Low-cost airline Ryanair charges the highest for in-flight food and drink than its rivals, study finds

Ryanair may be a low-cost airline, but it charges more for food and drink on board than any of the other major carriers based in Britain or Ireland, a survey has found.

The survey, conducted by Nowfly, a website on online travel comparison, has showed that Ryanair, the budget carrier based in Dublin, Ireland, charges more from passenger than its competitors do in every category except spirits. And, spirits Ryanair does not serve aboard its flights!

Photo: A Ryanair plane

According to the finding of the survey, Ryanair charges as much as 50% more for a small bottle of wine, 35% more for coffee and tea, and 30% more for sandwiches than its rival airlines – which include bmi, Flybe, Monarch Airlines, and easyJet.

Another survey, conducted by IdeaWorks, the market research group based in Wisconsin, the United States, revealed that Ryanair earned around £550 million in ancillary revenue in 2008. This sum includes check-in fees and charges for baggage, charges for in-flight food, and the commission that Ryanair got from car rental, insurance and hotel bookings. And, the carrier’s revenues from these are set to go up starting October 2009, when it will raise the baggage fees by 50%.

In 2008, as much as 20% of Ryanair’s total earnings revenues came from ancillary revenue – with only Delta Air Lines, United Airlines American Airlines (all based in the United States) getting more by way of ancillary revenues.

The study by IdeaWorks also found that, worldwide, ancillary revenues of airlines came to a total of $10.3 billion in 2008 – which was a 345% increase since 2006.

Responding to the findings of the two surveys, an official of Ryanair said that the airline gives the “guaranteed lowest fares in Europe” by offering an array of ancillary-revenue, like hotel, camping, hostel and villa accommodation, bus and rail tickets,  travel insurance, financial services, gift vouchers, car hire, in-flight beverages and as well as on-board telephone services.

It may be noted that extra charges levied by airlines have attracted a lot of attention after British Airways decided, earlier in September 2009, to stop offering complimentary meals on board and also to charge fees for sports equipment. However, British Airways will continue to serve breakfast on flights which depart before 10 a.m., even while doing away with serving meals on flights that last less than two and a half hours.

The website telegraph.co.uk quoted Jay Sorensen, president of IdeaWorks, as saying that, in the next 5 years, “the entire domestic coach travel experience” will be very similar to that of low-cost carriers since legacy carriers are continuing to unbundled products and services. And, even while most of the frequent-fliers and those travelling in first class would be exempt, checked baggage, food, staff help at check-in and even paying with some credit cards for free is bound to disappear, Sorensen predicted.