ET Insider – May 20, 2014
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.
In this edition: 1.The World’s Wealthy Have a World Cup Parking Problem. 2. Private Jets Brought Over $600 million to Central Europe in Q1 2014… 3. Up Close With The Super Rich Aboard their Super Yachts…
1. The World’s Wealthy Have a World Cup Parking Problem.
From The Wall Street Journal:
“A day after the government began taking reservations for jet landings at the soccer tournament’s host cities, few are left after private aviation companies snapped up more than 5,200 slots in 24 hours, the Aviation Ministry said on Thursday.
“However, jet parking in the cities where the most popular matches will be played -such as the later stages and those involving Brazil-are sold out, and authorities are scrambling to find runways and hangars to accommodate the thousands of private jets expected to fly in for the monthlong tournament.
“We are now looking for more options for parking space to handle the demand,” Aviation Minister Wellington Moreira Franco said.
“In São Paulo, corporate-jet parking at the three main airports serving the city is already full for the June 12 opener between Brazil and Croatia. Ditto in Rio de Janeiro for the July 13 final there. The government is already diverting executive jets to park at neighboring airports, whose spaces are also filling fast. Corporate titans who haven’t yet booked may be forced to park at distant airports and face long overland trips to their matches.
“They’ll get to Brazil, but they won’t be able to land close,” said Eduardo Vaz, CEO of Líder Aviação, Brazil’s top business aviation firm. “They’ll have to use airports that are farther away.”
Nationwide, Brazil has more than doubled the number of spaces where private jets can park during the tournament, to nearly 3,000 from 1,300.
“The cup is also a business event,” said Francisco Lyra, a partner at C-Fly Aviation, a São Paulo-based aviation management company, which the government hired to manage executive jet parking at the Galeão Airport in de Janeiro. By repurposing cargo areas, Mr. Lyra said he tripled the total spaces to around 300.
“Private jet luxury doesn’t come cheap. Paramount Charter quoted a round trip from Beijing to São Paulo on a Boeing Business Jet for $602,000. That aircraft boasts a shower, a bedroom, a conference room and the package includes two flight attendants and standard catering. Lobster and an onboard masseuse are extra.”Unfortunately this was not well organized,” he told reporters. “We have an opportunity to grow. But things are not ready.”
Of course Elite Traveler will be in Brazil as well as ready for the flight there via our BPA audited distribution in over 100 countries worldwide.
The Average Household Income to be in the Top 1% is $1,264,065—and one needs a minimum Household Income of $400,000; since 2008 the 1% have captured 95% of all income gains, according to The New York Times… Is your media plan reaching consumers who are heavy users of luxury?
2. Private Jets Brought Over $600 million to Central Europe in Q1 2014
Recently the Central European Private Aviation Association released first quarter private jet usage figures for its member countries. While we may think of places like Palm Beach and Cannes when we think of private jets, and the money they bring, the CEPA statistics highlight the importance of private jet travelers for all countries.
Keeping in mind that spend from a single private jet party averages $69,000 (excluding fuel, catering and landing fees) for hotels, land transfers, dining, shopping, touring, meeting facilities, just in the first three months the 2,120 private jets arriving in Poland contributed $146 million to the economy.
To put this in perspective, the government reports that the average spend is $398 per capita for visitors. This means it would take 366,834 ‘normal’ visitors to equal the economic benefit of the 2,120 general aviation flights. Looking at it another way, it would take more commercial airline flights – 2,450 with 150 passengers on board each flight – to equal the contribution of the private jet market.
All together, private jets brought over $600 million in economic benefits to Central Europe during the period. Below is the economic contribution of private jet users during Q1 2014 for other countries in the group. Keep in mind for most of these places, the main tourism season is summer, so the best is yet to come: Poland $146 million Czech Republic $126 million Slovakia $58 million Serbia and Montenegro $52 million Romania $51 million Croatia $40 million Hungary $35 million Slovenia $30 million Bulgaria $23 million Lithuania $23 million Latvia $22 million Estonia $16 million
“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. Up Close With The Super Rich Aboard their Super Yachts…
The best place to study wild animals, the saying goes, is in the jungle, not the zoo. At the same time researching truly Ultra High Net Worths (UHNWs) is very difficult. Roxanne Génier spent time in the jungle of the Super Rich, working as crew aboard superyachts. Wealth Reporter Robert Frank wrote the ‘must read’ book Richistan based on his time as an embedded reporter with a selection of billionaires. Below Génier gives her observations on the way the 0.1 percent live during her time on the high seas and haute ports. I think it provides an excellent glimpse for anyone who is selling products or services to the very rich.
By Roxanne Génier Guest Columnist When you imagine getting a position as a crew member aboard a superyacht, you dream of exotic destinations, lavish surroundings and countless adventures. You envision yourself shaking hands with celebrities, having inspiring conversations with tycoons and creating envy in your surroundings. You will indeed accumulate stories that will last a lifetime, experience the best of what life as to offer, and make connections with la crème de la crème. Sounds like a dream doesn’t it? The reality is somewhat more challenging.
