EASYJET

 

Chapter 1: Introduction

 

1.1 Aims and Objectives of the Blog Report

Tourism is a very important industry that highly influences the global economy; through its contribution, it accounts for 10% of the global foreign income and provides direct employment to more than 300 million individuals throughout the globe (World Travel & Tourism Council, 2023). In this blog analysis of EasyJet, the writer seeks to determine EasyJet’s place in the tourism industry by evaluating its history, the market it carries out its operations in, competition, and what the stakeholders anticipate. Furthermore, this report will also highlight operational issues of this airline while looking into sustainability and customer satisfaction aspects.

 

1.2 Structure of the Blog Report

In the first chapter, the goal of the report and the information included in it are stated. Chapter two focuses on defining tourism products and explores the constituents of the tourism industry. Chapter three in the course of giving stakeholders’ analysis of EasyJet explains the background of the firm, the current operation, competitors, and what stakeholders expect from the firm. In the fourth chapter, a SWOT analysis is conducted, and the sustainability measures of the company are discussed and assessed. Last of all, the final chapter, five, contains recommendations that may be implemented to ensure EasyJet grows sufficiently.


 

 

Chapter 2: Understanding Tourism Products and Analysing the Role of Components of the Tourism Sector

 

2.1 Definition of Tourism Products and Their Components

A tourism product can be defined as a set where tangible and intangible attributes are conjugated in such a way as to produce a certain tourist experience. They incorporate transport, lodging, sightseeing, and others that form an added value to the tourist (Holloway & Humphries, 2021). A tourism product is made up of various elements, which encompass all the needs a traveller requires while on his business.

Component

Description

Example

Attractions

Attractions are the core motivators for travel, including natural wonders, cultural sites, heritage locations, and entertainment facilities (Page & Connell, 2020).

The Eiffel Tower in France, The Great Wall of China, Disneyland Paris

Accommodation

Essential for tourists, accommodations range from budget hotels to luxury resorts, hostels, and alternative stays like Airbnb (Camilleri, 2018).

Hilton Hotels, Marriott, Airbnb

Transportation

This includes air, land, and sea transport that enables tourists to move between destinations (Fletcher et al., 2018).

EasyJet Airlines, Eurostar, Uber

Tour Operators

Companies that design and package travel experiences, including transportation, accommodation, and guided tours (Holloway & Humphries, 2021).

TUI Group, Thomas Cook, Expedia

Food and Beverage

Restaurants, cafes, and street food play a major role in enhancing the travel experience (Page, 2007).

Michelin-star restaurants, McDonald's, local street food vendors

Support Services

These include travel insurance, banking services, and tourism information centers that support tourists throughout their journey (Camilleri, 2018).

VISA travel cards, World Nomads Travel Insurance, Tourist Information Centers

Events and Conferences

Business and leisure travelers are drawn to international events, sports tournaments, and festivals (Page & Connell, 2020).

FIFA World Cup, Olympics, Cannes Film Festival

Tourism products combine these components to provide value for travelers and ensure economic benefits for destinations.

 

2.2 Role of Key Components of the Tourism Sector in the Wider Industry

The tourism industry is a complex system made up of multiple sectors, including aviation, hospitality, tour operations, and intermediaries like travel agencies. Each component plays a crucial role in driving the industry’s economic impact. The table below outlines the role of these key components:

Tourism Sector Component

Role in the Industry

Impact on the Wider Economy

Aviation (Airlines)

Airlines provide essential connectivity between destinations, facilitating both domestic and international travel (Camilleri, 2018). Low-cost carriers like EasyJet have made air travel more accessible, increasing tourism flows.

The global airline industry contributes $3.5 trillion to the world economy and supports 87.7 million jobs (International Air Transport Association, 2023).

Hospitality (Hotels and Resorts)

The accommodation sector provides lodging and enhances the travel experience by offering various levels of comfort and luxury (Holloway & Humphries, 2021).

The hospitality industry generated $4.7 trillion in 2022 and employed over 300 million people worldwide (World Travel & Tourism Council, 2023).

