It really took a long time to arrive. On a cold winter morning, Ryanair announced a new plan. Ryanair Holidays. Budget-friendly package holidays have been launched due to “incredible demand”.
This was in 2016. Just two months later, Ryanair Holidays was effectively shoved into one of the abundant bin bags offered by cabin crew towards the end of the flight. The Irish airline accused the holiday software provider of “screen scraping”, canceled the entire project and has not tied a blue-yellow ribbon around the package holiday since.
It actually doubled in the opposite direction. Not only does Ryanair sell holidays, but Michael O’Leary has declared war on Online Travel Agents (OTAs) who do so, branding them “pirates” and “scammers” for their profit margins, cancellation fees and baggage charges. (before you say pot/kettle) it can actually be a lot more than Ryanair’s own fares.
The basis for Ryanair’s campaign against OTAs is that they do not always pass on accurate customer information, making it difficult to issue refunds or flight updates. That’s why last summer the airline introduced an identity verification system for anyone booking an OTA package holiday that includes a Ryanair flight. Ryanair says there is a way to make sure contact information is correct. OTAs say it is “invasive” and that encouraging customers to book directly with Ryanair is a complicated hurdle.
The turmoil came to a head earlier this month when leading agencies including Booking.com, Kiwi and Kayak unexpectedly pulled Ryanair flights from their websites; This was a move that would reduce short-term passenger numbers by 2 percent, according to the airline. But even a small decline like this could mean a drop in profits.
Given this unplanned absence, it’s little surprise that Ryanair this week announced a brand new collaboration with its biggest OTA: Loveholidays, which Ryanair’s Dara Brady says is “legitimate” and “invested in the customer” (read: not pirates). Isn’t this a knee-jerk reaction to the 2 percent drop in bookings? “It’s definitely not a response to that,” Brady says.
Whether you believe it or not, this is definitely a historic moment as this is the first time Ryanair has entered into a formal partnership agreement with an online travel agency. What’s in it for every party? Ryanair has customer details, a zero profit guarantee and lots of bookings. Loveholidays can now offer customers the full Ryanair inventory, the luxury of avoiding the verification process and the best possible price guarantee.
A kind of ceasefire. But underlying this decision lies a cold reality for Ryanair: for the business to continue to thrive (it wants to increase its annual passenger numbers from 168 million in 2023 to 300 million by 2034) it will need the bums of package holidaymakers on its seats. But these will have to come from a third party because, unlike easyJet and Jet2’s holiday programmes, the Ryanair Holiday concept will never become popular.
Of course they can try again. And that wouldn’t be surprising; Package holidays are booming as customers look for certainty in their holidays. Jet2holidays has added an extra 850,000 seats for 2024. Tui increased capacity by half a million and easyJet holidays (launched in 2019) almost doubled its offering to 2.2 million seats.
But what they offer, as well as the best online agencies protected by Atol, is a friendly voice on the other end of the phone and the assurance of refunds and support if things don’t go as planned.
Ryanair, on the other hand, has built its brand around its no-nonsense approach to customer service. Last year the airline charged £110 to print outbound boarding passes from an elderly couple who mistakenly brought their return passes to the airport. Ryanair did not apologize. It was stated that the passengers (Mr and Mrs Jaffe, aged 80 and 79) were “charged correctly” because they “did not check in online”.
British people are willing to lower their standards for an hour or two if it means a cheap flight. But are we going to cut corners for the sake of the holiday itself? Its service remains basic and add-ons remain central to its business model: boarding pass reissuance fee is £20, flight change fee is £45 and name change fee is £115.
What would a Ryanair Holiday probably be like? Is there a price increase in hotel sun loungers? Hourly towel fee? Scratch cards on demand?
For now, with Booking.com and its partners baring their teeth, Ryanair has no choice but to step into the world of package holidays with this latest partnership. Because yes, British people love cheap flights. But what we really love is going on vacation.