Ryanair, the low cost carrier has been making steady progress against its rivals, but in its effort to cut costs, the customers are faced with additional charges. In a recent move, the airline has made online check-in mandatory thereby taxing the passengers with £5 per sector…
However, before the airline looks further in different areas where services can be charged for, Ryanair needs to know the customer response to this strategy of charging for online check-ins.
This paper compares the strategies of Ryanair with Southwest Airlines, and has been reviewed merely to impress that Ryanair does not carry an impressive customer service record ((where is the reference here). The reference is the same as mentioned HRIMD, 2007.
This article in the Airline Business, highlights the opinions of several low cost carriers across the globe. The low cost carriers thrive on the cost consciousness business passengers as people look for cheaper alternatives. Passengers become price sensitive, according to Ryanair while customer sentiment is focused on value, according to JetBlue. ( Where is the reference about JetBlue – Dunn, 2009).
According to a study carried out by Collinson Latitude, 65% of the world’s airlines expect to generate revenue from extra charges such as baggage and check-in fees as such ancillary revenue has become a key growth for airlines (Air Scoop, 2009).
Ryanair admits that ancillary revenues made up 20% of its revenues in 2008 (Deprez, 2009) while British Airways and Virgin Atlantic have also made changes to their baggage polices (Bachelor, 2009). (can you please duple check the reference). There is nothing wrong with the references..you have to learn how they are done..
Literature from internet sources has been reviewed as they give the current views. ( can you tell me please again from where you got the" Milmo") Milmo’s claims that rivals have warned Ryanair that too many add-on charges could turn away the passengers does not appear to be true because most airlines have been playing with ancillary revenue generation and the Ryanair’s bargaining power seems to be growing. The literature review suggests that Ryanair is not asking for anything exceptional by way of check-in charges. Most low cost carriers ...
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