Tour Operators

Tour operators design customized travel experiences, handling transportation, accommodation, and guided tours (Fletcher et al., 2018).

Companies like TUI Group serve over 27 million customers annually, contributing billions to the tourism economy.

Travel Agencies

Traditional and online travel agencies act as intermediaries, helping tourists book flights, hotels, and tours (Page & Connell, 2020).

Online travel agencies like Expedia and Booking.com generated over $480 billion in revenue in 2022.

Food and Beverage

The food industry supports tourism by offering local and international cuisine, enhancing the cultural experience (Page, 2007).

The global restaurant industry is worth over $2.5 trillion, with food tourism becoming a major trend (Statista, 2023).

Events and MICE Tourism

Major events, conferences, and exhibitions attract millions of visitors, boosting tourism and business travel (Camilleri, 2018).

The global events industry was valued at $1.1 trillion in 2023 and is expected to grow rapidly (Allied Market Research, 2023).

Each of these components plays a crucial role in ensuring the smooth operation of the tourism sector. Aviation connects destinations, hospitality provides comfort, tour operators create experiences, and travel agencies facilitate seamless bookings. The synergy of these elements contributes to the overall economic growth of the tourism industry.

 

Chapter 3: Stakeholder Analysis

 

3.1 History and Development of EasyJet Airlines

EasyJet Airlines is one of the popular low-cost airline companies in Europe, which commenced its operations in the year 1995 by Sir Stelios Haji-Ioannou, and the aim of the company was to reduce the fares of air travel. Its initial operation saw only two Boeing 737-200 leased aeroplanes to address three routes, namely London Luton, Glasgow, and Edinburgh. Its low-cost business model is designed on the concept of copying. Southwest Airlines of the United States created a new technique in the European aviation market where the unnecessary amenities and services are removed, and the basic bare-bones fares are offered at cheaper rates (Holloway & Humphries, 2021).

Boeing 737-36N - EasyJet Airline | Aviation Photo #0910360 | Airliners.net

Source: (EasyJet, 2024)

By the end of the year 2000, the aviation firm floated on the LSE and offered their shares to the public in an attempt to capitalise on the capital needed for expansion. In 2012, it bought Go Fly, a British Airways low-cost subsidiary company that helped the firm to establish a solid foothold in London’s Stansted airport (Page & Connell, 2020). In the following years, the company continued its sustained expansion throughout Europe, offering flights to Western and Eastern Europe, and introduced flights to the most popular destinations from London, Paris, Milan, and Berlin (Fletch, Kopp, & StCRM, 2018).

A major development was in 2003 when the company was flying an all-Airbus flight-only operation in which it replaced the Boeing aircraft. It was established by 2015 that it had become one of the leading airline companies in the European continent and annually served over 70 million passengers (Camilleri, 2018). This known investment in automation, such as the mobile application, EasyJet, and self-service check-in terminals, among others, helped enhance the customers’ experiences.

EasyJet currently has over 300 aeroplanes and flies to over 155 different airports across 35 different countries and thus has asserted its dominance in the European aviation market (EasyJet, 2024). These elements can be in the areas of cost management strategy and short-haul networks. They have also shown that they are keen on sustainability as a tourism firm.

 

3.2 Present State and Operations of EasyJet Airlines (Including Statistics)

History of easyJet by on Prezi

Source: (EasyJet, 2024)

By 2024, EasyJet is still one of the leaders of the low-cost carrier industry in Europe and carries over 82 million passengers a year with flights operating through a vast network of routes (IATA, 2024). Currently, the airline operates its more than 330 aircraft, largely of the Airbus A320 family and A321neo with improved fuel efficiency and low emission technology (EasyJet, 2024). It has operational bases in many destinations, which include London Gatwick, Amsterdam Schiphol, Berlin Brandenburg, and Milan Malpensa, makes more than 1000 flights each day, and serves 155 destinations in 35 countries (World Airline Group, 2024).

