Why Allegiant Air is such a successful airline
Finding success in the business world is the goal of every enterprise. The average person thinks that success is unattainable. Their reasons are simple; competition and expenses. If there is too much competition, it will be difficult for a new company to break in to the marketplace. The big boys will eventually force you out because you can’t afford to compete. The other excuse is that expenses will be so high that it will be impossible to turn a profit. Without a profit, you just can’t stay in business. Despite the barriers to success that all companies have to face, there are companies that find a way. Allegiant Air is one of those companies. In the tough airline marketplace, they have found a way to survive and their secret is not that secret at all. It just comes down to a basic principle; deliver a service at an affordable price and keep your expenses down. It sounds so simple but it isn’t.
The airline industry is extremely competitive and the airlines that survive have to work hard. There are countless airlines that just couldn’t make it and faded away into obscurity. Allegiant Air didn’t want to be one of those airlines. When they first began offering service in 1998, they struggled. In just 2 years, they were headed towards bankruptcy and certain failure. But they were able to turn it around after emerging from bankruptcy. The turnaround was based on changing their strategy. For Allegiant, it was all about being the best low cost airline that they could be. Their motto, “Travel is our deal”, reflected that. Allegiant Air directed their focus on small underserved markets that they could quickly get into and dominate. They have little or no competition on most of their routes. This allows them to make more from less. They also decided to target a specific type of traveler, the leisure traveler. The fact that they were owned by Allegiant Travel gave them the ability to offer travel packages to casinos and resorts that other companies just couldn’t match. The steady stream of customers gave them the revenue to survive and expand. And that is when the success continued.
Allegiant Air began to find new markets and expand their fleet. The small markets weren’t appealing to the big airlines, but they were to Allegiant Air. And Allegiant’s customers were ecstatic that someone was willing to give them a low-cost travel option.
Allegiant Air sticks to their motto of making travel a deal. They give travelers a low-cost, reliable way to travel to the places that they want to travel to. And Allegiant Air makes sure that they keep their expenses down in order to pass the savings on to the consumer. Allegiant also uses every avenue they can to add to their revenues. They even sell food, drinks and souvenirs on their flights. It’s that willingness to boost revenue wherever they can that will keep them in business long after some of their competitors are gone.