Kenny Jacobs May The Evolution of Europe's Leading Airline - Lessons for Retail!

Transcription

1 Kenny Jacobs May 2017 The Evolution of Europe's Leading Airline - Lessons for Retail! 1

2 I m going to talk about: 1 Ryanair: Overview 2 Change at Ryanair 3 Always Getting Better 4 My View on Irish Retail 5 Lessons for Retail 6 Q & A 2

3 Overview 3

4 E u r o p e s N o. 1 C ove r a g e 86 bases 34 countries 200+ airports (105 Prim) 1,800+ routes 130m c mers 395 x B x B737 order 4

5 E u r o p e s N o. 1 M a r ke t S h a r e ( 1 5 % ) Country (Cap m)* No. 1 No. 2 No. 3 Share UK (134) easyjet BA 18% Germany (125) Luft Air Berlin 7% Spain (122) Vueling Iberia 18% CEE (93) Wizz Aegean 15% Italy (91) Alitalia Easyjet 27% Greece (27) Aegean easyjet 16% Portugal (25) TAP easyjet 19% Poland (19) LOT Wizz 29% Ireland (18) Aer Lingus BA 50% Belgium (17) Brussels Jetairfly 29% *(Note: CapStats intra Eur Departing capacity) 5

6 Eur ope s No. 1 Gr owth 120 (Source: Annual Reports, company forecasts) 6

7 Change at Ryanair 7

8 B a c k t o b e i n g t h e G o o d G u y s O f A i r Tr a ve l 8

9 B r a n d P l a n. M a d e S i m p l e Likeable Future Today Useful BUT ALWAYS DIFFERENT! BEING NICE (ENOUGH) IS FINE WHEN YOU LEAD ON PRICE 9

10 W ho We re Like 10

11 Always Getting Better 11

12 Always Getting Better Every change program needs a north star and a map to navigate by Fix the things c mers don t like Improve the travel experience ALWAYS GETTING BETTER ALWAYS GETTTING BETTER Improve the digital experience Develop the offer Improve the brand & marketing IMPROVE TX IMPROVE X Drive Retention and Returns IMPROV E B&M 12

13 A l w a y s G e t t i n g B e t t e r Year 1 Year 2 Year 3 New Website Reduced Fees GDS & Corporates Business Plus Free 2 nd Bag Allocated Seating Ryanair Car Hire New Native App Customer Charter US Website New interiors New Uniforms My Ryanair One Flick Purchase Simplified bags Ryanair Rooms New Leisure Plus Ryanair Holidays 13

14 A G B Ye a r 4 1. Connecting Flights (Ryanair, then others) 2. Lower Fares & more of them 3. More Bases, Better Frequencies Frankfurt, Naples bases open 4. My Ryanair Phase 2 5. Plus Products Improved 6. Ryanair Holidays All Markets 7. Ryanair Rooms more partners, more choice 8. Amazon of Travel - Better Search - Travel Guides - Express Booking - Auto Check-In - Ryanair Transport 14

15 AGB good for customer s, people & shar eholder s 2013/ /17 Traffic 79m 120m Loads 80% 94% Profits 520m > 1.3bn Bases Satisfaction Ratings Poor 92% (V.Good-Excellent) Unit cost

16 Always Getting Better What Worked Load factors, traffic numbers, market share, profit It delivered a better experience for customers It was fast It fixed and improved the things that matter It kept the baby in the bathwater (low cost, simplicity) It sums up new Ryanair s core value DIY don t use consultants 16

17 Irish Retail 17

18 A Mar keting Plan T hat Fits On A Napkin Ryanair Marketing Strategy 1. Be like Aldi on: - Price - Cost - Quality 2. Be like Amazon on: - Simplicity - Digital - Data 3. Execute faster than anyone = Low Fares. Made Simple 18

19 My V iew on Irish Retail Agile and innovative Government should do more to support But Prices are too high Amazon not so prime Online/Home Delivery limited Choice limited in food & non food 19

20 Retail Br ands I Miss fr om UK 20

21 10 Lessons for Retail 1. Clear positioning is a must (can t be everything to everyone) 2. Real price leadership always wins 3. Get the basic operation right 4. Spend less on brand/advertising 5. Faster thinking and even faster execution 6. Loyalty schemes are only a cherry on cake 7. Your website/app/mobileweb are vital 8. Use Social (like Misguided, Paddy Power) 9. Get and use as much customer data as you can 10. Always have something new (be interesting) 21

22 Loyalty i nitiat i ves won t fix bad value or ser v i ce Loyalty Service Loyalt y Price 22

23 Discount & Luxur y Br ands W in Middle Ground SQUEEZED 23

24 Summar y AGB delivers for our customers, people & shareholders Fast change/avoid too much strategy Keep the baby in the bathwater Price & value for money win Clear positioning is a must 24 Bright future for Ryanair through focus & simplicity 24

25 SUMMER IS COMING! Book on Ryanair.com before midnight, Thu 11 th May 25