View all newsletters
Latest in Luxury - Sign up to our newsletter

Elite Traveler – ET Insider – March 2, 2010

Array

ET Insider – March 2, 2010

Elite Traveler Insider –

etlogo

March 2, 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. Private Jets Flying High In January

2. If the Safe Costs $300,000, What Goes Inside?

3. The Super Rich and the Rest of The Economy

4. New Jets On The Way: Gulfstream Tests Second G650

5. The Super Rich Are, Well, Super Rich

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 Jets Flying High In January

Private jet flying continued to increase in January with flights increasing by 5.3 percent year over year, according to Argus Aviation Research Group. Large cabin aircraft – think Gulfstream, Global Express, Boeing Business Jet, Airbus Corporate Jet – showed the biggest gain led by a 15.2 percent in large cabin fractional usage and 12.3 percent jump in Part 91 (non-charter, personal use) flying.

Flying by Mid Size Cabin jets increased by 4.9 percent with a 10.6 percent gain for charter private jets. The continued increase in private jet travel even sparked a story by The New York Times’ Joe Sharkey, noting that the shame factor in flying privately has passed and those who can afford it are back in full force.

Further showing the strength of private jet travel, the Argus report noted that large cabin jet travel in January grew month over month from December, generally a peak month because of holiday travel. Large cabin flying was up 1.3 percent with a 3.6 percent spike in charter of large jets.

First Person: Out at Teterboro for a Friday meeting on President’s Day weekend, yours truly can personally attest that the private jet lifestyle is aloft and in style. Amidst the luggage carts of Louis Vuitton, Bottega Veneta and other elegant luggage the terminal was standing room only.

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. If the Safe Costs $300,000, What Goes Inside? Travel

Where do elite travelers keep their watches when they are on the road? Elite traveler extraordinaire Karl Lagerfeld recently teamed up with German luxury safe maker Dottling to create the world’s most expensive personal safe, costing some $339,000.

The safe is a bit under six-feet tall and less than a foot deep; the steel body, sheathed in high-gloss chrome-plated aluminum, looks like an impregnable monolith. But when activated by the owner, two doors butterfly open to reveal interior cabinets containing watch winders and drawers, according to a report from WWD.

Only 30 Narcissuses will be made, and Lagerfeld is taking one, which means there are 29 left!

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. The Super Rich and the Rest of The Economy

At a time when taxing the Super Rich is again coming into focus, I thought for all of the companies that derive revenue from that “top 1 percent”, a 2005 article in New York Magazine was again worthy of spotlighting. The point: The Richer they are, the more they spend, from jewelry and watches, to dining out, to car services and hotels, and buying new cars to home décor. An excerpt from the article is below:

“Ken Goldstein, a labor economist at the Conference Board, notes that, crudely speaking, $200,000 in spending on services creates or sustains a job paying $50,000-the rest is eaten up in overhead, benefits, taxes, and profits… Figures provided by Mark Zandi of Economy.com suggest that in New York, the multiplier for financial-service jobs is 4.1. In other words, $200,000 in spending can effectively create 5.1 jobs.

“Let’s say that the number of New Yorkers with more than $500,000 in adjusted gross income has risen to about 30,000, which is surely conservative. If, on average, each of these folks spends $200,000 a year on services locally (remember, the $500,000 is a floor, not an average), then the top 1 percent of earners supports about 153,000 service jobs. One hedge-fund manager who spends $1 million annually on services-a driver and house staff, investment management and real-estate brokers, restaurants and psychotherapists-probably sustains 25 livelihoods.

Even the public sector owes a lot to the superrich. About 1 percent of New York City filers in 2000 paid enough city taxes ($2.338 billion) to support the wages of roughly 50,000 government employees.

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. New Jets On The Way: Gulfstream Tests Second G650

With long lead times for development and predictions for rebounding sales of new private jets, Gulfstream continues to bet its Uber Rich customers and top executives of multi-national companies will want planes that are bigger, go farther and are faster.

Moving its Gulfstream G650 forward, the company recently announced it had completed its first flight of its second G650. In a company first, both G650 flight-test aircraft T2 and T1 were airborne simultaneously and were tracked by dual telemetry facilities in real time.

The second test article known as T2 took off from Savannah Hilton Head International Airport at 12:50 p.m. on Thursday, Feb. 25, with senior experimental test pilots Gary Freeman and Scott Buethe in the cockpit. The aircraft flew for 2 hours and 33 minutes, reaching an altitude of 37,000 feet (11,278 m) and a speed of Mach 0.80 before landing back in Savannah.

“T2 performed extremely well during the initial tests of its integrated flight control system and handling,” said Pres Henne, senior vice president, Programs, Engineering and Test, Gulfstream. “We plan to make half a dozen flights to assess basic system functionality before proceeding to more intensive testing.”

Gulfstream announced the G650 program on March 13, 2008. On Sept. 29, 2009, the aircraft rolled out under its own power in front of a crowd of more than 7,000 people. It completed its first flight on Nov. 25, 2009, and remains on schedule for entry-into-service in 2012.

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.

5. The Super Rich Are, Well, Super Rich

We always counsel that the best and most targeted way to find consumers who still have money and are still spending on luxury lifestyle categories is to look aboard private jets. After all, at a cost of $5,000 to $10,000 per hour, private jet travelers represent the best target for luxury marketers today.

That said, there is now more evidence that while some of the Super Rich may have taken hits, they are still, drum roll please – Super Rich.

Writing in Daily Finance, tax expert and former Pulitzer-Prize winning reporter for The New York Times David Cay Johnston notes any hard times are purely relative. From 1992 to 2007, the annual income for the 400 highest earning Americans increased seven-fold from about $50 million per year to $345 million. Johnston notes that decreased tax rates for top earners since 1992 and after mean that the gains they have made in real income and lower tax rates more than off-set any decreases in earnings over the past two years. In other words, the Super Rich – even if they took a bit of a hit the past two years – have more discretionary income than a decade ago, while Mass Affluent consumers continue to cut back on discretionary spending as they try to reorganize their personal finances.

Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Be the first to know about the latest in luxury lifestyle news and travel.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED
Thank you

Thank you for subscribing to Elite Traveler.