CONSUMERS

The Travel Habits of America’s Affluent

by

Doug Gollan

|

This is the featured image caption
Credit: This is the featured image credit

Douglas Gollan, president of Elite Traveler, investigates the latest U.S. wealth and affluence data released by Shullman Research Center

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

Douglas Gollan, president of Elite Traveler, investigates the latest U.S. wealth and affluence data released by Shullman Research Center

First let say I am a Bob Shullman fan. I always enjoyed his work when he was running the MMR Ipso Affluent Survey and having seen him speak found him both insightful and pragmatic.

Bob has been doing his own thing recently through Shullman Research Center and is now publishing regularly luxury related consumer research that while focused on the Mass Affluent does touch the lower edges of the rich.

“Insights into Luxury” out this month examines American consumers and their travel plans for the coming 12 months.

Bob’s research covers households starting with a $75,000 Household Income and then has breaks at $150,000, $250,000 and $500,000.

“ It takes a $1 million + household income to be a heavy user of luxury goods ”

First, take a look at how Shullman divides his data using 2012 U.S. Census data:

Top 1% = $500,000 Household Income (HHI), 1.4 million households
Top 2% = $250,000 to $499,000 HHI, 5.3 million households
Next 8% = $150,000 to $249,999 HHI, 19.9 million households
Next 28% = $75,000 to $149,999 HHI, 65 million households

Together these four groups represent 40% of U.S. households. For the purposes of my review, I am taking a look at the core Mass Affluent (75k to 250k) and Top 1% (500k +).

The Top 1% are:

– Twice as likely to be traveling outside the US than the Mass Affluent (59% to 28%)
– Nearly 250% more likely to be planning a vacation outside the US (49% to 21%)
– Are again 250% more likely to be planning a international adventure trip (23% to 9%)
– More than twice as likely to plan on staying at five star resorts (24% to 11%)
– 300% more likely to stay at a luxury boutique hotel or resort (11% to 3%)

“ The Top 1% are twice as likely to be traveling outside the US than the Mass Affluent ”

The Top 1% are more likely to be considering trips to the following places than Mass Affluents as follows:

– California (34% to 17%)
– Nevada (17% to 13%)
– Illinois (9% to 4%)
– Colorado (11% to 4%)
– Hawaii (22% to 13%)

Looking internationally, nearly twice as many in the Top 1% group (when compared to the Mass Affluent group) are considering France (15% to 7%), Italy (26% to 9%), Mexico (21% to 14%) and Bermuda (7% to 1%). Central America and the UK were of more interest to the Mass Affluent than the Top 1%.

When it comes to international travel plans, The Top 1%:
– 32% expect to stay in a five star resort (13% for Mass Affluent)
– Spend approximately $19,200, about three times as much as Mass Affluent

Private jet travelers spend approximately $69,000 per destination, so clearly while the research gets to an affluent audience, it is not speaking to the global super rich.

That said, it does show that for destination promoters and luxury travel providers, the simple formula is the more affluent the consumer, the more likely they will spend on luxury travel, including segments such as adventure travel, both in the U.S. and abroad.

To further investigate wealth & affluence on Luxury Society, we invite your to explore the related materials as follows:

Key Insights from The 2013 Wealth Report by Knight Frank
The Rich Just Keep Getting Richer
Why Luxury Brands Should Target the Top 1%

Doug Gollan
Doug Gollan

Co-Founder and Former President

Elite Traveler is bi-monthly, audited by BPA and distributed aboard private jets, mega-yachts and other high-end venues in over 100 countries around the world. Elite Traveler Superyachts is distributed globally aboard super yachts and in private jet facilities serving super yacht marinas. With Elite Traveler’s award winning format, it is focused on the superyacht lifestyle. Elite Traveler Asia will be launched in June 2011 bringing the best of the private jet lifestyle to Asia’s rapidly growing private jet traveler market. Each issue will contain original editorial specifically targeted to the Asia based consumer who flies by private jet. Elite Traveler Getaways is our regional travel magazines with editions for the Western US, Eastern US and coming in 2011 Europe. Each issue (Winter and Summer) focus on private jet getaway ideas for our high travel audience. Elitetraveler.com is the private jet lifestyle online. Over 80 percent of users are private jet travelers and over 70 percent say our content influences their purchasing decisions Co-Author, The Sky’s The Limit – Marketing Luxury to the New Jet Set

CONSUMERS

The Travel Habits of America’s Affluent

by

Doug Gollan

|

This is the featured image caption
Credit : This is the featured image credit

Douglas Gollan, president of Elite Traveler, investigates the latest U.S. wealth and affluence data released by Shullman Research Center

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

Douglas Gollan, president of Elite Traveler, investigates the latest U.S. wealth and affluence data released by Shullman Research Center

First let say I am a Bob Shullman fan. I always enjoyed his work when he was running the MMR Ipso Affluent Survey and having seen him speak found him both insightful and pragmatic.

