A new study by PwC Tax LLP for several private aviation trade groups highlights the industry’s crucial role in the greater travel and hospitality industry.
The research, based on 2023 data, shows that U.S. general aviation users spent an estimated $4.4 billion on lodging.
According to Statista, hotel room revenue in the United States reached $97.8 billion in 2023.
That means private aviation users accounted for just under 5% of room revenue.
Pictured is The Ritz-Carlton Key Biscayne, Florida. New research from PwC shows U.S. private … [+]
The private aviation flyers spent another $2.2 billion on restaurants.
However, PWC warns its figures for travel-related spending could be severely underestimated.
They used government per diems for the research and noted that private aviation users are likely to exceed those numbers for hotels and restaurants they frequent.
The research also omits spending for same day trips and other purchases made in a destination.
The research shows that the U.S. industry contributes $339 billion in economic output and supports 1.3 million American jobs.
It comes as private aviation continues to be under fire.
A new tax coming the Spring on private jet charter flyers departing from French airports will see them pay between $218 and $2,200 per passenger in extra taxes.
According to GlobeAir, which operates a fleet of Citation Mustang very light jets in Europe, domestic private flights will be subject to a 10% VAT on top of the new tax.
According to an analysis by Aviation International News, six passengers on a light jet flying from Bordeaux to Marseille and then to Lyon before returning to Bordeaux would pay €7,500 in new taxes on top of €12,000 to charter the aircraft.
The European Business Aviation Association cited an Oxford Economics study stating that anti-private jet legislation could cost EU governments 57,000 to 104,000 jobs.
The PwC numbers underscore how a small number of private jets can significantly impact the economies they visit.
Brendan O’Connor, the general manager at Adare Manor, told attendees at the Irish Business & General Aviation Association conference, “The hotel business is low margin. It’s the people who stay in our suites where we make the money. Those are our guests who arrive by private jets.”
He said that those clients create hundreds of more jobs off-property via its supply chain of local vendors and the nearby village, where its well-heeled guests frequent the shops and visit pubs.
O’Connor added, “By number, our guests who arrive by private jet are the ones we can least afford to lose as they are the ones who spend the most.”
U.S. private aviation flight hours, as reported by ARGUS TRAQPak, dropped for the second straight year in 2024.
However, it was its third-best year ever from its 2022 all-time high, driven by the Covid surge.
Earlier today, the General Aviation Manufacturers Association reported the highest number of new private jet deliveries since 2010.
Private aviation users contribute $339 billion in output to the U.S. economy and support 1.3 million … [+]
According to the PwC report, California (146,600), followed by Florida, Texas, Georgia, and Arizona, gained the most jobs from private aviation in the U.S.
However, Kansas ranked first in per capita output contribution ($3,692), followed by North Dakota, Alaska, Connecticut and Iowa.
National Business Aviation Association President and CEO Ed Bolen, whose group sponsored the PwC research, said, “This authoritative report will be valuable in our industry’s work to educate policymakers and opinion leaders about the sector’s size and central role in the nation’s economy and transportation system.”
It’s unclear if the PwC data will lead private aviation industry trade groups to embrace their role in the greater travel industry.
Private jets are referred to as business jets and that segment is referred to within the industry as business aviation instead of private aviation.
Many in private aviation believe the image of UHNWs flying to vacation spots hurts the industry’s positioning as a business tool.
Nonetheless, the PwC research helps underline the importance the industry plays in supporting jobs in the travel and hospitaltiy industry as well.