A (business) class act – at a price
Business jet travel is being considered by more execs, says SkyShare
Business class or business jet? Growing numbers of industry leaders are considering whether to upgrade from commercial airlines to business jets, according to recent surveys. But there’s a catch … and an opportunity.
Private jet cabins offer a powerful lure for potential clients. Start with time saving, greater flexibility and convenience. Then, add enhanced productivity – courtesy of ever-improving in-flight connectivity – privacy and bespoke services.
Next, consider the push factors away from commercial travel – even when travelling on business class or first-class tickets. SkyShare, the Utah-based business jet services company, sums up the catalogue of woes like this: “Since summer began – and even late into the spring – the airline industry has been ravaged by a slew of technical malfunctions, emergency landings, and lost baggage woes.”
Both pull and push factors are attracting a new generation of potential clients to consider business aviation for the first time, according to SkyShare. And it claims to have the evidence to back its claim. Up to 84% of c-suite executives and senior business leaders are interested in private flying, claims its recent survey of 1,000 full-time business leaders.
The time-saving benefits of private jet flying were prioritised by 77% of respondents while 74% valued increased scheduling flexibility. More than two-thirds (69%) appreciate reduced stress associated with private flights. For them, that means eliminating layovers, never losing bags, going straight to the plane, avoiding cancellations and delays. Just over a third (35%) highlight the importance of spending more time with family afforded by business aviation.
The answers came from a travel-savvy audience. More than a third (37%) of respondents reported traveling monthly for business, with 77% using commercial flights as their main mode of transport.
Further evidence of the sharpening appetite for business travel came from last month’s Global Business Travel Association’s (GBTA’s) convention in Atlanta, Georgia. Nearly two-thirds (64%) of business travellers surveyed report increased spending compared with last year, according to the association’s latest report 2024 GBTA Business Travel Index Outlook – Annual Global Report and Forecast. Plus, the survey of 4,100 business travellers worldwide, also revealed 81% believe business travel is worthwhile in achieving their objectives.
More than half (58%) of business travellers blend business and leisure travel more than ever before.
Whatever the motive, business travel is building to a powerful financial contribution this year. Global spending for business travel is expected to reach a record $1.48trn by the end of December. By 2028, business travel spending is projected to exceed $2trn – boosted by economic stability, pent-up demand and recovery momentum.
“At its core, business travel is about making human connections,” says Suzanne Neufang, CEO of GBTA. “We are very optimistic for what lies ahead for business travel – and for those who work in and with this industry.”
But now the catch (and the opportunity). GBTA’s survey showed business travellers estimate their spending averaged a modest $834 per person based on their last business trip.
This was reflected in the SkyShare survey where 75% of respondents cited cost as the main barrier to using private aviation. The second most important deterrent was a perceived lack of information on services and the industry, selected by about 41% of respondents.
“This survey was an opportunity to hear from folks who want to be our customers,” said Cory Bengtzen, CEO and founder, SkyShare. “How can we meet them where they are? All business leaders would love to fly private, but there are still a multitude of hurdles to overcome, with cost being the most significant hurdle.”
To address these concerns, travel solutions must cater specifically to the unique needs of today’s business leaders, he adds. “Approximately 62% of respondents indicated they are likely to consider private aviation for business travel needs, so the desire is absolutely there,” says Bengtzen.
It is the industry’s responsibility to come up with new ways to provide a lower-cost option to help these leaders achieve their business’ goals, he added. (SkyShare claims to be achieving this through flexible pricing plans and initiatives that lower the barriers to entry).
Pleas for pricing transparency and clearer communication may not be news to many. Successive CJI conferences – from Miami to London – have heard speakers urge industry action on both counts. But now may be a good time to double-check that those aspirations are truly standard across the industry.
The success of luring a new generation of travel-savvy corporate (and high-net worth individuals) from business and first-class airline seats into private jet cabins could well depend up on it.
Afterall, there’s never a second chance to make a good first impression.
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