Plane Conversations

Source: World Travel and Tourism Council (WTTC) 2011

Communities, industries, and economic development agencies are looking for solutions to the travel gaps caused by airline consolidation, regulation, and lack of alternate modes of transportation.  Millions of American citizens are literally stranded in travel access dead zones.

Besides developing revolutionary social technology for buyers and suppliers of alternative air services, Social Flights also provides professional services to organizations, institutions and governments wishing to improve air service to their constituencies. Our services portfolio is designed to serve national and international markets including Asia, Europe and South America as well as local and affinity group communities.

Social Flights Consulting Services

Our service portfolio is aimed at providing 21^st century air service solutions created from innovative data-driven assessment, analysis and strategy. Our professional services team includes resources with credentials in private aviation, airline operations, aircraft manufacturing, statistical analysis, management consulting, strategic development, engineering, planning, yield management, route planning and aircraft acquisition.

Our services include:

• Air Service Determinations
• True Flier Intentions Base Determination & Definition
• Air Services Strategic and Tactical Planning
• Economic Impact & Opportunity Analyses
• Demand Opportunity Analyses
• Private Aviation Services management
• Social Media Marketing, SEO, Community Organization

The genesis of Social Flight Consulting Services came when we all sat in a room together and each looked around at the talent and experience that was looking back at us.

Our people have operated airlines, we have managed airport operations, built substantial FBO operations and facilities.  Our people have held top engineering positions in aircraft manufacturers, we have worked for the Federal Government, we are world travelers, global businesspersons, and economic development professionals.   The people associated with Social Flights are pilots, mechanics, authors, and teachers.  We have world famous social media experts, top travel bloggers, and we come from hospitality industries, event planning, and  entrepreneurial communities.

Let us share ourselves with you.

In upcoming blog posts, we will share the details of each of these services as well as case studies, documented accomplishments  and personnel highlights.

Our hope is to bring the private air services industry closer in collaboration rather than further in competition.  We strongly believe that private operators are far stronger when united than in competition. With airline failures and increase air travel demand, we need to work together with our communities.  We are here to share what we have learned with travelers, communities, tourism / hospitality industries, and economic development agencies.

Social media marketing and search engine optimization (SEO) are no longer just the shiny new soapbox for advertisers, they have become powerful tools for organizing communities.

We all know that social media campaigns have become the PR machine of the modern airline, but they still fail to understand the difference between community awareness and harnessing the power of community engagement.

Who has time to Twitter?  

Many private operators are too focused on the day-to-day business of keeping their fleet in top readiness to start the long haul learning curve of social media marketing and SEO.

As a result, those same few brokers and agents (you know who they are) appear on the top of the search engine listing even in your city search!   While paid search placement may buy some brand awareness for the brokers, only active blogging, worthy cross linking and strategic partnerships produce the powerful engagements that bring you customers who bring you customers who bring you customers, and so on.

Building these relationships can be difficult, time consuming, and expensive. 

Social Flights has trained and experienced account managers that can efficiently carry out the most productive social media presence for  private operators and their respective traveler community, economic development agencies, and hospitality partners.

Social Flights offers:

• Syndication of Social Flights blog articles
• Unique blog contents specific to your operation and community.
• Cross linkages with other operators, tourism boards, hospitality, and corporate business centers
• Strategic Twitter campaigns, Facebook pages, G+, press release support, and cross posting with sister cities
• Package formation with festivals, recreation, conventions, and events; locally and across North America
• Cooperative marketing with sister city operators.

Social Flights draws on our unique experience in ride sharing systems and yield management for private aircraft inventory. Social Flights uses up-to-the-minute social media techniques to organize communities around available private aircraft capacity, public charter opportunities, and empty leg fulfillment.

Social Flights draws from our national databases of event organizers, universities, corporate clusters, and diverse industries allowing us to help you identify, influence, and match supply and demand for private air service priced on a per-seat basis.   This allows travelers to form a true comparison of the “time-value” of private air service versus commercial air service.

Finally, we also provide you with ways to spot opportunities that commercial airlines simply cannot serve at any price.

