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Recent growth of cheap airline ticket sales is partly driven

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With revenue models in mind: "The recent growth of cheap airline ticket sales is partly driven by some ridiculously low prices. Is there a lesson for us in the way that EasyJet and Ryan Air do business?"

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Solution Summary

The recent growth of cheap airline ticket sales are partly driven. The role of low price model in the growth of business is examined.

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Introduction

Revenue model is the business plan that is implemented by a company or website by using internet to generate more revenue as well as increase profits from business operations. Advertising revenue model, direct advertising, premium subscription, and contextual advertising are used in business as a revenue model that includes all the components and functions of business (Schneider, 2010). In this paper, there will be a discussion of role of low price or cheap airline ticket in the growth of airline business of EasyJet and Ryan Air.

Role of Low Price Model in the Growth of Business

EasyJet is the UK based low price Airline Company that operates their airline business in various countries of Europe (Thompson & Thompson, 2010). Similarly, Ryan Air is one of the oldest and most successful low cost airlines of Europe that operates their business all across the world with market capitalization of £3 billion (Ryan Air, 2011). In the recent years, low cost business model plays an important role in the growth of airline ticket sales as well as airline business of both the companies.

Both airlines have adopted this business or revenue model from Southwest Airline and implemented in European markets through cost cutting and offering low fares. By using low fares ...

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