Results of Our Annual FBO Industry Survey Predict 2.5% Average Fuel Sales Increase for 2015

By John L. Enticknap and Ron R. Jackson, Principals of Aviation Business Strategies Group

- Facilitators of NATA’s FBO Success Seminar and Authors of the forthcoming book: FBO Survival: 10 Tips to Keep Your Operations Lean, Mean & Profitable

This week at the NBAA Schedulers and Dispatchers (S&D) Convention in San Jose, CA, we will release the results of our Annual FBO Industry Survey and Forecast for 2015.

We are happy to report that for the first time in several years, we’re seeing a glimmer of optimism amongst the majority of FBO owners and operators we encounter and are included in the survey. In a nutshell, the results indicate a current market that has yet to catch any real traction but also one that is being approached with guarded optimism with more than 60 percent predicting an average increase in fuel sales of at least 2.5 percent. (See related chart.)

This projection follows another year when fuel sales were depressed with the majority reporting an actual decrease in sales in 2014.

Overall, the outlook for 2015 shows a perceptible increase in optimism compared to the results from the 2014 survey where the majority of respondents predicted at least a breakeven marketplace with only about 40 percent projecting an increase in fuel sales volume.

Conversely, in our 2015 survey, more than 60 percent predicted an increase in fuel sales, which represents a positive upswing of 20 percent.

As far as forecasting confidence in the economy, the majority of survey respondents moved from having little or no confidence in 2014 to a comfortable middle ground position in 2015. Last year, the majority said the economy was not moving in the right direction. For 2015, most said they are undecided. Again, we see this is an indication of guarded optimism.

In what we call our high-water benchmark, 18 percent of those surveyed this year said they predicted an increase in fuel sales of 5 to 8 percent. This compares to 10 percent responding to the same question in 2014. And for the really strong performers, 8 percent of respondents said they expect an increase in fuel sales of more than 8 percent, which is the same result for last year’s survey.

An added question to this year’s survey queried respondents on whether the recent decrease in oil prices has affected the number of aircraft flying into their FBO. An overwhelming majority said the amount of traffic has remained about the same.

What we saw in the comment section of our survey is a general observation that piston aircraft owners and, in particular, the weekend enthusiasts are starting to fly more with lower posted avgas prices. Also, many who responded indicated that aviation fuel prices will not come down as quickly as auto gas because there is still a lot of higher priced fuel in inventory at airport storage facilities.

In looking at flight hours flown by general aviation and business aircraft, which we know is a key statistic linked to potential FBO fuel sales, the numbers continued to be flat in 2014. As a result, we really don’t see flight hours increasing in the short term, even though fuel prices are coming down.

Based on our survey findings, we forecast aviation fuel prices continuing to drop throughout 2015 with no appreciable increase in flight activity until the third quarter.

If you are attending the S&D Conference, we would like to see you so please stop by the ACUWKIK Booth #1723. Also, please attend our special Exhibitor Session at 5:15 pm in the Exhibit Hall.

In addition, there will be a drawing at the National Air Transportation Association (NATA) booth #1511 for a free registration for our next NATA FBO Success Seminar scheduled for March 9-10 in Las Vegas. Registrants will receive a free copy of our new book, FBO Survival! 10 Tips to Keep Your Operation Lean, Mean and Profitable. The free registration and book are valued at more than $700.

About the bloggers:

John Enticknap
John Enticknap has more than 35 years of aviation fueling and FBO services industry experience and has served as president/CEO of Mercury Air Centers, a network of FBOs he grew from four facilities to 21 locations. He has international FBO experience including opening the Royal Aviation Terminal in Kuwait. John has held executive management positions with DynAir Fueling and CSX Becket Aviation and holds a Bachelor of Science in industrial management from Northeastern University. He teaches the acclaimed FBO Success Seminar for the National Aviation Transportation Association (NATA) and is an NATA certified safety auditor. John is the co-author of the forthcoming book FBO Survival! Keeping Your Operation Lean, Mean & Profitable. He also writes an industry blog titled FBO Connection for Penton‘s B&CA Digest. He is an active ATP and CFI rated pilot with more than 8,100 flight hours; certified in both fixed and rotary wing aircraft. jenticknap@bellsouth.net, Ph: 404-867-5518, www.absggroup.com

