Allegiant Airlines Business Model and Strategy

These flashcards cover key concepts related to Allegiant Airlines' business model, operational strategies, and market positioning, enabling students to review essential vocabulary and definitions for their exam.

Niche market strategy

A business approach that focuses on targeting specific market segments, typically underserved by larger competitors.

MD-80 aircraft

Older generation aircraft models used by Allegiant Airlines known for being less fuel-efficient than newer models.

Ancillary revenue

Additional revenue gained through fees for services beyond the ticket price, such as baggage fees, seat selection, and in-flight purchases.

Low-cost airline

An airline that offers lower fares but fewer comforts and services compared to traditional airlines.

Turnaround time

The time taken to land, unload passengers, service the aircraft, and load new passengers before takeoff again.

Customer satisfaction index

A measurement that indicates how products or services supplied by a company meet or surpass customer expectations.

Operational expenses per available seat mile

A metric that reflects the operating cost incurred by an airline for each seat available to be sold for one mile.

Ultra-low-cost carrier (ULCC)

A type of low-cost carrier that aims to maximize revenue by charging consumers for additional services besides the basic fare.

Revenue per employee

A financial metric that indicates the average revenue generated for each employee working for a company.

Market share

The portion of a market controlled by a particular company or product.

Blue Ocean Strategy

A business approach that seeks to create uncontested market space, thereby making competition irrelevant.

Value innovation

A strategy that focuses on increasing value for customers while reducing costs, leading to growth and profit.

Flexibility in growth model

An approach that allows for quick adjustments in business operations, especially in terms of routes or resources, to adapt to market demand.

Outsourcing

The business practice of hiring a third party to perform tasks, handle operations or provide services for the company.

Hotel and resort development

A strategy used by Allegiant Airlines to expand their business model beyond just flights, focusing on comprehensive travel experiences.