Pest Analysis Of Ryanair

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Political Political Issues are very relevant as the airline industry is still greatly influenced politically. Ryanair has a low cost business model with short haul flights with a limited number of destinations where it operates its flights therefore political factors can have a greater effect on the company’s operations as it targets a specific region. Ryanair mainly operates in EU countries and the political climate in this region affects its strategic decisions. The region has had a mostly peaceful political climate for the airline industry enabling good on-going operations. However the recent economic uncertainty regarding the “Brexit” decision has had an impact on Ryanair’s strategic decisions going forward. The result of the vote will …show more content…

Ryanair has had to come up with a marketing strategy to attract new customers and retain loyal customers. Increase in taxes and interest rates have hurt the pricing and promotional strategy. Oil prices continue to fluctuate; Hedging deals will push airline companies towards the risks of exchange rate fluctuations. Ryanair has adopted a hedging strategy for buying fuel and sharp fall in fuel prices has seen the company lose 200 million on a failed oil price gamble. (O'Donoghue, 2015) All these economic factors have cost implications. To beat these variables, Ryanair has adopted a flexible market response strategy in each and every area of …show more content…

Their attitudes are changing according to their preferences as they are able to compare different model of transport more easily. They are more easily able to choose between airlines as their preferences inform their choices, leading passengers to demand low cost from airlines. Competition in the market has given customers choices. This factor does not have negative impact on Ryanair’s as their dominance in the market has been boosted by been keenly aware of their customers’ attitudes amidst the increasing competition and recovering EU economy. Ryanair has made a decision to instil in customers the confidence that despite the economic performance over recent years it can continue to provide low cost fares reinforcing their commitment to provide the cheapest

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