Ron Jackson
Ron Jackson is co-founder of Aviation Business Strategies Group and president of The Jackson Group, a PR agency specializing in FBO marketing and customer service training. He has held management positions with Cessna Aircraft, Fairchild Aircraft and Bozell Advertising. Ron developed the strategic marketing communication plan and programs for Mercury Air Centers and consults with numerous FBOs in areas of marketing, promotions and customer service training. He is the author of Don’t Forget the Cheese! The Ultimate FBO Customer Service Experience. and co-author of the forthcoming book FBO Survival! Keeping Your Operation Lean, Mean & Profitable. He is a journalist and co-developed NATA’s acclaimed FBO Success Seminar Series. Ron writes an industry blog for Penton’s B&CA Digest titled: The FBO Connection.  Ron@thejacksongroup.biz,  Ph: 972-979-6566, www.absggroup.com

Visit FBO Connection Bloggers at 2015 Schedulers & Dispatchers Conference

By John L. Enticknap and Ron R. Jackson, Principals of Aviation Business Strategies Group

- Facilitators of NATA’s FBO Success Seminar and Authors of the forthcoming book: FBO Survival: 10 Tips to Keep Your Operations Lean, Mean & Profitable

The team at Aviation Business Strategies Group and FBO Connection bloggers, John Enticknap and Ron Jackson, will be attending the 2015 NBAA Schedulers & Dispatchers Conference next week in San Jose, Calif., and would love to touch base.

We’ll be conducting the Preconference Exhibitor Session on Tuesday, Feb. 3, at 5:15 p.m. in the Convention Center Exhibit Hall that will include a brief overview of our Annual FBO Industry Survey for 2015. Many of you have participated in this survey, and we thank you very much. We think you will be a little surprised at the results, so we encourage you to attend.

During the S&D Conference, please visit the AC-U-KWIK booth — 1723, 1725 and 1727 — and take a peek at our new ebook that is coming out: FBO Survival! 10 Tips to Keep Your Operation Lean, Mean and Profitable.

Also, please save the dates of March 9-10 for our acclaimed NATA FBO Success Seminar at the Sands Convention Center in Las Vegas. We hope to see you there as well.

Lastly, we’d like to thank the good folks at Euro Jet for having us as guest speakers at their training event in Prague on January 14 and 15. They are a great group of people, and we enjoyed bringing our Don’t Forget the Cheese! customer service training program to this part of the world.

See you at SDC2015.

John and Ron

About the bloggers:

John Enticknap
John Enticknap has more than 35 years of aviation fueling and FBO services industry experience and has served as president/CEO of Mercury Air Centers, a network of FBOs he grew from four facilities to 21 locations. He has international FBO experience including opening the Royal Aviation Terminal in Kuwait. John has held executive management positions with DynAir Fueling and CSX Becket Aviation and holds a Bachelor of Science in industrial management from Northeastern University. He teaches the acclaimed FBO Success Seminar for the National Aviation Transportation Association (NATA) and is an NATA certified safety auditor. John is the co-author of the forthcoming book FBO Survival! Keeping Your Operation Lean, Mean & Profitable. He also writes an industry blog titled FBO Connection for Penton‘s B&CA Digest. He is an active ATP and CFI rated pilot with more than 8,100 flight hours; certified in both fixed and rotary wing aircraft. jenticknap@bellsouth.net, Ph: 404-867-5518, www.absggroup.com

Ron Jackson
Ron Jackson is co-founder of Aviation Business Strategies Group and president of The Jackson Group, a PR agency specializing in FBO marketing and customer service training. He has held management positions with Cessna Aircraft, Fairchild Aircraft and Bozell Advertising. Ron developed the strategic marketing communication plan and programs for Mercury Air Centers and consults with numerous FBOs in areas of marketing, promotions and customer service training. He is the author of Don’t Forget the Cheese! The Ultimate FBO Customer Service Experience. and co-author of the forthcoming book FBO Survival! Keeping Your Operation Lean, Mean & Profitable. He is a journalist and co-developed NATA’s acclaimed FBO Success Seminar Series. Ron writes an industry blog for Penton’s B&CA Digest titled: The FBO Connection.  Ron@thejacksongroup.biz,  Ph: 972-979-6566, www.absggroup.com

Building Long-Term Profitable Customer Relationships, Part 3: Don't Forget the Cheese!

In part one of this three-part series, Are You the Restaurant Owner? we talked about what makes a customer loyal and taking a hands-on approach to customer service. In part two, Do You Feel Lucky? we discussed the perils of lowering the price of fuel to attract new customers.

The following is the third installment:

Part 3: Don't Forget the Cheese!

