Eight private jet predictions for 2011
2011 promises to be an exciting year ahead. Despite the economic downturn, the last twelve months presented many opportunities for the private jet industry, not least through increased levels of short-term enquiries and bookings due to airline failures during snowfalls, ash clouds and industrial action.
I am looking forward to seeing what this New Year has in store for the sector, and believe we will witness many advancements and changes. Here are just some of the things I predict will happen.
1. Increased cost-consciousness.
A key industry trend emerging from the recession is a marked increase in cost-consciousness from private jet customers – which will continue in 2011 as a permanent priority. Both business and leisure users are shopping around more for the best deal, which is driving increased transparency from operators and brokers.
2. Embracing new technology.
The private jet industry is finally moving online in an accelerated fashion and 2011 should see the emergence of additional online search and booking functionality. Private jet customers are increasingly demanding the ability to search for prices online, even if many will prefer a personal VIP phone service to confirm the booking. Similarly, increased usage of smart phones and tablets will see further mobile apps emerging for private jet users on the move.
3. Aircraft trends.
Certain aircraft types look set to soar in 2011 as customers become more specific in their needs, choosing the right size of aircraft for their trip – at the right price point. For example, the new Embraer Phenom 300 will be a major player in the small and medium-sized jet categories, embracing the gap between the two. Much as Embraer’s Legacy did for the medium to large categories five years ago.
4. Empty legs.
Empty legs are one-way repositioning flights and in 2011 will attract more attention than ever before – as private charter operators find new methods of promoting their available inventory, and the industry continues to coordinate demand and supply. Premium leisure customers with a flexible itinerary will play a key role here, travelling one way by private jet and the other by scheduled airline.
5. Industry consolidation.
The industry will continue to tighten as further buyouts and mergers are announced such as smaller operators joining forces; independent FBOs being bought out by the bigger players; more airlines forming alliances with private jet suppliers for VIP transfers; and online networks such as our own bringing a fragmented industry together.
6. Increased travel industry integration.
Private jet charter will increasingly be seen by the travel industry as a viable travel option for both business and premium leisure travellers. With improved online functionality and transparency, TMCs and concierge agents can now confidently provide their customers with rapid response quotes and online booking for private jet travel. This will be a major opportunity for new sector growth.
7. Rise of the charter segment.
Ad-hoc charter will continue to grow as a sub-sector of the industry as existing private jet users migrate from other options. Increased transparency of pricing and improved VIP service levels from charter brokers has increased charter’s appeal to those trading down from the upfront financial commitment of fractional/full ownership or card schemes.
8. Emerging markets.
China will be the key one to watch, with regulations relaxing such as flight plan lead times; expansion of airports and infrastructure; and growth in aircraft manufacturing. In India the high proportion of high net worth individuals will continue to drive demand for changes to their bureaucratic aviation authority.
Every cloud has a silver lining and the recession has been a major catalyst for innovation in the private jet industry, which previously had largely remained unchanged for 10 years. The economic conditions remain challenging, but there is much to look forward to in 2011.
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