ET Insider – January 26, 2010

Elite Traveler Insider –

January 26, 2010

Elite Traveler Insider

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

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. Reach for the Rich: From Geneva, the Search for Elite Travelers

2. Sweet 16 for P. Diddy’s Son

3. Private Jets Drive Bahamas’ Vacation Rental Market

4. ABC News: Personal Bankruptcy, Foreclosures, Chapter 7 Jump 30%

5. Middle East Private Jet Market Grows

Over 90 percent of today’s Super Rich are Self Made and over 80 percent of the Super Rich have made their fortune in the past 10 years. Now is the best time to make sure they know your brand. 86% believe Elite Traveler is a good showcase for luxury products.

1. Reach for the Rich: From Geneva, the Search for Elite Travelers

While news about the economy in the U.S. and parts of Western Europe may range from hopeful to worrisome, the various watch fairs in Geneva last week showed that both large conglomerates and start-up entrepreneurs understand that the Ultra Wealthy flying by private jet still have money and are always attracted by unique ideas and concepts.

All of a sudden premium, luxury, fashion, prestige (take your pick) cell phones are looking more like a category and less like a lark. Perry Oosting, the evangelical CEO of Vertu who has been spreading the gospel on the category since he came into his post about a year ago, has a new follower in the flock.

As reported exclusively by Elitetraveler.com’s Jenn Sembler:

“Paris-based Celsius X VI II is planning to define the “prestige” phone market, as the founders have dubbed it, with the rollout of their first product at the upcoming Baselworld Fair this March, according to an exclusive preview for Elite Traveler.

The company was launched in 2006 by four co-founders-one of whom is Edouard Meylan, son of George-Henry Meylan, the former CEO of Audemars Piguet-and then found investors in Sofinnova Partners, AGF Private Equity and watchmaker Richard Mille to bring their creation to life.

The overall vision for the brand is to eventually create a fully mechanical phone that can harness the energy of the user to be completely energetically independent (so it would never have to be charged), and work in a way akin to how an automatic mechanical watch’s rotor uses the energy of the wearer’s movement to keep it ticking. They have already started on this development with the patented mechanism that winds the watch movement on the phone’s front every time the phone is opened and closed.

The product is being positioned as a “piece of art that communicates” and is not solely for the purpose of receiving phone calls, and therefore (the founders hope) will be relevant long after other phones are discarded. The flagship product will include two limited editions and possible unique pieces, a total of 50 pieces in all that are expected to be available shortly after the fair ends. The phones will retail for around $250,000 Euro (approximately $353,500 USD).”

The group follows Vertu, soon to launch Ulysse Nardin, Versace, Dior and several others who are trying to define the mobile phone market with status products.

Of course while the focus of the watch shows is mainly wristwatches, there are always some eye catching ideas being proposed that would fit better aboard a yacht or a very large jet. Two of these were also covered in Elitetraveler.com:

Panerai, who showed at SIHH, introduced the “Jupiterium” based on Galileo’s interpretation of the solar system. It was previously presented for the first time ever at the NobelMuseum in Stockholm, during installation of the exhibition Galileo’s Telescope-The Instrument that Changed the World. The Jupiterium shows the positions of the stars, the sun, the moon and Jupiter from the observer’s point of view on Earth, which is at the center as it was thought to be by Galileo. Jupiter’s system features the so-called “Medicean Planets,” namely the planet’s four main satellites, observed for the first time by Galileo Galilei through his telescope. The Jupiterium mechanism has a titanium base, powered by a perpetual calendar watch with a 40-day power reserve, and is comprised of a square wooden base that supports a glass sphere holding the Earth and planets on titanium arms. There are three creations in total but only one can be purchased by consumers. One is on display in Italy’s Institute and Museum of the History of Science in Florence, and Panerai is keeping one within the brand. The last and final piece retails for over $2 million USD.

