Ryanair Success Essay

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Ryanair Success 1. What are the essential elements of Ryanair’s low-cost strategy? * 70% of all seats at a very low fares, the rest 30% seats will be higher price, and the last 6% will be sold at the highest fare. * Compared to other companies, which offer excellent service with a high ticket price, Ryanair starts with cheap and cheerful advertising. * Ryanair almost does not offer any services to customers. Customers have options to pay for services, including drinks, food and wheelchair service. * Ryanair sells tickets online by itself without any travel agents. * Due to the high customer volumes, even the tickets are low, the profits does not reduce. * Lowering the cost at check in. Only passport and the code number are needed to check in. * No air bridge between airplane and the terminal. * Have a special discount to purchase airplanes at a lower price. * Ryanair is using smaller local and secondary airports, such as Stansted, with lower price. The turnaround is fast. * Pain advertisements on the airplane. * Cooperate with rental companies and hotels to gain revenue. 2. What factors will affect its long-term sustainability? * Poor customer care department. In order to keep lower cost, no services are offered. Even the ticket price is low, poor service may lead to loss of customers. For instance, seats cannot be pre-assigned, which is not good for the family or friends group who prefer to sit together. * Fail in the market of wealthy or customers with high social status and disability people. Low price leads to poor service. People, who value the services, will not ride with Ryanair. Meanwhile, due to no wheelchair and disability service offered, disabled people has to choose other airlines. What is worse, due to no disability service, Ryanair may be complained and protested, which will affect its brand name

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