They consequently recorded the total operating revenue of £8.2 billion for the fiscal year ended in 2023-24, which was 15% more than the operating revenue reported in the previous fiscal year, as found in the EasyJet Annual Report of 2024. This stems from the opening of more and more low-cost airlines triggered by the rising tourism needs after the COVID-19 pandemic. There was also a considerable share from fees, both for baggage and seat selection, as well as onboard services, which in total constituted 40% of the total revenue.

One of the most strategic elements in EasyJet’s operation is maintaining an effective fleet for their business. It has been acquiring newer and more efficient fuel-efficient models; to this, they are containing fuel costs per seat better by fifteen percent in comparison to the previous models (IATA, 2024). EasyJet has also taken measures towards sustainability through long-term goals and plans; the company aims at having net-zero carbon emissions by 2050, partly through investments in sustainable aviation fuel (SAF), experiments with hybrid aircraft, and carbon offsetting programs (Camilleri, 2018).

With regard to the customers’ satisfaction, EasyJet’s punctuality has risen from 78% in 2023 to 85% in 2024 (Statista, 2024). The improvements in the airline’s customer service, such as the new features inclusive of artificial intelligent bots as well as compensation options in chats, have helped boost passenger satisfaction, thus a rating of 4.3/5 on industry review sites.

Furthermore, the company’s customer loyalty program known as easyJet Plus has started to take form, which, in one way, is offering regular travellers priority boarding and flexible tickets. It also continues to build the EasyJet Holidays division to conduct customized holiday offers to customers because it recorded a 32% upward trend in 2024 (World Travel & Tourism Council, 2024).

3.3 Competitors of EasyJet and Their Impact

How to define your competitors - Supersonic Playground Ltd

Source: (Camilleri, 2018)

EasyJet operates in a highly competitive European short-haul aviation market, facing direct competition from both low-cost carriers (LCCs) and legacy airlines. Key competitors include:

1. Ryanair

  • Market Share: Ryanair is EasyJet’s biggest rival, carrying over 168 million passengers in 2024, nearly double EasyJet’s traffic (Ryanair Annual Report, 2024).
  • Pricing Strategy: Ryanair consistently undercuts EasyJet on price, offering fares as low as €9.99, which forces EasyJet to remain competitive by optimizing its cost structure.
  • Impact: Ryanair’s aggressive expansion into Eastern Europe and its focus on secondary airports put pressure on EasyJet’s network planning.

2. Wizz Air

  • Market Share: Wizz Air has expanded rapidly in Central and Eastern Europe, carrying 65 million passengers in 2024.
  • Expansion Strategy: The airline focuses on ultra-low-cost travel, targeting routes abandoned by legacy airlines post-pandemic.
  • Impact: Wizz Air’s cost-cutting model and its entry into EasyJet’s core markets (UK, Spain, France) create pricing pressures.

3. British Airways (BA) & Lufthansa

  • Market Share: Traditional flag carriers like BA and Lufthansa compete with EasyJet on key business routes.
  • Service Model: While these airlines offer premium services, their basic economy fares compete with EasyJet’s standard fares.
  • Impact: BA’s dominance at London Heathrow limits EasyJet’s access to key long-haul connections.

EasyJet’s strategy to combat competition includes expanding EasyJet Holidays, focusing on sustainability, and enhancing digital customer service innovations.

3.4 Stakeholder Expectations (Employees, Investors, Consumers, etc.)

1. Employees

EasyJet employs over 14,000 staff members, including pilots, cabin crew, and ground personnel (EasyJet, 2024). Employees expect:

  • Fair Wages and Job Security: Recent union negotiations led to a 7% salary increase for pilots in 2024.
  • Work-Life Balance: Pilots and crew demand better rest periods, as airline crew fatigue remains an industry-wide issue (IATA, 2024).

2. Investors

EasyJet’s primary investors include BlackRock, Vanguard, and institutional shareholders who expect:

  • Revenue Growth: Investors seek strong earnings performance following the £8.2 billion revenue report in 2024.
  • Dividend Payouts: Shareholders expect a 4% dividend yield, reflecting business stability.

