Allegiant Airlines surveyed its customers and found that many are enthusiastic about returning to the skies, does this foretell something about the leisure traveller market?
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Allegiant Focuses Largely on Leisure Markets
Allegiant Air follows an LCC model that Ryan Air once pioneered. Customers will fly from nowhere to somewhere, or somewhere to nowhere but not nowhere to nowhere.
For example, Ryan Air had two proxy airports for expensive Barcelona Al Prat International. The carrier would fly to Reus or Girona from major markets like Manchester or Birmingham where there was no alternative airport though both are a considerable distance (45 minutes) from Barcelona proper. They found that customers were willing to fly from their home airports and take a bus or train to their destination but would not do so on both sides of the journey.
Allegiant will fly from practically any airport to Las Vegas, Orlando or New Orleans, and from Punta Gorda, FL (north of Fort Myers 45 minutes, south of Tampa 80 minutes) on leisure market schedules. They fly nearly no business routes with any regularity.
Customer Survey Results
Seth Miller at Pax Aero gave a detailed report of Allegiant’s customer base survey results. One of the few bright spots of positivity in the travel world, respondents from smaller markets favor a faster reopening than what has been seen in larger markets. He notes the disparity between Allegiant’s results vs. broad national surveys on the same topic.
CMO Scott DeAngelo said, “Most tracking surveys out there have asked the question about you go all in for public health, or do you balance public health with the needs of the economy. The nation as a whole has been 50-50. The Allegiant customer base has been 75/25, every time we’ve asked that question in favor of you balance public health with the needs of the economy and you get out there. So our footprint just don’t happen to mirror one where the sentiment is very different than a general cost survey that captures New York, Dallas, Atlanta, and Los Angeles.”
The C-suite also discussed that searches on their website have increased but they will need NFL games, theme parks and Casinos to begin reopening to close the gap as restrictions ease. Many of the respondents also indicated that their financial situation had stayed the same or improved in the coronavirus crisis, surprisingly.
Small Market or Leisure Market?
The real question is whether this is a small market issue or a leisure market conclusion. Smaller markets are traditionally conservative and fall on the side of reopening the country to save the economy over extending lockdowns over public health concerns. Larger, business markets like New York and Chicago typically lean left and weigh polling results as their populace is larger and their markets focused on businesses. As commenter, Jason, said last week:
“Most of my friends who travel for work every week work for the [Deloittes], McKinseys, [Price Waterhouse Coopers], [Boston Consulting Groups] of the world. That’s what powers the travel demand. Their companies [won’t] let them travel (one said he’d be fired if he broke policy) and their clients won’t pay for it/ don’t want them coming into their premises (and most of their clients are working remotely too). Until that changes, there won’t be a huge resurgence in demand.”
However, there is another possibility. While Spirit and Frontier also fly heavily into leisure markets, Spirit runs lots of major business markets as well. Leisure customers have been cooped up in their homes, cancelled trips and may represent wanderlust that will lead to a leisure recovery when business may take longer to return. Many readers of this blog have debated openly (and likely more in private) whether they could sneak away for a quick change of scenery.
Conclusion
Of the two possible conclusions, I lean heavier toward the leisure market returning faster based in part on anecdotal experiences. Communication with readers, friends, and family has led me to believe that pent up desire to head anywhere that’s not home is informing traveller’s opinions. Further, business travel between major markets has anemic availability and prices are very high, while leisure travel is far more competitive.
What do you think? Is Allegiant’s customer survey result a sign of enthusiasm from leisure travellers, smaller markets or something else?
Just flew them BWI to Sarasota. They are fine. Minor markets only though but cheap fares.
When are you going to start flying to Newark NJ From Punta Gorda
When an airline’s entire business model is built around flying the science-denying-est flat-earther citizens of the country to the not-terribly-cerebral destinations of Vegas and Orlando, it’s hardly surprising their poll would yield these results.
Business travelers and mid- and high-income leisure travelers feel just as cooped up as anyone else, but I’m guessing they’re also better educated on average and more likely to believe in short-term sacrifice for greater good. Allegiant doesn’t pursue that traveler profile.
(Also, it’s “Ryanair,” not “Ryan Air.”)
Spot on James S. This is the same reason why when you go into a Walmart you find less than 50% of people wearing masks and following social distancing rules, but when you go to Whole Foods, compliance is 100%. Allegiant caters to the lower rungs of society.
Ryan and James, these “lower rungs of society” are the people that drive the trucks and work the fields and stock your Whole Food shelves. I’d like to see you live without them. Show some respect.
