“The fractional customer is a different animal today than five years ago,” Mike Riegel of Aviation IQ affirmed. “Many were burned and learned and are a smarter group of people today,” he recounted.
Riegel is critical of the fractional ownership industry for not being sufficiently flexible to change with the times. “If the learning process doesn't occur in fractional, the providers will continue to lose money, and eventually their backers will either shed them or shut them down,” he said. “And if they don't wake up, the same thing that has happened in manufacturing will happen to them: New players will come in [e.g.,] that understand the market and eat them alive.”