EasyJet 2009 Annual Report Download - page 16

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14 easyJet plc Annual report and accounts 2009
q
Improving yield
Through this recessionary period, our superior
network and competitive fares have enabled us
to win market share and drive the best revenue
performance of any European airline. Over the
past year, we have grown the number of business
passengers in spite of an overall decline in the
business travel market.
Our unique revenue management system delivers
transparent and simple pricing for our customers
while, at the same time, enabling us to capture the
maximum yield available in the market for each
route. Our aim is to be signicantly cheaper than
our direct competitors on each route, thereby
allowing us to take market share.
Driving ancillary revenues
We see a number of opportunities to drive
continued growth in ancillary revenues by
introducing initiatives that add value to our
customer proposition.
In-ight services continue to deliver improving
revenue. The year saw wastage of fresh food
halved and the introduction of new localised
food and drink choices which better match the
expectations of customers on different routes.
For 2010, the emphasis will be on fresh food,
including a key country-specic bistro offering.
We have also expanded the number of partners
we work with to provide customers with services
including car hire, hotel rooms, coach and rail travel
and insurance. Agreements with new partners
such as Mondial Assistance and Laterooms.com,
together with renewed focus on long-term
partnerships with companies including Europcar
and Gatwick Express, will drive revenue through
easyJet.com
Customers of all airlines now accept that bag
charges are inevitable and during the year we
increased our “rst bag” charges to £9. However,
we are committed to ensuring that our charges
remain competitive and support a strong customer
proposition. Therefore we recognise that future
opportunities to increase revenue in this area may
be limited.
REVIEW OF STRATEGY CONTINUED
4 Deliver low cost and
maximise margins
easyJet’s strategy is growth with margin improvement
and therefore the management team continually focuses
its efforts on all three drivers of margin: yield, ancillaries
and cost, with the aim of achieving a 15% return on equity
in the medium-term.
78%
Independent research*
proves that
we are the best value carrier
on 78% of all business itineraries
surveyed. Business travellers can
make savings of over £100 on
almost half of all occasions.
* ITM Research Fare Study
June-August 2008.