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Comparing different pricing models and the history of chartered flights

by Amber

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People have been chartering flights on private planes for years now; flying private isn’t a new concept, but a no-commission pricing model is starting to become a more innovative way to charter private flights.

As we dive into how these two pricing models differ, we will explore the history of chartering flights, which started in the 1940s. We will also explore its growth through the decades, and how flying private quickly gained popularity. 

The beginning of private flights

Chartering private flights began gaining popularity shortly after World War II when a surplus of aircraft went unused, which left aircraft owners facing significant costs in maintenance and storage. They came up with an idea to rent their planes out to business executives who could take advantage of flying private without investing in their own private aircraft. This was an appealing option that gave these executives the convenience and flexibility of avoiding flying commercial without the cost of traditional ownership.

In the 1960s, the popularity of chartering flights reached new heights. Corporate jets found their way to the industry, and aircraft manufacturers began to produce several new models. Chartering flights may have come from military roots, but these new private jets left those days behind and centered on both comfort and luxury.

Although popular amongst business executives and celebrities, private jets and charters would take several decades to reach a wider audience. As online advertising became more popular, those seeking to fly private soon could find charter companies online.

Charter brokers eventually emerged and became the standard for booking flights, along with business models that included fractional ownership, on-demand jet charters, and reward membership programs. The popularity of chartering flights has increased exponentially as ease of booking through smartphones and new, more transparent pricing models have shifted into place.

Wholesale charter flight pricing

Traditional pricing model

Historically, the price modeling for charter flights is one set price that contains many fees rolled into it. Most of the fees are something that a client never sees. When booking a private flight, the fee also usually includes a commission that is, for the most part, undisclosed to the buyer. The commission paid can be a small percentage or up to half that goes directly to the broker who has arranged the flight. Separate from the commission, the fee makeup for a flight can vary slightly, but typically will include: 

  • Flight time: Hourly rate x flight hours
  • Fuel surcharge: Variable based on the type of plane, flight distance, and cost of fuel
  • Crew fees: Hotel fees, meals, per diem payments
  • Landing, handling, and incidental expenses: Variable based on the type of plane, airport, etc.
  • Taxes (domestic and/or international)

Billable flight time can vary depending on aircraft type and it is the most significant expense you will pay when booking a flight. This traditional pricing model for flying private means you may never know the actual price of your flight and how much you’re paying in commission. When you sign up for our Jet Membership program, however, you have the exclusive opportunity to charter flights at wholesale prices.

Wholesale no-commission price modeling

For years, the charter flight industry followed that traditional model. Recently, it became apparent that the industry was ready for a new pricing model. This model of pricing charter flights is newer to the industry but has become more popular every day. The main reason is simple: transparency. Customers like to know what they are paying for, and wholesale no-commission pricing changes that for the better. 

Wholesale pricing most often works as a subscription service in exchange for completely transparent and lower pricing. In fact, with this type of pricing model, costs brought to clients are typically 20-70 percent less than the traditional model. 

With a Jet Membership, clients pay an annual fee upfront that enables them to consistently get the best prices with no hidden fees. This pricing model eliminates brokers’ commissions, which can be anywhere from 15-50 percent. With this type of pricing model, frequent charter flight bookings become a more feasible possibility.

Jet Membership wholesale pricing

Traditional is the past; wholesale is the future

After comparing traditional pricing in the charter industry to the new wave and popularity of wholesale pricing, it is easy to see why one far outweighs the other in benefits. The ability to fly private more often, pay a completely transparent fee, and cut out the commission costs with every booking are all excellent reasons to reconsider how you planned to or have been traveling when you charter a private flight. 

The private charter industry has been around for decades, and as it only continues to get better,  the way clients book and pay for their flights also continues to improve. With the advent of mobile apps and on-demand private flights, wholesale prices and exclusive memberships most certainly seem like the industry’s future.

Contact us today for more information on our exclusive Jet Membership program!