Please consider adding Social Flights Services to your marketing mix.   Give us a call for a free strategy session and let’s see where we can integrate your air service operation with the entire national travel services industry.

Social Flights will soon release Part 2 of the Operators Whitepaper.  Part 1 identified the intrinsic value of private aviation to a travel market.  Part 2 will identify some of the technology challenges of integrating with the mainstream travel community.

In short, the next step for private aviation is to integrate with the mainstream market while offering seamless transition with other technologies and transportation modes. The following is a summary of Part 2.

The Technology Challenge

Technology is encroaching on every aspect of the travel industry from on-line travel agencies to Next Generation Air Traffic Management.  It is no longer sufficient to have a great looking website, the data that private operators collects and distributes must be compatible with all other services that support the customer long before and long after they cross your threshold.

Compatibility of Pricing

One example is in compatibility of pricing; private airplanes are priced by the flight-hours imposed on a private aircraft. However,  commercial airplanes are priced by the market availability of seats.  There is no way for the customer to compare these two travel options; as such, these markets are segmented by price incompatibility.  The trend is increasing through the unbundling of services like baggage fees and check in fees and convenience fees, hotel, and car rentals contracts, discount coupons, etc.

True Value / Time Value

A vastly neglected aspect of travel is called True Value. For example; the cost of traveling to a hub airport often exceeds the cost of the airline ticket.  The time waiting for TSA screening and connecting flights often exceeds the in-route flight time.  The total transit time often exceeds the time that the traveler needs to be at the location.  Weekend travel is impossible without extra hotel stays and missing one or two days of work.  Time is money.  Lost opportunity is money. Life is short.

Alternate Technologies

Alternate technologies such as mobile connectivity and social media drive different migration patters of people, business and entertainment. Facebook, Linkedin, Twitter, and Google offer alternate ways for people to communicate in lieu of travel, but they also expose more people to more places that are less accessible by commercial aviation.

The Integration

Today, the travel market is segmented in information silos where companies hoard information in the name of competitive advantage.  However, when prices are comparable, the market can apply a time/value formula where alternate technologies enhance the value of travel.  Then, and only then can the entire door-to-door travel experience can be fully integrated in an efficient market where everyone playing the travel game shares information, combines services, and collaborate in the best interest of the customer.

It’s a game, let’s have fun

Technology is encroaching on every aspect of our lives and aviation is no exception.  But, technology is only as strong as the weakest link in the value chain.  In aviation, however, the weakest link also happens to be the smartest and most numerous link.

Technological advances in commercial aviation increase airline margins, but technological advances in public information technology decrease airline margins. 

The airlines use data technologies to pack routes tighter in order to maximize their profitability.  On the other hand, the Online Travel Agent (OTA) use data technologies to drive prices downward. Lower prices minimize airline profitability – this forces more packing of airplanes.

This leaves the traveler holding the red tape with the elimination of routes, erosion of service, crowded flights, and the emergence of added fees, etc.  What happens when the traveler “link” snaps?

When the weakest link breaks, new ones form. From Seth Godin

The magic of our new form of communication is that it’s no longer one-way. If you consume an app, you can write one. If you can read a blog, you can publish one. If you can grab an ebook, you can produce one.

The center has nothing to do with geography any longer. The center is a state of mind.

Aikido Air Service 

Aikido is a martial art which uses the principle of non-resistance, moving with the direction of the opponent’s force and redirecting the attack until it is no longer a threat.  Likewise, markets flow in the direction of information.  Wherever there is an “information conflict”, the opening of new information channels can redirect the market to new innovation instead of continued conflict.

The same NextGen technology also makes it easier for smaller airports to have efficient air traffic control, this will reduce the cost of point-to-point travel. The same OTA technology can effectively list smaller aircraft flying point to point as well as ground transportation and hospitality.

The weakest link also happens to a “state of mind”

The next generation online travel agent may publish all aircraft data and ground transportation in a comparable pricing structure so that information can flow in new directions.    The technology of the weakest link simply turns them into strengths by using the opposing forces against themselves.

