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Elite Traveler – ET Insider – July 14, 2009

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ET Insider – July 14, 2009

Elite Traveler Insider –

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July 14, 2009

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. Who’s Still Spending? Forbes Says Rich People

2. An Investment Your Brand Deserves

3. Private Jet Travel Grows in the Middle East

4. Slow, Long Recovery for Mass Affluent: Unity Marketing

5. Was Your Company in Sun Valley? Maybe…

6. More Elite Traveler Success Stories

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. Who’s Still Spending? Forbes Says Rich People

While the readers of Forbes may only have a Median HHI of $162,000, a recent article showed that rich people are still spending and partying. And for your next media plan, remember that Elite Traveler delivers more $1 million dollar earners (407,000 every issue) than Departures (46,000), Robb Report (29,000), Forbes (45,000), The New York Times (125,000) and The Wall Street Journal (128,000) combined!

The following article is from Forbes.com:

Legendary Parties

Many Americans would be happy with a barbecue on the Fourth of July and a big cake on their birthday. Hot dogs, hamburgers and beer will usually do the trick.

But billionaires have a bigger budget for entertaining their friends and family–and when the richest people in the world decide to have a party, they usually flaunt their wealth.

Investing titan Ronald Perelman throws at least two big parties a year, each famous for its lavish food, wine and celebrity guest list. Perelman holds an ultra-exclusive Fourth of July event at his plush East Hampton estate on Long Island and an opulent New Year’s Eve party that doubles as his birthday bash (he was born on Jan. 1, 1943).

Perelman’s birthday party has traditionally been held in the Caribbean paradise of St. Barth’s aboard his mammoth 188-foot yacht. (He recently sold the boat for an even larger vessel.)

Usually Perelman brings in someone famous to sing “Happy Birthday”–Barry Manilow sang for his 60th in 2003. Guests have included Microsoft billionaire Paul Allen, actors Denzel Washington and Eddie Murphy and rock star Jon Bon Jovi.

In 2007 British retail tycoon Philip Green treated 100 of his closest friends to a surprise flight to the Maldives for his 55th birthday. The invitation reportedly instructed friends to “pack your shorts and be prepared for a long-haul flight.”

The five-day event in the lush Indian Ocean enclave featured 3,000 bottles of champagne, dancers from around the world and an impressive fireworks display to cap off the soiree.

Private equity maven David Bonderman stunned his friends by hiring John Mellencamp and The Rolling Stones to rock out at the Hard Rock Hotel and Casino in Las Vegas for his 60th birthday party. Comedian Robin Williams was brought in to entertain guests between acts.

The price tag for Bonderman’s evening was $7 million, making it one of the most expensive private concerts ever held. To keep the riffraff from infiltrating the gig, the mogul reportedly had a private staircase installed in the venue.

Russian banking magnate Andrey Melnichenko also enjoys indulging in expensive entertainment. Melnichenko paid Christina Aguilera and Whitney Houston to serenade him and his wife, Aleksandra, a former Miss Yugoslavia, in France in 2005. Two years later he hired Jennifer Lopez to sing at Aleksandra’s 30th birthday party.

Perhaps the pinnacle of lavish parties was the launch of the $1.5 billion Atlantis Resort in Dubai last November. Held by Sheikh Mohammed, the billionaire ruler of Dubai, the $20 million spectacle featured appearances by celebrities Michael Jordan, Robert De Niro and Lindsay Lohan.

Guests of the event dined on nearly two tons of lobster prepared by legion of chefs (one per every four guests). The event also included a $3 million fireworks display that involved thousands of skyrockets launched from an array of 700 launching pads.

While most billionaires like to flaunt their wealth, others take pains to keep their names out of the gossip pages while throwing ridiculous parties.

Example: One unknown plutocrat reportedly paid The Eagles $6 million to play one song, “Hotel California,” at a bash in New York City. It was likely the most expensive performance in history–the band earned almost $1 million a minute.

Elite Traveler’s BPA audited circulation aboard private jets and mega-yachts in over 100 countries means your ad is guaranteed to reach the highest spending luxury audience in the world no matter where they are from and where they happen to be today – each issue is read by 407,000 readers with a Household Income of $1 million +, the highest of any magazine or newspaper in the world! Sources: 2007 Prince ET/MMR for others

2. An Investment Your Brand Deserves

Is advertising an expense or an investment? When it is reaching your target audience it is an investment, planting the groundwork for future sales by creating awareness and interest.

