Elite Traveler – ET Insider – May 15, 2007
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ET Insider – May 15, 2007
Elite Traveler Insider –
May 15, 2007
Elite Traveler Insider
By Douglas D. Gollan, President and Editor-in-Chief, Elite Traveler Magazine
SPECIAL NOTICE: Advertise to the world’s wealthiest consumers this Summer. There is still time to place your ad in Elite Traveler’s July/August issue with bonus distribution to mega-yachts in The Med. Deadline is May 23 for ad reservation! Email sales@elitetraveler.com or your sales representative!
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. Super Rich Summer Spending Projected to Increase over 50%…
3. A $2 Million Birthday Song…
4. Watch Retailers Say the Boom is at The Top…
5. New Lives for Old Barges. Welcome to the Mega-Yacht World…
6. Why the Super Rich Don’t Fly Commercially…
Does Elite Traveler work? Ulysse Nardin sold “at least” two $86,000 Sonnerie en Passant watches from its ad in Elite Traveler’s January/February issue
1. Super Rich Summer Spending Projected to Increase over 50%…
Households with a Net Worth of at least $10 million plan to spend an average of $622,202 on summer fun, from luxury cruises and resorts to buying jewelry, watches and accessories, according to the newest research from Prince & Associates.
At a time when car manufacturers are blaming the mortgage meltdown and higher gas prices for a big drop in auto sales, the Super Rich are planning to spend more than ever. According to the Prince research, spending across all categories will climb by 56% over 2005, the last time the Summer Spending survey was conducted.
Among the highest growth categories projected for elite spending are Electronics (up 121% to $31,000 spending over the summer), Apparel and Accessories (112% increase to $34,000), Luxury Resorts (78% to $41,000) and Jewelry and Watches (49% gain to $94,000).
According to Russ Prince of Prince & Associates, “The Super Wealthy are not impacted by external influences such as gas prices, job outlook and mortgage rate increases.”
Some other highlights: 48% plan to take a cruise, spending $92,000; 95% will stay at Luxury Hotels (separate from Resorts), spending $48,000; 68% will go to Spas, spending $61,000; 26% will take Experiential Trips, spending $103,000; 16% will rent Villas, spending $106,000, 45% will redecorate, spending $129,000; 85% will purchase Wines and Spirits for either Entertaining or Personal Consumption, spending $41,000, 11% will rent yachts, spending $384,000. A total of 198 individuals with a Net Worth of $10 million or more were interviewed for the survey during the first week of May.
For the full results, visit www.elitetraveler.com/research.html
Does Elite Traveler work? Sacramento Jet Center tells us, “Maria Shriver Schwarzenegger takes one every time.”
2. Want to Live Like a Millionaire? By Today’s Standards, You’ll Need a Lot More than that to Be Part of this Elite Lifestyle…
According to reports from Britain, it costs twice as much to live a millionaire’s lifestyle as it did two years ago-and £1 million (US$2 million) in the bank is not nearly enough.
According to an analysis of millionaire living in England, one needs nearly £6 million (US$12 million) in the bank to qualify for membership in this elite “club.” The study found that big spenders are not content with a degree of comfort most of us would envy. They want to emulate the Super Rich, such as Chelsea owner Roman Abramovich and BHS tycoon Sir Philip Green.
To achieve this luxury lifestyle, they can expect to fork out at least £750,000 a year and have assets of more than £5.8 million, the report stated. Researchers based their findings on interviews with 200 U.K.-based multi-millionaires about their lifestyles and spending habits.
The minimum requirement to be considered rich in 2007 includes ownership of a £4 million London mansion complete with staff at a cost of £38,400 a year, and a holiday home worth more than £1 million. Other required spending includes at least two luxury holidays, wining and dining at the top restaurants, and private school fees. In addition, such a plush lifestyle would require at least two cars worth upwards of £140,000.
Half of those surveyed also owned a luxury yacht; 13 percent had their own private jet while the rest chartered, had access to corporate jets or were part of card programs.
The report’s author Paul Naden, founder of luxury events organizer Carbon Black, said: “Even multi-millionaires are still chasing the dream. A lifestyle of luxury is not enough. They want extreme luxury. In their circles, having a super-car is almost the norm, so now they want a collection of Ferraris, Lamborghinis and Porsches.
“They want private jets and then helicopters to take them out to their boats. They want the ultimate experiences and they are not prepared to compromise.
“We believe that this is being partly driven by the glamorous media presentation of the lives of the elite super-rich like Roman Abramovich, footballers such as David Beckham and pop stars like Elton John.”
The average age of those interviewed was 34.
“A decade ago, the multi-millionaires would mainly have been in their late forties or early fifties,” Mr. Naden added. “But there is now a younger generation of entrepreneurial rich that is more thrill-seeking. We find that these people expect not only vintage champagne and the rarest cigars but accommodation in venues such as presidential palaces, which are not normally open to the public, and parties on private islands and super-yachts.”
The report says birthday celebrations have become a particularly popular way for the super-rich to demonstrate their spending power. For example, Sir Philip Green spent £5 million on his 50th birthday party, flying in Tom Jones and Rod Stewart to provide the entertainment.
The U.K. is Elite Traveler’s second largest distribution point (beyond the U.S.) in case you want to be part of Britain’s private jet lifestyle!
