The Next Economic Paradigm

Tag: charter

The Gamification of Air Travel

Commercial airlines continue to astonish the traveling public with an ever-increasing array of new ways to charge extra fees.  The newest scheme is to charge 5 dollars to have a customer service agent print your boarding pass.  You can get around this by using your own printer, or using a free kiosk – which undoubtedly will not be free for long.

Your schedule or theirs?

Meanwhile, the different prices that people pay for the same trip continues to fluctuate wildly. There are very few products whose price defies supply and demand or actually increases as it approaches it’s expiration date.

People who book 4-6 weeks in advance have the highest probability of getting the lowest fair – as long as the don’t buy the ticket on a weekend.  Buying a ticket on a Tuesday morning 4 weeks in advance can yield a 50% discount of the person who bought their ticket 2 weeks in advance on a Saturday afternoon.

Obviously, there must be some net average cost for a seat, per mile traveled with all services restored, so why can’t we save the drama and loss of productivity and use the average price? An “average revenue per seat mile” price is good enough for Wall Street Annual Report – why not the rest of us?. Another nagging question: why can’t I use frequent flier miles to buy lunch on the plane or carry extra suitcase?  What, they don’t accept their own currency…?!?!

Are You Gamed by FlyVille?

The airline industry has been gamified and people are hard wired to play along – of course they complain, but they also learn to behave in a manner that they perceive to be in their own best interest, but actually is in the Airline’s best interest.  Tacit collusion among airlines can now play out using frequent flier miles, copycat fares, and lowered customer expectations.  How much time do people spend playing this game?

This is also the environment where a competitor can emerge with a  “counter-game”.

Social Flights was launched a few months ago with a very simple data landscape; a means and manner in which people can meet to ride share on private aircraft.  Currently, the amount of time required for a social flights customer to execute a flight plan – that is, organize people in their community with shared flight intentions – may still be greater than the time and harassment of just going through the flow of the commercial airline abyss.   Over time, however, this will change.

Frequent Influence Miles

Suppose that Social Flights deployed frequent flier miles?  Suppose these could be awarded for organizing a social flight plan to a social network?  Suppose miles could be redeemed for discounts on hotels, car rentals, and ground services (think AAA)? Restaurants, entertainment and events routinely pay commissions to concierge referrals, why wouldn’t they also redeem Social Flights Flier Miles in the same manner?

What if Social Flights frequent flier miles could be earned and redeemed without actually flying, but by simply organizing communities until your perfect trip comes along?  What if a person with high Social Flights Frequent Flier Miles represented a better social influence predictor than say, a Klout score or Twitter follower count?  Would vendors want to know who these magical people are?  Will vendors compensate them for their influence in a community?  Wouldn’t the community then define the ads that get pitched?

What’s the end game? Let’s transform the industry together.  Seeking game designers to build the next generation of air travel

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Watching The Birds Play The Value Game

To some entrepreneurs, the problems with the aviation industries signal many insurmountable obstacles.  At  Social Flights these challenges portend an extraordinary opportunity for a new business method to bring efficiency, order, social value while eliminating artificial barriers.

Social Flights value proposition is very strong for travel ranging from 200-1000 miles between smaller airports. Social Flights can deploy quickly in response to specialized market needs, environmental condition, opportunities, or events. Social flights adapts the mission of the aircraft to meet the opportunities presented to the market.

Conversely, commercial aviation struggles dearly in this segment because they try to get the market to meet the pre-ordained mission of the aircraft. The entire air transportation system would be best served if commercial aviation concentrated on the long haul/high volume “migration” service.  There is no reason why private aviation cannot perform the job that gridlocks commercial aviation.  This would make both industries more efficient.

Commercial Aviation’s Race to Nowhere

The Deregulation Act of 1978 in the Commercial Aviation system led to the development of the Hub and Spoke system whereas commercial carriers would fly people from small locations into a one or more large “Hub” cities where they would transfer on to the next destination – usually another hub, or on to the final destination.

Deregulation undermined point-to-point service regardless of market demand, ignoring social objectives of the passengers, having no regard for the final destination of the passengers, and blowing off the “time-value” of their passengers.  Recently, the ever expanding security layer has reached the point of personal privacy invasion.  With the age of the Internet, sites such as Travelocity and Expedia diluted the “service class” market segmentation of the airlines in favor of the “price class” segmentation of airlines.  These forces caused the commercial airline experience to become a deceptive, deeply invasive, and physically strenuous experience.

Private Aviation’s starvation diet

Meanwhile, the private aviation sector has fallen under the thumb of listing agents who tie up the industry behind the gilded walls of Charter Brokerage Houses.  FAA regulation hampers the ability to attract passengers on a per-seat basis, which gives private operators a hugely limited marketing position.  Brokers took over to mark-up the price of chartered flights far beyond the reaches of a mainstream market.

For these reasons, the private aviation sector has had difficulty organizing itself into a self-sustaining cooperative, until now.  In Fact, the smaller the airplane and the more widely distributed the airports, the simpler and more efficient the whole social system can become.

Social Flights changes the Game by Changing the Mission.

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