Yacht Charter Market Size, Share & COVID-19 Impact Analysis, By Yacht Type (Motor Yacht, Sailing Yacht, and Others), By Yacht Size (Up to 40m, 40 to 60 m, and Above 60m), By End-use (Leisure, Business, and Others), By Contract Type (Bareboat and Crewed), and Regional Forecasts, 2023-2030

The global yacht charter market size was valued at USD 7.22 billion in 2022. The market is projected to grow from USD 7.59 billion in 2023 to USD 11.06 billion by 2030, exhibiting a CAGR of 5.5% during the forecast period.

A yacht charter is a service for hiring boats for recreational and leisure purposes. Yachts can be privately owned by individuals or companies or rented for charter. Professionally crewed yachts are equipped with luxurious amenities. These yachts are chartered for corporate and leisure purposes and offer a seamless luxury experience with the highest comfort and standards. Yachts are used for sailing and fishing in some parts of the world, especially in European countries. They offer all the benefits, from great adventures to total relaxation.

OEM constantly develops high-speed and luxury feature yachts to meet the increasing demand for marine tourism and water sports activities. Yacht rental companies also offer convenient booking of charter yachts through online platforms and mobile applications. Therefore, the market is expected to become popular in the coming years.

COVID-19 IMPACT

Decrease in Yacht Charter Demand Amid COVID-19 to Hamper Market Growth

The tourism segment witnessed a decline in growth during 2020 owing to adverse effects on the global tourism industry and a decline in the number of tourists visiting tourist places. The COVID-19 pandemic has severely impacted the travel and tourism industry, especially the yacht charter industry, which has stalled due to the rapid spread of the virus worldwide. This pandemic has caused vast uncertainty in the industry and a panic situation for all the members of the industrial value chain involved in it as they cannot forecast the resuming of the yacht rental business. Industry players are taking steps to overcome the uncertainty created by the pandemic, including safety and precautionary measures in charter contracts. However, people were optimistic that the charter market will recover soon once the pandemic eases. In 2022, the U.S. yacht sales started normalizing after witnessing solid growth in the past two years. In 2022, consumer spending patterns changed from yachting activities to other accessible activities, travel, music concerts, and sporting events.

In Europe, Asia Pacific, Latin America, and the Middle East & Africa, the growth of yacht charter slowed down during 2020 due to uncertainties. However, the market returned to normalcy and will show strong growth over the next few years.

LATEST TRENDS

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Favorable Trends Associated with Marine Tourism and Private Island Resorts to Aid Market Augmentation

Marine tourism has a positive impact on economic growth in several ways. It also earns foreign exchange and contributes to government revenue. It creates jobs and makes an essential contribution to the local economy. In addition, it provides various sociocultural benefits such as strengthening communities and promoting sustainable tourism. Many countries worldwide are developing policies to strengthen the coastal tourism sector due to climate change and environmental degradation.

The maritime policy of the European Union supports the growth of coastal tourism and marine economic activity.

• For example, in January 2021, the National Oceanic and Atmospheric Administration (NOAA) finalized the Blue Economy Strategy Plan, 2021-2025 to accelerate the growth of the American Blue Economy. This strategy focuses on five divisions, ocean exploration, tourism and recreation, maritime transport, water sports competitiveness, and coastal resilience.

India also plans to develop 78 marine tourist attractions in the coming years. Such initiatives will encourage the growth of marine tourism in the future and thus support market growth.                                        

DRIVING FACTORS 

Growing Popularity of Recreational Yachting and Marine Tourism Activities to Aid Market Expansion

The increasing disposable income of customers and the growing inclination toward marine tourism and leisure activities, such as sailing, are aiding market expansion. Recreational boating has been gaining popularity for the past few years, paving the way for yacht rental services. Moreover, advanced booking systems are permitting customers to charter yachts at the time of booking flight tickets, which is ultimately propelling the growth of the market.

Beneficial government initiatives and programs to boost marine tourism are expected to spur market growth. For example, the Indian government will develop infrastructure and services to support local tourism and port city tours to encourage cruise travel and increase maritime tourists to 1.5 million by 2030-31. The Indonesian government has also updated its maritime tourism policy by abolishing the CAIT license (Indonesian Territorial Customs Authorization). The policy predicts a significant increase in yacht visits to Indonesia, generating over USD 500 million in revenues.

