USA: +1 725-224-8795 
Sign in
Mini-case On Ryanair Limited – IS RYANAIR’S WEBSITE ITS STRATEGIC MARKETING TOOL?
Headquartered in Dublin, Ireland, Ryanair was set up by the Ryan family and began operating in 1985 with a share capital of £1 only, and a staff of 25 individuals. According to the International Air Transport Association (IATA) report in 2013, the low-cost airline, with its main bases at Dublin and London Stansted Airports, was considered the largest European airline in terms of domestic, international, and scheduled passenger figures and passenger-kilometers. The airline has 1,600 flights scheduled daily across 185 destinations, with 300 Boeing 737-800 jets in operation.
The airline is growing rapidly, serving 35 countries in Africa (Morocco), and the Middle East (Cyprus and Israel), and Europe. In 2014, the airline saw an increase in traffic by 11 percent. The operations outgrew its previous office space at the Dublin Airport, and in April, 2014, Ryanair’s new €20m Dublin Head Office in Airside Business Park, which was around 100,000 square feet, was officially opened. In the same year, Ryanair launched its “Always Getting Better” program to address things that customers did not appreciate. It also agreed to purchase up to 200 Boeing 737 Max 8s (100 confirmed and 100 options) for over $22 billion. In December 2015, the airline opened an operating base at Milan Malpensa Airport.
The key trends for Ryanair over recent years are shown below (year ending March, 2015):
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Total Operating Revenue (€m) | 2998.1 | 3629.5 | 4390.2 | 4884.0 | 5036.7 | 5654.0 |
| Operating Income (€m) | 402.1 | 488.2 | 683.2 | 718.2 | 658.6 | 1042.9 |
| Profit before taxation (€m) | 341.0 | 420.9 | 633.0 | 650.9 | 591.4 | 982.4 |
| Profit after taxation (€m) | 305.3 | 374.6 | 560.4 | 569.3 | 522.8 | 866.7 |
Source: Based on data from Ryanair FY 2015 Results, March 2015, © RyanAir, www.investor.ryanair.com.
In December 2014, Ryanair announced that it would inaugurate its 72nd base in 2015 in the Azores. In 2016, Ryanair will work towards developing a low-cost airline named VivaCan. The airline service has projected to have provided service to 160 million passengers in 2024.
Questions 1. Visit Ryanair’s website. Compare its website with one of its competitor, like Jet Air, and give recommendations on how Ryanair can utilize its website as a strategic marketing tool to enhance its competitiveness. How can it improve the website to function more effectively and enhance the company’s efficiency in serving its potential customers?
2. Can you identify any strengths and weaknesses of Ryanair based on information provided in the case and the data given in the table above?
***This is the entire question. There is no further detail aside from what I have entered above.
Expert Answer
Ryanair should use its website for the following purposes – direct web site sales, generation of leads and opt-in option for the customers to receive more information regarding the airlines, its offers and its introduction of new routes (if any).
Being a low cost airline it is imperative for Ryanair to maximize its ancillary revenue. The company can strategically use its website to increase the share of its ancillary revenue. The company can use its website to market the different type of meal options that it provides. It can also effectively market its seating options where certain seats are sold at a premium.
By providing the above mentioned information to the customers the airline’s website will ensure enhanced efficiency as more information in the hands of customers will translate into more business for the company.
2. Strengths – Ryanair is the largest European airline in terms of domestic, international, and scheduled passenger figures and passenger-kilometers. Its large size helps the company take advantage of economies of scale. Another important strength of the company is that it has been growing its margins (operating margin as well as net income margin over the years). Operating margin = Operating income/total operating revenue and net income margin = profit after taxation/total operating revenue.
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Operating margin | 13.41% | 13.45% | 15.56% | 14.71% | 13.08% | 18.45% |
| Net income margin | 10.18% | 10.32% | 12.76% | 11.66% | 10.38% | 15.33% |
In terms of weakness the company’s service is still not at par with that of competition. This is the reason they have launched its ‘Always getting better’ initiative to address those areas which are not appreciated by its customers.
