As corporate jet models proliferate in the market and companies seek to boost productivity among their travelers, some travel managers are finding ways to integrate private transport options into their traditional travel management programs. Such integration—beyond simply signing up for private jet services as a supplement to commercial airlines on high-price routes—can take the form of global distribution system-based point of sale tools and booking systems residing on corporate intranets. It soon may spill into the contracting realm, as Delta Air Lines begins offering corporate deals that include private jet services
(see story).A first step toward integration is determining whether corporate aircraft should be made available to all travelers or just a select few top executives. In some cases, a group of select travelers—based on seniority, business mission and/or specific travel needs—are authorized to use their company's private jet.
"As long as it is made available to a larger base of employees beyond just senior leadership, it can be a real productivity tool, and you can get a bigger bang for your buck," said a travel manager at a larger East Coast company, who is finalizing a request for proposals for management of the company's private jet. "In the grand scheme of things, it is expensive but not all that expensive."
"There is a balance between cost containment and providing valued service, especially where there is no solid commercial service in particular markets," added Phil Dunphy, senior manager of global travel for Pfizer Inc. in New York. Dunphy noted that conveniently placed private jets can lead to substantial savings in ground transportation costs.
Mark Stone, CEO of private jet membership company Sentient, pointed to one example at a Scottsdale, Ariz.-based client, which uses its Sentient membership to fly executives to Oklahoma City and San Diego. "For no additional cost, the company decided to put that out to the rest of the company—beyond just top executives—to see if there is anyone else who needs to go to those places," Stone said.
In such cases, the company may opt to list corporate jet seat availability on corporate intranet sites. In other cases, companies rely on such global distribution system tools as Sabre's Business Aviator and Worldspan's Corporate Fleet to include private jet availability at the point of sale
(BTN, March 10, 2003).Two of WorldTravel BTI's clients are preparing to deploy such GDS tools, according to Dixie Akins, the travel management company's vice president of internal travel technology solutions. In the majority of cases, however, WorldTravel uses manual processes to help clients manage private jet inventory.
"We do everything from taking the call and contacting the charter company to making the reservation and arranging ancillary services like meals and ground transportation," Akins said. "After we build a reservation, we transmit the information to our back office so we can provide tracking and reporting. That part is automated." Akins noted that some third-party systems designed to interface with GDSs were too expensive to develop, but said Sabre's Business Aviator "appears to be a very good tool."
Fractionals Losing Momentum?Meanwhile, following explosive growth in fractional jet programs, some in the industry suggested their attractiveness in the corporate market is waning. Sentient's Stone, with a vested interest in corporations moving from fractional shares toward membership models, said his company nine months ago began courting existing fractional owners. "You don't buy hotel properties just because you stay at hotels," he said. "You pay for it as you use it."
Membership models now are more attractive than fractional shares to corporate boards and shareholders, Stone said. "It is a very comforting thought for travel managers to have one call to make to their membership company to accommodate multiple travelers, rather than being almost a charter broker who has to make several calls to deal with various fractional shares the company may own."
"We have done more to help people get out of their fractional programs than anything else," added Brent Garback, CEO of Total Travel Management.
Garback also provided words of caution to travel managers considering corporate jet models. "The most dangerous trend I see is the number of companies springing up, offering convenience and schedule and all the benefits of a corporate flight department without actually operating a corporate flight department," he said. "Yet, for all intents and purposes, they are just glorified charter operators."