Ryanair Marketing Strategy

750 WordsJun 19, 20183 Pages
Ryanair airlines low fare concept was conceived by three Irish businessmen in 1984 who wanted to break up the duopoly of the major airlines between Ireland and England. The strategy was simple in nature; offer lower prices than any competitor on the same route. Ryanair began operations in 1985 with a single 15 seat turboprop aircraft operating one route between Waterford, Ireland to London, England. The fare was only €99 ($138), less than 50% of the two competitors at the time. Ryanair carried 5000 passengers during the first year. In 2012, the airline carried more than 79 million passengers. Ryanair has demonstrated consistent growth and profit with the exception of 1991 and 2001(Ryanair, 2013). Ryanair was founded with the…show more content…
Services such as safety, on-time reliability, in-flight services, frequency of departures, and customer service are all a part of the airline product. According to Wensveen 2011, the airline with the most frequent service times will capture the largest market share. Ryanair has utilized their product by increasing the number of flights available over their competitors while maintaining an average of 80% capacity throughout the past five years (Ryanair, 2013). Ryanair is the only EU airline that does not overbook and has no alliances with other airlines and in my opinion; this assists them in maintaining capacity above their break-even point of 70% (Ryanair, 2013). Price: The airline must price the product so the customer perceives value and the airline retains adequate revenue (Wensveen, 2011). Price has become one of the most volatile and competitive areas since deregulation. Ryanair’s average ticket price for a non-reserved seat is about $67, which averages 35- 50% less than any competitors. This is seat price only; a chart of additional fees is shown on the Ryanair website for services such as ticket changes, checked baggage, infant fees, and reserved seating. However, the airline remains firm to its original slogan of “no fuel surcharge ever” (Ryanair, 2013). Promotion: The airline must communicate with the potential customer in order to let the consumer know the product is available at the right price, place and time. This is the major goal of
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