Hospitality And Tourism Marketing Strategies Marketing Essay

Hospitality And tourism selling Strategies trade Essay1.0 IntroductionTourism and hospitality industry has become star of the largest industries in modern and war-ridden tune existence. It is a common curative for development and the world suck and touristry industry supported 234 one thousand million jobs (8.7% of total world employment) and contributed 10.3% of world gross domestic product in 2006 (Opening up Trade in Services Key for Tourism Growth, 2008) . The tourism and hospitality industry has been as a garterful force for world peace the benefits of mixing to originateher different types of people and different cultures. The expire industry has contributed to the accomplishment of millennium development objects especi accuratelyy in the triad world countries. Despite a vast expansion in the work industry fuelled by opportunities created by the mesh and emerging merchandises consistent juicyness for m whatever mienlines and change of location-related firms re primary(prenominal)s elusive due to terrorism, recession, the SARS virus, strikes, and the Icelandic ash tree cloud the list piles up. Before people locomote for excerption or to better themselves but, now people travel for entertainment, vocation pattern and amusement. Airship or air-ways business agree become easier, faster and cheaper to travel around the globe and the airway industry such as Ryan air plays an pregnant role in the tourism sector.1.1 Over view of Ryanair flight pathRyanair is an Irish minuscule- toll, prime(prenominal) and largest belittled cartes airlines in Europe. From Ryanair incident study analytic thinking (february19, 2008) it is sh sustain that Ryanair head office situated at Dublin Airport, Ireland, and has ground in London Stansted Airport (the third-busiest airport in the United Kingdom). The late Dr. Tony Ryan and his family aim established Ryanair in 1985 with just 25 staff. In July 1985 they had launched their first despatc h from Waterford and London Gatwick which is operated by a 15-seat Bandeirante twin-turboprop agree to near Us (1985) www.ryanair.com.To d ar the oligopoly market amid British Airways (BA) and Aer lingus in Dublin-London travel guidebook, the newly stabilised Ryanair obtains permission from the regulatory authorities. concord to Ryanair website,( About Us ,1986 www.ryanair.com), Comparing the hurt of the BA and Aer Lingus woefulest return f argon of 209,Ryanair launched the first Dublin-London Luton pip in may 1986 for only 99.So in response to stay in the market those rivals solidus eat up their noble f ars. Inspite of having trey conjugative categorys harvest in aircraft, routes and agonistic value, they face a massive loss of 20m which made the order to watch out the model of Southeast air hapages leads a change of its pedagogy and structure according to Ryanair website(About Us, History of Ryanair, 1990, www.ryanair.com) .For driveting a free-enterpri se(a) location in Airline industry, The Ryan family put in an additional 20m in the go with and change their attention which is a copy of Southwest Airlines gloomy f ares model(About Us,1990 www.ryanair.com). therefore they are passing game to begin their innovative bring offment which chiefly based on low salute with low fare and starting first low fare business in European airlines sector. at one clip Ryanair fissures lowest fares but amply frequency flyings, moving in to a single aircraft fleet type. It reduces its Dublin-London Luton flight fares from 99 to just 59 return by bound offting down free drinks and meals on board. The Easter weekend seat sale fares of 59 return that launched in 1990 was every(prenominal) posturecoming nodes or passengers demand. A vast of people wanted to get this demanding Easter weekend seat and It was such demanding that in Dawson driveway there was more(prenominal)(prenominal) than halfway traveller s line for three mean solar days to get that bargain (About Us, www.ryanair.com).After winning the Southwest airlines low fare model and establishing cost step-down in their dodge Ryanair is promptly growing in airline market. Their gross is change magnitude rapidly which is shown in their annual penetrate a large-minded. According to annual report of Ryanair (2003), taxs amaze risen more and more and in 2002 receipts was 624.1million.After one year it was increasely from 624 (2002) to 842.5 million (2003) and all over the same metre, net kale had increased from 150.4 million (35%) to 239.4 million (59%). Thus Ryanair increasing their business rapidly and get the huge quantity of profit.Now Rianair is distinctive from their competitor .Currently introducing a fantastic team which consist more than 8000 people and it operates a massive number of 51,100 flights per year which is more than 1400 flights per day (About Us, History of Ryanair, www.ryanair.com). By operating a fleet of 250 new aircraft which acknowledges short circuit to medium range, single aisle, narrow body jet airliner 737-800, Ryanair becomes the worlds better compute airline (www.ryanair.com). Providing more than 1100 low fare routes from 44 bases across 27 countries, Ryanair connects 160 destinations. According to Ryanair website (www.ryanair.com), Within next 02 years out front fetching account of planned disposals, Rainair want to introduce 64 new aircraft in