Private Aviation Fractional Jets,
In the current economy, it’s easy to miss the good stuff!
There’s been plenty of bad news in the private aviation sector in recent months. New business jet deliveries are down and OEMs have scaled back production as much as 30%. The pre-owned aircraft market is swelling with inventory and seeing tight credit and few buyers. Private travel is way, way down - - 25% to 45% over last year depending on where you look.
Then of course there’s all the negative publicity about the excesses of private air travel. The public continues to clamor for corporate blood. (Darn those GM guys for choosing the wrong mode of travel to Capitol Hill. Maybe they should have driven their cars to D.C.)
OK, OK. The business climate is difficult these days. The economy has taken its toll on business aviation in a very big way. We get it. But all the gloom and doom really misses the point. So let’s flip it!
Sure, this may not be the best time to take on the capital expense of buying a whole business jet. They don’t come cheap. Likewise it might be a smart move for a company to unload a plane that’s been sucking up dollars even while sitting in the hangar. But those situations address concerns that come with whole aircraft ownership. There are other options that make very good economic sense. And they certainly don’t challenge or lessen the business advantages of private aviation – things like improved productivity, incredible time savings and a level of safety that can’t be beat.
When you look at the big picture, it seems that the recession actually bodes well for fractional ownership programs, jet card programs, even on-demand charter. As the economy improves, people will start utilizing business aviation again. Demand will gradually increase. Now, given the pain of the past two years, companies will certainly be watching dollars very closely. They will question the wisdom of owning a jet vs. participating in a program of some sort. .
This is a good thing for the fractional providers, card companies and charter operators. Why pay millions of dollars for an entire jet when you can buy a fractional share for far less? Why take on responsibilities and expense of managing an aircraft when your fractional provider will manage and maintain the aircraft for you? Why invest in an aircraft at all if a jet card membership or charter service satisfies your travel requirements perfectly well. The point is that companies and individuals have more private travel options than ever. As they evaluate their choices, the opportunities for providers are immense.
We’re already seeing innovative new programs being developed that suggest an exciting evolution in business aviation. Our client, Flight Options, is introducing a fractional ownership program built around the new Embraer Phenom 300. The Phenom 300 is one incredible aircraft, featuring the performance benefits of a super-light jet while flying at a cost-per-mile similar to a twin-engine turboprop. In fact, the Phenom outperforms every other jet in its category in range, fuel efficiency, comfort and lower maintenance costs. As a result, the Flight Options Phenom program offers the lowest hourly rate in its class – almost 30% lower than comparable competitive aircraft. There’s a lot to love here for a discerning CEO or CFO.
Other fractional ownership companies are reshaping their programs in different ways. Lease programs allow buyers to avoid a capital purchase by leasing a fractional share. The buyer may also exit the lease at any time without penalty.
Because aircraft values have declined with the economy, some providers also offer residual-value guarantees. In another twist, a charter operator has launched a shared-ride charter jet membership service. Memberships are sold on a one year basis and feature fixed per-seat costs for specific routes.
All of these developments are positive signs for an industry rich in potential. Rather than nay saying, we should salute the companies who have creatively responded to extremely challenging times with innovative programs that set the stage for the future of business aviation.
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TRIAD inc.
614-846-8761 Steve J.
Tuesday, July 7, 2009
Monday, July 6, 2009
Assisted Living Facilities Missing the Boat. TRIAD can help.
As one of the older people at the TRIAD agency, Steve Johnston is deeply concerned about the care provided to our older citizens. Part of his concern comes from having cared for both his wife’s and his parents into their late 80’s, and part from his experience as an owner of a firm that provided in-home care for those seniors who were trying to stay in their homes.
Owning a homecare company provided Steve with a solid understanding of the forces at work in the eldercare market, and to see the interplay between families, their loved ones, and the management of the process.
There is a growing need for senior housing and care. The demographics are clear and indisputable. The challenge is to provide the required level of care in the most practical and affordable setting.
In the past 10-15 years, there has been a push to build Assisted Living Facilities (ALF’s) across the country. These facilities provide some needed services to seniors, and allow them some level of independence in a cozy and secure surrounding.
The challenge for ALF’s is that they have done a poor job of informing the marketplace exactly what they are and what they do. The seniors are convinced that ALF’s are the equivalent of “the home”, meaning a nursing home, often the last stop in their lives.
