Allegiant Travel Macro Environmental Analysis (ALGT)


With the increasing number of people who are now starting to retire, this will certainly be a good thing for any company like Allegiant Travel whose service is deliberately targeted to many travelers. Retired people themselves can in general have a much more flexible schedule and free time for unlimited entertainment. The industry inside the restaurant itself has undergone many changes over the years and coupled with the various retired populations who will be able to adjust their schedule just to save more of their money. You can even see for yourself what success has spread across the country.

Allegiant Travel can take advantage of this flexible schedule and the interest of this population to find the best price. Twenty-one percent of travelers are born before 1946 and this group is estimated to carry 4.1 trips per year each. In addition, older baby boomers were born between 1946-1954 makeups 15 percent of the holiday travel population. Due to U.S. population Continues to age and the growing pension population, it can be expected that demand for cheap holidays will also increase.


The economy itself can actually play a very important role especially in health issues in all members of the company and also fewer people can say that at least the last 5 years it’s easier to do that. Americans themselves are now a lot of found more efficient in spending money when compared to 5 years ago. There is even a report by Fidelity that could show that this personal debt that goes down will lead to a very good investment later.

It can even indicate how erratic these populations are leading to the success of Allegiant Travel over the last 5 years when other airlines lose money. They focus on keeping costs down and delivering their services at the lowest price point. Focusing on innovation and being a price leader has provided Allegiant Travel with a strategic advantage over other major operators. Although in most sectors the larger the company the lower the cost due to economies of scale, this is not the case in the aviation business.


In a travel industry alone they will usually be easier in grouping tourists to be one of two categories better at leisure or even when business is underway. Probably for every traveler type who already has more needs that are far more unique and also in very different destinations in each of their minds that are out of desires to be able to have a much better flight experience. There are many people who can estimate that the number of tourists for 3/4 of all domestic travel is taken in 2011. This regular businessman is interested in a consistent schedule and open trip karimunjawa enjoys the convenience of earning points while travelers only book multiple trips per year and are willing to give up points To secure a lower price. This is a market that Allegiant Travel relies on for being a low-cost leader who runs varying schedules throughout the season to ensure flight is always running at their maximum capacity.

Political Regulation:
Airlines operating in the United States are governed by the Federal Aviation Administration (FAA). FAA is an agent of the US Department of Transportation which regulates civil aviation in the U.S. Meanwhile, for the Domestic Security Agency in fact also still play an active role in the flight journey that now has a lot of direct interaction in all the passengers that existed before they later climbed into the plane. The additional security measures required for travelers since 9/11 can be a major factor behind the increasing frustration voiced by tourists. U.S. Travel Association Study In 2008 showed that travelers avoided about 41 million trips within 12 months due to perceived air travel disruption. Although airlines like Allegiant Travel have no control over how Homeland Security does their work, they can lobby for more efficient airport security which in turn can help increase their profits.

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