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Allegiant Air changes the business model for US low cost carriers
Thursday, December 14, 2006
Ryanair is generally accorded “rock star” status for its prowess for generating non-ticket revenue from its customers. But another star is standing in the curtains and may take a portion of the stage from this European phenomenon.

Allegiant Air reports it generated ancillary revenues of €10.79 (US$13.58) per passenger during the first 6 months of 2006, which substantially bests the €7.84 (US$9.87) posted by Ryanair for the same period.

An IdeaWorks analysis reveals Las Vegas-based Allegiant Air has perfected its craft in the most unlikely of markets – the United States – where airlines don’t typically charge extra for all the extras they provide. Here is a sampling of the observations from the analysis:
Michael Verikios - Thursday, December 14, 2006
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Poll
How do you expect luxury travel to perform in times of economic downturn?.

Providers of luxury travel products are going to witness shorter stays by their customers and an increase in seasonality.

People are going to become more value conscious and will opt for those luxury offers that represent a convincing value-for-money proposition. Providers of overpriced services are those to feel the pinch.

Both people paying for their personal trips and firms paying for their top executives' business trips will cut back on travel expenses, thus affecting all luxury travel providers.

It is going to be business as usual. Those people opting for high-end travel products are not going to be affected by the looming crisis.

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