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Ancillary Revenue as a Business Strategy at Ryanair
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Ancillary Revenue as a Business Strategy at Ryanair
1.
Ancillary Revenue Growth
As a Business Strategy At RYANAIR
2.
3.
Ancillary Revenue
Strategy at RYANAIR
4.
Side-effects on
Brand Perception
5.
6.
7.
Conversion of
cost centres into revenue sources
8.
Customer left
with a selection of paid-for add-ons
9.
Mutual benefits
reassured
10.
11.
Ancillary Revenue Growth
cont’d
12.
Ancillary Revenue –
Industry Benchmarks
13.
How do they
do that?
14.
15.
basic low
fare only for the few with zero requirements
16.
optional add-ons
at above-average prices
17.
particular understanding
of “optional”
18.
19.
20.
21.
Car rental
featured is heavily merchandised
22.
23.
in-flight catalogue
24.
cabin addressing
system used for advertisement
25.
embrace the
whole flight duration
26.
cabin crew
pay is tied to sales levels
27.
28.
distribution of
travel-related services:
29.
accommodation –
i.e. booking.com
30.
travel insurance
31.
bus &
rail tickets
32.
cruises (Costa
Cruises)
33.
car rental
34.
branded VISA
credit cards
35.
merchandise:
36.
gift vouchers
37.
charity calendar
38.
39.
40.
50% rise
in fees in 2009
41.
42.
Table of Fees
December 2009 Table of Fees December 2009
43.
44.
45.
over 20%
of total revenue
46.
decided about an
in-plus operational profit
47.
max reliance on
ancillary revenues
48.
possible only in
growth markets
49.
unsustainable in recession
when discretionary spending decreases
50.
risky when main
competitive strength is price
51.
lack of
customer trust hard to balance off
52.
legal issues might
affect current fees policy
53.
54.
pursuit of
higher RPK, not higher pax number
55.
less extreme
ancillary pricing
56.
transparent rules
57.
positive customer
feedback
58.
RYANAIR might want
to rethink the strategy: LEGAL TRANSPARENT JUST
59.
THANK YOU FOR
YOUR ATTENTION Q & A