Ryanair Pricing Strategy

Ryanair

Pricing Strategy

Executive Summary

We chose the pricing strategy of Ryanair as our case study’s topic in the marketing strategy class. We tried to use the pricing strategy knowledge which we learned in the class to analysis the pricing strategy of Ryanair company. In this case we covered three parts which are introduction of Ryanair, pricing strategy and the conclusion. We also spreaded the pricing strategy into two parts, the first part is the low-fare pricing. In this part we talked about how they save their cost to minimize the fare.  In addition, we talked about regional airport, direct selling, only one aircraft model, point to point carrier, no-frills service and the management cost control in the low-fare pricing part. The second part is the dynamic pricing of Ryanair. We covered the definition, addition charges and other application in this part. The most important thing is we learned how the dynamic pricing works in the low fare airline company.

Ryanair Background

Ryanair was established in 1985. It has grown from a very small airline flying the short journey from Waterford to London into one of the largest airline company in Europe. Now Ryanair has more than 1,200 pilots and over 8,500 employees. Ryanair also is a member of ELFAA (European Low Fare Airline Association), and most of the airline company in this association is the competitors of Ryanair. However Ryanair has very good pricing strategy, so they still have a good position in European market.

Ryanair Marketing Strategy (STP)

We tried to segment the customers of Ryanair based on the type of customer.

There can be three types of customers –Business, Individual/Family and Agency.

Business customers are the ones that buy more tickets than individual/family buyers and are more likely to be loyal. An example of this may be a large/ small company booking tickets for its employees. Besides, they focus more on the the timetable than on the price.

Individual/Family customers are the ones travelling less frequently and are very likely to switch to other airlines if that airline offers cheaper tickets. They are called price-sensitive consumers.Agents are the booking agents who book flights based on the needs of their own customers. So if their customer needs a cheap flight, they’ll book the cheapest one available in the market. On the other hand, if their customer demands good service, they may book a flight which offers better service. Nevertheless, the number of tickets that the agent’s book is higher than the number of tickets Business and Individual/Family book.