Alaska Air Group’s ALK wholly owned subsidiary Alaska Airlines recently announced that its biggest sale of the year is scheduled to start at 5 pm Pacific Time on Sunday, Nov 27. The sale is part of the widely popular concept of Cyber Monday in the U.S., which sees thousands of people shopping online. Cyber Monday takes place each year after the long Thanksgiving weekend. Several discounts are offered to encourage customers to shop online.
Alaska Airlines’ data analysts have extensively evaluated the sales of last year to identify some of the trends that dominate airline ticket sales on Cyber Monday. According to data, approximately 40% of Americans make online purchases on this day. The likelihood of deal-seeking travelers booking solo trips is 2.5 times. Moreover, 68% of the travelers book solo trips, probably to take a break from family gatherings after the long weekend. Analysts also found that several customers prefer to travel without children during this period. Additionally, a sizable number of travelers opted for short weekend getaways of around 1–4 days.
Revenue Boosting Opportunity
We believe that Cyber Monday is a good opportunity for the airline to boost revenues. Good deals are sure to attract more customers and would also improve the company’s operational performance for November. Moreover, as the airline prepares for the December holiday season, it can further get an insight into the preferred destinations for customers.
In spite of increasing competition from peers like JetBlue Airways Co.JBLU, Delta Air Lines Inc. DAL and Southwest Airlines Co. LUV, the Alaska Air Group has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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