This has been a trying time for travel managers coping with rolling flight cancellations, which promises to reach tens of thousands more before the summer is out and the busy business travel season begins.
While technology helps both passengers and travel managers automate rebooking, nevertheless, with full flights and reduced capacity, re-accommodation can often take days. Couple that with the fact that many places have been dropped from the air transportation map, and travel managers are forced to get creative. This is especially important for businesses with far-flung networks of activity, facilities and customers as they try to achieve the out-and-back-in-one-day trip they cannot get on airlines.
For these clients, travel managers can integrate private aviation as Plan A, especially for transporting several employees on the same mission. “If a business needs to fly multiple employees to eight or 10 plants in remote cities, then business aviation should be considered,” explains Private Jet Services senior vice president of sales Andrew VanderPloeg. “That allows them to fly together and operate directly point-to-point, saving time and increasing productivity. The time savings is 25 times that of airlines which, given the complexities of connecting over several hubs, may take over two weeks to get to all these locations and perform site visits. And one key component is not just the savings component, but how business aviation helps the organization to accelerate or grow.”
Reliance solely on commercial airlines and waiting for the next flight out is also a very risky proposition. “You can wait for the next flight, but having a firm alternative solution will ensure that your business traveler gets to the destination,” says Air Partner USA senior vice president group charter Simon Moore. “But if you have a fixed time to meet with someone who is also very busy, that missed flight may mean missing the opportunity for days or even weeks. It’s no fun being the last in the ticket desk line when you have an important meeting or sales presentation to deliver.”
While travel managers will never abandon airlines, travel chaos dictates they develop backup plans depending on the mission, the number of travelers and their duty of care. Given business aviation demand, the earlier travel managers plan, the more likely they are to find an immediate solution for their travelers.
Travel managers need only remember the thousands of flights cancelled in the US and Europe over the Memorial Day/Bank Holiday weekends. Delays and cancellations, packed planes, dropped network points, and the pandemic continue to drive more fliers to find their own way around chaos, meaning travel managers must now follow suit by incorporating business aviation into risk management.
Chapman Freeborn vice president of passenger sales, Americas, Kari Bigot recalls a foundational principle of what it’s all about: Traveler welfare – something completely lost to airline travel. “When integrating business aviation into risk management, employee welfare should always come first,” Bigot says.
“During peak travel periods, frequent business travelers can avoid the crowds at larger airports by flying from smaller or regional airports dedicated to general aviation, which makes for a hassle-free experience. With private charter, travel managers have the added benefits of keeping their groups together and guiding them through private terminals with minimal touch points. Private charter also ensures that should any unforeseen travel circumstances arrive, they have an expert account manager to guide them through the challenges,” she adds. “Many companies are embracing business aviation, as it can potentially be more cost-effective than they initially thought.”
Shrinking Networks
The loss of air service to communities is one of several factors increasing demand for business aviation, Bigot notes, but adds that historically, a major benefit of private aviation is in the small, regional airports that are often closer to the origin and destination than those served by commercial airlines.
“These airports allow companies the flexibility to arrange flights according to their own custom flight plan, for both ad hoc and regularly scheduled journeys,” she explains. “For either option, a private jet flight can serve as a corporate shuttle, allowing for nonstop flights from point-to-point. This greatly improves the overall travel experience for passengers, eliminating the need for connecting flights and reducing the chance of unexpected delays or cancellations – a valuable solution to help maintain both safety and efficiency.”
A survey of travelers in eight countries found 70 percent of respondents want a hassle-free airport experience, eliminating the stop-and-start airport check-in and security lines. Today, the only way to get the controlled, flexible experience they seek is private aviation where car door to airplane is usually less than 15 minutes and avoids the crowded airport security experience, air rage and the unmasked.
Data from travel management companies shows premium-class cabins are refilling, where business has rebounded to 61 percent to 81 percent of pre-pandemic levels in all economic sectors globally except China, according to Bloomberg. All that dictates more flights, but airlines don’t have enough pilots to staff them.
That is why private aviation reached record levels in 2021 to 3.3 million flights globally, up seven percent from the previous historic high in 2019, according to WingX. Indeed, Alton Aviation Consultancy reported airline share of premium travel dropped from 90 percent pre-COVID to 80 percent in 2021.
But this demand for business aviation goes beyond the return of business travel because private aviation flights were already at record levels in 2019. That increase reflects a growing corporate traveler frustration, with the result that at many charter companies, 70 percent of the requests are from those who have never flown privately before. And given options to reduce private aviation costs by sharing aircraft, passengers may stay with the option post pandemic.
“At its core, business aviation is not about the luxury or opulence, it is about the utility – the productivity increase and time savings,” VanderPloeg says. “As tertiary and other markets saw – and continue to see – reductions in commercial routes or service, organizations have turned to private aviation to help them operate point-to-point to save time or be more productive. The fewer commercial services, the more viable business aviation becomes as a solution.”
