"New Jet Set" loves to spend, spend, spend

The super rich always have been known to be different from the "average Joe;' but a recent study by Elite Traveler magazine redefines the New Jet Set and reveals just how different these individuals are by analyzing their spending habits. For instance, traveling commercial first class no longer qualifies one for membership in the New Jet Set. Today, with air travel more taxing and first-class cabins becoming less exclusive and filled with upgrades and discounts, the New Jet Set now sets its sight on private jet travel.

The study surveyed 661 private jet owners with an average income of $9,200,000 and a net worth of $89,300,000. Most of those surveyed are self-made millionaires who still draw multimillion dollar annual salaries. The New Jet Set is a powerful, privileged group that makes up less than one percent of the U.S. population, compared with affluent households with an average annual income of $75,000-$200,000 which make up 21% of the population.

The study takes a look at 14 key luxury categories, listed in order of highest expenditure per person annually: Fine Art ($1,746,000), Home Improvement ($542,000), Yacht Rentals ($404,000), Jewelry ($248,-000), Luxury Cars ($226,000), Events at Hotels and Resorts ($224,000), Villa and Chalet Rentals ($168,000), Stays at Hotels and Resorts ($157,000), Watches ($147,000), Cruises ($138,000), Fashion and Accessories ($117,000), Spas ($107,000), Experiential Travel ($98,000), and Wine and Spirits ($29,000).

Findings show that luxury brand companies must take an entirely different psychological approach when selling to the high-net-worth spenders because they are a different breed from the general affluent consumer. They spend freely, frequently, and extravagantly. They not only have the interest and resources to purchase exclusive, expensive items, but their fame and wealth add a level of distinction to the luxury brands they are buying.

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COPYRIGHT 2008 Gale, Cengage Learning