Allegiant Keeps Going

Ryanair is generally accorded “rock star” status for its prowess for generating non-ticket revenue from its customers. But another star is standing in the curtains and may take a portion of the stage from this European phenomenon. Allegiant Air reports it generated ancillary revenues of €10.79 (US$13.58) per passenger during the first 6 months of 2006, which substantially bests the €7.84 (US$9.87) posted by Ryanair for the same period. An IdeaWorks analysis reveals Las Vegas-based Allegiant Air has perfected its craft in the most unlikely of markets – the United States – where airlines don’t typically charge extra for all the extras they provide. Here is a sampling of the observations from the analysis: In Las Vegas alone, the airline has agreements with 37 hotels, including major players such as Harrah’s Entertainment, MGM Mirage, and Wynn Resorts. Allegiant Air generates more than 80% of its bookings via its web site. IdeaWorks believes Allegiant Air focuses on the unbundled aspect of travel products to a greater degree than any other US-based airline. On a total ancillary revenue basis, Allegiant Air generated a modest €14 million (US$11 million) for fiscal year 2005 and its results are roughly comparable to those posted by AirAsia and SkyEurope.