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Elite Traveler – ET Insider – March 20, 2012

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ET Insider – March 20, 2012

Elite Traveler Insider –

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March 20, 2012

Elite Traveler Insider

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

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. One Elite Traveler = 25,000 Regular Travelers

2. Over $19,000 Billion in New Private Jets Delivered in 2011

3. Private Jet Travel Soars in February

4. Bloomberg: $500,000 and Broke – A Message for Luxury Marketers

5. Evening Standard: Property New Global Reserve for Super Rich

6. Bullish On Private Jets

1. One Elite Traveler = 25,000 Regular Travelers…

You have seen the Corinthia $200,000 booking, the $80,000 necklaces and $35,000 belt buckle….

Keep in mind the spend for the “average” visit to most destinations is $1,000 or less for the entire stay – hotel, restaurants, sightseeing, shopping – so at $25 million for elite traveler Sir Philip his $25 million Mexico birthday party has the same value as 25,000 regular-type visitors.  That is the SAME as 50 super jumbo Airbus A380 planes filled with 500 passengers each – so think the ROI of it – get one elite traveler or…

New York Post Mayan blowout Posted: 11:32 PM, March 15, 2012

Leonardo DiCaprio has joined the four-day festivities for British billionaire Sir Philip Green’s 60th birthday in Mexico. The actor is partying away with other stars, including Kate Moss and Simon Cowell, at the lavish bash at a luxury resort in the Riviera Maya. Topshop and Arcadia boss Sir Phil has flown in more than 100 friends by private jet from London and Miami for the birthday bacchanal, rumored to cost $25 million. The bash, masterminded by Sir Phil’s wife, Tina, will also include a party for their daughter Chloe’s 21st birthday, with performers including Rihanna and Bruno Mars. We’re told guests are also being issued Spanish-themed costumes to wear on one of the big nights.

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

2. Over $19 Billion in New Private Jets Delivered in 2011…

While Bloomberg recently wrote a good piece about making $500,000 and being broke (see Item #3), elite travelers are doing quite well – and spending – over $19 billion on new private jets they received.  These are +++ consumers who not only buy jets, they stay in luxury hotels, buy designer fashion and expensive jewelry and timepieces.

Spending on new private jets according to the General Aviation Manufacturers Association was up about a half percent in 2011 over 2010.  This of course does not include used jet sales.

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

3. Private Jet Travel Soars in February…

While U.S. commercial airlines were cutting flights due to higher fuel prices and tepid demand, private jets soared in February with a 6.1% year over year increase, adjusted for the extra leap year day!

According to ARGUS, this translated to some 178 more flights per day.   As Willie Sutton used to reference when he robbed banks, “That’s where the money is.”  Certainly wise luxury marketers now realize the private jet traveler market is their best bet!

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

4. Bloomberg:  $500,000 And Broke – A Message For Luxury Marketers…

The below story underscores why Elite Traveler’s 407,000 readers each issue with a HHI of $1million + are ‘must’ in any luxury marketing plan:

“These people never dreamed they’d be making $500,000 a year,” he said, “and dreamed even less that they’d be broke,” the lead in of Max Abelson’s Bloomberg article crowed.  It really is an amazing scenario.

Here are some highlights – it certainly underscores why smart marketers consider private jet setters their core target:

Andrew Schiff, 46, is a finance executive: Paid a lower bonus, he said the $350,000 he earns, enough to put him in the country’s top 1 percent by income, doesn’t cover his family’s private-school tuition, a Kent, Connecticut, summer rental and the upgrade they would like from their 1,200-square- foot Brooklyn duplex.

“I feel stuck,” Schiff said. “The New York that I wanted to have is still just beyond my reach.”

“People who don’t have money don’t understand the stress,” said Alan Dlugash, a partner at accounting firm Marks Paneth & Shron LLP in New York who specializes in financial planning for the wealthy. “Could you imagine what it’s like to say I got three kids in private school, I have to think about pulling them out? How do you do that?”

