Yacht Chart Market Outlook
[300 Pages Report] With revenue from yacht charters enjoying Y-o-Y growth of 4.9%, the market is expected to be worth US$ 17.57 Bn in 2022. The global yacht charter market is anticipated to reach a valuation of US$ 28 Bn by 2031 progressing at a healthy CAGR of 5.3% (2022-2031).
Yacht charters accounted for 30%-35% share of the global boat market in 2020. Increased interest and spending on recreational activities such as sailing and growing marine tourism is driving yacht charter demand.
Yacht Charter Demand Analysis (2016 To 2021) Vs Market Outlook (2022 To 2031)
The yacht charter market expanded at a CAGR of 3.9% from 2016 to 2021 and amassed revenue worth US$ 16.76 Bn in 2021.
The yacht charter sector is expanding rapidly. The process of renting or sailboat charter, motorboat charter, boat charter, or ship charter and traveling to various coastal or island areas is known as yacht chartering.
Yacht charters are commonly utilized for recreational, commercial, and holiday purposes. Without owning a yacht, a yacht charter is a handy and easy way to spend a long yacht vacation with friends and family. Yacht charter companies furnish yachts and give the best itinerary based on clients' needs, complete with crew and captain, as well as online or on-call support for the duration of the charter.
Growing popularity of luxury marine tourism and personalized services among passengers is positively impacting the expansion of the yacht charter market. Furthermore, growing tourism industry, rising disposable income, and quickly evolving preferences for recreational and leisure activities will all contribute to the expansion of the yacht charter market over the coming years.
Yacht charter demand is expected to increase at a healthy CAGR of 5.3% from 2022 to 2031. This projected growth rate in yacht charter demand is estimated to net a market valuation of US$ 28 Bn by 2031.
What Factors Are Boosting Demand Growth Of Yacht Charters?
“Yacht Charter Revenue Increasing Due to Rising Customer Interest in Maritime Tourism”
Rising customer income and increased interest in maritime tourism are likely to fuel the yacht charter business. Recreational boating has become increasingly popular in recent years, opening the path for the growth of yacht charter enterprises.
The marine recreation and entertainment business makes a lot of money from water sports. Sailing, windsurfing, boating, water scooter rides, parasailing, and jet skiing are just a few of the sports accessible along coasts, and they are becoming increasingly popular. The bulk of seaside tourist resorts and hotels now offer such services.
A growing number of holidaymakers are looking for fun activities with their families and friends. As a result, the yacht charter sector is likely to benefit from corporate programs, government programs, and initiatives aimed at promoting maritime tourism.
“Boat Shows Becoming Beneficial Place for Yacht Bookings”
Dealers and businesses have a one-of-a-kind opportunity to gain substantial sales and enhance their brand's market reach during boat shows. As a result, yacht manufacturers are investing a lot of work into showcasing their new yachts at major boat events around the world to boost their visibility among potential buyers and in the industry.
As a result, the yachting industry is growing. There are several advantages to yacht charter bookings at a boat show rather than online. At events, special bargains are frequently available that are not available at other times. To complete a sale, companies are now more inclined to haggle over costs or give reductions. As a result, these factors contribute to the expansion of the yachting industry.
Which Factor Is Affecting Yacht Charter Sales?
“High Yacht Charter Cost May Hinder Market Growth”
The cost of chartering a yacht is determined by several factors, including the charter destination, yacht type, local and cross-border taxes, and basic fees. As a result, rental rates for these charters vary greatly. Aside from that, private yacht rental can cost anywhere from US$ 10,000 per week and sailing yacht cruises to over US$ 200,000 per week for the most luxury charter.
There are also some hidden charges and non-mandatory expenses, such as tax and other charges, allowances, insurance, and crew gratuity, which can range from 15% to 30% of the base price. These expenses represent an impediment for many clients in developing economies, limiting market expansion even further.
Which Regional Markets Will Be Fruitful For Yacht Charter Providers?
“Availability of Famous Marine Destinations & High Marine Culture in Europe”
The FMI yacht charter market research survey includes regional assessments for North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East and Africa (MEA).
The Europe yacht charter market is anticipated to provide highly rewarding opportunities for yacht charter providers over the forecast period. In 2022, the market in this region holds a significant share of 31.9% in the global landscape.
One of the most popular destinations for marine culture is Europe. Yacht charters are highly popular in Northern Europe. Motorboats, luxury yachts, and crewed yachts are available in several European countries. Several superyachts, as well as expedition and explorer boats, are available for charter. In Europe, the summer season is the best time to hire a yacht.
Due to its numerous tourist locations and strong growth rate in the marine tourism industry, the region is anticipated to dominate the worldwide yacht charter market. In addition, rising popularity of fishing and water sports, as well as rising number of upper-class individuals, are expected to enhance market growth in the region.
Increasing number of licenses issued for watercraft and cooperation between airline booking and online charter service providers in Europe are likely to enhance industry growth.
