February 18, 2009

Elite Traveler Insider

By Douglas D. Gollan, President and Editor-in-Chief, Elite Traveler Magazine  

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. The Renaissance of Luxury, From The Wall Street Journal

2. Private Aviation: Just some Facts and Figures:

3. What Private Jet Owners Plan to Spend in 2009

4. Elite Traveler Launches Online Watch Buyer's Guide at elitetraveler.com

1. The Renaissance of Luxury, From The Wall Street Journal

Robert Frank, the tuned in Wealth Editor of The Wall Street Journal last week gave a very nice interview of recent research conducted by Prince & Associates with owners of private jets. The story is below:

"A new survey from Prince and Associates shows that true luxury - goods that are rare, expertly made and sold to a select few - may be making a comeback. And the truly rich couldn't be happier.

The survey, which polled 108 private jet owners with a mean net worth $116 million, found that 94% of those surveyed defined luxury as "for oneself," rather than for the masses (2.8%). That marks a big change from last year, when 37% agreed that luxury should also be for the masses.

What's more, 92% said they feel no guilt over luxury spending today, since they said the money was hard-earned. (So much for luxury shame among the jet set). And 73% said a true luxury brand is a reward for being elite.

"What you're seeing is a shift to real elitism," says Russ Alan Prince, the president of Prince Assoc. "The rich like it better that everybody can't be part of the luxury boom anymore." Mr. Prince said the fall of the so-called mass affluent or "trading up" crowd could returns luxury its roots - selling super-crafted, little-known status to a select few. Needless to say, Tiffany charm bracelets, though labeled as luxury, convey about as much status as a mood ring.

"Luxury is becoming luxury again," he said. "I say we're entering a luxury Renaissance." Granted, even the superrich have cut back, with most in the survey saying they plan to spend less on luxury goods. But they plan to buy fewer goods of higher quality, rather than scrapping luxury altogether."

If you would like a full copy of the research, please email me at douggollan@aol.com.

2. Private Aviation: Just some Facts and Figures:

Obviously if there are some people who shouldn't be using other people's money to fly around on private jets, but those folks are in the minority. Before the general media paints all private jet users with the same brush, courtesy of the National Business Aviation Association here are some facts I thought were interesting:

FACT:
Business aviation contributes $150 billion to U.S. economic output, and employs more than 1.2 million people.

FACT:
The vast majority of general aviation aircraft used for business worldwide are manufactured, operated, serviced and maintained in the United States. Even the minority of those planes manufactured outside the U.S. are often "completed," adding avionics, electronics, automation systems, engines, paint, interiors and other aircraft components manufactured here in the U.S.

FACT:
Business aircraft manufacture is one of the remaining sources of good manufacturing jobs in this country - the kind of jobs we can keep in the U.S. in the 21st century. It is also one of the few industries still contributing to the nation's positive balance of trade.

FACT:
The flights made by business airplanes require support. Schedulers, dispatchers, maintenance technicians, pilots, training professionals and airport employees are just a few of the many support professions involved in business aviation.

3. What Private Jet Owners Plan to Spend in 2009

While everyone is cutting back, including the Super Rich, a recent survey of 108 private jet owners by Prince & Associates (Item One) revealed that some splurges and super splurges are still being planned. Some examples:

    WATCHES: 25.9% are Likely/Very Likely to Spend $15,000 to $75,000 on a single watch, while 13.9% will spend $75,000 +

    JEWELRY: 66.7% are Likely/Very Likely to Spend $15,000 to $75,000 on a single piece of jewelry, while 39.8% will spend $75,000 +

    FASHION: 73.1% are Likely/Very Likely to Spend $10,000 to $50,000 in a single fashion shopping spree, 24.1% expect to spend over $50,000

    RESORTS: 45.4% are Likely/Very Likely to Spend $10,000 to $50,000 on a single stay; 37% are planning to spend $50,000 +

    AUTOMOTIVE: 22.2% are Likely/Very Likely to Spend $50,000 to $150,000 on a car; 20.4% plan to spend $150,000 +

4. Elite Traveler Launches Online Watch Buyer's Guide at elitetraveler.com

Over 117 watch brands are featured in Elite Traveler's new exclusive "Official Watch Buyer's Guide."

It is no secret Elite Traveler has become the worldwide leader in coverage of timepieces targeted to elite travelers (those who both like fine watches and can afford them - an important combination if you are trying to sell watches).

Our all-star team of experts includes the Father of Watch Auctions Osvaldo Patrizzi, Award-winning watch journalist Elizabeth Doerr, and Paris-based Jessica Michault who is also Style Editor for The International Herald Tribune. Our coverage in every issue includes fashion shoots of top timepieces plus reviews of these exquisite machines by our experts.

But when you have a private jet, sometimes you want more! So at the request of our readers, we now are able to private a literal shopping guide to what our team considers the best of the best, both with new and signature pieces.

To get a first-hand look, visit www.elitetraveler.com and check out the Elite Recommends section in the top center of the home page. I am excited to report in the first two weeks there were over 600 downloads of this impressive guide.

Watch companies that are included are able to buy additional advertorial pages if they have timepieces they would like to showcase to elite travelers! Ahhh, the private jet lifestyle. Not bad!