While there’s a wide range of ways to access Business Aviation, on-demand charter provides a commitment-free platform, appealing to the millennial’s consumer behavior. Felipe Reisch explores…
The lack of brand loyalty from the millennials will pose significant challenges for the entire Business Aviation sector over the coming years. But what has caused the change in this newest generation to impact the industry?
To start with, the use of technology has shifted how business is done today compared to 10 years ago. In fact, it’s so dynamic that a business model itself is irrelevant if the right use of technology is not paired with a product or service.
Moreover, the perception of what’s important in life is rapidly shifting, led by the millennial generation, a group of people that today are in their late 20s and early 30s.
While some have an important financial capacity thanks to successful entrepreneurship, others are choosing to live longer with their parents and spend more time in education. Nevertheless, all are linked to the shared economy and they are seeking new experiences.
So, what does that have to do with Business Aviation?
Well, private charter made a global technological shift over the past five to 10 years as companies providing Part 135 charter services realized that a change was needed.
Clients weren’t picking up the phone to charter a jet anymore. Instead they were seeking providers who could offer online booking systems, instant quotes and various payment methods (including cryptocurrencies).
All these actions are supported by the millennials’ consumer preferences.
The 'Early Adopters' Movement
Those willing to test a service as soon it becomes available and usually building trends if that service is aligned with expectations are called ‘early adopters’, which is exactly what the millennials are proving to be.
In this competitive and immediate shared economy, it’s important to get it right for the consumer. Otherwise, they’ll move on to the next company offering that offers the “same service” and is inevitably just one click away.
And while there are a wide range of ways to enjoy the benefits of a business jet: from owning an aircraft outright, to jet cards (block charter), to fractional ownership and on-demand charter, the latter seems to be appealing to the millennials above the other executive travel models.
But this also puts air charter providers on the spot to do best job on every flight.
Millennials and On-Demand Charter
Private charter companies like Monarch Air Group understand that their business model favors the millennials’ commercial behavior, although this imposes a great challenge from a brand loyalty standpoint, due to the overall lack of commitment. The customer has no obligation to return to the service provider, as they would with a longer-term pre-paid jet card.
In on-demand charter, the passenger can select any type of aircraft, jet or turboprop, to any destination. Depending on the length of the stay, clients can then arrange for the airplane to wait for them or book a new aircraft.
The customer also selects any number of passengers and there are typically no blocked dates. In fact, most times an aircraft can be made available within hours of a charter request being made.
Another advantage is the price; there are no membership fees, no need to prepay for hours or spend anything more than the flight itself. Again, it’s very flexible.
“The more the options for the customer the better service you will provide,” David Gitman, president, Monarch Air Group explains. “In today’s shared economy, adapting to the trends is key to fulfilling the expectations.
“Private aviation is about flexibility and not long-term rigidness...If you want to engage with this new, well-informed and educated group of customers, you need to adapt to their needs and not the other way around. Brand loyalty will come as a result,” he concludes.
More information from www.monarchairgroup.com