Presence of a diverse coastline is blessed with a plethora of cruising places; thus, North America maintains the second-largest position in the market. With a market share of 28.7%, the yacht charter market in North America follows closely behind Europe.
In 2022, East Asia, South Asia & Oceania together account for a market share of 27.4% in the global industry. Over the following years, these areas are projected to emerge as the fastest-growing markets.
Rapid development in urbanisation, improvement in the standard of living, and increased disposable money are all factors contributing to individuals' developing preferences. Rising popularity of recreational activities and increased marine tourism in nations such as Thailand, Malaysia, Singapore, China, Japan, and Australia are creating significant prospects for yacht rental companies.
The Latin America yacht charter market will account for 5.9% of the global market share in 2022. The yacht charter market in the Latin America & MEA regions is expected to progress at a slightly slower rate than other regions. In 2022, the market in MEA is set to account for 6.2% of the global market share.
How is Market Growth for Yacht Charters Shaping Up in the U.S.?
“Plethora of Cruising Places & Yacht Lovers Driving Yacht Charter Sales”
In terms of yacht charters, the United States is the most dominant nation in North America. Customers in the United States prefer to travel in large groups to charter destinations. This is to take advantage of group discounts provided by various yacht charter firms, as well as to cut individual expenditure by pooling expenses.
Consumers in the United States are more interested in yachts that provide comfort rather than performance. Furthermore, because majority of consumers in the country are tech-savvy, yacht charter firms place a premium on supplying clients with yachts that are outfitted with the latest technology, which draws additional customers.
What is the Demand Outlook for Yacht Hire in Thailand?
“Attractive Beach Destinations in Thailand Driving Private Yacht Charter Bookings”
In recent years, Thailand has become one of the world's most popular destinations for a yacht charter vacation, and with good reason, as visitors from all over the world are eager to see the country's gorgeous vistas. This directly increases private yacht booking services.
Thailand has constantly seen significant demand for leisure activities among visitors, from the magnificent limestone rock formations of Phang Nga Bay and Krabi to the lovely white sand beaches and crystal clear seas of the Phi-Phi Islands for some breathtaking scuba diving.
Tourists from all over the world are drawn to such wonderful destinations, which encourage them to spend their vacations with their families and friends. This is likely to increase demand for yacht charters in Thailand.
How Does the Retail Segment Help Boost Yacht Charter Demand?
“Growing Popularity of Yachting Driving Sales of Yacht Rental Services”
Due to growing tourism, the retail segment is projected to hold a significant proportion of the global market in terms of volume and value. Growing popularity of luxury cruising, particularly among high-net-worth people and ultra-high net worth individuals around the world, is driving the yacht charter sector.
New tourist locations that provide luxury cruises and breathtaking landscapes have enticed wealthy and ultra-wealthy people from all over the world to visit them. Furthermore, by expanding premium amenities such as infrastructure, Internet facilities, and bars and restaurants, companies are focusing more on delivering enhanced and expanded luxury cruises for their customers, which is predicted to grow the yacht charter industry in the retail segment.
COVID-19 Impact On Market
The global outbreak of the coronavirus (COVID-19) wreaked havoc on the travel and tourism business, particularly the yacht charter industry. This pandemic created a lot of uncertainty in the sector, as well as a panic situation for everyone involved in the industrial value chain.
It was unable to predict when the yacht rental industry would resume. As a result, important industry players are putting up their best efforts to mitigate the pandemic's uncertainties by including safety and preventative measures into yacht charter agreements.
It's worth emphasising that, given the nature of the industry, many people believe that once the pandemic situation eases out totally, the charter market will quickly recover. Although it is difficult to predict the pandemic's duration, the advent of COVID-19 vaccines in early 2021 is anticipated to benefit the travel and tourism business.
Furthermore, several firms are resuming chartering services, putting in place various safety standards to protect both, passengers and crew. As a result, over the projection period, the yacht charter business is expected to reach its full potential.
Some of the significant providers of yacht charters are NORTHROP & JOHNSON, Yachtico Inc., Sailogy S.A., Sweet Escape Yacht Charters, ARGO NAUTICAL LIMITED, Burgess, and Yacht Charter Fleet.
Major players in the yacht rental industry are pursuing acquisition and development strategies to expand their foreign footprint, which will create an opportunity for yacht charter companies to expand their business. By applying advanced technologies, firms can increase sales and strengthen their position in the yacht charter space.
To increase the appeal of yacht vacations, online service providers in the yacht charter sector are developing intuitively-designed online boaters' communities. This serves as a social network for boaters, providing them with information on places to visit, resources, and restaurants and pubs.
During the projection period, all of these efforts and activities on the part of industry participants are projected to fuel industry growth.
Latest Yacht Charter Marketing Development
Feb 2022: Northrop & Johnson and NetJets, a private aviation company, announced cooperation in February 2022. By offering elevated travel experiences in the sky, on the sea, and everywhere in between, their alliance will give clients a luxurious, pleasant, and memorable travel experience.