Social media technology is becoming the dominant marketing tool for on ground events and services and Social Flights is leading that charge. These technologies will change the calculus that the airlines and operators use to optimize aircraft.  That is how the circle will be reversed.

Every industry from agriculture to retail to energy production experiences unsellable merchandise.  Losses may be due to spoilage or theft or the inability to sell product within a certain expiration date – this is the case for empty legs.

Excess inventory is usually steeply discounted or written off as a loss. Costs that cannot be recovered are passed on to the customer.  If the customer “penalty” is too high, the demand shrinks and unsellable merchandise increases – This forces a contraction in the industry where demand can drive prices up further.

Suppose we know that the existing market for private travel can sustain $1.20 per seat mile price point such that an 8-seat airplane costs $10,000.00 to travel 1000 miles plus an empty return flight. Now suppose that the price per seat mile could be reduced to $.60 by sharing the plane with 16 people (8 in each direction)?  Would cutting the price in half effectively double the  number of people who could afford private travel?

Half empty or half full…or Both

We could certainly draw a line on a graph that would represent how market size would shift if we floated the value between $1.20 and $.60 per seat mile?  We can achieve this through any combination of inbound and outbound passengers between 8 and 16.

Social Flights is building a platform that can pool empty leg inventory by consolidating data provided by hundreds of operators.  The same platform can be used by communities to pool likely passengers attending events, sporting games, corporation travelers,  and conference attendees.  The same platform will be used to match the supply to the demand on a national level.  With a large enough system, it should no longer matter if it is an empty leg or a primary leg – all legs are primary.

The ability to salvage empty seat inventory while lowering costs for all seats will increase the size of the market for private jet services. The aircraft can fly more revenue miles per month in a larger market instead of remaining stationary waiting for a smaller market of passengers.  The airplane can deliver a higher net revenue per mile when both legs are full and priced correctly than when priced at cost-plus.

With Social Flights, operators can increase their volumes by lowering primary prices and adding return leg revenue. Owners will favor a operator that can deliver the highest utilization of their aircraft. Operators can now challenge brokers with a competitive alternate market for private service.  Travelers can now challenge the commercial airlines for service and time value.  At the end of the day, those who share information will have a competitive advantage over those who hoard information.

Next Generation Air Traffic Management represents a major evolution in ground based air traffic control to satellite based air traffic management; it also represents an opportunity for private aviation to deliver far more value to the communities that they serve.

In order to accomplish this, Social Flights is developing a unifying business method that accurately and reliably matches supply and demand for private transportation assets across several thousand airports in the United States. NextGen, combined with the Internet and social media, gives the private aviation industry a set of tools that were unimaginable 20 or 30 years ago when the private aviation market last shifted.

How will private travel evolve?

NextGen will use aviation-specific applications for existing, widely-used technologies such as GPS, Weather Forecasting, data networking, and digital communication. Not surprisingly, these applications will lead to new procedures and airport infrastructure.

Some of these changes may be quite predictable

To get an idea as to how these new technologies will impact aviation, it may be a simple matter to compare how these EXACT same technologies have changed social cooperation in general.  This prediction is valid because we all cooperate for our little piece of the sky.

Society has learned to cooperate in amazing ways as mobile devices, VOIP, GPS, Weather Reports, Traffic Reports, and non-corporate social organization become evermore commonplace.  New business models constantly form around the technology.   The result has been a profound shift in power and influence to those (for better or for worse) who can access and curate relevant information AND then share that information with people in their networks (and beyond).

Social Flights is taking the lead and calling on all private operators to join with us to build a common platform for private aircraft inventory and ground operations across the United States:   

• Where are your jets stationed?
• What inventory do you have available?
• Where are your empty legs going?
• Are you willing to share facilities or “code-share” with other operators?
• Are you willing to cooperate with the major airlines?
• If entrepreneurs in your community had access to the whole system, would this help you?
• If corporations and event planners had access to the whole system, would this help you?
• Are local hospitality and support services sharing information with you?

