Steve Endacott’s Post

Transcript

Ever booked a flight with Ryanair or maybe EasyJet? You know, those European low cost airline giants? Oh yeah. Well, today's deep dive is taking us right into the middle of their latest battle. OK. And no, it's not about leg room or those pesky baggage fees, right? We're talking about a strategic showdown that could totally change how you book your next vacation. Interesting. For better or for worse, I see. So, yeah, to help us break it down, we've got travel industry experts Steve Endicott in our corner. OK, and his latest analysis. Is really blowing the whistle on this this whole showdown OK is fascinating stuff he paints a really vivid picture of what's going on Umm so let's break it down OK first up we've got Ryanair yeah famous for their laser focus on low fares no frills service and. But let's just say they're known for maximizing their profits per seat. Yeah, Ryanair strategy has always been about volume. They wanna be the go to for budget travelers who prioritize price above everything else. And you can't argue with their success. It's been incredibly effective. Absolutely. But here's where things get really interesting. Yeah, Ryanair recently made a huge she move by shaking hands when the beach. Yeah. A popular online travel agency, or OTA for those in the know. And get this. Yeah, This is the first time ever that Ryanair is letting someone else sell their flights as part of these commissionable holiday packages. Yeah, it's a bold move for Ryanair. They're dipping their toes into the package holiday market without actually, like, building their own tour operation. Yeah, you see, by partnering with an established. They're like on the beach, right? Ryanair gets access to a whole new customer base. OK, think about it. The folks who love that convenience and security of booking their flights and hotels altogether together. Yeah. All this without Ryanair having to navigate the complexities of building out this whole other side of their business. Right. The package holiday games is a tough one. Yeah. It's a whole different beast, isn't it? Exactly. So it's like a trial run, you know? Yeah, without the commitment of a full blown relationship. I like it like a casual fling. Yeah, exactly. Yeah, But while Ryanair is out there, you know, testing the waters, Yeah, EasyJet is diving head first into the deep end. Yeah, they're all in. They're going all in on building their own in-house tour operation. Yeah. Holidays. Why go through the hassle, you ask? Well, Endicott lays out the financial incentive beautifully. Ohh. Yeah, big time. Yeah. Package holidays are a cash cow for airlines compared to just selling you a seat on a plane. Makes sense. Think about it. EasyJet can make a profit margin of around ��50 per passenger on a packaged deal, versus a measly 5 to ��10 OK for a flight only booking. Wow, that's five times the profit potential. Yeah, that is huge. It's massive for their bottom line. While Ryanair's playing the field, easyjet's putting a ring on it. Yeah, they're all in and it seems to be paying off, right? It really is. Endicott highlights that EasyJet holidays contributed a hefty ��122 million to their profits. Wow. And they're expecting that number to climb even higher in the coming years. Of course. But here's where EasyJet strategy takes a bit of a feisty turn. OK, They're not just building their own holiday empire. They're using their tech to make it pricier for OTA's, like on the beach to access their flight data. Interesting. Oh, you're talking about those API fees that everyone's been buzzing about. Yeah, exactly. I've heard this can be a real pain for travel companies. Ohh. Absolutely. These API fees are basically charges for companies to access and. Display EasyJet flight information, you know, right on their own platform, right? And Endicott points out the EasyJet is charging a hefty ��24 per person, OK? Or a whopping ��96 per family. Just to access this data. Ohh. And frankly, that's way higher than what it actually costs them to keep the technology running, right? It's a strategic move to make their own holiday packages more appealing to customers. So they're trying to nudge travelers towards booking directly with EasyJet holidays. Exactly. Clever. But is it fair play? Well, that's the $1,000,000 question, isn't it? Right On the Beach certainly doesn't think so. OK, They've come up with a pretty clever workaround, OK, called self book and save. Self book and save. It's a brilliant counter strategy. OK, I'm all ears. Tell me more about this self book and save tactic. What's the play here? So basically On the Beach is essentially saying OK EasyJet, you wanna charge those hefty fees we'll just go around them right? They're encouraging customers to bypass those charges by booking directly on easyjet's website, but through a special link provided by On the Beach. This way customers still get all the benefits of booking through On the Beach, like ATOL protection, which. By the way, is a UK financial protection scheme that ensures you won't be left stranded abroad if your travel company goes bust and they still get on the beaches. Awesome customer service, but without easy jets, inflated API fees. That is seriously clever. So it's like a win win for travelers who want that security of a package deal, right, but don't necessarily want to be forced into easyjet's ecosystem? Exactly. You hit the nail on the head. This is fascinating stuff. It'll be really interesting to see how EasyJet responds. Yeah, but. This whole back and forth between airlines and OTA's is just a prime example of how that travel industry is changing right in front of our eyes. Absolutely. It's becoming more digital. Yeah. More about who controls the platform and ultimately more competitive. And as they say, competition is usually good for the consumer. Absolutely. The real winners in all of this are the travelers, right? This battle for your holiday bookings means we'll likely see better prices, more flexible options, maybe even new types of travel packages popping up. So what does this mean for someone, you know, planning their next getaway? Should they be booking directly with airlines? Yeah. Sticking with OTA. Or is there a different strategy altogether? That's the $1,000,000 question. There's no one-size-fits-all answer, right? Ryanair's partnership with On the Beach and easyjet's in-house strategy are just two examples of how the travel landscape is evolving. Yeah, ultimately, the best approach is to do your research, compare prices and options from different sources, and really understand the tradeoffs. Involved great advice. Knowledge is power, especially in this ever changing world of travel. Couldn't agree more. This whole battle between Ryanair and EasyJet, you know with OTA's caught in the crossfire, it really highlights a much larger trend. This increasing digitization and platform ization of the entire travel industry. Yes, fascinating. As technology advances and these companies continue to innovate, yeah, who knows what exciting changes are in store for how we plan and book our future adventures. It's an exciting time to be a traveler. That's for sure. It really is. And one thing certain, this battle for your business is far from over. That's right. Keep an eye on those airlines and OTA's folks. They're constantly adapting and innovating. Which means more options and hopefully better deals for travelers like you. And there you have it, another deep dive of completed. Until next time, happy travels.