Hail to the Affluent! Bringing New Life to Luxury Marketing-New Research

If The Affluent Don’t Lead Us Out of the Recession, Then Who Will?

-from Luxury Travel 360
That is the question raised by the results of the 2009 Ipsos Mendelsohn Affluent Survey, which deals in depth with the patterns and plans of affluent consumers. We were privileged to attend the presentation and, while the survey deals in many product categories beyond travel – it demonstrates the power of this market base. And, through conversations with Bob Shullman, who heads up Ipsos Mendelsohn, we were able to get specific insights into travel.

And why should we care about the affluent? As Shullman said, “While one in five households in the U.S. have incomes of $100,000 and higher – they represent half of all income; and 80% of wealth. They are 2.3 times more likely to buy upscale and luxury goods; and they will spend four times more on these products.”

The upshot, concludes Shullman: “I can’t say unequivocally that the affluent will lead us out of the recession, but they are poised to do so and the next few months will tell the story. Meanwhile, there are millions of them with plans to spend – and these are people whose expenditures have remained high through this economy. They are a positive thinking group.”

More highlights from the presentation:

• 14.8 million affluents plan to take a cruise or a trip/vacation outside the U.S. in the next 12 months.In 2008, affluent households spent an average of $8741 on all travel – with $5,582 on personal travel and vacations; and $7,245 on business travel. They spent $6,037 on travel within the U.S.; $7,436 on travel outside the U.S.
• There has been a “dramatic change” in how the affluent manage their travel. While many still believe the affluent are not as Internet-oriented as others, in fact 98% of them are online – compared to 70% of the rest of the population.
• Discretionary expenditures on travel comprised 16% of the total spend by the affluent – up from 14% in 2008. –very close to the leaders in all purchase categories — personal insurance (18%) and home related (19%)
• Destinations visited by the affluent for vacation/personal reasons in past 3 years:
  • Canada/Mexico/Central or South América – 6.4 million families and individual travelers
  • Caribbean and Bermuda – 4.9 million
  • Europe – 4.0 million
  • Asia – 1.4 million
  • Pacific Rim: 0.5 million
  • Middle East – 0.4 million
  • Africa – 0.3 million

What motivates 7.6 million Globalist Affluents in travel planning: Read more here