RESTRAINING FACTORS

High Costs of Yacht Charter to Hinder the Market Growth 

Yacht has a base rate or a weekly rate for renting it. The cost of a yacht charter depends on several factors such as the type of yacht, crew required, charter destination, local taxes, and basic costs. Therefore, there is a wide range of basic rates for charters. Additionally, charter rates range from USD 10,000 per week for smaller sailing yachts and catamarans to USD 150,000 per week for the most luxurious motor superyachts. In addition, hidden costs, such as taxes and Value-Added Tax (VAT), insurance, crew gratuities, and meal prepayments, are not mandatory but cost approximately 15-30% of the base fare and are collected before the charter.

For instance, the Bahamas announced a new tax rate of 10% VAT for all foreign-flagged charter yachts. This will be enforced on all charter contracts signed after the 1st of July 2022. This new addition to the 4% charter fee will total an additional 14% cost. It is similar to an expense account the captain can access during the charter. Such cost is a barrier to many developing countries’ customers, further restraining the yacht charter market growth.

SEGMENTATION

By Contract Type Analysis

Bareboat Segment to Hold a Major Market Share Due to the Privacy Offered 

Based on contract type, the market is segmented into bareboat and crewed. The bareboat segment holds the largest share of the global market in value due to various benefits such as more independence and privacy offered by bareboat compared to crewed boats. A bareboat charter is an arrangement in which an individual charters a vessel and steers the boat without other crew or services. The individual or group renting the boat from the owner is responsible for caring for the boat.

Many bareboat charter companies also offer courses to train a person in basic navigation skills and prepare for the bareboat charter. Sometimes, these companies also offer captain charters. Most chartered bareboat yachts are up to 40 meters in length. People typically rent bareboat yachts for fishing, sporting events, or sailing from one destination to another. Crewed is the fastest-growing segment. Rising demand for superyachts, increasing cruise line participation, and hybrid business models are the factors responsible for growth of this segment.

By Yacht Size Analysis

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Up to 40m Segment to Capture the Largest Market Share Due to Affordability of Small Yacht Charters

Based on yacht size, the market is classified into up to 40m, 40 to 60m, and above 60m. The up to 40m segment accounts for the largest global market share. These yachts can be utilized for both personal activities in competitive and recreational boating activities purposes. The 40m charter has various advantages, including wind sailing capabilities that ensure wind direction and conserve fuel. End-users also favor yachts of up to 40m due to its affordability, low maintenance costs, fixed installation in shallow waters, and ease of use with low mooring costs.

 Rapid urbanization, rising living standards, growing personal disposable incomes, and increasing upper-class population have increased individuals' ability to spend on luxury goods and leisure activities. Therefore, the yacht services market has also seen a significant increase in demand in recent years. Observed trends in yacht construction indicate that the average length of yachts is increasing by 3 cm each year. This is owing to the rising demand for superyachts and mega yachts in most developed countries and the overall surge in tourism in these regions. Therefore, the 40-60m segment is expected to grow significantly, while the above 60m segment exhibited the fastest growth rate during the forecast period.

By Yacht Type Analysis

Motor Yacht Segment Dominates the Market Owing to Demand for Recreational Activities

The market is segmented based on yacht type into motor yacht, sailing yacht, and others.

The motor yacht segment holds the largest share globally and is expected to retain its leading position in the market during the forecast period. This growth can be attributed to the growing demand for motor yachts for personal and recreational activities in various countries worldwide. Motor yachts offer several advantages such as enhanced speed, power, and the ability to cover longer distances in less time. Moreover, motor yachts can be sailed in shallow water, allowing customers to navigate almost all coastlines and narrow and shallow creeks. Furthermore, increasing sporting activities, boating events, and tournaments create high demand for motor yachts.

The sailing yachts segment is expected to show steady growth in the market owing to the growing demand for environment-friendly yachts among people. Fuel emissions are a major pollutant in modern times, and the yacht industry contributes a substantial amount of the same. Moreover, sailing yachts are cheaper than other yachts and can travel more distances than motor yachts.

By End-user Analysis

Leisure Segment to Account for the Largest Market Share Due to the Rising Number of High Net Worth Individuals

The market is further segmented into leisure, business, and others based on end-user.

The leisure segment held the major global market share in 2022 due to increased tourism. The increasing inclination toward luxury cruising drives the yacht rental industry, especially from High-Net-Worth Individuals (HNWI) and Ultra-High Net Worth Individuals (UHNWI) worldwide.

