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Allegiant airlines’ ancillary revenue initiatives are among the most effective and innovative in the world

CarTrawler-sponsored report describes how Allegiant is mastering the art of a la carte and seeks to capture even more of a consumer’s leisure and entertainment spending.

DUBLIN, IRELAND & SHOREWOOD, WISCONSIN – Allegiant is based in Las Vegas, but it has never relied upon the notion of “luck” as part of its business strategy. The airline was born in 1997 and immediately challenged all the rules of how to start an airline. Allegiant maintains its industry leading margins by distancing itself from competitors, and as you will read in this latest report, by being very different from everyone else. This distinctive style includes innovative ways to generate ancillary revenue:

  • Allegiant’s Sunseeker Resort development in Florida is projected to contribute ancillary revenue in excess of $6 per passenger on a systemwide basis.
  • The carrier’s new family entertainment centers allow it to build deeper customer relationships and capture more leisure spending within Allegiant’s network of smaller cities.
  • More than $16 per passenger is generated by baggage revenue policies, which include fees for large carry-on bags, and allow those without large carry-on bags to board first.
  • The Allegiant World Mastercard provides a free inflight beer or wine for cardholders and is expected to generate annual earnings (EBITDA) of $50 million by 2020.
  • The installment payment option (pay monthly) yields online shopping carts nearly 300% larger than those paid in full. 

“Airlines that succeed in the ancillary space maximise their revenue by offering a larger array of travel products, including hotels, car hire and car transfer. It’s important for airlines to focus their efforts on where customers are willing to spend, presenting them with products relevant to their booking through personalisation of content. Airlines have access to all of this content easily, but displaying everything doesn’t guarantee conversion. It needs to be specific to that passenger’s needs,” says Aileen McCormack, Chief Commercial Officer at CarTrawler.

Tatiana Rokou

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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