Airline Product Offering : Airline Products

4201 Words17 Pages
AIRLINE PRODUCT OFFERING 7 Running head: AIRLINE PRODUCT OFFERING Written Assignment 4: Airline Product Offering Assignment MBAA 523 Advanced Aviation Economics December 10, 2015 Professor: Gerald Cook Airline Product Offering ?Ryanair and Lufthansa In the book, Flying off Course, Rigas Doganis states, that there are five key product features that affect travel decisions and choice of airline by customers, and these requirements usually do vary between different market segments on the same route, but can vary also between neighboring routes and geographical areas (Doganis, 2010). These five product features include; price, schedule-base, comfort-base, convenience and image. For any airline product that is in a given market, any…show more content…
overarching business strategy, with an explanation of the most profitable strategy. For the comparison of Doganis? five key product features, the Ireland based low-cost carrier, Ryanair will be compared to the German based, full-service airline, Lufthansa. Both airlines will be using a city-pair from Dublin to Frankfurt for the basis of the comparison in airfare. Since, Ryanair only offers a single fare for their seating class which is Economy, that is in accordance with most low-cost models and Lufthansa offers First, Business, and Economy classes, only Lufthansa?s economy class pricing will be used is used in this paper. Lufthansa uses a three tiers system for their economy class, with each tiers offering different cost structures based on the prices of the fare, which is based on options available. The tiers consist of Economy Light, Economy Classic, and Economy Flex, to stay close in accordance with Ryanair, the Economy Light class offered by the carrier will be used since the cost structure for this seating allows the passenger the same amenities as the low-cost carrier. In the airline industry pricing is vital. This type of product and service is one of the only key features that are planned and combined together so that the airline can generate demand (Doganis, 2010). Fares, for both flights were booked on the same dates of travel, using December 31, 2015 as the departure date, with a return date of January 7, 2016. The times for the particular
Open Document