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Allegiant has shied away from competition before, but increasingly, they will be unable to do so, and bellingham may be a case in point. And these days, allegiant is better positioned, with better brand loyalty from travelers, as well as a reputation for delivering travel value.
The truth of the matter is that customers in this recession are looking for excellent value more than ever. And allegiant has very low costs, operates to airports close to where many people want to travel, and can offer very low prices for vacation bundles. Frequent flyer programs and lots of are important for business travelers.
But for leisure travelers, being able to travel cheaply is most important. Being able to do so non stop, and on a mainline jet far more comfortable for the family than a tiny regional jet, is a bonus. So on allegiant, to avoid paying excess fees, one must book tickets at the airport, and pay bag fees at the same time.
While i anticipate airtran to make strong market share gains in the markets it enters, assuming flights are conveniently timed and priced, Allegiant will not be a pushover. By changing hub airports and adding frequencies, they are fighting back.
Allegiant sells only airline tickets to relatively few customers the company makes much of its money through ancillary revenues. Moreover, because of the volume of travelers allegiant handles, the company negotiates significant discounts with hotel operators, and passes the savings on to customers.
Thus if airtran is to succeed in the orlando market, it will need to ensure its vacation package offerings and pricing, not merely, are competitive. Nevertheless, i imagine that in many of these cities, airtran will be the victor, and this i see as more positive for consumers than allegiant.
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