Yacht Charter Market will Gain Pace as More Companies Invest in Advanced Technologies: FMI
Global yacht charter sales is expected to grow at a healthy CAGR of over 5.4% during the forecast period 2021-2031, according to a study by ESOMAR-certified market research firm, Future Market Insights (FMI). The study tracks yacht charter sales in 20+ countries, offering a lucid analysis on how growth trend will unfold.
Yacht Charter Market
A recent market study published by Future Market Insights on the yacht charter market offe...
Market players have been attempting to provide advanced yacht for charter as they have realised the value of incorporating cutting-edge technology. As a result, existing players are increasingly attempting to preserve full operational transparency and deliver advanced smart yachts with a range of smart technologies to offer multifunctional areas and spaces, main saloon, and beach clubt.
For instance, the sensational mega yacht LANA (107m/351.1ft) from Italian shipyard Benetti embraces art deco dignity and seamlessly blends it with the sporty curves, pale colours, and various textures of contemporary architecture. Guests will enjoy a beautiful beach club with fold-down terraces, a hammam-style spa and a gym, as well as big lounges with cinema-style seating.
Apart from that, yachts spend the majority of their time cruising within reach of the coast. As a result, the players are investing to make 4G LTE and 5G networks more available than ever before, offering cost-effective high-bandwidth connectivity to consumers on board through bonded 5G compliant data systems.
Such offerings entice customers to spend long hours with their families and friends, or to make their holidays memorable. All aspects of a luxury yacht, including navigation, safety, and extraordinary convenience, are improving due to new technologies.
For example, DLBA Naval Architects have developed a self-sailing superyacht. Tempo, the yacht, will incorporate artificial intelligence (AI) into various aspects of its architecture. This will not only boost the on-board experience, but it will also mean that certain systems will be able to function without the need for human intervention.
Another factor that is expected to boost the growth of the yacht charters is the short-term rentals, which typically last one to three days and are not affected by seasonality, a factor that limits the number of days available for renting yachts. With the rising demand for short-term rentals, yacht charter service providers are concentrating on regular rental rates for two-day yacht charters, which are usually 40-50 percent of the weekly fare.
Key Takeaways from the Yacht Charter Market Study
- The yacht charter market is forecast to rise at a CAGR of 5.4% between 2021 and 2031.
- High spending on luxury vacations catapults the U.S. as a key market.
- Demand in Thailand will continue rising in response to the expanding tourism sector
- Indonesia and Maldives will emerge as popular yacht charter destinations in Asia Pacific
- Demand in GCC countries will rise at above 7% CAGR between 2021 and 2031
“Leading players in the global yacht charter market are nvesting in cutting-edge yacht interiors, such as the use of one-of-a-kind textiles and fabrics with an emphasis on sustainability to match the yacht aesthetic. Unique motor and sailing yachts with new decor, woodwork, and beautiful lighting are introduced by businesses,” says an FMI analyst.
Impact of COVID-19 on the Market:
Before the COVID-19 pandemic, there was a moderate rate of growth in the demand for yacht charter globally. After the pandemic, major global markets have faced dual impacts. The demand for technology-driven motor yacht has increased due to its variety of benefits. But with stay-at-home orders and safer-at-home advisories issued across the world the demand of the yacht charter has decelerated in response to the implementation of various restrictions. The restrictions were also imposed on the tourist places such as Indonesia, Malaysia, the U.K. and the U.S.
Who is winning?
Some of the key players present in the yacht charter market are NORTHROP & JOHNSON, Yachtico Inc., Sailogy S.A., Sweet Escape Yacht Charters, ARGO NAUTICAL LIMITED, Burgess, Sunseeker , Royal Yacht International, Ionian Catamarans and IYC, Mooring Company, and Zizooboats GmbH, among others. Extensive discount offerings on the yacht charters during the seasons and on some events such as corporate parties or pre-wedding shoots and other such events has driven a desire among end consumers to opt for the charters embedded with smart technologies.
Architects and builders are looking for natural and green-certified construction materials. Alternative energy sources such as the sun, wind, and waves can now be harnessed with the help of technological advancements. The use of wastewater treatment methods and compostable supplies, as well as recycling and the removal of unnecessary plastic waste, are all employed. The players are concentrating their efforts on providing environmentally friendly yachts in order to contribute to long-term initiatives. For instance, the Black Pearl is an environment friendly private yacht that was recently awarded a Boat International Design and Innovation Prize. When the boat is sailing, electricity is provided and sent back to the batteries, so the hybrid diesel-electric engine does not need a charging station.
In 2019, Feadship Company introduced 75-meter motor yacht 703 ‘Arrow' for charter at its Aalsmeer shipyard. H2 Yacht Design produced the company's Arrow yacht.
Get Valuable Insights into Yacht Charter Market
- Future Market Insights, in its new offering, provides an unbiased analysis of the global yacht charter market, presenting historical demand data (2016-2020) and forecast statistics for the period from 2021-2031. The study divulges compelling insights on the yacht charter market based on the yacht type (Sailing yacht & Motor Yacht), Size (Small - up to 30m, Medium -30m-50m and Large -over 50m), Consumer Type (Corporate & Retail Type) across seven major regions.
According to Future Market Insights’ recent market report titled “Global Yacht Charter Market: Global Industry Analysis 2016-2020 and Opportunity Assessment 2021-2031”, is expected to show favourable growth and opportunity trends. Yacht charters are used to sail to a variety of coastal and island locations. This is generally a leisure activity, but it may also be used for the business events.
Customers from all over the world, regardless of the season, are becoming increasingly involved in chartering yachts on weekends after a long week. With the increased demand for short-term rentals, yacht charter companies are focusing on daily rental rates for two-day yacht charters, which are usually half the price of a week's charter. Customers can book their boat trips at the same time as their plane tickets.
Apart from that, customers prefer online yacht booking services because they allow for quicker and more customised bookings at a lower cost than offline platforms or via travel agents. Prominent tour and travel companies are partnering with online yacht charter service providers to provide combined yacht and airline packages.
For example, within the Sabre travel marketplace, the Yachtico Company introduced an app that enables travel agencies to book yacht and boat charters. The Yachtico app, which is now accessible via the Sabre Red App Centre, gives travel agents access to a database of 16,000 professionally operated yachts. Apart from that the players are even providing exclusive offers such as discounts on charters.
For instance, NetJets Inc. announced a strategic alliance with Northrop & Johnson in September 2019 to provide yachting enthusiasts with a superior travel experience and a variety of exclusive offers.
About Services and Utilities Division at Future Market Insights
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About Future Market Insights (FMI)
Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in Dubai, and has delivery centers in the UK, U.S. and India. FMI's latest market research reports and industry analysis help businesses navigate challenges and make critical decisions with confidence and clarity amidst breakneck competition. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. A team of expert-led analysts at FMI continuously tracks emerging trends and events in a broad range of industries to ensure that our clients prepare for the evolving needs of their consumers.
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