Wealthy Not Skimping on Trips Despite Economic Uncertainty

Even the rich are starting to feel the pinch of an economic downturn. But while the affluent may be starting to hold off on purchasing luxury goods and making significant investments, for now they’re still splurging on vacations.

The investment outlook among households with $1 million or more in investable assets has been steadily declining since last June, according to a monthly survey of more than 100 millionaires conducted by the Chicago-based Spectrem Group.

Nonetheless, Oak Brook, Ill.-based Abercrombie & Kent said it was seeing the most growth in its private jet division, where three-week, global journeys are priced at $85,000 to $100,000 per person.

The high-end operator has already seen a 46 percent increase in bookings for its private jet journeys for 2008 compared with the same period last year. The program, which launched with a single journey in 2006, has been consistently expanding year over year. In 2008, A&K is hosting five private jet excursions, and in 2009 the operator anticipates eight departures on a 52-seat Boeing 757-200ER aircraft.

TCS Expeditions, meanwhile, offers private jet vacations that cost clients between $38,000 and $65,000 per person, not including roundtrip airfare to global starting points. The company has seen a 39 percent growth in bookings for the period of March to May compared with the same period last year, and it is currently 87 percent sold for 2009.

According to research from Stevens, Pa.-based Unity Marketing, “affluent Americans backed off markedly in their pursuit of the luxury lifestyle, most notably in the second half of 2007. Going into 2008, their spending continues to be weak.”