Case Study
Allegiant Travel Company
Overview Founded in 1997, Las Vegas-based Allegiant Travel Company operates a low-cost, all-jet passenger airline through its subsidiary, Alle- giant Air. The company is an industry disruptor: instead of competing directly with big airlines, Allegiant found an interesting niche, targeting leisure travelers with direct flights to over 100 destinations across the U.S. Challenge A leader in unbundled travel, Allegiant also competes by keeping its airfares low. T o drive incremental revenue, it charges fees for un- bundled services such as checked luggage and hotel reservations. The company char- acterizes itself as more of an e-commerce company than an airline, because 94% of its revenue comes through the website. Leisure flyers looking for deals flock to Alle- giant, and the ai