Boosted by mobile tech and demand in secondary markets,
private jet suppliers now offer a variety of service levels, booking styles and
corporate agreements. Here are four U.S. booking
engines, three operators & the inroads they’re making into corporate
managed travel.
JetInsight
This booking engine provides operators a network and
technology platform. It does not add every possible aircraft but rather
handpicks “the highest-quality operators focused on safety and customer
service,” according to founder and CEO Dave Benjamin. Primarily for the United
States, its aircraft reach worldwide.
How it works: Customers search,
view options, book and pay online in moments.
Fleet: Aircraft range from
turboprops to heavy jets like the Gulfstream V.
Traffic: “We hope to continue
growing as fast as we can handle in 2016,” according to Benjamin.
Pricing: No membership fees, annual fees or commitments. Operators
determine rates, and JetInsight technology calculates cost as requests are
received. “As we grow the network, we are able to route aircraft more
efficiently, and we expect prices to decrease significantly.”
Corporate travel penetration: A
slight majority of business is corporate. JetInsight has had “initial
conversations” with corporate travel buyers but is working to “deliver the
right experience for them from the start.”
Distribution: It is looking into travel management
company collaborations.
JetSmarter
The mobile-based jet supplier aims to “make flying private
something accessible to the masses, not just a privileged 1 percent,” said CEO
Sergey Petrossov.
How it works: Via the app,
passengers charter entire aircraft, space on scheduled flights or space on
flights assembled from pooled demand. They often fly within six hours of
booking.
Fleet: More than 800 carrier
partners around the world.
Traffic: More than 300,000
have downloaded the app, a monthly growth rate of 15 to 20 percent since its
March 2013 launch.
Pricing: A $3,500 initiation fee,
plus $9,675 annually. Memberships include free flights on one-way JetDeals
flights, as well as free seats on regularly scheduled shuttles including
Dallas-Houston, New York City-Chicago, New York City-Los Angeles and Los
Angeles-San Francisco. Nonmembers can book these at discounted rates. Additional
membership amenities include wholesale charter pricing and a luxury concierge
service.
Corporate travel penetration: A
typical user, Petrossov said, is a corporate traveler needing to book a
last-minute trip. Corporate travel buyers also have booked charters and seats.
OpenJet
OpenJet’s cloud-based management software for private jet
operators calculates and modifies the availability of fleet and crews in real
time.
How it works: Travel
arrangers submit origin and destination, date and number of travelers and
OpenJet checks crew availability, runway configuration, fuel prices and
aircraft performance, among other data points. Arrangers receive a choice of
jet types and prices within 45 seconds and pay online.
Fleet: Turboprop to
midsize. It partners with five operators in Europe and will expand to the
United States this year.
Traffic: €1.5 million in
revenue projected for 2016.
Pricing: OpenJet takes fees
from operators for each flight sold and costs bookers no more than direct
booking with the operators.
Corporate travel penetration: 65
percent corporate and 35 percent leisure. Corporate travel buyers are OpenJet’s
“first target,” and it is launching a commercial campaign aimed at corporate
travel managers, COO Raphael Vullierme said.
Distribution: A partnership
with Amadeus launched in January, and others are forthcoming, Vullierme said.
Victor
Victor allows travelers to search, com-pare and book private
jets to “cut out the inconsistency of brokers,” according to senior vice
president for North America David Young.
How it works: Travelers
search routes via mobile or desktop, and Victor responds within an hour with
multiple price estimates.
Fleet: More than 7,000 jets
worldwide.
Traffic: Membership grew
260 percent from May 2014 to May 2015, and the three-year average for sales has
grown 142 percent per year, Young said. Victor introduced an app in April 2015
that accounted for half the year’s bookings.
Pricing: Flights booked through
the app have ranged from $7,500 to $250,000, according to Young. Victor caps
booking fees and provides “complete trans-parency of pricing and flight
details.”
Corporate travel penetration: Its
membership roster includes corp-orations and C-suite executives. Travel buyers
use the tool to “quickly create bespoke plans with preferred operators,” Young
said.
Distribution: It
has established relationships with TMCs like the United Kingdom-based CTI.
Three Private Jet Operators
Jet Edge
The on-demand operator flies super medium, ultra-long-range,
large-cabin planes, according to CEO Bill Papariella.
How it works: A significant
volume is booked by phone, though digital delivery, including via JetSmarter,
is growing.
Fleet: The fleet—50 jets
based in Tokyo, Hong Kong and the United States’ West Coast, Northeast and
Southeast—has grown 38 percent annually.
Traffic: Flight hours
booked have grown between 32 percent and 35 percent each year, and Jet Edge
would like to push that up to 50 percent. “We’re selling 60 percent to
capacity, and we probably could have 80 percent,” Papariella said.
Pricing: Based on market
rates and varies depending on aircraft type and age.
Corporate travel penetration: Fifteen
sales executives manage a 50/50 mix of business and leisure. Jet Edge is
working on “making ourselves more known” to corporate travel managers.
Distribution: It’s pursuing
TMCs as part of its business-optimization efforts this year.
OneJet
The regional network operates scheduled flights between
markets that have corporate demand but few nonstop options, such as
Indianapolis, Milwaukee, Pittsburgh and Hartford, Conn.
How it works: It operates out of
main airports, so the passenger experience is like a standard airline’s. It
participates in TSA PreCheck to speed up security for passengers, who can book
through corporate points of sale and through online travel retailers like
Expedia.
Fleet: Hawker 400 light jet
aircraft.
Traffic: Yields are growing
between 10 percent and 15 percent every month as corporate traction and usage
increase, the company reported.
Pricing: It’s based on demand and
the cost of operating the segment, the reverse of standard airline revenue
management; a flight will operate even with one ticket sold, so that first
ticket could be priced at a “hurdle rate.” Highest fares are two to three times
the lowest connecting fare, which is similar to full-fare economy class,
president and CEO Matt Maguire said.
Corporate travel penetration: It has
preferred agreements with 10 Fortune 500 companies, including FedEx.
Distribution: Partners with
American Express Global Business Travel, BCD Travel and Carlson Wagonlit
Travel. Flights are available via Sabre, Travelport, Worldspan and Apollo. ARC
handles e-ticketing and settlements.
VistaJet
This Swiss luxury jet-service supplier opened its first
office in the United States in the fall. Foreign companies cannot legally
operate commercial aircraft in the United States, so Jet Aviation operates
there as VistaJet.
How it works: The supplier looks
for customers that can commit to 100 flight hours per year, but terms are
flexible.
Fleet: Typically Bombardier
aircraft from Challenger 350 up to the Global. The fleet averages 18 months
old.
Traffic: It flew into
almost 900 airports in 2015, including Dubai, Geneva, Hong Kong, London and New
York City.
Pricing: VistaJet bills only for
occupied flight hours, leaving off ferry charges and anything else following
passenger drop-off, according to VistaJet U.S. president Ron Silverman. No
monthly management fee, and leftover hours can be rolled over into a subsequent
contract year.
Corporate travel penetration: VistaJet
does not typically deal with procurement departments, as luxury brands do not
go hand-in-hand with procurement pros’ cost-cutting goals, but it often works
directly with CEOs and CFOs. It targets three kinds of Fortune 500
corporations: those that do not have flight departments, those that do not have
international ranges and those that need to fill gaps when aircraft are out of
service or pilots are on vacation.