Meanwhile, at the GTE, independent watch brand Louis Moinet displayed its “Meteoris” planetarium depicting the entire solar system (all known planets orbiting around the sun), along with four tourbillons. Rémy Chauvin, a mechanic who specializes in gears, created the planetarium based on a previous astronomical clock he designed and manufactured, which took 14 years to complete and is now in the WatchMuseum in Morteau, France. Based upon this previous feat, Chauvin was able to create Meteoris in roughly two years. Meteoris rotates at a faster speed to provide a better understanding of the solar system and this acceleration of the planets enables the Earth to rotate around the sun in 37 seconds instead of the usual 365 days. Each of the Louis Moinet tourbillons included with the piece contain material from legendary meteorites, including a meteorite from Mars; the oldest meteorite ever found on earth, Rosetta Stone; Itqiy, a mysterious asteroid that was formed near the sun; and a lunar meteorite. The entire planetarium plus the four tourbillon watches is selling for $4.9 million CHF (approximately $4.7 million USD).

Despite the current economic recession, both Officine Panerai and Louis Moinet unveiled multi-million dollar planetarium inventions during SIHH (Salon International de Haute Horlogerie) and the Geneva Time Exhibition this week in Geneva, both viewed by Elite Traveler.

Out of the Box: Looking for new and innovative ways to efficiently and cost-effectively target potential customers? Combine the only worldwide audited magazine aboard private jets, Elite Traveler, with an innovative destination specific campaign in private jet terminals, including events, and get to these consumers as they narrow their consideration set through Elitetraveler.com. You can find all the tools you need at www.elitetraveler.com/business.

2. Sweet 16 for P. Diddy’s Son

According to published reports, Diddy gave his son Justin Dior Combs a new silver Maybach for his birthday, USMagazine.com reported.

The teen opened his new gift at a lavish bash Saturday night at M2 Ultralounge club in New York, which was attended by Lil’ Kim, and Jersey Shore stars Paul “Pauly D” Delvechhio and Nicole “Snooki” Polizzi

In addition, Diddy gave the boy $10,000 to open up a bank account. Reportedly, Justin is donating that money to the Haiti relief effort.

“I’m just ecstatic right now,” Justin told the magazine. “Words can’t even describe how I feel. I’m so blessed and thankful for all of this.”

The Sweet 16 bash will be featured on an upcoming episode of MTV’s My Super Sweet 16.

While the world’s economy today is unsteady, one thing is for sure: The wealthy consumers flying aboard private jets are your best bet, and only Elite Traveler delivers these elite travelers to our advertisers through our BPA audited circulation aboard private jets in over 100 countries, including Russia, the UAE, Kuwait, Qatar, Bahrain, Oman, India, Singapore, Korea and China. All with one ad buy!

3. Private Jets Drive Bahamas’ Vacation Rental Market

According to local reports from The Bahamas, the popularity of vacation rentals in the nation surged by 79 percent last year, the greatest increase for any destination, with this trend expected to continue through 2010.

According to the article, “spokesperson Heather Whipps said Luxury Retreats specialized in high-end villa rentals, and saw an increase in requests coming in for the Caribbean region, inclusive of the Bahamas.

According to the company’s regional numbers, the Bahamas showed the top increase in interest with 79 percent, while Turks and Caicos showed a 14 percent increase.

“We expect our Bahamas villas to continue to do well in 2010.”

The company represents high-end properties in the Bahamas, including Plantation Cove, a $4,500 to $10,000 per night villa in western New Providence; Freeport Villa Two, a $15,000 to $30,000 per night villa on Millionaires row in Grand Bahama; and La Bougainvillea, a $400 to $1,000 per night Eleuthera villa.

According to a press release issued by Luxury Retreats, the use of private villas has been the fastest-growing segment of in the travel industry.

“In the company’s figures throughout 2009, and especially last quarter… Luxury Retreats Villa Rentals increased by 14 percent over 2008,” said the release. “There was a revenue boost of 50 percent during the same period.

Only Elite Traveler can guarantee you that your ad dollars are reaching wealthy consumers who are still spending. What do we mean? Our new June 2009 BPA Circulation statement breaks out where our magazine goes – 71 percent of our copies to private jets and private jet terminals, 14 percent to First Class lounges, 3 percent go to Sport Locker Room/Training Facilities and Yachts, etc. This means you know that your dollars are getting to consumers who are still traveling in style, and still spending money – not sitting home worried about the economy. It is a guarantee that your critical advertising dollars are reaching a lucrative target. It is a guarantee no other publisher can provide.

