.e. Customer Relationship Management). This
reduces costs.
- You book online over the Internet. This saves them 15% on agency fees.
- They are based in Stansted in Essex – which is known as a secondary airport. It
is new and accessible. It is cheaper to fly from Stansted than either Heathrow or
Gatwick, and since it is less busy Ryanair can turn aircraft around more quickly.
- Many of Ryanair’s destination airports are secondary. For example if you fly to
Copenhagen (Denmark) you arrive in Malmo (Sweden) – although it is only a
short coach trip over the border. Secondary airports, which tend to be smaller
regional airports, depend upon this single carrier – some (it is rumored) paying
up to £100, 000 for each additional new route. Costs are lower and aircraft can
be turned around faster.
- Keeping aircraft in the air as much as possible is another important part of the
low cost jigsaw. However, the company has been challenged by the European
Union in relation to anti-competition laws.
Beyond any doubt, Ryanair is one of the strategic marketing successes of the last
decade. Undoubtedly synergized by Michael O’Leary – the low cost strategy that it
employs is remarkable and industry changing. In many ways the business has looked
closely at all aspects of it markets and operations to remold the industry and customer
expectations in a unique way. This is how Ryanair has applied the marketing mix.
For Marketing strategy, Ryanair should has a detailed plan for its strategic moves
in the market and be able to provide good customer services to the customers like by
having discounted flights and value promotion to keep the competitive advantage at a
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16. stable mode within its competitors and will need to focus more on the core
competencies that allow Ryanair to practically and wisely designs suitable airline
operations within the bracket of their marketing network services in a market standard-based
perspective. Ryanair need to be goal oriented and must not stop to rejuvenate
and change their marketing plan strategies from time to time in order to re-invent the
performance process upon the upgrading of rules and regulations mandated by the
state. Ryanair is to overcome the lack of product differentiation and increase it that
will have the ability to revive revenue generation.
Based on above analysis, it is recommended that Ryanair consider the expansion
in to haul markets – specially the transatlantic routes which accounts for more than
60% of world’s air travel. By moving in to this new market with its low fare strategy
coupled with added service options the company can utilize its existing business with
introducing complementary goods and services via its web site its also recommended
as this will allow the company to further reduce its cost base per uni t of customer.
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17. PART 4: RYAN AIR ‘S TATIC-LEVEL ACTIVITIES
I. RYANAIR’S PROMOTION CAMPAIGNS
Ryanair CEO Michael O’Leary said upon the announcement of the group
booking service that the airline will target the group and business travel markets this
year: “2014 is set to be a very exciting year for all groups and business passengers as
Ryanair’s entry into these markets will significantly lower their costs of travel,” he
said in a statement on the launching of group booking promotion. Indeed, Ryanair has
launched a lot of promotion to prove its announcement for the most part of 2014.
Ryanair launched its first UK TV advertising campaign to communicate
its recent customer service changes to consumers in April. The ads, which ran in the
UK, Ireland, Spain and Italy from 10 April, promoting three of the changes: allocated
seating, a second free cabin bag and the new Ryanair website, which was launched on
3 April. The campaign, created by Dare, has a narrator imagining the old Ryanair,
while the customer experiences the new Ryanair. The ads underpin Ryanair’s new
tagline “Low Fares. Made Simple” as it aims to get the message across that it now
offers both low prices and improved customer service. The TV campaign was
supported by press, outdoor and digital activity.
Ryanair are trying to make it easier for people to travel in groups with
the introduction of a new group booking service similar to that employed by other
airlines. The service allows travelers to block book at least 20 seats on a flight with the
person booking not required to included the names of all the passengers at the time of
booking. Half of the names have to be submitted halfway between the booking date
and departure date with the remainder of the names due 14 days before the departure.
The total payment is required at the time of booking. Ryainair say the group bookings
are designed to allow for greater flexibility of travel for schools, sports clubs and all
other large travelling parties.
Here is the form that we get from Ryanair’s official website:
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18. Ryanair is prepping a new marketing campaign to promote the launch of
its new ‘business class’ to offer flexible tickets, extra baggage and ‘premium’ seating.
Launching on TV on Monday (1 Sept), the ads communicate the new proposition to
business travelers and introduce the strapline “Business. Made Simple”. The
campaign, created by Dare, will also run across press and regional radio as well as on
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19. digital by retargeting key websites, such as business publications, in nine European
countries including the UK.
