Essays on Undertake A Marketing Audit For An Airline Or Hotel Case Study

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The paper "Undertake A Marketing Audit For An Airline Or Hotel" is a great example of a Marketing Case Study. Ryan Air is an Irish airline that has low-cost services and is based in Dublin Ireland. The airline has its operation in the Dublin airport and Stansted airport. The Ryan Air Company began its operation in 1985 and had passengers between Waterford airport and London Gatwick. According to Allaz, & Skilbeck (2005), during its initial operation, the company has about 5000 passengers. By the year 1989, the company had a total number of 365 employees with a total number of passengers of about 6000.

Despite its growths, the cost of the airline grew drastically resulting in losses of about 20million pounds in four years. In 1991, the management of Ryan Air was changed which resulted in a major overhaul of the business organisation. The new management was able to adopt the southwest airline operation framework which was based on low cost services. In addition, the company was able to reduce the number of routes from 9 to five. According to Boesch (2007), by the year 1997, the company had increased its routes up to 21 and was operating in Ireland and the United Kingdom.

As a result of the low cost services, the business organisation recorded tremendous growth over the years. Currently, the Ryan airline is the biggest budget airline in the world with a total number of 5290 employees. Between the year 185 and 2011, the number of Ryan air passengers have grown from 5000 to 150000. This makes the first European cheap airline which has been able to maintain low cost services (Boesch, 2007). Financial Audit of Ryan Air Company In order to understand the financial audit and the marketing audit, it is crucial to understand the ways in which a company is able to expand its operations.

Hence, the profitability and returns of shares in the business organization are crucial. In addition, understand the revenues, costs and other metrics is also important. Profitability and Share Returns Although the Ryan air company offers low costs services, the business organization is among the most profitable organizations in Ireland and the world at large. The company was affected by the global financial crises in 2008b/ 2009n but was able to rebound back.

In 2012, the company was able to realize a profit of 747 million US dollars total revenue of 5855 million USD. This means that the business organization was able to post net profits of about 13 percent. This was almost twice the profits that were realized by some of its competitors such as EasyJet (Ryanair, 2012). Costs and Revenues The business organization has been able to maintain its costs as well as increase its revenue over a long time.

This has enabled the company to expand its operations from Ireland to the United Kingdom. The rental expenses of the business organization have remained relatively small as the business organization is able to finance most of its planes. In the year 2012, the rental expenses of the company reduced by 6 percent. This enabled the company to channel its finances to other activities of the company. In addition, the business organization has a way of depositing some of its air crafts when they are still having economic values.

For example, its depreciation is valued after 23 years; the air crafts still have a good economic life. The revenues of the business organization are from passengers. There was an increase in passenger related revenue in 2012. In addition, other non-flight related revenues such as internet use and other in-flight services increased in the same year by over 77 percent (Ryanair, 2012).

References

Allaz C. & Skilbeck J 2005. The History of Air Cargo and Airmail from the 18th Century. Christopher Foyle Publishing; First English language edition.

Boesch F 2007. The Ryan Air Model - Success and Impact on the European Aviation Market. GRIN Verlag

Morris P 2008. Macro-economic trends in the aviation industry. Australasian Air Finance Conference SYD. Available at http://www.ascendworldwide.com/userfiles/Australasian_AirFinance_Conference.pdf. Accessed on 28th April 2014.

Ryanair 2012. Ryanair Annual Reports. Available at http://www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. Accessed on 28th April 2014.

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