Elite Traveler – ET Insider – June 12, 2012

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ET Insider – June 12, 2012

Elite Traveler Insider –

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June 12, 2012

Elite Traveler Insider

============================================================ 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. Elite Traveler Sells Major Watches for Ulysse Nardin 2. Exclusive Interview: What Warren Buffett Told NetJets Chairman Jordan Hansell, China and More 3. Why The Middle Class Is Still Trading Down (And Will Continue…) 4. Superyachts – Bigger With Bigger Spending 5. What’s Going On Private Jets . . . Latest Research 6. Elite Traveler Delivers for Villas del Mar

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1. We’re thrilled to share our latest success story from Ulysse Nardin…

“I wanted to congratulate you on Elite Traveler Superyachts and Elite Traveler Asia. We are impressed by the high quality of the editorial and particularly your extensive coverage of timepieces.

“Like your main edition we continue to get a strong response and importantly generate sales.

“From the Summer Edition of Elite Traveler Superyachts, as well as the Asia Edition including the May/June issue we are happy to report sales of the timekeepers we advertised.

“We very much enjoy and appreciate our partnership with you and your company and wish you continued success!

Kind regards, Patrick Hoffman, CEO”

Editor’s Note – The watches were Royal Blue Tourbillon (Superyachts) retailing for $285,000; Blue Phantom (Asia Edition) retailing for $95,000 and El Toro (Global Edition) retailing for $57,400.

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

2. Exclusive Interview: What Warren Buffett Told NetJets Chairman Jordan Hansell, China and More…

ET: Your customers represent the most successful people in the world. Do you ever go to them for advice?

Jordan Hansell: One of the biggest advantages is being able to tap into the knowledge of our owners. Once a quarter we have a meeting with our top 45 NetJets executives and we bring in a NetJets owner- usually a CEO or someone with a successful business background. They talk about their career experiences, which offers our executives a great opportunity to learn from a select group of people.

ET: Did Warren Buffett give you any advice when you were named Chairman & CEO?

Jordan Hansell: He did give me some advice. It was short and simple. Run the business like you own it.

ET: Do you go to him for advice often?

Jordan Hansell: He’s helpful, and he’s remarkably hands off, but he is always available if we need to consult him, which we do when we are making significant investments such as our aircraft purchases We have an order for $6.7 billion long-range (Bombardier Global Express) jets, $1.3 billion in (Embraer) Phenoms, and we are close to making a substantial order for mid- and super-mid size jets. His advice is always helpful.

ET: On any given day, the business news cycle has troubling stories about Spain’s economy, varying U.S. numbers and concerns about China. What’s your outlook?

Jordan Hansell: We’re very optimistic on a global basis. We are cautiously optimistic about the U.S. Consumer confidence is trending upward. The housing market is reducing inventory, so new construction will create jobs. We see China as an opportunity for growth potential, but keep in mind 8 percent growth is what’s required to employ new entrants to their workforce.

ET: After China, are there other markets we might see you expanding to?

Jordan Hansell: We’re interested in all of Asia. Indonesia makes sense, but we’ll wait and see. Everybody talks about South America. But unlike the E.U. it is composed of different countries, each with its own regulations so that becomes a challenge. You can look at Brazil, but then it becomes a micro-market. We’ll start looking at the Middle East again. With NetJets’ global scale, we are flying into all of these locations already. NetJets flies to more than 170 countries every year.

ET: What is the financial profile of individual owners, and has the mix of products you are selling-fractional and jet cards-changed?

Jordan Hansell: For fractional, investible assets of at least $30 million and for jet cards, $10 million. Our mix has remained remarkably consistent.

ET: With wealthy owners from big corporations, why does the private jet industry seem to always be in the line of fire from politicians and the media?

Jordan Hansell: Only three percent of U.S. registered business aircraft are operated by Fortune 500 companies, and the benefit is that private jets access over 5,000 U.S. airports compared to 500 for commercial airlines creating business opportunities that create jobs. We need to remind people we are a strong industry. We employ 1.2 million people in the U.S. and contribute $150 billion to the economy. We are one of the few industries with a trade surplus. We create very high paying jobs-pilots, dispatchers, maintenance, manufacturing. Business aviation makes an economic contribution in all 50 states, and right here in Ohio general aviation is responsible for approximately 17,000 jobs and more than $490 million in annual payroll. We have to look for opportunities to get better at sharing the facts about what we bring to the table. We have the truth on our side.

Click here for the full interview.

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

3. Why The Middle Class Is Still Trading Down (And Will Continue…)

From a recent column by pundit Glenn Beck:

-While productivity of the average worker has doubled, their salaries have declined in real money.

