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Easy Jet and Ryanair; Pricing Strategies, Flying High with Low Prices

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Submitted By jessgay
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Easy Jet and Ryanair; pricing strategies
Flying high with low prices

Introduction

Easy jet and Ryanair and the two largest low cost airlines in Europe, they dominate the industry.
They introduce low prices to entice customers; the earlier the customer’s book, the cheaper the price.
By introducing these prices, Easy Jet and Ryanair have forced other airlines such as British Airways and Lufthansa to lower their prices.

Both airlines have copied the American ‘South West airlines’ business model and introduced it to Europe.

Easy Jet and Ryanair are able to provide the low prices by maintaining low costs.
They cut costs in areas such as administration. With the online booking system, this saves them thousands of pounds every year.
While cutting costs, the service given on board flights is not as good as the superior companies such as British Airways and Virgin Atlantic. It doesn’t have to be, as customers know that with the low prices comes low customer service. And for the cheap prices customers pay to fly with Easy Jet and Ryanair, they don’t mind.

Ryanair

Ryanair is the leading low cost airline in Europe. Founded in 1985 by the Ryan family they began with one flight and one aircraft flying between Waterford and Gatwick airport. Shortly after, they began flying regularly between Dublin airport and London Stanstead, competing with British Airways.
‘Carrying fewer than 700,000 passengers annually in its early years, the figures grew to 21.4 million years in 2003.‘ In accordance with the airline, Ryanair now provide a system to finding and booking hotels called ‘ryanairhotels.com’ with their motto being ‘fly cheaper – sleep cheaper’, something similar to ‘confused.com’ the car insurance assistant website. This website is available to all the countries in Europe in which Ryanair flies.

Easy jet

Easy Jet is the UK’s largest airline,…...

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