What is the main reason Ryanair focuses on ancillary revenue?

Prepare for the Ryanair Conversion 3 Exam with quizzes and detailed explanations. Stay ready for your upcoming test with structured questions and insightful tips.

The primary reason Ryanair focuses on ancillary revenue is to maintain competitiveness in the market. By generating revenue from additional services and products, such as baggage fees, priority boarding, and in-flight sales, Ryanair can keep its base ticket prices low. This strategy allows them to attract cost-sensitive customers who are often looking for the cheapest flight options. Maintaining a low fare combined with a diverse range of optional add-on services enables Ryanair to differentiate itself from competitors, ensuring it remains a strong player in the highly competitive budget airline sector. This focus on ancillary revenue not only supports Ryanair's business model but also helps secure its position in a market where low fares are a key purchasing factor for consumers.

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