Allegiant Air: overcoming scepticism as it diversifies its business
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%.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.