Marketing Private Aviation to the Highest Tiers of Wealth {Marketing Private Aviation to the Highest Tiers of Wealth} – English

Marketing Private Aviation to the Highest Tiers of Wealth {Marketing Private Aviation to the Highest Tiers of Wealth} – English

Businesses catering to high net worth (HNW) and ultra high net worth (UHNW) individuals offer increasingly exclusive products, services and experiences in light of the widespread and global democratization of luxury. Private aviation is one of several impacted industries, as private air travel becomes more accessible on a mass scale with the introduction of the sharing economy. Nevertheless, the finest luxury aviation firms tailor communications for clients at the highest tiers of wealth, combating mass market luxury.

ESCHEWING MASS MARKET LUXURY

Whereas some brands revitalize the meaning of luxury by way of exclusive stays at magnificent chateaus, in-person meetings with couture designers and similar gestures, a more discreet approach is required within private aviation.

The market segmentation process begins with a wealth screening and determining net worth, followed by the development of research-based marketing strategies intended to target the wealthiest clientele. When marketing to the HNW or UHNW individual, private aviation companies must first and foremost cater to this individual’s ever-increasing desire for privacy and exclusivity.

Take into consideration Global Jet Capital, a private aircraft leasing and lending solutions firm, which extends personalized financial solutions, business aviation expertise and more to a global client base of HNW and UHNW clientele. Chief Marketing Officer Andrew Farrant attributes flexibility, privacy, security, improved productivity and bespoke random access to aircraft as the foremost needs and desires of the HNW and UHNW individual.

“While this audience may share a certain level of wealth, assuming they share the same hopes, desires, wants and drivers, can lead marketers down the wrong path,” says Farrant. “The key to tapping into the mindset of any audience, including this one, is effective segmentation built on solid voice-of-customer research.”

KNOWING YOUR AUDIENCE

Foregoing flight-share services, true luxury private aviation businesses market private “lift as a service” flights and the ability to own. Security, convenience and time-efficiency are among the greatest motivators for purchasing aircraft, whether outright or via finance or lease. Meanwhile, time-efficiency remains the most desirable draw for “lift as a service.”

The bespoke flexibility of business aviation can compress into days a multi-city trip that would otherwise take weeks with commercial lift. “It’s the difference between spending time in airports and security lines and replacing it with time with loved ones – the things that are really important,” says Farrant.

In a market saturated with products and experiences for mass market consumption, only the most steadfast luxury firms will thrive, deploying highly-targeted communications, product differentiation and exceptional service.

ADDRESSING CONSUMER BEHAVIOR AND MARKET TRENDS

Catering to HNW and UHNW clients also requires a well-versed understanding of how they prefer to shop. Companies like Global Jet Capital offer a number of aircraft financing and leasing services, from progress payment financing and operating leases to equipment upgrade financing. Of note is that while cash dominates the private aircraft purchasing space, operating leases are the second highest in demand and a growing trend within private aviation.

The desire for operating leases emerged in response to the 2008 financial crisis. According to Farrant, operating leases allow clients to retain capital, protecting against swings in residual value and providing flexibility if the client wants a smaller or larger aircraft.

“We often find ourselves partnering with clients to ensure they have [a] full appreciation of their ability to protect capital, reduce residual value risk, manage tax liabilities, and gain aircraft disposition flexibility,” says Farrant. “Establishing a full appreciation of these issues can be the difference between a good and bad experience.”