After the recession business is creeping back for hotels, yacht rental companies, private jet charters and jewellery stores — purveyors of the luxury goods that once seemed immune to a downturn but then took a megahit with the economy.
“People are fed up, and they want to have a good time”. They don’t want Italy 101. They want more exotic destinations like Kenya and Tanzania,” said an expert in the travelling business.
Some experts contend that much of the high-end spending before the recession was fuelled by money borrowed by people who were trying to live beyond their means. Today there is a trend to reducing risk by cutting debt. But even people who came out of the financial crisis relatively unscathed are pulling back. The possibility of losing their wealth has become more real.
In an economy that remains weak, no one expects a rapid recovery. Numbers are coming back, but not even near to the level they were.
The jet business may well have been the hardest hit by the economic collapse. In normal times, 12 percent of the worldwide private jet fleet is for sale. In July 2009, that figure soared to 18 percent, but sales have risen every month for the past seven months.
The good news is that people have stopped dumping jets, although prices remained flat.
However, the belief is that the business usage of private jets is growing faster than personal usage, but personal use went suffered less in the downturn.
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