“Here is a simple but powerful rule, always give people more than what they expect to get.” – Nelson Boswell

In the quest to build long-term profitable customer relationships, we can’t overlook the basic foundation of delivering exceptional customer service. At the end of the day, if you can’t walk up to a customer preparing to depart your FBO with confidence and ask the question, “Would you recommend us?” then please read on.

At Aviation Business Strategies Group (ABSG), we have analyzed various customer service training programs that help teach the basics. Many new customer service employees are not that familiar with general and business aviation and need a good understanding of the FBO business basics as well as the airport environment and flight operations. Mostly, these basic training videos and interactive teaching aids do a very good job of instruction on the mechanics of the job.

However, if your goal is to provide The Ultimate Customer Service Experience, you need to take your customer service training to a whole different level.

The Origin of “Don’t Forget the Cheese!”

While I was working my way through college, one of my jobs was at a restaurant that primarily served hamburgers. We always did a great takeout business, and one day a loyal customer stormed back into the restaurant with his sack of hamburgers in hand.

“I can understand not putting in napkins or forgetting the salt and pepper,” he huffed. “But when I order a cheeseburger, it would be really nice if there was cheese on it.”

Needless to say, we were all embarrassed, and the owner came out and apologized for the oversight and the inconvenience it caused. A few minutes later, the customer left with cheese on his cheeseburgers and a couple of coupons for a return visit.

Later that day, when we had a shift change, the owner pulled everyone together and made his point about carefully checking a customer’s order, especially the takeout orders. Lesson learned, as they say.

Then, as the first shift started to leave, a buddy yelled back to the cook and said: “Hey Charlie, don’t forget the cheese!” That comment kind of lightened up the mood and became our battle cry for the rest of the summer.

This experience stuck with me over the years, and when it came time to develop an advance customer service program for one of our client FBOs, it just seemed natural to brand it: Don’t Forget the Cheese!©.

Key Elements to Great Customer Service Training

There are several necessary elements in developing a good customer service program for your organization. Here are few:

• Make it memorable. By branding a program with a memorable phrase, it promotes buy-in from the employees.
• Make it fun. Let’s face it, customer service training can potentially be very boring.You can liven up the atmosphere with a little tongue-in-cheek humor to keep everyone focused and awake.
• Make it relevant. Include some real-life customer service experiences that happened at your FBO. Use these in role-playing sessions.
• Use three-dimensional teaching aids. For our Don’t Forget the Cheese! © on-site training, we have fun by introducing a variety of cheeses and of course crackers as well.
• Make it sustainable. Does your current customer service program have any legs? In other words, are elements built into the program to serve as occasional reminders that make it sustainable over time? After the initial customer service training is complete, most employees operate in the halo effect of something new. However, that halo can fade over time, so make sure you have a vehicle to keep the elements of your program top-of-mind.

The Fundamentals

The use of Cheese in our proprietary customer service training course also serves as key reminders to CSRs, as well as other employees, to practice exceptional customer service. Here are just a few of the fundamentals to great customer service:

• Smile. Remember to say, “Cheese,” to yourself, as if someone were taking your photo. Even when answering the phone, put on a smile and the customer on the other end will sense they are talking to a happy person.
• Add a little extra when delivering customer service. Because cheese is often used as a condiment, it represents the added touch, the little extra that puts a smile on the customer’s face and makes them keep coming back.
• Remember a customer’s name. In the FBO environment, adding cheese can be as simple as remembering a customer’s name. Most people react positively to being called by their name and are impressed when you remember. Are you the restaurant owner?
• Go the extra mile. Going the extra mile could be something as simple as showing the customer where the pilot lounge is located instead of pointing in the general direction.

For our sustainable part of the Don’t Forget the Cheese! program, we use Cheese Bites© that are little reminders of some of the principles of good customer service. These are sent periodically to employees electronically by e-mail or through the use of social media by the FBO.

If you would like to share a customer service tip, please send them to me, and I’ll publish them in a future blog post. Send them to Ron@thejacksongroup.biz.

©The terms/phrases Don’t Forget the Cheese! and Cheese Bites are proprietary in their intended use and considered intellectual property of Aviation Business Strategies Group.

Ron Jackson

Ron Jackson is co-founder of ABSG and president of The Jackson Group, a public relations agency specializing in aviation and FBO marketing. He has held management positions with Cessna Aircraft and Bozell Advertising and is the author of Mission Marketing: Creating Brand Value and co-author of Don’t Forget the Cheese!, the Ultimate FBO Customer Service Experience.