their fleet and currently it carries 73.5 million passengers (approx) which is almost 15% (73.5/63.5100 senior risqueer than the function year (63.5m). Safety is a most cardinal priority for the management of Ryanair. Their commitment to save great safeties for their passenger and this obligation begins with instructing or pro imaging of Ryanairs pilot, cabin crews and maintenance human resources and includes a policy of maintaining its aircraft in unity with the senior high schoolest European Airline Industry Standards.2.0 Market ing ConceptMarketing is a process which t fitting services to find out what consumers want, and past go out it for them. It is a trunk of business activities which is designed to plan, price, promote and distribute run to charge markets, in order to come across system of rules objectives. Baker (1992,p.20) take aimed that merchandising is concerned with the governing of mutually pleasurable exchange coincidenceships in which the judgements as to what is satisfying consider upon the perception of the parties to the exchange. Basically, it bear upons creating the right product with right price and then put it in the right place with the right promotion everything is done for give way clients or target market happy. Marketing is identifying the target market and satisfying customers now and in the future.In most organizations, an analytical function, strategic direction and facilitates are tactically mark off to attract customers. Marketing dodge is heavy for every bu siness. An rough-and-ready trade strategy move encourage a business to get more profit and also getting high position in competitive business market. Marketing strategy fanny be the life or death of a business. Having a rail at strategy, business volition go down. Beginning an efficient strategy is the key fruit of achiever for business.Marketing strategy is the way and compass of an makeup over the abundant turn. Effective selling strategy can bring advantages for the organisation. For creating rough-and-ready strategy company endlessly organized and proper utilized companies resources in spite of appearance a tough and challenging environment, to assemble any(prenominal) market needs, to fit what customer wants and also fulfil whatever stake holder expect. boffo strategy always examine the set situation and then set up plan which help to deal with all operational aspects postulate to realize the achievement of organisational goal as argued by Jain (2000). Its a plan of action that summarizes what will be done to reach the stated objective. Jain (2000) identified the significant characteristic of strategic trade as putting emphasis on long-term implications and monitoring the business environment, taking into consideration the corporate culture, business resources and the corporate stakeholders and varying roles for different products or markets.Marketing Strategy deals with the proper selection of market opportunities to pursue, examining and analysing target market and creating a right marketing mix that will satisfy customers in the target market. It basically deals with four essential elements which include sale or promotion, product, place and pricing.2.1 Marketing strategy of RyanairMarketing Strategy is the most important business element for an organisation. It helps an organisation to identify organisations target goal and apologise how organisation will achieve the target goal within a stated time frame. Generally all organi sations vex strategies that would maintain or enhance their competitive benefit in the market, and Ryan Air is never an exemption. at that place are different types of marketing strategy which is constituteed by organization or company to create an effective strategy, such as insurgent marketing and viral marketing. Guerrilla marketing and viral marketing both are followed by Ryanair.2.2.1 Guerrilla marketingGuerrilla marketing is a marketing process hit hard, hit fast, get in, and get out and also a tactic which help to focuses on low cost, and fast-to-market, promotions. Guerrilla marketing is a marketing process of alternative ways of pursuing rightful(a) goals and an established technique of achieving profits with least amount money. The main pay off of guerrilla marketing is to create a unique, appealing and stimulating mind to create buzz (buzz is used in word of marketing), and subsequently go round viral. Tom Richard (2005) pointed that with guerrilla marketing busine ss can be able to increase the amount of traffic which comes from their business without spending a huge amount of money.2.2.1.1Guerrilla marketing of RyanairIn Ryanair marketing strategy, they follow guerrilla marketing technique which is unquestionably winning in realistic applications, are still new, fresh and non as clearly explored academically as former(a) marketing technique. Strategy of Ryanair based on cost reduction strategy, nominal standard of returns, short haul flight, very low prices and no frills, point to point frequency, all these are designed to achieve their goal and having a competitive position within the airline market. Here I discuss some guerrilla marketing techniques of Ryanair.Cost reduction strategy of RyanairLow fares and no frills are the key elements of Ryanairs marketing strategy. Low fares are tolerateed by Ryanair to get large amount of passenger traffic mend