October 21, 2024
As the industry struggles with availability, XO is expanding guaranteed dynamic pricing for online booking and enhancements to its flight-sharing offerings.
While most broker online pricing is soft quotes, subject to confirmation, XO has been providing hard quotes online for its company fleet of 190 aircraft.
Recently, it increased future flight credits for Signature and Select program members across the company fleet. That includes XOJet Aviation, Red Wing Aviation, Talon Air, and VistaJet, except its Global 7500s.
The latest move means there is now similar guaranteed dynamic pricing on aircraft sourced through its network of approved third-party operators.
XO executives say machine learning technology gives them enough data to provide the hard quotes for most domestic U.S. routings.
XO then tries to source that trip through its partner operators – or its fleet – with a margin.
However, it assumes the risk. In other words, the price you see and pay is guaranteed even if XO has to take a loss.
Quotes highlight if the price is guaranteed – instant booking. They also disclose whether it’s on the XO dedicated fleet or a vetted partner operator.
Guaranteed pricing on partner aircraft is for a cabin category.
A search for availability on Oct. 27 from Austin to Chicago offered up instant booking on a dedicated fleet Citation X for $28,847 or Challenger 300 for $33,487, plus FET.
A Citation Bravo or similar light jet via a partner was bookable with guaranteed pricing for $19,907, including FET.
For partner fleet bookings, operator terms apply. Earlier this year, the DOT clarified if the broker doesn’t specify the operator at the time of collecting payment, accepting the booking, they must allow the customer to cancel and request a full refund when they do.
After operator disclosure, the DOT notes, “[A]ir charter brokers must provide the charterer with the opportunity to cancel the contract for charter air transportation, including any services in connection with such contract, and receive a full refund of any monies paid for the charter air transportation and services.”
Non-guaranteed quotes on the XO website are listed as estimated pricing.
At the same time, executives believe the squeeze on private jet charter availability pushes shared flights to broader acceptance.
New functionality indicates how many seats somebody who is starting a shared flight needs to purchase to enhance the likelihood XO will be able to sell enough additional seats so that the required minimum is sold, and the flight takes off.
Since 2019, XO has flown more than 30,000 passengers through its shared flight technology powered by predictive data science. Shared charter flights have grown more than 100% year-over-year.
XO recently announced it was doubling its scheduled by-the-seat flights between New York and South Florida this winter.
Executives say they may add more of the scheduled shuttle flights based on demand.
Thomas Flohr, founder and chairman of Vista, said, “We continue to execute on our vision of digitizing the entire private aviation offering, delivering to our clients and members what they want today—speed, reliability, and value.”
Following changes in September, XO continues to accept new members into all its programs. That includes its Elite Access fixed-rate membership, at least for the time being.
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