About Allegiant Travel Company
Allegiant Travel pledges to serve the vacation needs of US residents in about 45 states and Puerto Rico. The company provides nonstop flights to tourist destinations such as Las Vegas, Los Angeles, and Orlando, Florida, Phoenix and other routes. Besides providing scheduled air transportation which sells travel on more than 520 routes to nearly 130 cities, the company also supply unbundled air-related services and products, as well as offering third party travel products such as hotel rooms and shuttle, rental cars to its passengers. Allegiant Travel was founded in 1997.
The company operates in three operating segment: Airline, Sunseeker Resort, and other non-airline.
The Airline segment operates as a single business unit and includes all scheduled service air transportation, ancillary air-related products and services, third party products and services, fixed fee contract air transportation and other airline-related revenue.
The Sunseeker Resort segment represents activity related to the development and construction of Sunseeker Resort in Southwest Florida, as well as the operation of Kingsway golf course. The golf course is a short drive from the resort site and is considered, from a planning and strategic perspective, to be an additional resort amenity.
The other non-airline segment includes the Teesnap golf course management solution and Allegiant Nonstop family entertainment centers. Allegiant Nonstop family entertainment centers are comprised of games, attractions, and food facilities
Overall, passenger accounts for about 95% of total revenue.
Headquartered in Las Vegas, the company has a route network providing service on about 465 routes between nearly 100 cities, more than 25 leisure destinations and serving some 45 US states and Puerto Rico.
Sales and Marketing
Its website is its primary distribution method, and it also sells through its call center and at its airport ticket counters. In addition, it markets products and services to its customers through digital advertising. It may also advertise in local print publications, on the radio and/or television, to introduce its new service to the community.
Advertising expense was $29.1 million, $28.8 million and $20.9 million for 2019, 2018 and 2017, respectively.
The company's revenue in 2019 increased by $173.5 million to $1.8 billion compared to $1.7 billion in the prior year. The increase was due to higher passenger revenues and third party products revenue.
Net income for fiscal 2019 increased to $232.1 million compared to $161.8 million in the prior year.
Cash held by the company at the end of 2019 increased to $136.8 million compared to $95.9 million in the prior year. Cash provided by operations and financing activities were $442.2 million and $75.1 million, respectively. Cash used by investing was $476.5 million, mainly for purchase of property and equipment, including capitalized interest.
The company's low cost distribution strategy results in reduced expenses by avoiding the fees associated with the use of GDS distribution points. This distribution strategy also permits Allegiant to closely manage ancillary product offerings and pricing while developing and maintaining a direct relationship with its customers. Allegiant believe this continuous communication will result in substantial benefits over time. With its own automation system, the company has the ability to continually change ancillary product offerings and pricing points, which allows the company to find the optimal pricing levels for its various offerings. Allegiant believes this would be difficult and impractical to achieve through the use of the GDS.
1201 N Town Center Dr
Las Vegas, NV 89144-6307
Phone: 1 (702) 851-7300
Employer Type: Publicly Owned
Stock Symbol: ALGT
Stock Exchange: , NASDAQ
Chairman and CEO: Maurice J. Gallagher
President: John T. Redmond
SVP, CFO, and Interim COO: D. Scott Sheldon
Employees (This Location): 43
Employees (All Locations): 4,697
Las Vegas, NV
Las Vegas, NV