So - we bet that the media will be all over the latest news that seems to come straight out of the Onion:
Ryanair is considering charging passengers to use the toilet on its aircraft. According to the Belfast Telegraph - The airline's CEO, Michael O'Leary, is touting the idea of putting a coin slot on the toilet door as a means of raising "discretionary revenue".
OK - we know that's pretty mind-boggling - but we think this is going to be WAAYY overblown. Let's take a look at what O'Leary actually said, as reported by Today in the Sky:
"One thing we have looked at in the past and are looking at again is the possibility of maybe putting a coin slot on the toilet door so that people might actually have to spend a pound (about $1.43)... in future."
Well, that outrageous statement is actually hedged pretty well. Look - we know we joke about how far airlines will go to make an extra dollar (we even have a tag for "25 cents to use the bathroom") - but we just can't get worked up about it that much. We just don't think it'll happen.
However, if it does happen - FMV will be the first to test how water resistant their air sickness bags are...
Showing posts with label Ryanair. Show all posts
Showing posts with label Ryanair. Show all posts
Friday, February 27, 2009
Thursday, March 27, 2008
Ryanair: Apparently Not-So-Low LCC
Hey, it turns out that high fuel prices really hurt airlines' profits. In fact, especially if you think you can give away tickets and make it up on ancillary revenues, you really need to cut costs. At least that is the current state of affairs at Ryanair, who hopes to cut $621-Million in annual costs in various areas, including labor, due to extraordinary high fuel costs.
Yes, Ryanair also hopes to boost the top line through higher baggage and credit card fees. But we have to say, when the poster child of LCC's is talking about a need to tighten the belt, this is not going to be a good year for airlines. You can save yourself a call to Jamie Baker, Robert Mann, or Terry Trippler. You just read it in The FMV.
Yes, Ryanair also hopes to boost the top line through higher baggage and credit card fees. But we have to say, when the poster child of LCC's is talking about a need to tighten the belt, this is not going to be a good year for airlines. You can save yourself a call to Jamie Baker, Robert Mann, or Terry Trippler. You just read it in The FMV.
Friday, February 15, 2008
Ryanair: Ouch.
There are a lot of things to find pretty entertaining and arguably admirable about Ryanair. For example, when they issued a press release calling travel agents "deadwood" and "rip-off middlemen". We think it's pretty awesome that they've been so aggressive with their direct distribution strategy. But - It's not without risk.
The downside of their position becomes startingly clear with the news today that Ryanair will have to go without selling tickets for 73 hours later this month, while they migrate their booking platform in order to comply with new UK requirements regarding the proper presentation of fares, taxes, fees, etc. to consumers. We're pretty sure that 73 hours is more than 3 days, even across the Atlantic. That's almost 1% of their selling opportunity for a typical year. Fortunately, the migration falls during leap year!
We've heard some pretty astounding anecdotes of consumer deception in their marketing, so no real sympathy that they need to take this hit. However, there had to be some pretty dour planning meetings as the reality of the migration details became clear. No worries, they'll make it up with a 73 hour 1 Euro fare sale (some restrictions apply, fare not valid on most days ending in "y", seating additional, passengers subject to cabin door use fee).
The downside of their position becomes startingly clear with the news today that Ryanair will have to go without selling tickets for 73 hours later this month, while they migrate their booking platform in order to comply with new UK requirements regarding the proper presentation of fares, taxes, fees, etc. to consumers. We're pretty sure that 73 hours is more than 3 days, even across the Atlantic. That's almost 1% of their selling opportunity for a typical year. Fortunately, the migration falls during leap year!
We've heard some pretty astounding anecdotes of consumer deception in their marketing, so no real sympathy that they need to take this hit. However, there had to be some pretty dour planning meetings as the reality of the migration details became clear. No worries, they'll make it up with a 73 hour 1 Euro fare sale (some restrictions apply, fare not valid on most days ending in "y", seating additional, passengers subject to cabin door use fee).
Monday, April 16, 2007
The LCC's are coming!
FMV loves a sweet low fare as much as anyone, especially this close to tax day. But last week's news that Ryanair and others plan to launch transatlantic service with fares as low as $12? Holy frijoles!
Who would have thought that one could cross the pond for a fraction of their passport fee? Some quick googling by FMV reveals that a $12 fare is in fact an order of magnitude less than the actual fuel cost a carrier must burn per passenger for that mission. What can this mean? Welcome to the wonderful world of revenue vs. fare. Breathe in and savor the subtle nuance.
You can rest assured that carriers will collect much more revenue than the $12 fare. Much of it is unavoidable, courtesy of various governments: taxes, PFC's, etc. Some of it is avoidable - but they do it anyways (like the "Wheelchair Surcharge" they charged ALL customers). However, FMV sees some fuel surcharges and other unavoidable "service fees" on the horizon as well. Think Ticketmaster fees on steroids. They've already confirmed optional value-added services fees - food, drink, duty-free, entertainment - so you can be sure others are in the works (e.g. baggage handling, seat assignment, etc.).
Not to be complete buzzkills, just as Megabus "gives away" $1 bus rides to select passengers, so could Ryanair. But not for everyone on the bus. Imagine the Travelzoo traffic when that Hot Deal is posted! One thing's for sure, new competition will certainly introduce some interesting new sales and marketing strategies. And dare we suggest, with launch markets like Islip and Baltimore, "You are now free to move about the planet?"
Who would have thought that one could cross the pond for a fraction of their passport fee? Some quick googling by FMV reveals that a $12 fare is in fact an order of magnitude less than the actual fuel cost a carrier must burn per passenger for that mission. What can this mean? Welcome to the wonderful world of revenue vs. fare. Breathe in and savor the subtle nuance.
You can rest assured that carriers will collect much more revenue than the $12 fare. Much of it is unavoidable, courtesy of various governments: taxes, PFC's, etc. Some of it is avoidable - but they do it anyways (like the "Wheelchair Surcharge" they charged ALL customers). However, FMV sees some fuel surcharges and other unavoidable "service fees" on the horizon as well. Think Ticketmaster fees on steroids. They've already confirmed optional value-added services fees - food, drink, duty-free, entertainment - so you can be sure others are in the works (e.g. baggage handling, seat assignment, etc.).
Not to be complete buzzkills, just as Megabus "gives away" $1 bus rides to select passengers, so could Ryanair. But not for everyone on the bus. Imagine the Travelzoo traffic when that Hot Deal is posted! One thing's for sure, new competition will certainly introduce some interesting new sales and marketing strategies. And dare we suggest, with launch markets like Islip and Baltimore, "You are now free to move about the planet?"
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