Lessons From Ryanair: How Do Your Clients Want To Pay?

During the first three months of 2007, Ryanair boosted its profits to £93.6M (roughly $187M)—a more than 15% increase over the first quarter of 2006. That seems astronomical for an airline carrier that offers flights between European cities as low as £1 to £10. So, where does Ryanair make all its money?

Besides some of the cost-cutting techniques that have become commonplace for most carriers, including online booking and ticketless travel, Ryanair has taken its penny-pinching to a different level:

  • Forgoing air bridges: Opting for customers to walk the tarmac to their flights saves a few dollars

  • Flying to outer-lying airports: Often as far as 100km outside a major city, Ryanair has been able to achieve impressive discounts on landing fees. Some airports have even paid Ryanair for bringing additional routes.

  • Sales commissions for flight attendants: Along with traditional a-la-carte meal and drink items, Ryanair flights also offer duty free goods, scratch cards and even bingo. There is also talk about their attempts to get gambling licenses for their flights.

  • Overweight baggage charges: This is not unique to Ryanair. What is unique are their baggage weight limits; 10kg for a carry-on and 15kg for a checked bag (which carries a £5 charge, plus £5.50 per kg over 15kg).

  • Revenue sharing agreements: Ryanair takes a piece of car hires, bus transportation and hotel bookings.

  • Advertisements in and on the plane: Advertisements inside in-flight magazines are commonplace, but Ryanair’s use of the side of their plane for advertisements is unique in the industry.

Despite their cost-cutting and their efforts to “nickel and dime” their customers, Ryanair continues to be one of the most profitable airlines in the world. They offer less and make more than most of their competitors because they have figured out how their clients prefer to pay: not one ticket price which includes the cost of many services, but incrementally for the services they actually use.

It seems to me that there are similar opportunities for service providers in industries where consumers are paying large sums of dollars for commoditized services. Can you say Redfin? Redfin has exploited a niche in the market for consumers who are willing to sacrifice service for savings.

Where do you stand? If you know your customers, how do they prefer to pay?
Subscribe to NuWire's free weekly investment newsletter:
Your information will not be shared


October 7, 2018 at 10:58 AM jacksmith said...

Thanks for sharing.I found a lot of interesting information here. A really good post, very thankful and hopeful that you will write many more posts like this one.

March 4, 2019 at 8:25 AM Richard Majece said...

Try to have a look here if you are looking for perfect essay outline. It was helpful for me and my friends

December 3, 2019 at 10:04 AM Router Login said...

Check these voice changer apps from CrunchyTricks.

February 2, 2020 at 7:15 PM Techwikies said...

Very good, I think I found the knowledge I needed. I will see and refer some information in your post. thank you Adobe Photoshop Lightroom CC App For PC

March 17, 2020 at 9:18 AM john said...

March 21, 2020 at 5:19 AM twins shakes said...

norton.com setup solves all your virus and treats related problem and you can keep all the stuffs in an array with easiness.

April 8, 2020 at 3:18 AM john lee said...

April 12, 2020 at 3:43 PM ali said...

April 17, 2020 at 1:29 AM alnabui said...

I will carefully read the issues you just shared, I find there are some places that are not very clear slope the game

May 4, 2020 at 3:44 AM kempreed192 said...

QuickBooks customer support number has a greatest value for you call and that is why people wants this number
QuickBooks support number

May 5, 2020 at 1:48 AM notresponding23 said...

The client firstly wants the result and then if the result is good they can even pay you more than the decided pay.

May 13, 2020 at 12:29 AM mike bara said...

If know are seeking for the aarp medicare advantage then you are at right place.

June 15, 2020 at 3:57 AM asksolutions01 said...

Thanks a lot for sharing this unique information of Ryanair and how we can earn through different methods.
how to replace a circuit breaker

June 27, 2020 at 5:22 AM Carol jenny said...

You talked about extremely legitimate and valid statements in your post and It truly happened some individual don't have the correct thought.
nbcsports com/activate

July 8, 2020 at 5:28 AM gaurav verma said...

In such circumstances disengage the Fire Stick power string from the divider and keeping Fire Stick shut down for a few minutes.no sound on firestick

Post a Comment


© 2010 NuWire Investor and NuWire, Inc. All Rights Reserved.