-In the last 10 years, yearly income has nearly tripled for the super-rich 1 percent. For the 99 percent, their income has dropped.

-Losses in home prices and increased foreclosures have hurt homeowners, not banks.

-When factory owners have increased demand for their products they go overseas for workers to make the products. When demand decreases, they lay off workers and close plants here.

-When businesses have a decline they can reduce spending on research and improvements. The owners can weather the slowdown, but the laid-off workers cannot.

– Some foreign countries have dialogue and cooperation between labor, management and the government. Young people are trained for work, workers are paid better, employment is higher and everyone benefits. In the U.S., we do not.

– Recent college graduates now have large student loans to repay and fewer good jobs to hire into. They then compete with high school graduates for lesser jobs and non-graduates then have to compete for the jobs that are left. The high cost of education is caused in part by less and less financial support from the government.

– The only available jobs have far too many applicants, are entry-level jobs or are too specialized for the unemployed, who have inadequate or other-adequate job skills.

-Health care costs are controlled by drug companies, health care companies and insurance companies, with permission from Congress. This cuts down on the spendable income we all have left.

============================================================ ONLY ELITE TRAVELER – Elite Traveler (audited by BPA Worldwide) is the only audited publication delivered to global locations for private jet travelers. ============================================================

4.Superyachts: Bigger With Bigger Spending…

The latest edition of the Superyacht Report reveals some interesting statistics: – Superyachts contributed €24 billion to the economy in 2010.

– Over 6,000 companies operate in the superyacht industry.

– Jobs created by superyachts are worth €5.99 billion annually.

– Between 150,000 and 130,000 land-based jobs.

– Up to 100,000 contractor/day worker jobs.

– 33,000 crew employed on yachts.

Also…

Despite the economic difficulties, UHNW’s are still buying and building superyachts. The superyacht fleet continues to grow, and with it the potential and value of the industry also grows.

European shipyards continue to produce the majority share of all new yachts, with Italy the producer of the most yachts per annum. 80 percent of all delivered yachts are motor yachts. The average yacht is a 45 meter motoryacht, built in a European shipyard.

The average size yacht continues to increase, with 31 per cent of yachts in build over 50 meters, as compared to 21 per cent a decade ago.

Since the last study…

No dramatic change has been seen to the superyacht industry as a whole. Having endured the fallout of the economic global downturn that began in 2008, the superyacht industry is now on a fairly even keel. 423 superyachts are in build at shipyards around the world. This figure is consistent with those seen in the 2006-2008 editions of The Annual Report, indicative of a level of stability in line with the pre-boom years.

Some 200 new yachts will be launched during 2012, bolstering the superyacht (30m+) fleet to around 4650 yachts.

============================================================ 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. What’s Going On Private Jets: Latest Research

Publishers have tuned in to the lucrative, captive audience of UHNW “heavy user” luxury consumers flying by private jet. To that end, a number of start-up and publishers – and even an ad agency – have launched magazines claiming private jet circulation. Elite Traveler is carried by all the major private jet terminal chains (FBOs) and virtually every regional and independent FBO as well, and additionally distributes via fractional fleet operators, corporate flight departments, management companies, charter fleet operators and private jet caterers.

We also closely monitor what other magazines our 2,000+ distributors give out. In the most recent research from February 2012 covering 260 North American FBOs, it found that 52 percent give out Elite Traveler exclusively as the only consumer magazine for private jet passengers. Overall, 100 percent said they provide copies of Elite Traveler and no other publisher had double digit penetration. Of publishers that focus their pitches on private jet distribution claims, Stratos ranked second (9.6%), Business Jet Traveler (3.1%), Private Journey (2.6%), Haute Living (1.5%) followed by Affluent (0.0%) and JetSet (0.0%).

6. Elite Traveler Delivers for Villas del Mar

“As you know 2011 has continued to be a difficult year for the travel industry, however, I wanted to let you know Elite Traveler continues to produce results for Villas del Mar’s rental program.

“Our marketing partnership with Elite Traveler continues to provide tangible results we can track directly back to the activities we do together, including advertising, mailings and emails. Again this year Elite Traveler continues to be our #1 source for reservations generating close to $1 million in bookings from your readership of private jet travelers.

“Over the years we have been able to track at least a half dozen sales of villas to readers of Elite Traveler at a value of approximately $25 million.

“When we have tested other media, the phones ring, but only Elite Traveler readers end up making the bookings, and obviously that’s what counts.

“We look forward to our continued partnership and wish you the best for 2012!”

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