How YouGov's data helps to explain why Monarch collapsed this week

 
Stephan Shakespeare
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Monarch collapsed into administration on Monday (Source: Getty)

A troubling period for the travel industry became worse this week as Monarch Airlines collapsed. Were its problems foretold by our brand tracking data?

It is certainly true that internal problems in some of Monarch’s key destinations – such as Egypt, Tunisia and Turkey – had an impact on its business, as well as the fall in the value of the pound that left it paying £50m a year more for its fuel and aircraft.

But YouGov’s BrandIndex shows the airline was also struggling with its own offer against the continued rise of budget airlines such as Ryanair and Easyjet.

Read more: Monarch dethroned: Rival budget airlines’ shares take off as firm collapses

This is particularly true with younger customers. Our Millennial Travellers report, published earlier this year, confirmed that this group is more inclined to take shorter breaks, involving a higher degree of self-planning – a traveller distinct from one that would fly with Monarch in its package-holiday heyday.

Monarch’s value for money score among the 18-34s age group over the last three years has remained flat at around five, but it has been taken over by Ryanair – which has moved from minus 11 to 14 (prior to its own recent difficulties).

Easyjet has outstripped both rivals on this front, moving from 25 to 32 over the same time period.

Read more: Government repatriation for Monarch customers begins

Similarly, among those that have had a short-haul flight in the past 12 months, Ryanair’s value for money score has jumped from minus 14 to five, while Monarch has remained at eight. Easyjet is way ahead on 34.

Of course, those at the higher end of the market are also under pressure to compete on price. Looking at British Airways, its own value for money score has declined over the past three years, dropping from 10 to minus two. Similarly, Virgin Atlantic’s score has moved from 10 to three.

From a consumer perspective, the demise of the airline is likely to be more keenly felt by those aged 55 and over, who may have a greater affiliation with the brand. Monarch’s impression score (whether a respondent has a favourable impression of a brand) prior to its closure among that age group is nine, against five with 18-34s.

Read more: Government repatriation for Monarch customers begins

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