Allegiant Air has launched dozens of new routes and has an increasing number of brand new aircraft. Next, maybe? Reimagined loyalty program.
Budget airline executives told TPG they are in the early stages of planning major reforms to the program today, calling it Allways Rewards, and the credit cards it offers as part of the program.
“We need to look at our loyalty program and shared program again,” Allegiant Chief Commercial Officer Drew Wells told TPG in a recent interview at the operator’s Las Vegas headquarters.
Based on simple program
Allegiant launched its Allways Rewards program four years ago (2021). Far from the complex and far-reaching plans offered by big competitors, Allegiant’s setup is very simple: members earn 1 point per dollar when booking, and can be redeemed for a cent.
Essentially, spending $100 on the airline, you can use a $1 flight credit to reduce the cost of your next flight.
Allegiant hopes to make the basis through a reimagined plan:
“Some elements of traditional procedures that everyone is accustomed to, but also ensures that we maintain the built-in flexibility [Allegiant Allways] Altair Dahrouch, the program’s commercial product director, said the program began with its inception.
Airline cash loyalty
Since Allegiant launched in late 2021, the loyalty program has become a bigger business for airlines than they are now.
Delta Airlines’ figures will earn more than $7 billion from its credit card partnership with American Express this year. Loyalty is perhaps the most anticipated aspect of the largest U.S. airline merger between Alaska Airlines and Hawaiian Airlines in recent years, which eventually led to the reveal of Atmos Rewards last month.
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Of course, Allegiant is the same as Delta or Alaska or Hawaiians (even if it’s deliberating onboard Wi-Fi for its planes).
The airline is known for flying travelers between underserved cities and resorts, from Orlando to Punta Gorda, Florida, and Alabama’s new favorite Gulf Coast.
Executives shared in January shared their co-branded credit card plans, which are expected to earn a higher $140 million through their co-branded credit card plans.
Many of its passengers fly only a few times a year – the fact that the carrier first launched the fact that it was essentially a cash loyalty program, looming, once called “the first airline loyalty program designed specifically for leisure travelers.”
However, the airline also has a loyal following, especially among small and medium-sized U.S. cities that have significantly reduced commercial aviation services during (and after) the COVID-19-19 pandemic.
“There are many cities, we are the largest cities [airline] In town, maybe the only game in town. “For those customers, there is a very compelling reason for these customers … to interact with us. We can do more to unlock that,” Wells said.
What does a loyal reward mean?
Although the operator does not provide clues on how to consider updating Allegiant, it is worth noting that the current plan does not provide any state tiers. It has not yet provided a way to convert frequent flights (or card spending) into frequent flights (or card spending) of the additional products that fleets have expanded in recent years.
This year is aimed at encouraging loyalty for flight and spending cards compared to budget rival Frontier Airlines, and is designed to encourage first-class upgrades expected to be launched later this year with new premium seats.
“We can do more for a subset of our clients,” Wells said. “The ball is back on our court.”
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