Yacht Charter Market
Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2027)
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Rising Popularity of Marine Tourism Expedites Yacht Charter Market Growth
The global yacht charter market is expected to rise in demand due to rapid expansion of travel & tourism industry and upswing in leisure activities. Traditionally serving a premium class of consumers, yacht charter market also caters to the not-so-rich class through smaller and second-hand yachts at relatively affordable costs.
A flourishing vacationing trend among the global consumer remains a prime booster to yacht charter market growth. Many service providers make claims that the facilities they provide are equivalent to that of a five-star hotel. An increasing inclination towards planning unusual vacations drives revenue to yacht charter market. With a greater number of travel enthusiasts opting for sailing vacations as an alternative holiday, yacht charter market will continue to rise.
Chartering a yacht allows one to visit multiple locations in one trip without the need to sit in cars or airport lounges for hours on end. It also has the added benefit of allowing guests to dine in the surroundings of a secluded bay or alcove — not many other holidays can offer this.
Preference for Customised Group Vacations and Rise of Online Communities Fuel Yacht Charter Sales
Customised yachting experiences are become highly desirable among a growing consumer base, especially young demographics. Rising trend of celebrating birthdays, weekends, and special occasions with family or friends at exotic destinations is working in favour of yacht charter market. A growing tendency for group vacation bookings rather than couple or individual holiday bookings owing to the relative cost-effectiveness of the former is also expanding the scope of growth for yacht charter service providers. Medium- and large-sized yachts are thus gaining ground as a winning imperative among leading yacht charter companies in global market.
With rise and exponential expanse of social media over the past decade, niche markets like yacht vacations have been garnering remarkable interest. A large number of online boaters’ communities and exotic trippers’ groups are playing out as a major catalyst pushing the growth of yacht charter market. In addition to increasing awareness about how sailing vacations can offer a lifetime experience, such communities serve as prime promotional platforms for yacht charter companies. This will remain a strong factor propelling yacht charter demand. Similarly, online travel blogs are playing a significantly important role in bolstering yacht charter sales and bookings since the recent past.
The Pricing Game in Yacht Chartering
The yacht chartering service providers and yacht builders are increasingly investing in providing more luxurious features, thereby bolstering growth prospects of global yacht charter market. Another significant factor contributing to marine tourism, particularly yacht chartering, is the favourable government initiatives. For instance, the Indonesian government refurbished its marine tourism policy by excluding the CAIT permit (clearance approval for Indonesian territory permit). This change projected increased yacht visits which went almost to 6,000 yachts in 2019 alone, creating a whopping profit of US$600 Mn.
Expensive pricing point of yacht charters and high maintenance costs, however, continue to make yachting a costly affair. Moreover, routine servicing, refitting and redesigning account for a notable annual expense for owners. Yacht charter brokerage is emerging rapidly as a business but is also witnessing gradual progress due to expensive costs to brokerage and other maintenance costs.
Motor Yacht Sales Continue to Generate Maximum Revenue with Improved Functionality
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 shallow and narrow passages. This allows it to explore most of the coastlines, hence, encouraging its demand in the global market. Motor yachts offer bigger deck space for spending quality time with friends and family, dining al fresco and basking in the sun, which compels more people to choose it over other type of yachts. Luxury motor yachts offer modern conveniences and better communication options, thereby propelling their adoption over sailing counterparts in global market.
Europe Leading the Pack, Supportive Policy Framework Plays a Critical Role
Led by Turkey and Italy, Europe is expected to continue its dominance in the global yacht charter market during the forecast period, as the region is witnessing an exponentially growing number of marine tourists. This region also has dominance of key players along with flight booking services and online yacht charter collaborations. Increased number of licenses issued for water craft to cater to premium consumer segment will increase 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 amongst which 60,000 charter boats produce around € 6 billion each year.
Competition Scenario: Global Yacht Charter Market
Global yacht market players are adopting numerous strategies for growth such as collaboration and partnerships, joint ventures and M&A. For instance, in June 2018, the Sailogy S.A. purchased the German company Master Yachting and became the global leader. Similarly, Princess Yachts in July 2018 announced the launch of six new models. This launch was encouraged by a £100 million investment programme that was begun in 2015.
Some of the key players operating in the global yacht charter market, include 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.