In a recent article in the Irish Times Mark Paul a Business Affairs Correspondent wrote an interesting article entitled “Ryanair axes routes to focus on bigger airports”.
Mark uses analysis provided to him www.anna.aero. It shows clearly how www.ryanair.com has transformed it low-fares business model. The main transformation is the axing of the smaller airports from their schedules. Such as Charleroi which is 46km from central Brussels and Weeze which is 70km from Dusseldorf.
The question we are asking at www.goholidaylets.com is how this changes if they continue will affect the holiday rental market in mainland Europe. The article suggests that this summer the airline will be operating fewer routes than it did last summer. It would appear that the airline has abandoned the model of flying to secondary airports which were often located miles from large centers of population. They have opted instead to operate out of larger European airports as in Rome Fiumicino. This would appear to be very like the business model that Easyjet have always followed.
No doubt its recent announcement in a drop in profits this year is the reason for these drastic changes. It is believed the number of routes operated will have fallen by a net 84, from 1,396 last August to 1,312 this August. But on top of all this is still opened over 130 new routes this year.
From a holiday rental point of view the dropping of secondary airports serving such major cities as Barcelona, Milan and Stockholm could be a worrying trend. The Irish Times overall analysis would seem to indicate that Ryanair has withdrawn summer service from a total of 10 airports since last summer. These are: Angelholm, (AGH), Constanta (CND), Doncaster/Sheffield (DSA), Jonkoping (JKG), Kalmar (KLR), Klagenfurt (KLU), Karlstad (KSD), Magdeburg/Cochstedt (CSO), and Targu Mures (TGM).
But on the up side a close look at the trend to increase service out of airports near centers of large populations which are also holiday and short stay destination bodes well for the rental market. An exciting trend is the addition of three Greek airports which make the top 10. We at Goholidylets agree that the market to Greece will grow in the future.
The holiday rental accommodation and the location of airports where budget airlines such as Ryanair and Easyjet land have always gone hand in hand. As owners and agents we need a cheap source of travel for our intending visitors. The move by Ryanair to cut some of the out of the way destination and concentration on the more expensive airports is not troubling as long as competition exists to keep fares down.