From Analytics Magazine
Airline accountants and statisticians perform two extremely important functions. The first is called “Yield Management” and the second is called “Fleet Management”.
Yield management is how airlines put the right customer in the right seat at the right price. Fleet management assigns the right airplane to the right time table at the rights price. This is the important integration for all airlines.
The Easy Way Outbound
Most charter brokers do not bother with yield management or fleet management. They hammer hard on sales; they scope out the wealthiest passengers and find them the jet that delivers (to the broker) a profit they can sell up to the passenger for fast turnaround. They neither expand the market to more people nor help existing clients share a plane among each other.
With proper yield management, a private ticket could “value out’ the same as a premium class commercial fare. The North American premium class market accounts for 6.6% of all airline traffic and 22.7% of all commercial airline revenue (IATA 2010) of 147 Billion dollars. Premium travel is a 30 Billion Dollar Industry. General Aviation Manufacturers Association (GAMMA) shows total billing of general aviation aircraft of $7.3 billion.
How to Double Your Market
Applications of yield management can easily double the number of passengers that would take a seat on a private aircraft. Meanwhile application of fleet management can nearly double the amount of available revenue seats; after all, 40% of private flights are empty.
Today’s private aviation industry has both a fragmented supply and a fragmented demand. Operators do not communicate with each other, they do not share legs, They do not share inventory, they do not allow customers to talk to each other or share a jet between them. Even the taxi industry lets people share a cab. As long as the industry is fragmented, investors, hospitality partners, and most importantly, passengers, will look elsewhere for their investment in time and money.
New Features At Social Flights
Social Flights offers instant quote feature that allows passengers to immediately cost out the price and flight time for a private aircraft between any two airports in the US. Social Flights then helps passengers communicate with each other so that they know the true cost before they are accosted by a broker. Social Flights publishes a wide range of aircraft and airports where they may fly.
Social Flights builds alliances and partnerships with owners, operator, passengers, hospitality, and support services so that everyone can see what everyone else is doing and price accordingly. Social flights posts empty legs, lists events in various cities, and refers service providers that can help out passengers on the ground
Watch us Grow
Keep in mind that each of these features represent initial applications of both yield management and fleet management. This is a huge innovation for private aviation. As the dataset increases and becomes integrated, we will begin performing essential calculations that the airlines use to manage their fleets.
Bring your information and inventory to us and let us combine it into new markets and customers – there is a lot more going on at Social Flights than many people realize.
{ 6 trackbacks }