What business model does Ryanair use?

The Business Model The company’s business model is straightforward: To offer cheap air transportation to fare-conscious customers. Ryanair targets customers who might otherwise choose alternative modes of transportation or not travel at all [1]. The company focuses mostly on inter-European, short-haul flights.

What is Ryanair business strategy?

The key elements of Ryanair strategy are low fares, scheduled flights, customer services, frequent point-to-point routs, short-haul European destinations, low operating costs, high maintaining productivity, high personnel productivity, low customers costs, airport access fees, taking again a better advantage of …

What is an airline business model?

The business model, in general, determines the way one intends to make money with the airline. Legacy airlines (also known as Full Service Network Carriers) Low cost airlines (Low Cost Carriers) Charter Airlines (Holiday Carriers) Regional Airlines.

Is Ryanair Airbus or Boeing?

Ryanair Group operates a fleet of over 450 Boeing 737-800 and 29 Airbus A320 aircraft, with a further 210 new Boeing 737s on order, which will enable the Group to lower fares and grow traffic to 200m p.a. over the next 5 years.

Who are the customers of Ryanair?

Ryanair’s main target customers are people within Europe who mostly travel for private purpose, for example, who visit friends and relatives go on city-sightseeing trips. They are price-sensitive with a lower income level or other preferences and less willing to pay for the add-on services onboard.

How does Ryanair keep costs low?

Instead of making its money from ticket fares, Ryanair has become Europe’s most profitable airline by charging for extras like hold luggage and priority boarding that may cost it nothing. Low-cost carriers continue to cut fares while charging ever more for extras.

What pricing strategy does Ryanair use?

Ryanair switched a product-based to a value-based pricing approach to serve its customers based on their wants and needs. Besides, Ryanair’s succeed in boosting profits by unbundling the air travel elements of passengers and charging each element (such as seat selection, luggage preferences, etc.)

What are three major types of airlines?

Within aviation, airlines are generally grouped into three categories: legacy (or “network”) airlines, low cost carriers (LCCs), and ultra low cost carriers (ULCCs). While no two airlines are exactly alike, almost all of them fall into one of these categories.

What is airline strategy?

The only protectable strategic resources of an airline are the brand, the customer basis and the position at a hub. The core of Airline operations is networks and therefore network management. Different strategies rely on a different extent of network effects.

How many passengers do Ryanair carry?

Carrying 149m guests p.a. (pre Covid-19) on more than 2,500 daily flights from over 80 bases, the Group connects over 225 destinations in 37 countries on a fleet of 450 aircraft, with a further 210 Boeing 737s on order, which will enable the Ryanair Group to lower fares and grow traffic to 200m p.a. over the next 5 …

What is the business model of Ryanair Commerce?

Click here for sample essays written by our professional writers. The Ryanair business model is bases on low fares strategy which comprises for following key Strategies.

How is Ryanair a low cost airline?

The Business Model Ryanair’s low-cost model was initially copied from the U.S-based airline Southwest. The company’s business model is straightforward: To offer cheap air transportation to fare-conscious customers. Ryanair targets customers who might otherwise choose alternative modes of transportation or not travel at all.

Which is the best strategy for Ryanair to use?

Aside from it cost-reduction strategy, Ryan has also been able to use Porter’s generic strategies to position itself in the marketplace. Accordingly, a company positions itself by leveraging its strengths. Today, more and more people and organization are striving to be recognized in the business arena.

What kind of data does Ryanair use?

Ryanair has installed an automatic data capturing system on each of its Boeing 737-800 aircraft, which captures and downloads aircraft performance information for use as part of operational flight data monitoring (OFDM).