Ryanair is the low cost airline in Europe. Over the years it has been a successful brand and a successful business.Michael O'Leary has a business model with a central focus on cost reduction. In around 20 years he has taken Ryanair from a single plane company to become the largest airline in Europe. The business simply has lower costs and those costs are passed on to their passengers in the form of low fares.
There are lots of factors which contributes to his cost reduction models. Ryanair does not use travel agents so it does not pay agency commissions. It uses direct marketing techniques to extend products and services to customers, which in turn reduces costs. Online booking saves them 15-20% on agency fees.
Ryanair uses Secondary Airports. It is cheaper to from a secondary airport than from the primary/busier airport. Also Since it is less busy aircraft can be turned around very quickly. Many of Ryanair’s destination airports are secondary. For example if somebody wants to go Copenhagen(Denmark) you arrive at Malmo(Sweden), which is a less than 50km drive from Copenhagen.
Keeping aircraft in the air for most of the time is another important part of low cost for which Ryanair has tweaked their operations. There is no check in, One has to show passport and supply your reference number. One cannot select a preferred seat. It is first come, first served. This aids speed. Baggage is deposited directly onto the terminal - it's quick.
Beyond any doubt, Ryanair is one of the strategic marketing successes of the last decade. Undoubtedly synergized by Michael O'Leary - the low cost strategy that it employs is remarkable and industry changing.
