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).
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)
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
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
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:
- 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.
- 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.
- 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.
- Strengthen Competitive Positioning Against Ryanair & Wizz
Air:
- Differentiate services by offering bundled fare packages,
improved customer loyalty programs, and flexible booking policies.
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