PRIVATE JET INDUSTRY CALLS FOR MORE EFFICIENCY
A recent survey of private jet charter operators by PrivateFly.com, the online booking platform, highlights
the major opportunities for the private jet industry as it recovers from the economic downturn.
Almost half (45 percent) of operators who responded agreed that the global recession has been their
single biggest challenge to date.
But ironically, for an industry that promises to deliver business efficiency for its customers, the
private charter market is remarkably inefficient. Nearly all (98 percent) recognised that the internet
was beginning to make the industry more efficient, but the wider results do indicate that there is
still a significant opportunity to improve efficiency.
"The charter industry is still highly fragmented and operates predominantly offline with many customers or travel agents choosing the same operator each time they fly, or using a traditional broker. There's an exciting opportunity to bring both transparency and online efficiency to this market, reflecting how the wider travel industry has been transformed in the last ten years" said Adam Twidell, CEO of PrivateFly.
The survey also revealed the following:
FLYING EMPTY
Three quarters (74% percent) of operators say that over a third (30-40%) of their flights are empty as
they reposition for the next flight.
SALES CONVERSION
Nearly two-thirds of operators (61 percent) prepare 20 or more quotes for every charter
sale with almost a quarter, (22 percent) saying that they prepare 40+ quotes per booking.
COST CONSCIOUSNESS
69 percent of operators believe price competitiveness is the single biggest factor in winning charter
business - above speed of returning a quote (17 percent) and their safety record (7 percent).
Commenting on the results, Twidell continued: "While the majority of operators see price competitiveness as
the biggest decision driver for private jet customers, they themselves feel strongly that customer service
and safety are paramount. But there are clearly areas of industry-wide inefficiency - and therefore the
opportunity for cost savings for both operators and customers"
Twidell recognises that there will always be a need for exceptional VIP customer service and industry
expertise, but he believes that these elements can be combined with online efficiencies that
benefit both sides.
"There are major industry challenges and innovations are already under way to tackle them. PrivateFly
brings together an online network of over 2700 global operators, presenting the customer or
travel agent with online price comparison tools - while making it quicker and easier for the
operators to prepare and submit a quote."
"We are matching up customer demand with operator supply, and we continue to add innovative pricing
tools such as our private jet cost calculator and iPhone app. For our aircraft operators,
we have introduced flight search tools and 360 degree imagery to market their aircraft
more broadly and effectively".
-Ends-