ET INSIDER – July 30, 2013
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 edition:1. Andrew Hunt joins Elite Traveler parent Progressive Media Group2. Elite Traveler surges to leadership position among affluent websites3. What’s rich? Not people making $200,0004. We admit not all Elite Travelers can read
1. Andrew Hunt Joins Elite Traveler parent Progressive Media Group
Having led the most successful British Olympic team in history as CEO of the British Olympic Association and having served as non-executive director of the London Olympic Games, Andy Hunt recently joined our chairman Mike Danson to oversee his private holdings under the banner of Progressive Media Group. From his new perch, Andy took the time to talk about the move and where he sees the market going.
Why did you join Progressive?
I’ve spent the last five years running Team GB, the Great Britain Olympic team and helping to deliver the London 2012 Olympic Games. It was a rare career opportunity, a true honor to undertake, and incredibly exciting, but once it was all over it was difficult to imagine what I might do next. What I did know was that I wanted to lead an organization where the team is entrepreneurial, passionate about the business, and strives for excellence in all that they do. Progressive Media Group has those attributes and that’s why I’m here, which are of course all of the vital ingredients for success whether in the world of sport or business!
What’s your vision?
To create a thriving international media and business information group that is renowned amongst other things for being truly customer centric and delivering a powerful value proposition to our clients.
How do you view the importance of the UHNW consumer to marketers?
The UHNW sector remains one of the most difficult target markets to reach and engage with, yet it contains some of the most influential people on the planet, who so often shape the preferences and buying behavior of the aspiring mass affluent. Progressive Group has recognized this challenge for marketers and that’s why Elite Traveler and our growing list of luxury lifestyle titles are entirely focused on the UHNW market and providing a unique channel for our clients to maximize the success of their campaigns with this audience.
Do you have any funny stories from the Olympics?
During the London 2012 Games, I was at the Velodrome on the Olympic Park to see if Sir Chris Hoy could win his sixth Olympic Gold medal for Team GB in the Men’s Keirin. I was seated next to Prince Harry on one side and the Prime Minister David Cameron on the other. The atmosphere in the Velodrome was electric as the riders raced around the track, the roar of the crowd encircling them like a high-speed wave. When Sir Chris Hoy crossed the line in first place, the place erupted in celebration. I raised my hand to give a high five to Prince Harry and simultaneously David Cameron turned to high five me. We ended up in a 3-way high-five, which of course was captured by the world’s press. Something totally spontaneous and not a situation I think I will ever find myself in again!
Any other thoughts?
Success in business also means having the necessary resources to get it done. Progressive has the resources to invest both for short- and long-term growth. Watch this space!
“Recently we had an American customer who walked in with a copy of Elite Traveler and booked two suites that been directly featured in the magazine. The value of the booking was in the region of $200,000.” – Tony Potter, Corinthia Hotels
2. Elite Traveler Surges to Leadership Position Among Affluent WebsitesElitetraveler.com visits have been soaring since our re-launch in February with state of the art responsive design technology, providing users with seamless access to our site from tablets, phones and desktops without needing an app. Numbers speak louder than words.
Elite Traveler leads not only in Visitors but also in key “quality of viewer” indicators such as Pages Per Visit, Page Impressions, Time on Site and Lowest Bounce Rate (the percentage of people who leave after visiting only one page).
What’s more, 85 percent of Elitetraveler.com users are regular private jet travelers, meaning you can market in real time to this high spending ultra affluent audience as they are ready to choose their next hotel, watch, piece of jewelry, or whatever you are selling.
“Elite Traveler is a key media source for us with well over $200,000 in sales we can track directly back to our ads in your magazine over the past year.” – Charles Krypell, Owner, Charles Krypell
3. What’s Rich? Not people making $200,000
A recent column by advertising expert Beau Frasier for Luxury Daily hit on points I have been making for a while. The consumer who makes $200,000 or $250,000, particularly in a major metro market is far from wealthy. Elite Traveler of course reaches the UHNW consumer via our BPA audited distribution aboard private jets. With a Median HHI of over $2.2 million, an average HHI of $5.3 million and 411,000 readers who make $1 million + HHI per year, Elite Traveler reaches a market that others simply don’t.
Highlights of Mr. Frasier’s article for LuxuryDaily.com:
“During the Occupy Movement, the idea of the ‘1 percent’ got a lot of airplay, and opinions about this group flew fast and furious through the media. Lots of people wondered who was actually in the 1 percent. Some were surprised to find they were included, and many who had thought they were reasonably affluent found themselves on the poor side of town.
It turns out a hundred thousand a year does not put you anywhere near the top tier – you are still just middle-class.
Seems we are all talking more about affluence and wealth these days, but do we have a good handle on what those terms mean, and what it takes to be truly affluent?
Ask Mendelsohn, and the market researcher will tell you the affluent make $100,000-plus a year, the ultra-affluent earn $250,000-plus and the wealthy weigh in at $500,000-plus. Sounds about right?
