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Elite Traveler – ET Insider – August 17, 2010

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ET Insider – August 17, 2010

Elite Traveler Insider –

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August 17, 2010

Elite Traveler Insider

Welcome to the latest issue of Elite Traveler Insider, the bi-weekly newsletter designed to update our top partners on trends in the private jet lifestyle. This information is provided to offer a better understanding of how to target these globetrotting elite travelers, their impact on your business and other trends that affect you. Remember, private jet travelers are paying up to $10,000 per hour to fly by private jet, so these super rich consumers could be and should be your best customer. We talk about them and how you can get more of them and more from them.

IN THIS ISSUE:

1. In June, Private Travel Continued Its Rebound

2. Trophy Houses Are Back and Selling in London

3. And The Sales Forecast in California Was All Sunny

4. Who’s Spending Money? People With Money! Some exampes

5. And Summer Spending by Elite Traveler readers

Not another magazine or newspaper in that stack of unread mail: With over six private jet trips every two months, that’s at least six chances for wealthy private jet travelers to see your advertisement in Elite Traveler. And even better, share it with friends on the jet!

1. In June, Private Travel Continued Its Rebound

According to ARGUS, looking at the year over year results (June 2010 vs. June 2009) private jet flights within North America were up 4.9% overall, with all operational category sectors showing positive growth. The fractional market had the strongest increase at 6.7%.

Looking at aircraft category results, the mid size cabin jet market segment showed the biggest increase at 10%, with small cabin aircraft also showing growth up 5.8% year over year. Reviewing individual market segments, two areas had double-digit increases over June 2009, Part 135 charter mid cabin aircraft and the fractional turbo props at 18.9% and 15.6% respectively.

Overall, the results show private jet travel is back in a strong way as the Super Rich have decided they are still, well, Super Rich. Chart below:

insiderAug17

With 41 trips per year, including 11 intercontinental trips and 3+ principal residences, we know where you’ll find elite travelers: in their private jets and in private jet terminals. It’s why we’ve invested in providing BPA audited circulation to private jets and private jet terminals in over 100 countries.

2. Trophy Houses Are Back and Selling in London

England is the second largest country for Elite Traveler’s circulation, out of the over 100 countries in which we are distributed and audited by BPA. And the good news for luxury purveyors is that high-end real estate is back in a big way, according to a recent piece by the BBC. According to the report: “The total value of $5 million-plus houses sold in the capital between April and June this year was $850 million, estate agency Savills said. “It is the second-highest quarterly figure ever recorded. The most lucrative three months previously was spring 2008, at the tail end of the boom.

In the first seven months of this year, $1.6 billion of homes worth $5 million-plus were sold in areas such as Kensington and Chelsea, Westminster, Camden, and Hammersmith and Fulham. Lucian Cook, director at Savills Research, said prime property would lead a more general market recovery. “We expect activity in London’s prime markets will ease in the second half of the year, and with that comes the prospect that prices will soften,” he said.

Last week the Standard reported that a penthouse at the One Hyde Park development was set to be sold for $140 million, making it possibly the dearest apartment in the world.

Spotting Fakes: How can you be sure that a publisher is really sending out the number of copies he or she says? How can you make sure they are actually putting copies on private jets? Ask for the BPA or ABC audit statement. You can find our BPA statement here.

3. And The Sales Forecast in California Was All Sunny

At Elite Traveler’s event last Friday at The Quail Lodge in Carmel, CA (during the week of Concours d’Elegance), two readers dropped over a quarter of a million dollars on a Jaguar XJL Supersport we were displaying. One reader actually called to a dealer based in his hometown to seal the deal on the spot. Or as we like to say, “you have to have the money before you can buy” and we know folks on private jets generally have the money.

That said, Robert Frank, The Wall Street Journal’s chronicler of the private jet lifestyle, wrote a great piece on the event which really underscores the benefits of Elite Traveler’s BPA-audited circulation worldwide, in over 100 countries, aboard private jets and in private jet terminals. The piece is below:

“The collectibles boom rages on, as a 1959 Ferrari sold for $7.26 million over the weekend. The sale was part of the Concours d’Elegance–the annual Woodstock for super-rich, exotic-car fanatics held in Pebble Beach, Calif. Auctioneer Gooding & Co. kicked off its two-day auction at the event with a 1959 Ferrari 250 GT LWB California Spider.

The sale price of $7.26 million, which includes the buyer’s premium, marked a new record for a LWB California Spider and easily met the early estimated range of $6 million to $8 million. It is too early to declare the weekend a success. We have yet to see results from the rest of the auction Sunday and today. Gooding is selling 135 cars, with about 17 expected to fetch $1 million or more. Along with the Ferrari 250 GT, the other top draw is a 1933 Alfa Romeo 8C 2300 Monza. Still, the Ferrari record bodes well for the market for hyper-priced collectible cars. Last year, Gooding sold a 1962 Ferrari 250 GT SWB California Spider for $5.11 million, and a 1933 Alfa 8C 2300 Drop Head Coupe for $4.1 million.

The number to beat this year is the auction total. Last year’s auction netted $50.7 million. Some may see the new highs in collectible car prices as yet another sign that the wealthy are once again impervious and oblivious to the troubles in the rest of the economy. Others may see it as a sign that the wealthy would rather put their money into real things they can enjoy rather than watch it erode in financial markets and hedge-fund fees. But there is probably a third-and perhaps stronger-force driving up collectibles markets these days. Demand from the expanding ranks of rich collectors overseas.”

Would you buy a diamond without a certificate? Would you fly on a plane that hadn’t been certified as safe to fly? Would you buy milk in the supermarket that didn’t have a ‘sell by’ date? Before you buy advertising, next time a publisher says they have distribution on private jets or in private jet terminals, ask for their Circulation statement from ABC or BPA. Ask for them to show you the number of copies going to private jet travelers. You can find our BPA statement here.

4. Who’s Spending Money? People With Money! Some examples:

For luxury brands and providers planning their fourth quarter media, my best advice with an uncertain economy is make sure the people you are targeting have Real Money, not just aspirations. The market of getting big purchases out of anyone with a household income of under $400,000 remains a slippery slope that could change with any dip in the market. At the same time (see Item One) private jet travelers, still doing exceptionally well financially, are back in full force.

So what are some of the things the wealthy are asking personal concierges to get for them as part of their private jet lifestyle? From a recent BBC report, excluding fees to the Concierge: – Chess match with a Grand Master – $1,000 – An elephant for a wedding – $10,000 – Having a top stylist accompany a New York shopping day – $8,000 – A drum and bass party with helicopter transfer – $25,000

With 41 trips per year, including 11 intercontinental trips and 3+ principal residences, we know where you’ll find elite travelers: in their private jets and in private jet terminals. It’s why we’ve invested in providing BPA audited circulation to private jets and private jet terminals in over 100 countries.

5. And Summer Spending by Elite Traveler readers:

* Mr. G. S. of New York, NY spent $2,900 on a Chanel dress

* Mr. A. P. of Baltimore MD spent $192,000 on a Mercedes Benz S320

* Mr. W. S. of Missoula, MT spent $6,000 on a stay at One&Only Palmilla

* Ms. A. G. of Morganville, NJ spent $30,000 staying in a suite at One&Only Palmilla

* Two readers purchased Jaguar XJ’s at our recent California event for a total of over $250,000 (see Item 3)

Not another magazine or newspaper in that stack of unread mail: With over six private jet trips every two months, that’s at least six chances for wealthy private jet travelers to see your advertisement in Elite Traveler. And even better, share it with friends on the jet!

All the best,

Douglas D. Gollan Group President and Editor-in-Chief

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