The Summer Supplement of Elite Traveler Magazine/Prince
Luxury Spending Survey Finds That Spending by
the Wealthiest Americans
Will Sizzle this Summer
NEW YORK June 25, 2004 -- Elite Traveler released the results of the
Summer Supplement to its 2004 Luxury Spending Survey, which was commissioned
to and conducted by the wealth management consulting firm of Prince and
Associates. The results were announced today by Douglas D. Gollan, President
and Editor-in-Chief of Elite Traveler.
The Summer Supplement of the Elite Traveler 2004 Luxury Spending Survey
analyzed spending habits of over 400 individuals who were segmented based
upon net worth. Elite Affluent individuals are those with a Net Worth in
excess of $10 million; and Upper Affluent individuals are those with a
Net Worth of $1 to $10 million. Of those surveyed, Elite Affluent represented
21.2% and 78.8% were Upper Affluent.
The survey shows there are significant differences in both planned travel
and spending between the Elite Affluent and Upper Affluent.
With regard to the effects of terrorism on Summer Travel, findings from
the Summer Supplement of the 2004 Luxury Spending Survey include the following,
83.5% of Elite Affluents are planning to travel to Europe this summer as
opposed to 41.7% of the Upper Affluents surveyed.
Of those not planning to travel to Europe this summer:
89.5% of Elite Affluents will be taking more extensive security precautions
when traveling to, from and within Europe, as opposed to only 29.8% of
the Upper Affluents polled.
13.3% of Elite Affluents were motivated not to travel to Europe as a result
of terrorism, as compared to 66.5% of the Upper Affluents polled.
As pertains to Summer Travel & Spending Trends, the Summer Supplement
of the 2004 Luxury Spending Survey indicates the following:
20.0% of Elite Affluents were motivated not to travel to Europe due to
the instability in the Middle East in comparison to 55.3% of the Upper
Elite Affluents are going to travel in style this summer:
Elite Affluents will also be spending large amounts of money this summer,
much more so than the Upper Affluent:
20.9% plan to charter a mega yacht (over 80 feet)
37.4% plan to use fractional aircraft, use a private jet card or charter
a private jet
79.1% will travel with personal staff or attendants
75.8% will stay in a minimum of a one bedroom suite at a five star luxury
hotel or resort
Approximately 31% of both Elite Affluents and Upper Affluents plan to
take between two and three weeks vacation this summer.
This summer, Elite Affluents will spend, on average:
Elite Affluents have very active lifestyles, and plan on spending accordingly.
This summer, Elite Affluents will spend:
$266,000 on private yacht related rentals. The Upper Affluent are not planning
to charter private yachts this summer.
$81,000 on private villa related rentals. The Upper Affluent will spend
$25,000 on average.
$62,000 on luxury cruises. The Upper Affluent will spend $18,000 on average.
$82,000 on experiential excursions (safaris, etc.). The Upper Affluent
will spend $7,000 on average.
$71,000 on luxury hotels/resorts and spas. The Upper Affluent will spend
Said Mr. Gollan about the findings from the Summer Supplement of the Elite
Traveler 2004 Luxury Spending Survey, "This survey re-enforces the fact
that the 'heavy users' of luxury products and services are, without doubt,
the Elite Affluent. From a marketing perspective, 99% of this group has
a Household Income of $400,000 or more, and more than two-thirds have a
Household Income of $1 million or more. I think the message for those selling
luxury goods and services is that the traditional targets of $150,000+
Household Income are way too low and, in fact, simply miss the mark."
$47,000 on charitable giving. On average, the Upper Affluent are planning
to donate $2,000.
$114,000 on redecorating. On average, the Upper Affluent are planning to
spend $5,000 this summer.
$34,000 on entertaining. On average, the Upper Affluent are planning to
$55,000 on jewelry and watches. On average, the Upper Affluent are planning
to spend $8,000.
Elite Traveler will continue to monitor these purchasing trends and
will conduct the survey on a semi-annual basis. This survey represents
an ongoing dialogue the magazine has created to meet the needs of the evolving
luxury lifestyle market, and Elite Traveler will periodically make the
results of its surveys available to the media, advertising and marketing
About Elite Traveler:
Elite Traveler is a bi-monthly luxury travel and lifestyle magazine
published exclusively for the International community of Elite Affluent
consumers ($910,000+ household income). Launched in 2001, each issue of
Elite Traveler explores subjects that embody the essence of luxury -- the
best in travel, fashion and jewelry, automotive, private jets and yachts.
Elite Traveler is distributed exclusively through private jets, mega yachts,
premier country clubs, first-class lounges, luxury spas, professional sports
locker rooms and its subscriber-base. For more information, visit www.elite-traveler.com.
About Prince & Associates:
Prince & Associates is the leading authority on the ultra-affluent.
Chairman Russ Prince has authored over 25 books on financial strategies
for the wealthy. Mr. Prince is a contributor for Institutional Investor
and serves as an advisor for Personal Financial Advisors to the wealthy.