How to Build a Travel ROI Model for Deal Teams

Photo by Alen Kajtezovic on Unsplash

Being a busy executive, transaction advisor, or legal counsel often means a hectic travel schedule that can make up a significant part of corporate expenses. That's why building a travel ROI model is necessary to manage executive bandwidth. Compare the value of private aviation weighed against dollar cost versus overall productivity and risk.

What Are Standard Business Travel Tiers?

BlackJet jet card programs are highly efficient ways to help corporate balance sheets avoid fluctuating fuel surcharges and unpredictable pricing in the charter flight market.

Commercial flights may be lower in cost, but there is a high risk for delays due to missed connections and cancellations. It also increases the likelihood of executive fatigue, which can affect performance at meetings and destination events, as well as overall work-life balance. 

On-demand charter provides pay-as-you-go flexibility, but is subject to market pricing spikes during peak season. Fractional ownership for jet flights is ideal for consistent high-frequency flyers who travel over 100 hours annually. 

What Are Fixed-Hour Jet Card Programs?

These are prepaid private aviation memberships for flyers, complete with a specific block of usable flight hours. The standard minimum package is at least 25 hours at predictable hourly rates. 

Corporate teams may pay an initial lump sum, often tied to a specific jet category ranging from light to heavy jets. Every time they take a flight, the time is deducted from the card.

These programs are helpful for busy teams, as they usually promise access to an aircraft on short notice. Members can even travel on peak travel days, providing better ROI over commercial.

How Do You Define Executive Time?

The inputs and core metrics of a premium travel budget for an executive start with the hourly breakdown of your C-suite teams and other deal team members, such as your legal counsel, who may be on retainer. It includes breaking down salary and benefits. 

Account for the “lost” time during commercial travel, which includes:

• Delays

• Security lines

• Layovers

• Terminal transition in large airports

What Goes Into Standard Itineraries?

Building a comprehensive itinerary comparison starts with a standard sample route, such as travel between Washington, DC, and New York or between the main corporate office and a subsidiary. 

Calculate the total trip time, which also includes driving to a backup secondary airport in case a flight from a major hub isn’t available. When calculating the potential cost of an overnight stay at an appropriate hotel due to a delayed commercial flight, you must include meals per diem for each team member. 

When factoring in delay probability, consider the side effects such as stalled deals, delayed product launches, and a damaged business reputation risk due to executive absenteeism from any major event.

Private Travel May Be Worth the Price

For certain business teams, private jet travel may not be optional, but a necessity to ensure they always have a reliable flight to particular destinations. Instead of waiting through unpredictable commercial flights and security, having constant private aviation access can reduce overall transit time, which aids the corporate budget and risk mitigation.