Hospitality and Tourism Management: Ryanair's Environment Report

This report provides a comprehensive analysis of Ryanair's business environment within the hospitality and tourism management context. It begins by examining the microenvironment through the lens of Porter's Five Forces, evaluating the bargaining power of suppliers and buyers, the threat of new entrants and substitutes, and competitive rivalry. The report then delves into the macroenvironment, utilizing a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors impacting Ryanair. Finally, a SWOT analysis synthesizes the airline's strengths, weaknesses, opportunities, and threats. The analysis considers factors such as fluctuating costs, customer price sensitivity, competition from other airlines, and external factors like economic recession and environmental regulations. The report concludes by highlighting the importance of strategic marketing and efficient operations in achieving business success in the competitive airline industry.

Running head: HOSPITALITY AND TOURISM MANAGEMENT
Internal and external environment analysis of Ryanair
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Table of contents
Introduction......................................................................................................................................2
Micro environment of Ryanair........................................................................................................2
Macro environment of Ryanair........................................................................................................4
SWOT Analysis of Ryanair.............................................................................................................5
Conclusion.......................................................................................................................................7
References and Bibliography...........................................................................................................8

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Introduction
Hospitality is a vast concept, which includes various aspects. However, the main aspect
here is the adoption of courteous approach towards the fulfillment of the needs, demands and
requirements of the customers. One of the primary sectors of hospitality is tourism and
management of the tourism services enhances the intensity of the term hospitality (Mok, Sparks
and Kadampully 2013). This assignment peeks into the micro and macro environment of an
airline company, Ryanair in terms of their hospitality and tourism management.
Micro environment of Ryanair
Microenvironment of any company or organization relates to SWOT analysis or Porter’s
Five Forces. SWOT analysis would be dealt separately in the third section. As a matter of
specification, this section would deal with the impact of Porter’s Five Forces on the business
activities of Ryanair (Ryanair.com 2017). The following are the forces, which acts as an obstacle
in the efficient execution of Ryanair’s business activities:
Bargaining Power of the Suppliers
Traditionally, Boeing is one of the oldest suppliers of Ryanair. However, according to the
annual reports, the management of Ryanair has expressed interest to indulge in deals with
Comac’s C919. The fluctuating cost has been difficult for the suppliers in terms of completing
the orders within the deadlines. However, the presence of skilled and efficient pilots has nullified
the intensity of the fluctuating prices of the spare parts of the aircrafts (Ryanair.com 2017).
Bargaining in this sense relates with making effective use of the rationality to stabilize the
financial parameter.

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Bargaining Power of the Buyers
The fluctuating prices of the aircrafts have enriched the buying power and behavior of the
As a matter of specification, the fluctuation in the prices of the spare parts of the aircrafts have
added vulnerability to the position of Ryanair within the competitive ambience of Australia. This
has compelled the customers to switch over to the other airline brands. Sensitivity to the prices is
one of essential aspects of the customers of Ryanair. This sensitivity can be considered as one of
the crucial components of the buying behavior of the customers.
Threat of the new entrants
In case of Ryanair, the threat of new entrants is low. This is because of the factors like
measurement of economies, capital requirements and access to the networking channels for the
customers (Ryanair.com 2017). Economic scale is the greatest barrier for Ryanair due to the
inverse proportion between the quantity of the spare parts of the aircrafts and the manufacturing
cost of each unit. On the other hand, missing physical facilities, lack of access to the marketing
activities among others, are also the barriers for Ryanair in terms of securing their position in the
Australian market.
Threat of substitutes
In terms of Ryanair, the substitutes are railways, sea transport, cars and others. High cost
of the bus services is really a threat for Ryanair, especially the fare of the tickets. However, the

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objective of “low fare” is a major source of competitive advantage, if dealt strategically by the
personnel (Ryanair.com 2017).
Competitive rivalry
The plan of “low fare” in the tickets can be considered as a common strategy as the
contemporary airline brands also have planned cheap airline tickets for attracting large number
of customers. This intensifies the competition between Ryanair and Airbus 320, Express
Freighters Australia Boeing among others. Compliance with the standards and protocols of
competition policies helps the personnel of Ryanair to indulge in fair trades, deals and
transactions with the contemporary brands (Ryanair.com 2017).
Macro environment of Ryanair
Macroenvironment of any company and organization is their relation with the external
agencies. Macroenvironment includes PESTLE analysis, which would be dealt with, in detail in
this section.
Factors
Political  Harsh and orthodox regulations
 Security in various levels at airports
Economic  Recession
 Fluctuation in prices of the spare parts of aircrafts
 High exchange and tax rates
 Increase in oil prices
Social  Decrease in the number of people going for vacations