maintaining a continuous focus on cost-containment and operating efficiencies. Strateg y of Ryanair is based on cost leadership strategy, in this strategy management manage and do all rank adding activities with the lowest manufacturer of product in business and attract customer with their lowest price. Cost reduction strategy helps them to gain competitive position in airline market. Lowest price help them to get many customers. Their assured aim is to divide into subdivision parts of air travel and cut be in every possible area which help them to flip lowest fare to their passenger than other competitor airlines. A particular part of passengers are targeted by Ryanair and they are just absorbed all their energy on that. Their target customers are the ones who are non capable to travel on a main or highest fare airline. Ryanair has established a consanguinity with consumers by using low cost product which helps them to sell additional higher-margin products and services that develop the consumers interface with the low-cost product or service. Ryanairs strategy , achieve competitive advantage through cost leadership and differentiation across extensive and narrow target market so that superior profits could be generated by charging the market average price while holding costs down and this is consistent with Porters (1985) generic strategies.Being reliableTo deliver the best customer service performance is the strategy of Ryanair. According to the reports of connection of European Airlines (2004) Ryanair has achieved better punctuality than their competitor, less confounded peachs and smaller amount of cancellations than all of the rest of its peer grouping in Europe. Ryanair achieved all these faithful will because they are purposeful to carry out their services on strongly or strongly and operating their services from secondary airports which are not congested. Monthly customer service statistics for September, 2010 was published by Ryanair, substantiate that they deliver Europes No 1 airline customer service to their passengers. F or the duration of the calendar month of September 2010, it shows that on time arriving flight of Ryanair is 85% of over 42000, fewer complaint which is 1 complaint per 2,000 passengers and less than 1 missing bag per 3,000 passengers was received. Ryanair are more concern well-nigh the safeties for passenger. According to Ryanairs annual report (2009), in their twenty years working history they have not had a single occurrence involving major injury to their passengers or flight crew. shoot for to point Flight frequencyRyanair also provides frequent point to point flights on short haul routes and this route allow Ryanair to confront frequent service. Ryan air use secondary or regional airports because this petty(a) and regional airports are usually not as much of crowd than major airports which helps Ryanair to provide superior rates of on time departures, quicker turnaround times (the time an aircraft expend at a supply loading and Unloading passengers), less terminal delays, more competitive airport entrance and handling expenses according to Association of European Airlines report (2004). Point to point flying allow Ryan air to provide non-stop routes and keep forward from the expenses of service for connecting passengers, baggage transfer and transit passenger assistance costs. scurrying turnaround time is an important factor for Ryanair to exploit aircraft utilisation. Association of European Airlines published on time performance record of some airlines in their statistics reports and the airlines statistics (2004). According to their statistics, for the first six months of 2004 Ryanair arrived within 15 minutes of order of business time which was 92%, on the other hand its main competitors bid Lufthansa AG (Lufthansa) 84%, Air France 84%, easy Jet Plc (easy Jet) 82%, British Airways 81% and Alitalia S.P.A. (Alitalia) 80%.Building achievement in the Ireland-U.K. market and increasing service to Continental Europe, Ryanair intends to pursue a man ageable growth preparation targeting precise markets. Targeting specific market will have opportunities for continue growth by initiating supplementary routes from the U.K. or Ireland to other locations in continental Europe that are currently served by higher-cost, higher-fare carriers increasing the frequency of service on its existing routes and this are believed by Ryanair.2.2.2 Viral marketing of RyanairAccording to Allen.K (2008) viral marketing is a marketing technique that employed the excogitation of using the social networks of other people so that they can spread and expose their business product and services. Viral marketing strategy is a strategy that encourages individual to pass on a marketing pass along to others, creating an ever-expanding nexus of internet users spreading the world pointed by Hutchison. T, Macy. A et al (2009). This marketing strategy help organization or company to pass their information by using website, video clips, e-books, brand able softwa re, images or text messages. It also can be word of mouth.Some viral marketing strategy is included here which is followed by Ryanair.Straight marketing techniqueRyanair has been using straight marketing techniques for recruitment and maintenance of customers to branch out products and services. Travel agents are not used by Ryan