BMO Private Bank, a part of BMO Financial Group, released the results of a study today profiling the vacations of high-net-worth Arizonans. The study is part of BMO Private Bank’s Changing Face of Wealth series, examining trends among affluent Americans (those with more than $1 million in investible assets).

According to the study, Arizona’s affluent expect to spend an average of $13,245 on leisure travel this year (including airfare, accommodation, food, etc.) – almost equal to the national average of $13,249. Further:

  •  Wealthy Arizonans plan to spend an average of $3,526 per trip, higher than the national average of $2,902.
  • Seventy-eight percent plan to take three or more trips this year, with affluent Arizona residents taking an average of four trips for pleasure.
  • Eighty-three percent choose to fly economy, and the rest (17 percent) choose business or first class.

“In order to make sure your vacation is the relaxing break that you’d like it to be, it’s important to be financially prepared for all aspects of the trip before you leave home,” said Matt Miller, regional president, Western U.S., BMO Private Bank. “A financial professional can help you to create a wealth plan with a leisure component that takes into account all the factors that contribute to the overall experience you’d like to have on your trip, such as accommodations and transportation.”

Affluent Prefer Spring, Fall Travels

The study also found that, upon arrival, most affluent travelers from Arizona prefer to stay in a four-star hotel (83 percent). Additionally:

  • Twenty-four percent choose a timeshare they own themselves.
  • Twenty percent prefer an all-inclusive resort.
  • Seventeen percent stay with friends or family.

Wealthy Arizonans lean toward the spring (78 percent) and fall (66 percent) for their favorite travel times. Summer came in third at 63 percent.

Most affluent Arizonans choose to travel within the United States (88 percent), while more than one-third said they travel to Europe (37 percent). Other travel destinations included Canada (17 percent), the Caribbean (15 percent), Mexico (12 percent) and Asia (12 percent).

“Leaving the country for a vacation can bring about complications, especially if this is your first time travelling to a certain destination,” said Miller. “To avoid any potential financial surprises, such as additional taxes or differences in currency rates, consider consulting a financial professional who can make you aware of these issues and ensure that you’re prepared.”
 
Key National Findings:

  • Affluent Americans expect to spend an average of $13,249 on leisure travel this year (including airfare, accommodations, food, etc.) and spend an average of $2,902 per trip.
  • Seventy-eight percent plan to make three or more trips this year, with affluent Americans taking an average of six trips for pleasure.
  • Seventy-seven percent choose to fly economy; the rest (23 percent) choose business or first class.
  • Most affluent travelers prefer to stay in a four-star hotel (69 percent); 24 percent choose an all-inclusive resort; timeshares are also popular, whether owned by themselves (19 percent) or others (15 percent); 20 percent prefer a five-star hotel.
  • A majority of affluent Americans choose to travel within the United States (89 percent), while nearly half said they travel to Europe (49 percent). Other travel destinations included Canada (30 percent), Asia (25 percent), Mexico (22 percent), Central/South America (17 percent) and Australia (18 percent).