Bringing Priceline and Ebay-like auctions to the charter business, Virgin Charter launched operations March 4 after it concluded its beta test period during which an exclusive group of corporate and individual buyers used the new marketplace. Announced at last year’s NBAA show, Virgin Charter claims to provide travelers with a “smarter way to charter.” Related Story The company partnered with Travelocity Business marking the first scenario where executives served by a major business travel agency can shop for and book a private jet flight online.
The service offers operators “hand-picked for their exceptional safety and quality standards” who will compete for business once a traveler submits a request. For their part, charter operators will be able to market their service through Virgin Charter, providing revenue from flights that would otherwise return empty by using the “Hot Deal” program on the site.
“Until now, booking on-demand charter has been a cumbersome process and flyers didn't always know what they were getting,” said Scott Duffy, CEO. “We are bringing the power of Virgin to the industry and are now offering an entirely new way to book charter over the internet while setting new quality standards.”
VC calls itself a full-service marketplace that brings together buyers who want to book private air travel with safety-rated charter operators. Its competition will be traditional brokers and fractional ownership programs. It hopes to eliminate the uncertainty and hassles in booking charter flights. Seller inventories are made available on line without changing the charter business model. Passengers end up managing their entire trip on line instead of calling each charter company, finding availability, negotiating a price and then booking. Virgin Charter does not own or operate aircraft, and it does not act as a broker.
The company has worked with JD Power & Associates to create the industry's first Quality Ratings Program and has selected operators that represent the cream of the crop, it said. It also said that all operators are audited for safety by independent, internationally recognized third parties. Virgin Charter also announced that Travelocity Business is the exclusive launch business travel agency for Virgin Charter in the travel management space. Virgin Charter will provide charter solutions for Travelocity Business clients who want to fly private.
“Virgin Charter's technology solution transforms a complicated process into a simple four-step process,” said the company at its launch. “Virgin Charter clients submit their trip request online, compare offers from top charter operators, select the best offer, and buy it online. The technology also makes it easy to compare offers based on price, aircraft, quality, and safety, saving time and ensuring clients get the right plane for their trip.
The service targets high-end charter clients by allowing passengers to search its computer reservation system for aircraft going their way as long as they originate in the U.S. In a twist on the Priceline model, charter companies bid on the passenger’s trips combining it with the eBay model. Operators then give Virgin Charter a cut. With Virgin Charter, the bids will be available to everyone – competition and passengers alike.
Once the US operation is launched Virgin expects to expand the model to other regions.