Fuel prices will continue to fluctuate as greener alternatives become more viable and as new technologies bring about better efficiencies. The trend toward increased globalization will also broaden the competitive landscape while increasing the total amount of potential buyers. Here’s a deeper look at what may lie ahead:
1. Fluctuating Cost of Gas
The airline industry and its prices for travelers are perilously tied to the cost of oil, and the international oil market has always had many factors that influence global supply. Jet fuel can typically amount to 40%-55% of a private charter plane company’s overall operating expenses, and airlines can maximize their cost reductions by increasing fuel efficiencies. There have been advances in alternative fuel technologies like Hydrogen as of late, that have recorded early successes in drone aircraft, and it might not be too long before these greener technologies make their way into the mainstream. As fuel processing providers also improve their methods in cleaning and filtering fuel to better rid it of dirt and other impurities, private jets will continue to be able to travel further and at more competitive rates. But airlines will continue to be tied to the unpredictable value of international oil, and prices will swing up and down until a more stable fuel source gains sizeable market share.
2. Technology and Automation
Just as technology is heavily influencing every other industry on the market, it is profoundly changing the private jet industry, but in a different, more subtle way. The appeal of on-demand apps that has sprouted up across the taxi, ground transportation, and ecommerce delivery industries has yet to fully penetrate into private plane charter. It’s simply too high a price-point to accommodate fully-automated ordering, and requires many levels of procedures before a customer can secure a flight. But that hasn’t stopped new companies from trying to deliver more efficient technologies to help bring sellers and buyers together. Private charter plane companies are using a crop of new softwares and apps, like JetSuite and Victor, to reach a new generation of buyers, and they are starting to see results. As these technologies become more prevalent, the standard procedures of private charter airplane business will begin to change.
3. Increased Globalization
Another factor that will play big in the future of private charter companies is the increasing globalization of commerce and travel that is rapidly spreading across the planet. New emerging markets in countries like India, Indonesia, and China, are swiftly expanding, especially in the lower-priced markets, and large commercial airlines along with private charter companies are moving in to court the new customers. Also, as older international sanctions are removed, new flight paths are opening up that were once only home to small, niche travel providers. The new agreement between the U.S.A. and Cuba for example, increased the demand for travel to the country, bringing new providers and major airlines to compete for services that were once the bread-and-butter of a small number of private charter companies.
These factors will all play a part in the evolution of the private charter plane industry, and we at DPV Transportation Worldwide will be there to provide the absolute best, most cutting-edge ground transportation service possible to help assist FBOs for transfers. DPV Transportation Worldwide is an experienced luxury ground transportation provider with affiliates in over 300 cities around the globe. For more information go to www.dpvtransportation.com. For a free quote, click the button below.