The Dramatic Rise Of On-Demand Private Jet Charter versus a Guaranteed Rate Jet Card.
Up until the Summer of 2022, Jet-Cards were very much in vogue, major players in the market and boutique brokers alike were offering competitive rates, guaranteed availability as low as 72 hours and the ease of simply picking up the phone, booking your aircraft and paying the same rate every time you flew, total simplicity and peace of mind!
‘Times they are a changing’ though, while peak day restrictions have been rising for some time, the Jet-Card fine print has been expanding rapidly in multiple directions so the providers can still offer what at first glance look to be competitive rates. Following the post-Covid bounce in flying privately, the primary ramification has been an increasing problem with availability. Consequently, the major providers have been increasing availability from 24/48 or 72 hours to 120 and over.
Peak day restrictions have increased from 15 to 20 days to upwards of 45 and surcharges for flying on one of these peak days have increased to as much as 50%. When you throw in dubious charges like taxi-time, amongst others, which can add as much as 20-30 minutes per flight, do the guaranteed rate programs still offer value for money? We don’t believe so and consequently paused our own jet card program because our On-Demand rates were significantly lower than the best rates offered anywhere else on the market, without restrictions, clauses, peak day blackouts, surcharges, contractual obligations or deposits. Simply put, our On-Demand clients are still booking same-day or 24-hour notice flights and paying less for the privilege, all the while enjoying the impeccable, tailored service that we provide.
In a recent article published in Elite Traveller titled ‘Going for Broker: The rise of On-demand Private Jet Charters,’ Doug Gollan, Founder and Editor-in-Chief of Private Jet Comparisons wrote; More savvy flyers are adding a good charter broker to their portfolio of private aviation solutions. The use of brokers for on-demand private jet charters increased by nearly 20% year-over-year, according to Private Jet Card Comparisons, a buyer’s guide to private aviation programs. Brokers say they are not surprised. Here’s why.
First, as demand surged, jet card providers changed the rules of their programs, adding peak days, longer booking windows and more surcharges, and increasing minimum flight charges and restricting where guaranteed rates were guaranteed. At the same time, production is slow, with a backlog of orders for fractional ownership buyers limiting immediate access in many cases. In the US, new customers with NetJets wait over a year for their airplanes to arrive. Recent coverage of financial issues with several providers is making users more apprehensive about giving providers big sums of money up-front.’
The market has undoubtedly changed, while jet cards will always have their benefits, the ultimate value that they represent is no longer what it was. As a company that offers private aviation solutions that are tailored to the individual, not the flying habits of others, allow us to show you how you can be flying with maximum flexibility, at maximum value while experiencing immaculate service tailored individually to you.
Do you have any questions?
For a side-by-side comparison or should you have any questions or wish to enquire about our service, please get in touch at charter@365 aviation.com.