Showing posts with label Ryanair. Show all posts
Showing posts with label Ryanair. Show all posts

Friday, July 22, 2011

Long Distance Coaches From Riga

Long distance coaches are rather developed and popular mode of passenger transportation in the Baltic States. Last year I wrote how coaches dominate the public transport market within Baltic States so now it’s time to look what are the possibilities for travel from Riga to destinations beyond borders of Latvia, Lithuania and Estonia. There also are several long distance coach routes not involving Riga but these are not taken into account here.

Altogether 131 unique cities and towns outside the Baltic States can be identified with direct service from Riga. As the map shows – all routes can be divided in two large groups based on their geography:
1) The closest destinations – Russia (excluding Moscow), Belarus and northern part of Poland. This group includes frequent services to the large cities as Warsaw, St Petersburg and Minsk and far less frequent services to regional destinations like Gomel and Baranavichy in Belarus or Velikiy Novgorod and Smolensk in Russia. Services in this group see competition from car travel and in lesser extent from air travel (limited number of destinations focused on feeding Riga hub) and trains (service being limited to St Petersburg, Minsk and few more stops on the way). Routes in this group have many stops in the Baltic States and further abroad and they are operated by various companies often strongly cooperating and, in some occasions, competing.  
2) Routes to more distant destinations in Ukraine, Germany, Netherlands, Belgium, Russia (Moscow) and other countries. All of them (except few in Ukraine) are operated by carrier Norma-A under Ecolines brand. These routes face strong competition from airlines (airBaltic and Ryanair) that outperform Ecolines by frequency and seat capacity, and of course – by travel time.

Nevertheless there are reasons why some costumers choose 31-hour bus ride instead of less than 3-hour flight to Düsseldorf. First of all - coaches serve many more cities and towns than air travel can offer. Almost all of West-heading coaches from Riga make a detour to pick more passengers at Vilnius and stop at all mayor towns all the way to Warsaw. In Germany and the Netherlands coaches stop at large number of medium-sized towns. So being closer to the origin and destination of passenger is a cornerstone in this service. This positively effects the overall travel costs as ground transport in Germany is monopolized and expensive.
Secondly, coach travel is generally cheaper than air travel for close departure bookings, yet directly comparison is hard as airlines use fare level system and extensive sales but Eurolines – flat fares. In the example of Düsseldorf, flat Eurolines fare of €110 is undercut by airBaltic for travel 7-8 weeks from today and by Ryanair – within a week from today. As Ryanair has recently restricted online bookings for travels from Latvia and Lithuania for departures within a week due to credit card fraud risk, choosing a coach is an alternative also in urgent cases.
And the last, but not the least reason is luggage allowance. While charging for checked-in luggage is a mayor revenue source for almost all airlines operating from Riga, Eurolines don’t charge for luggage at all and the luggage size regulations are less strict. This is a large travel cost saver for those passengers intending for a longer stay – guest workers and students for example.
Passengers loading luggage for their trip from Riga to Kiev at Riga coach station. Operated by Ukrlines under Ecolines brand. The €50 service is popular despite the more than 16-hour ride and need of Belorussian transit visa.  
Norma-A has publicly admitted that after the opening of German labor market their sales has strongly increased and some capacity will be added. But what are other development opportunities in the market? As top priority for Ecolines I see more complicated fare system that guaranties lower fare than air travel also for more distant departure dates and allows benefit from elements of yield management. If the number of departures is going to increase - the number of destinations per route should be decreased to reduce the travel times (similar to current route to Paris that skip all German destinations). The role of frequency seems to less important in this type of service, though I believe no destination should be served less than twice weekly anyway. If the market grows, different route structure of developed transfer opportunities and high route frequencies may be applied. From one side - long distance coach market is strongly linked to situation in air travel so increased airfares must increase the passenger number for bus travels, but from the other side - many of the potential passengers may choose not to travel at all because of the unacceptable travel time by coach or choose to make the journey by car to benefit from grater flexibility. 

Thursday, November 18, 2010

Riga to Oslo ticket prices

Riga to Oslo is one of two routes from the Baltic States served by four airlines (the second being Riga-Moscow). While Riga has only one airport, Oslo area is covered by three airports: the primary Gardermoen airport (used by Air Baltic and Norwegian), secondary Rygge/Moss airport (used by Ryanair) and Sandefjord-Torp airport located more than 100km from Oslo, but convenient for area South-West of Oslo and chosen by Wizzair.
The biggest carrier on the route is Air Baltic accounting for 51% of capacity share and – as using smaller aircraft than others – 68% of frequency share. Closest runner-up is Norwegian with 19% of capacity and 14% of frequency. Ryanair offers 18% of capacity and 11% of frequency while Wizzair 12% of capacity and only 7% of flights as offering only two departures per week.

