SeaDream: Economy won’t curb wealthiest travelers

**Ally** · 02-25-2008, 07:06 AM

Quote:

A SeaDream Yacht Club survey of its most active customers found that upscale travelers do not expect to be greatly affected by the worsening economy and will continue to travel. Middle income travelers, however, are likely to be highly affected, the results suggested.

‘The economy and how it might affect future purchasing patterns has so dominated the public’s thinking with ’round-the-clock reports and opinions by all types of media that we were compelled to go out to our past guests for their opinions,’ said Larry Pimentel, president, ceo and co-owner of SeaDream.

He said SeaDream has been experiencing near 100% capacity utilization despite dire economic predictions and called 2007 an outstanding year for his company, with 2008 bookings are well ahead of those at this time last year. 2009 shows ‘even greater positive response to our product,’ Pimentel added.

The survey of SeaDream’s past passengers indicated a sizable majority of upper income households (65.3%) will continue to travel as usual for leisure purposes. Slightly more than 34% stated they will curtail some travel, and .06% said upper income households will curtail all travel.

When it came to middle income households, a sizable percentage expected to give up some (82.2%) or all (11.3%) leisure travel. Only 5.5% said the middle income group will travel as usual.

SeaDream said the survey, conducted last week, drew responses from more than 26% of a 5,000-person database of affluent, past passengers with a minimum annual household income of $250,000.

The poll further indicated that while travel for the upper strata would not be greatly affected, other discretionary spending would be severely curtailed, with home purchases and jewelry taking the biggest hit.

SeaDream also asked customers about the U.S government economic stimulus package and other issues. More than 70% believe the U.S. and other parts of the world are sliding into recession, which 79.6% predict will be short-term. Some 78.3% categorized stock market volatility as ‘just an inevitable swing,’ and 57.2% said the market will correct itself with most adding ‘but only after several years of volatility.’

Seventy percent of respondents said the U.S. stimulus package will not cause the market to turn around or avoid a recession. Some 77.8% said economic issues are frequently overblown by the media with the effect of exacerbating problems.

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off2kokomo · 02-25-2008, 08:37 AM

When you are extremely wealthy, you don't have to make the choices that those of us on lower incomes must. It gets to a point that their money is constantly growing so fluctuations in the economy tend to not affect them overly much. Put this together with the other article posted about various innovative luxury ideas on cruise lines and it's easy to see that the cruise lines know where their bread is buttered.