It really is about focus

allegiantairI have mentioned in previous posts that companies which focus tend to do better. Case in point today is Allegiant Air. What do they do? They fly from out-of-the-way cities to desirable destinations … dirt cheap. Based in Las Vegas they fly from places like Bangor ME, (hi Joanie), Fargo, ND, Great Falls, MT and Monterey, CA to Las Vegas, Orlando, Tampa, etc. One way from Monterey to Las Vegas is $30!! How do they make money?

Simple. They don’t fly a lot so their planes are full. They have no competition to speak of from the airports they serve. (They have competition on about 5 routes). And they make money by also selling you hotel rooms and car rentals when you arrive. Some of you pricing experts might suggest they are “leaving money on the table” if they have no competition and price low anyway. You might be right, but they are profitable, which is more than most other airlines can say.

In truth their actual name tells you what you need to know about the company: Allegiant Travel Co. They are about travel, of which air is just one part. Focus and win.

Mitch

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