Plane Conversations

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.

A study released by Adify analyzed the average CPMs paid by various vertical categories of advertisers. The travel industry, generates 8.5 Billion image-based ad impressions per year in a highly competitive category.  Travel is a very reliable source of revenue for media networks and major publishers.  It is no surprise then that the average amount of money that an advertiser would pay for 1000 impressions (CPM) in the travel sector is $19.89 .

Yes, an advertiser would pay 20 dollars to put their name in front of 1000 travelers.  That is real money.  Suppose that the price of  filling an empty seat on an empty leg (in aerodynamic drag) is 100 dollars for a given distance. If that person is a travel blogger they would need to have a minimum readership of 5000 in order to equal the value of the seat in marketing dollars.

Unlike the pre-Internet world, today there are literally thousands of people walking around with 100,000 Twitter followers, 50,000 blog hits readership, YouTube views in the millions, layers upon layers of Linkedin connections and Facebook friends; never have so many people had such levels of influence.  This is unprecedented in marketing history. A jet operator can easily leverage this value straight on to their balance sheet.  The Social Flights Platform will be able to bring the the operator the types of relationships that translate to the bottom line and increase net sales.

The Private Jet Amplifier

Aviation is a very important industry for many important reasons.  Powered flight has captured the imaginations of generations of people because airplanes appeal on a very deep level in terms of pride, technology, freedom, and adventure.  People pay attention to news articles involving aviation. Aviation and aerospace are the most desirable industry for economic development communities. In fact, many things that are not news, become news only because they happened on or near airplanes.

This is a built in advantage that any brand manager would love to have because aviation amplifies a market message. So while empty seats on empty legs may be hard to sell outright, they may still contain a huge amount of value for the private aviation industry.

Private jet travel has the ability to amplify the image of the brand.  As Rolex and Breitling have known for years: associate the brand with high performance and the image of quality is reinforced well beyond actual value.  A hotel whose guests arrive by private jet is amplified as a preferred service provider.  Products used by people who fly private are considered to have the highest performance. An event that attracts private jet passengers is one that should not be missed. Etc.

When you combine the two effects of high CPM and Jet Amplifier; there are many combinations and associations of passengers and sponsors who would  make the effort very worthwhile for the operator to fill empty legs with influential people.

If the operator offers empty legs to a hospital, their patients and their families, they will get brand recognition among doctors and executive administrators.  If the operator offers empty legs to a local charity, they will earn brand recognition among politicians and community leaders.  If the operator offers empty seats to industry conferences, they will gain brand recognition among corporate executives and VIP speakers.

Social Flights can translate this value and deliver it to your bottom line. It’s only a matter of being in the right place at the right time – that’s a game you can win playing by your rules.

Read more: http://www.businessinsider.com/chart-of-the-day-cpm-verticals-2009-8#ixzz1mNamoUJb