Ryanair has been recognised as the second largest airline due to the high number of passengers carried. However, Ryanair faces some challenges as it grows when they try to maintain their revenue growth and at the same time keeping their price tickets low. In this case, Ryanair has operated its business in an efficient manner where it has used various methods of reducing cost to create value for Ryanair Holding business and its customers. The main method it has used to add value to Ryanair’s operation is the use of a single model aircraft, the Boeing 737-800. The aircraft can help to minimize training and maintenance costs, easy to handle spare parts inventory and allow flight crews to have a flexible schedule. Besides that, as it could
…show more content…
The latter means revenues gain by charging fees such as fees for priority boarding, reserved seats, checked baggage, excess baggage, infant equipment and a new fee charged to cover the cost of cancellations and delays. In addition, an administrative fee also has been charged to all bookings made without using Ryanair’s free payment method. This will indirectly contribute to sales of the business. Also, tickets may be changed for a fee but cannot be cancelled and no changes could be made on the details once passengers have check-in. Refunds also could be done only if there is a flight cancellation or the death of an immediate family member within two weeks of the travel date. Therefore, these policies created would be beneficial for the business in the long run in terms of profit they have locked for the …show more content…
Ryanair will handle the services marketed on its website about that company and generate revenues for the business from it. In this case, Hertz has paid to Ryanair an amount because it has handled all rentals marketed through Ryanair’s websites and in exchange for that is a fee for one passenger. Other that that, Ryanair has collaborated with a travel-media company to sell its targeted advertising which will appear on the boarding passes. This is another way to generate profits for the business and to ensure customers aware on advertisement of any on-going promotion shown at the boarding passes other that the websites. Thus, sales and marketing strategy has succeeded in creating value for customers and raising profits for Ryanair Holding
The latter means revenues gain by charging fees such as fees for priority boarding, reserved seats, checked baggage, excess baggage, infant equipment and a new fee charged to cover the cost of cancellations and delays. In addition, an administrative fee also has been charged to all bookings made without using Ryanair’s free payment method. This will indirectly contribute to sales of the business. Also, tickets may be changed for a fee but cannot be cancelled and no changes could be made on the details once passengers have check-in. Refunds also could be done only if there is a flight cancellation or the death of an immediate family member within two weeks of the travel date. Therefore, these policies created would be beneficial for the business in the long run in terms of profit they have locked for the …show more content…
Ryanair will handle the services marketed on its website about that company and generate revenues for the business from it. In this case, Hertz has paid to Ryanair an amount because it has handled all rentals marketed through Ryanair’s websites and in exchange for that is a fee for one passenger. Other that that, Ryanair has collaborated with a travel-media company to sell its targeted advertising which will appear on the boarding passes. This is another way to generate profits for the business and to ensure customers aware on advertisement of any on-going promotion shown at the boarding passes other that the websites. Thus, sales and marketing strategy has succeeded in creating value for customers and raising profits for Ryanair Holding