So in these times of squeezed budgets, what is the investment you need to make sure your brand is front and center with over 400,000 readers who make at least $1 million in HHI?

With a non-bleed Four-Color ad page at $36,325, your investment is just $605.42 per day over the two-month shelf life of each issue of Elite Traveler.

Compared to daily newspapers or Mass Affluent magazines where as much of 90 percent of the readership can’t buy your product, I truly believe an investment in Elite Traveler should be a given in any media plan!

And what’s more, by advertising in Elite Traveler you are succinctly telling the prospect that your product belongs in their private jet lifestyle!

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 Jet Travel Grows in the Middle East

According to International Air Charter (IAC), a large independent private jet charter broker, growth in private aviation in the Middle East will be in the 15 to 20 percent range this year. This growth will be driven strongly by the increasing use of charter jets by the region’s wealthy who favor it over commercial airline services.

In 2008, IAC grew 40 per cent.

IAC has a strong client base among ruling families and chief executives – a base that is increasing, according to the company.

“The Middle East has emerged as the new frontier for our growth initiatives as an increasing number of the region’s elite and affluent are moving to our charter jet services as a convenient means of transport. We have particularly noted a significant increase in traffic between the Middle East and Europe and we intend to leverage our strong presence in key European destinations,” said Elie Abdo, IAC managing partner, Middle East.

Statistics from the Center for Asia Pacific Aviation (CAPA) show that the corporate jet market here in the Middle East has grown an average of 13 percent every year over the last nine years.

In 2000 there were 200 corporate jets based in the Middle East. This figure has rocketed in size to reach 450 in 2008 and further growth is estimated over the next few years.

Elite Traveler’s BPA audited circulation aboard private jets and mega-yachts in over 100 countries means your ad is guaranteed to reach the highest spending luxury audience in the world no matter where they are from and where they happen to be today – each issue is read by 407,000 readers with a Household Income of $1 million +, the highest of any magazine or newspaper in the world! Sources: 2007 Prince ET/MMR for others.

4. Slow, Long Recovery for Mass Affluent: Unity Marketing

In a recent survey of the Mass Affluent, The Luxury Report 2009: The Ultimate Guide to the Luxury Consumer Market, noted analyst Pam Danziger focused on consumers who were previously big luxury spenders as part of the Mass Affluent group.

Participants were affluent and highly engaged luxury shoppers from Beverly Hills who participated in a series of focus groups. (The location was chosen because it is considered ‘ground zero’ for the conspicuous consumption lifestyle.) The qualitative research was followed by a quantitative survey in April 2009 among 1,041 affluent consumers (average income $204,900). Findings paint a ‘good, bad, and ugly’ picture for the luxury industry, including:

    • The recession has dramatically curtailed affluent consumers’ willingness to spend.

 

  • Mass Affluents are responding to the current economic crisis by taking time off from spending haphazardly or impulsively.

 

 

  • Even after the economy improves, Mass Affluent consumers won’t go back to buying luxury like they used to.

 

Of course, if this research is getting you down, remember Elite Traveler’s BPA audited distribution aboard private jets worldwide is the best way to ensure your marketing message is getting to consumers who are still spending!

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. Was Your Company In Sun Valley? Maybe…

If you ran an ad in the July/August issue of Elite Traveler, you were front and center with the over 260 media and related moguls who attended last week’s Allen & Co. conference, thanks to Sun Valley’s Atlantic Aviation FBO being one of Elite Traveler’s more than 4,000 private jet distribution points! Yes, that’s right, over 4,000 private jet related distribution points in over 100 countries means wherever that Super Rich target customer happens to be, Elite Traveler gets your message to them in the luxury venue of a private jet.

So who were some of the Who’s Who at the Allen & Co. conclave?

According to reports, included this year were Cleveland Cavaliers’ LeBron James, Bill Gates, Warren Buffett, Time Warner CEO Jeff Bewkes, Sumner Redstone, Sergey Brin, Mark Zuckerberg and Newark Mayor Cory Booker.

