Hospitality And Tourism Management Analysis Of Ryanair

Micro environment of Ryanair

Hospitality is a vast concept, which includes various aspects. However, the main aspect here is the adoption of courteous approach towards the fulfillment of the needs, demands and requirements of the customers. One of the primary sectors of hospitality is tourism and management of the tourism services enhances the intensity of the term hospitality (Mok, Sparks and Kadampully 2013). This assignment peeks into the micro and macro environment of an airline company, Ryanair in terms of their hospitality and tourism management.

Micro environment of Ryanair

Microenvironment of any company or organization relates to SWOT analysis or Porter’s Five Forces. SWOT analysis would be dealt separately in the third section. As a matter of specification, this section would deal with the impact of Porter’s Five Forces on the business activities of Ryanair (Ryanair.com 2017). The following are the forces, which acts as an obstacle in the efficient execution of Ryanair’s business activities:

Bargaining Power of the Suppliers

Traditionally, Boeing is one of the oldest suppliers of Ryanair. However, according to the annual reports, the management of Ryanair has expressed interest to indulge in deals with Comac’s C919. The fluctuating cost has been difficult for the suppliers in terms of completing the orders within the deadlines. However, the presence of skilled and efficient pilots has nullified the intensity of the fluctuating prices of the spare parts of the aircrafts (Ryanair.com 2017). Bargaining in this sense relates with making effective use of the rationality to stabilize the financial parameter.

Bargaining Power of the Buyers

The fluctuating prices of the aircrafts have enriched the buying power and behavior of the As a matter of specification, the fluctuation in the prices of the spare parts of the aircrafts have added vulnerability to the position of Ryanair within the competitive ambience of Australia. This has compelled the customers to switch over to the other airline brands. Sensitivity to the prices is one of essential aspects of the customers of Ryanair. This sensitivity can be considered as one of the crucial components of the buying behavior of the customers.

Threat of the new entrants

In case of Ryanair, the threat of new entrants is low. This is because of the factors like measurement of economies, capital requirements and access to the networking channels for the customers (Ryanair.com 2017). Economic scale is the greatest barrier for Ryanair due to the inverse proportion between the quantity of the spare parts of the aircrafts and the manufacturing cost of each unit. On the other hand, missing physical facilities, lack of access to the marketing activities among others, are also the barriers for Ryanair in terms of securing their position in the Australian market.

Threat of substitutes

In terms of Ryanair, the substitutes are railways, sea transport, cars and others. High cost of the bus services is really a threat for Ryanair, especially the fare of the tickets. However, the objective of “low fare” is a major source of competitive advantage, if dealt strategically by the personnel (Ryanair.com 2017).

Bargaining Power of the Suppliers

Competitive rivalry

The plan of “low fare” in the tickets can be considered as a common strategy as the contemporary airline brands also have planned cheap airline tickets for attracting large number of customers. This intensifies the competition between Ryanair and Airbus 320, Express Freighters Australia Boeing among others. Compliance with the standards and protocols of competition policies helps the personnel of Ryanair to indulge in fair trades, deals and transactions with the contemporary brands (Ryanair.com 2017).

Macro environment of Ryanair

Macroenvironment of any company and organization is their relation with the external agencies. Macroenvironment includes PESTLE analysis, which would be dealt with, in detail in this section.

	Factors
Political	· Harsh and orthodox regulations · Security in various levels at airports
Economic	· Recession · Fluctuation in prices of the spare parts of aircrafts · High exchange and tax rates · Increase in oil prices
Social	· Decrease in the number of people going for vacations · Altering lifestyle of the people
Technological	· Research and development on renewable energy production · Adoption of latest and modern equipments for producing aircrafts with innovative designs
Legal	· Laws and directive related to enhancing the protection  of the customers in airports
Environmental	· Reduction of carbon emission  levels · Controlling noise pollution · Global warming

Table 1: PESTLE analysis of Ryanair

Harsh and orthodox rules and regulations acts as an obstacle in the marketing activities of Ryanair. However, the plans of enhancing the protection of the passengers in airport are one of the positive points, which enhance the reputation and the brand image. Along with this, fluctuation prices of the raw materials such as oil and the spare parts of the aircrafts have added instabilities to the financial parameter of Ryanair (Ryanair.com 2017).

Apart from this, high exchange rates and tax rates have adversely affected the import and export activities. In this sense, the recession has made the people scared, due to which they are preferring closer distances for enjoying the vacations. Firmness in creating the plans for developing laws and directives for enhancing the security of passengers at airport aligns with the true essence of hospitality in case of Ryanair personnel. Consciousness towards reducing the noise levels and reducing the carbon emission reflects the approach of the personnel towards preserving the ecological diversity (Ryanair.com 2017).

SWOT Analysis of Ryanair

Strengths	· Strategic  marketing · Skilled and efficient professionals
Weakness	· Absence of long distance flight services · Cheap cost of the old aircrafts · Limited long distance flight services · Absence of quality customer services
Opportunities	· Development of budget airlines · Flight services to USA · Plans for families · Websites
Threats	· Competition from Easyjet, British Airways, Air France

 Table 2: SWOT analysis of Ryanair

The presence of skilled and efficient professionals results in the systematic execution of the business activities. However, absence of quality customer services like the frills, nullifies the plan of the “low fare” in the airline tickets. Along with this, the cheap cost of the old aircrafts unnecessarily adds to the stock of resources of the airline company, Ryanair (Ryanair.com 2017).

Viewing it from the other perspective, the development of the budget airline validates the flight services to USA and Europe planned by the personnel. Herein lays the appropriateness of strategic marketing, which enables the personnel to provide quality flight services to the families. Typical example in this direction is uploading every information and details in the website. Negligence in following the standards and protocols of the competitive policies would make the position of Ryanair vulnerable under the competitive ambience of Australian market (Ryanair.com 2017).

Conclusion

This assignment emerges successful in providing an insight into the business activities of an airline company, Ryanair. The micro and macro environment analysis enlivens the perspectives, thoughts, ideas and concepts of businesspersons regarding the effective execution of marketing for attracting large number of customers. Rationality in the execution of marketing activities helps in penetrating into foreign markets, expanding the scope and arena of Ryanair business.

References

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Ryanair.com (2017). About us. Available at: https://www.ryanair.com/gb/en/ [Accessed on 27^th Dec 2017]

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