Vacation Packages = Big Commissions For Weeklong Vacations
A few big points to consider:
1. Allegiant makes money on vacation packages - airfare, hotel, car rental and excursions at every vacation destination they serve - YOU MUST CONSIDER THE ENTIRE VACATION PACKAGE WHEN YOU THINK OF ALLEGIANT SINCE IT GETS A COMMISSION ON EVERYTHING - NOT JUST THE SEAT FARE (it's a different business model)
2. Most flights to Hawaii will likely be offered only a few days per week - not many daily flights - so, they should fill up
3. Most passengers who travel to Hawaii go for at least one week - so, the commissions on the hotel rooms, car rental and side trips will add up fast over longer vacations (when compared to quick LAS or FLL trips).
Hawaii should be a huge money maker for Allegiant. If Allegiant only flies 6 757s, they will probably split destinations around the West Coast to just 2-3 flights per week. I could imagine service to Honolulu from Palm Springs, Eugene, Bellingham, Mesa Gateway, Las Vegas, Reno, Fresno, Oakland, Idaho Falls, Spokane, Tucson and any other location that could fill a 757 at least twice a week (and a runway that could accomodate a fully loaded 757). Plus, all passengers will be paying the mandatory $35 for small bags in the cabin since they will likely be spending at least a week in Hawaii.
I wonder if Allegiant would order more 757s - out of the 6 I imagine 5 will be operational with one on standby. Allegiant would need to compete with Fedex for used 757s. Personally, I think Allegiant could fill 15 757s if they picked the right locations and flew 2-3 times per week at very low fares (since the total vacation package is the main driver). Any word on whether more 757s would be in the pipeline?
So, what's the word on bidding the 757? Will it be as senior as most people think? Are the 757 pilot bases LAS and Honolulu?