According to one article, “The Murdochs (as in Rupert) are having a mini-family reunion, with oldest son Lachlan expected to pop in to visit with his father, News Corp. Chairman Rupert Murdoch, and younger brother and latest heir apparent, James. In fact, News Corp. may be the most well-represented company at the conference. Besides Rupert and James Murdoch, new Chief Operating Officer Chase Carey is also on the list, as is Jonathan Miller, new chairman and chief executive of the company’s digital media units, and Owen Van Natta, chief executive of MySpace. Ex-COO Peter Chernin is also expected to be on the grounds, albeit as a mere producer nowadays.

“All four major sports pro commissioners are usually there as well.

“In between rafting, knitting, yoga, chess and bridge (Buffett’s a big bridge player), big deals are known to have been hatched during the conference’s 26-year history. The most famous marriage with roots in Sun Valley was Disney’s deal to buy Capital Cities/ABC in 1995, which came out of a random meeting in the parking lot between then-Disney CEO Michael Eisner; CapCities board member Buffett; and the company’s CEO, Tom Murphy.

“Allen & Co. has been known to spend as much as $10 million on the festivities in the past.

“While Allen & Co. tries to discourage media scrutiny, the firm isn’t above using big-name journalists to jazz up the program. Among the more famous scribes and TV personalities invited to take part this time around are the New Yorker’s Ken Auletta, the New York Times’ Thomas Friedman, Washington Post columnist David Ignatius and CNBC’s Erin Burnett. For a few years, celebrity photographer Annie Leibovitz would shoot the event for Vanity Fair.

“The conference is still relatively short on women. The highest profile female attendees are Susan Decker, the ex-Yahoo president, Hearst Magazines chief Cathie Black and fashionista Diane von Furstenburg (Mrs. Barry Diller).

“And they’re really short on basketball players. LeBron will be challenged to put together a good pick-up game out there.”

Elite Traveler’s BPA audited circulation aboard private jets and mega-yachts in over 100 countries means your ad is guaranteed to reach the highest spending luxury audience in the world no matter where they are from and where they happen to be today – each issue is read by 407,000 readers with a Household Income of $1 million +, the highest of any magazine or newspaper in the world! Sources: 2007 Prince ET/MMR for others.

6. More Elite Traveler Success Stories

While the economy may be sputtering readers of Elite Traveler, the private jet lifestyle magazine, and Elitetraveler.com, the private jet lifestyle online, keep spending. Make sure your media plan includes these wealthy readers!

Mr. R. H. from Jacksonville, FL spent $10,000 on private jet travel with AvantAir

Ms. R. B. of New York, NY spent $5,250 on Cartier Tank Francaise watch

Ms. S. C. of New York, NY spent $3,200 on a David Yurman Cordelia bracelet

Mr. T. M. of Doral, FL spent $200,000 for Font Designs to landscape his Florida property

Mr. G. S. of New York, NY spent over $6,000 on at the Four Seasons Hong Kong

Mr. J. E. of Wauconda, IL spent $3,800 at the Four Seasons Cairo.

Mr. G. S. of New York, NY spent over $50,000 on travel to and from New York, Seoul, and Shanghai with Korean Air.

Mr. J. E. of Wauconda, IL spent $11,000 on a Lufthansa flight from Chicago to Egypt

Mr. D. O. of Jersey City, NJ spent $2,000 on a hotel stay at the Mandarin Oriental Washington, DC.

Ms. C. B. of Minneapolis, MN spent $3,200 on a Mikimoto Pearl necklace

Ms. S. T. of Fort Lee, NJ spent $2,240 on a Mikimoto Pearl bracelet and earrings

Mr. S. P. of Laguna Hills, CA spent $2,000 on a 3-day stay at the Miraval Resort

Mr. D. B. of Cayucos, CA spent over $4,000 on a 5-day stay at the Miraval Resort

Mr. J. H. of San Antonio, TX spent $5,000 on men’s clothing at a Ralph Lauren boutique

Mr. D. G. of West New York, NJ spent $20,000 on a Roger Dubuis Excalibur watch

Mr. S. L. of Oakley, CA spent $7,500 on a Rolex Yachtmaster watch

Mr. Z. M. of Pleasant Grove, UT spent $3,950 on Stefano Ricci Cufflinks

Mr. N. I. of Alexandria, VA spent $28,000 on a Tiffany ring

Mr. W. T. Northbrook, IL spent $11,000 on a Ulysse Nardin watch

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