Hay friends, let try something new this time instead of theory let look at practical issues related to internet. Today we will have a look at easyjet case study.
The evolution of easyjet’s online revenue contribution
As per the case study followed in class the success of easy jet was not only because of the cheaper flight cost but also the adaptation and flexible thinking of its founder Haji-Ioannou.
In early 1990’s the easy jet founder Haji-Ioannu use to think that “internet is of no use and does not serve any thing to any one”. But that was not the case in 1999 when easy jet made record sales of 135,000 seats online which accounted to 30% of total sales. By applying strategic decision in March 2000 easyjet increased its online discount to £2.50 for a single trip and as a result by September 2000 internet sale reached 85% of total sales, by 2003 internet sales was over 90% of total sales.
When a basic trail site was launched, the founder kept a close eye on how popular the site and booking phone line was (he kept a separate phone number on site to trace the number of users). A steady rise in the number of calls occurred as a result easyjet call centre eventually ran out of space to handle its growth. The founder had two options either establish a new call centre wroth of £10 million or start sales online, then easyjet founder decided to start its sales online. The transformation was easy because the traditional channel used was 100% phone booking and there was no potential channel conflict as any intermediates or travel agents were involved. Thus easy jet successfully started its online sales in 1998 and was quite successful.
- For promoting its brand easyjet frequently advertised its internet only promotions in news paper. The easyjet website acted as a PR tools for its founder to promote sales.
- Easyjet even introduced easyEverything a chin of 400 seat capacity internet café originally offering access at £1 an hour and people can access easyjet website for free while using this internet café.
- EasyRentacar a low cost car rental business offering car at £9 a day this was possible because of offering a single type car and being internet only business.
At present easyjet website has proved that with proper communication channel it easy to promote sales and increase the profits. As per the exercise undertaken in class it is noted that easyjet website has 18 languages options. It is also noted that easyjet provides a wide variety of offers following the present trends. Apart from air service easyjet also provides other related services like car rental and also does cross promotion for travel insurance and for hotels and apartments.As per easyjet website it is observed that it seriously follows its environment policy and it provides a detailed section on investor’s relation information.
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