Is it beneficial for private jet charter clients to use multiple brokers to get the best price?
The short answer is no. Some people believe that the brokers will compete, which will result in a lower price. This is incorrect. Operators control the price of the trip, not brokers. Every broker who approaches an operator will receive the same price.
If an operator receives a series of similar requests from brokers, they will have no interest in negotiating the price. In fact, they may actively increase the price for each additional call they receive. This ensures they don’t hurt their relationships with the previous brokers. And, if they change the price, they have to re-quote everyone they’ve spoken with.
It is a better idea to have one, exclusive broker. At Paramount, we receive at least a 5% discount. We pass this on directly to our clients. Operators know that we do this, and it gives them confidence that we can win the trip.
At PBJ, we offer transparent, wholesale pricing plus a fixed management fee for our Jet Card members. This also includes broker discounts. For example, clients who sign up for the Black card membership pay a fixed 10% management fee on any trip. This means the broker can represent the client with exclusivity and negotiate the best prices on their behalf. To add to this transparency, the broker fee is itemized separately.