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Service Marketing Ryanair
Service Marketing Ryanair
Service Marketing Ryanair
SERVICES MARKETING
RYANAIR
INTRODUCTION OF RYANAIR
Ryanair is an Irish low-cost airline that was founded in 1984. It is based in Swords, Dublin,
Ireland, and operates from Dublin and London Stansted airports. It is the parent company of
Ryanair Holdings, which also includes Ryanair UK, Buzz, Lauda Europe, and Malta Air.
It is Ireland's largest airline, and in 2016, it overtook Ryanair as Europe's top budget airline
by scheduled passengers flown, transporting more foreign passengers than any other airline.
Ryanair connects 35 countries across Europe and North Africa with 84 bases.
The Ryanair Group runs almost 400 Boeing 737-800 aircraft, with a single 737-700 serving as
a charter plane, a backup plane, and a training plane. The airline is known for its quick
development, which was fueled by the deregulation of the European aviation market in 1997
and the success of its low-cost business strategy. Ryanair's route network spans Europe,
North Africa and the Middle East, serving 40 countries.
MISSION OF RYANAIR
Low rates produce more passenger traffic, but Ryanair maintains a constant focus on cost
containment and operational efficiencies.
"Any genuine passenger service pledge, according to Ryanair, should include a commitment
to cheap prices and great punctuality. Ryanair's Customer Service Statistics are published
every month, and they demonstrate that Ryanair is Europe's No. 1 in terms of customer
service, with outstanding pricing and timeliness."
"Any genuine passenger service pledge, according to Ryanair, should include a commitment
to cheap prices and great punctuality. Ryanair's Customer Service Statistics are published
every month, and they prove that Ryanair is Europe's No. 1 in terms of customer service,
with exceptional rates and punctuality. "
VISION OF RYANAIR
Continue to strengthen and extend its low-fare service offerings to solidify its position as
Europe's premier low-fare scheduled passenger airline.
myRyanair Wallet:
Easily book flights using your wallet balance.
With a single click, you may get real-time refund status information.
MyRyanair account has been updated to enable for the storing of all travel documents in one
location.
Self-Service Digital Hub:
Self-serve online without having to call Customer Service.
Improved chat, FAQs, and new self-help videos are now available.
Follow up on claims from guests and discussions with Customer Service.
Commitment to a Refund:
Within 5 working days, refund requests will be processed and reimbursed to the original
method of payment.
Within 24 hours of submitting your request, you will receive confirmation and access to your
refunds on myRyanair.
Other persons are frequently included in the service offering. Customer service, host and
hostess are only a few examples.
The generation of value is dominated by intangible aspects. It's crucial to convey both
comfort and quickness.
It is impossible to keep track of services. A plane with a small number of passengers is not
profitable.
Operational inputs and outputs are more variable. Employees and consumers can both
benefit from training.
The importance of the time issue cannot be overstated. There aren't many flight delays.
It produces money because it can reach a vast number of people at low prices.
It only utilizes the B737 since it is trying to keep costs down.
The airline does not give complimentary meals or beverages.
Numerous additional costs, terrible seats, no in-flight entertainment options, and bad
customer service are among the complaints.
As the flying date near, prices rise.
Intangible elements dominate value creation.
It is necessary to transmit comfort, experience and speed.
It is intangible because passengers cannot own it.
Product Elements or Service
The intangible services that Ryanair delivers to customers are the product part of the
company's marketing mix. A product is whatever a business sells to its customers. Physical
commodities, experiences, services, locations, events, people, information, properties, ideas,
and organizations are just a few of the qualities. The product aspect for Ryanair is the
intangible customer services provided. It provides travelers with low-cost, no-frills air travel
to places like as Ireland, Continental Europe, the United Kingdom, and Morocco.
Air transportation at a low cost, onboard (no food or drink), collaboration with booking.com,
skyscanner, Hertz, Buzzair...
Hertz
The company's affiliation with Hertz Car Rental and various hotel businesses generates
additional revenue and expands the company's array of product offerings available to
clients. Because Ryanair does not have seat assignments, it makes more money by offering
"priority choices." Customers are seated in a first-come, first-served basis.
Passengers are responsible for their own food and drink while aboard because the airline
does not supply them for free.
3. Another critical piece of the low-cost puzzle is keeping airplanes in the air as often as
feasible.
2. Ryanair's destinations include a large number of secondary airports. If you fly into
Copenhagen (Denmark), for example, you will land in Malmo (Sweden), despite the fact that
it is only a short bus ride across the border. Ryanair likewise avoids using main airports in
order to focus on minor airports. The secondary airports are usually tiny local airports where
Ryanair is the primary airline carrier. The low-cost advantages of operating in certain
airports, as well as the rapid turnaround time, are the most significant advantages. The
industry's flag airlines manage primary airports, which get a lot of traffic.
Price
Ryanair offers low-cost flights. At the lowest two rates, 70% of tickets are sold. A third of the
seats are charged at a higher rate. The final 6% of tickets are sold at the highest fare.
Ryanair has had run-ins with regulatory organizations such as the Advertising Standards
Authority (ASA) in the UK regarding pricing discrepancies between advertised and actual
prices, although these are unusual blunders.