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 Altering lifestyle of the people
Technological  Research and development on renewable energy production
 Adoption of latest and modern equipments for producing aircrafts with
innovative designs
Legal  Laws and directive related to enhancing the protection of the customers
in airports
Environmental  Reduction of carbon emission levels
 Controlling noise pollution
 Global warming
Table 1: PESTLE analysis of Ryanair
Harsh and orthodox rules and regulations acts as an obstacle in the marketing activities of
Ryanair. However, the plans of enhancing the protection of the passengers in airport are one of
the positive points, which enhance the reputation and the brand image. Along with this,
fluctuation prices of the raw materials such as oil and the spare parts of the aircrafts have added
instabilities to the financial parameter of Ryanair (Ryanair.com 2017). Apart from this, high
exchange rates and tax rates have adversely affected the import and export activities. In this
sense, the recession has made the people scared, due to which they are preferring closer distances
for enjoying the vacations. Firmness in creating the plans for developing laws and directives for
enhancing the security of passengers at airport aligns with the true essence of hospitality in case
of Ryanair personnel. Consciousness towards reducing the noise levels and reducing the carbon
emission reflects the approach of the personnel towards preserving the ecological diversity
(Ryanair.com 2017).

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SWOT Analysis of Ryanair
Strengths  Strategic marketing
 Skilled and efficient professionals
Weakness  Absence of long distance flight services
 Cheap cost of the old aircrafts
 Limited long distance flight services
 Absence of quality customer services
Opportunities  Development of budget airlines
 Flight services to USA
 Plans for families
 Websites
Threats  Competition from Easyjet, British
Airways, Air France
Table 2: SWOT analysis of Ryanair
The presence of skilled and efficient professionals results in the systematic execution of
the business activities. However, absence of quality customer services like the frills, nullifies the
plan of the “low fare” in the airline tickets. Along with this, the cheap cost of the old aircrafts
unnecessarily adds to the stock of resources of the airline company, Ryanair (Ryanair.com 2017).
Viewing it from the other perspective, the development of the budget airline validates the flight
services to USA and Europe planned by the personnel. Herein lays the appropriateness of
strategic marketing, which enables the personnel to provide quality flight services to the families.
Typical example in this direction is uploading every information and details in the website.

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Negligence in following the standards and protocols of the competitive policies would make the
position of Ryanair vulnerable under the competitive ambience of Australian market
(Ryanair.com 2017).
Conclusion
This assignment emerges successful in providing an insight into the business activities of
an airline company, Ryanair. The micro and macro environment analysis enlivens the
perspectives, thoughts, ideas and concepts of businesspersons regarding the effective execution
of marketing for attracting large number of customers. Rationality in the execution of marketing
activities helps in penetrating into foreign markets, expanding the scope and arena of Ryanair
business.

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References and Bibliography
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism.
Routledge.
Brotherton, B., 2015. Researching hospitality and tourism. Sage.
Denizci Guillet, B., Denizci Guillet, B., Mohammed, I. and Mohammed, I., 2015. Revenue
management research in hospitality and tourism: A critical review of current literature and
suggestions for future research. International Journal of Contemporary Hospitality
Management, 27(4), pp.526-560.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary Hospitality
Management, 26(5), pp.727-750.
Leung, D., Law, R., Van Hoof, H. and Buhalis, D., 2013. Social media in tourism and
hospitality: A literature review. Journal of Travel & Tourism Marketing, 30(1-2), pp.3-22.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality
and tourism. Annals of Tourism Research, 48, pp.96-120.
Ryanair.com (2017). About us. Available at: https://www.ryanair.com/gb/en/ [Accessed on 27th
Dec 2017]

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Waligo, V.M., Clarke, J. and Hawkins, R., 2013. Implementing sustainable tourism: A multi-
stakeholder involvement management framework. Tourism management, 36, pp.342-353.