1. Ancillary Revenue Growth As a Business Strategy At RYANAIR

3. Ancillary Revenue Strategy at RYANAIR

4. Side-effects on Brand Perception

7. Conversion of cost centres into revenue sources

8. Customer left with a selection of paid-for add-ons

9. Mutual benefits reassured

11. Ancillary Revenue Growth cont’d

12. Ancillary Revenue – Industry Benchmarks

13. How do they do that?

15. basic low fare only for the few with zero requirements

16. optional add-ons at above-average prices

17. particular understanding of “optional”

21. Car rental featured is heavily merchandised

23. in-flight catalogue

24. cabin addressing system used for advertisement

25. embrace the whole flight duration

26. cabin crew pay is tied to sales levels

28. distribution of travel-related services:

29. accommodation – i.e. booking.com

30. travel insurance

31. bus & rail tickets

32. cruises (Costa Cruises)

33. car rental

34. branded VISA credit cards

35. merchandise:

36. gift vouchers

37. charity calendar

40. 50% rise in fees in 2009

42. Table of Fees December 2009 Table of Fees December 2009

45. over 20% of total revenue

46. decided about an in-plus operational profit

47. max reliance on ancillary revenues

48. possible only in growth markets

49. unsustainable in recession when discretionary spending decreases

50. risky when main competitive strength is price

51. lack of customer trust hard to balance off

52. legal issues might affect current fees policy

54. pursuit of higher RPK, not higher pax number

55. less extreme ancillary pricing

56. transparent rules

57. positive customer feedback

58. RYANAIR might want to rethink the strategy: LEGAL TRANSPARENT JUST

59. THANK YOU FOR YOUR ATTENTION Q & A