The distinctions between Europe's low-cost carriers and their full-service forebears are disappearing
By M.R.
THREE years ago, taking just one flight with Ryanair would be enough to send a shiver down the spine of a European business traveller. The prospect of back-to-back flights with the airline—planning your own connections with no insurance against delays—was positively harrowing. A lot can change in three years.
Michael O'Leary, Ryanair's chief executive, recently told the Irish Independent that the low-cost carrier, Europe's largest, will soon begin trialling airside transfers at London Stansted and Barcelona El Prat. The move marks a departure from Ryanair's point-to-point business model, bringing it closer into line with the hub-and-spoke operations of traditional network carriers. Instead of flying you from A to B, Ryanair will begin accepting—and presumably guaranteeing—onward bookings to any number of destinations.
On the surface, the move seems to be an obvious one. Ryanair flies well over 100 routes from Stansted, creating ample opportunities for customers to switch planes. Upon landing, its connecting passengers currently have to pass through customs and immigration, collect their checked baggage, and then endure a second round of security screening to catch the next flight. That can be a time-consuming process, making Ryanair reluctant to guarantee its connections. Airside transfers would smooth the process and allow the company to sell through-tickets on its website.
Mr O'Leary’s priorities are changing. In the past his obsession was attacking costs to secure tantalisingly low fares that created their own demand. Paying staff to facilitate transfers and investing in non-essential IT infrastructure were anathema. Furthermore, anything that added complexity would have risked making aircraft turnaround times longer. For any low-cost operation, getting planes back into the air as quickly as possible trumps all. If passengers wanted to book two separate flights, they were welcome to do so. But Mr O'Leary had no intention of holding their hands.
Now he will do just that. In 2013, when Ryanair first announced its plan to rehabilitate its toxic reputation for customer service, many were sceptical (includingThe Economist). But the ensuing years have proved the naysayers wrong. Gone are the punitively high surcharges and obfuscatory booking systems designed to trick customers. In their place are generous baggage allowances, a slick consumer-friendly website, and an ever-obliging social-media persona.
The idea is to woo more business travellers. Mr O'Leary launched a "Business Plus" service two years ago, offering more flexibility and comfort for a higher airfare. More recently he unveiled "My Ryanair Club", a frequent-flyer programme (albeit without "cards and statements and all that administrative waste," Mr O'Leary notes). Now he is making life easier for corporates to book multi-city tickets.
Business travellers will not be the only beneficiaries. Search for flights from Marrakech to Edinburgh, for example, on Ryanair.com and the booking engine comes up blank. Most comparison websites follow suit, instead suggesting expensive over-night connections via Madrid (with full-service Iberia) or London Gatwick (with full-service British Airways). It is only by breaking up the journey into two stages—Marrakech to London, and London to Edinburgh—that Ryanair and Stansted emerge as the clear first choice, offering cheap transfers with a short layover.
By increasing visibility of these hidden connections, Ryanair is helping customers make better-informed decisions. The approach will "inevitably" be broadened to rival operators, Mr O'Leary says, enabling transfers with full-service carriers at their respective hubs. A provisional deal has already been struck with no-frills Norwegian Air for long-haul transfers through Scandinavia. Interlining, whereby airlines table complementary flight schedules to swap passengers, is another of the practices historically avoided by Ryanair for reasons of complexity. As it moves further into this sphere, one of the few remaining distinctions between Europe's low-cost carriers and their full-service forebears will disappear.
