Ryanair CEO On Why The Airline Doesn’t Reward Frequent Fliers

Summary

• The CEO of the Ryanair Group rejected the idea of introducing loyalty benefits or a program into Ryanair’s operations.
• Its European rivals have certain loyalty programs.
• In the United States, such low-cost carriers as Spirit Airlines and Frontier Airlines, offer loyalty benefits to its passengers.

Michael O’Leary, the outspoken chief executive officer (CEO) of Ryanair Group, has hit back at the idea that the ultra-low-cost carrier would introduce a loyalty program, saying that if passengers wanted loyalty, they should get a four-legged pet.

“Buy a dog”

In an exclusive interview with the United Kingdom-based The Independent, O’Leary said that if travelers were looking for a loyalty program and/or loyalty benefits, they should look into buying a dog. However, its rivals in Europe, namely easyJet and Wizz Air, offer certain loyalty benefits.

“If you want something loyal, buy a dog. If you want the lowest air fares in Europe, fly Ryanair.”

For example, easyJet has the ‘easyJet Plus’ program. For an annual fee of £215 ($269), passengers get access to such benefits as allocated seating on each flight, dedicated bag drop desks, fast-track security, faster boarding, an additional cabin bag, a lowest price fare promise, and other benefits.

Rivaling loyalty programs

Meanwhile, Wizz Air, Ryanair’s rival in Eastern Europe, as well as elsewhere in the continent, offers one-month flight passes based in different countries. The low-cost carrier offers a round-trip multipass from Italy for €129.99 ($139.56), which enables passengers to book a single flight per month on all domestic and international routes from Italy. Passengers must book at least five days in advance.

In addition, Wizz Air offers the ‘Wizz Discount Club.’ The program has two tiers: Standard and Group, with the former, at €39.99 per year ($42.93), offering travelers (plus a companion) exclusive onboard coupons, discounts on certain fares, and on checked-in baggage that was purchased online. The latter offers the same benefits yet is available to five additional people.

US low-cost carriers’ loyalty programs

In comparison, United States-based ultra-low-cost carriers, such as Spirit Airlines and Frontier Airlines, offer loyalty programs, namely ‘Free Spirit’ and ‘FRONTIER Miles,’ respectively. In addition, Spirit Airlines offers the ‘Spirit Saver$ Club,’ while Frontier Airlines has the ‘GoWild! All-you-can-fly pass’ subscription programs. In addition, the latter has the ‘Discount Den,’ which provides its members access to exclusive low fares.

In its latest annual report to shareholders, which Spirit Airlines filed with the US Securities and Exchange Commission (SEC) on April 25, the airline said that its other revenues primarily are based on “the marketing component of the sale of loyalty points to the Company’s credit card partner and commissions revenue from the sale of various items such as hotels and rental cars.”

In 2023, its non-fare revenues grew to $2.9 billion, compared to $2.5 billion in 2022. In comparison, its fare-related revenue was $2.3 billion, which was lower than the result in 2022, when the airline earned $2.4 in fare revenue.

Frontier Airlines annual report to its shareholders, filed with the SEC on April 16, detailed that in addition to improving the passenger experience, its loyalty programs and benefits helped the airline increase its ancillary revenues from $12.80 per passenger in 2013 to $76.51 in 2023.