An Investigation on the Factors that drive Demand for Ryanair Travel Services

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Table of Contents

Aims and Context of the study
Research Contribution
Literature Review
Research Design and Methodology
Budget
References

Aims and Context of the study

Introduction

Ryanair is a low cost airline that operates in most parts of Europe and Morocco. Its head office is based at Dublin Airport in Ireland. Ryanair has in operation 254 Boeing 737-800 aircrafts in its 43 bases around Europe and Morocco (British Airways Annual Report, 2006, para. 1-3). It offers its customers the lowest air travel charges and has had successful growth in its operation since 1997 due to deregulation that occurred in the aviation industry.

As a result, Ryanair has gained recognition as the largest low cost carrier in Europe. In addition, it is the second largest in handling large numbers of travelers in Europe and also the largest airline in dealing with high numbers of international passengers. Ryanair invests heavily in ensuring modern aircrafts which are fuel efficient and friendly to the environment by reduction of air pollution.

At present, it is an industrial leader in environmental efficiency. Due to handling of large number of travelers, Ryanair airline has faced problems in ensuring customer satisfaction to its services. Many clients have complained of flight delays, long queues and even loss of their luggage. This research will attempt to focus on the factors that influence demand for Ryanair services with an aim of improving these factors so as to enhance passengers’ satisfaction.

Purpose and Scope of the Research

The general goal of this research will be to assess and design demand factors in order to promote Ryanair air transport services. This is meant to enable the industry to be able to increase its revenue ratio in comparison to its main competitors in the industries. Moreover, this impetus to promote Ryanair air travel services follows an evaluation of the travelers’ needs and an inclination to be able to device a marketing strategy that could aid in the promotion of Ryanair air services.

Even though Ryanair operates under the framework of initially assessing the market demand, and then goes ahead to devising innovative solutions in order to meet up with the market demands, this proposal looks out on ways in which the airline can increase the demand for its services. In this case, the researcher will propose a demand creation mechanism coupled with market assessment strategy.

Specific Objectives

To determine the needs of the current users of Ryanair air services.
To examine the factors that influence demand for air services by Ryanair.
To examine the consumers’ level of satisfaction regarding Ryanair air services.
To recommend an effective strategy for addressing the passengers’ needs

Research Contribution

Contribution to Knowledge

This research will be vital for those interested in understanding deeply the factors that affect consumer demand in any line of industry. Therefore, as a response to the overwhelming role played by Ryanair, especially with regard to its social responsibility, various economic theories regarding demand provide lucid explanations as to the role a number of factors play in influencing consumer demand.

Many industrial organizations seem to be constrained by the changing environment of demand (Matt, 2003, p. 45). The recommendations of this study will provide an important tool that can be applied by Ryanair and other airlines for improvement of their services.

Research Significance

By carrying out this research, the researcher will offer a critical perspective on the various demand factors and their overall contribution to the prevailing demands for Ryanair air travel services. This will be aimed at formulating effective strategies for improving its services in order to boost passenger satisfaction and hence loyalty (Philip, 2006, p. 34). In addition, by boosting its passenger numbers, a lot of jobs will be created and their profit margins will be increased.

Literature Review

Demand has been believed to co-exist with supply. This concept has been addressed across history starting with scholars like John Locke who came up with earlier definitions regarding this vital concept in terms of the relationship that exists between the demand and supply (Locke, 1691, p.75). Moreover, it was James Denham-Steuart who first used these two terms that is, demand and supply (Humphrey, 1992, p. 79).

Economists have largely concurred on the role of various variables on demand as well as consumption. However, for many economists, price was the main determinant in influencing demand having the principle of ceteris Paribas in place. However, in the current changing environment, price can never be the only factor that can influence demand.

Other factors play a significant role, such as the availability as well as price of substitute goods (Fao, n d, para. 5). This has been owed to the influence these factor has on the elasticity of demand. However, regarding the suitability of the goods or services under consideration, knowledge and availability plays crucial role.

