Elite Traveler – ET Insider – January 15, 2008
ET Insider – January 15, 2008
Elite Traveler Insider –
January 15, 2008
Elite Traveler Insider
By Douglas D. Gollan, President and Editor-in-Chief, Elite Traveler Magazine
Happy 2008! Wishing you a happy and Healthy New Year – now it’s time to get back to business. With the U.S. economy slipping, now more than ever Super Rich elite travelers are the key to ensuring a successful year for your business. With readership of over 575,000 Super Rich men and women aboard private jets in over 100 countries worldwide, Elite Traveler brings you those consumers who are not cutting back, and in fact, according to the latest Prince Research, spending more than ever. From a media perspective, the core target reader needs a $1 million + Household Income.
ELITE TRAVELER READERS ARE YOUR BEST CUSTOMERS After reading about a Breguet Tourbillion in the November / December issue of Elite Traveler, a reader who is based between London, Paris and Tokyo purchased the $125,000 timepiece.
1. Netjets to Grow Capacity 29% in 2008 as Private Jet Travel Grows
Warren Buffett’s private jet company NetJets Europe knows that the credit crunch is not impacting its high spending customers. It is spending out $715 million to add 39 new luxury aircraft for its fleet.
NetJets – owned by the so-called Sage of Omaha’s conglomerate Berkshire Hathaway – has brought forward the order which will increase its fleet by 29 percent to satisfy Europeans’ growing appetite for private jet travel, according to The Telegraph of London.
NetJets marketing director Rob Dranitzke says more than 25 percent of FTSE250 companies now use the company, as do the vast majority of London’s investment banks. About 80 percent of customers are chief executives rushing to meetings. The remaining 20 percent are private clients – often hedge fund mangers, bankers and private equity types – who use the jets for luxury holiday travel.
The stuttering global economy might have been expected to hit demand for private jets, but business bigwigs’ appetite for luxury air travel seems unlimited. NetJets Europe says passenger numbers for 2007 were 17 per cent up on 2006 and it recruited 350 new pilots last year to cope.
The company believes it can ride out economic turbulence because private jet travel is now a must-have for cash-rich, time-poor chief executives.
YOUR BEST CUSTOMERS ARE HERE: Elite Traveler delivers more readers (318,000) with a $1 million + Household Income than Departures (34,000), Robb Report (30,000), Town and Country (47,000), Vanity Fair (44,000) and The Wall Street Journal (128,000) combined. Sources: Prince & Associates, MMR
2. Want Your Brand to Go to the Super Bowl?
The economy may be going down the tubes, but life for those flying by private jets the going is still, of course, elite. And with many consumers cutting back, making sure your brand is top of mind with our high spending private jet consumers is more critical than ever!
Elite Traveler is now offering you a unique opportunity to market to the largest gathering of private jet travelers in one place in the world – the Super Bowl, which will be held February 3, 2008 in Phoenix, Arizona.
Atlantic Aviation Deer Valley FBO (private jet terminal) will be the gateway for the elite coming to this world sport spectacular.
During the peak period for arrivals and departures, Feb. 1-4, signage on the exterior and interior of the terminal, courtesy car and car display opportunities, gift bag placement, vitrines showcasing timepieces and jewelry, and the ability to have a representative on-site to network with elite travelers are all possible.
Among the ideas for luxury marketers to gain the attention of these Super Rich consumers are: model displays of real estate developments and brochure placement in terminal and gift bags; luggage and fashion displays; vitrines to showcase watches and jewelry; outfitting of FBO staff in logo apparel; and anything creative you want to propose!
Sponsorships range from $15,000 to $150,000. For further information go to http://pr-dbetmg-elite-traveler.pantheonsite.io/business/luxus.html or email me at firstname.lastname@example.org.
SUPREME LUXURY 91% of Elite Traveler readers consider us “higher quality” than other magazines. Source: Prince & Associates
3. Super Rich fly high on Holiday Vacations
Say what you want about the economy, the Super Rich were flying high this past holiday season.
According to Flight Options, which sells fractional shares and jet cards for private jet flights, business was booming this past December. And where were their super rich customers headed in North America?
The top spot stayed with West Palm Beach, followed by gateway to Park City slopes Salt Lake City in Utah, year-round favorite Las Vegas, Naples on the West Coast of Florida, back to the East Side for Boca Raton, and then to the Gulf again with Sarasota in sixth place. Jacksonville was the fifth Florida airport in the Top 10, followed by Aspen and Grand Junction representing Colorado and in the 10th spot, Cabo San Lucas Mexico, where Dallas Cowboys quarterback was spotted with Jessica Simpson.
