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Overcoming the Obstacles in Private Aviation with Digital Transformation
Private jet travel is mainly used by high-net-worth individuals and companies for business and leisure travel. No doubt the recent pandemic has impacted the overall travel industry. However, the demand for safe, seamless, and effortless travel experience is going high post-pandemic. With the increase in high-net-worth individuals of Gen Z, private aviation is gradually transitioning from a luxury to a necessity. Travelers seek to avoid crowded commercial flights, and the demand for private jets is expected to rise.
To keep up with the rising demand, private aviation companies must embrace digital transformation and make flight planning and operations more effective.
In this infographic, you’ll look at the growth outlook of the private aviation sector, challenges to jet owners and brokers or companies, and respective solutions that are likely to make flying a more attractive mode of travel in the coming time.
The Digital Shift in Private Aviation: Navigating Trends and Challenges on the Transformation Journey
Considering recent trends, the private aviation industry will reach 37 billion U.S. dollars by 2028. These numbers indicate toward a great opportunity for the private flyers to invest and harness the benefits – if they address the challenges appropriately.
Digital transformation is not just a trend in today’s world but a necessity to survive and grow. All the new flyers jumping in the market and existing ones need to equip themselves digitally so well that they can cope with the challenges.
Top 5 Challenges Solved for the Private Aviation Sector
Explore the role of digital transformation in solving the key challenges of the private aviation sector.
1. Meeting Supply and Demand Needs
The private aviation industry faces several supply and demand challenges. On the supply side, there is a limited number of private jets available for charter, which can make it challenging to meet all customers' demands. The empty leg issue mentioned above also adds to the supply challenges of the private aviation sector.
On the demand side, the private jet industry can fluctuate seasonally, leading to overcapacity during low-demand periods and a shortage of aircraft during peak periods. Additionally, there is growing competition from new entrants in the private aviation market, such as private jet sharing and fractional ownership programs, making it more challenging for traditional private aviation companies to attract and retain customers.
To overcome these challenges, companies should focus on offering innovative yet value-added services to their customers and exploring new business models, such as aircraft leasing and maintenance services, to increase their revenue streams. Also, they should consider online platforms to intelligently match the supply and demand sides of private aviation in order to avoid missed opportunities for fulfilling demand.
2. Addressing Empty Leg or Deadhead Flight for Boosting Revenues
An empty leg is a burning issue in the Private Aviation industry, a wasted opportunity for the operators, as well as a big sustainability concern. In fact, 30-50% of private flights operate on the empty leg. An empty leg or a deadhead flight occurs in private aviation when an aircraft is repositioning itself to pick up passengers at another location or when it is returning to its base after dropping off passengers. Empty legs can create an issue for private aviation companies as they represent a cost without generating any revenue. To mitigate this issue, private aviation companies can harness the power of digital tools and data that may offer these empty-leg flights at a discounted rate to attract last-minute bookings, which leads to an enormous leap in efficiency and sustainability.
3. Flight Request Filtration to Avoid Unnecessary Cost/Fraud
With increasing demand, operators are getting overwhelmed with too many flight requests. Attending every one of them might be time-consuming, and there are chances of loss of opportunity since interested candidates can opt for other services since the waiting time is high. Flight request filtration is a process used in the private aviation industry to screen and select flight requests from potential customers. This process aims to ensure that only viable and legitimate flight requests are processed while reducing the number of false or irrelevant requests.
This process involves several steps, including initial screening, verification of information, customer screening, quotation, flight route evaluation, etc. In the private aviation industry, flight request filtration is crucial for ensuring efficient and effective use of resources, such as aircraft and flight crews, and for customer satisfaction.
By filtering flight requests, private aviation companies can ensure that they provide safe and efficient services to their customers while reducing the risk of fraud and unnecessary costs.
4. Customer Experience for Sustainability
Customer experience in the private aviation industry refers to customers' overall interaction and satisfaction with the services offered by private jet companies. In this industry, a positive customer experience is crucial for attracting and retaining customers and can significantly impact the business's success.
Private aviation and almost every industry is aggressively focussing on improving customer experience. The successful elements for future customer experience are personalization, convenience, flexible flight options, luxury and comfort, safety and reliability, streamlined booking and check-in processes, and dedicated ground support. By focusing on these key elements, private aviation companies can differentiate themselves from the competition and create a loyal customer base.
Modern CRM solutions come up with newer technologies, from which more insights can be obtained about customers, which can, in turn, help in providing improved and more personalized experiences.
5. Streamlining Booking Process for Private Jet
Streamlining the booking process in the private aviation industry is important to improve customer experience, increase operational efficiency, and reduce costs.
Flight bookings in private aviation are broker-centric. In most cases, brokers depend upon the traditional calling method to communicate with clients and operators. The existing software in the market is also static and doesn’t provide dynamic real-time data. Overall, the flight request and booking process are eventually slow and time-consuming.
Exploring different modes of booking, like mobile and web-based booking, can help you streamline the process for better customer experiences.
Digital transformation is crucial in private aviation to tackle challenges related to booking, demand and supply planning, and flight routing. By investing in the right technology, aviation businesses can gain a competitive edge and enhance customer experiences. Icreon is a team of experts that has partnered with key players in the private aviation industry to provide technology solutions that boost profits and improve customer experiences. Explore Icreon’s Digital Transformation Services.