Industry Analysis

One of the very few bright spots for the travel industry during the gloom of the COVID-19 pandemic has been the significant growth in private aircraft charters.

Once thought of as the privilege of the rich and famous or high-powered business travellers, private jet charters are now increasing in popularity among a more varied passenger demographic – from millennials to middle class households – who are seeking quicker, more secure getaways. US-based company XO, which sells seats on private jets as well as providing private jet charters, claims its membership has grown by a staggering 298% year-on-year in its Q1 2021 results – with millennials making up 25% of its first-time charter purchasers.

This trend looks set to continue in the post-COVID age as hygiene, privacy and convenience move up the list of priorities for travellers. Research from private jet membership company Airshare revealed passengers will encounter 700 points of contact when checking in and boarding a commercial flight. On a private jet, customers will only encounter 20 touchpoints according to Airshare, something it believes is a leading factor behind the rapid growth in its own membership numbers.

While this is clearly a massive USP for the private charter sector, the wider travel industry is working hard to close this gap. These changes are evolving at pace, with the introduction of new technologies such as biometric check-ins, order at table services at airport restaurants and digital bag tags leading to a more contactless passenger journey. The private charter industry needs to up its game and can’t rely on this advantage alone.

There is no doubt that the gap is being closed the other way, and economies of scale are enabling private charter companies to offer prices closer to their commercial airline competitors. From jet sharing and crowd-sourced flights to fractional jet ownership, a range of imaginative programmes are offering greater flexibility and accessibility to a broader range of customers and, in turn, opening up new business opportunities. They also help to ensure private jets are running at full passenger capacity instead of operating with empty seats, maximising revenues in the process.

This is a fascinating market on the brink of possibility for dramatic change and commercial opportunity. It’s a market that’s definitely one to watch.