What’s Ryanair Holdings Business Model?
Ryanair Holdings plc provides low-fare passenger airline services to destinations in Europe.
What Ryanair Holdings is doing in more details?
Ryanair Holdings is Europe’s largest airline group and is the parent company of Buzz, Lauda, Malta Air & Ryanair. The carrier flies to over 225 destinations in over 35 countries. Ryanair specializes in short-haul routes between secondary and regional airports.
It operates from about 85 bases in Europe and North America. The carrier maintains a fleet of over 450 Boeing 737-800s and about 30 Airbus A320 aircraft with a further 210 new Boeing 737s on order.
Ryanair generates majority of revenue outside its home country, Ireland. Ryanair has operated as an international airline since commencing operations in 1985.
Where Ryanair Holdings is Operating?
Ryanair operates a fleet of more than 450 Boeing 737-800 aircraft and about 30 Airbus A320 aircraft. It has placed additional orders for a further 210 new Boeing 737 aircraft.
Ryanair plans for the purchases to enable it to lower fares and grow traffic. The company is comprised of four key separate airlines: Ryanair DAC, which generates over 75%; Buzz, Lauda, and Malta Air.
Overall, scheduled revenue accounts for about 65% of total sales. The remaining is from ancillary.
Where is the geographical reach of Ryanair Holdings?
Ryanair operates over 2,000 daily flights. Its flights connect to over 225 destinations in more than 35 countries. Ireland and the UK collectively account for about 40% of its overall sales.
Ryanair is headquartered in Ireland.
What is Ryanair Holdings’ Sales and Marketing Strategy?
Ryanair primarily advertises its services in national and regional media across Europe. In addition, Ryanair uses advertising, email marketing and social media.
Other marketing activities include the distribution of advertising and promotional material and cooperative advertising campaigns with other travel-related entities, including local tourist boards.
Ryanair also regularly contacts people who have registered in its database to inform them about promotions and special offers.
What is Ryanair Holdings Financial Performance?
Ryanair’s revenue dropped 81% in 2021 after four years of consistent growth. It is an overall decrease of 75% from 2017.
Total revenues decreased from ?8.5 billion in fiscal year 2020 to ?1.6 billion in fiscal year 2021 due to an 81% decrease in traffic to approximately 27.5 million, offset by a 1% increase in average fare and a 3% increase in ancillary spend per passenger.
In 2021, the company had a net loss of ?1 billion, a 256% decrease from the previous year’s net income of ?648.7 million.
The decrease was primarily attributable to a decline in traffic as European Governments imposed travel restrictions/lockdowns due to the Covid-19 pandemic.
The company’s cash for the year ended 2021 was ?2.7 billion. Operating activities used ?2.4 billion, while investing activities provided ?937 million. Financing activities provided another ?1.6 billion.
What is Ryanair Holdings Future Strategy?
Ryanair’s objective is to establish itself as Europe’s biggest scheduled passenger airline group, through continued improvements and expanded offerings of its low-fares service.
In the highly challenging current operating environment, Ryanair seeks to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. The key elements of Ryanair’s long-term strategy are:
Low-Fares. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services;
Customer Service. Ryanair’s strategy is to deliver the best customer service performance in its peer group. Ryanair delivers industry leading punctuality and fewer lost bags than its peer group in Europe;
Frequent point-to-point flights on short-haul routes. Ryanair provides frequent point-to-point service on short-haul routes. In fiscal year 2021, Ryanair flew an average route length of approximately 776 miles and an average flight duration of approximately 1.88 hours.
Short-haul routes allow Ryanair to offer its low fares and frequent service, while eliminating the need to provide unnecessary “frills”, like free in-flight meals and movies, otherwise expected by customers on longer flights; and
Low Operating Costs. Ryanair strives to reduce or control four of the primary expenses involved in running a major scheduled airline group: (i) aircraft equipment and finance costs; (ii) personnel costs; (iii) customer service costs; and (iv) airport access and handling costs.
What is Ryanair Holdings’ Background?
Tony Ryan and his sons Declan and Cathal founded Ryanair in 1985.