What Are the Important Demand Variables for Ryanair?

Ryanair, an Irish-based airline, offers cheap flights around Europe.

Ryanair is a low-cost, Irish airline based at Dublin Airport. Since appointing Michael O'Leary as chief executive in 1994, the company has grown rapidly with operations throughout Europe.

Dates

Ryanair is popular at weekends and bank holiday, as people can easily get away to somewhere at an affordable price. Demand is lower during the week as many business customers opt for other airlines.

Price competition

Ryanair promotes itself as the cheapest available on the market; it is the main reason people fly with them. If another airline also offers a similar price for the same route, Ryanair often loses business as people are inclined to use the other airline which may offer better service.

Economy

Chief executive Michael O'Leary, explains that an economic recession is good for Ryanair, as they can survive it better than airlines with higher pricing models. Various airlines throughout economic downturn that began in 2008, allowing Ryanair to gain customers. Although overall demand decreases, their business model allows them to eliminate fewer routes and adapt far quicker than their competition.

References

• Ryanair: About Us
• The Telegraph: Ryanair Expects to Benefit as Recession Deepens
• Reuters: Ryanair's Lean, Mean Strategy a Recession Winner