Actually, ALF’s are so much more than that, and they provide an active lifestyle opportunity for those that really need it. But they need to tell their story more clearly, and use more sophisticated marketing tools that help the families convince Mom that the ALF is the best choice for her, and one that may actually prolong her life because of the care, attention, and socialization offered there.
At TRIAD, we believe in helping clients increase their revenues. For the ALF’s in our area, we feel we can help them increase their census by doing a better job of portraying what life in an ALF really is, and how the senior who lives there benefit from its services.
Communication planning, creative execution, and attention to detail are what we do best at TRIAD. Telling the story for assisted living facilities is the kind of interesting challenge we seek.
As one of the older people at the TRIAD agency, Steve Johnston is deeply concerned about the care provided to our older citizens. Part of his concern comes from having cared for both his wife’s and his parents into their late 80’s, and part from his experience as an owner of a firm that provided in-home care for those seniors who were trying to stay in their homes.
Owning a homecare company provided Steve with a solid understanding of the forces at work in the eldercare market, and to see the interplay between families, their loved ones, and the management of the process.
There is a growing need for senior housing and care. The demographics are clear and indisputable. The challenge is to provide the required level of care in the most practical and affordable setting.
In the past 10-15 years, there has been a push to build Assisted Living Facilities (ALF’s) across the country. These facilities provide some needed services to seniors, and allow them some level of independence in a cozy and secure surrounding.
The challenge for ALF’s is that they have done a poor job of informing the marketplace exactly what they are and what they do. The seniors are convinced that ALF’s are the equivalent of “the home”, meaning a nursing home, often the last stop in their lives.
Actually, ALF’s are so much more than that, and they provide an active lifestyle opportunity for those that really need it. But they need to tell their story more clearly, and use more sophisticated marketing tools that help the families convince Mom that the ALF is the best choice for her, and one that may actually prolong her life because of the care, attention, and socialization offered there.
At TRIAD, we believe in helping clients increase their revenues. For the ALF’s in our area, we feel we can help them increase their census by doing a better job of portraying what life in an ALF really is, and how the senior who lives there benefit from its services.
Communication planning, creative execution, and attention to detail are what we do best at TRIAD. Telling the story for assisted living facilities is the kind of interesting challenge we seek.
Sunday, October 19, 2008
A little bit goes a long way, at first.
Having spent 12 years on the board of a local non-profit organization, I've been involved in "commitment raising" campaigns of various shapes and sizes. Certainly, there is the annual campaign to generate the needed operating funds, or the capital campaign to help build much needed new buildings, or the "special" efforts that support a specific need like technology equipment upgrades.
Each requires a story to be told, and each story searches to find the right motivator that will attract the givers who are moved to open their wallets in support. The approach is key, and much thought is given to how, and who to approach.
An approach we have all seen, and possibly been swayed by, is the use of small commitments to an idea, like saving an animal bound for extinction. Once a willingness to support this cause is shown, then new requests for support are offered at greatly increased frequency and amounts, and are often successful.
This pattern of interest and execution reflects a theory proposed by Robert Cialdini called commitment-consistency. (Cialdini, 2001). It works so well because our society values consistency, and we have a strong desire to behave consistently. (Vaidyanathan & Aggarwal, 2005). However, research has shown that this technique only works if the second and subsequent requests are easy to execute, because we are skeptical of motives and do not want to lose track of our intial commitment to a cause. (Vaidyanathan, et.al).
(I was just interrupted by Boy Scouts looking to sell me popcorn. They were carrying a big box, which I don't need, but I might have gone for the smaller box if they had offered it to me. And they didn't tell me what they were going to use the funds for...summer camp, new canoes, tents. I might have gone for one of these appeals.)
So, when you are working on your next fund raising effort, consider the idea of small commitments at first. Then follow with the larger "ask", but make sure the second request is consistent with the first in terms of use of funds.
And remember the Scouts...show me the little box first. It will likely lead to a bigger box next time.
References:
Cialdini, R. B. (2001) Influence: Science and Practice, 4th edn. (needham Heights, MA: Allyn &
Bacon).
Vaidyanathan, R. & Aggarwal, P. (2005). Using Commitments to drive consistency: Enhancing
the effectiveness of casue-related marketing communications. Journal of Marketing
Communications, 11(4), 231-246.
The MarCom Coach
Each requires a story to be told, and each story searches to find the right motivator that will attract the givers who are moved to open their wallets in support. The approach is key, and much thought is given to how, and who to approach.
