Yacht Charter Market
Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2027)
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Sailing Vacations to Boost Demand for Yacht Charters
The global yacht charter market is expected to rise due to an upswing in leisure activities, as tourism becomes the new form of consumerism. Appealing to such a wide range of people – young and old alike, rich and the ones of budgets. Inclusive of catering, detailed itinerary, and equipped with entertainment, chartering a yacht has become a new form of vacationing. As the market lures in varied age groups, the global yacht charter market is pegged to rise at a CAGR of 22.85% over the forecast period of 2021 to 2027.
The popularity of yacht charter hinges on the growing number of people opting for outdoor vacations that equal the experience of a five-star hotel. Chartering a yacht provides the ability to visit multiple locations in one trip, eliminating the inconveniences of road or air travel. It also has the added benefit of allowing guests to dine in the surroundings of a secluded bay or alcove, which is the unique selling point of this service.
Commodification of Luxury to Drive Global Yacht Charter Market
Growing aspirations to live it out with luxury with social media influences have led to accelerated demand for yacht charters. The yacht chartering service providers and builders are increasingly investing in creating high-end experiences for events such as birthdays or weekend getaways. This has drawn a large number of younger people to charter yachts, driving the market with their want for celebrating or gaining experiences.
Government initiatives to encourage tourism is also another factor that will stimulate the demand for yacht charters. For instance, the Indonesian government refurbished its marine tourism policy by excluding the Clearance and Approval for Indonesian Territory (CAIT). This change is projected to increase yacht visits, which were at 6,000 yachts in 2019 alone, creating a profit of USD600 million.
The global yacht charter market is likely to be affected by the high cost associated with rentals. Additionally, the costs to maintain yachts are expected to act as a restraint as well, which percolates rentals charged. The mounting costs of service and maintenance of a yacht with expensive routine refitting’s and redesign, engine, and propulsion are often unavoidable and cost up to 10% of the yacht’s value each year.
Motor Yachts Will Lead Global Market with Improved Functionality
According to the type segment, the motor yacht is expected to lead the global yacht market during the forecast period because unlike a sailing yacht it powers through sea elements to cover larger distances in lesser time. Its shallow draft design permits the yacht to navigate through shallow and narrow passages. This allows it to explore most of the coastlines hence, which is boosting its demand amongst end users.
Motor yachts have bigger deck space, giving users ample area to utilize time while travelling. Luxury motor yachts offer modern conveniences and better communication options that are also propelling the adoption of motor yachts over sailing yachts.
Supportive European Commission Policy Will Keep Europe in Leading Position
Europe dominated the global yacht market with a market share of nearly 48% in 2020 and shall continue to retain its position during the forecast period as this region is witnessing a growing number of tourists. Countries such as Italy and Turkey are expected to drive Europe’s dominance. This region also has a dominance of key players along with flight booking services and online yacht charter collaborations.
Increased number of licenses issued for watercraft due to the presence of a wealthy population will lead to the growth of this region. For instance, in 2017, the European Commission report on nautical tourism stated that around 6 million boats exist in European waters, out of which 60,000 charter boats generate around € 6 billion each year. However, over the years Asia Pacific is likely to show a significant growth rate of nearly 24% due to the rising high net worth of individuals and increasing water activities, especially in Southeast Asian countries.
Key Players Embrace Change of Strategies to Stay Ahead in the Lead
The global yacht market players are adopting numerous strategies for growth such as collaborations and partnerships, joint ventures, and mergers & acquisitions. For instance, in June 2018, the Sailogy S.A. purchased the German company Master Yachting and became the global leader worth 50 billion. Similarly, Princess Yachts in July 2018 announced the launch of 6 models. This launch was encouraged by a £100 million investment programme that began in 2015.
Key players operating in the global yacht charter market are Fraser Yacht, Charter Yachts Australia, Boatbound Inc., CharterWorld LLP, Mertello Fairline Yacht, Thai Charters, Dream Yacht Charter, Incrediblue Ltd., Burgess, Boat International Media Ltd., Yachtico, Inc., Inter Yacht Charter, Nicholson Yachts, Simpson Marine, Northrop & Johnson, Sailing Thailand Island Cruises Co., Ltd., Yachting Company, Super Yacht Logistics, LLC., Yacht Charter Fleet, West Coast Marine Yacht Service Pvt Ltd., and Zizooboats GmbH.
Companies like Marine Max Group and Click&Boat have acquired other companies with an intent to square off competition and expand their business reach.