The airline industry and the travel agencies are competing with each other in order to build up a strong online strategy to attract the customers and in return generate sales. Easy jet has also developed online strategy by offering online holiday packages. It deals in mainly two types of holiday packages…
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The first is termed as ‘dynamic packaging’ which includes selling the customers tour package which involves separate charges for flight and hotels. The next type is ‘Opaque Packaging’ where the customers pay a single price for both the flight and hotels. Easy jet provided multi language option for flights but not for the holiday packages though it wanted to make the concept of holiday packages internationalise and increase the market share. To enable this service IVIS group provided the airline with a team of technology consultant to assist the team of easy jet and work tighter to understand the online processes (IVIS Group, n.d).
Strategic Development History
The airline industry of Europe is regulated by the European Regions Airline Association which represents about 65 intra European airlines which carry 70.6 million passengers to about 426 destinations in 61 European countries (ERA, 2011). Some of leading airlines in Europe are Lufthansa, Ryanair’s and Air France-KLM which have the best starting position in Europe and Easy jet and British Airways are the potential followers (ESMT, 2008, p.10). The European airline industry has shown a steady growth in the past decades and had doubled in size since 1990. The growth of airline industry was mainly because of the growth of low cost carriers. The demand for air travels is still the same as it was in the year 2000, but with a dip in the market share. But the low cost carrier has grown widely with double digit rates and has captured a large part of the market share. From just merely 5% of market share in the year 2001 it has now come up to 32% in 2008. With a high market share these low cost airlines relay on the cost advantage and low ticket prices which helps them to access new and potential market and generate new traffic. Easy jet along with Ryanair respectively accounts for 43 and 65 million passengers and are larger than other established carriers. Despite the facts the European airline industry is fragmented (HHL, n.d, p.9). Easy jet airlines have experienced a strong growth in terms of revenue over the years. The passenger demand has increased on an average of about 59.5%. It has got a strong financial background as in the year 2002, easy jet balance sheet shown an excess balance of about 400 million pounds (Easy jet-a, 2002). Strategies Easy jet strategy is based on the six strengths that support the competitive, sustainable growth and scalability. Easy jet strategy, which it had been following from the past are the airlines commitment to safety and service to its customers, low fare structure, strong branding, low cost of unit, a strong corporate culture and its multi based network (Williamson, 2002). The company
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ver, to remain competitive, these services should provide good quality to their customers through collaborative efforts of employees, management and all other stakeholders. In fact, customers’ satisfaction depends greatly on the interaction between them and employees; hence,
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