Promotions
Ryanair has promoted itself through sponsorship deals with Channel 5 as well as events like
the Cheltenham Racecourse. They also have sway over the Social Media Platform, which
they utilize to market themselves as well as gather client feedback.
They spend as little money on advertising as possible. They don't utilize an advertising
agency; all of their marketing is handled in-house.
They utilize straightforward advertisements that inform consumers that Ryanair offers
affordable prices.
Ryanair capitalizes on controversies to boost its brand. In 2009, for example, the business
reasoned that customers would be charged £1 to use the on-board restrooms. Passengers
may utilize the terminals at either the destination or arrival airport, according to O'Leary.
This would expedite the process. This was reasoned to be what people want, since they did
not want other passengers leaving their seats and walking down the aisles to use the
restroom. O'Leary also suggested that larger passengers should be paid more since they take
up more space - again, the majority of passengers favored this.
Advertisers' liveries are painted on some of their planes, such as News of the World, Jaguar,
and Kilkenny (beer).
People
Pilot cadets are recruited when they are still young. They put in long hours and accept early
promotions, only to depart after 10 years. The cabin crew is responsible for washing their
uniforms. They are largely responsible for the safety of passengers.
Physical Evidence
They want to get the best deal on their planes. Planes are the most costly asset a company
can own. Because they acquire planes when other airlines don't want them, they obtain
huge savings.
The intangibility of services is their most crucial attribute. Because Ryanair is in the services
business, it must place a high value on physical infrastructure, as they are the most essential
drivers of service delivery convenience. Physical amenities also influence how much a
passenger enjoys their journey and how efficiently the organization serves its clients,
especially during high seasons. Ryanair's most valuable asset is its fleet of aircraft. Because
of the plane model's high durability and minimal operational overheads, it relies on Boeing
737s to maintain its low-cost operations.
Physical Environment
The high office strategy and their website are preoccupied with introducing passengers to
their inexpensive rates, therefore flights are frequently full.
Process
There is no check-in procedure. All you have to do is produce your passport and provide your
reference number. You will not be able to choose your desired seat. It's a first-come, first-
served basis. There are no air bridges in this world. To get to the plane, you may either walk
or take a bus. Baggage is delivered straight to the terminal, which saves time. If your luggage
is broken, however, don't anticipate excellent customer service.
The most recent check-in removal was confirmed in 2009. This decision was considered as a
way for the airline to save a significant amount of money on customer care. The full
automation of the check-in system, as well as additional fees like as payment processing
fees, check-in fees, price for bringing a baby on board, charge for hold luggage, second
luggage, and excess luggage brought on board, terrify the majority of passengers. For the
corporation, these fees have been a substantial source of revenue.
This drive to attract passengers has certain unintended consequences, including the creation
of a fare-competitive environment. Ryanair intends to eliminate the least profitable carriers,
which, if successful, will boost the airline's traffic even further. It's a fantastic, self-propelled
method that's worked in the past. Ryanair has continually increased traffic and network
while driving down prices and growing ancillary income over the previous five years.
Ryanair shifted from a product-based to a value-based pricing model to better fulfill its
customers' desires and requirements. Furthermore, Ryanair's revenues are increased by
unbundling the air travel aspects of passengers and pricing each element separately (such as
seat selection, luggage preferences, etc.)
Many parts of Ryanair's customer service have been criticized. According to The Economist,
Ryanair's "casual handling of customers" has earned the airline a "deserved reputation for
unpleasantness," and the company "has become a byword for awful customer service... and
jeering rudeness towards everyone or everything that gets in the way." For the sixth year in
a row, according to a poll, the airline is the least popular short-haul airline in the United
Kingdom. Ryanair replied by claiming that passenger numbers had increased by 80% in the
preceding six years, and that this was a better representation of the airline's popularity than
a "unrepresentative study of only 8,000 individuals."
ANALYSIS
Ryanair is a conundrum when it comes to brand value and reputation. They appear to
perform a decent job of recruiting consumers by being the largest airline in Europe and one
of the most popular airlines in the world. Customer surveys, on the other hand, tell a
different tale. The airline has been ranked the worst in Europe and among the worst in the
world.
Due to their relentless low-fare advertising, Ryanair continues to be one of the most popular
airlines, with many people selecting for the lowest choice on the market, which is usually
Ryanair. The transition from being pleased with Ryanair to being dissatisfied occurs when
they learn that everything else, save the tickets, will be expensive. Ryanair is willing to go to
any length to maximize its earnings, including airport check-in tax, luggage size reduction
and costly additional luggage alternatives, seat selection fee, and name change fee . Another
complain-worth situation is the way the company is behaving with its customers and even
staff. With this being said, it is clear that the brand and reputation is not the strong point of
Ryanair and clearly not bringing value to the company.
Ryanair's business model is solid. Customer and employee interactions, on the other hand,
are hampered by the company model. However, throughout the previous few decades, the
strategy has provided stable returns to stakeholders and supported sustained expansion. As
a result, Ryanair's future prospects are bright.
Ryanair already qualifies as highly structured enough to take advantage of its cost-cutting
capacity, given that its primary purpose is to keep costs as low as feasible. Given that cost
efficiency has been demonstrated to be important, rare, and difficult to duplicate, Ryanair's
competence clearly qualifies as a competitive advantage.