2007 summer spending survey conducted by prince & associates may 2007
TRANSCRIPT
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2007 SUMMER SPENDING SURVEY
Conducted by Prince & Associates
May 2007
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President, Prince & Associates, Inc.
• Consultant to financial institutions and high-end financial advisors and
lawyers
targeting the ultra-affluent
• Institutional clients include:
AIG, American Express, Bank of New York, Chase, Citigroup,
Bear Stearns, Goldman Sachs, Merrill Lynch and Morgan Stanley
• Contributor to Institutional Investor
• Author of over 35 books focused on wealth management for the ultra-
affluent
• Regularly quoted by Wall Street Journal as expert on high-net worth
individuals
RUSS ALAN PRINCE
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• Representative Sample of high net worth individuals obtained
through lawyers and financial advisors
• Survey conducted by telephone and in-person interviews
• 198 individuals were surveyed, each with a Net Worth of $10
million +
SURVEY PARTICIPANTS
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SURVEY HIGHLIGHTS
• Survey participants plan to spend an average of $622,202 on luxury goods and services across 17
different categories during Summer 2007.
• Spending across all categories will climb by 56% over 2005, the last time the Summer Spending
survey was conducted.
• Among the highest growth categories projected for elite spending are Electronics (up 121% to
$31,000 spending over the summer), Apparel and Accessories (112% increase to $34,000), Luxury
Resorts (78% to $41,000) and Jewelry and Watches (49% gain to $94,000).
• According to Russ Prince of Prince & Associates, “The Super Wealthy are not impacted by external
influences such as gas prices, job outlook and mortgage rate increases.”
• Some other highlights: 48% plan to take a cruise, spending $92,000; 95% will stay at Luxury Hotels
(separate from Resorts), spending $48,000; 68% will go to Spas, spending $61,000; 26% will take
Experiential Trips, spending $103,000; 16% will rent Villas, spending $106,000, 45% will redecorate,
spending $129,000; 85% will purchase Wines and Spirits for either Entertaining or Personal
Consumption, spending $41,000, 11% will rent yachts, spending $384,000.
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Summer Spending 2007 2005 Change 2007 / 2005
Activity % $ Planned % $ 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 – Social Entertaining 86.90% $24,000 77.00% $19,000 $5,000 26.32%
Wines and Spirits – Personal Consumption 84.80% $17,000 74.30% $11,000 $6,000 54.55%
Total Luxury Summer Spending Per Household
$622,202.02
$399,187.50
$223,015 55.87%
SURVEY RESPONSES2007 Planned spending v. 2005 Actual
SpendingIn descending order by $ change
N= 198, 2007
N= 304, 2005
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Summer Spending2007 2005 Change 2007 / 2005
Activity % $ Planned % $ Spent$ Change % Change
Audio/visual 51.50% $31,000 50.70% $14,000 $17,000 121.43%
Apparel/accessories 92.40% $34,000 86.80% $16,000 $18,000 112.50%
Luxury Resorts 84.80% $41,000 82.60% $23,000 $18,000 78.26%
Charitable Giving 97.50% $82,000 98.40% $52,000 $30,000 57.69%
Wines and Spirits - Personal Consumption
84.80% $17,000 74.30% $11,000 $6,000 54.55%
Jewelry/watches 73.70% $94,000 63.20% $63,000 $31,000 49.21%
At-Home Spa Services 53.50% $38,000 47.40% $26,000 $12,000 46.15%
Summer Entertaining 93.90% $56,000 92.40% $39,000 $17,000 43.59%
Villa Rentals 15.70% $106,000 13.80% $79,000 $27,000 34.18%
Luxury Hotels 95.50% $48,000 93.40% $36,000 $12,000 33.33%
Experiential Excursions 25.80% $103,000 22.70% $79,000 $24,000 30.38%
Luxury Cruises 47.50% $92,000 43.10% $71,000 $21,000 29.58%
Vacation Home Rentals 12.10% $82,000 11.80% $64,000 $18,000 28.13%
Wines and Spirits - Social Entertaining 86.90% $24,000 77.00% $19,000 $5,000 26.32%
Out-of-Home Spa Services 67.70% $61,000 48.70% $49,000 $12,000 24.49%
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%
Total Luxury Summer Spending Per Household
$622,202.02
$399,187.50
$223,015 55.87%
N= 198, 2007N= 304, 2005
SURVEY RESPONSES2007 Planned spending v. 2005 Actual
SpendingIn descending order by % change
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TRAVEL RELATED SPENDING2007 Planned spending v. 2005 Actual
SpendingIn descending order by % change
Summer Spending 2007 2005 Change 2007 / 2005
Activity % $ Planned % $ Spent $ Change % Change
Yacht Rentals 10.60% $384,000 9.50% $317,000 $67,000 21.14%
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%
Luxury Cruises 47.50% $92,000 43.10% $71,000 $21,000 29.58%
Luxury Resorts 84.80% $41,000 82.60% $23,000 $18,000 78.26%
Vacation Home Rentals 12.10% $82,000 11.80% $64,000 $18,000 28.13%
Luxury Hotels 95.50% $48,000 93.40% $36,000 $12,000 33.33%
Out-of-Home Spa Services
67.70% $61,000 48.70% $49,000 $12,000 24.49%
Total Travel-Related Summer Spending Per Household $259,000
$173,588 $85,412 49.20%
N= 198, 2007N= 304, 2005