Another factor that has been considered by many marketing professionals is the issue of tastes and preferences. Accordingly, people have been believed to shift in their tastes and preferences volatilely, and therefore, this should be taken into consideration when coming up with a marketing analysis. Moreover, according to Cherie, the volatility in the business environment is continuous, and it always affects demand, which consequently affects supply (Ang, 2007, para. 2-4).

Furthermore, Cherie argues that it is in looking at the various factors influencing demand that one will be able to manage the changes that take place in the environment (Ang, para. 3). In other words, demand must always be looked at in relation to the environmental volatility. Furthermore, the process of managing demand should be regulated by the policies of the company and its requirements (neoIT, 2007, p.3).

Research Design and Methodology

Methodology

The study will employ qualitative methodology to meet the objectives of the study. A qualitative study deals more with theoretical analysis of data, but does not pay more attention to the quantities of samples and data. In this case, the researcher will utilize the qualitative methodology because of the nature of demand theory which assumes that some factors have to be constant for the overall result to be obtained (Maloney, 2006, p.7).

For instance, in the case of price, the income and consumer tastes and preferences will have to be made constant in order to come up with an analysis of the impact of price on demand. The researcher will also utilize both primary and secondary methods of data collection. First, the primary methods will be based on information gathered from the passengers and various staff of the organization.

Furthermore, the main clients of Ryanair airlines will also be interviewed or sent questionnaires to which they will respond. Their responses will be collected and fully incorporated throughout the research process. Moreover, it will be observed that questionnaires are going to play a significant role in ensuring that those vital individuals, who could not be reached easily, are able to participate in the research endeavor (Schlesinger & Heskett 199, p. 23).

Therefore, major air travelers with Ryanair airlines as well as other randomly selected customers will be provided with questionnaires to which they will be expected to respond. Furthermore, to ensure that one obtains fore respondents, the postage of questionnaires will be postpaid.

Consequently, as a means of enhancing the final research outcome, the research will identify responses from many of Ryanair airlines employees in terms of their commitment to the organization, their level of satisfaction, and the manner in which they view the demand trend of their travel services.

This information will be useful in understanding the link that exists between client-employee satisfaction and service quality, and consequently between the service quality and the air travel demand. Nevertheless, in order to attain cohesiveness in the research, conclusions will be attained, and easy implementation of the research findings, managerial staff will be interviewed directly in a bid to foster cooperation as well as attain relevant information about the organization and its commitment to objectives.

This manner of data collection will be significant to the researcher since it will provide fundamental information and findings as well as vital results to be used in relation to the research findings (Joshi, 2005, p. 39). Furthermore, interviews will be selected in a manner that gives major clients an opportunity to give their perspectives as well.

Study design

An evaluative case study approach was settled at in this study. A case study method is used by researchers to learn about a complex situation based on the objectives and the hypothesis of the study. A researcher has an understanding of that particular instance and intends to provide comprehensive analysis and description of that situation basing it on one particular area.

Evaluative case studies are essential where broad and to some extent complex questions are to be answered. In this case, factors increasing demand for air services at Ryaanair airlines will be tackled. It also provides solutions for difficult circumstances during the research work. Basing on qualitative approaches, case studies allows for investigation of a real intervention by focusing on the reasons that caused a certain intervention to succeed or fail.

Data collection

The following data collection tools will be employed to meet the objectives of the research;

Questionnaires

The research questions to be used will be based on an in-depth evaluation of the research objectives and the targeted industry which is Ryanair airlines. Open ended questions will be used to give a chance for respondents who will be the clients and the employees of the Ryanair airline industry to give personal opinions about factors influencing demand in the airline industry. Random sampling method will be greatly employed owing to its effectiveness in eliminating bias and that it offers a better representation of the population. In this effect, the questionnaires sent to employees of the industry and management staff will be distributed to them randomly.

Semi-structured interviews

This will provide a chance for direct interaction between the respondent and the researcher. As a result the answers provided by the major customers and managerial staff of Ryanair will be assessed to determine the truth and also clarifications will be sought in case the response was not clear enough.

