Ryanair Business Model | Business Model Navigator

Overview:

Ryanair DAC is an Irish low-cost airline founded in 1984, headquartered in Swords, Dublin, Ireland, with its primary operational bases at Dublin and London Stansted airports. In 2016, Ryanair was the largest European airline by scheduled passengers flown, and carried more international passengers than any other airline. Ryanair operates more than 400 Boeing 737-800 aircraft, with a single 737-700 used primarily as a charter aircraft, but also as a backup and for pilot training. The airline has been characterised by its rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model. Ryanair's route network serves 37 countries in Europe, Africa (Morocco), and the Middle East (Israel and Jordan).

Industries:

Transportation

Airlines

Similar firms (based on pattern co-occurrence):

2 shared patterns

3 shared patterns

2 shared patterns

Business Model Patterns:

Add-on

How they do it: With Ryanair, a standard airfare might be advertised to a customer for as low as $50. But the base fare is complemented with a host of add-on offerings. Reserving a seat will be charged to the customer for $16. Customers checking a bag will face a $25 surcharge. From travellers who forget to print the boarding pass at home, $95 is collected at the airport before boarding. These add-on services amount to roughly one quarter of Ryanairs revenue.

Direct Selling

How they do it: Customers are able to book flight fares directly at the official Ryanair website. The website was launched in 2000, and within a year accounted for three quarters of total sales. Today, 99% of sales occur on the Ryanair website.

Hidden Revenue

How they do it: The advertising model, popular with industries such as media (radio, TV, websites), was adopted by Ryanair. If there is a flat surface anywhere on a Ryanair plane, chances are good that they have placed an advertisement on it. Advertisers can also place ads on the booking website, Ryanair.com.

No Frills

How they do it: Due to the success of its low-cost business model, Ryanair ist the largest European airline today. It provides only the most basic services related to the airline fare and transportation itself. Their new fleet of airlines feature non-reclining seats, no seat-back pockets, safety cards stuck on the back of the seats, and life jackets stowed overhead rather than under the seat. This allows the airline to save on aircraft costs and enables faster cleaning and security checks during the short turnaround times.

Self-service

How they do it: Initially, Ryanair did not offer customers the possibility of contacting them by email or webform, only through a premium rate phone line, by fax or by post. Also, customers are directed to self-check-in terminals or online check-in – if they opt to check in at the airport, they are liable to a $45 surcharge. On the flight, no food and beverages are distributed, they must be purchased on demand, further reducing customer service and customer interaction expenses.

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