The New Technology Advantage

Since the late 1800’s America has replaced every single telephone pole with a new one every 50 years or so.  Today, every less developed country can simply build relatively few cellular towers and avoid that mess. For this reason, we can assume that airlines no longer have the advantage of vast hub infrastructure when together, we can just as easily sort people and planes with access to the right data shared across the right network.

Any number of b-school power plays will cite the competitive advantage necessary in hard economic times.  But how many people talk about the cooperative advantage?

Information is power

When the buyer has the same information as the seller, markets are more efficient.  The Internet has made information free and easy to transport.  So, understandably, any business that hopes to survive by restricting information will ultimately find competition from a start-up that does not.

The “equal information” playing field

This scenario plays out over and over as industries as diverse as newspapers to higher education to government to commercial aviation are forced into profound transformation by the availability of equal information.  True to conventional wisdom, good information creates more good information and bad information creates more bad information. For Social Flights, our best customer is the educated customer because they’ll educate each other.

Coming to an Airfield near you…

The true cost of flying private jets is one of the best-kept secrets in aviation.  Corporate Jets are a source of mystery, controversy, and symbolism. There are many reasons for suppressing true costs such as avoiding public disclosure of VIP expenditures,  or to protect profit margins enjoyed by charter brokers.

On the other hand, there are many important and legitimate reasons why some people should fly private instead of commercial. Social Flights believes that there are many situations where the true value of private flight greatly exceeds the cost of private flight for a large population of travelers. The problem is to find possibly millions of passengers who do not know that Social Flights applies to them.

Information Transparency

For this reason, it is essential that a baseline cost be established in a market so that everyone can use the same data to make educated decisions about how to travel efficiently.  It is essential that the market can eliminate price distortions, suppress arbitrage opportunities, and equalize asymmetric information.  The focus of the industry should be on expanding the market through transparency, not short term gain by hoarding the limited existing market.

Cooperation is the new market advantage

Social Flights has developed an instant flight quote feature that calculates a nominal estimate to fly a private aircraft from any airport in the US to any other airport in the US.  This establishes a baseline on the actual cost to fly.  From this baseline, jet operators can bid and win missions that are naturally most profitable to them. Or, operators can cooperate with each other by sharing legs in an abundant market rather than compete with each other for a constrained market.

Event planners, corporate executives, travel agents, economic development agencies, and travelers of every type now have the information that allows them to access private aviation inventory for businesses and the magnificent value that it brings to communities.  That is the new market advantage.

Economic Development is on everyone’s minds as people realize that their local economy can have a dramatic impact on the their position in the next largest markets.   Now, data is converging so rapidly with the travel experience that opportunities for unique locations to provide unique experiences are truly profound.

From Wikipedia:

Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives. Economic development differs from economic growth.

Look at the photo above and the Wikipedia entry below it.  It is literally possible to visualize ALL economic indicators in a single flash of an IPhone.  Human capital cannot readily organize without education, transportation, clean environment, social inclusion, safety, and health services.  A community desirable to its citizens is a community desirable to its markets.

This goes without saying for cities that have grown to a size where major airports have become almost a scourge – many of these cities themselves began as a cross roads for land, water, or train transportation in their respective histories.  Efficient air transportation without the “crossroads”  may hold a distinct economic advantage for communities where the access to economic information is equalized by the Internet.  In other words, all things being equal, travelers will prefer a location that is relevant, pristine, uncrowded, and welcoming.

Social Flights is pioneering the concept of the Community Airline, specifically termed “Public Charter”.  The idea is simple; there is very little that a major airline can do for a small community that a small community cannot do for itself, better, faster, cheaper, and without sacrificing safety – all within the existing regulatory environment.  Social Flights can help communities to acquire, maintain, market, and operate modern aircraft which can be deployed on a schedule that suits the community priorities.

