Ryanair: Strategic Management, Business Policy, and Key Challenges

This report provides a strategic analysis of Ryanair, focusing on its background, revenue highlights, and key management issues. It identifies three main challenges: lack of additional services and customer care, limited service variety and quality, and restricted destination options. The report recommends skill development programs, improved communication practices, a focus on building valuable customer relationships, service innovation, and investment in new destinations, particularly in Asian countries like India. Additionally, it suggests improving the user-friendliness of the company's website and mobile application to enhance customer engagement and satisfaction. The analysis is supported by references to Ryanair's annual reports and other relevant sources.

HOSPITALITY AND TOURISM
MANAGEMENT
Organisation: RYANAIR

About the Ryanair
Background:
• Established in 1984
• Headquartered in Swords, Dublin, Ireland
• Founder of the organisation: Tony Ryan, Liam
Lonergan, Christopher Ryan
• Parent organisation: Ryanair Holdings
• Network: 200 destinations in 33 countries
• 2000 daily flights
• 87 bases
• The organisation has a fleet of over 400 Boeing 737 aircraft
• Present CEO: Michael O'Leary

Further information about the Ryanair
• The organisation is popular for being on time
• Around 13,000 professionals work for the excellent
services offered by the organisation
• Ryanair introduced 10 new bases in the Fiscal year
2017
• Expected traffic till March 2018 is 130m customers
• Launch of a charter airline (Theguardian.com 2017)

Revenue highlights of Ryanair
Figure: Financial Highlights of Ryanair
Source:(Investor. ryanair.com.2017)

Revenue highlights of Ryanair
Figure: Ryanair revenue of
FY2017

Highlights of the company in 2017
• Traffic increased from13 to 120m as 94% load factor
escalated
• the price of the tickets reduced to 13% to €41
• Reduction of unit cost by 11 percent
• Year 3 of our Always Getting Better (“AGB”) program
was delivered and Year 4 announced
• Ryanair introduced 206 new routes and released 10 new
bases
• The company returned €1bn to shareholders via share
buybacks

Management Issue 1:
Though the organisation have skilled
professionals looking after the operations
of the business, this is a clear lack of
additional services and customer care.
In September 2017, the organisation
faced a massive backlash due to staffing
crisis (Simon Calder 2017)

Recommendation 1
• Skill development and training programs
• Imposing of proper management

Recommendation 1
Development of communication practices
among the organisation.
Striving to improve the work environment
and the working conditions .

Management Issue 2
Unlike other airline services there are many
facilities which are absent with Ryanair, though the
price is low, the company must strive to improve the
service variety and quality.
The focus of the company is on expansion and
profitability instead of building a valuable relationship
with the customer

Recommendation 2
The company should set one of the objective of the
organisation to build valuable relation with the
customers.
The customer care services should be improved.
Some complimentary services should be
introduced in order to keep the customers engaged .

Recommendation 2
The organisation should
channelize the resource towards
service innovation and development .