This type of interview enable the researcher to be flexible in asking questions as the researcher could tackle the issues as they arise. According to Joshi (2005, p.50), semi –structured interviews are able to go further to find the meaning of answers provided by the participants.

Secondary data

To further supplement these questionnaires, the researcher will utilize other online journals, books, written articles and magazines on the airline industry and especially Ryanair in the process of collecting data (Rigas, 2001, p. 56). The choice of this method will be based on the fact that through it the researcher will be able to link theoretical perspectives with research purposes, and that the data to be collected will elicit the findings of the analysis (Greengard, 1999, 8).

Sample size and the sampling strategies

Purposive sampling strategy will be employed in identifying the sample population that will be used in the research process. In the final synthesis as well as data collection sampling, the researcher will divide sample population into different subgroups to simplify the sampling process.

Random sampling will be made use of tremendously, because of its effectiveness and efficiency, in addition to its superiority in obtaining sample from population (Preston, 2008, p. 64). However, in some cases, random sampling might not be possible; therefore, the researcher intends to use quota sampling strategy. Furthermore, due to the significance of this research, the research intends to adopt stratified sampling technique, though in rare occasions, so that enough samples are used and classified in vital variables.

Moreover, the main reason for the adoption of stratified sampling will be aimed at ensuring that sub-groups are included in the sample, without being omitted based on the assumption of concept of representation. As a result, the researcher will be able to foster the representativeness of samples no matter the quantity of the sample, thus obtaining better estimates of the overall population.

Data analysis and presentation

Raw data will be coded and then analyzed using descriptive statistical measures such as ratios and percentages. The result will then be presented in form of text, tables, graphs and pie charts.

Research limitations

In order to carry out a comprehensive study, much time is needed for data collection in the field (Sieber, 1973, p.1340). Limited time is available for the research process.
The issue of finding a suitable respondent in the sample will be quite challenging as many employees will be engaged in their day to day work and the passengers on hurry to catch their flights. However, through coercion the sample size will be attained and the data collected.
The resources available in terms of finances will be limited for a comprehensive research undertaking. However, the researcher will obtain some grants from sponsors.

Budget

The researcher in the due course of the research has estimated the following costs:

ITEMS	AMOUNT (USD)
Data Collection costs ( questionnaire printing and posting )	1000
Interview costs (scheduling, travelling, telephone)	5000
Books, internet, and journal costs	3000
TOTAL	9000

References

Ang, C. (2007) Determinants of Demand. Web.

British Airways Annual Report (2008) Ryanair: Europe’s Greenest Airline. Ryanair. Web.

Fao (n d) Determinants of Demand and Consumption, Fao Corporate Document Repository. Web.

Greengard, S. (1999) Putting HR software to work: human resources management. Workforce, 78 (9), 4-8.

Humphrey, T. (1992) Marshallian Cross Diagrams and Their Uses before Alfred Marshall. Economic Review, 23 (4), 3-23.

Joshi, M. (2005) The Business of Marketing at International Levels. Oxford, UK, Oxford University Press.

Locke, J. (1691) Some Considerations on the consequences of the Lowering of Interest and the Raising of the Value of Money. Web.

Maloney, C. (20060 Winning Loyalty and Trust: Business’ Best Tools, Practices and Business Techniques. The AMA Events and Workshop.

Matt, H. (2003) Brand Royalty: How the World’s Top 100 Brands Thrive and Survive. Charlotte, NC, Information Age Publishing.

Michalos, A. (1995) A pragmatic approach to business ethics. Thousand Oaks, CA: Sage Publications.

neoIT (2007). Increasing Demand for Demand Management, Global Services Insights, Research Report, 5 (9), 1-23.

Philip, K. (2006) Marketing Strategic Management. 11^th edn. The International Edition.

Preston, L. (1986) Business and public policy. Journal of Management, 12 (3), 261–275.

Rigas, D. (2001) The Business of Airline, The Twenty First Century. England. New York. Routledge.

Schlesinger, L. and Heskett, R. (1991) Ending the Trend of Failure in the Service Industry. The Management of Sloon. Review Procedures, 8 (2), 18-29.

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