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EasyJet

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Introduction

EasyJet has become the European leader in a no frills frenzy for low cost, cheap air travel. This market however has since the mid nineties gone from strength to strength and we have witnessed the arrival of a number of low cost airline companies which cater for the no frills approach. In Europe the top two competitors in this market are EasyJet and Ryan Air which serve their customers from London Luton and Dublin respectively. They offer a differentiated product compared with the major traditional airlines and the key to their success has been to offer the lowest cost/fare structure possible and the differentiated "no frills" product is purely a consequence of the implementation of this rigorous low cost strategy. ...read more.

Middle

??Direct (low) distribution costs (over 91% of EasyJet's tickets are purchased over the Internet) ??A highly utilised aircraft fleet However, some differences between the two do exist. For example, Ryanair achieves significant cost savings by utilising landing slots at less attractive secondary airports. On many routes, this strategy avoids direct competition with the traditional carriers, as the target traffic is different. Easyjet has another business model. While generating a similar traffic stimulation effect as Ryanair, the carrier appears more focused on existing O&D markets and business traffic. Flying out of mainline airports means a higher cost base, but also better yields compared with Ryanair. There are however a number of other players in this market which although seem to hold lesser market share are piggybacking on the success of the likes of Easyjet and Ryanair. ...read more.

Conclusion

The travel industry has evolved in such a way, where for the better part the Travel Agent is being rendered obsolete. Due to lower overheads and commitments such as shops, and fully manned call centres this has allowed the price of air travel and package holydays to become more palatable and affordable to the consumer. As the internet was adopted on a larger and larger scale, people started to become accustomed to ordering, booking and paying for goods and services online. This has ultimately led to a consumer power which has resulted in a radical change in the travel industry starting from the consumer and ending up all the way to the provider. I believe this has and can only be in the future healthy for competition and beneficial for the consumer. ...read more.

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