Allegiant Air Plans Major Overhaul of Its Loyalty Program

Allegiant Air is on the verge of transforming its loyalty program, Allways Rewards, as part of its broader strategy to enhance customer engagement and capitalize on its rapid growth. The budget airline, known for connecting underserved cities with popular vacation destinations, is exploring significant updates to its loyalty offerings and cobranded credit card, according to insights shared by executives in a recent interview.

Drew Wells, Allegiant’s Chief Commercial Officer, emphasized the need for a fresh perspective on their loyalty program. “We need to take another look at our loyalty program and our cobranded program,” he stated, highlighting the importance of adapting to the evolving landscape of airline loyalty initiatives.

Launched in 2021, the Allways Rewards program has a straightforward structure: members earn 1 point for every dollar spent on bookings, which can be redeemed at a rate of one cent per point. Essentially, this means that spending $100 on Allegiant flights translates to $1 in flight credits for future travel. While this simplicity has attracted a loyal customer base, Allegiant aims to expand its offerings to compete more effectively with larger airlines.

The airline’s leadership is considering integrating elements from traditional loyalty programs while retaining the flexibility that has defined Allways since its inception. Altair Dahrouch, Allegiant’s Director of Commercial Products, is spearheading the loyalty revamp, indicating that the new program could introduce more features that resonate with frequent travelers.

As the airline industry continues to evolve, loyalty programs have become increasingly lucrative. For instance, Delta Air Lines is projected to earn over $7 billion this year from its partnership with American Express, underscoring the financial potential of well-structured loyalty initiatives. Allegiant, however, operates on a different scale, with expectations of generating approximately $140 million through its cobranded credit card program.

Allegiant primarily caters to leisure travelers, many of whom fly only a few times a year. This demographic has shaped the airline’s approach to loyalty, which was initially branded as the “first airline loyalty program designed specifically for leisure travelers.” Despite the limited frequency of travel among its passengers, Allegiant has cultivated a dedicated following, particularly in smaller U.S. cities that have seen a decline in commercial air service during and after the pandemic.

Wells noted the unique position Allegiant holds in many markets, stating, “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.” This sentiment reflects Allegiant’s commitment to enhancing customer loyalty and engagement.

While specific details about the upcoming changes to Allways Rewards remain under wraps, it’s important to note that the current program lacks status tiers and does not offer ways to convert frequent flying or credit card spending into complimentary seats in its extra-legroom product, Allegiant Extra. This contrasts with competitors like Frontier Airlines, which has introduced a companion pass and first-class upgrades to reward its most loyal customers.

Wells expressed optimism about the potential for expanding Allegiant’s loyalty offerings, stating, “There’s a lot more that we can do for more of the subsets of our customers. The ball’s back in our court.” This proactive approach suggests that Allegiant is committed to enhancing its loyalty program to better serve its diverse customer base.

As Allegiant Air embarks on this journey to revamp its loyalty program, travelers can anticipate a more robust and engaging experience that aligns with their needs and preferences. With the airline’s focus on leisure travel and its unique market position, the updates to Allways Rewards could reshape how customers interact with Allegiant in the future.

In conclusion, Allegiant Air’s plans for a significant overhaul of its loyalty program signal a strategic move to enhance customer loyalty and engagement. By reimagining Allways Rewards and introducing new features, Allegiant aims to better serve its customers while navigating the competitive landscape of the airline industry. As these changes unfold, travelers can look forward to a more rewarding experience with Allegiant Air, making their journeys even more enjoyable.