Today I flew JetSuiteX for the first time. It’s a small, boutique airline based on the West Coast that’s only a few years old. They provide business-class quality with a “hop-on” experience - while feeling like a private-jet. And they do this with rates that are comparative or only slightly more than commercial fares.
While it’s still a commercial flight, their pricing makes the perceived value incredible. Instead of renting gates at the city airport, JetSuiteX rents out their own hangars offsite. This clever tactic allows them to completely re-imagine the ground experience for passengers. There is no security line or crowded airport, it’s just a counter and an open-air lounge. They eliminated all the hassles.
What’s interesting is there is a clear value prop to justify their prices. Save the stress and a ton of your own time. You can show up 15 minutes before a flight - and make it without any stress! A compelling offer that will appeal to anyone that properly values their own time. I could easily save an hour before my flight and 30 minutes after.
This is an experience arbitrage, where the separate hangar makes the perceived value so much higher than the cost to deliver. Something to think about when creating new services or products.