Bob has been doing his own thing recently through Shullman Research Center and is now publishing regularly luxury related consumer research that while focused on the Mass Affluent does touch the lower edges of the rich.

“Insights into Luxury” out this month examines American consumers and their travel plans for the coming 12 months.

Bob’s research covers households starting with a $75,000 Household Income and then has breaks at $150,000, $250,000 and $500,000.

“ It takes a $1 million + household income to be a heavy user of luxury goods ”

First, take a look at how Shullman divides his data using 2012 U.S. Census data:

Top 1% = $500,000 Household Income (HHI), 1.4 million households
Top 2% = $250,000 to $499,000 HHI, 5.3 million households
Next 8% = $150,000 to $249,999 HHI, 19.9 million households
Next 28% = $75,000 to $149,999 HHI, 65 million households

Together these four groups represent 40% of U.S. households. For the purposes of my review, I am taking a look at the core Mass Affluent (75k to 250k) and Top 1% (500k +).

The Top 1% are:

– Twice as likely to be traveling outside the US than the Mass Affluent (59% to 28%)
– Nearly 250% more likely to be planning a vacation outside the US (49% to 21%)
– Are again 250% more likely to be planning a international adventure trip (23% to 9%)
– More than twice as likely to plan on staying at five star resorts (24% to 11%)
– 300% more likely to stay at a luxury boutique hotel or resort (11% to 3%)

“ The Top 1% are twice as likely to be traveling outside the US than the Mass Affluent ”

The Top 1% are more likely to be considering trips to the following places than Mass Affluents as follows:

– California (34% to 17%)
– Nevada (17% to 13%)
– Illinois (9% to 4%)
– Colorado (11% to 4%)
– Hawaii (22% to 13%)

Looking internationally, nearly twice as many in the Top 1% group (when compared to the Mass Affluent group) are considering France (15% to 7%), Italy (26% to 9%), Mexico (21% to 14%) and Bermuda (7% to 1%). Central America and the UK were of more interest to the Mass Affluent than the Top 1%.

When it comes to international travel plans, The Top 1%:
– 32% expect to stay in a five star resort (13% for Mass Affluent)
– Spend approximately $19,200, about three times as much as Mass Affluent

Private jet travelers spend approximately $69,000 per destination, so clearly while the research gets to an affluent audience, it is not speaking to the global super rich.

That said, it does show that for destination promoters and luxury travel providers, the simple formula is the more affluent the consumer, the more likely they will spend on luxury travel, including segments such as adventure travel, both in the U.S. and abroad.

To further investigate wealth & affluence on Luxury Society, we invite your to explore the related materials as follows:

Key Insights from The 2013 Wealth Report by Knight Frank
The Rich Just Keep Getting Richer
Why Luxury Brands Should Target the Top 1%

Doug Gollan
Doug Gollan

Co-Founder and Former President

Elite Traveler is bi-monthly, audited by BPA and distributed aboard private jets, mega-yachts and other high-end venues in over 100 countries around the world. Elite Traveler Superyachts is distributed globally aboard super yachts and in private jet facilities serving super yacht marinas. With Elite Traveler’s award winning format, it is focused on the superyacht lifestyle. Elite Traveler Asia will be launched in June 2011 bringing the best of the private jet lifestyle to Asia’s rapidly growing private jet traveler market. Each issue will contain original editorial specifically targeted to the Asia based consumer who flies by private jet. Elite Traveler Getaways is our regional travel magazines with editions for the Western US, Eastern US and coming in 2011 Europe. Each issue (Winter and Summer) focus on private jet getaway ideas for our high travel audience. Elitetraveler.com is the private jet lifestyle online. Over 80 percent of users are private jet travelers and over 70 percent say our content influences their purchasing decisions Co-Author, The Sky’s The Limit – Marketing Luxury to the New Jet Set

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