Look at the picture again – this is the mural upon which communities will define themselves in the digital age. Social Flights provides all the economic development benefits of an airline without the burdens of a hub airport

“Systems Thinking” is important in aviation.  No single event acts alone from complex air traffic control to complex mechanical aircraft and complex weather systems. Economics is a complex system and markets are complex systems, human behavior is displayed in complex social systems.  This is the way that Social Flights approaches business – we are a ride sharing “system” for private jets

It is not surprising then that Google identifies 5 stages of the consumer travel system.

The following is from Trent via Statistics and Research Studies for Travel, Tourism & Lodging:

More than 87% of travelers expect to take the same or more number of personal or business trips in 2011 versus years past. This outlook is positive, and with the rise of mobile, social and video behaviors, we are now seeing seeing travelers move through five key stages of travel. Here are some insights within each stage:

Dreaming: 68% of business travelers watch travel-related online videos. Among them, 68% are thinking about a trip.

Planning: The average traveler visits ~22 travel related sites during 9.5 research sessions prior to booking.  85% of leisure travelers consider the internet their main source of travel planning.

Booking: 37% of leisure travelers report that the internet prompted them to book, up from 28% two years ago.  53% of travelers plan to increase comparison shopping this year.

Experiencing: 70% of business travelers check into their flights/hotel with their mobile device. Almost 1 in 4 hotel queries come from a mobile phone.  Over 50% of travelers use mobile phone or device for travel-related information.

Sharing: About 1 in 3 business travelers have posted reviews online of places they’ve been.

At Social Flights we have argued that there is a great need for travel related information to be made available for private aircraft and charter jet inventory.  As such, we are developing tools such as our “Instant Quote” feature, and inventory listings to supplement travel information on line. Here’s why:

62% of personal travelers use search engines as the number one source for travel information. 

51% of business travelers use mobile devices to get travel information, more than double the rate of two years ago. 

46% of personal travelers are watching travel-related videos, versus 36% two years ago. 

The quantity and the quality of information that a travel company can provide is directly proportional to the relevance in the 5 stages of consumer travel activity.  The effort is paying off.

Social Flights will soon announce several deals with municipalities that are tired of being stranded by airlines

Social Flights will annouce a deal with a major vacation spot that is tired of getting gouged by brokers

Social Flights Instant Quote feature continues to disrupt the “secret handshake” of the charter jet industry

Social Flights will soon announce major deals at world class events where we shuttle people to the doorstep of the action

Social Flights is opening travel circles across the US for people to share their experiences and plan their adventures

At Social Flights, we are aviators, we are system thinkers, we are fully aware and intentional about the system that we are building.  We thank all those who are helping, from our pilots to our partners to our investors and to our followers.  Together we are developing a Social Flying System

We recently stumbled upon a great group of people dedicated to the promotion of the fastest growing specialty in social media.   The position of  Community Manager, in our opinion, is growing to a size and scope that warrants its own professional classification.

via Community Managers: Where do you live? | My Community Manager.

What is MyCMGR.com?

Much like chemistry grew from alchemy (the task of trying to turn lead into gold) Community management is more than PR.  Community Management is the science of understanding how to create many important products from all the social elements.  At Social Flights, we are developing a new class of business methods that will rely heavily on the skills and tool set of the Community Manager. It is our suspicion that we are not alone in our requirements for this emerging profession.

Community Organization:

Socia Flights is more than a charter airline, we are a ride sharing system for private jets.  In order for our transactions to be most equitable to the traveler, we need the community to self-organize around a collection of airline inventory without using a hub airport.  This is not an easy problem to solve and herein lies the perfect game for the modern community manager.

Our vision for the future…

Social Flights envisions a Community Organizer to be able to look at data related to where people want to go and match it to available aircraft that can take them there.  Next, the organizer needs to find people who want to return on the empty airplane after the first passengers are dropped off.  Each time, the community organizer creates new data and feeds it back into the system.

As the system of data from all CO’s gets larger, it will become easier for the organizer to make connections in their specialty.   In the big picture; every shared asset  in a community from airplanes, cars, hotels, schools, and even government agencies can be operated by experienced community organizers.  Now imagine that all this can happen outside the construct of the familiar “corporation”

MyCMGR.com works with: