InSights

Brand Strategy

How Allegiant Air Travel Created A Branding Strategy Within Their Niche Market

Everyone knows that the airline industries are hurting financially just like the train and automotive industry, as the United Government has to bail majority of companies from going bankrupt. There is one airline carrier that seems to have found a niche market and a canny way of branding strategy to their targeted audience, that airline is called Allegiant Travel with Andrew Levy’s vision.

Allegiant Travel is a 16 years old airline carrier that flies 64 jets (mostly used) by giving consumers the lowest costs, and the company getting the highest margins flying where it’s competitors aren’t, thats a niche market, here is how they are doing their branding strategy plan.

Long Term Goal. Levy stated, “We want to be considered the hometown airline of all the little cities around the country.” While other airlines carriers focus on major cities, Allegiant specializes from small cities to 14 warm weather vacationing areas, such as Las Vegas, Honolulu and Orlando among others.

Word-Of-Mouth Advertising. Allegiant doesn’t have any partnerships with other airlines, travel agents or other third-party bookers, avoiding their fees to have to payout more capital. They depend on word of mouth advertising within these small cities it serves, as they are filling a niche market within the airline industry that the big airlines are overlooking.

Brand Marketing. When launching a new service, Allegiant has been known to send a Vegas showgirl to pose with the airport director for some free publicity in the local newspaper, as this creates a buzz marketing effective that something new is in town. As they say, sex sells.

Brand Experience. Allegiant also has tons of add-ons that it sells to customers on hundreds of thousands a year, by bundling its fares with cheap hotel rooms, helicopter tours, wedding ceremonies. “The margins are huge” on those sales, Mr. Levy said. That business helped drive up its non-fare revenue to $41.20 per flier in 2012, from $5.87 in 2004.

The downside is Allegiant does have some delays from time to time, but the fares are some cheap and they are targeted niche market for their audience, their consumers are more appreciative of saving money then being late to their destination. As Allegiant slogan states, “travel is our deal.”