4. ABC News: Personal Bankruptcy, Foreclosures, Chapter 7 Jump 30%

One of the best benefits of Elite Traveler’s BPA audited circulation aboard private jets means that if consumers lose their money and are no longer on the jet, just as they are no longer luxury customers they are no longer readers of Elite Traveler. Our unique distribution means that unlike other magazines the audience you reach is still doing well and still spending (otherwise they wouldn’t be on a private jet). As this recession takes its toll on more formerly wealthy and Mass Affluent consumers, this is a more important point than ever. Read the report from ABC News below:

For nearly a decade, Gerard Young collected a six-figure salary as an account executive at an Orlando, Fla., public relations firm. But just over a year ago, as a recession raged and unemployment soared, Young lost his job and quickly found himself sinking into debt.

Three months ago, as creditors closed in on his home and car, Young filed for Chapter 7 bankruptcy in order to liquidate his assets to pay off some debts. “You never really think it could happen to you,” says Young, 46. “One day you’re out shopping for a house and enjoying your life and then the next thing you know you’re broke.”

The worst U.S. recession in a generation is sending personal bankruptcy rates soaring.

The number of Americans filing for personal bankruptcy rose by nearly a third in 2009, largely fueled by foreclosures and job losses, according to new figures released by National Bankruptcy Research Center, which compiles and analyzes bankruptcy data.

The group says personal bankruptcy filings reached 1.41 million last year, up 32 percent from 2008. That’s the highest level of consumer-bankruptcy filings since 2005. In December alone, 113,274 Americans filed for bankruptcy, a third higher than the same month a year earlier.

The findings also showed that Chapter 7 filings were up more than 42 percent as of November 2009, compared with the same period a year earlier. A Chapter 7 filing liquidates assets to pay off some debts and absolves the filers of others. Filings for Chapter 13, under which a filer must have income to repay debt, rose by 12 percent and made up less than a third of 2009 filings as of November.

Bankruptcy analysts expect matters to worsen again this year as the deepest economic downturn since the Great Depression continues to work its way through U.S. households.

“A combination of economic stress, including high debt loads, rising unemployment and unsustainable mortgage burdens, left many consumers with little choice but to seek the financial relief of bankruptcy,” Samuel J. Gerdano, executive director of the American Bankruptcy Institute, said.

Filings from 2008 showed more people with high-income and high-education levels resorted to bankruptcy petitions, according to an annual survey of consumer-bankruptcy filers’ demographics by the Institute for Financial Literacy, a nonprofit that provides bankruptcy-related counseling and education services.

Included in that group is former NFL quarterback Bernie Kosar. Although he made millions on the playing field, Kosar recently filed for Chapter 7, according to court papers. A court-appointed trustee will sell Kosar’s assets — listed at $9.2 million — and distribute the proceeds to his creditors. The bank filings show Kosar has $18.9 million in debt.

In the San Francisco Bay area, home to the affluent enclaves of Contra Costa and Alameda counties, the profile of those facing bankruptcy is extending deeper into the middle class.

In the Oakland division of U.S. Bankruptcy Court’s California Northern section, filings increased 59 percent; from 7,887 in 2008 to 12,564 in 2009.

In the San Francisco division, which includes San Francisco and San Mateo counties, filings increased 62 percent; from 2,579 in 2008 to 4,190 in 2009. Meanwhile, in the state of Georgia, one in 50 households declared bankruptcy in 2009 between January and November, leaving the state with the third-highest personal bankruptcy rate in the nation.

“For the first time in many, many years, you are seeing more educated people with high incomes turning to bankruptcy,” says Jeremy Richards, a bankruptcy attorney in Austin, Texas. “These were folks who have lost high-paying jobs and now find themselves in financial trouble.”

Chapter 7 of the bankruptcy code provides for “liquidation,” in which the debtor’s property is sold and the proceeds are distributed to creditors. The balance of the unsecured debt is discharged to give honest debtors a fresh start.

To file under Chapter 13, a person must have regular income. But the explosion of long-term unemployment has meant that many filing for bankruptcy today do not meet that standard.