air so that they do not pay agency commissions. Customers book online over the internet which helps the company to save agency fees.According to About Us, History of Ryanair (2000) www.ryanair.com, on January 2000 Ryanair started biggest booking website of Europe which is www.ryanair.com. This largest website helps them to reduce their cost and getting huge amount of booking. After launching the website weekly it was taking over 50,000 booking and this huge number of booking was established within three mounts. This website also allows passengers to get the lowest possible cost hotel rooms, car hire, lowest cost travel insurance as nearly as cheapest rai l services (www.ryanair.com, About Us, History of Ryanair (2000).According to Ryanair website (About Us,2000, www.ryanair.com) the weather report in Sky news gets sponsored by Ryanair, The first airline sponsoring weather news by doing this they reach to millions and thousands of people reflection television in their homes and people in hotels all over the European countries. The flexibility of getting Online tickets within the wide time span from 15 days up to 4 hours which is prior to the departure of their scheduled flight. embarkation pass excessively can be reprinted up to 4 hours before the scheduled flight according to online booking, ryanair.com 2009.Ryanair MagazineFor focusing customer and creating good recounting with customer Ryanair publish their periodical snip. In their monthly magazine, it is generally described directly to the interests and purchasing behaviour of Ryanairs exceptional audience and essentials include charming destination guides, travel tour id eas, property and real earth guides, select hotel reviews, seasonal recreation guides, technology updates and individuality profiles according to www.ryanair.com (advertise with us). Their magazine provide their passenger do not need to pay too much and provide them too get cheapest travel tour, cheapest hotel etc.Ryanair also involve to do some social activities. They are donated all money whatever they raise by selling their beneficence magazines. Their first unselfishness calendar was published in 2008 which features their cabin crew and it raised 75,000 for childrens charity Angels by-line in Ireland (www.ryanair.com).3.0 Public coincidence tacticsIn every organisation public relation strategy is very important to the success of a business. It helps to communicate with customers all over the world. Public relation (PR) is a relation between company or organization and public which provide a service for the company by serving to provide the public and the media a better tho ughtful of how the company works. It helps the company to attain its in effect(p) potential difference and provide feed ass to the company from the public. This usually takes the form of research regarding what areas the public is most happy and unhappy with. Within the tourism industry, public relation is not solely the work of PR department but also the entire employees. Public relations help an organization to develop its mission and vision and also meet customer or public needs and desires. just about times companies take some tactics to make relation with consumer which help to keep the customer coming back for more time.Ryanair also follow some tactics to create a better relationship with customers. Statistics from Association of European Airline (2004) shows Ryanair topped the list of customer felicity. In customer satisfaction figures Ryanair has got the pole position by providing best punctuality, the smallest number of lost bags and the least cancellations .Ryanairs he ad of communications, Peter (Holiday extras, Ryanair best for customer service,2007) say that the high fare airlines basically cannot contend with Ryanair either on price or on customer service satisfaction. Recently, Ryanair revealed that they have entered into agreements with a number of companies to present advertising space on the seatbacks and overhead baggage storage areas on their planes.3.1 Relationship marketing of RyanairThere have been many attempts to define relationship marketing. Berry (1983) pointed that Relationship marketing is attracting, maintaining and in multi service organisation-enhancing customer relationships which help to strengthen the relationship with customer and also transforming indifferent customers into loyal ones.Todays competitive market relationship marketing is important to get more customers. prospered relationship marketing helps business to get loyal customer which is important for business. Ryanair has created relationship marketing with p ublic by providing better service spirit such as best punctuality, the least lost bags and least cancelation, creating their own website which provide all information and resent news of Ryanair, publishing their monthly magazine, donating charity and sometime biding special offer. For giving special offer 1st November 2010 Ryanair announce that passengers can book their 6 seats for travel and booking their 6 seats, passenger can travel on more than 500 European destinations in December and January. If passengers want to get this offer they have to booked these seats until midnight (2400hrs) thorium (4th Nov) according to Ryanair news (1st November 2010).This offer announcing by Ryanair to make relationship with their customer.For making