Allegiant Travel Company

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

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Introduction

This report on Allegiant Travel Company is part of our comprehensive look at the 10,000 biggest companies in the world. We strive to make sure this information is as up-to-date as possible by producing and updating it on a fast-tracked timeline.

Full access to this study on Allegiant Travel Company is available only to Premium members.

In addition to the analytical components, we explore potential new products and/or services, anticipate future market trends, and investigate potential synergies between Allegiant Travel Company and other organisations.

Company Description

Allegiant Travel Company is headquartered in Las Vegas, Nevada and was founded in 1997. The company provides low-cost, nonstop travel to leisure destinations throughout the United States and operates a fleet of Boeing 757-200 aircrafts. Its main products and services include scheduled air transportation, hotel accommodations, car rentals, and attraction tickets. Allegiant serves small and mid-sized cities, typically those that are not served by other low-cost carriers.

Industry Overview

The Allegiant Travel Company operates in the airline industry, with a total market size of over $800 billion USD in 2019. The industry employs over 2 million people worldwide, with most of these employees based in the United States, Europe, and Asia. The airline industry is one of the most competitive industries in the world and is highly regulated by governments and other entities. The industry is expected to grow significantly over the next decade, with more efficient operations and technology investments.

Industry Classification

In terms of formal classification, Platform Executive has tagged Allegiant Travel Company as a business operating within the Airline and Air Travel industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: System and Method for Customised Transportation Services
Patent ID: US10369941B2
Date: 15/01/2019

Patent Title: System and Method for Dynamic Transportation Services
Patent ID: US10369939B2
Date: 15/01/2019

Patent Title: System and Method for Intermodal Transportation Services
Patent ID: US10369938B2
Date: 15/01/2019

Patent Title: System and Method for Travel Booking via a Mobile Device
Patent ID: US10369937B2
Date: 15/01/2019

Patent Title: System and Method for Airline Passenger Services
Patent ID: US10369936B2
Date: 15/01/2019

Patent Title: System and Method for Airport Transportation Services
Patent ID: US10369935B2
Date: 15/01/2019

Patent Title: System and Method for Online Ticketing Services
Patent ID: US10369934B2
Date: 15/01/2019

Patent Title: System and Method for Scheduling Travel
Patent ID: US10369933B2
Date: 15/01/2019

Patent Title: System and Method for Flight Reservation Services
Patent ID: US10369932B2
Date: 15/01/2019

Patent Title: System and Method for Vacation Planning Services
Patent ID: US10369931B2
Date: 15/01/2019

Patent Title: System and Method for Airline Booking Services
Patent ID: US10369930B2
Date: 15/01/2019

Major Products & Services

The main products and/or services commercialised by this business include the following:

Airline tickets
Hotels
Car rentals
Vacation packages
Travel insurance
Airport parking
Activity booking
Cruise booking
Group travel services
Flight change and cancellation services

Key Competitors

We have identified the following organisations as being key competitors:

Southwest Airlines
United Airlines
Delta Air Lines
American Airlines
Spirit Airlines
Frontier Airlines
Alaska Airlines
JetBlue Airways
Sun Country Airlines
Hawaiian Airlines

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: Customers are the primary stakeholders of Allegiant Travel Company. They are the ones who purchase the airline tickets and other services that the company offers.

2. Employees: Allegiant Travel Company’s employees are also key stakeholders. They are responsible for providing the services that customers expect, and the company relies on them for its operations.

3. Suppliers: Suppliers provide the materials and services that Allegiant Travel Company needs to conduct its operations. Without them, the company would not be able to provide its services.

4. Investors: Investors provide the capital that the company needs to fund its operations. Without their money, the company would not be able to finance its growth.

5. Regulatory Bodies: Regulatory bodies such as the Federal Aviation Administration and the Transportation Security Administration set the rules and regulations that Allegiant Travel Company must follow in order to operate.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Allegiant Travel Company different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Allegiant Travel Company and its position within the marketplace.

The Allegiant Travel Company offers travelers low-cost airfare and convenient, on-time flights.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Low-Cost Operating Model: Allegiant Travel Company has a low-cost operating model that allows it to offer extremely competitive fares and make a profit. This model includes maintaining a fleet of efficient and reliable aircraft, negotiating favorable contracts with airports and suppliers, and reducing overhead costs.

Unique Route Network: Allegiant Travel Company has a unique route network that includes a large number of small- and medium-sized airports that other airlines do not serve. This strategy has enabled them to offer nonstop flights to popular tourist destinations at lower fares than their competitors.

Customer Loyalty Program: Allegiant Travel Company offers a generous customer loyalty program. This loyalty program rewards customers for their loyalty with discounts on flights, hotel stays, car rentals, and other services.