If you ask the U.S. Department of Commerce, they break the population into quintiles.
According to the Census, the top 20 percent of U.S. households make an average of $92,000 per year – close to Mendelsohn’s cut-off for basic affluence.With that income you can buy a nice place in Tulsa or Tuscaloosa, but you would be hard-pressed to afford even a studio in Tribeca in New York.
President Obama talked about asking the rich to pay their fair share, and wanted to raise the tax rate on households making $250,000-plus (Mendelsohn’s “ultra-affluent”). That is about 1.5 percent of the population.
To belong to the exalted 1 percent, you need an income of more than $350,000.
For most Americans, that sounds like a lot. It should, because it is nearly six times the average family’s income of $62,000. Which is why so many were willing, in straightened times, to vilify the 1 percent and jump on the tax-the-rich bandwagon.
But does $350,000, or even Mendelsohn’s $500,000-plus really qualify as rich?
To be rich, you need to be in the 0.1 percent. While membership in the 1 percent starts around $350,000 a year, to be in the 0.1 percent you need more than $1.5 million – three times Mendelsohn’s “wealthy” earnings.
Look closely at these two groups and you can see how different they are:
The 1 percent is made up of your garden variety professionals and managers – lawyers, doctors, middle-managers, small business owners – people who use their brains to make a good living, have nice houses in nice neighborhoods, take their kids away for a summer vacation and ski weekends in the winter.
These consumers might even have beach or country house. Most of us in marketing, if not already there, aspire to that life.
The 0.1 percent is in a completely different league. They hire people like us to help grow their companies, protect them from lawsuits, cure their kids. They own several homes, and each is the kind we see only see in magazines – in buildings with spectacular views, on the water, in gated communities.
When they want to ski they do not drive up to Killington with the kids, they take a private jet to their ski house in Vail or Aspen. The 1 percent still has worries – about job security, home valuation, putting two kids through private college.
The 0.1 percent is not really worried about these things at all.
Regardless of short-term market fluctuations, their wealth and their lifestyles are on a steady trajectory: upwards.
In marketing, we need to be careful not to fall into the trap of treating all affluents alike.
The mass affluent have money to spend on things such as mutual funds, iPads, designer clothes and cruises, but they rarely buy expensive jewelry or cases of fine wine, fly first class or hire investment managers.
We need to think more carefully about who can and will buy luxury products. And to make those decisions, perhaps it is time research definitions reflect the difference between mere affluence and real wealth.”
Luxury Daily publishes a free daily newsletter. You can subscribe here: http://www.luxurydaily.com/
“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 ($437,000) of the timekeepers we advertised” – Patrik Hoffmann, CEO Ulysse Nardin
4. We Admit Not All Elite Travelers Can Read
Paramount Business Jet is a charter broker that promises “unparalleled customer service.”
Not all customers however are the human type: “Marsik, a prized blue British Shorthair, often flies by private jet between his owners’ homes in the U.S. and Russia. The price tag for his most recent trip came to a bit more than 100,000 USD – money well spent by his owners to avoid the possibility of mistreatment, and even death, among pets subjected to traveling in the cargo holds of commercial airliners.”
“While the trip certainly wasn’t inexpensive, we were able to save the client quite a bit over paying for a round-trip by rerouting a Gulfstream G-IV flying an empty leg from London to pick up Marsik and his ‘entourage’ in Moscow,” explained Eric Ammon, Paramount’s Senior Vice-President of Sales and Services. “Even cats appreciate good value, and the chance to save money.”
In the days leading up to Marsik’s journey across the North Atlantic, PBJ also helped to collect Marsik’s travel documents and passports, and assisted with scheduling a last-minute veterinary visit so Marsik could obtain his international travel approval.
Once airborne, Marsik had the opportunity to lounge throughout the Gulfstream’s luxurious cabin, taking in the sights from over 40,000 feet and even enjoying a catnap or two. Marsik also entertained guests upon his arrival in Boston, while a U.S. Customs official came onboard the aircraft and verified his travel credentials.
“I believe it’s fair to say that Marsik was a rather finicky client,” added Paramount CEO Richard Zaher. “He had a very particular list of travel requirements, and demanded only the very finest in accommodations throughout his journey.” So if somebody tells you they saw paw prints on a copy of Elite Traveler, now you know why.
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.
All the best,
Douglas D. GollanGroup President and Editor-in-ChiefElite Traveler, the private jet lifestyle magazine Elite Traveler Superyachts, the superyacht lifestyle magazineElite Traveler Asia, Asia’s private jet lifestyle magazineElitetraveler.com, the private jet lifestyle onlineElite Traveler Update, our weekly e-Newsletter to private jet owners worldwide
Doug.Gollan@elitetraveler.comElite Traveler Magazine708 Third Avenue, 10th FloorNew York, NY 10017 USA