Allegiant Air has launched dozens of recent routes, and has a rising fleet of brand-new planes. Up subsequent, maybe? A re-imagined loyalty program.
Executives on the funds airline inform TPG they’re within the early phases of planning a significant revamp for this system recognized in the present day as Allways Rewards — and the bank card it affords as a part of this system.
“We have to take one other take a look at our loyalty program and our cobranded program,” Drew Wells, Allegiant chief business officer, informed TPG in a latest interview on the provider’s Las Vegas headquarters.
Constructing on a easy program
Primarily, $100 spent with the airline will get you $1 in flight credit you should use to cut back the price of your subsequent flight.
It is one thing that Allegiant hopes to construct on with a re-imagined program:
“Some components of conventional applications that everybody is used to in the present day, but in addition ensuring that we’re sustaining that flexibility that was constructed into the [Allegiant Allways] program from its inception,” stated Altair Dahrouch, Allegiant’s director of economic merchandise, who has been tasked with overseeing the loyalty revamp.
Airways money in on loyalty
Since Allegiant launched Allways in late 2021, loyalty applications have grow to be even larger enterprise for airways than they had been already.
This 12 months, Delta Air Strains figures to make greater than $7 billion from its bank card partnership with American Categorical. And loyalty was maybe the most-anticipated side of the most important U.S. airline merger in recent times between Alaska Airways and Hawaiian Airways, which final month culminated within the reveal of Atmos Rewards.
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Allegiant, after all, is nothing like Delta — or Alaska or Hawaiian, for that matter (even whether it is mulling inflight Wi-Fi for its planes).
The airline is understood for flying vacationers between underserved cities and trip locations, from Orlando to Punta Gorda, Florida, and new favourite Gulf Shores, Alabama.
It anticipated to make a much more modest $140 million via its cobranded bank card program, executives shared in January.
Lots of its passengers fly just a few occasions every year — a indisputable fact that loomed massive when the provider first launched what was basically a money again loyalty program, as soon as dubbed the “first airline loyalty program designed particularly for leisure vacationers.”
But, the airline additionally boasts a loyal following, particularly in small- and medium-sized U.S. cities that noticed marked reductions in business air service throughout (and after) the COVID-19 pandemic.
“There are such a lot of cities the place we’re both the most important [airline] on the town, or maybe the one recreation on the town. And there is a very compelling motive for these clients … to work together with us at a deeper stage,” Wells stated. “There’s extra we are able to do to unlock that.”
What may an Allegiant Allways Rewards shakeup imply?
Whereas the provider didn’t supply clues into the way it’s contemplating updating Allegiant Allways, it is value noting the present program does not supply any kind of standing tiers. It additionally does not supply a method to translate frequent flying (or card spending) into free seats in its extra-legroom Allegiant Additional product expanded throughout its fleet in recent times.
Examine that to funds competitor Frontier Airways, which this 12 months aimed to encourage flying and card-spending loyalty by rolling out a new companion cross for high-level elites — and first-class upgrades which can be anticipated launch at the side of new premium seats later this 12 months.
“There’s much more that we are able to do for extra of the subsets of our clients,” Wells stated. “The ball’s again in our court docket.”
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