Allegiant is plotting major revamp for loyalty program, building on breakneck growth
Quick summary
- Allegiant Air is planning a significant overhaul of its Allways Rewards loyalty program, aiming to enhance its appeal for leisure travelers.
- The current program is straightforward, allowing members to redeem points for flight credits at a fixed value, but lacks status tiers or premium seat benefits.
- Executives suggest the revamped program may incorporate elements from traditional airline loyalty models while maintaining flexibility for infrequent flyers.
- Allegiant's focus remains on serving smaller U.S. cities and vacation destinations, where it often faces little competition.
What to consider
- No details have been shared on potential new features, status levels or premium seat access in the upcoming program.
- The current loyalty setup does not reward frequent flying or spending with upgrades or elite benefits.
- Allegiant's customer base primarily consists of leisure travelers who may fly only a few times per year.
What you'll miss from the article
- Insights into how Allegiant’s loyalty program compares to other budget carriers and what changes could make it more rewarding for different types of travelers.
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Allegiant Air has launched dozens of new routes, and has a growing fleet of brand-new planes. Up next, perhaps? A re-imagined loyalty program.
Executives at the budget airline tell TPG they're in the early stages of planning a major revamp for the program known today as Allways Rewards — and the credit card it offers as part of the program.
"We need to take another look at our loyalty program and our cobranded program," Drew Wells, Allegiant chief commercial officer, told TPG in a recent interview at the carrier's Las Vegas headquarters.
Building on a simple program
Allegiant launched its Allways Rewards program just over four years ago, in 2021. A far cry from the complex and far-reaching programs offered by its larger competitors, Allegiant's setup is pretty simple: Members earn 1 point per dollar on bookings, which can be redeemed at a penny apiece.
Essentially, $100 spent with the airline gets you $1 in flight credits you can use to reduce the cost of your next flight.
It's something that Allegiant hopes to build on with a re-imagined program:
"Some elements of traditional programs that everyone is used to today, but also making sure that we're maintaining that flexibility that was built into the [Allegiant Allways] program from its inception," said Altair Dahrouch, Allegiant's director of commercial products, who has been tasked with overseeing the loyalty revamp.
Airlines cash in on loyalty
Since Allegiant launched Allways in late 2021, loyalty programs have become even bigger business for airlines than they were already.
This year, Delta Air Lines figures to make more than $7 billion from its credit card partnership with American Express. And loyalty was perhaps the most-anticipated aspect of the biggest U.S. airline merger in recent years between Alaska Airlines and Hawaiian Airlines, which last month culminated in the reveal of Atmos Rewards.
Allegiant, of course, is nothing like Delta — or Alaska or Hawaiian, for that matter (even if it is mulling inflight Wi-Fi for its planes).
The airline is known for flying travelers between underserved cities and vacation destinations, from Orlando to Punta Gorda, Florida, and new favorite Gulf Shores, Alabama.
It expected to make a far more modest $140 million through its cobranded credit card program, executives shared in January.
Many of its passengers fly only a few times each year — a fact that loomed large when the carrier first launched what was essentially a cash back loyalty program, once dubbed the "first airline loyalty program designed specifically for leisure travelers."
Yet, the airline also boasts a loyal following, especially in small- and medium-sized U.S. cities that saw marked reductions in commercial air service during (and after) the COVID-19 pandemic.
"There are so many cities where we are either the biggest [airline] in town, or perhaps the only game in town. And there's a very compelling reason for those customers … to interact with us at a deeper level," Wells said. "There's more we can do to unlock that."
What could an Allegiant Allways Rewards shakeup mean?
While the carrier did not offer clues into how it's considering updating Allegiant Allways, it's worth noting the current program doesn't offer any sort of status tiers. It also doesn't offer a way to translate frequent flying (or card spending) into free seats in its extra-legroom Allegiant Extra product expanded across its fleet in recent years.
Compare that to budget competitor Frontier Airlines, which this year aimed to encourage flying and card-spending loyalty by rolling out a new companion pass for high-level elites — and first-class upgrades that are expected launch in conjunction with new premium seats later this year.
"There's a lot more that we can do for more of the subsets of our customers," Wells said. "The ball's back in our court."
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- The best credit cards to reach elite status
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