Ryanair in opposition to the “big idiot” Musk? The artwork of low-cost advertising and marketing | EUROtoday

Listen to the audio model of the article

If anybody thinks of classifying the insults hurled at one another by two middle-aged superstars akin to Elon Musk, the richest man on earth, and Michael O’Leary, CEO of Ryanair, Europe’s main airline, as an argument between two main girls, they’re unsuitable. After calling one another “idiots” for every week, the low-cost firm didn’t miss the chance to show the controversy in its favor and launch an advert hoc promoting marketing campaign, profiting from the visibility obtained at no cost. Bookings elevated by 3 p.c in a couple of days, vital numbers in a off-season month like January.

The provocations

The supervisor who loves to impress and make enjoyable of himself is on the helm of a bunch that has made value management an absolute precedence, a precept that has led Ryanair to be the primary airline in Europe for passengers, attaining excessive ranges of profitability accompanied by prices which are among the many lowest within the sector. The financial savings are reinvested within the progress of the corporate and in dividends for shareholders. The proof of those outcomes is within the margins: only a few airways on the planet obtain double-digit working margins. Among the 5 in Europe which have succeeded in 2024, one is Ryanair, the opposite three belong to the IAG group (Iberia, British Airways, Vueling and Air Lingus) writes Bernestein analyst Alex Irving. You save on every part from promoting prices to on-board wifi, the latter being the fuse that sparked the controversy with Elon Musk over his jewel Starlink, the satellite tv for pc web system that the Irish service aspires to put in at no cost on board its 640 planes.

Savings historical past

Ryanair is an all-round low-cost firm. For over three many years – since Herb Kelleher, founding father of the American Southwest Airlines, the primary low-cost airline on the planet, revealed the secrets and techniques to Michael O’Leary – the airline has all the time pursued the target of low working prices to acquire low fares. The firm follows the elemental ideas of low-cost aviation: speedy turnaround instances, just one sort of plane, excessive productiveness, level to level connections. It additionally extends this strategy to different sectors akin to advertising and marketing. Why pay if you may get it at no cost?

Little decorum however a whole lot of income

If you go searching, airline ads are all over the place, besides one, Ryanair: the primary European airline is nowhere to be seen. It’s a deliberate selection. Advertising prices cash and Ryanair prefers to not spend. To quote CEO Michael O’Leary: «When the corporate launched we had no cash for promoting. So we needed to give you one thing to get the media’s consideration. I do not thoughts dressing up like a idiot or making foolish faces if it helps. Frankly, I do not give a rattling about my private dignity.”

The launch of a path to Venice? O’Leary wears a gondolier costume. In Spain? As a bullfighter. Some are controversial, akin to the thought of ​​charging passengers to make use of the lavatory on board, or introducing a differentiated charge for many who are chubby, or touring standing to hold extra passengers, something to decrease prices and get seen by the press. Until the final exaggeration, don’t print the boarding card to keep away from the price of the paper. The message is all the time the identical: if you would like low-cost airfares, fly “uncomfortably” with Ryanair.