Working aboard a superyacht is a love/hate story. When you become a crew member, you immediately put yourself in the trench for the uber elite. You may need to carry a 6’4″ man so he doesn’t wet his toes; you may have to host a party of 50 as a team of three; or you may visit a harbour 10 times without ever stepping one foot ashore. Think I am lying? How about working 100 hours or more a week, in a 24 hour shift rotation, for 10 months, with less than 7 hours of sleep a night, one break every four days, and just enough time to eat one full meal a day? Sounds like being on a military foreign mission, doesn’t it? This is exactly how I spent the last 10 months of my career in the superyacht industry. Yet, if you ask if I would take another position as a deckhand again, I would say yes. As I write this article about life aboard a superyacht from the beautiful island of Cozumel, I, once again, start dreaming of the adventures.
Having both worked in the Canadian Naval Reserve aboard minesweepers and destroyers and aboard superyachts; I often like to compare the two. Both industries require a certain passion from their crew members; a passion that is rarely seen in a traditional industry. Aboard a ship, men and women work together as a team to achieve an almost unattainable goal. In one hand, you protect a country from all types of invasion; and on the other, you cater to the needs of those who have no limits. After working aboard a superyacht for a few years, you will “Be All That You Can Be” with an expertise in luxury.
To express my claim that a superyacht is the ultimate boot camp within the luxury industry, allow me to share a few personal stories, putting my experience in the Navy alongside my time aboard superyachts. You will quickly understand that what happens on a superyacht is nothing like what you see on HBO’s Below Deck.
Standing Guard: o Navy: The Navy pushes you to your limits but you know that your strength is essential to the safety of your country. I once spent 18 hours in a military rhib protecting an aircraft carrier after 9/11. It was raining and freezing (think Canadian winter). o Superyacht: Yachting also pushes you to your limits, but the sacrifices are sometimes debatable. I once spent 16 hours in a million dollar tender waiting for our charter guests to come back from a night of partying in St-Barths on New Year’s Eve. Once the guests arrived, I had two hours of sleep before my next work day. At the end of an exhausting seven night charter, each crew member was rewarded with a $2,000 tip. You instantly forget that you are extremely tired, and you go ashore to spend some of that money.
Never Leave A Man Behind:
o Navy: Regardless the situation we were in, we never left a man behind. All for one, and one for all. From the Captain to the newest sailor, we did everything as a team. o Superyacht: Yachting can be a little different if you stumble on a bad owner. I was once tasked to go throw out the garbage by tender in Dubrovnik, a three mile ride in a Northern direction. Once I arrived at destination, I received a call from the Captain stating that the owner wanted to make its way south to Montenegro. He was not willing to wait, so the Captain had to find ways to stall the departure. I had no food, no water, no money and just enough fuel to make the seven mile journey to where I met up with them again. This time, I was not driving the million dollar tender; I was actually on a 17″ inflatable rhib in three foot swells. When I arrived I immediately crashed from exhaustion. The Captain felt terrible but the owner didn’t seem to notice my vivid sunburn.
Manage Your Supplies
o Navy: Any military serviceman will tell you that supplies can be sparse when in the field. Waste is unacceptable especially when it comes to water. o Superyacht: Needless to say that basic supply is rarely an issue in yachting. Superyachts produce their own fresh water; therefore the deck crew will rinse down the yacht from top to bottom at least once a day. The concept of having sea salt covering the windows is simply absurd. Bed sheets are washed every single day and food is sometimes thrown out by buckets.Also, when there are no more berries, no worries, take the helicopter for a flight. Need a magician in the Seychelles? Easy, fly one in from the Middle East by private jet. You might consider it expensive to fill up your car with fuel in this economy, how about an $800,000 fuel bill for cruising the Med on your yacht for a few months (pumping gas can literally take up to 10 hours).
Be Prepared for Change
o Navy: Tactical plans change on a regular basis and you need to be able to adapt on a whim. You may not know why you have to move location, but you understand that the decision was taken with regard to your safety or the safety of your ship in mind. o Superyacht: If there is a storm, chances are that charter guests will end up spending time ashore browsing the shops in Cannes, Monaco, Sint Maarten or St Barth purchasing thousands of dollars in luxury goods. One guest returned from such a trip with a $200,000 diamond from a jewelry shop in Sint Maarten. During that time, the crew braced the yacht for high-seas. We often left port after a hurricane to make it in time for an event in another location.
If the sky is overcast with clouds, don’t be surprised if the helicopter is launched to find a patch of sun. As the helicopter guides the superyacht in search of sun, guests can easily work on getting that perfect tan.
One yacht owner once booked a $25,000 villa for a night to give the crew a night off but then changed his mind after visiting the villa for 20 minutes, giving the crew just under two hours to unwind. This is when I called it quits and went back home to Montreal exhausted.
After sharing a few of these personal stories, I have to state a fact: every superyacht is its own entity. Some owners and charter guests are the most pleasant people to work for. They understand the value of their crew and they rarely abuse their power. These are the people you want to follow ashore for your next career.
As a boot camp for the uber elite, working aboard a superyacht prepares you for life ashore in the luxury industry. If you fall in love with the industry, like I did, you will come out of it ready to take your place as a leader in luxury. Be prepared to become an estate manager, a personal assistant, a private jet attendant, a wealth management investor, a right-hand man or like me, a digital marketing expert for the affluent community.
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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 Elite Traveler (audited by BPA Worldwide) is the only audited publication delivered to global locations for private jet travelers. We have global distribution in over 100 countries aboard private jets and in private jet terminals. Each issue is read by over 630,000 Ultra Affluent consumers with an Average Household Income of $5.3 million (Source: Prince & Associates, 2011) www.elitetraveler.com/business
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