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Elite Traveler – ET Insider – January 24, 2012

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ET Insider – January 24, 2012

Elite Traveler Insider –

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January 24, 2012

Elite Traveler Insider

By Douglas D. Gollan, President and Editor-in-Chief, Elite Traveler Magazine  

More than ever private jet travelers, or elite travelers as we like to call them, are the most lucrative market for luxury brands and service providers.  With readers spending $10,000 per hour to fly privately, the over 600,000 readers Elite Traveler reaches each issue provide you a great way to make sure your message is in front of consumers who have the money to be good customers.  With our Asia Edition, Elite Traveler Superyachts, our over 60 Elite Traveler Destination Guides at Elitetraveler.com, our global database of private jet owners and our award-winning custom marketing team, we would welcome the opportunity to be of help to you in making sure you get a bigger share of our reader spending.

With a Net Worth of more than $25 trillion, I hope you will agree elite travelers should be a key target for your marketing!

In this issue:

1. Where Can You Find Rich Russians? Try London, New York and Miami

2. The New York Times: About That Top 1 Percent…Perception/Reality

3. In Great Britain, Expensive Property Gains

4. So You Are Having Trouble Keeping Up With Your Car Payments?

5. The Independent: Super Rich Traveling Luxury Consumers Raise Richemont

1. Where Can You Find Rich Russians? Try London, New York and Miami

A recent report in the British papers noted there is a tremendous amount of Russian money headed out of Russia as Ultra-High Net Worth nationals’ top priority has become:  “Where do I find a safe haven for all of that money?”

According to the report, many have been choosing to invest in prime real estate.  Russia Today reported that a Russian billionaire spent $88 million for a 4-bedroom apartment on Central Park West in New York City.

In Miami Beach, the owner of the Russian Standard Bank and Russian Standard Vodka paid $25 million for an estate-the most expensive home purchase in the city since 2006.  The same thing is happening in London – and this has sent property prices soaring.

Of course if you want UHNW Russians as your customer whether they are in Moscow, New York, Miami, London or in the South of France during the summer, only one publication provides BPA audited reach to these highly desirable consumers:  Elite Traveler.  Our BPA audited distribution in over 100 countries mean your ad dollars get to your best prospects.

============================================================ ONLY ELITE TRAVELER – Elite Traveler is the ONLY publication targeting and reaching private jet travelers to have its circulation successfully audited.  View our BPA statement here. ============================================================

2. The New York Times:  About That Top 1 Percent…Perception/Reality…

A recent New York Times article noted that when media talks about the Top 1 Percent, it “conjures images of Wall Street bosses chauffeured from manse to Manhattan, and of fat cats with armies of lobbyists at the ready.”

As we have always noted, it is a much more diverse and thus from a media perspective, harder to reach audience.  The New York Times notes,  “But in reality it is a far larger and more varied group, one that includes podiatrists and actuaries, executives and entrepreneurs, the self-made and the silver spoon set.”

Another point often missed is the geographic diversity.  The New York Times noted, “They are clustered not just in New York and Los Angeles, but also in Denver and Dallas.”  UHNW Researcher Wealth-x, as we previously reported, called the U.S. “a nation of concentrated pockets of wealth.”  In fact, 35 percent of America’s UHNWs are spread across states 11 through 50 in wealth rankings.

The key point:  For marketers targeting UHNWs where adding just a couple dozen new customers can mean a sales spike, virtually every state has significant potential.  Wealth-X notes every state except Alaska, Delaware and North Dakota have more than 100 ultra-high-net-worth families.  UHNW is defined as net investible assets of at least $30 million, or in other words, heavy users of luxury goods from five-star resorts to complicated watches and diamond encrusted jewelry and $3,000 handbags.

How much does one need to earn – in household income – to make the top 1 percent?  There are two measures – without capital gains and including capital gains.  The bottom is $380,000 based on IRS Tax Data; however, taking into account the Federal Reserve’s Survey of Consumer Finances which includes capital gains, one needs to earn at least $690,000 to join the Top 1 percent club.

