Super Rich Plan to Increase Spending According to New Elite Traveler/Prince & Associates Summer Spending Survey |
Summer spending by Households with Net Worth $10 million and Over to
Increase More than 50% compared to 2005
NEW YORK, May 18 /PRNewswire-FirstCall/ -- While the mortgage meltdown
and rising gas prices are causing many Americans to tighten their belts
this summer, those in the ultra-affluent (Net Worth $10 million +) segment
are expected to escalate their expenditures on everything from vacations
and entertaining to apparel, jewelry, watches and electronics. According to
the 2007 Elite Traveler/Prince & Associates Summer Spending Survey, the
Elite Affluent -- those "super rich" consumers whose household net worth
tops $10 million -- will be increasing their summer spending by 55% this
year over summer 2005. Beneficiaries of their dollars include luxury cruise
lines and resorts, high-end watchmakers and manufacturers of designer
apparel, accessories and electronics.
According to the survey of 198 High Net Worth families conducted at the
beginning of May, spending across 17 luxury categories will increase to
$622,202 per household, from $399,187 during the summer period.
"This survey underscores the spending power of the Super Rich and also
reflects that this segment is not impacted by the ups and downs of the
overall economy. In fact they are enjoying a very robust period," says
Douglas Gollan, president and editor-in-chief of Elite Traveler. He adds
"Unlike Mass Affluent consumers who may splurge and charge up credit cards
to buy jewelry or watches for the holidays, it is interesting to see that
the Super Rich spend money on virtually every type of luxury good and
service on an continuous basis."
"Digital" and "Designer" are the Elite Affluent Buzz Words
The three largest growth areas for increased spending are audio-visual
products, up more than 121%; designer apparel and accessories, up more than
112% and luxury resort stays, up more than 78%. In these categories, the
"average" Elite Affluent customer will spend $31,000 on electronics:
$34,000 on apparel and accessories and $41,000 on luxury resort stays.
The Elite Affluent also have their eye on watches and jewelry this
summer. According to the report, 73% of those surveyed will buy luxury
watches or fine jewelry, spending an average of $94,000; an increase of
nearly 50% over summer 2005.
Projected expenditures on summer entertaining also registered big
gains. More than 93% of the Elite Affluent will spend an average of $56,000
on entertaining. Sales of wines and spirits will also increase, reaching
$17,000 (for personal consumption) and $24,000 (for social entertaining).
Vacations and big ticket purchases aren't the only thing driving the
Elite Affluent customer. Nearly 100% of those surveyed said they will be
increasing their charitable giving in the coming months. Survey respondents
will average $82,000 in contributions to their favorite charities this
summer, a $30,000 increase over summer 2005.
Elite Traveler/ Prince & Associates 2007 Summer Spending Survey
Comparison to 2005 Summer Spending
Survey of Households with Net Worth $10 Million +
Dollars Spent Category - 2007 Spending per Affluent Elite Household
Category Category
Spending Spending
Summer Spending * 2007 * 2005 Change 2007/2005
Activity % $ Spent % $ Spent $Change %Change
Yacht Rentals 10.60% $384,000 9.50% $317,000 $67,000 21.14%
Redecorating 44.90% $129,000 30.90% 137,000 ($8,000) -5.84%
Villa Rentals 15.70% $106,000 13.80% $79,000 $27,000 34.18%
Experiential
Excursions 25.80% $103,000 22.70% $79,000 $24,000 30.38%
Jewelry/watches 73.70% $94,000 63.20% $63,000 $31,000 49.21%
Luxury Cruises 47.50% $92,000 43.10% $71,000 $21,000 29.58%
Charitable Giving 97.50% $82,000 98.40% $52,000 $30,000 57.69%
Vacation Home
Rentals 12.10% $82,000 11.80% $64,000 $18,000 28.13%
Out-of-Home Spa
Services 67.70% $61,000 48.70% $49,000 $12,000 24.49%
Summer
Entertaining 93.90% $56,000 92.40% $39,000 $17,000 43.59%
Luxury Hotels 95.50% $48,000 93.40% $36,000 $12,000 33.33%
Luxury Resorts 84.80% $41,000 82.60% $23,000 $18,000 78.26%
At-Home Spa
Services 53.50% $38,000 47.40% $26,000 $12,000 46.15%
Apparel/accessories 92.40% $34,000 86.80% $16,000 $18,000 112.50%
Audio/visual 51.50% $31,000 50.70% $14,000 $17,000 121.43%
Wines and Spirits
for Social
Entertaining 86.90% $24,000 77.00% $19,000 $5,000 26.32%
Wines and Spirits
for Personal
Consumption 84.80% $17,000 74.30% $11,000 $6,000 54.55%
2007 2005 $Change %Change
Total Luxury Summer
Spending/Household $622,202.02 $399,187.50 $223,015 55.87%
*Percentage of those surveyed spending in this category
About Elite Traveler
Established in 2001, Elite Traveler is the private jet lifestyle
magazine. Its award-winning format brings to life the latest in travel,
fashion and private jet lifestyle for its wealthy readers. Elite Traveler
has worldwide distribution aboard private jets and mega-yachts. Elite
Traveler has a BPA audited circulation with a readership of over 400,000
readers per issue in more than 90 countries; its readers are wealthy and
influential, with an average household income of $5.3 million.
About Prince & Associates, Inc.
Prince & Associates, Inc. is the leading research and consulting firm
to the high-net-worth and their advisors. Russ Alan Prince, President of
Prince & Associates, Inc. is the author of more than 35 books on private
wealth and is a highly sought counselor to elite financial practitioners.
Media Contact:
SuJin Oh/ Natalie Martinez, MMG Mardiks
212.219.0759, ext:6771/6774
soh@mmgmardiks.com/ nmartinez@mmgmardiks.com
SOURCE Prince & Associates, Inc.
back to topCONTACT:
SuJin Oh, ext. 6771, soh@mmgmardiks.com, or
Natalie Martinez, ext. 6774, nmartinez@mmgmardiks.com, both of
MMG Mardiks, +1-212-219-0759, for Prince & Associates, Inc.