Does Elite Traveler work? Avitat Twin Cities Private Jet Terminal says, “Our customers always grab a copy, and some take more than one! They love it!”
3. A $2 Million Birthday Song…
Who would pay Jennifer Lopez a whopping $2 million to sing at his spouse’s birthday party? Andrei Melnichenko, a Russian billionaire aged 35, did for his wife, former model Aleksandra Nikolic Melnichenko. The $2 million payoff for a 40-minute private concert included $1.2 million for the elite performance and a further $800,000 to fly Lopez’s staff from the U.S. to Britain, according to reports. The high-profile birthday party took place Saturday night on April 21st and had 60 guests in all, including Russian and Serbian tycoons. Lopez performed superhits like “Jenny From the Block.” Of course, this isn’t the first time Melnichenko has paid for a superstar to perform at a private event: In 2005 he paid $4 million for Christina Aguilera to sing at his wedding in the south of France. Ahhhhh, the Elite Traveler private jet lifestyle!
Does Elite Traveler work? Million Air Van Nuys (Los Angeles) says, “We put it on every flight. Our customers love Elite Traveler.”
4. Watch Retailers Say the Boom is at The Top…
Recently, European watch trade publication Europa Star talked to several U.S. watch retailers about How’s Business?
Denis J. Boulle, Owner, de Boulle (Dallas, Texas, USA): “January started off with a bang. High-end watches keep walking out of the door so we are very optimistic for another good year…we are living in a barbell economy with extreme wealth on one end. We are fortunate enough to be focusing on the high-end of the watch business. The growing group of extremely wealthy individuals will continue to feed the high-end of the market.”
Marion Halfacre, Owner, Traditional Jewelers (Newport, California, USA): “The current state of the industry is very good, which is proven by the consistency of the luxury buyer’s buying power and desire to buy. The luxury buyer isn’t prone to wait for an occasion, but rather grabs the opportunity to acquire a fine luxury piece when it presents itself.”
Ray Grenon, Owner, Grenon’s of Newport (Newport, Rhode Island, USA): “Business is excellent particularly at the top end.”
To demonstrate the Barbell Economy, according to the MMR Affluent Survey only 318,000 households in the U.S. spent over $5,000 on watches in 2006. Interestingly, Elite Traveler has 139,000 readers who purchased watches last year with the average spend per household at a staggering $147,000!
Does Elite Traveler work? A reader booked the Presidential Suites at The Mandarin Oriental, Washington DC directly from the pages of Elite Traveler
5. New Lives for Old Barges. Welcome to the Mega-Yacht World…
Old vessels that once hauled cement and fuel to offshore oil rigs are being reborn as “shadow boats” to ferry Jet Skis, helicopters and luxury cars for the Super Rich who do not want clutter on their yachts. A growing number of out-of-service oil boats, once relegated to the scrap heap, now carry the baubles of billionaires with big yachts, according to reports.
The shadow boat conversion industry is one that is expected to grow as the number of new mega-yachts hitting the water increases, said Gary Slatkow, vice-president of sales for Shadow Marine in Fort Lauderdale, Fla. As part of the transformation from battered work horses to spiffy vessels, the old boats are completely overhauled and refitted with equipment like large cranes used to lift power boats and Jet Skis.
Customers for shadow boats, which range in cost from $7 million to $13 million, are an elite group who are able to afford the extra few million on top of new yacht costs, which could easily soar above $30 million.
Of course, in addition to our BPA-audited circulation aboard private jets in over 90 countries, Elite Traveler is also distributed aboard mega-yachts in The Med during the summer and in the Caribbean during the winter. It’s another reason why, when you advertise in Elite Traveler, your ad doesn’t get lost in a stack of unopened mail at an unused home or business manager’s office.
Does Elite Traveler work? Villas del Mar generated over $500,000 in villa rentals last year from their advertising in Elite Traveler
6. Why the Super Rich Don’t Fly Commercially…
A recent article in Money Magazine highlighted why the Super Rich have eschewed the U.S. domestic airlines for their air travel needs-and instead fly privately.
It starts with a warning, “Travel alert: You’ll be paying more to fly this summer on planes that are more crowded than ever-even after you’ve bought your ticket.”
The article then talks about how the airlines are increasingly making domestic flying more like bus travel. “Getting a seat assignment used to be as simple as requesting an aisle or window seat,” according to the piece. “But with airlines flying at or near record load, getting a good seat is harder than ever, and some airlines are betting that some fliers are willing to pay extra to ensure they don’t get stuck with a dreaded middle seat.” AirTran Airways is reportedly considering fees for advance seat assignments for reserving premium seats like those in exit rows, following a move by Northwest Airlines last year to charge fliers an extra $15 to reserve preferred aisle and exit rows. “Full-service” American Airlines earlier this month announced that people who do not book tickets on its website will have to pay a $15 fee to change seat assignments.
The wealthy often have quite a bit of baggage. With fuller flights, airlines are cracking down on passengers who are carrying more than the allotted number of bags and go over the weight limit on luggage. Earlier this year, Spirit Airlines began charging fliers $10 to check in a second bag and $100 for a third bag. Most domestic airlines now allow you to check two bags weighing no more than 50 pounds each. Go over that weight and you’ll pay up to $80 or more per bag.
