How to Travel Like High Net Worth Individuals
Wealth building allows you to do so much more than just creating a nest egg and generational wealth. If you are an investor with a high net worth, your affluence also allows you to travel in style. In recent years, wealthy investors have embarked on a range of new travel trends. From mindfulness to experiential travel, the following trends are popular among elite investors like yourself.
Enjoy Experiential Travel
Experiential travel is the industry’s new byword. For people who have a high net worth, value matters. Hedonism and conspicuous consumption are less important today than the value that experiences can deliver. Rather than show off their financial resources, affluent investors are searching for trips that give them unique insights, learning opportunities and a sense of wellbeing.
Learn While You Travel
Passive investing requires knowledge and planning. Unsurprisingly, many passive investors want to gain knowledge during their trips as well. For example, there are now sanctuaries for thought leadership where participants can learn new information while skiing, surfing or diving.
Many affluent individuals hire experts like world-class photographers, writers or wildlife experts to teach them new information. While the affluent may still go to the same destinations as before, their goals are different. Now, they want to get more than a weekend away from home out of the experience.
Enhance Your Wellbeing
Another trend among wealthy travelers is to focus on their wellbeing. Many people who have a high net worth plan trips that allow them to return to nature. For example, they may visit the Antarctic, Iceland or the Galapagos.
During these trips, travelers want a chance to reinvigorate their mind, body and soul. They may use mindfulness meditation or similar techniques to relax. The overarching goal of these trips is to develop better mental and physical health.
Take Part in Responsible Travel Programs
Because you have spent so much time on wealth building, you are able to travel the world and discover unique cultures. Your affluence gives you the power to change these destinations for the better. Many affluent travelers want to find opportunities for responsible travel. They search for activities that improve social, economic and environmental sustainability.
These types of activities may involve destinations like Song Saa Island in Cambodia or El Nido Resort in the Philippines. Thanks to their wealth, affluent travelers can hire travel specialists and event planners to create responsible itineraries. From Machu Picchu to Bhutan, these travelers use their vacation dollars to improve the world around them.
Hop on a Private Jet
Private jets are not just for ultra-rich families anymore. Now, there are private jet companies like NetJets, XO and Surf Air that offer a private experience without the high price. Instead of having to own the jet by yourself, you rent it for individual trips. By doing this, you save money on the overall costs while still getting the same experience.
While traditional airlines are dealing with demand that is as low as 10 percent of 2019 levels, private jets remain extremely popular. When someone charters a private plane, they get the entire plane to themselves. Depending on the jet company and what you are willing to spend, you may be completely alone on the flight or have just a handful of other passengers.
Luxury travelers can invest in a private jet through fractional ownership. With this option, the traveler buys a portion of the jet. Then, they pay reduced costs in exchange for sharing the jet with a handful of other people.
With jet membership programs, the traveler gets a set number of hours in the jet for a fee. Other companies charge per flight. In most cases, you can bring as many friends or family members as you want if you charter the whole jet. If you just buy a seat on a private jet, you may have to share the flight with a few other people.
Focus on Services
Thanks to Instagram, the travel industry has democratized the appearance of luxury. Many hotels and restaurants strive to create luxurious rooms and decor. While a hotel may look luxurious in Instagram photos, it lacks one important detail. When it comes to wealth and traveling, people who have a high net worth want luxury services instead of just a lavish look.
After investing in real estate and other passive income sources, you deserve to treat yourself. By traveling like the global elite, you can enjoy luxury services like a personal concierge, private guides and bespoke offerings. The best travel organizations pay attention to the tiny details. While many companies market trends like glamping tents that look great in brochures, these companies do not pay attention to details like indoor restrooms. To achieve a luxurious experience, these organizations have to focus on details like the products they use in their facilities and client services.
Discover Bespoke 2.0
People who have a high net worth want to experience things that no one else has ever experienced before. They want to create a personalized trip that only they can enjoy. To achieve this goal, many affluent individuals pay luxury travel agencies to create personalized trips.
Like many people, uber-wealthy individuals search for outdoor adventures in destinations like Norway, New Zealand and Iceland. Unlike the hoi polloi, they have an exclusive, comfortable experience of these locations. For example, they may experience gorilla trekking in Rwanda through a private guide, luxury hotels and personal drivers. They may use a helicopter to tour the backcountry of Papua New Guinea or discover the Great Rift Valley from a comfortable seat on a private plane. Other wealthy travelers may enjoy a week at a private estate on Mount Kenya or unwind at a villa in Ecuador.
How Much Should You Spend on Travel?
You are spending your time and energy investing in real estate for a reason. While passive investing allows you to earn an ongoing income stream and save for retirement, you are also building wealth in order to live a better lifestyle. The real question is not whether you should spend some of your passive income on travel. Instead, you should be considering how much you can safely afford to spend.
Among ultra-rich households, a family may budget $100,000 to $250,000 on traveling per year. This can vary from one year to the next because sometimes families bring along other family members and friends. While some years involve local, inexpensive trips, other years may involve expensive, international outings.
Often, financial consultants factor in extra money for traveling during the first few years of retirement. During these early years, many people spend extra time and money going to destinations around the world. While most wealthy retirees spend 5 to 10 percent of their money on traveling, some people spend up to 20 percent of their annual budget on traveling. The important thing is to figure out how much you want to travel so that you can create an accurate budget.
A New Trend: Digital Nomads and the Travel Industry
Some investors are able to earn enough money to travel like ultra-rich families and enjoy luxury trips around the world. With passive investing, your options really open up. Right now, digital nomads are a part of a new trend in the travel industry.
Because they have the ability to work from any location, digital nomads can spend all of their time traveling. While many of these individuals work remotely, some of them earn their money through real estate, stock dividends and other passive income sources. When you live off of passive income, you can live at any location around the world.
According to remote workspace provider IWG, 70 percent of workers work remotely at least one day per week. Since 2005, the remote workforce has grown by 140 percent. By the end of 2019, 7.3 million Americans were digital nomads.
By working remotely and creating passive income, you can enjoy the same travel experiences ultra-rich families get. Instead of cutting into your investment accounts, you can keep earning money as you explore the world. You can discover mindfulness retreats, thought leadership conferences, outdoor adventures and exclusive hotels during your globe-trotting expeditions.
Set Reasonable Expectations
Ultra-rich investors plan on passing down generational wealth to their children. More importantly, they plan on having enough money left at the end of their trip to enjoy a fulfilling, comfortable lifestyle forever. They do not spend more than they can afford to spend on each trip.
Even though ultra-rich families have a high net worth, they do not have a completely unlimited amount of time or money. Because of this, they set reasonable expectations about their vacation plans. More importantly, they do not try to outdo their previous trip each year. Instead, they create travel plans that work with their budget.
Many of these trends are not exclusive to ultra-rich households. While you may need a high net worth to charter a private plane, you can easily take advantage of trends like traveling for your personal wellbeing and taking experiential vacations. With a little planning, you can jet off on your next adventure and enjoy your financial freedom.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.