Las-Vegas-based Allegiant Air plans on rolling the dice with tickets prices if their passengers are willing to take that gamble. Their travelers will have the choice of buying flat-rate tickets (presumably at a higher price) or choosing an adjustable-priced ticket based on the fuel market fluctuations. In the latter scenario, ticket buyers will either pay more if fuel prices rise, or they get a refund if fuel prices drop.
Since Allegiant Air is aimed more at leisure passengers than (higher-paying) business travelers, it is impacted greatly by fuel prices. This is an attempt to even the playing field for Allegiant and also benefit their passengers.
Currently, when fuel prices rise, Allegiant might cut flights, which then limits passenger options or changes their plans. The new plan would stabilize flight schedules and provide the opportunity for passengers to actually save money.
Before this plan becomes a reality, it must pass through the Department of Transportation. The DOT’s newest rules are aimed at clarifying all travel costs, making the total price of travel clear at the time of purchase. Still, it is thought the plan, with multi-part payments, will be allowed.
The plan is still months away from realization; but if it happens, it will be interesting to see how it develops. Will other carriers follow? We have seen airlines charge for carry-on bags and some even charge for restroom usage.
At least Allegiant’s plan gives the passenger a chance to save money. To me, that seems worth the gamble.
— John Wroblewski, online contributor
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