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Why VistaJet's Business Model is so successful?

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VistaJet’s Company Overview


VistaJet is a leading global aviation company, providing exceptional and unparalleled standards in private travel solutions. Founded in 2004 by Thomas Flohr, the company revolutionized the private jet industry with a unique business model focused on shared economy and asset-light ownership. VistaJet owns a fleet of over 70 silver and red business jets, with access to 187 countries worldwide. The company's services are about offering a global infrastructure for frequent flyers, with a focus on longer-haul travel. VistaJet has flown corporations, governments, and private clients to 96% of the world, offering an extraordinary flight service to all its passengers. Business Model: VistaJet operates under a distinctive, subscription-like business model, which sets it apart in the private jet industry. Rather than owning the jets, customers pay for a membership that gives them access to VistaJet's fleet whenever they need it. This model, often referred to as the "Netflix of private jets," allows customers to have all the benefits of a personal jet without the responsibilities and costs of ownership. The membership model also allows VistaJet to optimize the usage of their fleet, as planes can be used by different members at different times, increasing efficiency and reducing costs. Revenue Model: VistaJet's revenue model is primarily based on its innovative program membership. Customers pay an upfront deposit, which is then debited as they book flights at a fixed hourly rate. This rate covers flight hours, fuel costs, and other operational expenses. VistaJet also offers supplementary services such as luxury catering or ground transportation, which provide additional revenue streams. Furthermore, the company generates income through its On-Demand service, where non-members can book flights on an ad-hoc basis. This diversified revenue model, combined with the company's focus on exceptional service and customer experience, has contributed to VistaJet's significant growth and success in the global aviation industry.

https://www.vistajet.com/en/

Country: Republic of Malta

Foundations date: 2004

Type: Private

Sector: Transportation

Categories: Airlines


VistaJet’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access, attractiveness

Functional: saves time, quality, connects, informs


VistaJet’s Related Competitors



VistaJet’s Business Operations


Access over ownership:

The accessibility over ownership model is a business concept that allows consumers to utilize a product without owning it. Everything serves a purpose. As a result, consumers all across the Western world are demanding more value from their goods and services, and they are rethinking their relationship with stuff.' Furthermore, with thriving online communities embracing the idea of access above ownership, the internet is developing as a robust platform for sharing models to expand and prosper.

Best in class services:

When a firm brings a product to market, it must first create a compelling product and then field a workforce capable of manufacturing it at a competitive price. Neither task is simple to perform effectively; much managerial effort and scholarly study have been dedicated to these issues. Nevertheless, providing a service involves another aspect: managing clients, who are consumers of the service and may also contribute to its creation.

Codifying a distinctive service capability:

Since their inception, information technology systems have aided in automating corporate operations, increasing productivity, and maximizing efficiency. Now, businesses can take their perfected processes, standardize them, and sell them to other parties. In today's corporate environment, innovation is critical for survival.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Fractional ownership:

Fractional ownership is a popular investment arrangement for high-value assets like airplanes, automobiles for racing, and vacation homes. The main distinction between fractional ownership and timeshare ownership is that investors own a portion of the property rather than time units. Thus, if the asset's value rises, the value of the investment's shares increases as well.

Membership club:

Belonging to a group, either individually or collectively. Certain memberships may charge a fee to join or participate, while others are free. Others have particular skill criteria that must be met before membership is granted. Members are entitled to specific benefits or advantages, but not all members may enjoy the same rights and privileges. Another method is taken by a members-only luxury lifestyle management business that offers concierge services such as vacation reservations, restaurant suggestions, and event access.

Mobile first behavior:

It is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices. The term is “mobile first,” and it is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices.

On-demand economy:

The on-demand economy is described as economic activity generated by digital marketplaces that meet customer demand for products and services via quick access and accessible supply. The supply chain is managed via a highly efficient, intuitive digital mesh built on top of current infrastructure networks. The on-demand economy is transforming commercial behavior in cities worldwide. The number of businesses, the categories covered, and the industry's growth rate are all increasing. Businesses in this new economy are the culmination of years of technological progress and customer behavior change.

Rent instead of buy:

Services that do not need the product to be purchased but rather rent it for the economic benefit of requiring less money to access the commodity. When you rent, you assume less obligation since most of the burden is placed on the owner's shoulders. There is no debt; you are just responsible for the monthly rent. When renting, you have more flexibility by signing a six-month or one-year lease. This implies that you will be confined to that location for at least that period. When your lease term expires, you have the option of switching to another product or renewing your lease.

Ultimate luxury:

This business approach is based on product distinctiveness and a high level of quality, emphasizing individuals with significant buying power. The expenditures required to create distinction are covered by the comparatively high prices charged, which often allow for very high profits.

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