Slides in this set

Slide 1

Preview of page 1

External factors affecting RyanAir…read more

Slide 2

Preview of page 2

· The political analysis showed that RyanAir has
consistently utilised changes in the political environment
to its advantage.
· Worldwide tourism- If tourism continues to grow at the
same rate it is now, so an increase in flights cause a
bigger demand for the business.
· Governmental regulation- governments have imposed
new greenhouse gases tax, which has increased the price
of tickets by 5% on average for short haul, and then a
15% increase on long haul. This has positively impacted
RyanAir because their flights are already cheap and
classed as "budget flights" so they get more customers.
· Taxation on hot foods…read more

Slide 3

Preview of page 3

· Recession- this affects RyanAir directly as people are
more likely to buy the cheaper flights in comparison to the
more expensive flights.
· In 20009, RyanAir's traffic rose by 17%, causing more
customers and more of a demand for flights.
· Fuel prices increased 800% between 2002 and 2008,
which accounted for 10% of airline costs.
· Fluctuation between the Euro and the Pound due to
inflation of a euro it goes up, and the Pound remains the
same then people will get more for their money and the
airline are losing out or vice versa.…read more

Slide 4

Preview of page 4

· There has been a recent increase in demand to travel to
more European destinations- short breaks, etc. These
people will want cheaper flights with possibly quicker
· An increase in teenagers going to the party resorts (Malia,
Magaluf, Ibiza, Zante, Kos, Corfu)
· The Baby Boom- more children means that in 10/15 years
more families will intend to go on holiday. It is more likely
that families will go for the cheaper airlines, so there will
be more of a demand of RyanAir.…read more

Slide 5

Preview of page 5

· RyanAir can favour from innovations in technology where
new airport are more fuel efficient. This will make it easier
for them to run their operations at a lower cost, also
allowing RyanAir to reduce their prices for customers.
· RyanAir has also used "e-ticketing" which cuts down the
amount of people they need to employ.…read more

Slide 6

Preview of page 6

· There are a few allegations of misleading advertising, as
two newspaper adverts in 2010 offered £10 one-way
fares- however, in the small print there were statements
saying that the offer was subject to restrictions.
· They refused to comment, and it continued to raise bad
attention on the business. "Obnoxious- that's the one
word I think of when I think of that man" about Michael O'
Leary, the executive of Ryanair
· If the business were to get bad attention, there would be a
decrease in customers and therefore affecting the amount
of profit that the business will make.
· Article Link…read more

Slide 7

Preview of page 7
Preview of page 7

Slide 8

Preview of page 8
Preview of page 8

Slide 9

Preview of page 9
Preview of page 9

Slide 10

Preview of page 10
Preview of page 10


No comments have yet been made

Similar Applied Business resources:

See all Applied Business resources »