relationship with public Ryanair donated for charity by selling their calendar. From this calendar they got 100,000 euro and donated this money to Dublins Simon Community which is a charity works with homeless people in Dublin city(About Us,www.rya nair.com).3.2 Customer obedience tactics of RyanairNo business exits profitability without customers, which direction customers are main element for a business and business would be more profitable when they are loyal. Loyal customer is king buy more, buy weeklong and tells more people. That customer who doesnt return or doesnt make partnership to the organisation or doesnt spread positive word of mouth has no value to an organisation. If any company or organisation wants to win the market place they must be customer-centered. Creating customer loyalty is important for every company and according to Reichheld (1996) greater customer loyalty brings about superior employee satisfaction and improves returns for shareholders. Richheld (1996) identified that customer loyalty, employee loyalty and investor loyalty are the key for the success of an organisation. That means loyalty is the key element to create relationship with public. analogous every company Ryanair wants to encourage i ts fictionalise visit. Ryanair needs to drive repeat customer business which will give an extra little help to its loyal customer and at the same time boost its revenue. To exploit the number of repeat customer, Ryanair appointed the swell up recognised incremental revenue provider for online business-Webloyalty which is revealed from webloyalty news on march 2010 (www.webloyalty.com). Webloyalty has a vast love in online businesses which work on driving repeat customer business by providing an option, named discount scheme to its online shopper. Customers who are booking online with Ryanair, they will have the option to join shopper discount and rewards. This offer provides passengers the option to join a 30-day free trial of Shoppen und Sparen. It also provide year-round discounts of up to 20 percent at over 400 top online retailers and EUR15 cash back check from Webloyalty for their next Ryanair purchase after joining the program. Martin Child, managing director of Europes We bloyalty (2010) tell this model will help Ryanair to reward its repeat customers whilst providing a revenue stream and repeat business to their web pages with minimal effort needful by them to implement the programme. Sinead Finn(2009), director of commercial revenue (Ryanair), insisted the passengers of Europes largest low fares airline Ryanair has already save billions each year with the lowest guaranteed fares, now in partnership with Webloyalty across three European markets, even more of our passengers can choose to join membership programs of Webloyalty and save more with ongoing discounts.For tutelage to its customer, on Thursday 20 August Ryanair, low fares airlines, has announced flesh out of an amazing flight good deal in Bangor as well as Belfast to commemorate A-level terminations day (Stakeholder media news August 2009). Europes largest low fares airline Ryanair announced that Ryanair Company will benevolent to give off free of charge flights to A-level students. They give these free amazing flight offers for those students who have gained admission test of those colleges and universities which are situated in their five destinations from George surmount Belfast City Airport to East Midlands, Bristol, Liverpool, Glasgow Prestwick and London Stansted,. This amazing offer can get those first students who can come in major(ip) Street Bangor and Belfast at 11.00 am to 14.00 pm next Thursday with their A-level results slip as well as letter of offer to the Ryanair Company. all these students can win these free flight tickets towards university according to Stakeholder media news (2009). From Stakeholder media news (2009) ,Laura McCormack, management member of Ryanair said that University can be costly time for students and their parents, but the special offer of low fare airline, Ryanairs guaranteed means that guardian or parents of students as well as students can fly their home and vacation at the lowest fares. All things are done by them fo r keeping customer.4.0 Effectiveness Marketing strategies and Public Relation Tactics of Ryanairontogenesis and managing effective marketing strategies are important for company to achieve the broad goal and with effective marketing strategy company can release with other competitor which helps them to get high position in business market. Effective marketing strategy helps company to satisfy their customer and get the target market. A successful marketing strategy must be tractable. Marketing tactics are essential to create an effective strategy. Marketing tactics are the day-to-day actions that marketers undertake and involve the main marketing decision areas. This tactics help to make relationship with customer. Public relation tactics is the first step for an effective strategy. This marketing strategy helps the company to stand in competitive market and to gain competitive position in the airline market.Effective marketing strategy and public relation tactics is a way which he lps company to growing revenue, increasing profits and reducing costs.With providing cost reduction strategy, point to point frequency, punctuality and minimum customer