Allegiant Air: overcoming scepticism as it diversifies its business

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Unsurprisingly, Allegiant Travel is meeting scepticism from the investment community in response to its planned Sunseeker resort scheduled to open in Southwest Florida in 2020. Any time an airline branches outside its core business of transporting passengers investors get antsy, and in most cases that anxiety is warranted.

But there's a new twist to it. Allegiant’s enthusiasm for Sunseeker remains as robust as it was when the company announced the new venture a year ago. That excitement stems from Allegiant’s ability to mine passenger data to determine demand for the resort, which has undergone shifts in its business model over the course of a year.

Of course, the biggest risk for Allegiant in its new venture is in meeting its projections for Sunseeker, which include revenue of USD113 million by year five of operations, with an EBITDA margin of 40.9%.

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