In terms of buying power, the top 1 percent of earners in a given year receive about 20 percent country’s pretax income, about double their share from 30 years ago. According to The Times, they accounted for about 30 percent of philanthropic giving.

They are not the idle rich, the article points out.  Ninety-nine percent work at least 50 hours per week – one reason that explains their preference for time saving private jets and underscores the fact that the private jet is their living room, making 41 trips per year, over 100 flights and over 11 intercontinental trips.  In other words, as we have proven over our 11 years, Elite Traveler is the best way to reach them in a targeted, efficient manner.

Did you know Elite Traveler has the lowest CPM (Cost Per Thousand) to reach consumers who make at least $400,000?

Another interesting factoid:  “The 1 percent has a different professional makeup in different cities. Nationally, for example, doctors are more likely than any other profession to be in the 1 percent. “But in Macon, Ga., your surgeon is far more likely to make the local cut than in Manhattan, where financial managers and bankers have crowded doctors off the dance floor.”

Over 90 percent of the Top 1 percent are self employed – a similar make-up of private jet owners and users:  The Times quotes David Mejias, a divorce and personal injury lawyer who once served as a Democratic legislator for Nassau County, said that the system everywhere was skewed in favor of the self-employed and business owners who could deduct part of the cost of their cars, trips, dinners and even collectibles like art.  “Not only do we make more money, but if you do a lifestyle analysis, we make a lot more money,” he said. “Before we even get paid, most of our life has been paid for already.”

============================================================ ONLY ELITE TRAVELER – Elite Traveler is the ONLY publication in the world delivering 400,000+ readers with a Household Income of $1 million + ============================================================

3. In Great Britain, Expensive Property Gains…

From the website mortgages.co.uk, a recent article noted, “A new divide is developing in the property market – but this time it’s not between the north and south, but between the home of the rich and the super-rich, the latest Knight Frank Prime Country House Index suggests.”

According to the report, in the final quarter of last year, prime country house prices fell by 1.7% and the annual fall was 3.1%. But top country homes, those which command price tags of £5 million or more, rose by 0.2% in the final quarter of the year and by 1.2% for the whole year.

Adding together super-prime and prime country home prices, values are 3% higher than at their low point in June 2009. The survey said property prices in the home counties were the most resilient, down 1% on the year. In contrast, prices in the north-west were 10% down on the year.

Grainne Gilmore, head of UK residential research, comments: “Overseas buyers, who are very active in the Prime Central London market, are also interested in larger properties just outside the Capital, especially those near the best schools, supporting prices.  “Domestic buyers moving out of Prime Central London, where prices have reached record highs, are also key players in this market.”

The United Kingdom is the second largest market for Elite Traveler’s private jet distribution as a crossroads and shopping mecca for the world’s super rich.  So unlike single country media, your one ad placement gets you the UHNW private jet set in over 100 countries, including the UK, US, Russia, Saudi Arabia, China, Brazil and India to start the list.

 

============================================================ ONLY ELITE TRAVELER – Elite Traveler is the ONLY publication targeting private jet travelers with an independent editorial and design team, original photography, award-winning editors, designers and photographers. ============================================================

4. So You Are Having Trouble Keeping Up With Your Car Payments?

A recent survey of Britons showed over 80 percent believe the economy is in trouble.  Housing foreclosures continue to make headlines.  However, The Times of London noted, British ultra wealthy parents are paying up to $1,500 per hour for ‘super tutors.’

The article notes, “Some of these tutors are in such demand that they have year-long waiting lists. This new breed of highly paid teachers are almost all Oxbridge graduates and between them they boast an array of specialist skills.  Some are fluent in several languages, one is a professional writer and one of them has gained an international memory award. Their fame has been spread by word of mouth among the super-rich.  Among their clients are children as young as three whose parents are desperate to get them into the reception classes of the top preparatory schools.

