How to Increase ancillary Service Revenue of easyJet

6260 Words Jul 5th, 2014 26 Pages
TABLE OF CONTENTS

TABLE OF FIGURES

Figure 1. 0 - Data Source Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Figure 2. 0 - Benefits of Secondary Data . . . . . . . . . . . . . . . . . . . . . 10

Figure 3.0 - Top Down Approach . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Figure 4.0 - Quantitative Data Analysis Structure . . . . . . . . . . . . . 15

Figure 5.0 - Data Quality Model . . . . . . . . . . . . . . . . . . . . . . . . . 16

THE PROPOSAL

An Investigation into Easy Jet airlines customer satisfaction, as a result of their strategic low cost carrier business model, of implementing
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"Global airlines have realized that ancillary revenues can make a huge difference to profit and loss, especially during difficult times” (Upadhyay, 2013, p.1). From a business point of view ancillary revenue has become a necessity for all airlines as they all struggle to fill the profit gap created by high operating costs and intense competition, in order to achieve an increase in profitability (Kuuchi, 2013). According to Robson, competitive advantage is attained by targeting to provide a more relevant and advanced product offering for the same price as the competition within the same market (Robson, 1994). However low budget airlines have turned this around and have focused on attaining competitiveness by offering lower prices than competitors, making their pricing their superior value and unique benefit, without increasing the products value itself, but simplifying it to its basic and letting the customer change the product to its personal needs and demands (E. Porter, 1985). Budget ticket offerings have long proven to be one of the most successful strategies and business models in the airline industry for companies such as easyJet, to attain not only a rise in profitability but also to increase market share and competitive edge, as more and more budget-conscious tourists are willing to give up comfort in return for lower fares (Hyonhee, 2012).
1.3 THE EASYJET BRAND

"Business Sense not Business Class" (easyJet, 2013)

The Easy Jet brand