RYANAIR could soon offer package deals to holidaymakers, despite insisting for years that wouldn’t be an option.
The budget airline’s boss Michael O’Leary has had his sights set on being the dominant short-haul carrier in Europe and always ruled out offering package holidays in the past.
Ryanair is considering launching package holiday deals in the near future[/caption]
Michael O’Leary has previously been opposed to the idea of package holidays[/caption]
However, it looks like he may have had a change of heart, revealing at the end of last week that he will consider it again in the near future.
Speaking to the Telegraph, O’Leary said that it was a way of increasing fares, while also helping customers save money on accommodation.
He said: “I wouldn’t rule out setting up a holidays division. The holiday product is probably a reasonable way of charging higher fares and yields and for wrapping it into a package.
“Accommodation in the Canaries, Spain, Italy, Greece, has been appreciably more expensive, and that has maybe pushed more people into these kinds of holiday packages.”
When looking at the packages put together by competitors like easyJet and Jet2, O’Leary said they were also a good way of making extra money from limited slots at larger airports.
Operating from places like London Gatwick, for example, is more expensive than from smaller regional airports, while new slots are less readily available.
He continued: “Holidays are a reasonable way for them to try to monetise that scarce capacity at expensive airports. We on the other hand are taking lots of new aircraft and still expanding.”
The move to package holidays would only come once the airline’s fleet has expanded as much as it can, with new aircraft on the way.
The situation will be reviewed once the expansion plans are completed.
Currently, O’Leary is waiting for a delivery of new planes from Boeing, but their arrival has been delayed, causing him great frustration.
He told The Times that “it is not fun dealing with Boeing at the moment” with the aircraft manufacturer under-delivering on the number of planes Ryanair has ordered.
O’Leary continued: “We were supposed to get seven planes from Boeing in July. We got five.
“We were supposed to get ten in August. We’re going to be lucky to get five, which will include two of the July delay deliveries.”
The airline has claimed that it has lost an estimated €500million (£420m) of revenue this year because of Boeing delays.
A spokesman for Boeing said that it “deeply valued” its partnership with the airline, and “sincerely regrets” the impact the delays have had.
They continued: “We know we have more to do to meet our delivery commitments. Our team is working hard to build 737 Max aircraft to support Ryanair’s next era of sustainable growth.”
The delays mean Ryanair has also had to adjust its forecasts for passenger numbers, which were based on the new planes’ arrivals.
The carrier had hoped to serve 205m passengers this year, but is now estimated to deal with 198m instead.
Package Holidays Explainer
When booking a holiday it’s hard to know whether you should book everything individually, or let someone do all the booking for you.
With a package holiday, traditionally everything is bought and paid for in advance, sometimes even including food and drink if holidaymakers are staying in an all-inclusive resort.
That means that the total cost will cover flights, transfers from the airport, accommodation and food and drink.
It’s a popular option for people who don’t like getting caught out by surprising unknown costs after arriving at their destination.
And it can work out cheaper overall, with people only needing to bring money for whatever they choose to spend money outside of their resorts.
However, booking flights and accommodation can also work out to be a more cost-effective option for people, if they know where to look, so it’s up to the individual holidaymaker to pick which is the best option for them.
Consumer expert Harry Wallop believes that all-inclusive deals offer peace of mind to holidaymakers, especially those who aren’t experienced with holiday booking, with rising prices also a consideration.
He told Sun Online Travel: “Package holidays seem to be enjoying quite a bit of a revival because you can more or less book now and know that is the price you’re going to end up paying, especially if it’s all-inclusive.
“It gives people the peace of mind that, though prices are going up and up, you know what you will end up paying for your holiday.”
Garry Wilson, chief executive of easyJet holidays told The Times that the appeal of the holidays lies in not having to pay extra if you don’t want to.
He said: “The kids want to go to the waterpark, that’s €50. The kids want to go for pasta, that’s €50. The kids want ice-cream, that’s €50.
“They can get all of that in these all-inclusive hotels and that’s the price locked in.”
Meanwhile, this airline’s sale has discounted city breaks and beach holidays.
And this is the holiday booking ‘sweet spot‘ that saves passengers hundreds of pounds.
Ryanair is waiting on the delivery of new aircraft from manufacturer Boeing[/caption]
