|RYANAIR |
|Methods of Enquiry |
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Contents Literature review 3
Research design 5
Practical issues 6
Ethical Issues 6
Plan and timetable of activities 6
Appendix 8
References 10
Introduction to the problem
Britain has finally emerged out of the recession with a growth rate of 0.1%, which was predicted to be 0.4% (Gráinne Gilmore and Robert Lindsay, 2010). The airline industry was shattered due to the recession, as
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Major airlines like British Airways and KLM reported a 5.8% fall in the number of passengers (Chris Leadbeater, 2010). It was the European Low Fares Airline Association which includes Ryanair and easy jet which enjoyed a booming year and reported a 8.7% increase in passengers in 2009 (Chris Leadbeater, 2010). Ryanair alone experienced a 15% increase in the number of scheduled passengers, from 2008 to 2009, which shows that many people preferred Ryanair over other airlines during the recession (Ryanair annual report, 2009, pg4). Around 46% of Ryanair’s customers come from UK, almost a third of its passengers are aged between 25 to 34 and around 21% are property holders in other countries (Mintel, 2007). The airline mainly depends on repeat business as 40% of its customers fly 5 times a year (Mintel, 2007). This data will help us decide our population and data regarding customer satisfaction can be gathered from it.
Ryanair has always managed to come up with cost effective strategies which helps it to maintain a competitive advantage over its rivals. It also considers the present environment as the basis for formulating its strategies, for example, the airline made an effort to gain soccer fans as its customers by announcing a special return flight for all Arsenal fans from London Stansted to Barcelona Girona, so that they can watch the club’s vital champions league match in Barcelona on the 6 April, the flight would leave from London on 6 April at 8:30 am and
It is important to examine Easyjet’s strategy due to the changing financial climate in the UK and Europe such as the 2008/9 recession and Brexit.
Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.
In recent years the Airline Industry in Europe has experienced good levels of growth. Despite instances of deceleration the market is forecasted to remain stable producing moderate growth through to the end of the forecast period in 2018. According to a report issued by MarketLine in 2014 the European Airlines industry had total revenues of $180,945.8m in 2013, which represented a compound annual growth rate
A unique cost cutting policy would be the main core competence of Ryanair. It refuses to provide any meal vouchers or hotel accommodation for flights which are delayed or cancelled for reasons beyong Ryanair’s control in order to reduce the operating cost. (Ryanair, 2011) Meanwhile, Ryanair is using LFA business model to design the size of its
The strategic plan of Ryanair has been to establish itself as Europe’s leading low-fares airline.” Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.” (www.ryanair.com)
Generally speaking, the launch strategy of Ryanair was not the best one for that moment in time. They began operations between Dublin and London, in a very saturated market, which was already served by two competing and very experienced companies owned by the governments:
Questionnaire responses also showed that those who would choose to fly with Ryanair often mentioned that it is easy to book on their website (Appendix _ Q8). Other than this there was no evidence to suggest customer’s felt Ryanair provided good customer service. To the contrary Ryanair is seen from its brand personality and overall brand image as providing poor service. This may highlight an interesting downside to trying to balance two key values. The consequence for Ryanair emphasising on cost cutting to offer the lowest prices is the difficulty in improving its perceptions regarding customer service and quality.
Prior to 1991, Ryanair had suffered from continuous losses from 1985 to 1989. The first reason that put it into this situation was that it tried to position itself as a low fare airline with the first rate services. It tried to keep low and unrestricted fare, while keep focusing on the best customer service and relationship. This mixed model was proven inefficiency. The low price could lure number of
This Case Study details the rapid growth of easyJet which started operations in November 1995 from London’s Luton airport. In two years, it was widely regarded as the model low-cost European airline and a strong competitor to flag carriers. The company has clearly identifiable operational and marketing characteristics, e.g. one type of aircraft, point-to-point short-haul travel, no in-flight
Set up in the year 1985 at a capital of 1 pound with a staff strength of 25, Ryanair is today the World’s favourite and most commonly used airline which operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft and is expected to increase it by another 64 in 2 years. Ryanair currently has staff strength of more than 8,000 people. Its passenger base has been increasing
The PESTEL shows that the external environment mainly works into opportunities for Ryanair with some unpredictable factors that might threaten the business operation. Example of this unpredictable factor is the fuel price. The fluctuation of fuel price might work into the advantage or disadvantage of Ryanair. For Ryanair to thrive in its business operation, it ought to overcome these rampant external factors and exploit the external factors that would improve their business operation such as the EU expansion. With the EU expansion, Ryanair can expand the
Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown
They are one of the main contending and competitive agencies inside the market, and are to be considered the most profitable. This report attempts point by point by the analysing the investigation of Ryanair. It takes a gander at Ryanair's current system and the administration of that procedure. It recognises how the business ‘operations and capacities impacts on the transporter's client relations and leaderships with respect to their general strategy. It likewise gives a brief assessment of Ryanair's monetary structure and also an environmental investigation of the European aircraft industry and how this influences Ryanair. The report is chiefly a contextual investigation examination in view of Müller (2011, p.89), review of Ryanair directed in 2004. In any case, other auxiliary research has been analysed and used to bolster the contentions set forward in this archive which includes a combination of description and
The objective of this report is to appraise and evaluate the external environment, internal capabilities of Ryanair and assess the competitive environment. This project report also evaluates the marketing focus deployed by Ryanair in the year 2009 when the airline achieved a benchmark by being Europe’s largest carrier by passenger numbers and market capitalisation.