service now Ryanair is getting the largest low fares airlines in Europe. Revenue of Ryanair and increasing number of passenger provide that the strategy and public relation tactics of ryanair is so effective. According to About us, full year result 2010 (www.ryanaor.com), on 1st June 2010 Europes largest low fare airline Ryanair announced their full year Profits, it shows that after tax they get 319m profit and last year it was 105m profit that means it is increasing 204% when most of the competitors of Ryanair such as Bluewings (Ger), Globespan (UK) have announced sufferers or losses because of global recession .It provide that how effective there low cost marketing strategy isToday customers are so concern about price and Ryanair use these things to attract their customer. Ryanair knows how to make relationship wit h their customer, what is their customer wanted, what is their expectation. Todays customers are kings for business so that they are always trying to make relationship with their customer by providing on time service .For making relationship with their customer Ryanair launches largest booking website which is www.ryanair.com. According to Ryanair website (About us, 1995, www.ryanair.com)by their effective strategy Ryanair achieve vast quantity of passengers in their Dublin-London route and go beyond some major airlines like British Airways as well as Aer Lingus. In Europe, Dublin-London is the major intercontinental scheduled route than other routes and Irish Airline Ryanair has turn into largest passenger airlines on their all route that is operated by Ryanair to or from Dublin. That means lowest fares, on time and high frequency of Ryanair continues to win success in every market which is operated between Ireland and the UK. Though Ryanair provide minimum services to their custom er, their passenger number is increasing day by day because of their cost reduction strategy. According to Ryanair news (4th September 2010),September 2010 their passenger number is 6.84 million and last year it was 6.12 million, it means it is increasing more than 12%. Their biggest growing number of passengers provide that they are doing successful Airlines business in Europe.5.0 Recommendation and conclusionEvery organization should try to satisfy their customer by providing product and services to achieve their goal. Customer satisfaction is the main intend of the marketing concept.Beyond any doubt, by their effective marketing strategies now Ryanair is the largest low cost airlines in Europe and achieve recognisable brand name. It can be said that their Low cost or no frills marketing strategies helps Ryanair to be able to gain huge amount of passengers. If the company cannot fulfil customer expectations then this company will go down. It can be recommended that their low cost marketing strategy is so effective. It can be said that their low cost strategy is a fundamental reason for them to get high profit. Making relationship with customer is most important to get long term business and customer loyalty is the most powerful for increasing companies advert, rising companys good will and getting more profit. But Ryanair provide minimum service, getting a position in competitive market they should think about that customer is valuable and it is recommended that they should think to increase customer loyalty.It can be said If Ryanair increase their public relation, they will get superior success and also can increase their business in competitive business world. Ryanair marketing strategy is based on cost leadership strategy that mean their main marketing concept is to cut their cost in every possible way and attract customer with their lowest fare. As their business is airlines business which depends with oil price, this oil price is increasing day by day. So, if they want to do their business, it is recommended that they should think about their price strategy and increase the price of their fare to stay in business.6.0 References and Bibliography1. Opening up Trade in Services Key for Tourism Growth(2008)Online getable at http//www.oecd.org/dataoecd/38/11/40191324.pdf2. Laura Lake,(2010)Content Marketingonline Availablehttp//marketing.about.com/od/strategytutorials/a/contentmarketing.htm3. Baker, M. J. (1992),strategic marketing management, cutting York Wiley4. Jain, S. (2000),Marketing Planining and Strategy,6th edition, Cincinnati South-Western College Publishing5. Dibb, S. Simkin, L. et al (2006)Marketing Concept and Strategies fifth edtion, New York Houghton Mifflin6. Brennan, R., Baines, P.et al a(2003)Contemporary Strategic Marketing New York Palgrave Macmillan.7. Marketing teacher.com Ryan Air case studyOnline Available http//marketingteacher.com/case-study/ryanair-case-study.html8.Strategy-Ryanair-Strategy Available http// www.ryanair.com/doc/investor/Strategy.pdf9.Thinking made easy(2008)Ryanair case study synopsis Online Available http//ivythesis.typepad.com/term_paper_topics/2008/02/ryanair-case-st.htmle10. Casestudyinc.com (2010)case study on ryanair, the biggest low-cost European airline OnlineAvailable http//www.casestudyinc.com/ryanair-low-fares-airline-case-study11. Ryanair.com (2010) Online Available at http//www.ryanair.com/en/news/ryanair-no-1customer-service-stats-august-201012. Smith+co (2009) Ryanair-a branded customer experience?Online Available at http//www.smithco