Advice for Travel Managers
Of paramount importance is developing a strong relationship with your private aviation supplier. “This ensures you get honest answers unencumbered by a need to just get the booking,” Moore says. “Strong relationships make suppliers want and need to get the job done to the travel manager’s satisfaction.”
More importantly, this type of vetting cannot be done at the last minute, ensuring that the business traveler is not falling prey to illegal operations and dodgy providers. “Travel managers need to know the supplier they are working with has an internal safety and compliance culture,” advises Moore.
Further, providers should be well-versed with additional experience in the markets being considered and show sound knowledge of operational issues that can affect the destinations, Moore says. “We have seen travel managers choose destinations without considering operational restrictions and airport coordination issues. These technicalities should be discussed with your charter supplier in advance as they can directly affect the ability to deliver the product to the end user passengers and clients.”
For managers, understanding the travel landscape is the first step in integrating business aviation into the travel program, and where/when business aviation may better align to meet the business objectives, according to Bigot. “For example, a few things to consider would be how often your travelers may access private aviation? How flexible are your travelers? Do they fly on short notice with little flexibility in their departure date and exact destination? Is there a budget or business objective to consider?”
Bigot advises having an experienced account manager who understands your company objectives, your travelers’ expectations and needs, and manages your entire business aviation needs from start to finish.
Moore adds that a strong relationship allows clients and providers to engage in more subjective discussions on risk management. “Travel management companies need to create a culture of transparency so their supplier can give honest feedback without fear of losing the business to another charter operator who is simply interested in getting business at any cost and may offer cheaper, less operationally-desirable solutions to gain your business,” he warns.
Working on Plan B
Private aviation demand is so high that operators and brokers are being overwhelmed, driving an urgency in creating a relationship that will lead to prioritizing requests on behalf of the travel management client. Business aviation providers say setting up a single relationship prior to the need is key, especially if travel managers are seeking advice on how to develop a Plan B for their travelers.
“An advisor can help travel managers, procurement, and other stakeholders triangulate and develop a suitable plan and determine where business aviation makes the most sense and provides the greatest benefit,” says VanderPloeg. “First, they must identify what employees have very valuable time and understand the required travel for those individuals and what scenario or situation may trigger the use of business aviation for employees outside that core group.”
Moore agrees. “There are a variety of triggers that can make travel managers turn to business aviation. The end destination, and more specifically the airport, can warrant a turn to business aviation. However, the most critical factor to consider is timing. With security and other processes associated with commercial flights, business aviation can provide a much faster and more efficient travel plan. Peak travel season and holidays are frequently another big factor of delays for commercial flights, as we saw just recently with Memorial Day weekend. Commercial airlines have been warning consumers of decreases in flights this summer.”
With ever-changing pricing and fluctuating aircraft availability, Bigot also sees a strong relationship as being key. “We recommend travel managers take the time to know the charter broker company, their history/experience, their financial stability, legal and compliance support for managing the operators, as well as the clientele they look after,” she says. “Chapman Freeborn acts as an extension of the travel manager’s team to seamlessly manage all activities related to booking their business aviation needs. Working with an experienced, global charter company means you have options of more aircraft to choose from, and that’s where the benefits of having an experienced, global charter broker become most apparent.”
Putting all your private aviation eggs in one basket can also be beneficial, establishing a single relationship to reduce the duplicative requests. “It sounds counterintuitive, but we believe one relationship is better,” VanderPloeg advises. “At a higher industry level this also helps to eliminate some of the friction the entire industry is experiencing right now. Charter desks at operators are overwhelmed with requests due to demand, but also because some clients will have five or six agents working the exact same trip.”
Beyond operational streamlining, working within an established relationship is an iterative experience, VanderPloeg continues. “It improves as the two organizations interact and further understand how they can best integrate their services and work together to deliver the best solution.”
That relationship also ensures the quality of the operator which cannot be guaranteed in last-minute planning. “The private aviation industry is heavily regulated around the world,” Bigot explains.
“Maintenance is, therefore, an area that is heavily scrutinized which is a huge consideration for travel planners. Unfortunately, we live in a world where there are companies that allow aircraft to fly that shouldn’t,” she says.
“As demand for private jets increases, this trend is increasing, with the FAA trying to shut down illegal charters. However, if you start off with a reputable experienced broker, you can be assured the private aircraft will be maintained to the highest standards.”
Bigot also recommends working with legal and compliance teams to ensure the aircraft and operator have all required documentation and insurance.
As airline chaos grows and more travelers turn to private aviation, travel managers require growing flexibility in meeting corporate travel needs. That dictates starting the conversation on non-airline travel. They might be surprised to find corporations are more receptive than they think.