While the world’s economy today is unsteady, one thing is for sure: The wealthy consumers flying aboard private jets are your best bet, and only Elite Traveler delivers these elite travelers to our advertisers through our BPA audited circulation aboard private jets in over 100 countries, including Russia, the UAE, Kuwait, Qatar, Bahrain, Oman, India, Singapore, Korea and China. All with one ad buy!

5. Middle East Private Jet Market Grows

In a region where the Airbus A380 has at least two owners eagerly awaiting private versions of the mega-jumbo, private jets come in three sizes: Big, Bigger and Huge. So while the number of total jets is not enormous, many of the jets are bigger than a New York apartment and the occupants use their flying chariots to globe hop and shop the world. (Elite Traveler has distribution throughout the region with copies to private jets and private jet terminals in the UAE, Saudi Arabia, Syria, Jordan, Lebanon, Kuwait and Bahrain.).

According to a recent piece in The Financial Times, Mark Pierotti, chief operating officer of AJA, a start-up executive airline, said there are about 380 private jets operating in the Middle East and North Africa.

AJA stands for Al Jaber Aviation and the start-up, which began operations last year, is wholly owned by a leading Abu Dhabi-based merchant family, one of the emirate’s biggest contractors.

Mr Pierotti is due to take delivery of 21 aircraft for a total outlay of $1 billion.

According to the FT, the aircraft range from the relatively modest 13-seat Legacy 600, built by Embraer of Brazil, which is capable of flying non-stop between Abu Dhabi and Paris, to the 32-seat Airbus A319 ACJ, which Mr Pierotti describes as “presidential”. Prices range from $6,000 an hour for the Legacy and between $15,000 and $18,000 an hour for the larger Airbus.

The company’s target markets range from individual business people to football teams, local potentates with large entourages, rock groups and African presidents.

Meanwhile in Bahrain, Qatar Airways’ corporate jet subsidiary Qatar Executive is showcasing one of its two Bombardier Challenger 605 aircraft at the first Bahrain International Air Show. Like Lufthansa, Swiss, Saudi, Korean Air and Delta Air Lines the Gulf carrier has a private jet division.

The two Bombardier Challenger aircraft, which are able to fly non-stop up to 4,000 nautical miles reaching destinations throughout Europe, Africa and Asia, complement a Bombardier Challenger 300, bringing Qatar Executive’s overall fleet size to currently three corporate jets.

Qatar Airways chief executive officer Akbar Al Baker, who also presides over Qatar Executive, said the airline was delighted to take part in the first aerospace industry event of 2010.

Since the creation of Qatar Executive, the subsidiary has received great response from customers to the new operation, well exceeding its expectations.

“We have experienced a steady stream of bookings and have, within the short time span we have been operating, already established a strong client base,” said Al Baker.

Driven by the robust economic climate in the Middle East, the region’s affluent and top executives of corporations have turned to corporate jet travel as a convenient and hassle free means of transport.

“Private jet travel is all about convenience, saving time and money, especially in the Middle East where economic activity is at a high. Efficient time management for top executives is a priority,” added Al Baker.

Qatar Executive enables corporate travelers to book an aircraft in as little as four hours before departure and check in 10 minutes prior to take-off.

The Bombardier Challenger 300 and 605 aircraft feature eight and 11 leather seats respectively, which recline into fully berthable sleeping compartments.

The interiors have premium fittings with plenty of space for meetings. Qatar Executive customers will use the VIP Terminal for departures and arrivals at Doha International Airport.

Forecasts show that the corporate market in the Middle East has grown at an average of 13 percent a year since 2000 and that this figure is expected to rise to between 15 and 20 percent until 2012.

“Tapping into this highly lucrative premium market segment and achieving growth is part of our long-term expansion strategy. The Middle East offers solid potential that will enable Qatar Executive to meet its ambitious targets,” said Al Baker. – Trade Arabia News Service

Out of the Box: Looking for new and innovative ways to efficiently and cost-effectively target potential customers? Combine the only worldwide audited magazine aboard private jets, Elite Traveler, with an innovative destination specific campaign in private jet terminals, including events, and get to these consumers as they narrow their consideration set through Elitetraveler.com. You can find all the tools you need at www.elitetraveler.com/business.