Yacht Charter Market in 2020
The early beginnings of boats
For thousands of years the ships have accompanied the men on their journey. The first ships appeared in very ancient times, as they were in need of maritime transportation for different purposes (exploration, fishing etc…). Maritime transportation really did play a major role in conquering new territories and in building the world as we know it today.
As you know the maritime transport has changed through the years, whether in relation to the boats themselves or their use. Their main use is now trade, transport, military and tourism.
The touristic aspect is what interests us today and about what I’m going to talk about. To be more specific, the yacht charter market in 2020.
Before talking about the yacht charter market in 2020, let’s take a look to the past few years.
Mediterranean, destination number one
In the worldwide yacht charter, the Mediterranean region represents the biggest portion of around 41%. It was one of the favorite destinations in 2018. This is due to the fact that more buyers around the world are contracting yachts in the Western and Eastern Mediterranean region. Moreover, the Mediterranean is the biggest ocean that touches Africa, Europe, and Asia mainlands. It is also the most mainstream for travels and cruising.
There are a lot of islands in the Mediterranean that are really appreciated by the tourists, such as the Greek, Spanish or Croatian islands. Known for their magnificent landscapes and local culture. In fact, there is something for all tastes, families, couples, holidays with friends or on your own. It’s probably one of the reasons it is so much appreciated.
The 3 main destinations in this area are actually Greece, Croatia, and Turkey. The flourishing travel industry helps the interest for yacht contracts right now.
Motor Boat conquered the Market
Motor Boats are reported to hold around 65% of market incomes, they are really popular. Even boat fans became mindful of the unfriendly impacts that boating can have on nature and some of them are now focusing more on sailboats.
Fuel contamination is one of the harmful side-effects, a large part of which comes from pleasure boats. Sailboats utilize a limited quantity of fuel compared with motor yachts. Moreover, sailboats are less expensive and can go a lot farther than motor yachts.
Global Yacht Charter Market
With regard to the regional market, the global yacht charter contracts are segmented in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America. Europe holds an exceptional share of the announced global yacht contracts, due to the attractiveness of the destinations around the Mediterranean Sea. The yacht sanctions in Europe have expanded, due to the strong tilt for the travel yachting industry in the region. Croatia and Greece, together, held a significant portion of the yacht sanctions in Europe, due to the picturesque coastlines and the rise in the travel boating industry in these countries.
Few actors of the Global Yacht Charter Market :
Some of the major players in the global yacht charter market include: West Coast Marine Yacht Service Pvt Ltd, Zizooboats GmbH, Dream Yacht Charter, CharterWorld LLP and many more, in which case you are interested in, click here to access the link.
How is the global yacht charter market segmented?
The market is classified according to 2 criteria: size and type of boat. To give you a more precise idea, the types of boats are composed of 2 types: the motor boats and sailing boats. As far as size is concerned, there are 3 types: Large (over 50 metres), medium (30 to 50 metres) and small (30 metres or less).
Perspectives for the Yacht Charter Market
3 points to keep in mind
- New charter approaches between owner and charterer will boost the boat rental market thanks to the digitization and the simplicity to proceed.
- New models are appearing in boat rental, such as with or without a skipper, as well as the type of cruise.
- The worldwide yacht charter market will soon face strong growth thanks to the development of luxury tourism in the Asia-Pacific region. (read our article about the Asian yacht charter market here)
Has the internet evolution changed sailing? It’s a big YES!
Nowadays cruising relies upon complementarity: there is a closeness of private and master owners on nautical stages.
The Internet has made it possible for the boat rental markets to digitize and grow. Thanks to new booking platforms, renting a boat is becoming faster and simpler for water sports enthusiasts. We can also compare boats (models, prices, services) and see their accessibility in a few clicks. In order to find the ONE that suits us best.
“The global yacht charter market is expected to grow with a CAGR (Compound Annual Growth Rate) of 5.4% over the next 6 years to reach US$15.86 billion by 2026.”
– Future Market Insight; Yacht Charter Market – 2019 Analysis
If you didn’t know that, owning a boat is very expensive. Whether it is at the time of purchase, maintenance costs (which represents about 10% of the price of the boat per year) or fuel. These are some of the main reasons that encourage customers to rent rather than buy.
Boat rental is definitely more economical, the customer pays only once, during the use of the boat. Moreover the user can go directly to the desired destination by plane or other means. He is not obliged to get there by sailing. This also saves fuel and time, especially if the cruise destination is far away from where the boat is stored.
Remote destinations such as the United States, the Sea of Cortez, Alaska and Antarctica are gaining in popularity with visitors and should increase the boat rental market.
Otherwise, on a more negative note, regulatory uncertainties and cross-border transactions are likely to slow the growth of the yacht charter market.
About user preferences, we are moving towards small and medium boat sizes. However more and more are interested in medium sizes because of a pronounced taste for luxury.
As far as customers are concerned, individuals and companies represent the main shares of the world yacht charter market. As mentioned earlier in this blog, corporate charter yachts are becoming a meeting place for investors and customer introductions. The segment includes travel agencies and yacht charter companies. The end user takes care of almost nothing, apart from taking over the boat.
The use of boats for leisure purposes is definitely growing and has bright days ahead. With a high potential located in the Mediterranean region, the perspectives are exciting. It is more than a trend, the studies are formal, the potential of evolution in the Yacht Charter market should be carefully watch by its actors. Indeed, the digitization of the industry, the appearance of new boat rental models or the increase of luxury tourism in Asia, are the main aspects to take advantage of.
However let’s not forget that regulatory uncertainties and cross-border transactions are likely to slow the growth of the Yacht Charter market.
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