Tuesday, February 22, 2011

Ryanair to Target Advertising on Boarding Passes

The Wall Street Journal   FEBRUARY 21, 2011 By DANIEL MICHAELS
Irish budget airline Ryanair Holdings is attempting to generate more sales in other ways than tickets.  They will be tailoring pitches directed at the individual to make higher ad rates, therefore keeping ticket prices low.  Their business model is selling tickets cheap then making money selling other products and services.  Airlines world-wide are trending to focus on generating ancillary revenue, which accounts for less than 5% of revenue for most carriers.  Ancillary revenue for Ryanair is about 20%.  Ads will appear on airplane tickets, targeting spending before the flight rather than after arrival.  This new technique using passenger data may cause for an overhaul of computer systems.

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