Ryanair says Web will save it £15m a year
Online sales rise, travel agent commission dies
Budget airline Ryanair has confirmed its status as one of the world's most profitable airlines with Q2 pre-tax profits rising 54 per cent to £33.7 million. Its net profit margin has grown from 25.7 to 30 per cent in the three months to 30 September.
Most of this is down to savings it has made since introducing online bookings through the Ryanair.com website in January.
The company says that on an annualised basis it will reduce sales and marketing costs by £15 million a year. This is mostly down to not having to pay as much in travel agent commissions and computerised reservation system charges.
Internet sales account for 60 per cent of Ryanair bookings. Bookings via travel agents have dropped from 60 per cent of all business last year to less than 10 per cent at present.
When the company announced its Q1 results chief executive Michael O'Leary said he hoped 50 per cent of bookings would be online by the end of the year. Its initial target had been 40 per cent. ®