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Allegiant considers major changes to Allways Rewards loyalty program

Allegiant considers major changes to Allways Rewards loyalty program
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Brian Kelly Founder and The Points Guy | The Points Guy

Allegiant Air is preparing to overhaul its Allways Rewards loyalty program, according to statements from airline executives. The company, which has recently expanded its route network and added new aircraft, is now turning its attention to customer rewards and its cobranded credit card.

"We need to take another look at our loyalty program and our cobranded program," said Drew Wells, Allegiant chief commercial officer, in an interview with The Points Guy (TPG) at the airline's Las Vegas headquarters.

The Allways Rewards program was launched in 2021 and differs from the more complex systems used by larger airlines. Members earn one point per dollar spent on bookings, redeemable at a rate of one cent per point. This means that $100 spent results in $1 in flight credits for future travel.

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Altair Dahrouch, Allegiant's director of commercial products overseeing the revamp effort, noted that the new version would try to blend familiar features with flexibility: "Some elements of traditional programs that everyone is used to today, but also making sure that we're maintaining that flexibility that was built into the [Allegiant Allways] program from its inception."

Since introducing Allways Rewards, airline loyalty programs have become increasingly important sources of revenue for carriers. For example, Delta Air Lines expects over $7 billion this year from its credit card partnership with American Express. Recent industry developments include Alaska Airlines and Hawaiian Airlines merging their loyalty efforts under Atmos Rewards.

In contrast to major carriers like Delta or Alaska Airlines, Allegiant focuses on routes between smaller cities and vacation destinations such as Orlando or Gulf Shores. While Allegiant projects a comparatively modest $140 million income from its cobranded credit card this year—a figure shared by executives earlier—its customer base remains loyal due in part to limited competition in many markets it serves.

"There are so many cities where we are either the biggest [airline] in town, or perhaps the only game in town. And there's a very compelling reason for those customers … to interact with us at a deeper level," Wells said. "There's more we can do to unlock that."

Currently, Allways Rewards does not offer status tiers or benefits such as free upgrades into extra-legroom seats—a feature some competitors like Frontier Airlines have introduced alongside companion passes for elite members and plans for first-class upgrades.

"There's a lot more that we can do for more of the subsets of our customers," Wells added. "The ball's back in our court."

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