Luxury Vacation Rental Conference

Nov 17-19, 2010

The Affluent Consumer

How many are there?

Where are they?

Who are they?

What are they doing?

Definitions

HNWIs (High Net Worth Individuals) are

defined as those having investable assets of

US$1 million or more, excluding primary

residence, collectibles, consumables, and

consumer durables

Ultra-HNWIs are defined as those having

investable assets of US$30 million or more,

excluding primary residence, collectibles,

consumables, and consumer durables

HNWI Population up 17.1% (08-09)

Source: 2010 World Wealth Report, Capgemini and Merrill Lynch Global Wealth Management

8.28.7

9.510.1

9.610

0

2

4

6

8

10

2004 2005 2006 2007 2008 2009

Population (in Millions)

Where Are They (HNWIs)? US, Japan and Germany still account for 53.5%

Source: 2010 World Wealth Report, Capgemini and Merrill Lynch Global Wealth Management

Africa1%

Middle East4%

Latin America5%

Asia-Pacific30%

Europe30%

North America30%

HNWI 2009 Population

Where Are the Ultra-HNWIs?

Source: 2010 World Wealth Report, Capgemini and Merrill Lynch Global Wealth Management

Africa2%

Middle East4%

Latin America12%

Asia-Pacific21%

Europe22%

North America39%

Ultra-HNWI 2009 Population

So is the key to just target the HNWIs?

Don’t Forget About the HENRYs

High

Earners

Not

Rich

Yet

HENRY: coined by Fortune writer Shawn Tully

Those with incomes between $100,000 and $249,999

Willing to pay for superior quality and

performance, but when all things are

equal, they won't spend a penny more

just to wear or own a name brand

Smart shopping and targeted money-

saving strategies are the new status

symbols with luxury consumers today

Pam Danziger, President

Unity Marketing

So the World has

Changed Since 2007

Unemployment rates concerning

All we really know

is we don’t know

Let’s deal with it

Here’s what we know…

the average American traveler took

four leisure trips during the past year

and spent more than $3,500 on

leisure travel services.

Source: Peter Yesawich, YPartnership

Source: Peter Yesawich, YPartnership

Source: Peter Yesawich, YPartnership

32% took at least one vacation

within a 50 mile drive radius of

home as an alternative to traveling

a greater distance.

LavishResourceful

Value

70% of HNWI on it

17% use it dailySource: SEI Quick Poll, October 2010

(and other social networks)

50% of HNWI have noticed a

marked decline in the

customer experience*

*Source: The Luxury Institute

The future of vacation rentals…

Ideas on how to grow our revenue…

Strategies to educate and obtain good owners…

How to become resourceful marketers….

How to differentiate your brand…

Strategies to deliver ‘delightful’ guest experiences…