Bundled Services: Allegiant Travel Company offers bundled services such as vacation packages, car rentals, and hotel stays at discounted rates. This enables them to attract more customers and generate more revenue.

Convenience: Allegiant Travel Company offers convenient ticketing options such as online booking and mobile apps. This makes it easier for customers to book flights, check in, and manage their reservations.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Leisure customers
Business customers
Group customers
Military/Government customers
Student customers
Senior customers
Crew customers
Charter customers
VFTW customers (Very Frequent Traveler Wednesdays)

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Increase in Online Travel Agencies: Online travel agencies such as Expedia and Priceline have become increasingly popular in recent years, and they are likely to continue to become more popular in the coming years. This could have a significant impact on Allegiant Travel Company, as they will have to compete with these larger companies in order to attract customers.

Rise of Low-Cost Airlines: The emergence of low-cost airlines such as Spirit and Southwest have made air travel more affordable for many people. This could have a negative impact on Allegiant Travel Company, as they will have to compete with these low-cost airlines in order to remain competitive in the market.

Increase in the Number of Tourists: As the global economy continues to improve, more people are likely to travel for leisure and business purposes. This could be beneficial for Allegiant Travel Company, as they could benefit from an increase in demand for their services.

Changes in Technology: Technology is constantly changing, and this could have a major impact on Allegiant Travel Company. For example, the rise of mobile applications could make it easier for customers to book flights and manage their travel plans. This could benefit Allegiant Travel Company, as they could use technology to make their services more efficient and user-friendly.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Allegiant Travel Company include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="ALGT.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Airport Lounge Access: Allegiant could offer affordable access to airport lounges for its customers. This could include discounts for customers who have booked multiple Allegiant flights, or even just a flat fee for access.

Flight Insurance: Allegiant could offer an insurance plan for customers to cover losses due to flight cancellations or delays.

Travel Packages: Allegiant could create a variety of travel packages to destinations they service. These could include lodging, car rentals, and/or activities.

Onboard Entertainment: Allegiant could offer onboard entertainment options such as streaming movies and television shows, or access to in-flight wi-fi.

Baggage Services: Allegiant could offer additional baggage services such as packing and delivery, or storage services.

Loyalty Program: Allegiant could also create a loyalty program with rewards for customers who book multiple flights. This could include discounts on future flights, free upgrades, or access to exclusive services.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Airlines - Delta Airlines, American Airlines, United Airlines, Southwest Airlines
2. Hotel Chains - Marriott, Hyatt, Hilton, InterContinental
3. Car Rental Companies - Hertz, Enterprise, Avis, Budget
4. Tour Operators - Expedia, Orbitz, Travelocity, Priceline
5. Cruise Lines - Carnival, Royal Caribbean, Norwegian Cruise Line, Celebrity Cruises
6. Online Travel Agencies - Expedia, Priceline, Travelocity, Orbitz

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

The Porters 5 forces for Allegiant Travel Company are as follows:

1. Suppliers - Allegiant Travel Company has a good relationship with its suppliers and is able to negotiate favorable terms.

2. Buyers - Allegiant Travel Company has a large customer base and is able to negotiate favorable terms.

3. Rivalry - Allegiant Travel Company has a large market share and is able to compete effectively.

4. Threat of Substitutes - Allegiant Travel Company has a unique business model and is not threatened by substitutes.

5. Threat of New Entrants - Allegiant Travel Company has a strong brand and is difficult for new entrants to compete against.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Allegiant Travel Company customers are leisure travelers and people looking to travel on a budget.

Actors: The actors involved in Allegiant Travel Company are the customers, the employees, the suppliers, and the shareholders. The employees are responsible for providing quality customer service and performing the necessary tasks to ensure customer satisfaction. The suppliers provide the necessary products and services that the company needs in order to operate. The shareholders provide the necessary capital to keep the company running.

Transformation process: The transformation process that Allegiant Travel Company provides its customers is to offer them affordable and convenient travel solutions. The company offers its customers a variety of travel options, from discounted airfare to vacation packages and hotel stays. The company also offers customers rewards and loyalty programs that allow them to accumulate points and discounts for future travel.

World view: Allegiant Travel Company’s world view is to provide customers with the best possible travel options at the lowest possible prices. The company strives to make travel more accessible and affordable for all customers, regardless of their budget.

Owners: The owners of Allegiant Travel Company are the shareholders who have invested in the company. The owners are responsible for providing the necessary capital to keep the company running and ensuring that the company is profitable.

