The Top Indulgence of the Ultra- Rich: A Forbes Insight
Essential Indulgence for Billionaires: Something They Admit Can't Be Foregone
Billionaires sure know how to live the high life, splurging on everything from high-end art to space travel. But what's the one luxury they can't do without? Forbes decided to find out. In a recent survey of numerous billionaires worldwide, the answer wasn't surprising - it was a private jet.
With private concerts by A-list stars, super yachts replete with cinemas, spas, and submarines, trips to space, and even diamonds at their fingertips, the world's billionaires are accustomed to having the best of the best. But when it came to disclosing their most essential indulgence, 12 respondents cited a private jet. Other frequent mentions included smartphones, prestige cars, second homes, and air conditioning, with a couple applauding their wives or heli-skiing. One respondent simply stated, "privacy."
The allure of a private jet lies primarily in the time savings. The process of commuting to a commercial airport, clearing security, boarding, and taxing usually takes several hours, even without delays. On the other hand, a private jet can be ready in a matter of minutes, allowing passengers to just show up and go. Moreover, private jets offer a myriad of options for takeoff and landing locations.
For billionaires like David Hoffmann, who invests in businesses across the country, a private jet is indispensable. Based in Naples, Florida, Hoffmann has entities in cities like San Diego, Minneapolis, Seattle, and St. Louis. Samir Mane, another retail and real estate entrepreneur, concurs, explaining that his jet enables him to visit his retail outfits in countries where commercial flight connections are lacking. Mane, who hails from Albania and is the country's first billionaire, finds that he can reach Sarajevo in just 20 minutes via private jet, whereas the journey would take a full day if he were to fly commercially.
For many billionaires, private jets serve as business tools rather than luxury items. Hugh Chatham, VP of sales at plane brokerage CFS Jets, explains that these entrepreneurs rely on their planes to get in and out of meetings across the country in a single day. Real estate investor Larry Connor phrased it succinctly: "It's not a luxury, it's a business tool."
According to Chatham, pre-owned jets can cost anywhere from $1 million for a small, basic craft to as much as $75 million for top-tier models like Bombardier's Global 7500. New jets can even reach upwards of $80 million for business jets, with some billionaires owning commercial-size airliners.
However, not all billionaires opt for extravagant airplanes. "There's a bit of a stigma around owning a private jet, and I think people don't realize that in many cases, it's not as luxurious as you might think," says Chatham. "For the most part, these guys are packing people into a tiny airplane for two to two and a half hours."
Another concern for billionaires is privacy, with flight tracking apps like FlightAware making it possible for anyone to see a plane's location and travel details. Some billionaires even disguise their ownership through layers of LLCs to maintain their privacy.
For those who don't want to invest in or maintain a private jet of their own, alternatives like fractional ownership and subscription models offer access to a fleet of planes for a certain number of hours per year or for specific time periods. Mane, who sold his Citation XLS+ for a profit just two weeks ago, now relies on services like Vista and NetJets for his private flying needs.
All in all, while the term "luxury" may conjure images of extravagant personal entertainment, for many billionaires, the most essential luxury is a private jet that enables them to conduct their business efficiently and effectively.
Billionaires, despite possessing a plethora of luxurious amenities such as super yachts, trips to space, and prestige cars, still perceive a private jet as their most indispensable indulgence. This preference is due to the time savings and flexibility offered by private jets, making them essential for business purposes.
Despite the stigma that comes with owning a private jet, many billionaires view it not as a luxury item but as an indispensable business tool, allowing them to travel efficiently to multiple locations across the country or world. Therefore, a private jet serves as a practical luxury for many ultra-rich individuals.