An approach we have all seen, and possibly been swayed by, is the use of small commitments to an idea, like saving an animal bound for extinction. Once a willingness to support this cause is shown, then new requests for support are offered at greatly increased frequency and amounts, and are often successful.
This pattern of interest and execution reflects a theory proposed by Robert Cialdini called commitment-consistency. (Cialdini, 2001). It works so well because our society values consistency, and we have a strong desire to behave consistently. (Vaidyanathan & Aggarwal, 2005). However, research has shown that this technique only works if the second and subsequent requests are easy to execute, because we are skeptical of motives and do not want to lose track of our intial commitment to a cause. (Vaidyanathan, et.al).
(I was just interrupted by Boy Scouts looking to sell me popcorn. They were carrying a big box, which I don't need, but I might have gone for the smaller box if they had offered it to me. And they didn't tell me what they were going to use the funds for...summer camp, new canoes, tents. I might have gone for one of these appeals.)
So, when you are working on your next fund raising effort, consider the idea of small commitments at first. Then follow with the larger "ask", but make sure the second request is consistent with the first in terms of use of funds.
And remember the Scouts...show me the little box first. It will likely lead to a bigger box next time.
References:
Cialdini, R. B. (2001) Influence: Science and Practice, 4th edn. (needham Heights, MA: Allyn &
Bacon).
Vaidyanathan, R. & Aggarwal, P. (2005). Using Commitments to drive consistency: Enhancing
the effectiveness of casue-related marketing communications. Journal of Marketing
Communications, 11(4), 231-246.
The MarCom Coach
Sunday, October 12, 2008
Power Motivation
Power may corrupt, but it also provides a powerful motivation to reach goals, especially in the business world.
"Motivation is to inspire to work, individually or in groups in the ways such as to produce best results." (Shah and Shah, 2007). While this is grammatically fractured, it defines the essence of motication theory, that is to get the best work, presumably from employees, or from a single individual. the "Motivation" reading from Shah and Shah goes to great length to educate about various motivation theories, but interesting ly, does not select one or even hint at one they prefer.
Fortunately, there are some hidden gems in their list, and I have looked into the work of David McClelland, as he did much of his work in the motivation field working on the three primary motivators he found in his research: power, achievement and affiliation. While there is merit in each of these, I think that Power is the best example from my work experience.
During my time in huge company American companies, I saw several very senior people who were no longer motivated by money or recognition, but who thrived on the trappings of power. They welcomed the ability to change things, and did so just to prove they could. Usually these instances affected few and never became a detriment to business, they were clearly done for sport.
I have become very mindful of how my actions affect others in all aspects of my life, and I do not strive for power, but I still see this type of decision making regularly, and I feel sorry for those who wield the Power.
References:
Shah, K; Shah, P. Motivation. Retrieved October 11, 2008, from http://www.layworks.com/Motivation.html.
Chapman, Alan. David McClelland's Motivational Needs Theory. Retrieved October 10, 2008, from http://www.Businessballs.com/davidmcclelland.htm.
"Motivation is to inspire to work, individually or in groups in the ways such as to produce best results." (Shah and Shah, 2007). While this is grammatically fractured, it defines the essence of motication theory, that is to get the best work, presumably from employees, or from a single individual. the "Motivation" reading from Shah and Shah goes to great length to educate about various motivation theories, but interesting ly, does not select one or even hint at one they prefer.
Fortunately, there are some hidden gems in their list, and I have looked into the work of David McClelland, as he did much of his work in the motivation field working on the three primary motivators he found in his research: power, achievement and affiliation. While there is merit in each of these, I think that Power is the best example from my work experience.
During my time in huge company American companies, I saw several very senior people who were no longer motivated by money or recognition, but who thrived on the trappings of power. They welcomed the ability to change things, and did so just to prove they could. Usually these instances affected few and never became a detriment to business, they were clearly done for sport.
I have become very mindful of how my actions affect others in all aspects of my life, and I do not strive for power, but I still see this type of decision making regularly, and I feel sorry for those who wield the Power.
References:
Shah, K; Shah, P. Motivation. Retrieved October 11, 2008, from http://www.layworks.com/Motivation.html.
Chapman, Alan. David McClelland's Motivational Needs Theory. Retrieved October 10, 2008, from http://www.Businessballs.com/davidmcclelland.htm.
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