Ryanair finally focuses on package holidays as budget carrier struggles to attract more tourists
Ryanair is focusing on package holidays as the company seeks to attract more tourists.
The airline’s CEO, Michael O’Leary, has long opposed the sale of package holidays, arguing it would distract from the company’s main objective: to dominate short-haul travel in Europe.
But Mr O’Leary said this week he would review the situation once Ryanair had achieved as much growth as possible from expanding its Boeing fleet.
Speaking to The Telegraph, he said: ‘I wouldn’t rule out setting up a holiday department.
“The holiday product is probably a reasonable way to charge higher rates and revenues and package it all together.”
This comes after the airline reported in July that profits had fallen by almost 50 percent this summer.
Ryanair CEO Michael O’Leary said he would review the situation once Ryanair has achieved as much growth as possible through the expansion of its Boeing aircraft fleet
Ryanair is considering a possible launch of package holidays as the company struggles to attract more tourists (Stock photo)
Price-conscious customers postponed their summer holiday bookings with the budget airline, saying this contributed to a 46 per cent drop in profits to €360 million (£303 million) compared with the previous year.
Average flight prices fell 15 percent to €42 (£35) and the average fare on Ryanair in June was €41.93, down from €49.07 the year before.
Meanwhile, rivals easyJet and Jet2 have reaped the rewards of package holidays this year, underlining the value of a package holiday offering to customers.
Mr O’Leary added that accommodation in Spain, Italy and Greece had become more expensive, meaning more people would opt for a package holiday.
He told The Telegraph that easyJet Holidays had been “reasonably successful” since its relaunch in 2019 under CEO Johan Lundgren.
However, the Ryanair boss said Easyjet was forced to take the step because the airline focuses mainly on airports such as London Gatwick and Paris Charles de Gaulle, where operating slots are expensive and hard to come by.
Mr O’Leary praised Jet2’s operations but said there were “very few seat or scheduled services” and “they have no presence outside the UK”.
Despite falling profits, Ryanair’s passenger numbers rose 10 percent to 55.5 million, with total revenues falling just one percent to €363 billion.
Passenger numbers are predicted to increase by 8 percent this year.
