Published on : Tuesday, May 24, 2016
Michael O’Leary, CEO of the top European airline Ryanair, recently announced that the airline is going to slash its airfare to encourage tourists to roam around Europe again. The consequent terror attacks on Paris, Brussels and EgyptAir flight 804 somehow managed to scare all the prospective tourists to go back to their shells, where they feel unharmed and protected. The sudden decline in the number of tourists is harming both the travel industry and the aviation industry, which is eventually weakening the backbone of the entire economy. To cope with the blow, Ryanair has decided to allure tourists by providing them with offers that they will never be able to turn down.
The company is about to give 7% discount on an average, up to March 2017. During autumn and winter, they will be giving sturdy discounts on tickets.
O’Leary said, “People become a little bit more reluctant, we roll out lower prices and more stimulatory airfares, and people respond by snapping up those cheap prices.” He also added, “We are lowering fares. We’ll continue to lower airfares and keep people flying, not just this summer but for the remainder of the year as well.”
Apart from Ryanair; EasyJet, Lufthansa, British Airways and Iberia are also facing a low demand for flight tickets.
According to analysts, lowering the fares might stimulate the demand for airline tickets, but those who are truly afraid of facing terror attacks, might never budge from their decision.
David Holohan, the chief investment officer at Merrion Capital Group commented, “I think Ryanair’s strategy of lowering fares works two-fold by both spurring demand from travellers and also by widening the gap between Ryanair fares and its competitors.”