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Elite Traveler – ET Insider – June 10, 2008

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ET Insider – June 10, 2008

Elite Traveler Insider –

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June 10, 2008

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.

CONTENTS:

1. Private Jet Growth Continues with Big Jets Leading the Way

2. $300,000 for A Coffee Table? For Brad, It’s a Penny in a Pitt

3. More Bad News On Unemployment / Mortgages

4. LUXUS Expands Private Jet Terminal Billboard Network

5. Mass Affluent Find Themselves Strapped and In A Corner

6. What The Private Jet Community Is Saying About Elite Traveler

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. Private Jet Growth Continues with Big Jets Leading the Way

Last week’s news from the U.S. airlines had United Airlines and Continental Airlines announcing plans to shrink their fleets and decrease flight by between 10 and 20 percent. In other words: higher fares, less service and fewer flights.

Yet at the same time the private jet business is growing faster than ever, and interestingly one of the fastest growth areas is big jets, ranging from commercial size jetliners such as 747s and 767s that are being converted to private jets for use by wealthy individuals.

In the June issue of Aerospace America, Richard Aboulafia reports the new $60 million Gulfstream G650 will ship in 2012 and will have the largest traditional business jet cabin, the greatest range (7,000 nautical miles) of any business jet, and the fastest maximum speed of any civil aircraft flying today (Mach 0.925).

Currently, there are more than 550 jetliners and business regional jets in private use. This fleet has more than doubled in size over the past seven years. Between 1997 and 2008, the market for big business jets grew by 15.5% annually compared to 10% per year in the same period for the rest of the private jet market.

Right now, there are several plays for a supersonic business jet priced at $80 to $90 million.

Yet for Middle Class Millionaires and aspirational consumers on the rungs below, the closest glimpse they may get is when a Mass Affluent magazine such as Architectural Digest does a preview of jet interiors, as they recently did with the designs for the first private Airbus A380.

Greenpoint Technologies, based in Kirkland, Washington, recently closed its books on its best year ever for sales. The company creates exquisite custom interiors for luxury jets, and their hot sales might seem an anomaly in an era of fuel prices spiking and airlines teetering on the edge of bankruptcy.

But for most Greenpoint customers — often from the oil-rich Middle East and Russia — the cost of fueling a huge personal jet is just pocket change, according to the company.

“There are more billionaires being created now then ever before, and they’re tailoring their airplanes for business, and part of business is saving time. And these airplanes are like offices in the sky,” said Sloan Benson, Greenpoint executive vice president and director of sales.

In fact, the biggest challenge the company has right now is the backlog of orders, and the continued calls from their Super Rich clients finding out how they can move up their order! For advertisers of Elite Traveler, no need to worry. Elite Traveler is showing these wealthy folks everything else they can spend their money on as they fly around the world on their current private jets via our BPA audited distribution in over 100 countries.

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.

2. $300,000 for A Coffee Table? For Brad, It’s a Penny in a Pitt

I always enjoy when I meet folks who dismiss the many celebrity readers of Elite Traveler as “only wanting things that are free.” As we all know, private jets are often written into the contracts of A-listers, so pjs are of course their chariot of choice.

That said, smart luxury marketers know they can sell to deep-pocketed celebrities, and the selling process starts when the celebrity asks for it for free. After all, that is a ‘buying sign’ that they want what you are selling!

Case in point: Brad Pitt went on a bit of a furniture spree, dropping some serious movie star money at a “design art” furniture sale in Switzerland.

On the buy list was a hollow marble table built by Jeroen Verhoeven, which cost Pitt $293,000. Pitt also ordered a $175-per-square-foot rug made out of aluminum thread, and reportedly expressed interest in a $300,000 gold lacquer-coated Fiberglas sofa.

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. More Bad News On Unemployment / Mortgages

As more and more aspirational consumers list ‘saving money” and “paying off credit card debt” as top priorities, The New York Times reported that 1 in 11 houses in the U.S. is in a stage of foreclosure. At the same time, the U.S. unemployment rate posted its sharpest one-month increase in 12 years last month, suggesting U.S. consumers already facing a housing slump and soaring gasoline prices now confront growing pressure from a weakening job market.

Meanwhile, nonfarm payrolls, which are calculated by a separate survey, declined 49,000 in May, the fifth straight drop. The decline was broad based, including manufacturing, construction, retail trade and business services.

