OnDemand WTP Pricing Research

The Complete Guide To Buying A Jet Card | Forbes

Fixed Hourly Rates or Dynamic Pricing

While many folks equate jet cards with fixed hourly rates, dynamic pricing, which means trip quotes based on market prices each time you fly, is becoming more prevalent. Several companies such as Air Charter Service, StraightLine Private Air and Vault Jet have introduced hybrid cards that offer fixed rates that are capped, and then the possibility that what you will pay will be less based on the rates are available when you travel.

Initiation Fees and Memberships

Some programs charge initiation fees and annual or monthly membership fees. The more you fly, the more you can amortize those fees over the number of hours you are flying, however, if you want to truly compare pricing, you need to divide those fees by the number of hours you expect to fly. If you pay $15,000 in fees and fly 15 hours, you should tack an extra $1,000 onto the published hourly rate.

Extra Charges

When you scan websites or marketing brochures for hourly rates and try to create a spreadsheet to compare pricing, make sure the rate being used includes the 7.5% Federal Excise Tax (FET) required for U.S. flights. Many don’t. Also, verify if there are any CPI (Consumer Price Index) escalators. They often come with minimums, which means that your rates will increase regardless of what the CPI actually does. Some programs also have fuel surcharges that can add over $1,000 per hour to your rate, while some programs include deicing and others don’t. Since deicing can range anywhere from $1,000 to $10,000 per incidence, depending on where and when you are flying, this can have a big impact on total costs. Some programs include Wifi while others will guarantee it for an additional fee. Also, the type of catering that is included varies from nothing to gourmet meals. XOJET offers catering credits up to $250 for some of its programs. Since private aviation catering can be expensive, if you plan on eating onboard, a program that includes basic meals might save you several thousand dollars during the course of a year. Also, ask about surcharges for high-density airports and any other airport-related fees that might be tacked onto your bill.

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The Complete Guide To Buying A Jet Card.

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