Allegiant (NASDAQ: ALGT) today announced a five-year collaboration with Amazon Web Services (AWS), Inc., selecting AWS as its Preferred Cloud Provider. With its unique-to-industry focus on leisure travel, providing affordable, nonstop flights to premier vacation destinations, Allegiant has evolved as an integrated travel company, increasingly offering lodging, rental cars and access to special experiences to customers. Known for a nimble air service model which can add or reduce capacity according to seasonal demand, the Las Vegas-based carrier is in a unique position of growth emerging from the COVID-19 pandemic. Working with AWS enables Allegiant to strengthen customer engagement through increased personalization across its digital channels, while affording a more elastic, reliable IT infrastructure with significant development advantages for business units across the company.
“In addition to providing unprecedented access to nonstop flights across our unique network, Allegiant aims to be the leading leisure travel marketplace, bringing our customers destination entertainment experiences like live music and sports events, as well as lodging and rental cars,” said Scott DeAngelo, Allegiant’s executive vice president and chief marketing officer. “Amazon is known for world-class personalization, bringing intelligence and utilizing smart information to create seamless experiences for customers. In collaboration with AWS, Allegiant is bringing richer data and insights to all our customer offerings – to ensure we are taking the right actions to make our customers’ lives better. The platform gives us incredible tools for automation and continuous learning that will improve and optimize the customer experience across our platforms – from website and mobile app to all levels of communication.”
DeAngelo also views AWS as a development platform ideally matched to Allegiant’s recently-launched customer loyalty program, Allways Rewards. “Allways is a generational departure from traditional miles-based airline loyalty, taking its inspiration instead from the best innovative technology and retail programs that make earning, tracking and using rewards incredibly easy,” he said. “Utilizing the AWS platform, Allways will bring a level of continuously improving personalization that is unprecedented in the airline and leisure industry.”
Working with AWS also affords Allegiant a more elastic, scalable information technology infrastructure to support its operations. Since starting to build with AWS this spring, Allegant has already significantly reduced its footprint in traditional fixed data centers, and plans to exit those facilities entirely and move to AWS.
“AWS gives us flexible, nimble infrastructure to match our business model,” said Rob Wilson, executive vice president and chief information officer. “Where fixed data centers are limited by their nature, the cloud environment gives us infinite virtual data centers that not only process information faster, but can also scale up and down to meet our business needs, just as the airline operates in peaks. It also gives us more redundancy and instant disaster recovery if needed, which is essential in our 24/7 business environment.”
While Allegiant has already realized significant cost savings in IT infrastructure, Greg Anderson, Allegiant’s executive vice president and chief financial officer, says that’s just the beginning. “Our work with AWS is about creating business opportunities and efficiencies across the company,” he said. “We are poised to leverage the data mining and predictive analytic capabilities of the cloud to significantly improve business operations with products and solutions that make us better – from our Operations Control Center (OCC) that plans and manages flights across our system, to payment fraud prevention and several corporate functions using advanced computations. This relationship is foundational to our ability to better serve our customers, and to innovate and grow well into the future.”
“Allegiant’s focus is on connecting customers with the people, places, and experiences that matter most via affordable travel,” said David Peller, managing director, travel and hospitality at Amazon Web Services. “Relying on AWS as its preferred cloud provider will enable the company to develop offerings that will meet the travel and leisure needs of customers with greater personalization, connected experiences, and enhanced customer service. AWS’s proven and secure infrastructure, operational experience and reliability, and rate of innovation will help the company maintain its foundation of providing reliable and affordably accessible air travel while helping them meet their goal of becoming a more customer-focused airline.”