Promotional and Marketing Activities in Travel and Tourism easyJet case study source: © easyJet airline company ltd. Background From 1987 onwards, there was deregulation and an open skies policy within the European Union. This opened up opportunities for additional airlines to enter in to what was at that time a high cost, highly competitive, but restricted European market for air travel. easyJet ‘Fast Facts’ These ‘Fast Facts’ about easyJet are taken from a presentation made in October 2004 by the Marketing Manager of easyJet North West England: Launched November 1995 No frills, low cost short-haul airline Strongest European low-cost brand Dense point-to-point network – most popular airports – large population areas 93 aircraft – average age just 4.5 years highly utilised fleet 188 routes between 55 key European airports youngest fleet in Europe
History and Development The company was founded by Stelios Haji-Ioannou. easyJet has grown from offering flights between Edinburgh and London Luton and Glasgow and London Luton, to offering 192 routes from 59 European airports. The routes stretch from Inverness in the Highlands of Scotland (north), to Athens in Greece (south), and from Faro in Portugal (west) to Tallinn in Estonia (east). Initially the company used two Boeing 737 aeroplanes. There are now 93 planes in the fleet. source: © easyJet airline company ltd. easyJet became a Public Limited Company in November 2000. In 2002 Stelios Haji-Ioannou retired as Chairman and resigned as a Director of the Board, but he and his family continue to hold a majority shareholding. He also controls other easyGroup companies including easyMoney, easyCar.com, and easyValue. easyJet operates independently from the other companies in the group although there are agreed cross-marketing activities where one company will include information about another company’s products and services within their promotional material. Staff From September 2004, 3,727 employees were working for the company. This was an increase in just one year of 355 members of staff. Cabin staff dress in orange coloured tops reflecting the company’s informal corporate style. The company website states that ‘ties are banned except for pilots!’ Office staff are also encouraged to dress casually.
source: © easyJet airline company ltd. Products and Pricing easyJet is now an established ‘no frills’ airline, preferring to provide economical air travel by cutting out the extra products and services that add to the overall cost of the air fare. Stelios based his operation on a basic service airline operation in the United States known as Value Jet. The website states the company philosophy is to keep costs low by: “Removing the unnecessary costs and ‘frills‘ which characterise ‘traditional’ airlines.” The Marketing Manager for easyJet North West England explained in her autumn 2004 presentation:
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