Fare graphs indicates two price peaks – one on Oslo-Riga route on December 15 to 23 and the second on Riga – Oslo route on January 1 to 5. This strongly suggests that during Christmas time flights are used by Latvian workers visiting their families. Each of the airlines tries to differ from the others – Air Baltic and Norwegian provides connecting flights and uses the primary airport, Air Baltic offers big number of departures. Ryanair targets price-sensitive passengers and population South-East fro Oslo, Wizzair relies less on Oslo city but caches passengers South-West from Oslo. Here you can see how well the airlines manage to translate their strategies into cash from tickets:
Edited Nov21 - I found an official confirmation that Air Baltic's EUR 5 transaction fee can be avoided by using Baltic Miles MasterCard so ticket prices in the research are lowered by EUR 5 and five euro surcharge to usual Visa and MasterCard is added.
The average fares in the two-month span (November 18 to January 17) are as follows: Ryanair – EUR 29, Wizzair – EUR 37, Norwegian – EUR 74, Air Baltic EUR 81 EUR 77. Prices for Air Baltic and Norwegian are extremely similar and they even peak at the same days indicating that the two companies compete for the same passengers. Less successful are the two youngest operators - Ryanair and Wizzair. Booth started the service over seven month ago but tickets are still extremely cheep and are not coming significantly more expensive closer to the flight dates. On the other hand during Christmas period Wizzair has as high prices as Air Baltic and Norwegian showing that their strategy of targeting specific region near Oslo works. Overall it is clear that the ticket prices for Riga – Oslo route is low due to the high supply and some operators (Ryanair and Wizzair in particular) may even drop it.

Tuesday, March 9, 2010

Riga to London fare watch


Right now two airlines offers direct Riga – London service: airBaltic (Gatwick) and Ryanair (Stansted). FR operates twice daily (morning and evening) flights; airBaltic makes daily midday flight and additional evening flight on selected days during summer. Wizzair will start three weekly Luton flights in end of March so bringing some fresh air in the market.

Here is a graph of available ticket prices in March, April and September:


Wizzair is cleverly using the drop in Latvian advertising sector by putting their pink posters with cute flight attendants on virtually every free billboard in the town. Also promotional pricing with average March&April fares of €27 for Riga – London and €33 for London – Riga creates big public attention.

Average available fares on March and April for BT is €66 (RIX-LGW) and €76 (LGW-RIX); for FR €69 (RIX – STN) and €60 (STN – RIX). The very similar fare levels for FR and BT breaks the popular stereotype of Ryanair being the cheapest and airBaltic the most expensive. In London – Riga section the airport fares seems to make the actual difference between BT an FR (as all depart from one airport in Riga but different airports in London area).
In September the ticket prices for BT and W6 flights are actually higher than in April. airBaltic and Ryanair now put bigger accent on monthly sales with cheap tickets for close travel dates rather than traditional cheep fares for distant dates. For budget travelers it means that “book well in advance” tactics must be changed to “keep your bags packed and hope that your destination will be in the next sale list”.

Wednesday, November 18, 2009

Riga to Frankfurt - Prices of LH, BT and FR

Riga to Frankfurt is the only route from Riga with three competing airlines. Although airBaltic sell some Lufthansa connections – RIX to FRA seems to be at battlefield. airBaltic started this route in September as an important business destination for the connecting traffic but will BT steel Riga to Frankfurt O&D traffic?




Booth LH and BT operate the route daily and with the same type of aircraft, but – as airBaltic 737-500 has more dense seating - BT’s weekly seat capacity is higher.
Ryanair use more distant Hahn airport with is specialized in “illegal” transfers and serving other surrounding communities rather than Frankfurt city. Since BT’s entrance FR is no longer the only alternative to LH high fares (see graph) so the demand may be down (no proof).





As Lufthansa sustain a complex fare system with one-way tickets about the same price of a round trip – the round trip fares in this research is divided by two. So even don’t try to book them – they are imaginary fares. Lufthansa ticket include 20kg of checked-in baggage, booth BT and FR don’t.
The price graph clearly indicates – Ryanair is the cheapest option, then comes airBaltic, then Lufthansa. Variation of LH’s prices is extreme - from €147 to €510. It seems obvious that Lufthansa want to bring traffic to their hub instead of wasting the seats for the short Riga to Frankfurt service by offering more reasonable fares.