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 318,000 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. LUXUS Expands Private Jet Terminal Billboard Network

Building your brand, launching new products and selling to the Super Rich just got easier as our Luxus Networks’ most recent expansion now offers you over 200 locations in North America for high-impact signage in private jet terminal lounges. The newest locations:

  • Birmingham, AL
  • Bakersfield, CA
  • Fresno, CA
  • Santa Barbara, CA (often called Beverly Hills North)
  • Rifle, CO (Ski Country)
  • Wilmington, DE
  • Kissimmee, FL (Orlando)
  • Fort Wayne, IN
  • South Bend, IN
  • Gulfport/Biloxi, MS (Casino Gaming)
  • Jackson, MS
  • Albuquerque, NM
  • Farmington, NM
  • Reno, NV (Gaming and Skiing)
  • Binghamton, NY
  • Elmira, NY
  • Stewart, NY
  • Tulsa, OK
  • Johns Island/Charleston, SC (The Luxury Coast)
  • Nashville, TN (Country Music Capital)
  • Corpus Christi, TX
  • El Paso, TX
  • Newport News, VA
  • Burlington, VT
  • Casper, WY

Contact sales@luxusdn.com and your advertising can be front and center in any or the above locations within 72 hours!

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, the U.S., Mexico, Brazil, Kuwait, Qatar, Bahrain, Oman, India, Singapore, Korea and China. All with one ad buy!

5. Mass Affluent Find Themselves Strapped and In A Corner

A recent report on CNN highlighted the challenges of the Mass Affluent (Household income $75,000 to $350,000). Under the heading, “Making a good living, but still feeling strapped,” the story reported, “Consumers are feeling worse about their personal finances and prospects – far worse than government statistics about the economy would indicate.”

“Consumers are very financially stressed, more than what’s indicated by the job and income statistics,” said Scott Hoyt, senior director of consumer economics at Moody’s Economy.com.

High fuel and food costs, coupled with minuscule raises and shrinking home values, led more people to report that their personal finances have worsened than at any time since 1982, according to a recent consumer survey by Reuters and the University of Michigan.

According to the report, 75 percent of those surveyed said they expected the nation’s economic troubles to continue over the next year, the highest level since 1980. They predict the unemployment rate will jump by one percentage point to 6.0% by yearend.

A survey from the Conference Board released last Tuesday found that only 13.4% of respondents said they expect their incomes to rise in the next six months, the lowest level since the study began 41 years ago. Their inflation expectation has hit an all-time high.

Meanwhile, Americans aren’t feeling flush. Home values have plummeted more than 14% in the past year, according to the S&P Case/Shiller Home Price Index, which tracks 20 of the largest markets. That’s the sharpest rate in two decades. And wages are basically stagnant, rising only 0.6% between the first quarter of 2000 and the same period this year on an inflation-adjusted basis. Wages have actually fallen behind inflation for the past seven months, according to Jared Bernstein, senior economist at the Economic Policy Institute, a liberal leaning think tank.

Their investment portfolios aren’t doing well, either. The Standard & Poor’s 500 index is down nearly 9% over the past year. And the value of Americans’ stock and mutual fund holdings fell by $186 billion in the first quarter, the first drop since 2003’s bear market.

All this financial stress comes at a time when most Americans have the thinnest savings cushion to fall back on. They have been loading up on debt in recent years, drawing on the equity in their homes, in particular. The percentage of their disposable income that goes toward debt payments is at 14.3%, near the all-time high.

For luxury marketers looking to gain more sales, Elite Traveler, Elitetraveler.com and Luxus Networks provide integrated solutions to create 100 percent brand awareness against Super Rich consumers. For example, the average private jet owner spends nearly $400,000 on watches and jewelry annually – more than triple the pre-tax income of Town & Country readers and more than double the pre-tax income of Departures and Robb Report readers.

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.

6. What The Private Jet Community Is Saying About Elite Traveler

Below are some recent comments from some from the great folks who give Elite Traveler issues directly to our elite travelers. If you take a moment to read through them, it is easy to understand why we are so proud of Elite Traveler and the unique opportunity we provide to luxury marketers to reach the highest spending consumers in the world!

