Low cost strategy of Ryanair airlines скачать в хорошем качестве

Low cost strategy of Ryanair airlines

Ryanair is an Irish airline founded in 1984. The main feature that distinguishes the company from other airlines is its very affordable prices. And when we say affordable, we mean that it is almost equal to the price of a taxi in Europe. Even taxi fares sometimes are not that cheap. So how are Ryanair flights so cheap? In general, if we compare Europe and America, we will see that the price of low-cost flight tickets in America is on average 10-20% more expensive than the price of tickets in Europe. The prices of such budget flight tickets in Europe are generally 30-40% cheaper than normal flight prices. In some cases, it is even possible to find a ticket for less than 10 euros. But how do companies achieve such low prices? The first reason is that this company, unlike most other companies, does not include some special features for passengers. For instance, you will never see a small TV behind the seat on a Ryanair flight. Thus, the airline is able to reduce its costs by getting rid of some costs. These cheaper seats also do not have pockets behind them, the airline also reduces the cost of cleaning the seats after flights. Thanks to these features that we have listed, Ryanair and similar companies, as we have already emphasized, reduce their costs to the maximum. All in all, this may seem like a small thing to us, but it means a lot to airlines. For example, one of the famous airline companies saved about 40 thousand dollars in a year just by removing olives from the menu. Another reason for cheap flight tickets is that the company spends less money on employee training. For example, Ryanair uses only one type of aircraft – Boeing 737. As a result of this, the company does not incur training costs for new pilots, and aircraft maintenance mechanics to operate other aircraft. For instance, other airlines use several types of aircraft, and it costs more to train their employees to fly these planes. However, on the contrary, Ryanair avoids the additional costs that may arise by using one type of aircraft. The third reason is that nothing provided on the plane is free. For example, if passengers are offered free water, sweets, or other snacks when using normal high-cost airlines, this is not the case with Ryanair. You will have to pay extra for most things you want to buy on the plane. The Ryanair company, which does not provide these in-flight services for free, does not incur additional costs for these services, and by selling them to passengers for a more expensive service, on the contrary, it earns income. Another strategy of this company is to hire people who are just starting their careers. There are several reasons for this. The first is that new career starters have lower salary requirements than experienced workers. Secondly, those who have just started their career do not apply to other airlines due to their lack of experience and accept the salary provided by the company instead of a high salary. Another reason for the cheap tickets is that Ryanair does not land at major airports most of the time or as much as they try to minimize it. At major airports, parking fees are more expensive for airlines than at secondary airports. That’s why Ryanair lands in secondary airports as much as possible. Thus, the company manages to reduce its costs again. In fact, some airports have their own reasons for agreeing with low-cost airlines. For example, second-tier airports regularly negotiate with airlines such as Ryanair to cover their costs. As a result, both airlines pay less for the plane’s ground charge and the airport covers its own costs. Ryanair planes try not to land at airports in Paris. Instead, it lands at secondary airports about 80 kilometers north of Paris. In addition, it can be said that this company tried to make the distance between the seats in the aircraft cabin as small as possible. This means more passengers compared to other companies. #marketing #lowcoststrategy #ryanair Contact for partnership: support@easybusinessschool.org The program we used to make the animated video: https://tidd.ly/3Y5siMb