Tourism and Hospitality Management Journal - MyAssignmenthelp.com

Question: Discuss about the Tourism and Hospitality Management Journal. Answer: Introduction Listed as Europes largest low fare airline, Ryanair has established itself in the market especially because of the customers preference on availing low cost services from their airlines. Ryanair has been innovative and has earned huge profits by catering to the section of customers- the retired people, students and immigrants (Bridoux and Stoelhorst 2014). Here is a complete analysis of Ryanairs services. Macro Environment Analysis of Ryanair Socio Demographic Factors: The organizational strategy was aimed to reduce the excess expenses required for the operation of Ryanair. The HRM of Ryanair focuses on achieving the competitive advantage that would help the airline to sustain in the long run. Michael OLeary has introduced an authoritative style of leadership in the organizational culture which maintains a strict discipline amongst the staff members. The employees are trained in a manner so that their attitudes are attuned to provide the finest customer care service. Ryanair focuses on the elimination of frequent trade unions due to which they have faced a lot of conflicting situations from staff members. With the introduction of low fare in Ryanair, there has been a significant growth of passengers accounting to more than 4.4 millions in 2002. The management is in control of decision making process, work activities and task specialization. Technological Influences: Since Ryanair is a budget airline, it operates on low cost fuel utilizing jets. They have implemented advanced technological features in their aircraft like LCD screen which keeps the passengers glued and prefer them (Caputo and Borbely2016). They have also upgraded their other technological aspects like maintaining the webpage in place of hiring workers, so that the customers can see the availability of seats, book tickets virtually and avail information about the different services of Ryanair. Ryanair has revolutionized the technological sector by selecting Vodafone to deploy the 95pc of telecoms with 3G and 4G speed operating across the 189 locations in Europe and North Africa. This has created a secured connection with the credit card companies. Economic Influences: The fall of ticket prices and lesser number of people travelling by air has affected the business. Fall in customer income, increased marketing costs and inflation had also its impacts on Ryanair. Ryanair has to evaluate the plan of economic class and develop a flexible marketing strategy in order to incur profits.The low fuel fare can also lead to greater price competition by new companies (Creaton 2014). Environmental Influences: Ryanair has tried to implement noise reduction methods in order to avoid penalties that are being imposed for degrading environment. Ryanair should now take steps to lessen the carbon emission that is leading to global warming. Political, Governmental, Legal and Regulatory Influences: Ryanair has a significant portion of its operation in UK and the fluctuations in UK economy can affect Ryanair. The Brexit Refurendum can also affect Ryanair due to restrictions on freedom of movement between UK and EU (Kaufman 2015). Around 28% of revenue in fiscal 2016 came from UK. Any phrase of recession in UK due to Brexit can also affect the smooth operation of Ryanair. Irish tax increase and several other tax assessment and audits can risk Ryanair. In 2005 according to the rule, the passengers whose flights got cancelled / delayed for reasons like strikes, weather conditions and will be given accommodation and food apart from lodging. This was a blow to Ryanairs business profits (Jacob and Jakesova 2003). Micro Environment Analysis of Ryanair Bargaining power of suppliers: High as Ryanair invests huge on pilot training needs and purchasing of planes from Boeing and Airbus. Bargaining Power of Buyers: Bargaining power of buyers is high because of the customers face little difficulty whilst switching from one budget airline to the together. Ryanair can lose customer if a rival competitor decreases its fare. Ryanair has inadequate brand loyalty in this respect. Threat of Substitutes: Cost options like railway, video conferencing, car rental services and sea transports. It is due to this reason that Ryanair constantly introduces lower prices comparing the same with trains and services. Therefore, threat of substitutes is high for Ryanair (McCarthy 2015). Threat of New Entrants: Low, mainly due to capital requirements and limited access to distribution channel. Furthermore, the airline industry has significant number of entry barriers. Existing Competitive Rivalry: Easyjeyt is one of Ryanair competitive budget airline. Ryanair can expand the short-haul routes and work on the flight turnaround to hold a strong marketing position. SWOT Analysis of Ryanair Strengths Brand Recognition: It currently holds the reputation of being Europes biggest and most innovative budget airline brand Low Budget Fair: The low cost tickets enable Ryanair to build strong customer loyalty base (Dsseldorf 2016). High Publicity: This is mainly because of their famous CEO Michael OLeary. Easy Services: Ryanair offers customers easy ticket booking services over websites. The same is also helpful to extract information about the airline company. Size: it has a large network, operating across 30 countries and 186 airports. Weaknesses Customer dissatisfaction: mainly due to flight cancellation and schedule changes. Often times, passengers also complain about the food quality and the lack of premium services like British Airways. Seasonal Earnings: the earning reaches its peak during the summer in the northern hemisphere and suffers blows during the offset winter season stretching from October to March. Opportunities Innovative and Improved Customer service: Ryanair has tried hard to enhance the quality of services that they provide to the customers on board (Vasu, Stewart and Garson 2017). They have implemented a number of steps like a range of entertainment inside the flight, relaxed baggage restrictions and many. Efficient Fuel Consumption: Ryanair has made use of judicious measures to reduce fuel consumption as well as environmental damages. Threats Cheaper Alternative Transportations: For instance railways and skype can be threats for Ryanair and make it lose customers. Fuel Cost Fluctuations: mainly due to inflation which increases both the fuel and airplane process. Ryanair also incurred staff dissatisfaction during the recession and this made Ryanair suffer more losses. Conclusion Ryanair airlines have struggled to pace up but however with the implementation of the above strategies can surely maintain its position as one of the best budget airlines in Europe. Having a fine balance in between the services and fare can help Ryanair dominate in the airlines industry. Reference List: Bridoux, F. and Stoelhorst, J.W., 2014. Microfoundations for stakeholder theory: Managing stakeholders with heterogeneous motives. Strategic Management Journal, 35(1), pp.107-125. Caputo, A. and Borbely, A., 2016. The firms strategy and its negotiation capability: the Ryanair case. Creaton, S., 2014. Ryanair: How a small Irish airline conquered Europe. Aurum Press. Dsseldorf, I., 2016. Ryanair. SWOT Analysis of the Leading Low Fare Airline. Jacob, M. and Jakesova, Z., 2003. Emerging Tendencies in the European Airline Industry: an investigation of SAS and Ryanair. Kaufman, B.E., 2015. Market competition, HRM, and firm performance: The conventional paradigm critiqued and reformulated. Human Resource Management Review, 25(1), pp.107-125. McCarthy, C., 2015. Low Cost or LuxuryCan the low cost short haul airline model be transferred to long haul operations with specific reference to the case of Ryanair? (Doctoral dissertation, Dublin, National College of Ireland). Vasu, M.L., Stewart, D.W. and Garson, G.D. eds., 2017. Organizational Behavior and PublicManagement, Revised and Expanded.Routledge