Private Charters: Selling the Friendlier Skies

Although booking private business jets isn't any way for most travel agents to earn a living, some agencies have discovered it's not a bad way to supplement their income.

Pat Oliver, travel consultant for Peak Travel in San Jose, Calif., said she annually books between 10 and 20 private charters for business clients but wishes it were more now that the major commercial airlines are paying zero-base commissions.

"The more charter I could sell, the happier I'd be," said Oliver.

Oliver steers all her charter business to Air Webster, a charter broker based in Brunswick, Maine.

Air Webster finds an aircraft that has the required specs for the client and pays agencies a 5% uncapped commission.

Depending on the type of aircraft and the distance traveled, private charters can cost anywhere from $5,000 to $50,000 for a top-of-the-line business jet.

Oliver said Peak Travel usually passes along a part of that commission to the client, but there is no set percentage that the agency keeps.

"It depends on the price of the aircraft and what the market will bear," Oliver said. "We try to be reasonable, so it's a win-win situation for everybody."

When asked how much the agency would typically retain on a $13,000 charter, Oliver said about $300, which is about half of a 5% commission.

Michelle Ying, manager at BiCoastal Travel in Los Angeles, said her agency books travel for celebrities who require a private jet.

Her agency, which buys charters through Charter-Auction.com--a broker in Quincy, Mass., that enables charter operators to bid on itineraries on line --has earned up to $1,000 for such bookings, Ying said.

"Charter-Auction is very responsive and gets our clients the best rates, and we tack on a service fee," Ying said.

The service fee, which is really a price markup not unlike price markups on consolidator fares, is included in the total price of the charter.

This year the agency has sold two private charters and, Ying said, "We need to find more ways to book charter flights. There's certainly a market for it, and we have to find new avenues to make money."

Of course, it helps if you have the right clients.

World Travel Specialists Group (WTSG) in New York books travel for lawyers and other well-paid professionals who require a private charter.

"We handle road shows for investment bankers whose schedules can't be accommodated by the commercial airlines," said Paul Metselaar, chief executive officer of WTSG.

"We have relationships with a couple of charter brokers who get us the best price and make sure we're dealing with reputable charter operators.

"We have VIPs going on these flights, so we need everything to go well."

A seasoned corporate agent at WTSG, who requested anonymity, said she books about 50 charters a year.

One recent booking was preceded by an unpleasant situation involving a commercial carrier.

A client and five colleagues were to fly business class on US Airways from New York (LaGuardia) to Pittsburgh. The WTSG agent said US Airways "downgraded the equipment at the last minute" and substituted a plane without a business class cabin.

The client was furious and called the agent, asking her to book a last-minute charter flight out of Teterboro Airport in New Jersey.

Depending on how much time she spends arranging accommodations, which includes catering, the agent said she charges a service fee ranging from 5% to 10% of the charter price.

She does most of her charter bookings with Corporate America Aviation, a broker in North Hollywood, Calif.

"I trust them implicitly," she said.

"It has to be right. My client thinks I'm [selecting the jet], so it's a big responsibility, and I take it very seriously."