I.

Background
a. Ryanair is an Irish airline company known to be famous in promoting extremely low-price
base fare ticket for their passenger. As there are known to be as “no-frills” airline business
model. They only offer and provide only the essential. The operation they usually do is flight
attendants make sure that passengers leave nothing behind before they arrive to the gate,
that a conventional airline would need 15-20 minutes to clean the cabin after they arrived.
That gives them time to minimize their aircraft’s time on the ground. As they consume more
time in air. The more their plane gets back in the air faster, the more it generates revenue
only when they are flying. As their average flight is 11-12 hours per day that makes their
capital productivity is almost 50% higher compare to other airlines that the average hours
on air is 8 hours a day. That is why the Ryanair rose by 21% to $5.85 billion in its fiscal year
2011/2012, but profit jumped by 50% to $750 million. It represents the return of sales of
12.8%, an unusually high number for an airline. Ryanair is much more profitable than the
American icon low-cost airlines. For that Ryanair price communicates is often extremely low,
with basic ticket sometimes free of charge or for as low as 99 Euro cents (roughly P58.50).
II. Statement of the Problem
a. The price strategy that Ryanair Airline is being employed based on the case study is low-
price strategy. It is because they offer a low price ticket fare for their passengers. They able
to pull it off by being a no-frills airline business model.
b. The factors that contribute to their success using its price positioning strategy are they
began with a strategy from day one and they are extremely efficient. They operate as a no-
frill airline business strategy since the beginning so they can low the price of their ticket
fares. While they process and operate the efficiency of their service.
c. The company can achieve their success using high-price and premium-price strategy are by
considering what are the essentials for their company, as well as to their customers, how
will they sell and plan their services, and what does the company needs and especially to
their customer. For example, for high-price strategy a one factor you can consider for your
company to become successful is having a superior value is a must, it is because the more
you’ll give more importance to your customer, giving them what they need and most
essential thing the more you’ll become successful because customers are the most
important part for your business. For premium-price strategy one factor you can consider
highest level of performance because successful premium-price companies deliver products
 and services with superior performance, quality and performance is a must. Lastly, top
talent essential is a must too, especially for your airline type of business because if you
employ people who meet the highest standards and performs on a highest level, your
services to your customers would experience the highest-level quality services.
III. Areas of Consideration
a. For low-price strategy they are offering the price that Ryanair communicates is often
extremely low, with basic ticket sometimes free of charge or for as low as 99 Euro cents
(roughly P58.50). The revenue of the airline rose by 21% to $5.85 billion in its fiscal year
2011/2012, but profit jumped by 50% to $750 million. That represents a return on sales of
12.8%, an unusually high number or an airline. The factors they engage in low-price strategy
is that up to the beginning of their business they stay as no-frills airline while achieving
maximum productivity with minimum wasted effort or expense that makes them more
efficient in their business.
IV. Alternative Courses of Action
a. The two-alternative course of action, are the high and premium strategy pricing. For the
high-price strategy, it should have a continual improvement to their services as the time
goes by, giving what people wants yet maintaining its high and very consistent quality
performance, level and comfort that they’re offering to their passengers. Giving special
offers to your passengers can be a good thing too in high-price strategy for it will gain more
attentions in your business that can give you more customers to avail to. The advantages to
high-price strategy are you can give high quality service yet for disadvantages to some
people it can be pricier. While for premium-price strategy, one of the main thing is hiring the
best talent of the best talent that you can get. Meeting the highest standard and as it
delivers services in its superior performance on the highest level that can give more deluxe
and luxurious experience to their passengers. The cons to premium pricing might be too
pricey to some people and they can’t afford it, while the pros to it as a consumer you can
get the best quality that the company can offer.
V. Recommendation
a. I recommend doing both, high and premium strategy pricing. Traditionally airlines have its
three levels of class the First Class, Business Class, and Economic Class. Categorizing its price
and given services for their passengers. Low, high and premium pricing strategies can be
more essential to an airline business because of what their customer can avail in terms of
 what they need a. Not all people wants a usual economic kind of class and not all can afford
the first class, but they can have a decision of what classes that they can afford and as an
airline that has more options you can accommodate what they want and need.
VI. Problem Solving

Ryanair Airline
Date Number of Passengers Distance in km Total passenger-km
January 1, 201A 200 130 26,000
January 5, 201A 190 120 22,800
January 8, 201A 185 300 55,500
January 10, 201A 210 250 52,500

Total cost 800,000

Total passenger-km 156,800
Cost per passenger-km 5.10

VII. Management Lessons Learned

a. We’ve learned that you can be successful in any strategies you choose or decided from as
long as you know how to make it work and putting efforts and dedication on your work.
Regarding to the factors that help, create and sustain on your success to your business
always keep it consistent in terms of having high performance of your services while
improvements the best you can offer to your customer.