And "Gluttonomy" Has Passed As Affluent Look To Spend Generously - But Differently - This Year
Latest research
from American Express Publishing and Harrison Group reveal that affluent and
wealthy American families "look to one another" for holiday joy as they watch
holiday expenditures. The new normal? It's all about spending that's based on
relationships.
The latest Survey of Affluence and
Wealth in America, produced by American Express Publishing and researchers
Harrison Group, is a snapshot of families with a "household discretionary
income" of $100,000 and above - with results broken into the super
Affluent/Wealthy (250K+) and the Upper Middle Class/Affluent ($100K to $249)
The
overall takeaway for the holiday season: Optimism has risen, fear of not
surviving the financial crisis has declined and household financial management
has been reinvented.
And
what does it mean for travel?
The research shows that vacations have become a
true family affair. As Dr. Jim Taylor, vice chairman of Harrison Group told
LT360 in an interview, "While in the past, one family member decided on a trip,
now the family talks about it and the trip is considered a gift. Other gift
giving is reduced by the cost of the trip. Basically, these are discussions
families were not having before and it is what has contributed to enhanced
relationships and a more upbeat feeling. And it's why we're not going to back
to where we were."
"Whether
it's a trip or a Chanel bag," Taylor told us, "it won't be considered just
largesse by a breadwinner, but a shared decision. This is how we are creating
value out of this Recession."
In
fact, spending on travel as a gift is expected to increase; also, 32% of
families are planning a special holiday trip. More, travel makes the list of
Top 12 gifts for this year. Asked about a dream list of gifts, a cruise
vacation was mentioned by 12%, up from 11% a year ago.
Cara
David, senior vice president for Amex Publishing said, "Gift giving remains a
significant part of the holiday experience; however, the accent for giving and
gatherings is focused on quality and emotion, not volume. Families across the
affluent-wealth spectrum are saying, ‘we don't need as much stuff.'
More highlights from the Amex Publishing/Harrison Survey:
The pool of eligible families is down by one million families since January
because of the decline in income and worth.
Overall spending on holiday gifts will be down as much 15% among the affluent
and wealthy; 70% will spend the same as last year; 7% will spend more; and 21%
will spend less (2% were unsure)
Respondents expect to spend more time with family this year compared to last;
time with friends will also increase.
The big surprise is that the happiness level is up as people learn to deal in
need rather than wants. "Gluttonomy has passed.
"Optimism in "my own future" has increased 20% since the first quarter of the
year; a majority feel "extremely optimistic" or "very optimistic" about their
future.
8 in 10 believe that 2010 will be better than 2009.
Guilt about buying luxury goods has decreased from 54% to 42% since late last
year.
There is a leadership hurdle in general. Business leaders don't even trust
themselves to bring the economy back.
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