Allegiant Air SWOT Analysis, Competitors & USP

‘Allegiant Air’

Parent Company

Allegiant Travel Co

Category

Domestic

Sector

Airlines

Tagline/ Slogan

Travel is our deal

USP

Travel packages and economical flight fares

Allegiant Air STP

Segment

Customers looking for cheap fares

Target Group

Leisure tourists/Middle income group

Positioning

Low-cost airlines

Allegiant Air SWOT Analysis

Strengths

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Allegiant Air :

1. Cost advantage due to high operational efficiency

2. Very high passenger load factor – average > 90%

3. Travel packages and deals with restaurants, tourist destinations
4. Revenue from ancillary services as food & drinks services on flight, advance seat bookings etc.

5. Nearly 100 destinations across USA are covered

Weaknesses

1. No bookings through travel agencies or presence on internet

2. No frequent-flier programs or on-board entertainment

Opportunities

1. Expansion into regions with lower (80%) load factor

2. Tie-ups with major airlines to increase reach of customer bookings

3. More visibility through loyalty programs and ads

Threats

1. Increased employee unrest due to cost-cutting measures
2. Rising fuel and labour costs a challenge to low-cost business model

3. Unfavorable govt policies in the aviation sector

Allegiant Air Competition

Competitors

Below are the 3 main Allegiant Air competitors :

1. Southwest Airlines
2. Frontier Airlines
3. Spirit Airlines