Allegiant Airlines is a low-cost American airline that has been in operation since 1997. The airline operates scheduled and charter flights to over 120 destinations across the United States, Mexico, and the Caribbean. One of the most remarkable things about Allegiant Airlines is that it offers some of the lowest fares in the industry. In this article, we’ll explore the reasons why Allegiant Airlines is so cheap and how it manages to keep its fares low.
Focus on Leisure Travelers
One of the primary reasons why Allegiant Airlines is so cheap is that it focuses on leisure travelers. The airline mainly caters to vacationers who are traveling for leisure, rather than business travelers who are willing to pay more for convenience and flexibility. Allegiant Airlines operates in smaller regional airports that are located near popular vacation destinations. By doing this, the airline is able to offer lower fares because these airports have lower landing fees and operating costs than larger airports. Additionally, Allegiant Airlines schedules its flights to coincide with peak vacation times, such as holidays and weekends, which allows the airline to maximize its revenue.
A la Carte Pricing Model
Another reason why Allegiant Airlines is so cheap is its a la carte pricing model. The airline charges a base fare for its flights, which only includes the transportation of passengers and their personal items. All other services, such as checked bags, seat selection, and in-flight meals, are offered as optional add-ons at an additional cost. This pricing model allows Allegiant Airlines to keep its base fares low and only charge passengers for the services they actually use.
Compared to other airlines, Allegiant Airlines offers fewer amenities to its passengers. For example, the airline does not offer in-flight entertainment, and its seats do not have adjustable headrests or lumbar support. While this may not be ideal for some passengers, it allows Allegiant Airlines to keep its operating costs low and pass on the savings to its customers in the form of lower fares. Additionally, the airline has a strict policy on carry-on baggage size and weight, which reduces the amount of time it takes to board and deplane the aircraft.
Direct Sales Channel
Allegiant Airlines also relies heavily on its direct sales channels, such as its website and call center, to sell tickets. By avoiding third-party travel agencies and online travel agencies, Allegiant Airlines is able to avoid paying commissions and other fees that can drive up the cost of a ticket. This strategy allows the airline to keep its fares low and offer more competitive prices to its customers. Additionally, the airline offers discounts and promotions exclusively to its direct customers, which can result in even lower fares.
Another factor that contributes to Allegiant Airlines’ low fares is its limited fleet. The airline operates a fleet of Airbus A320 and McDonnell Douglas MD-80 aircraft, which are older and less fuel-efficient than newer planes. While this may seem like a disadvantage, it actually allows Allegiant Airlines to keep its operating costs low, as it spends less on maintenance and fuel than airlines with newer fleets. Additionally, the airline has a policy of purchasing used aircraft, which reduces its capital expenditure and allows it to offer lower fares.
Allegiant Airlines also generates significant ancillary revenue, which helps to offset the cost of its low fares. The airline offers a variety of optional services, such as travel insurance, rental cars, and hotel bookings, which customers can purchase during the booking process. Additionally, the airline partners with various companies, such as theme parks and attractions, to offer package deals to its customers. These partnerships help to drive additional revenue for the airline and allow it to offer lower fares to its customers.
In conclusion, there are many factors that contribute to Allegiant Airlines’ ability to offer low fares. The airline focuses on leisure travelers, uses an a la carte pricing model, offers fewer amenities, relies on direct sales channels, operates a limited fleet, and generates ancillary revenue. While some of these strategies may not be ideal for all passengers, they allow Allegiant Airlines to keep its fares low and offer more affordable travel options to its customers. If you’re looking for a budget-friendly airline for your next vacation, Allegiant Airlines is certainly worth considering.