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ET Insider – September 17, 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!

Follow Doug Gollan on Twitter: 

https://twitter.com/EliteTravelerDG

In this edition:

1.  Pay Gap Between 1 Percent And Everybody Else Reaches Widest Point Since 1920s

2. Who Said Tech Billionaires Fly Economy Class? Google It!

3. Macau Takes Off

4. Rich and Young – Some Under 30 UHNWs in the UK

 

1. Pay Gap Between 1 Percent And Everybody Else Reaches Widest Point Since 1920s

While during the 90s and the post-2001 bull market aspirational consumers enjoyed increasing wealth, the post-2009 period has seen nearly 95 percent of the gains go to the Top 1 percent (Household Income $394,000+).  The “Next 9 percent” who make $114,000 to $393,000 – the core aspirational consumer –  market has seen few gains since the recession/depression.

Highlights from a recent Associated Press article:

– The gulf between the richest 1 percent and the rest of America is the widest it’s been since the Roaring ’20s.

– The very wealthiest Americans earned more than 19 percent of the country’s household income last year – their biggest share since 1928, the year before the stock market crash. (They also control nearly half of the country’s wealth).

– U.S. income inequality has been growing for almost three decades, according to an analysis of Internal Revenue Service figures dating to 1913 by economists at the University of California, Berkeley, the Paris School of Economics and Oxford University.

– In 2012, the incomes of the top 1 percent rose nearly 20 percent compared with a 1 percent increase for the remaining 99 percent.

– Since the recession officially ended in June 2009, the top 1 percent have enjoyed the benefits of rising corporate profits and stock prices: 95 percent of the income gains reported since 2009 have gone to the top 1 percent.

– THE BIG DIFFERENCE: That compares with a 45 percent share for the top 1 percent in the economic expansion of the 1990s and a 65 percent share from the expansion that followed the 2001 recession.

– The top 1 percent of American households had pretax income above $394,000 last year.

– The top 10 percent had income exceeding $114,000.

– The income figures include wages, pension payments, dividends and capital gains from the sale of stocks and other assets. They do not include so-called transfer payments from government programs such as unemployment benefits and Social Security.

– The top 1 percent’s share of income bottomed out at 7.7 percent in 1973 and has risen steadily since the early 1980s, according to the analysis.

– Economists point to several reasons for widening income inequality. In some industries, U.S. workers now compete with low-wage labor in China and other developing countries. Clerical and call-center jobs have been outsourced to countries such as India and the Philippines.

– Increasingly, technology is replacing workers in performing routine tasks. And union power has dwindled. The percentage of American workers represented by unions has dropped from 23.3 percent in 1983 to 12.5 percent last year, according to the Labor Department.

– The changes have reduced costs for many employers. That is one reason corporate profits hit a record this year as a share of U.S. economic output, even though economic growth is sluggish and unemployment remains at a high 7.2 percent.

What’s your strategy to build your brand with the 1 percent?

“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. Who Said Tech Billionaires Fly Economy Class? Google It!

While they may wear flip flops and shorts to the office, every so often we get a glimpse behind the lavish lifestyles of the Tech Super Rich. Think about Sean Parker’s wedding. The fines alone for the use of public park space were over $1 million. There were glimpses of Mark Zuckerberg’s lavish Italian honeymoon (yes, when Facebook filed for its IPO it was revealed he and COO Sheryl Sandberg were serial private jet users despite their supposed dedication to flying economy class). One tech billionaire has bought jewelry multiple times from Elite Traveler.

The most recent glimpse comes courtesy of a deal where Google was able to gain discounted fuel prices for its fleet of seven jets – including a Boeing 767 and Boeing 757 – in a complex deal with the U.S. Defense Department.

A recent Wall Street Journal piece tracked nearly 2,500 flights over five-and-a-half years via FAA records. Many flights outside of the U.S. aren’t counted.

So where did Google top executives fly to? In the past year destinations included Nantucket, Boston, Teterboro, Miami, Las Vegas, Bozeman MT, Los Angeles, Denver, Zagreb, Washington DC, Aspen, Fiji, Newark, Trieste, Haley ID, Tahiti, Los Cabos, Chicago, Death Valley National Park, Desert Rock NV, London, Iceland, Nice, Sardinia, Telluride, Milan, Orange County, Southampton NY, La Paz Mexico, Pisa Italy, Savannah GA, San Diego, Seoul, Palomar CA, Palm Springs, Kona HA, Amsterdam, Saint Maarten, Santa Barbara, Panama City, Anguilla, Hilton Head, Juneau AK, Sacramento, Page AZ, Tortola BVI, Tahoe, Seattle, Antigua, Napa CA, Kahului, Kirbati, West Palm Beach, Honolulu, Santa Fe NM, Guam, Bangor ME, Puerto Vallarta, Appleton WI, Sedona AZ, Wilmington OH, Scottsdale, Tuscaloosa AL, Raleigh-Durham, Philadelphia, Columbus OH, Copenhagen, Ithaca NY, Long Beach, Richmond VA, Long Island, Martha’s Vineyard, Providence RI, Lansing MI, Corsica, Livingston MT, Madrid and Dallas.

As we say about elite travelers, the private jet is their living room. Want to reach them? Talk to us!

“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. Macau Takes Off

According to Macau Business Daily, private jet movements were up 21 percent in the first seven months of 2013. Private jet landings and take-offs are growing faster so far this year and the airport operator believes demand from big-spending businessmen will continue growing in the future

Macau International Airport Co Ltd (CAM) said in a press statement that business jet movements in the first seven months of this year reached 1,090, about 140 per month.

This growth rate is faster than during the past six years, when private jet movements increased at an average annual rate of 16.3 percent, the operator said.

If the growth pace remains unchanged for the remaining months of 2013, the annual number of private jet landings and take-offs will for the first time exceed 2,000, according to Business Daily calculations based on data provided by CAM.

“Looking at the future development of Macau’s leisure tourism, there will be a large market for high-end business trips,” the company said in its statement.

“The demand for business aviation will then grow further more,” said CAM, while noting that a planned new hangar would be able to cater to this demand.

CAM launched a tender for the construction of a private jet hangar in April, a project that was slated to take about 10 months.

“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. Rich and Young – Some Under 30 UHNWs in the UK

Recently The Daily Mail profiled some of Britain’s Ultra High Net Worth youngsters. Below a list of the celebrity private jet setters:

– The 26-year-old heir to H&M, Tom Persson, topped the Sunday Times’ 30 richest people under 30 list this year with a staggering estimated fortune of $450 million. Tom and his brother Karl-Johan are the London-based sons of the richest man in Sweden, Stefan Persson, whose father Erling Persson founded H&M in Västerås, Sweden, in 1947. The family retains a 36 per cent stake in the business.

– Harry Potter actor Daniel Radcliffe, 24, came second on the list with a fortune of $90 million.

– Radcliffe’s Harry Potter co-star Emma Watson, 23, also made the list with a fortune of $42 million.

– Another Harry Potter star, Robert Pattinson, 27, came third with a fortune of $70 million following his success with the Twilight films.

– Actress Keira Knightley, 28, who has starred in films including Pirates of the Caribbean and Atonement, was fourth on the list with a reported $45 million fortune.

– Singer Adele, 25, is Britain’s richest musician under 30 with an estimated fortune of $45 million, according to the Rich List. Adele rose to fame after a friend posted her demo on Myspace in 2006 and XL Recordings offered her a contract.

– She is closely followed on the list by Cheryl Cole, 30, who has amassed a fortune of $30 million.

The UK is the second largest market for Elite Traveler.

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. 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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