IF THE AFFLUENT DON'T LEAD US OUT OF THE RECESSION,

THEN WHO WILL?

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:

The Travel Picture-- Patterns and Plans

• 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:

• • Willing to pay more for environmentally friendly products
  • Considering minimizing impact on the environment as an important part of their lives
  • Travel internationally to learn about other cultures
  • Enjoy eating foreign cuisines

• How Affluent Style Setters -11.8 million-see themselves:
  • I enjoy keeping up with the latest fashions and trends
  • I get enjoyment from shopping for clothes
  • People often ask my advice on fashion and what they should wear
  • I have an excellent sense of style
  • I prefer to buy designer or luxury brands

What Sets This Survey Apart from Others

The Ipsos- Mendelssohn Affluent Survey measures male and female heads of households in all 50 states and Washington, D.C. who have household incomes of $100,000 ore more. These individuals represent about 19% of all American adults. The results are projected to an estimated 43 million affluent heads of house living in almost 24 million households. These affluents - an estimated 20% of all U.S. households - account for more than half of all U.S. household income.

The survey also defined three target segments as follows:

• The least affluent with annual household income between $100,000 and $149,999
•  Middle segment has a household income level between $150,000 and $249,999
• The upper income segment has a household income level of $250,000 or more.
• The survey also estimates households with incomes of $250,000 and liquid assets of $1 million or more - showing almost 1 million households combining those criteria.
• Of the 43.1 million affluent, 7.4 million are in a C-suite role, and 9.4 million are owners or partners in their own business