Ryanair and EasyJet Firms’ Strategies Case Study

Exclusively available on Available only on IvyPanda® Made by Human No AI

The air travel sector has been struggling for decades, with numerous high-profile merges indicating the market’s shifts caused primarily by rising fuel prices and several recessions. Despite the bankruptcies and failures of full-service carriers (FSCs), low-cost carriers (LCCs) slowly continue to become more dominant in various regions, namely Europe. As of 2014, the profits of Ryanair and EasyJet, two of the most prominent LCCs in Europe, were €523 million and €474 million accordingly. Apart from such massive profits, the rate of growth these enterprises have managed to achieve is truly remarkable. Ryanair is the pioneer of a successful low-cost airline model and now has a 30 percent market share. While the company certainly enjoys great profitability and a dominant market position, it faces the risk of caving in because of EasyJet, which now has a market share of 20 percent. EasyJet is a smaller LCC, which is less profitable, yet more attractive to shareholders. Data demonstrates €10,000 invested in EasyJet in 2000 now amounts to €62,510, which is a far larger figure than €33,742 in the case of Ryanair. Thus, it is apparent EasyJet generates more value for the shareholders.

In regards to the carriers’ strategies, they are rather similar as they both utilize the low-cost model. Ryanair and EasyJet target the same customer segment with relatively high price sensitivity and no regard for additional comfort during flights. Both carriers offer frequent flights with no layovers, flying passengers point to point, which saves a lot on transferring baggage. The strategies of both airlines are to cut costs as much as possible by reducing staffing needs and excluding food or beverage options during flights. Not offering food during a 3-hour flight seems reasonable to passengers, yet saves the carriers much money since they do not have to spend on the food itself as well as cleaning afterward. In addition, both EasyJet and Ryanair fly only one or two types of planes. For Ryanair, the aircraft of choice is Boeing 737, whereas, for EasyJet, Airbus 320 and Airbus 319 are the top choices. Having all the planes be the same ensures that the carriers cut costs on maintenance and staff training. Furthermore, both airlines are notorious for cost reductions in terms of inflight merchandise, referrals, insurance, and baggage.

Despite all the aforementioned similarities, the strategies of Ryanair and EasyJet have differences as well. Firstly, EasyJet aims to cater to other customer segments as well, individuals with lower price sensitivity and a higher need for comfort. In order to target them, the carrier offers the features Ryanair seems to be neglectful of, including assigned seating, additional legroom, and in-advance seat bookings. Secondly, EasyJet chooses to and from primary airports, whereas Ryanair sticks to secondary airports. While this way Ryanair cuts costs, EasyJet provides passengers with an opportunity for flights to and from well-connected airports with a great infrastructure that are usually situated not far from major cities. Thirdly, EasyJet adopts a differentiation strategy by focusing on the quality of its customer service. In contrast to Ryanair, EasyJet invests financial resources in training its staff to be as friendly and helpful as possible. Such a strategy seems to be extremely effective as EasyJet now flies out more than 65.3 million passengers. All in all, it is evident that EasyJet attempts to move a bit closer to the FSC model while still offering the passengers the benefits of the low-cost one.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2023, March 7). Ryanair and EasyJet Firms' Strategies. https://ivypanda.com/essays/ryanair-and-easyjet-firms-strategies/

Work Cited

"Ryanair and EasyJet Firms' Strategies." IvyPanda, 7 Mar. 2023, ivypanda.com/essays/ryanair-and-easyjet-firms-strategies/.

References

IvyPanda. (2023) 'Ryanair and EasyJet Firms' Strategies'. 7 March.

References

IvyPanda. 2023. "Ryanair and EasyJet Firms' Strategies." March 7, 2023. https://ivypanda.com/essays/ryanair-and-easyjet-firms-strategies/.

1. IvyPanda. "Ryanair and EasyJet Firms' Strategies." March 7, 2023. https://ivypanda.com/essays/ryanair-and-easyjet-firms-strategies/.


Bibliography


IvyPanda. "Ryanair and EasyJet Firms' Strategies." March 7, 2023. https://ivypanda.com/essays/ryanair-and-easyjet-firms-strategies/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1