Allegiant typically operates any given route only on limited days of the week. For travelers looking to book a longer or shorter trip, the company loses out on that potential ticket sale. And, more importantly to the business model, it loses out on the associated hotel, rental car, and other ancillary bookings.
Allegiant sees significant potential carrying leisure travelers to Mexican resort destinations, but the cost – both real and relative to domestic expansion – is too high. Viva Aerobus wants to expand deeper into the US leisure segment, but its prior attempts mostly failed. Together, however, the two believe they can become a strong player in the transborder market, commanding a double digit share.