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If you are a travel manager for a large company with multiple offices spread across the world, chances are that the CEO or other high-level managers will need to fly over for many important meetings, or may want to host their guests in style.
Flying business class will certainly ensure plenty of room in the cabin and luxury services onboard, but, as these meetings will likely be part of a full day, time is of the essence. There can be no room for delays at the airport or even with the flight itself.
It may sound extravagant, but in some cases, a private jet could be an option, not just for executives, but for larger groups travelling to work events.
To find out when it can be worthwhile, we break down the pros and cons, the costs involved, and everything a travel manager will need to know when considering private jet hire.
How much does a private jet cost?
Private jet usage is popular in the US, with two-thirds of all private jet flights departing from US airports in 2023.
But how much do they actually cost?
To charter a private jet, such as an FX Air or Vista Jet, you will be paying to rent the whole aircraft, not just the seat like on a commercial flight, and the cost of this rent varies depending on some factors, such as:
Aircraft type and size
The distance you are traveling
The season you are traveling
Any extra services chosen
Type and size of plane
Smaller jets, typically up to five people, are cheaper per hour because they use less fuel and require fewer crew members, while larger jets cost more to operate, but are also more luxurious.
Seasonal flying
Prices will differ depending on the season. For example, if you happen to have a lot of business meetings in December, flights will be in higher demand due to the festivities, and as such will cost more.
Flight distance and time
As you rent a private jet by the hour, the longer the flight, the higher the total cost.
Average private jet prices
Route | Estimated cost (with Clay Lacy) |
Los Angeles to Chicago (regional flight) | Light jet $11,000 Mid-size jet $25,000 Large jet $41,500 |
Los Angeles to London | Large jet $240,000 |
Los Angeles to Hong Kong | Large jet $305,000 |
What does the price include?
When opting for a private jet, it’s important to remember that you are not just paying to rent the plane; you are responsible for other costs as well.
Fuel surcharges
These can vary based on current fuel prices and the jet’s fuel efficiency.
Typical prices for Jet-A fuel, used in aircraft, average $6.00 a gallon. The amount being used per hour will vary by engine size and type.
Landing and airport fees
You’ll need to pay a fee for landing and parking at an airport, and these vary depending on where you land and on the aircraft's size and weight.
A busy airport like JFK in New York can charge up to $1,000 to land.
Crew expenses
Another significant expense can be paying for the salaries and any accommodation of flight attendants and pilots.
Catering and additional services
Added to the total cost will be any in-flight meals, drinks, and any special requests by the travelers.
For a standard meal consisting of options like salads, sandwiches, pasta, and grilled proteins, this can cost between $50 and $150, depending on the size of the group.
Private jets vs business class flights
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One of the key responsibilities of a travel manager, besides booking work travelers on flights and with hotels, is to ensure they are sticking to the budget and getting the best price agreed by their work travel policy.
If you are booking a large group on business class flights to the same destination, it might work out cheaper to rent a private jet.
For example, if you are booking a larger group of 10 employees who only need to travel cross-country, this works out at roughly $50,000.
Comparatively, a private jet could cost as low as $22,000, (but you’d need to book two private jets, both seating five each). You’d then be able to get the luxury of having only your employees on board, a dictated departure time, and time saved waiting at airports.
Below are example costs for flying three business managers from the US to Europe, Asia, or regionally.
US regional flight
Details | Estimated cost (three travelers) | |
Private jet | New York to LA, for example, would cost roughly $26,000 and seat up to five people | Between $11,000 and $41,000 |
Business class | One traveler going from New York to LA is roughly $5,000 with Delta | $15,000 (If you had five travelers, this would cost more than hiring a private jet) |
US to Asia
Details | Estimated cost (three travelers) | |
Private jet | New York to Hong Kong, for example, would cost roughly $305,000 and seat up to 10 people | Roughly $305,000 |
Business class | One traveler going from New York to Hong Kong is roughly $13,000 with Delta | $39,000 |
US to Europe
Details | Estimated cost (three travelers) | |
Private jet | New York to London, for example, would cost roughly $240,000 and seat up to 19 people | Roughly $240,000 |
Business class | One traveler going from New York to London is roughly $7,000 with Delta | $21,000 |
Travel managers and those traveling for work need to weigh up the pros and cons of flying with a private business jet - while it could be financially viable, how could it affect trip scheduling and flexible planning?
What are the pros and cons of flying with a private jet?
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Pros
Efficiency
Those traveling for work can save some all-important time spent waiting in queues at airports if they fly private.
Because of this, they won’t need to turn up at the airport hours before the flight, allowing for more time to get ready, or even sleep a bit longer.
Creates an employee benefit
If employees know that at least one business trip will be via private jet, this might provide an incentive and boost team morale.
Flexible schedule
If you hire a private jet, you can dictate the departure time, and as such, be able to change this time with much more flexibility than a commercial airline.
Private flying
It’s no secret that on a flight, you can be met with loud neighbors, so an advantage of a private jet is that it is just you and your colleagues (who would hopefully be on their best behavior!)
Cons
Expensive price
Flying via a private jet certainly doesn’t come cheap, even when compared to the cost of several business-class flights. And you have to remember to consider the extra costs that you incur, such as fuel surcharges and airport fees.
Requires more planning
When you book a seat with a commercial airline, the flight time, menu, and seat prices are all dictated to you. But if you fly private, travel managers will have to liaise with the flight schedule, route, refueling stops (if necessary), in-flight menu/catering, and any other extra requirements the travelers may have.
This type of extra work would be referred to as unnecessary “shadow work”, which costs US businesses $564 billion every year, so this is definitely something travel managers should consider when choosing how to book flights.
More prone to weather delays
As private jets are much smaller than commercial airplanes, especially those traveling long-haul, they are more likely to be affected by bad weather and often cancel.
And if the flight still goes ahead, the planes are much more prone to turbulence.
Strict cancellation policy
Whilst private jets can be flexible with departure times, if you decide to cancel a flight, most operate a use-it-or-lose-it policy, meaning that you would not be entitled to a refund, and often have to pay a penalty.
Choose the best service for your business
Whether renting a private jet or flying business class, it has to be the service that is the best fit for both work travelers and travel managers organizing the trip.
For companies with a high volume of work travelers going on smaller, cross-country journeys, for example, travel managers could benefit from the luxury and time-saving of a private jet, for less than multiple business class flights.
But for longer journeys, perhaps to Europe, a business class flight would be the less expensive option, and be more flexible with cancellation policies.
To help you decide and book the best service for your travelers, Perk’s platform gives you access to a global inventory of flights all in one place, including executive & VIP business travel services. By bringing your booking, managing, and reporting together, you also remove administrative time burdens, allowing your team to focus on real work, with real impact.
With Perk, all aspects of travel can be booked and managed in one simple dashboard, also giving the ability to manage travelers' preferences, expenses, and company policies – streamlining the whole travel management process.
Whether it’s a private charter or business class, Perk gives you the visibility to see every dollar spent. Ready to focus on real work?. Sign up today for a free demo.
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