No disrespect at all in what I said. Many of them are vital and they are all human beings. But, that does not change the fact that this airline appeals to folks on the lower rungs of society and that it is more socially acceptable not to wear masks or socially distance in that segment of society than it is in the professional class.
Class has always been an issue in America. Read the book “White Trash”. It makes a very compelling argument that class has mattered as much as race as a force in American history – and both are very closely related.
@Ryan – to be fair, the people that I know flying Allegiant (to Ralph’s point) are those that have vacation homes in tropical locations and fly between them. I think it’s easy to picture Allegiant as small market trips to Las Vegas for a bachelor party weekend – but that may not be the full picture.
Most of those smaller markets simply don’t offer other direct service. For example, if you want to fly from Des Moines, IA to Tampa, FL, you have an option on a non-stop flight to St. Petersburg with discounter Allegiant (2.5 hour transit time) or connecting on any number of other carriers with a minimum transit time of five hours.
On several Spirit flights to Fort Myers I have taken from Pittsbrugh, many passengers can be overheard talking to seatmates discussing their movements between homes. Some people just hate layovers or place a higher value on non-stop flights than flying a traditional carrier which is likely more expensive and offers the same level of service and costs for extras.
To your point about the masks at Wal-Mart vs. Whole Foods, that also assumes that mask wearers are intelligent and more well to-do than those who do not wear masks. That is not an accurate statement, I know complete idiots that wear masks and geniuses that do the same. The same is true for those who do not wear masks.
@ Kyle. Class has nothing to due with intelligence. It is more of a cultural and socioeconomic distinction. It is more socially acceptable to question social distancing and the use of masks in the working and lower middle classes than it is amongst the professional class. And the thing is, the folks questioning social distancing/masks, could end up being right. We just don’t know.
I live in an Allegiant market. They fly the largest equipment into our local airport to Mesa and Punta Gorda. My parents are in Naples, so it would be an option for us, but from what I have observed, it is not the right choice for us (the lack of a premium cabin is also a big factor).
James S. I’m glad you think you’re smart, confidence is a great thing, ignorance on the other hand is not. At this point most people have sacrificed, and we have been largely able to flatten the curve (it’s especially flat in a lot of rural America) as a result. That , in the beginning, was the entire purpose of our shared sacrifice. There aren’t many (if any) overwhelmed areas where people aren’t able to seek medical attention, are you now suggesting that we need to wait for a cure or a vaccine to be able to live our lives? What if it never comes? I think your sentiment is sad and is falsely portrayed as being responsible and moral. Now that our health care system is capable of handling cases, the choice is personal, not right or wrong. If you’re old or immuno compromised stay home, if you’re not, live as you see fit. In the end those that are willing to venture out may end up saving more lives than if they remained in doors if herd immunity can be obtained. Keep calling yourself smart as you remain locked in doors and waste away on your sofa. I’m relatively young (38), educated, and willing to take a weighed risk on traveling. I also believe the earth is round.
James, you obviously know nothing about the Allegiant customer. Like every carrier, Allegiant does have some lower income and less educated customers. However a large percentage of Allegiant’s customers have substantial wealth, are well educated and own more than one home. They choose to fly on Allegiant because they can fly non-stop between two city pairs, which is why the route was established in the first place. Furthermore, many passengers have told me they traveled on Delta, United and American when they traveled for business, but now that they have retired they can fly nonstop between their two homes without the hassle of a layover at a large hub airport. While at the airport I have observed the majority of Allegiant passengers wearing masks.
Wow i thought the left felt the right was the ones that prejudged and stereotyped people
My daughter and I flew Allegiant from Punrta Gorda Florida to Toledo Ohio recently. We reserved our seats ahead of time and also registered for a car to be ready for us in Toledo Ohio. Just Before boarding we were informed that a flight to Niagara Falls was to be added to our flight also. After we boarded we just discovered that our seat numbers had been changed. We needed priority for my daughter who is handicapped. She did not have the [leg room] that she needed due to a brace on her leg. Distancing was not practiced on this flight. We had people all around us with no empty spaces. The store just says did not wear mask even as they served us hand-to-hand with drinks.
Due to any electrical problem at the beginning of the flight we arrived in Toledo one and a 1/2 hours late. Because of the late hour our car rentals had all closed in Toledo and we were stranded along with several other groups. We ended up having to pay over $150 to have a cab bring us to Findlay Ohio. We were very very upset with this trip. Granted most of the passengers wore mask but the the staff on the airplane did not.
I enjoy flying Allegiant from day one. Friendly staff…convenient options for departure and arrival. I’ll continue being an Allegiant customer for my trips. Thanks Allegiant