Jan 14, 2020 5:05 AM ET
Yacht Charter Market Size is Forecast to Grow at CAGR of 6.2% during 2020-2025
iCrowd Newswire -
Jan 14, 2020
The Yacht Charter Market size is forecast to reach $ 14.98 billion by 2025 growing at a CAGR of 6.2% during the forecast period 2020-2025. Growing interest towards leisure activities such as sailing and growing number of tourism are envisioned to be the dynamic factor behind the rapid growth of yacht charter market across the globe. Moreover, advance booking methods are allowing consumers to book yacht while booking flights tickets is also expected to propel the growth of yacht charter market
. Further, favorable government programs to boost tourism are also predicted to elevate the market of yacht charter. In addition to this, swelled disposable income coupled with positive GDP figures of developed and developing nations such as U.S. and others are projected to flourish the growth of yacht charter market. Likely, rising adoption of sailing vacations by affluent consumers is expected to boost the demand for yacht charter.
- With the increasing interest of people towards marine tourism, yacht charter business is set to exhibit robust growth in the forecast period 2020-2025.
- Rising affluence and inclination towards luxurious lifestyle has significantly uplifted the demand for yacht chartering services
- Increasing effort from yacht builders & service providers focusing to provide more luxurious features are the substantial driving factors of the market during the forecast period.
- High cost associated with yacht charter is anticipated to hamper the growth of yacht charter market over the forecast period.
Yacht Type – Segment Analysis
On the basis of type, the Motor Yachts segment has been analyzed to witness a high CAGR of 6.59% during the forecast period 2020-2025. Unlike a sailing yacht, a motor yacht powers through sea elements allowing them to cover greater distances in less time. Moreover the shallow draft design allow the yacht to navigate through shallow and narrow passages enabling to explore almost any coastline or archipelago. The two important types of charters are crewed and bareboat. The global yachts charter service market has experienced considerable adoption, particularly from younger population. Most of the young consumers are generally first-time boaters, who frequently celebrate programs such as weekend and birthday parties especially in the form of yacht holidays. Motor yachts tend to have more deck space for basking in the sun, dining al fresco, and entertaining with family and friends. More over Luxury motor yachts are equipped with better communication options and modern conveniences which is propelling the adoption of Motor Yachts over Sailing Yachts.
Application – Segment Analysis
The retail segment is expected to grow at a CAGR of 6.89% during the forecast period 2020-2025. The yacht charter market growth is highly driven due to increasing interest in luxury cruising from high net worth and ultra-high net worth individuals (UHNWI) worldwide. With more than 200,000 households falling under ultra-high net worth category, yacht charter has been gaining immense popularity since the past few years. Similarly, according to 2017 World Health Report by Capgemini, the total number high net worth individuals (HNWI) worldwide increased by nearly 8% to a record-breaking 16.5 Mn. This has ensured a promising consumer base for yacht charter services worldwide. Emergence of new tourist destinations (such as Southeast Asia) offering luxury yacht cruising along with scenic beauty has been encouraging the HNWIs and UHNWIs across the world to explore such tourist destinations. Yacht charter companies are now more focused on providing enhanced luxury cruising to their consumers by improving their infrastructure including more sophisticated bars & restaurants, internet connectivity and other related IT tools which will further boost the growth of Yacht Charter Market during the forecast period.
Geography – Segment Analysis
Europe is forecast to dominate the Yacht Charter Market with the highest market share of 58% in 2018 and is expected to grow at a considerable CAGR during the forecast period. Growing tourism in this region along with presence major yacht charters is expected to drive the yacht charter market in Europe. Likely, Turkey and Italy are the dominating countries in this region. Additionally, collaboration of online yacht charter and flight booking service providers in Europe region is projected to propel the growth of yacht charter market. Rise in number of issued license for water craft and presence of wealthy population is also expected to boost the market growth. For Instance, according to European Commission’s report on nautical tourism (2017), about 6 million boats are kept in European waters out of which 60,000 charter boats generate up to € 6 billion turnover each year.
Drivers – Yacht Charter Market
- Growing Inclination towards marine tourism to drive the Yacht Charter Market.
Rising disposable income of the consumers coupled with growing interest towards marine tourism and leisure activities such as sailing is expected to drive the Yacht charter market. Recreational boating has been witnessing immense popularity since the past few years, paving way for yacht charter services. Increasing number of promotional programs promoting yachts, technological developments, raising several online yacht service providers, rising number of yachts accessible on rent are some of the most important aspects which will propel the development of the global yachts charter market.
- Government initiatives to drive the Yatch Charter Market.
Government programs and initiatives to promote marine tourism is expected to boost the Yacht Charter Market. For instance, the Indian government is enhancing infrastructure and services to support port city excursions and domestic tourism with aim of promoting cruise tourism and increase sea arrivals to 1.2 million tourists by 2030-31. The Indonesian government renovated their marine tourism policy by removing CAIT (clearance approval for Indonesian territory) permit. This policy projected an increased number of yacht visits to Indonesia which was up to 6,000 yachts in 2019, creating an income of USD 600 million.
Challenges – Yacht Charter Market
- High cost associated with yacht charter is anticipated to hamper the growth of yacht charter market.
Western Europe countries such as Italy and others are the major countries witnessing the augmenting the demand for yacht charter due to presence of high net worth individuals (HNWI). Yacht charting is quite expensive as it is mainly utilized for leisure activities which is restraining the growth of Yatch Charter Market in other regions. However changing lifestyle of the consumers coupled with higher disposable income along with growing sea tourism will foster the growth yacht charter market.
The Key players embrace a variety of growth strategies, including mergers and acquisitions, collaboration and partnerships, joint ventures and few other strategies to strengthen the Market’s position. The top ten companies in the Yacht Charter Market include Yachito Inc., Boatbookings (Enitiative biz, Ltd.), Sailogy SA, Antlos Srl, Collaborative Boating Inc., Fraser Escape Bareboat Charters, Princess Yacht Charter, TUI Group, Zizooboats GmbH and SuperYacht Logistics among others.
Acquisitions/Partnerships/ Investments/ Product Launches
- In June 2018, Sailogy S.A., an online booking solution for yachts and sailboats, acquired the German company Master Yachting, becoming the global leader worth 50 billion.
- In February 2018, MasterCraft Boat Holdings, Inc. announced an exclusive national distribution partnership with MarineMax, Inc., the nation’s largest recreational boat and yacht retailer, to help maximize the success of its new brand, Aviara. Beyond this exclusive distribution arrangement, Aviara will also benefit from the ongoing collaboration with MarineMax on the innovative, unique and first to market product.
- In July 2018, Princess Yachts announced the launch of 6 new models. The exceptional launch programme and financial result is underpinned by a five-year £100 million investment programme began in 2015.
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