Is Ryanair's low fare, online pricing strategy misleading or a justifiable way of managing with customer demand?

Abstract

Purpose – This study aims to uncover the perceptions people have towards the fares offered by Ryanair as well as determining whether Ryanair adopts an efficient strategy when it comes to managing customer demand. Design / methodology / approach – The research is qualitative in nature and data was collected at the Malta International Airport by adopting the survey method. Two groups of passengers going to London were interviewed, one travelling with Ryanair and the other with Air Malta. Questions were included in the questionnaire to rate the perceptions fo the consumers. Findings – The results confirm that prices are not seen as being misleading to the public and that people would rather spend on luxurious accommodation at the desired destination. The price resulted to be the main factor for choosing one airline over the other for the respondents travelling with Ryanair. It is shown that people would gladly switch from Ryanair if their prices increased to more than those of competitors. Also, the fact that Ryanair travels to secondary airports at a great distance from main cities does not pose any barrier to the usage of the airline. Research limitations/implications – Further studies relating to this research question are recommended due to its evolving nature. An idea for future studies may include observing perception of fares once more disposable income is available to the consumer. Practical implications – the study could be used by Ryanair to know that people think of the company as a whole and take note of where they can improve, in order to remain competitive in the airline industry and not to lose customers. Originality/value – Limited research has been conducted towards the same research question. This study seeks to identify the factors leading to carrier selection to assist Ryanair in reaching their target markets.