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Ryanair Strategy

Ryanair’s objective is to increase its passenger traffic and expand

into other markets by increasing the number of routes the company has

established. Ryanair wants to move into the US market with low cost

and no frills service. Ryanair will utilize a concentrated segmentation

strategy to accomplish the proposed objective effectively. Ryanair will

focus on specific groups within both the US and European markets. The

target segment we suggest focusing on is: tourists with higher incomes,

business class, couples, or families without children, aged 35-50. This

segment strategy and target group fits with the firms’ low-cost no frills

service.

Current Market

Ryanair ‘s mission statement : Ryanair will become Europe’s

most profitable lowest cost airline by rolling out our proven ‘low-fare-

no-frills’ service in all markets in which we operate, to the benefit of our

passengers, people, and shareholders (Ryanair Report, 1997).

Ryanair is the unquestioned leader in the low cost airline indus–

try. The company has had this position for many years and strives con-

tinually to maintain it. The last few years have witnessed revolutions in

the airline industry with many innovations in the airline and aircraft in–

dustry. The governments have adjusted regulations throughout the indus-

try to help maintain high safety standards while still allowing a competi–

tive market. Ryanair has had a history of very few accidents and is con–

sidered to be very safe to fly with. As a very competitive and safe airline

with short turnaround times, it has become a very popular airline for

price conscious travelers. The facilities for online travel bookings make

it all the more accessible it is the undisputed leader in the low cost air–

line industry.

The airline is well known for its low budget fares which is from

the mission and vision statement and is a strategy all by itself. The cost

leadership role which Ryanair has assumed will help it reach the target

passenger rate. To implement this Ryanair has to be dedicated towards

achieving the low cost performance in all functions of the service mod–

ule, be it: value chain, gate turn around, unionizing of operational staff,

incentive based compensation, flying patterns, routines, routes, etc.,

which have provided significant savings for Ryanair. In addition to the

flight service, Ryanair also provides some extra services, such as: car

rentals, hotels, airport transfer, travel insurance, credit cards, and free

city guides.

Many competitors in Europe offer low cost flights, but there are

no low cost airlines flying internationally, especially to North America.

This will be an advantage for Ryanair to move forward to be the first

low cost airline for overseas destinations. In order to provide low cost

flights, Ryanair will offer limited point to point routes. In order to attract

customers to Ryanair’s flights, the preferred destination for Ryanairs in–

bound flight to North America is New York City. New York City is a de–

sirable destination with its large urban size and plethora of cultural activ–

ities. Additionally it is major airline hub for domestic flights, allowing

passengers to easily make connecting flights to continue on to other des–

tinations.