firebird_uk
22nd Apr 2012, 10:33
Before starting my examination of this subject I will state that my company does sell helicopter experience vouchers and potentially loses customer to the various “voucher pimps” out there, so there is an element of sour grapes here.
However, my fundamental question is around the overall business model as I cannot see that it is viable.
For many years now we’ve had the voucher sellers like Adventure001, Red Letter Days, Buy A Gift etc offering vouchers for organisations that are willing bend over and accept their terms. The model here is fairly simple, they offer vouchers at the same price as we do but they want a slice for selling the voucher and that equates to around 30-40%.
Using this model many helicopter companies around the UK are willing to accept vouchers where a 30 minute flight in a JetRanger will cost £139pp.
Exploiting the power of social media there are a number of other voucher sellers such as Groupon and LivingSocial. Their model it completely different. Here, it’s all about pulling the punters in with big discounts. But the problem is that the pleasure flying industry does not have big margins to give away. Unless, of course, you put your prices up significantly above those of the industry in general.
Now a 25 minute flight in a Jet Banger costs £260pp!
Normally this would be commercial suicide, but with the wonder of modern marketing via Groupon you offer a 67% discount making the flight £85. Bingo, hordes of unsuspecting punters fall for the lure of the big discount. Happy days!
Or are they? When I’ve been approached by these organisations they want discounts of 40% plus. So working on 0.4hrs per lift, 4 pax at £85, 2.5 lifts per hour you’ve got revenue of £850 / hr. Assuming you get bent over and stretched for only 40%, this leaves you with £510 / hr to pay for an AOC listed/maintained aircraft, fuel, landing fees, AOC pilot, loader and the time of the ops team to M&B each lift.
Think there might still be a sliver of profit there? Well what if to do these flights you had to position the aircraft from your base to an airfield that’s 150Nm away?
Ah, the old “get an hour builder to fly it at cost” ploy gets around that. Well yes, it might, if it weren’t for the fact that when I watched them arrive the AOC pilot was in the P1 seat and the “loader” was in the P2 seat. I saw no duals removed so I have to assume there were none.
By flying punters that are miles away from your home base there’s almost no chance of follow on charter work or trial lessons, so why do it?
I’m confused, but willing to be educated! :confused:
Don't get me started on the levels of airmanship I witnessed. :=
However, my fundamental question is around the overall business model as I cannot see that it is viable.
For many years now we’ve had the voucher sellers like Adventure001, Red Letter Days, Buy A Gift etc offering vouchers for organisations that are willing bend over and accept their terms. The model here is fairly simple, they offer vouchers at the same price as we do but they want a slice for selling the voucher and that equates to around 30-40%.
Using this model many helicopter companies around the UK are willing to accept vouchers where a 30 minute flight in a JetRanger will cost £139pp.
Exploiting the power of social media there are a number of other voucher sellers such as Groupon and LivingSocial. Their model it completely different. Here, it’s all about pulling the punters in with big discounts. But the problem is that the pleasure flying industry does not have big margins to give away. Unless, of course, you put your prices up significantly above those of the industry in general.
Now a 25 minute flight in a Jet Banger costs £260pp!
Normally this would be commercial suicide, but with the wonder of modern marketing via Groupon you offer a 67% discount making the flight £85. Bingo, hordes of unsuspecting punters fall for the lure of the big discount. Happy days!
Or are they? When I’ve been approached by these organisations they want discounts of 40% plus. So working on 0.4hrs per lift, 4 pax at £85, 2.5 lifts per hour you’ve got revenue of £850 / hr. Assuming you get bent over and stretched for only 40%, this leaves you with £510 / hr to pay for an AOC listed/maintained aircraft, fuel, landing fees, AOC pilot, loader and the time of the ops team to M&B each lift.
Think there might still be a sliver of profit there? Well what if to do these flights you had to position the aircraft from your base to an airfield that’s 150Nm away?
Ah, the old “get an hour builder to fly it at cost” ploy gets around that. Well yes, it might, if it weren’t for the fact that when I watched them arrive the AOC pilot was in the P1 seat and the “loader” was in the P2 seat. I saw no duals removed so I have to assume there were none.
By flying punters that are miles away from your home base there’s almost no chance of follow on charter work or trial lessons, so why do it?
I’m confused, but willing to be educated! :confused:
Don't get me started on the levels of airmanship I witnessed. :=