In what way does Ryanair adapt its fares in reaction to competitor actions?

Ryanair strategically lowers fares to match or better its competitors as a core aspect of its pricing strategy. This approach is typical in a highly competitive market, where maintaining a competitive edge can significantly influence passenger choice. By adjusting its fares in response to competitor pricing, Ryanair aims to attract more customers and maximize its market share.

This practice underscores Ryanair's commitment to maintaining a low-cost model, allowing them to respond dynamically to market conditions. This responsive pricing not only helps in retaining existing customers but also in drawing price-sensitive travelers who may consider switching airlines based on fare differences.

Other methods, such as raising fares to boost revenue or maintaining constant fares, would be less effective in a rapidly changing competitive landscape where customer loyalty can be heavily swayed by price differences. Staying agile in their pricing allows Ryanair to remain relevant and appealing to their target market.