16 April 2009

Ryanair and Hertz Re-Up Until 2014

In what must be one of the most successful ancillary revenue partnerships out there - Hertz and Ryanair have extended their partnership until 2014.

This partnership, which was forged in the early days of Ryanair's transformation from local Irish carrier to LCC powerhouse, is blessed with simplicity and value to both parties.

Initially just a few lines of code and some links on the airline's side and a very simple model on the Auto Rental giant's side, the deal could not be easier to comprehend and manage for both.

Essentially the deal is - we fly there you drive there. Every place that Ryanair chooses to fly to - Hertz must have a booth of some description and a person there when the planes land to rent to them and to accept the returns when the planes take off. In Return Ryanair promotes Hertz and Ryanair directs car hire from the car tab to Hertz. Hertz was very smart in agreeing to match any lower price on the website.

Oh yes and Hertz sends barrels of cash between the two.

Unlike the now famously unhappy relationship between Ryanair and Expedia, this deal works.

There is a cautionary tale to be told here. A lesson for all.

Any deal has to be good for every stakeholder involved. You cannot make things work without the basics being right. I hope someone in Bellevue is paying attention. Just having customers is not enough. Just having good overall product is not enough.


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