loyalty

“It has cost more money than it generates” With a brief note and the statements of Dara Brady, CMO of the company, Ryanair has confirmed the closure of Prime, the membership program that sought to retain its customers with advantages that have generated greater costs for the company than benefits. The subscription service of the company has not lasted even a year before its cancellation. Surgical. A test, some results eight months later and a decision: close Prime. Ryanair has confirmed that it is closing its subscription program just eight months after it was launched on the market in a decision that is as firm as it is clean. Subscribers will maintain their benefits but those who had not signed up until last Friday, the 28th, will now no longer be able to do so. They report on the company’s website that customers will maintain their benefits “of exclusive savings on flights and seats for the remaining 12 months of membership.” However, the company’s Prime program already has its days numbered. two million. It doesn’t seem like much for a company like Ryanair, but it speaks volumes about the rigorous cost control that the company manages. The statement includes the words of Dara Brady, CMO of Ryanair, who points out that the program has collected 4.4 million euros in subscriptions but that the benefits delivered are greater than six million euros. That is, in the eight months in which the service has been active, the company has lost less than 250,000 euros per month in the new program. Doesn’t seem like much for a company that has obtained 2,540 million euros in the first quarter of 2025. What did they offer? In its announcement last March, Ryanair offered the following benefits For your subscribers: Priority sale on selected flights Exclusive discounts for some flights Free seat selection for the member and one companion To access these benefits, the client had to pay 79 euros per year. According to the company’s accounts, seat selection alone already amortized the investment from three flights a year. With four flights made per year, we would be amortizing 26 euros on average. The subscription extended for a maximum of one year or 12 flights per year. In addition, I had travel insurance to cancel flights due to injuries or illnesses, the delay of other flights or theft of luggage. Of course, those over 70 years of age were excluded from sickness coverage. Unattractive. “With more than 207 million passengers this year, Ryanair will remain focused on offering the lowest fares in Europe to all our customers, and not just this group of 55,000 Prime members.” The closing of the press release published by the company is a clear confirmation of what happened. The most attractive thing that Prime offered was that the customer could choose (and save money) in the choice of seats but it did not even guarantee that two passengers (one being “non-Prime”) could travel together. It is an incentive that has not been attractive enough for a company where the customer looks for the cheapest way to travel and chooses to add services little by little, depending on how much money you are willing to pay. Nothing premium. Ryanair’s test has convinced the company that it has no room to delve into policies that bring it closer to premium or higher-cost companies. Many of the airlines with higher prices offer cards or loyalty services to keep their customers retained, but this way of acting has not caught on among the Irish company’s customers. The reasons are obvious. When someone chooses Ryanair it is because they expect the lowest possible price for a short flight. And you are willing to sacrifice by traveling with less luggage or accepting 100% digital boarding. You either take it or leave it. And Ryanair knows that the customer will leave it when the competition offers that same flight at a cheaper price. On the other hand, customers who are loyal to higher-cost companies obtain other advantages that do receive greater attention on flights of higher cost and time. For example, loyalty cards companies like Iberia They allow access to VIP lounges or priority boarding, secondary values ​​for those who aspire to travel through Europe at the lowest possible price. To this we must add that the high price paid for the ticket ends up subsidizing these companies for the economic effort they have to make to deliver the benefits to their customers. Photo | Markus Winkler In Xataka | Now we know why Ryanair charges its passengers for everything: it is the key to having a profit of 2,540 million euros