3. Consumers (Passengers)

EasyJet serves over 82 million passengers annually, who demand:

  • Low Fares & Transparency: Customers prefer affordable pricing with no hidden fees.
  • Reliability & Sustainability: Travelers expect on-time flights and eco-friendly initiatives, aligning with EasyJet’s carbon offset programs (Camilleri, 2018).

4. Government and Environmental Groups

Regulators and sustainability advocates focus on:

  • Emissions Reduction: EasyJet is under pressure to meet EU Green Deal sustainability targets.
  • Consumer Protection: Governments enforce compensation policies for flight delays.

 

5. Government and Regulatory Bodies

The UK’s government as well as global aviation regulatory bodies like EASA and the CAA have anticipated that EasyJet has met the pertinent industry standards of safety and environment as well as consumer rights and safeguards. Due to the recently launched EU Green Deal, EasyJet has been compelled to work towards the amount and pace of carbonisation reduction measures and invest in Sustainable Aviation Fuel (SAF) to achieve net-zero emissions by 2050 (European Commission, 2024). There are also specific policies for passenger compensation for the cases of delay or cancellation among the expectations of the regulators.

6. Business Partners and Suppliers

Airbus and fuel suppliers, airport operators who supply aircraft, expect long-term contracts, stable and steady demand, and precise, on-time payments from easyJet. In this text, Airbus expects further demand for efficient aircraft while on airports’ side traffic remains steady and conforms with the existing slots and ground handlings (World Airline Group, 2024). Another important factor that affects EasyJet’s business is fuel price changes that might complicate the procurement processes so that the company could sustain its low-cost strategy.

Chapter 4: Analysing Challenges and Opportunities in Tourism Product Management

4.1 SWOT Analysis of EasyJet Airlines

SWOT Analysis I What is a SWOT Analysis? I OnStrategy – BioRestorative

Source: (Holloway & Humphries, 2021)

Category

Details

Impact on Business

Strengths

1. Strong Market Presence: EasyJet operates over 1,000 daily flights across 35 countries, serving 82 million passengers annually (EasyJet, 2024).

Ensures high brand recognition and a large customer base.

2. Cost-Efficient Business Model: As a low-cost carrier (LCC), EasyJet benefits from economies of scale, with an average ticket price 30% lower than legacy airlines (IATA, 2024).

Provides a competitive edge in price-sensitive markets.

3. Fleet Modernization & Efficiency: The airline operates a fuel-efficient Airbus A320neo fleet, reducing carbon emissions by 15% per seat (World Travel & Tourism Council, 2024).

Enhances sustainability efforts and cuts operational costs.

Weaknesses

1. Limited Long-Haul Network: EasyJet focuses on short-haul flights, restricting its ability to expand to intercontinental markets (Holloway & Humphries, 2021).

Limits revenue diversification and market reach.

2. Dependence on European Markets: Over 90% of EasyJet’s revenue comes from Europe, making it vulnerable to regional economic downturns (Statista, 2024).

Reduces growth opportunities beyond the European market.

3. Seasonal Demand Variability: The airline experiences peak demand in summer and lower demand in winter, impacting profitability (Camilleri, 2018).

Leads to fluctuating revenue streams.

Opportunities

1. Expansion of EasyJet Holidays: The 32% rise in bookings for EasyJet Holidays in 2024 presents a profitable growth area (World Airline Group, 2024).

Diversifies revenue streams and boosts passenger load factors.

2. Investment in Sustainable Aviation Fuel (SAF): EasyJet is investing in SAF technology, aiming for net-zero emissions by 2050 (IATA, 2024).

Enhances corporate social responsibility and aligns with EU Green Deal policies.

3. AI and Digital Innovation: Implementation of AI-driven chatbots and automated self-service options enhances customer experience (EasyJet, 2024).

Improves operational efficiency and customer engagement.

Threats

1. Intense Competition from Low-Cost Airlines: Competitors like Ryanair and Wizz Air continue to expand aggressively, challenging EasyJet’s market share (Ryanair, 2024).

Requires price and service differentiation to maintain market position.

