We like hearing about different manifestations of King Gillette's brilliant "Give away the razor, sell the blade" business-model which was developed around the turn of the 20th century. Sometimes this idea is disastrously mis-applied, like in the case of the Free PC back in 1999. They modified the model to "Give away the razor (computer), and sell advertising on the side (screen)". It didn't work, nor did several attempts at giving away free internet access.
Here's another idea which probably won't work. Irish discount airlines Ryanair (NASD: RYAAY) thinks that one day flying could be free with ancillary revenues such as onboard drinks, services, and gaming accounting for all of sales. Admittedly, the company has done very well selling cheap flights (some flights as low as 1 euro pre-fees/taxes) during a time of high gas prices, but this idea seems far-fetched.
It seems that online-gambling really will be the cornerstone of this strategy, as they hope to turn their plane into flying casinos. At the moment they don't offer this service, though they hope to use their website as a virtual casino in the meantime. If you've never been to Ryanair's website, it's well worth a visit.
The Ryanair website is pretty well designed in my opinion. Its cheery and tabloid in all the right ways, and looks, well... cheap!
Posted by: The Other Stalwart | November 08, 2005 at 08:38 PM