Ryanair Considering Offering Package Holidays

Ryanair has set its sights on a foray into the package holidays business as the company battles to attract more tourists.

Ryanair’s CEO, Michael O’Leary, has softened his stance on package holidays, suggesting that the airline may enter the market. Long opposed to the idea, O’Leary has now indicated that he would consider a holiday division once Ryanair’s fleet expansion is complete. This shift comes as rivals like easyJet and Jet2 have seen success with their package offerings.

Keeping Up with Rivals a Factor in Decision

Ryanair’s recent financial results have been a factor in this change. The airline reported a significant drop in profits this summer, partly attributed to delayed bookings and increased competition. O’Leary acknowledged that the rising cost of accommodation in popular destinations might have pushed more travellers towards package deals.

While O’Leary praised Jet2’s success in the package holiday market, he emphasised that Ryanair’s focus remains on low-cost, scheduled flights. However, the airline’s growing fleet and the potential for increased revenue through package deals may make it a more attractive option in the future.

Ryanair’s Profits Down 50 Percent This Summer

The announcement comes following the announcement of concerning numbers for the airline Ryanair reported an almost 50% slump in profits this summer.

It seems that price-savvy customers have delayed booking their summer holidays, with the budget carrier blaming this reluctance to book for the 46% drop in its profits. O’Leary reported profits of €360m (£303m), compared with the previous year. 

Ryanair Forced to Lower Prices

Average plane fares this summer were reduced by 15% to  €42 (£35). Ryanair’s average flight cost just €41.93, down from €49.07 last year.

At the same time, rivals like Jet2 have been reaping the rewards of offering package holidays and tapping into a market that Ryanair so far haven’t ventured into. 

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O’Leary pointed out that accommodation in holiday hotspots like Spain, Italy, and Greece have become more expensive. This may have pushed more people towards looking into holiday packages to keep the prices down.

Outside Factors Forcing Airlines’ Hands

O’Leary admitted to The Telegraph that easyJet package holidays had been ‘reasonably successful’ since its launch in 2019. However, the Ryanair top dog said that easyJet had been forced into the move as their most successful airports- London Gatwick and Paris Charles de Gaulle- charge high rates for operating there. The move to offer packages was an attempt to offset some of these high costs.

Despite a decline in profits, Ryanair saw a 10% increase in passenger numbers, reaching 55.5 million. While overall revenue only dropped by 1%, lower fares contributed to the decreased profitability. The airline anticipates an additional 8% increase in passenger numbers this year.

Would You Go on a Ryanair Package Holiday?

Package holidays offer families a cost-effective way to go on a fuss-free holiday. Would you trust Ryanair to organise your package holiday? Let us know in the comments!