“Always provides the best and most pertinent information about Hotel suites and luxurious spas. Great for planning the perfect vacation getaway.” Avitat Westchester, White Plains, NY

“It’s large and easy to read. The cover always captures their eye, and its fun to read on the plane.” McEwen’s Aviation, Edmonton, Alberta

“Favorite magazine to read while flying!!!=)” Million Air, Van Nuys, CA

“WOW” Stevens Aviation, Greenville, SC

“Excellent magazine, very informative.” Raytheon Aircraft, Waltham, MA

“Great gift ideas.” Net Jets, Atlanta, GA

“The best photos ever in a magazine.” Aviation Sales, Inc., Dayton, OH

“Best magazine we offer.” Execuport, Fort Lauderdale, FL

“Great reading source during long flights.” Raytheon Aircraft, Waltham, MA

“It’s very professional looking – the bright glossy pictures make it fun to hand out.” McEwen’s Aviation, Edmonton, Alberta

“It rocks.” American Jet Charter, Oklahoma City, OK

“Outstanding! Good quality!” Bradley Pacific Aviation, Maui, Hawaii

“Great magazine, good pictures and perfect reading material for a flight.” Executive Jet Management, Cincinnati, OH

“Love it, very impressed, used as a coffee table book.” Fraser Yachts, Bainbridge Island, WA

“Maria Schwarzenegger takes one every time.” SAC Jet Center, Sacramento, CA

“They love the content and the pictures get them very involved.” Stonewave, Inc., San Jose, CA

“Classy. Visually stimulating.” Fraser Yachts, Bainbridge Island, WA

“It’s le crème de la crème of luxury magazines.” YHU-GSI, St Hubert, QC, CANADA

“Very nice magazine, well put together.” Avitat Westchester, White Plains, NY

“I hear great comments all the time. The customers really like to read about vacation resorts.” Grainger Aviation

“They always grab a copy – love it!” Avitat Twin Cities, St. Paul, MN

“It’s a wonderful and informative publication!” Jet Center of Dallas, Dallas, TX

“Our customers enjoy Elite Traveler a lot. We give every charter flight a copy of Elite and they love it.” Million Air, Van Nuys, CA

“WOW – what a neat magazine. They ask for the new issue.” Landmark Aviation, Houston, TX

“They always ask when the next issue is coming out!” Monaco Air, Duluth, MN

“They take one on every trip because they enjoy the articles so much.” Landmark Aviation, Houston, TX

“An extremely fine publication with exquisite photography and an appropriate mix of news, reviews, and advertising for the Elite Traveler.” Western Shore Aviation, Sheboygan Falls, WI

“Elite Traveler offers extraordinarily beautiful resort information and destinations.” American Jet Charter, Oklahoma City, OK

“Very informative materials for reading.” Opa Locka Flightline, Opa-Locka Airport, FL

“Always glad to find a copy waiting!” Kaz Aviation, Kissimmee, FL

“Great Articles!” Skytrails, Van Nuys, Ca

“Very enjoyable reading and great pictures.” Landmark Aviation, Winston Salem, NC

“Love it and our customers call asking about when the next issue will be here.” Executive Beechcraft, Kansas City, MO

“They love the magazine. I put it out in our lobby and by the end of the week we have none!” Guardian Jet Center, Ontario, CA

“They love it! Everyone looks forward to the new copies!” McEwen’s Aviation, Edmonton, Alberta

“It is an informative and fun publication.” Southwest Airport Services, Houston, TX

“Top grade magazine!” World Fuel Services, Miami, FL

“Elite gives them great ideas for travel destinations.” Sun Aviation, Kansas City, MO

“They love the quality of the pages and the pictures of the lovely ladies on the cover.” Million Air, Van Nuys, CA

“They love the detail in all the articles.” Landmark Aviation, Fayetteville, NC

“Elite Traveler has such beautiful pictures and great gift ideas.” Ultimate Air Center, North Canton, OH

“Very elegant magazine, love the jewelry and resorts! They do not leave our FBO without it!” Sun Air Jets, Ventura County, California

“Eye candy! Very impressive publication.” Ronson Aviation, Trenton, NJ

“It is their kind of magazine!” Jet Away Aviation, Bohemia, NY

“These magazines are absolutely wonderful!” Colorado Jet Center, Colorado Springs, CO

Luxus Networks can bring your brand front and center with the world’s wealthiest consumers in over 100 private jet terminals throughout North America. Programs start from $1,000 per month. Contact Kimaada LeGendre at klegendre@elitetraveler.com for more information!

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