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ET Insider – June 23, 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.

With a Net Worth of more than $40 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:

 

Looking for Wealthy Customers? More UHNWs in Wisconsin than Saudi Arabia?  Minnesota beats Russia in Super Rich?  The Long Tail of UHNWs revealed….

 

Conventional wisdom says global capitals are the hang-outs for the Ultra High Net Worth (Net Worth of $30 million +) and their families. And certainly, these are places where many of them travel with some frequency. I’ve recently been speaking to a number of big players in New York real estate and while they say the buyers at the high end of the market come from Iowa to Indonesia, they stay here less often, and they live a global private jet lifestyle.

We also know you can find a cross-section of the Super Rich seasonally in Sardinia, St. Barth’s and Aspen. At other times of year you will find UHNWs over-concentrated in Davos, Augusta, Louisville, Ft. Lauderdale, Monte Carlo, Indianapolis, Flushing or the rotating sites for The Super Bowl, PGA Championship, British Open and so forth. In varying years you can find the Super Rich flocking to the Olympics, Ryder Cup, America’s Cup, FIFA World Cup. The annual General Assembly of the United Nations brings extra UHNWs to New York.

Some of the UHNWs who today and tomorrow may be in Pinehurst could next week be in San Antonio and in coming weeks at any of several cities across Brazil. Others will be in the London suburb of Wimbledon. Others may be simply unwinding anywhere in one of their houses from Maui to the Hamptons, Cannes or even Door County. By the way, Door County is in Wisconsin and million dollar homes are quite common as I came to know when a reader of Elite Traveler bought a $29 million home that was advertised in the magazine.

Wealth-X  produces some interesting research about UHNWs, and their latest report, in conjunction with UBS, breaks out the home base of the very, very rich, by country and in the United States, by state.

If each American state was a country, California would have the third largest UHNW population in the world behind Germany and Japan. On this basis, the Top 10 continues with the United Kingdom, China, New York, India, Switzerland, Texas and Canada. Places 11 through 20 are France, Florida, Brazil, Mexico, Hong Kong, Illinois, Italy, Michigan, Spain and Pennsylvania. These 20 areas represent 67 percent of the 193,685 UHNWs Wealth-X had identified.

Now things get tricky:

The next 121 countries, states and combination of countries listed as “other” in the report are home base for fully 33 percent of the world’s richest families.

For example, there are more UHNW families in Minnesota than in Russia. North Carolina has more Super Rich than the United Arab Emirates. Kentucky, Alabama and Montana each have more UHNWs than Qatar. Colorado, Arizona and Tennessee each have larger Super Rich populations than Turkey, Malaysia or South Africa. So much for emerging economies!  See my analysis below.

The payoff of attracting Super Rich families for luxury providers is huge. The Top 0.1 Percent of U.S. taxpayers (some 117,000 households) is estimated to have spent $214 billion last year on high-end purchases such as watches, jewelry and fashion as well as stays at hotels and resorts, spas and villas.

Yet clearly, the Super Rich at any one time are in many different places. For example, St. Barth’s only has about 300 villas and 200 hotel rooms. Add several dozen mega-yachts and even at peak times, there is only a very small fraction of UHNWs represented. It’s the same with events such as Super Bowl, Art Basel Miami and Kentucky Derby where private jet arrivals usually range between 500 and 1,000.

What does this mean for companies that want to tap into the high spending Super Rich?

To tap into the long tail, luxury providers need to find media that is in many places at once. In fact, even in the Top 20 which make up two-thirds, places such as Ohio, Michigan and Pennsylvania are rarely mentioned as target areas by luxury marketers.

Which brings me back to Door County. There are more UHNW families in Wisconsin than in Saudi Arabia.