“More commonly the tutors are hired to help children from the age of 11 who are struggling with their school work, or to help them get into the best universities. The phenomenon of the ‘super-tutors’ who can charge such high hourly rates started in New York and Hong Kong, where some have almost become celebrities. Their faces are featured on billboards and an hour of their time can command four-figure fees.”

============================================================ ONLY ELITE TRAVELER – Elite Traveler is the ONLY publication that delivers UHNW consumers on private jets from more than 100 countries with a single ad. ============================================================

5. The Independent:  Super Rich Traveling Luxury Consumers Raise Richemont… The following excerpt appeared in the UK’s Independent.  We like global elite travelers, and apparently so does Richemont:

“Expensive watches and jewellery such as the $20,000 (£13,000) Altiplano watch have helped the Swiss luxury goods group Richemont bring in sales of €2.6bn (£2.2bn) in the last quarter. The luxury goods sector remains one of the strongest globally as the super wealthy keep spending in the face of wider economic turmoil.

Sales for the three months to the end of December were up by 24 per cent from €2.11bn on a year earlier, beating analysts’ expectations.  Johann Rupert, the executive chairman and group chief executive officer, said: “The group’s overall performance remains solid. Operating profit for the full year will be significantly higher than last year.”

Richemont, which owns some of the biggest jewellery and watch brands including Cartier, Jaeger-LeCoultre and Piaget, said growth was solid across all regions, with Asia-Pacific the strongest.

Sales growth in Europe benefited from what experts have dubbed TLC, the “travelling luxury consumer”.

============================================================ ONLY ELITE TRAVELER – Elite Traveler is the ONLY publication targeting and reaching private jet travelers to have its circulation successfully audited. View our BPA statement here. ============================================================

6. In Oz, Top 1 Percent Doubles Its Take…

Australia’s top 1 per cent of earners now take twice as big a slice of national income as they did three decades ago, new research on the widening gap between the nation’s rich and poor shows.

And the share raked in by the super rich – the top 0.1 percent of earners – has grown even more rapidly, increasing almost fourfold since 1981.

The research, by federal MP and economist Andrew Leigh, also found that while the salaries of business chiefs have soared, politicians and senior public servants are paid much less now, relative to the average wage, than they were early last century.  Dr Leigh said Australia’s top 1 percent of earners had 4.6 percent of the nation’s income in 1981, but that share rose to 10.1.

============================================================ ONLY ELITE TRAVELER – Elite Traveler is the ONLY publication in the world delivering 400,000+ readers with a Household Income of $1 million + ============================================================

7. Aspen Records 300 + Private Jet Flights in a Single Day…

A week ago Monday was the second busiest day in the history of Sardy Field for planes arriving to and departing from the airport, according to the Aspen Daily News.

There were at least 341 flights that took off or landed at the airport on Jan. 2, said Greg Dyer, support manager for airspace and procedures at the Denver Air Route Traffic Control Center for the Federal Aviation Administration. Jan. 2, 2011 holds the record with 370 aircraft flying in and out of Sardy Field.

The majority of air traffic on Monday was private jets, with maybe 30 or so commercial flights departing and arriving at the Aspen/Pitkin County Airport.

In other words 10 private jets for every commercial flight and lots of copies of Elite Traveler!

============================================================ ONLY ELITE TRAVELER – Elite Traveler is the ONLY publication targeting and reaching private jet travelers to have its circulation successfully audited. View our BPA statement here. ============================================================

All the best,

Douglas D. Gollan Group President and Editor-in-Chief Elite Traveler, the private jet lifestyle magazine Elite Traveler Superyachts, the superyacht lifestyle magazine Elite Traveler Asia, Asia’s private jet lifestyle magazine Elitetraveler.com, the private jet lifestyle online Elite Traveler Update, our weekly e-Newsletter to private jet owners worldwide

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