EASYJET - PRICING STRATEGY

EasyJet - Pricing Strategy

EasyJet - Pricing Strategy

Introduction

EasyJet Airline Company Limited (EasyJet) is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports. The parent company, EasyJet plc, is listed on the London Stock Exchange (LSE: EZJ) and is a constituent of the FTSE 250 Index. As at 30 September 2009, it employed 8,000 persons, founded all through Europe but mostly in the UK. EasyJet has glimpsed fast increase since its establishment in 1995, having developed through a blend of acquisitions and groundwork openings fuelled by consumer demand for low-cost air travel. The airline, along with franchise airline EasyJet Switzerland, now functions over 180 aircraft, mostly Airbus A319. It has 20 bases over Europe, the most significant one being London-Gatwick. In 2009, EasyJet conveyed 45.2 million passengers.  And is the second-largest low-cost carrier in Europe, behind Ryanair.

EasyJet was boasted in Airline sequence announced on ITV which pursued the airline's procedures at London Luton and subsequent at other bases. EasyJet's founder, Sir Stelios Haji-Ioannou, was boasted very powerfully in the series. (Frank, 2004, pp. 45-54)

 

Marketing Strategy

EasyJet's early marketing strategy was founded on "making soaring as inexpensive as a pair of jeans" and advised tourists to "cut out the journey agent". Its early advertising comprised of little more than the airline's phone registration number decorated in brilliant orange on the edge of its aircraft. (Graham, 2007, pp. 24-31)

 

EasyJet Strategy

EasyJet, like Ryanair, scrounges its enterprise form from United States carrier Southwest Airlines. Both airlines have acclimatized this form for the European market through farther cost-cutting measures for example not trading connecting air journey or supplying complimentary snacks on board. The key points of this enterprise form are high aircraft utilisation, fast turnaround times, ascribing for extras (such as main concern boarding, contain luggage and food) and holding functioning charges low. One major distinction EasyJet and Ryanair have from Southwest is they both go by plane a juvenile fleet of aircraft. Southwest have a fleet age of 14.1 years while easyjet's fleet age is just 3.6 years. (Mark, 2008, pp. 14-16)

Pricing Strategy of EasyJet

 EasyJet, one of Europe's most thriving low-cost short-haul airlines, has a straightforward pricing structure. For a granted air journey, all prices are cited one-way, a lone price prevails at any issue, and, in general, prices are reduced early on and boost as the exodus designated day approaches. We observe from these principles and from the empirical part of this paper that EasyJet uses three distinct strategies:

It does not offer last-minute deals.

It boasts a lone class and permits price be the sole variable that controls demand.

It varies the time at which permits are first suggested for sale (duration of sale). The first two principles are in stark compare to customary airline pricing strategies.

 

Many airlines offer last-minute agreements, either exactly or by ...