The Private Aviation market is growing, but interest in Private Jet ownership is not growing proportionally. Through analysing this trend, GlobeAir is learning how to please the travel needs of a growing, younger clientele of private fliers.
Private Aviation is Resilient
Interest in the Private Aviation industry is growing, but the same cannot be said of Private Jet ownership. Studies conducted over the last years claim that the majority of frequent Private Jet travellers fly for business and prefer membership programs and on-demand chartering services to the ownership model. Private Jet charter operator, GlobeAir, confirms this trend and develops its core competencies on the needs of the modern private travellers.
Who flies private?
It’s time to dismantle old prejudices: it’s not only the world’s billionaires who fly private. With a 1.5 bn dollar income, however, they may be the only ones to afford to own an aircraft. Making up just 1% of the world’s UHNWIs (ultra high net worth individuals), billionaires share travel preferences with the other eight tiers of very wealthy individuals (individuals with a net worth starting from US$30 million up to $1 billion+, according to Wealth X). Among the UHNW individuals who fly privately, the majority travel from hub city to hub city for business. Often, however, the same group travel by Private Jet for leisure. As it stands, UHNWIs of the lowest tiers are increasingly turning to the Private Jet charter industry to arrange their luxury travels.
From ownership to chartering
Private Jet owners benefit from high flexibility, control, and a 0 lead-time when it comes to reservations. In other words, they can fly whenever they like. So, why do fewer and fewer ultra-wealthy elite individuals choose to own a Private Jet? Apart from the very high costs (upfront investment, maintenance, crew, depreciation), owning an aircraft isn’t the most discreet way to fly privately, as there’s a high risk that your plane could be recognised.
Ownership-specific downsides add to the increasing pros of chartering Private Jet transfers, turning more and more ultra-wealthy individuals to take the latter option
With attractive offerings for frequent flyers and smooth on-demand services, Private Jet operators like GlobeAir appeal to those who want to reach their destinations on time and incognito. To better illustrate this phenomenon, we’ve been looking at the pros and cons of Private Jet ownership compared to membership programs and on-demand chartering.
|PRIVATE JET OWNERSHIP||PRIVATE JET MEMBERSHIP PROGRAMS||ON-DEMAND PRIVATE JET CHARTER|
| || || |
*Depending on the operator chosen, guaranteed availabilities may be submitted to change.
How does Private Jet Chartering work?
On-demand chartering means renting a Private Jet for a short-haul journey to a favourite destination. One can either book a flight via the original company which operates the flights, the operator, or via a brokerage system. Brokers usually compare flights without arranging for additional services (e.g., limo or taxi transfers once at destination). The competitive advantage of Private Jet charter operators is measured by guaranteed bookings rate and the capability of arranging transfers according to the traveller’s need. To accommodate last minute requests at best, it’s crucial to possess a large fleet like GlobeAir’s.
Frequent Flyer Programs
Both owners and non-owners choose to subscribe to Private Jet membership programs. When an individual purchases a membership program (also referred to as jet cards) from reliable Private Jet operators, they sign up to a flexible but secure way of travelling privately. After an upfront purchase of in-flight hours to be consumed within a specified period, flights can be arranged on demand; this is the preferred option for all those who wish to fly on their own terms without bearing the ownership of an aircraft. Private Aviation membership programs are designed to operate passengers discreetly and with a crew of their choice. Flight cancellations are regulated in advance and usually accepted between 24-72 hours before departure.
GlobeAir’s Frequent Flyer Programs:
GlobeAir is one of the operators to offer advantageous frequent flyer programs. Frequent flyers can choose among three programs: the Lifestyle, the Executive and the Elite. All of the three offer a dedicated travel advisor and give passengers the possibility to extend their membership to business partners and friends alike. The three programs differ in respect of in-flights hours, guaranteed availability and cancellation fees. The table below describes these differences:
|LIFESTYLE (25h)||EXECUTIVE (50h)||ELITE (100h)|
|Cancellation Fees||Free of charge up to 48 hours before departure, then 3% off||Free of charge up to 48 hours before departure, then 5% off||Free of charge up to 24 hours before departure, then 10% off|
|Payment Terms||€ 25K Prepayment, further costs to be paid as you go||€ 50K Prepayment, further costs to be paid as you go||€ 100K Prepayment, further costs to be paid as you go|
|Positioning Fees||None for hubs (Amsterdam, Geneva, London (Biggin Hill), Munich, Nice, Paris (Le Bourget), Rome, Vienna and Zurich)||None for hubs (Amsterdam, Geneva, London (Biggin Hill), Munich, Nice, Paris (Le Bourget), Rome, Vienna and Zurich)||None for hubs (Amsterdam, Geneva, London (Biggin Hill), Munich, Nice, Paris (Le Bourget), Rome, Vienna and Zurich)|
On-demand private jet charters for business and luxury
The latest data collected by GlobeAir identifies business and luxury holidays as two of the primary motives to fly privately. Clustered into different psychographic segments, private flyers who are indeed using private jet charter services solely for business purposes make up 22% of the totality of flyers. Additional segments, on the other hand, fly privately both for leisure and for business. The wealthy businessmen segment, for example, which is composed of businessmen in their 50s and 70s, makes up 35% of the private flyers who travel both for leisure and business. With segments composed of people who fly for different motives, the number of private flyers who use private jet charter services for business transfers is clearly expected to be even higher.
A bright future for private jet operators
Private Jet Aviation relies heavily on business people and ultra-wealthy individuals. Private Jet flyers, however, are always on the lookout for the most time-saving ways to travel from A to B. Changes in trends attest that this entails taking advantage of Private Jet operators compared to owning a private aircraft. With attractive offerings, fast online booking systems and secure paying methods, Private Jet Charters are becoming the best-preferred way to travel privately.