Welcome to AC-U-KWIK's FBO Connection Blog

We would like to welcome you to AC-U-KWIK’s FBO Connection, a source for discussion, ideas and general conversation on the FBO business. Here you’ll find weekly contributions from seasoned FBO professionals, sprinkled with bits of wisdom and peppered occasionally with some hot topics. We like to call it “Sage Advice for the FBO Community.”

When AC-U-KWIK approached myself and business partner Ron Jackson about writing a blog for their new, enhanced electronic AC-U-KWIK Alert newsletter, we both felt honored to be able to contribute to the AC-U-KWIK heritage as the definite industry resource for Fixed Base Operation information worldwide.

After 40-plus years of working in the aviation fueling and FBO industry, including as president of Mercury Air Centers’ 21-location network, I was eager to share my knowledge of the industry to the FBO community. This was the genesis for establishing our company, Aviation Business Strategies Group, as a means for sharing, teaching and consulting with FBOs to help them become more successful.

Besides sharing our FBO expertise and experiences in this blog, Ron and I regularly teach a seminar for the National Air Transportation Association (NATA).

Nearly three years ago, NATA approached us about teaching a seminar based on our proprietary 10 Steps to FBO Success. So in the fall of 2008, we taught our first seminar on-board a cruise ship as it sailed the Caribbean to the Bahamas. This first seminar has now evolved into NATA’s acclaimed FBO Success Seminar Series, and we have conducted several “dry land” seminars with the next one scheduled for Indianapolis in April.

For AC-U-KWIK’s FBO Connection Blog, we’ll touch upon many of the winning strategies we teach in our NATA Seminars and a whole lot more. Each week we’ll peel back the onion to reveal what we consider to be seasoned FBO insider knowledge — the legal kind — aimed at educating and motivating FBO managers, supervisors and employees. To that end, we hope we don’t disappoint.

Since my expertise is in FBO Operations, I’ll be blogging on a variety of topics that fall out of our 10 Steps to Building a Profitable FBO. Included will be winning strategies and tactics you can put to use immediately and over time in the operation of your FBO. Subjects range from Managing Your Fuel Pricing and Margins to finding “free money” hidden in you operation — and I’m not talking about the nickels and dimes found in the lounge sofa.

Ron, who has a considerable aviation public relations and marketing background, will be blogging about:

• How to Build Long-term Profitable Customer Relationships
• Making the Customer Your Best Friend
• and Marketing Your FBO on a Limited Budget, among other topics.

In addition, we have developed an FBO Customer Service Training Program titled The Ultimate FBO Customer Service Experience: “Don’t Forget the Cheese!” This is not your entry-level customer service training curriculum, which teaches the basics like Introduction to General Aviation and The Basics of Airport Operations. Instead, we teach members of your organization common sense customer service and how to add value to each transaction by simply “Adding a Little Cheese!” Sound intriguing? Stay tuned as we feed you some interesting cheese nibbles along the way.

Lastly, we will invite some guest bloggers in various areas of expertise including:

• FBO Law: Minimum Standards — Current Trends from Airport Leases
• FBO Insurance: Insurance Issues and Risk Management
• FBO Web Site Enhancement & Social Media: Developing Streaming Videos, Optimizing Your Site and the Value of Communicating via Social Media
• FBO Finance: FBO Accounting: “The Good, Bad and Ugly”
• FBO Construction: Keeping on Time and Within Budget on Hangar and Terminal Projects

Ron and I look forward to reaching out to you each week through this blog and connecting on everyday issues that affect the bottom line of your FBO operations. If we happen to hit on a subject that you’d like to comment on, or if you want us to address a certain issue, please let us know by sending an e-mail.

One thing is for certain, we’ll add a little spice to your FBO life and maybe some sage advice along the way.

John Enticknap

John Enticknap founded Aviation Business Strategies Group in 2006 following a distinguished career in aviation fueling and FBO management, including as president of Mercury Air Centers. He is the author of 10 Steps to Building a Profitable FBO and developed NATA’s acclaimed FBO Success Seminar Series.

Ron Jackson

Ron Jackson is co-founder of Aviation Business Strategies Group and president of The Jackson Group, a PR agency specializing in FBO marketing and CSR training. He is the author of Mission Marketing: Creating Brand Value and co-author of Don’t Forget the Cheese!, the ultimate FBO Customer Service Experience.