UHNW Population by Geography / Percentage of Total

1           GERMANY                            17,820            9.20%

2          JAPAN                                   14,270            7.37%

3          CALIFORNIA                        12,560             6.48%

4          UNITED KINGDOM             10,910            5.63%

5          CHINA                                    10,675            5.51%

6          NEW YORK                          8,945              4.62%

7          INDIA                                     7,850              4.05%

8          SWITZERLAND                   6,330              3.27%

9          TEXAS                                   6,285              3.24%

10        CANADA                               4,980              2.57%

11        FRANCE                                4,490              2.32%

12        FLORIDA                               4,215              2.18%

13        BRAZIL                                  4,015              2.07%

14        MEXICO                                3,365              1.74%

15        HONG KONG                       3,180              1.64%

16        ILLINOIS                                2,770              1.43%

17        ITALY                                     2,075              1.07%

18        MICHIGAN                            1,920              0.99%

19        SPAIN                                    1,625              0.84%

20        PENNSYLVANIA                 1,570              0.81%

21        OHIO                                      1,455              0.75%

22        NORWAY                              1,450              0.75%

23        REST OF LATIN AMER.      1,415              0.73%

24        SOUTH KOREA                   1,390              0.72%

25        WISCONSIN                         1,370              0.71%

26        SAUDI ARABIA                    1,360              0.70%

27        SINGAPORE                        1,355              0.70%

28        MASSACHUSETTS              1,345              0.69%

29        CONNECTICUT                   1,330              0.69%

30        NETHERLANDS                  1,290              0.67%

31        MARYLAND                         1,280              0.66%

32        VIRGINIA                               1,250              0.65%

33        TAIWAN                                 1,245               0.64%

34        MINNESOTA                          1,240              0.64%

35        NEW JERSEY                      1,235              0.64%

36        WASHINGTON                     1,190              0.61%

37        RUSSIA                                 1,180              0.61%

38        NORTH CAROLINA               1,135              0.59%

39        GEORGIA                               1,125              0.58%

40        ARGENTINA                         1,110              0.57%

41        COLORADO                         1,085              0.56%

42        SWEDEN                              1,070              0.55%

43        TENNESSEE                       1,050              0.54%

44        UNITED ARAB EMIRATES  1,050             0.54%

45        INDIANA                                1,030              0.53%

46        ARIZONA                              970                 0.50%

47        TURKEY                                900                 0.46%

48        OKLAHOMA                         890                 0.46%

49        PORTUGAL                          870                 0.45%

50        INDONESIA                          865                 0.45%

51        KUWAIT                                 845                 0.44%

52        MALAYSIA                            840                  0.43%

53        BELGIUM                              810                 0.42%

54        MISSOURI                            800                 0.41%

55        POLAND                                800                 0.41%

56        SOUTH AFRICA                   775                  0.40%

57        DENMARK                            740                 0.38%

58        THAILAND                            720                 0.37%

59        LUXEMBOURG                     660                 0.34%

60        PHILIPPINES                       660                 0.34%

61        COLOMBIA                           635                 0.33%

62        NIGERIA                                600                 0.31%

63        IRELAND                              580                 0.30%

64        AUSTRIA                               565                 0.29%

65        KANSAS                               550                 0.28%

66        ARKANSAS                          550                 0.28%

67        REST OF MIDDLE EAST     550                 0.28%

68        CHILE                                    515                 0.27%

69        EGYPT                                   510                 0.26%

70        GREECE                               505                 0.26%

71        NEVADA                                500                 0.26%

72        DISTRICT OF COLUMBIA   500                 0.26%

73        PERU                                     470                 0.24%

74        UKRAINE                              440                 0.23%

75        VENEZUELA                          435                 0.22%

76        PAKISTAN                            415                 0.21%

77        OREGON                              410                  0.21%

78        LOUISIANA                           400                 0.21%

79        HUNGARY                            400                 0.21%

80        FINLAND                                400                 0.21%

81        KENTUCKY                          385                 0.20%

82        ALABAMA                             380                  0.20%

83        SOUTH CAROLINA              365                 0.19%

84         ISRAEL                                  360                 0.19%

85        MONTANA                            355                 0.18%

86        QATAR                                  345                 0.18%

87        REST OF ASIA                     320                 0.17%

88        WYOMING                            315                 0.16%

89        MISSISSIPPI                         295                 0.15%

90        NEBRASKA                          295                 0.15%

91        CROATIA                              280                  0.14%

92        CZECH REPUBLIC               280                 0.14%

93         RHODE ISLAND                  265                 0.14%

94        ECUADOR                            265                 0.14%

95        REST OF AFRICA                255                 0.13%

96        DOMINICAN REPUBLIC     250                 0.13%

97        GUATEMALA                        245                 0.13%

98        UTAH                                    225                 0.12%

99        HAWAII                                 215                 0.11%

100     HONDURAS                         215                 0.11%

101      IOWA                                     210                 0.11%

102     WEST VIRGINIA                   205                 0.11%

103     BOLIVIA                                 205                 0.11%

104     SYRIA                                    205                 0.11%

105     NICARAGUA                         200                 0.10%

106     VIETNAM                              195                 0.10%

107     IDAHO                                   190                 0.10%

108     NEW HAMPSHIRE               185                 0.10%

109      PARAGUAY                          175                 0.09%

110     IRAQ                                      175                 0.09%

111     LEBANON                             155                 0.08%

112     KENYA                                  155                  0.08%

113     SOUTH DAKOTA                 150                 0.08%

114      EL SALVADOR                    150                 0.08%

115     OMAN                                  150                 0.08%

116     NEW MEXICO                      130                 0.07%

117     KAZAKHSTAN                     130                 0.07%

118     VERMONT                            125                 0.06%

119     URUGUAY                            120                 0.06%

120     PANAMA                               115                  0.06%

121     TANZANIA                            115                 0.06%

122     ANGOLA                               110                 0.06%

123     PUERTO RICO                     105                 0.05%

124     BAHRAIN                              105                 0.05%

125     COSTA RICA                        100                 0.05%

126      BANGLADESH                     90                    0.05%

127     MAINE                                  85                    0.04%

128     UZBEKISTAN                       85                     0.04%

129     SRI LANKA                           75                    0.04%

130     NORTH DAKOTA                 70                    0.04%

131     AZERBAIJAN                       65                    0.03%

132     LIBYA                                    65                     0.03%

133     TUNISIA                                65                    0.03%

134     DELAWARE                          55                    0.03%

135     ETHIOPIA                               55                    0.03%

136     ALASKA                                50                    0.03%

137     TAJIKISTAN                          45                     0.02%

138     CUBA                                     45                    0.02%

139     MONGOLIA                           35                    0.02%

140     ALGERIA                               35                    0.02%

141     MOROCCO                           35                    0.02%

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

Doug.Gollan@elitetraveler.com
 Elite Traveler Magazine 708 Third Avenue, 10th Floor New York, NY 10017   USA

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