Allegiant Air’s latest promotion puts its business model on its sleeve

July 18th, 2008 at 12:36pm Thomas V. Bona

For a limited time, if you buy a ticket to Las Vegas and a hotel package, you get a second ticket free.

But, wait, you may say! With fuel prices so high, how can they afford to give tickets away? Because that’s not where they’re making their money. They make it on hotel packages, sightseeing tours and other add ons you can buy. Basically, they just want to recoup their costs of getting you there when they set airfare. With this special, they’re hoping to entice more package trips to make up for declining travel nationwide. Also, if you have one good experience with Allegiant, you’re more likely to use them again.

The deal is good out of RFD, but you have to buy by July 30 for travel by the end of the year. I priced a three-night stay on the strip as low as $637, including airfare, room, airport shuttle and taxes and fees. But my wife tells me we’re traveling enough this year.

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