CEO of Ryanair Michael O’leary soon realised it was time to invest in new aircraft to improve the customer experience.Ryanair’s competition was catching up so they decided to somewhat abandon the no-frills strategy that had made them Europe's leading low cost airline they needed to regain the trust of the passengers in their effort to do so they created a new user friendly website that offered package holidays they also launched a new app for smartphone users they abolished their rule of having only one carry on bag. These changes have been of benefit to the company.After our research we can say that Ryanair is an expert in the understanding of benefit
There are low switching costs between firms, because customers always look for the best flight possible. They need to know all the flight details regarding timing and safety. There is some brand loyalty and each company has a niche. Lufthansa’s main target audience is frequent international business class travelers. They need certain amenities (i.e.
The availability of cheaper tickets stimulated new demand for air services and since their launch the low cost carriers have expanded tremendously their market share. Their successful philosophy has been also recognized and implemented in other industries such as rail and coach operators, hotels or car rental providers (Budd & Ison, 2014). 3.2. Characteristics of low cost carriers Even though a universally accepted definition of low cost carriers doesn´t exist, they generally can be distinguished by the other airlines because of the fact that they have a common cost-reduction strategy on these elements: • Single aircraft fleet: using only one type of aircraft they can reduce the costs of maintenance, training, spare parts and also negotiate discounts with the
• Dynamic Pricing o With a dynamic fare structure aimed at stimulating more and more travelers to take-up air travel through offering affordable prices, LCCs like SpiceJet offers fares that are significantly lower than most airlines. On the other hand, premium carriers like Jet Airlines, offer comfort, professionalism and a customer friendly atmosphere. • Focus on Safety o All airlines invests heavily in safety, impeccable maintenance and a high level of expertise. Experienced pilots, engineers and maintenance crew go through rigorous training and are hand-picked for their technical knowledge and expertise so that there is no cut-back in this key area of modern day flying. They also offer travel insurance services for customers via TATA AIG for various unforeseen circumstances.
Southwest uses a triple bottom line approach that takes into account “carrier 's performance and productivity, the importance of its people and the communities it serves, and its commitment to efficiency and the planet” (Southwest 2014). This approach has allowed them to be profitable for 41 consecutive years. Beginning in 1971 with its first flights Southwest started a new period of affordability in air travel that has even been described by the U.S. Department of Transportation as “The Southwest Effect” (Southwest 2014). Southwest makes the lowering of fares and passenger fees a very high importance. They allow passengers to check their bags for free and even change flights without a fee, a small difference in might apply.
TACTICAL MESSAGES - The leadership at WIZZ is experienced in airline operations and focused on providing a superior customer experience while keeping costs – and thus fares – low. Greater opportunity for business success. - WIZZ provides low fares and customer-focused value for customers across Europe and the Middle East – greater opportunity for more people to expand their world and experience, reconnect with family or start a new life. - WIZZ employees love what they do. Greater opportunity for personal growth and self-satisfaction in life.
The organization created working technique as an arrangement of vital choices fixated on diminishing working expenses and counterbalancing the profitability impediments of short-pull, point-to-point flying. To start with, the organization concentrates on brisk flying machine turnaround at the door, minimizing the time on the ground, the time when aircraft 's most unreasonable resources, its planes, are not used. Turning planes around rapidly at the entryway results in planes having the capacity to log more hours in the air , expanding their use. This methodology, be that as it may, has kept them out of some markets where such a fast turnaround is unrealistic. Second, Southwest uses an institutionalized armada of Boeing 737 planes, which diminishes upkeep and pilot preparing costs.
Tim Pigsley the director of operations for RFS quoted that Disney has the best customer service and have proven to be able to satisfy their many customers around the world, Southwest Airlines have special approach in fun and flying, and TGIF has super low employee turnover and high employee loyalty. It would be a great thing if Ramada could capture these things in order to increase and improve their customer satisfaction level. Secondary data are data gathered and recorded by someone else prior to and for a purpose other than the current project (Griffin). Since secondary data are already collected by someone else (meant that they did all the researches), it is more cost effective, since you do not need to go directly.Thus it plays as the cost effective role and role model (Ramada could look at their practices and apply it to their own
AirAsia with its ordinary symbol but strong brand, “Now Everyone Can Fly” nowadays has been a phenomena in the airline industry. They are one of the airline companies who are more focused with the strategy; how to reduce inefficiency and make the cheapest possible fare in the world. Currently AirAsia is more focused on reducing the fare to compete with similar organizations in the industry. They believe that they can grow in the airline business if they can control their cost. It must be efficient and reliable.
The Virgin Australia has strong brand value and image in business world because of its innovative ideas and creative thinking. The Virgin Australia operates a rapidly growing fleet primarily consists of Boeings and Airbuses. The low average fleet age helps the company to reduce maintenance cost of the aircrafts. The Virgin Australia provide cheap flights to major destinations, superior service quality, innovativeness, good flying records, punctuality and strong brand image are some of the key success factors of Virgin Australia. At Virgin Australia, the company is highly committed to creating a highly engaged and achievement orientated workforce where Virgin Australia’s vision, values and company’s customer focus drive everything we do.