The $100,000 Problem: Why Your FBO Is Leaving Money on the Ramp

Last month, a mid-size FBO discovered they were undercharging transient aircraft by an average of 40%. The fix? A simple data-driven pricing approach that increased monthly revenue by $18,000—with zero additional overhead.

Yet most FBOs still price transient fees the same way they did in 1995: gut feeling, competitor guessing, and crossing fingers. In an industry where fuel margins are shrinking and operational costs keep climbing, this outdated approach is costing serious money.

The Broken System Most FBOs Use

Walk into any FBO manager's office and ask how they set transient fees. You'll hear variations of:

• "We charge what everyone else charges"
• "It's based on what the market can bear"
• "We've always done $X for overnight parking"

The problem? None of these approaches account for your actual costs, demand patterns, or revenue optimization opportunities.

According to FAA guidance on FBO pricing practices, effective fee structures should align with the actual cost of services provided and infrastructure impact. Yet industry surveys show 73% of FBOs admit their transient pricing is "somewhat arbitrary."

Different aircraft types require vastly different ramp resources—but most FBOs charge flat rates

What You're Actually Losing

Here's the math that should wake up every FBO general manager:

Scenario: Typical 50,000 sq ft ramp FBO

• 15 transient aircraft per day average
• Current flat rate: $25 overnight parking
• Mix: 40% light jets, 35% mid-size, 20% heavy jets, 5% turboprops

With optimized pricing by aircraft category:

• Light jets (Citation CJ series): $35
• Mid-size (Hawker 800, Learjet 60): $55
• Heavy jets (Gulfstream, Global Express): $85
• Turboprops: $20

Monthly revenue increase: $14,250

That's $171,000 annually from better pricing alone. No additional services, no new customers—just charging appropriately for the resources each aircraft type consumes.

But the real money is in dynamic pricing based on demand patterns. Peak travel days (Thursday-Sunday) often see 200-300% higher demand than mid-week. Yet most FBOs charge the same rate regardless.

The Data-Driven Approach That Works

Smart FBOs are moving beyond guesswork to systematic pricing strategies based on three key factors:

1. Infrastructure Impact Pricing

Different aircraft impose vastly different costs on your operation:

• Ramp space consumption: A G650 needs 3x the space of a Citation CJ3
• Ground handling complexity: Heavy jets require specialized tugs and more labor
• Fuel volume potential: Larger aircraft typically purchase more fuel (and represent larger waiver thresholds)

Weight-based pricing structures, similar to those used for landing fees, create fairness while maximizing revenue. The most effective approach uses Maximum Takeoff Weight (MTOW) tiers:

• Under 12,500 lbs MTOW: Base rate
• 12,500-41,000 lbs: 1.5x base rate
• Over 41,000 lbs: 2x base rate

2. Demand-Based Pricing

Your ramp isn't equally valuable 24/7. Premium pricing during high-demand periods can increase revenue while managing congestion:

• Peak days (Thu-Sun): +25% premium
• Major events/holidays: +50% premium
• Off-peak incentives: 15% discount Tuesday-Wednesday

A Florida FBO implementing this strategy saw 31% revenue increase during snowbird season while actually reducing congestion through better demand distribution.

Peak demand periods offer premium pricing opportunities most FBOs ignore

3. Service-Tier Pricing

Not all transient customers need the same service level. Create pricing tiers that capture willingness to pay:

Basic Tier: Standard ramp parking, fuel available Premium Tier: Preferred parking spots, expedited service, crew car VIP Tier: Hangar parking when available, concierge services, catering coordination

This approach serves multiple markets while capturing additional revenue from customers willing to pay for premium service.

Implementation: Your 30-Day Action Plan

Week 1: Data Collection

• Track current transient mix by aircraft type
• Document seasonal demand patterns
• Analyze competitor pricing (but don't copy blindly)
• Calculate actual service costs by aircraft category

Week 2: Pricing Strategy Development

• Design weight-based fee structure
• Set peak/off-peak multipliers
• Create service tier options
• Model revenue impact scenarios

Week 3: System Setup

• Update pricing in your FBO management system
• Train staff on new structure and rationale
• Prepare customer communication materials
• Set up tracking for key metrics

Week 4: Launch and Monitor

• Implement new pricing with 30-day notice to regular customers
• Track revenue, utilization, and customer feedback
• Refine based on initial results

Industry data shows FBOs implementing structured transient fee optimization see average revenue increases of 15-25% within 90 days, with customer satisfaction remaining stable when changes are clearly communicated.

The Bigger Picture

Optimized transient fee pricing is just the beginning. The same data-driven approach transforms every aspect of FBO operations—from hangar space allocation to fuel pricing strategies to staffing optimization.

Modern FBO management isn't about gut feelings anymore. It's about using data to maximize every square foot, every customer interaction, and every revenue opportunity. The FBOs thriving in today's competitive environment are those that embrace systematic optimization across all operations.

Ready to stop leaving money on the ramp? Start by auditing your current transient fee structure against actual costs and demand patterns. The results might surprise you—and your accountant will definitely thank you.