Wall Street headhunter Daniel Arbeeny said his “income has gone down tremendously.” On a recent Sunday, he drove to Fairway Market in the Red Hook section of Brooklyn to buy discounted salmon for $5.99 a pound.  “They have a circular that they leave in front of the buildings in our neighborhood,” said Arbeeny, 49, who lives in nearby Cobble Hill, namesake for a line of pebbled-leather Kate Spade handbags. “We sit there, and I look through all of them to find out where it’s worth going.”

Executive-search veterans who work with hedge funds and banks make about $500,000 in good years, said Arbeeny, managing principal at New York-based CMF Partners LLC, declining to discuss specifics about his own income.  He said he no longer goes on annual ski trips to Whistler (WB), Tahoe or Aspen. He reads other supermarket circulars to find good prices for his favorite cereal, Wheat Chex.

“Wow, did I waste a lot of money,” Arbeeny said.

The malaise is shared by Schiff, the New York-based marketing director for Euro Pacific Capital, where his brother is CEO. His family rents the lower duplex of a brownstone in Cobble Hill, where his two children share a room. His 10-year- old daughter is a student at $32,000-a-year Poly Prep Country Day School in Brooklyn. His son, 7, will apply in a few years.

“I can’t imagine what I’m going to do,” Schiff said. “I’m crammed into 1,200 square feet. I don’t have a dishwasher. We do all our dishes by hand.”

He wants 1,800 square feet — “a room for each kid, three bedrooms, maybe four,” he said. “Imagine four bedrooms. You have the luxury of a guest room, how crazy is that?”

The family rents a three-bedroom summer house in Connecticut and will go there again this year for one month instead of four.  Schiff said he brings home less than $200,000 after taxes, health-insurance and 401(k) contributions.

Hans Kullberg, 27, a trader at Wyckoff, New Jersey-based hedge fund Falcon Management Corp. who said he earns about $150,000 a year, is adjusting his sights, too.

Earlier this month, a friend invited him on a trip to Mardi Gras in New Orleans. The friend was going to be a judge in a wet T-shirt contest, Kullberg said. He turned down the offer.  It wouldn’t have been “the most financially prudent thing to do,” he said. “I’m not totally sure about what I’m going to get paid this year, how I’m going to be doing.”

M. Todd Henderson, a University of Chicago law professor who’s teaching a seminar on executive compensation, said the suffering is relative and real. He wrote two years ago that his family was “just getting by” on more than $250,000 a year, setting off what he called a firestorm of criticism.

“You don’t necessarily have to cut that — but if you don’t cut that, then you’ve got to cut this,” he said.

============================================================ 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. Evening Standard:  Property New Global Reserve for Super Rich…

London’s best properties have become a “global reserve currency” for the foreign super-rich, a new report argues.

Wealthy investors looking for a safe haven and buy-to-let developers are pouring billions of pounds into the capital’s property market, forcing prices up for ordinary Londoners looking for a home.  Overseas buyers are also benefiting from generous tax breaks, prompting calls for a crackdown in George Osborne’s Budget next week.

Foreign buyers spent £5.2 billion on central London properties last year, up from £3.7 billion in 2010. The massive figure equates to almost a quarter of all money spent in 14 central London boroughs, or around 13 per cent of the entire London market.

The report divides buyers into three categories: Europeans and Americans buying homes to live in or as investments; super-rich buyers from countries such as Russia, the Gulf states and the Far East looking for a form of “economic security”; and investors buying new-build properties to rent out.  It argues property in the capital has become increasingly attractive thanks to a weak pound and uncertainty elsewhere in the world, such as the Arab Spring and the eurozone debt crisis.

Elite Traveler’s Global and Asia Editions deliver your message to UHNW buyers in over 100 countries from Russia to China to Saudi Arabia, Qatar and around the world!

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

6. Bullish On Private Jets…

BBA Aviation Plc (BBA) plans to spend $300 million on U.S. acquisitions this year as demand for private planes in emerging markets remains in its infancy.

At the same time, Embraer is projecting the number of private jets across Asia to double in the next 5 to 10 years and account for 15 percent of the world market.

 

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

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

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