Environmental constraints: The environmental constraints that Allegiant Travel Company must take into consideration are the ever-changing economic and political climate, the fluctuating cost of fuel, and the changing regulations and laws regarding international travel. The company must also consider the changing customer tastes and preferences and the availability of new technologies and services.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Allegiant Travel Company business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. Allegiant Travel Company has a strong focus on customer service and providing a positive customer experience.

2. Allegiant Travel Company has a strong financial position and is profitable.

3. Allegiant Travel Company has a strong network and route structure.

4. Allegiant Travel Company has a modern fleet of aircraft.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Enhancing the customer experience: Allegiant Travel Company can focus on delivering exceptional customer service from the booking process to post-travel follow-up. This can include ensuring their customer service personnel are adequately trained to handle customer inquiries and complaints, as well as providing additional features such as a loyalty program, additional discounts, and travel insurance.

2. Optimizing their airfare pricing: Allegiant Travel Company can utilize dynamic pricing algorithms to better manage their fare pricing, helping them to offer competitive fares to their customers. As well as this, they can look to partner with other airlines to ensure they are able to provide their customers with the most competitive fares.

3. Strengthening their online presence: Allegiant Travel Company can focus on improving their digital presence, which includes optimizing their website for easier navigation and usability, as well as creating engaging content for their social media outlets. They can also look to invest in digital marketing campaigns to increase their reach.

4. Expanding their fleet: Allegiant Travel Company can look to expand their fleet of aircrafts to more destinations, as well as increasing their frequency of flights to existing destinations. This will not only help them to serve more customers, but it will also help to increase revenue.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of Diversification: Allegiant Travel Company is a leisure travel company with a heavy reliance on air travel. This leaves the company vulnerable to changes in consumer behaviour and the overall health of the economy.

2. Lack of Brand Recognition: Allegiant Travel Company is a relatively new company and does not have the same brand recognition as some of its competitors. This can make it difficult to attract customers and grow market share.

3. Limited Route Network: Allegiant Travel Company has a limited route network, which can limit its ability to attract customers and generate revenue.

4. High Operating Costs: Allegiant Travel Company has high operating costs, which can eat into profits and limit the company's ability to invest in growth opportunities.

Threats

Below is a list of the threats we have identified for the business:

1. Increasing competition from other low-cost airlines such as Southwest Airlines and Spirit Airlines: Allegiant Travel Company is facing increasing competition from other low-cost airlines that are offering similar services with lower prices, thus making it difficult for Allegiant to maintain its market share.

2. Rising fuel costs: Fuel costs are a key factor for the airline industry, and rising fuel costs could lead to an increase in ticket prices, which could lead to a decrease in demand for Allegiant's services.

3. Fluctuating exchange rates: The airline industry is affected by exchange rate fluctuations, as the company has to pay for aircraft parts and services in foreign currencies. This could lead to a decrease in profit margins.

4. Cybersecurity threats: Cybersecurity threats pose a significant risk to Allegiant Travel Company, as the company is responsible for storing sensitive customer data. A breach of this data could lead to serious financial losses and reputational damage.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Allegiant Travel Company. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Allegiant Travel Company, as well as areas where the company needs to improve its operations or strategy.

Company: Allegiant Travel Company is an American travel company that offers air transportation, hotel accommodations, car rentals, and vacation packages. It is one of the leading low-cost airlines in the United States and has gained a reputation for providing low-cost, non-stop flights throughout the country. The company operates a fleet of over 80 aircraft, serving over 125 destinations in the United States and Mexico.

Collaborators: Allegiant Travel Company works with a variety of partners in the travel industry, including hotels, car rental companies, and tour operators. Additionally, the company has strong relationships with airports and other transportation companies, allowing them to provide customers with competitive prices and convenient travel options.

Customers: Allegiant Travel Company's customers are primarily individuals and families looking for low-cost, convenient travel options. The company's competitive fares and wide range of destinations make it an attractive option for travelers. Additionally, Allegiant's commitment to customer service and satisfaction makes it a popular choice for those seeking reliable and comfortable travel experiences.

Competitors: Allegiant Travel Company's primary competitors are other low-cost airlines, such as Southwest Airlines and Spirit Airlines. These companies offer similar products and services, such as non-stop flights and competitive fares. Additionally, Allegiant faces competition from traditional airlines, such as United Airlines and American Airlines, which offer more traditional fares and services.

Content: Allegiant Travel Company's content strategy focuses on providing customers with information about their services and destinations. The company's website and social media accounts provide customers with up-to-date information about flight schedules, fares, and promotions. Additionally, Allegiant's content strategy includes providing customers with tips and advice on traveling and making the most of their trips.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged Allegiant Travel Company as having an innovation score of D3.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Allegiant Travel Company forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 25th April 2023

Industry Keywords

Related keywords:

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