2. Economic Uncertainty & Inflation: Rising fuel costs and inflationary pressures increase ticket prices, potentially reducing demand (Statista, 2024).

May impact consumer affordability and demand for budget travel.

3. Regulatory Challenges & Carbon Taxation: The EU’s Carbon Emission Trading Scheme (ETS) could increase operating costs for airlines not meeting emissions targets (European Commission, 2024).

Increases financial burden and necessitates faster adoption of green technologies.

4.2 Sustainable Strategies of EasyJet Airlines

1. Investment in Sustainable Aviation Fuel (SAF)

SAF has the potential to decrease emissions by 80% as compared to conventional jet fuel, and EasyJet is already involved in investing in SAF (IATA, 2024). The budget airline reached a deal with Neste and Airbus to use SAF with a target of 10% in its operating fleet by the year 2030.

2. Fleet Modernisation and Fuel Efficiency

EasyJet today has more than 330 Airbus A320 and A321neo aircrafts where A320neo and A321 aircrafts are 15% more fuel efficient than their predecessors (EasyJet, 2024). The company plans to replace ageing aircraft and launch hybrid-electric and hydrogen tech aeroplanes by 2035 together with Airbus.

3. Carbon Offset Programs

In particular, EasyJet has been the first airline in the world to make fifty percent of its flights carbon neutral from the year 2020 and 100 percent carbon neutral from November 2020 through purchasing carbon credits to offset carbon emissions (Camilleri, 2018). Such projects include afforestation/reforestation, use of renewable sources of energy, and global conservation programs.

4. Simply said, it aimed at the reduction of single-use plastics and waste management.

Another policy in area C is that EasyJet aims to halve the use of single-use plastics on its flights by 2025 and recourse to the use of recyclable food packaging as well as biodegradable cutlery instead of plastic (European Aviation Environmental Report, 2024).

5. Partnerships for Green Innovation

The airline, jointly with Airbus and Rolls-Royce as well as ZeroAvia, works on studies regarding the non-traditional methods of power plants, like hydrogen-driven machines as well as electric aviation. EasyJet plans on achieving net zero by the year 2050 as per the EU Green Deal by the European Commission (EU, 2024).


 

Chapter 5: Conclusion and Recommendations

5.1 Summary of Findings and Key Recommendations

EasyJet Airlines is one of the prominent low-cost airlines in Europe with the capacity of flying 82 million passengers on a yearly basis and having a cost leadership strategy. There are various growth prospects in the form of the airline’s significant market presence, the fleet modernisation activity, and entry into EasyJet Holidays. Nonetheless, it has problems like competition threats due to the entry of Ryanair and Wizz Air in the market, economic volatilities, and stringencies relating to carbon taxation.

Key Recommendations:

  1. Expand Market Reach Beyond Europe:
    • EasyJet should explore new markets outside Europe, such as North Africa, the Middle East, and Asia, to diversify revenue streams and reduce dependence on regional economies.
  2. Enhance Sustainable Aviation Efforts:
    • Accelerate investment in SAF and hybrid-electric aircraft to meet EU Green Deal emissions targets and reduce long-term operational costs.
  3. Leverage AI and Digital Transformation:
    • Enhance the EasyJet app, implement AI-driven chatbots, and introduce dynamic pricing models to optimize customer experience and revenue management.
  4. Strengthen Competitive Positioning Against Ryanair & Wizz Air:
    • Differentiate services by offering bundled fare packages, improved customer loyalty programs, and flexible booking policies.

 

References

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Camilleri, M. A. (2018) The Tourism Industry: An Overview In Travel Marketing, Tourism Economics and the Airline Product Cham, Switzerland: Springer Nature

EasyJet (2024) Annual Report and Accounts 2024 Available at: www.easyjet.com [Accessed 12 March 2025]

European Aviation Environmental Report (2024) Sustainable Aviation and Net Zero Goals Available at: www.eurocontrol.int [Accessed 12 March 2025]

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Fletcher, J., Fyall, A., Gilbert, D. and Wanhill, S. (2018) Tourism: Principles and Practise 6th edn Harlow: Pearson

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