Uber Wealthy Planning Increase Spending This Summer
Spending to Significantly Increase in Many Categories, According to the Elite Traveler/Prince & Associates Summer 2005 Spending Survey
NEW YORK, June 20 /PRNewswire/ -- While gas prices, exchange rates and wavering consumer confidence temper summer spending forecasts for most Americans, the wealthiest segment, the Elite Affluent (Net Worth of $10 million+) will drop millions of dollars on everything from jewelry and watches to luxury hotel stays and private yachts this summer.
Spending in 9 of 16 categories measured was up at least $5,000 for the period, while six categories showed spending in line with last year and only one category showing any decline, according to the Elite Traveler magazine/Prince & Associates Summer 2005 Spending Survey, released today. The survey polled a total of 304 Americans with a Net Worth of at least $10 million and was conducted May 23rd to May 30th on behalf of Elite Traveler magazine.
"These findings are in line with other economic data which shows the rich are getting richer. The significance is that increased spending by the Elite Affluent provides trickle down economic benefits and this research clearly shows the rich are continuing to spend lavishly," said Douglas D. Gollan, President and Editor-in-Chief of Elite Traveler, the luxury lifestyle magazine of the Elite Affluent which is distributed worldwide aboard private jets and mega-yachts. "The amount of money spent by the Elite Affluent segment of the population is really staggering, particularly when you consider that we generally consider people who make six figures to be affluent."
Among the categories seeing the biggest increase for spending for the Elite Affluent were yacht rentals where projected spending jumped from $266,000 to $317,000 and luxury hotels, resorts and spas which saw spending increase from $71,000 to $98,000. The amount the Elite Affluent plan to spend on watches and jewelry over the summer increased from $55,000 to $63,000 while fashion accessories purchases (handbags, shoes) is projected to increase from $10,000 to $16,000. Redecorating jumped from $114,000 to $137,000 while out-of-home spa services increased to $49,000 from $41,000, charitable giving moved to $52,000 from $47,000 and summer entertaining increased from $34,000 to $39,000. Money spent on luxury cruises is expected to increase from $62,000 to $71,000.
"This is very good news for the luxury segment of the economy. For most high-luxury companies a small percentage of customers account for a large percentage of profits. This research shows that companies that depend on the trade of the uber wealthy will continue to see strong sales growth for the second half of the year," Gollan said.
Spending Comparison by Category - 2005 vs. 2004 for the Elite Affluent
Activity 2005 Summer 2004 Summer $Change
Spending Spending
Luxury Cruises $71,000 $62,000 +$9,000
Experiential Excursions $79,000 $82,000 **
Luxury Hotels/Resorts/Spas $98,000 $71,000 +$27,000
Vacation Home Rentals $64,000 $80,000 ($16,000)
Yacht Rentals $317,000 $266,000 +$51,000
Summer Entertaining $39,000 $34,000 +$5,000
Charitable Giving $52,000 $47,000 +$5,000
Wines and Spirits
for Personal Consumption $11,000 $8,000 **
Wines and Spirits
for Social Entertaining $19,000 $22,000 **
At-Home Spa Services $26,000 $23,000 **
Out-of-Home Spa Services $49,000 $41,000 +$8,000
Redecorating $137,000 $114,000 +$23,000
Jewelry/Watches $63,000 $55,000 +$8,000
Electronics $14,000 $11,000 **
Fashion Accessories $16,000 $10,000 +$6,000
Villa Rentals $79,000 $81,000 **
** Changes of less than $5,000 are not considered significant
Source: Elite Traveler/Prince & Associates June 2005
About Elite Traveler:
Elite Traveler is a bi-monthly luxury travel and lifestyle magazine published exclusively for the International community of Elite Affluent consumers. 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 http://www.elite-traveler.com/ .
About Russ Prince & Associates:
Russ Alan Prince, president of the market research and consulting firm Prince & Associates Inc., is a leading authority on the private wealth industry. Mr. Prince consults to high-net-worth families on accessing various family office and wealth management services. He also works with financial and legal experts who provide cutting-edge strategies and concepts to families with exceptional wealth. Mr. Prince is a columnist with various publications and has authored over 25 books on financial strategies for the wealthy.
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