Prepaid jet cards that offer guaranteed availability with fixed or capped hourly rates are a low-commitment way to make private flying easy.
In the more than 25 years since Sentient Jet invented the prepaid guaranteed availability, guaranteed rate jet card, the concept has spawned multiple dozens of competitors.
Subscribers to Private Jet Card Comparisons prefer the combination of contracted pricing and guaranteed booking at an 8-to-1 clip over dynamically priced flights.
The issue with dynamic pricing is two-fold.
First, it changes every time.
That means the quote you get today for next month’s trip could differ from the one you get next week.
That’s because each quote is based on different operators; therefore, the price will vary depending on supply and demand at the time.
It’s also based on your flying route and factoring in repositioning.
A two-hour flight in the Midwest could be twice the price of one up and down the Eastern Seaboard.
And yes, there are prepaid dynamic pricing jet cards, but for this post, let’s talk about the ones that offer guaranteed availability and guaranteed capped hourly rates.
If you are an avid reader, you may say, I’ve read this before.
That would be true.
READ: Where does your jet card private jet come from?
But from time to time, some themes are worth repeating.
Our advice: Try your best to avoid the temptation to buy more hours or funds than you will use in the next six to 18 months, with an emphasis on the shorter term.
We know jet card deals can be tempting.
And in some cases, they may be worth it.
READ: How good are those jet card deals?
The first reason, to use a football analogy, is that buying more than you will use during your rate lock is like a punter who outkicks his coverage.
Rate locks, an integral part of guaranteed rate jet cards, typically are for 12 months.
Providers tend to offer longer rate locks for more significant purchases.
Buy 50 hours and get an 18-month rate lock.
Deposit $500,000 and get a 24-month rate lock.
The rate lock protects you against price increases implemented during the lock.
You pay the new, possibly higher rate if funds or hours remain unused.
Based on our quarterly analysis of fixed/capped jet card pricing, the value of a rate lock over the trailing 12-month period was 1.8%.
In other words, the significant benefit is using the hours and funds as soon as possible.
Fixed and capped rate, guaranteed availability jet cards make booking your flights as easy as texting, emailing, or calling.
They often come with generous cancellation terms.
You know a two-hour flight is X dollars.
You know where your jet card will fly you at those contracted prices.
Again, the reason for buying fixed/capped rate guaranteed availability jet cards is that they make booking flights easy.
Many also reduce the risk of losing money to cancellation penalties.
Quite a few will provide recovery aircraft at no additional cost.
However, the benefit of buying and banking extra hours or funds is relatively small.
What’s more, while infrequent, there is a risk that if your provider becomes insolvent, you could lose unused funds.
Yes, jet cards are not a bank.
In other words, buy what you plan to fly.
When you fly off your hours, buy again.
READ: What happens to your jet card and private jet membership deposits?
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