The new “Business plus” fares will be available on all flights with prices starting from
£59.99. Speaking to Marketing Week, Ryanair’s chief marketing officer Kenny Jacobs
says the service will be “straightforward” offering business travelers “great value on
the things that matter to them”. This includes flexible tickets, with passengers able to
change their ticket free of charge up to one hour before departure, fast-track through
airport security, an increased baggage allowance of 20kgs and priority boarding.
There will also be access to “premium seating”, which Ryanair describes as seats at
the back or front of the plane or the emergency seats located over the wings. However,
Ryanair currently has no plans to introduce a “business section” on its planes, with
Jacobs saying the seats will not be “physically different”, there will be no curtain to
separate areas and business passengers won’t get free food or drink.
Ryanair is also planning a new campaign to talk about its “every day low
fares”. Launching today (17 August) in print, Jacobs says it will work “like a retail ad”
and highlight that Ryanair has fares that start at £19.99, similar to the price of two
cinema tickets. The campaign will also air on TV with a 10-second spot that aims to
promote its price point, routes and new simpler booking, as well as outdoor and in
digital.
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20. In a desperate attempt to appeal to family travelers, low cost airline
Ryanair have announced its new family product, Ryanair Family Extra, offering
families a range of discounts on travel and an improved service on all flights.
With the new plans, families are offered fifty per cent allocated seating
discounts on children’s seats, fifty per cent off checked-in bags for children and
discounted priority boarding.
They also announced fifty per cent off travel insurance for children, reduced
infant fees (now £20), a free 5kg infant bag allowance.
Ryanair’s Chief Marketing Officer, Kenny Jacobs said: 'As part of our Always
Getting Better programmed and our commitment to the continued improvement of our
customer experience, Ryanair is delighted to launch Ryanair Family Extra, offering
families a great range of discounts and an improved service for those travelling with
children.
'This the latest in a long line of Ryanair customer improvements, following
allocated seating, a free second carry-on bag, reduced fees and a new website and we
will next unveil our brand new app and mobile boarding passes in July, followed by a
tailored business product, as we continue to offer so much more than just the lowest
fares.
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21. Ryanair EasyJet Norwegian Air
Staff 5 8 15 14 16 33
8 18 8 26 15 22
Route Charges 6 6 13 8 - -
6 8 17 20 16 17
2 6 12 31 4 2
Total 27 46 65 99 51 74
% vs. Ryanair - +67% +137% +262% +86% +170%
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II. SOME FACTS AND FIGURES
Will carry over 84m passengers this year. Moreover, Ryanair targets reaching
120m passengers annually over the next decade, equivalent to 4%-5% p/a and this
looks very achievable.
Has an unblemished 30 year safety record
Has a fleet of 300 Boeing 737-800 aircraft
Operates in 30 countries
Operates to/from 186 airports
Has 69 bases across Europe and North Africa
Operates over 1,600 routes
Operates over 1,600 flights per day.
Ryanair’s cost per passenger is the lowest in Europe by some margin,
approximately one third lower than that of easyJet.
Berlin
Spirit Southwest
Airports &
Handling
Aircraft
O’ship &
Maint.
Sales &
Marketing
(Source: CAPA - Centre for Aviation and latest available accounts via Ryanair
presentation 28 January 2013).
22. REFERENCE
1. Ryanair’s official website:<www.ryanair.com>
2. “Ryanair launch group booking as it targets large travelling parties”, Jan 15th ,
2014, available at <http://businessetc.thejournal.ie/ryaniar-group-1265927-Jan2014/>
3. “Ryanair goes 'family-friendly': The airline which once proposed charging to use
the toilet announces 50% discounts for passengers flying with children ”, by Emily
Payne, 17th June, 2014, available at <http://www.dailymail.co.uk/travel/article-
2659908/Ryanair-family-friendly-The-airline-expected-announce-discounted-charges-families-
extra-baggage-allowance.html#ixzz3DruAqEGI >
4. “Ryanair introduces 'business class'”, by Christopher Williams, August 27th, 2014,
available at
<http://www.telegraph.co.uk/finance/newsbysector/transport/11057948/Ryanair -
introduces-business-class.html>
5. “Ryanair SWOT analysis – Michael O'Leary's maniacal focus on being the lowest
cost producer” by CAPA, February 6th, 2013, available at
<http://centreforaviation.com/analysis/ryanair-swot-analysis--michael-olearys-maniacal-
focus-on-being-the-lowest-cost-producer-96465>
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