No-Frills Ryanair Faces Test with Business Plus
Answer the discussion questions, the answer should not exceed two pages (excluding the cover page & references)
Discussion Questions
1. What is the rationale behind Ryanair’s decision to compete in the business segment?
2. How attractive do you assess the business segment to be to Ryanair and why?
3. What targeting strategy is Ryanair trying to pursue? What difficulties do you anticipate Ryanair will face in following such a strategy?
4. How can segmentation and positioning research help Ryanair succeed?
NO-FRILLS RYANAIR FACES TEST WITH BUSINESS PLUS
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Answer 1
Ryanair Airlines has introduced a new service called the Business Plus. In particular, the Business Plus is designed to attract passengers that fly business class, especially on other carriers and those used to numerous perks, such as hot towels, curtain dividers, and free meals. The approach that airlines use to introduce new services to their clients significantly affects passengers’ satisfaction (Tahanisaz & Shokuhyar, 2020). In that light, Ryanair is using a good rationale to compete in the business segment by increasing the flexibility of its business class passengers. After carrying about 86 million business travelers in the past year, Ryanair is sure that its clients are likely to enjoy its new service. Based on Kenny Jacobs, Ryanair’s chief marketing officer, business class passengers are not mostly after free perks, but they want flexible tickets. For example, these travelers had seats near the exits, multiple same-day return flights, priority boarding, seats with more legroom, and fast-track security. Ryanair-style Business Plus does not provide sandwiches and coffee since numerous business travelers are not interested in these free perks. As such, Ryanair is using Business Plus to attract customers from other carriers who are
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