BULLSEYE FOR YOUR AD DOLLARS Only Elite Traveler delivers to luxury advertisers the Super Rich wherever in the world they happen to be via BPA audited distribution aboard private jets and mega-yachts in over 100 countries worldwide!
4. Unpaid Bills Increase as American Express Sees Downturn
Even American Express, with its base of Mass Affluent cardholders (consumers with a Household Income of $100,000 to $400,000) is seeing a cutback in consumer spending and an increase in defaults, according to a Wall Street Journal article. The company recently took a $440 million charge to account for bad debt. And a recent piece by the Associated Press noted Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come.
The Associated Press analysis of financial data from the country’s largest card issuers found that the greatest rise was among accounts more than 90 days in arrears.
According to the article, experts say these signs of the deterioration of finances of many households are partly a byproduct of the subprime mortgage crisis and could spell more trouble ahead for an already sputtering economy.
“Debt eventually leaks into other areas, whether it starts with the mortgage and goes to the credit card or vice versa,” said Cliff Tan, a visiting scholar at StanfordUniversity and an expert on credit risk. “We’re starting to see leaks now.”
The value of credit card accounts at least 30 days late jumped 26 percent to $17.3 billion in October from a year earlier at 17 large credit card trusts examined by the AP. That represented more than 4 percent of the total outstanding principal balances owed.
At the same time, defaults – when lenders essentially give up hope of ever being repaid and write off the debt – rose 18 percent to almost $961 million in October, according to filings made by the trusts with the Securities and Exchange Commission.
Serious delinquencies also are up sharply, the AP resort concluded: Some of the nation’s biggest lenders – including Advanta, GE Money Bank and HSBC – reported increases of 50 percent or more in the value of accounts that were at least 90 days delinquent when compared with the same period a year ago.
The AP analyzed data representing about 325 million individual accounts. Even after the recent spike in bad loans, the credit card business is still quite lucrative, thanks to interest rates that can run as high as 36 percent, plus late fees and other penalties.
Month to month data showed an even scarier story. Discover accounts 30 days or more delinquent jumped 25,716 from November 2006 and had increased 6,000 between October and November this year.
Bank of America Corp. had the highest delinquency volume, with overdue accounts valued at $5 billion. Bank of America defaults in October were almost 200 percent higher than in October 2006.
Many economists expect delinquencies and defaults to rise further after the holiday shopping season, the AP said.
“You’re looking at more and more distress – consumers desperately trying to preserve their credit lines, but there’s nowhere else to go,” said Robert Manning, director of the Center for Consumer Financial Services at Rochester Institute of Technology. “It’s like a game of dominoes.”
What’s the answer for luxury marketers? Private jet travel is booming, and private jet travelers offer luxury marketers a targeted way to increase sales from consumers who are not cutting back.
WOW The Average Annual Household Income of the Elite Traveler reader is $5.3 million and Average Age is 41. Source: Prince & Associates
5. Take a Look at What Elite Travelers are Spending
With an average of over four homes valued at more than $2 million, it is easier to find elite travelers aboard their private jet. However, that doesn’t stop our Super Rich readers from making their homes into castles, or in some cases, castles into homes.
Some examples of the latest in high end home decoration, according to The Times of London:
- Lacquered maple front doors that are armour-plated
- A limestone atrium with a sweeping $1.5 million staircase and mirrored walls
- A reception room has a $200,000, hand-carved, full-height fireplace, a replica of one in Cliveden.
- Nightclubs, cinemas and an indoor swimming pools decorated with gold-plated mosaic tiles.
- Gym with steam room, hair salon, sauna and spa bath.
- Guest cloakroom sports Ambarino marble and lizard-effect wall coverings.
- Jewel-encrusted showers and spa rooms
- Leather-clad, underlit onyx bars, for entertaining at home
- Walk-in private wine cellars that can hold 2,000 bottles, with separate temperature-controlled storage for jeroboams of Cristal
- Temperature-controlled “fur fridges”, for storing vintage mink; and bespoke wardrobe space, with matching, revolving shoe cabinets measured according to heel height for your Manolo Blahniks, Jimmy Choos and Christian Louboutins
- The floor of the atrium of a yacht, covered with embossed crocodile-skin leather.
- A cloakroom created entirely from vintage leather Louis Vuitton trunks and a 1930s-style boudoir with hand-embroidered wallpaper.
- Gold-tinted glass or hand-sewn, hand-painted silk wall panels
- Hand-beaded cushions at $2,000 each
- Temperature-controlled underground garage. Walls are leather-clad, to prevent scratches
In fact, elite travelers pay as much as $750 to $1,500 per square foot just for design.