The emergence of new tourist destinations offering luxury cruises and beautiful scenery has encouraged wealthy and ultra-rich people worldwide to discover these tourist destinations. Moreover, leading companies focus more on providing enhanced and extensive luxury cruising for their customers by developing premium features such as infrastructure, internet facilities, and bars and restaurants, which is expected further to boost the yacht industry in the leisure segment.

The business segment is gaining popularity in the market as the yacht business is a simple concept and is structured much like any other profit-earning business. Higher-class individuals or high-tax payers are increasing their investment in yachts and operating them actively for profit through third-party management services or themselves. Significantly, the U.S. buyers who fall under the high-income tax brackets choose this ownership option.

For instance, in April 2020, MYSEA announced its appointment as the Global Charter Central Agent of M/Y FLEUR Yacht with several exceptional facilities such as a retractable roof, Jacuzzis, and outdoor cinema, among others.

REGIONAL INSIGHTS 

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Europe Dominates the Market Due to Well-Established Tourism Industry in the Region

Geographically, the market is segmented into Asia Pacific, Europe, North America, and the Rest of the World.

Europe held the largest yacht charter market share in 2022. The region will likely dominate the market due to the high growth of sea tourism and the rising number of tourist destinations. Countries, such as Croatia, Greece, France, Spain, and Italy, are the major tourist destinations. The increasing popularity of fishing activities and water sports and rising number of upper-class individuals are expected to drive the development of the market in the region. European flight bookings, cooperation with online demand for charter service providers, and increased craft permits issued are expected to boost market growth. The region's wealthy population is also likely to drive market growth. 

North America holds the second most important position in the market as the region's diverse coastlines have great cruise destinations. The U.S. ranks first in this regional market due to the presence of major charter hubs in the country.

The Asia Pacific yacht charter market is expected to record the highest CAGR in the coming years. This growth has been attributed to the rapid increase in urbanization, rising living standards, and rising disposable income, leading to the evolution of individual tastes. The growing popularity of recreational activities, such as fishing and water sports, in Thailand, Malaysia, Singapore, China, Japan and Australia, and increasing maritime tourism, present excellent opportunities for yacht hiring companies. Moreover, aggressive government initiatives to develop maritime tourism, especially in countries, such as China and India, are expected to boost market growth.

KEY INDUSTRY PLAYERS

Significant Product Offerings by Dream Yacht Charter to Enhance its Market Prospects

Dream Yacht Charter is the world's leading yacht specialist in charter management, brokerage, and private yacht ownership. Loic Bonnet founded the company in 2000 and is headquartered in Maryland, U.S. The company is a pioneer in providing easy and hassle-free charters, expert advice, and bespoke solutions. The company is well known for offering new sailing destinations and a wide range of charters, including Captain, Bareboat, Sabbatical, Crewed, and Cabined. The company currently owns over 1,000 yachts in around 60 locations worldwide. The company owns some of the world's largest yacht builders, including Dufour, Aquila, and Fontaine Pajot. In 2019, the company launched the MoreWomenAtSea campaign to encourage more women to go to sea and get a sailing education. In February 2020, the company announced a partnership with river cruise specialist Les Canalous to expand and facilitate boat holidays on canals across Europe.

LIST OF KEY COMPANIES PROFILED:

• Worldwide Boat LLC (U.S.)


• Dream Yacht Group (U.S.)


• Northrop & Johnson (France)


• Sailo Inc. (Monaco)


• Camper & Nicholsons (Japan)


• Ocean Independence (Switzerland)


• Burgess Yachts (U.K.)


• The Moorings Limited (U.S.)


• Boatbookings (U.K.)


• Ritzy Charters LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2023: Camper & Nicholsons joined Yacht Club de Monaco to consolidate aims to foster innovation and spearhead a sustainable future for the yachting sector. This project brings together key stakeholders from the yachting sector for economic and sustainable growth.


• January 2023: Ocean Independence added 40m ATLANTIKA and 37m SUD to the Ocean Independence charter fleet. ATLANTIKA now accommodates up to 10 guests in five comfortable suite staterooms and offers entertainment and tranquility split across all decks.


• September 2022: The Biograd company Angelina Yacht Charter acquired 85% share in the Split-based charter company Ultra Sailing. With this acquisition, it will be the largest charter company in Croatia. The joint fleet of yachts will reach more than 260 vessels.


• January 2022: The new luxury yacht Berg was launched. This will be 55m long and become the first luxury charter yacht to cruise on the Nile. Berge’s charter route cruises between Luxor and Aswan, taking in the scenery of the most famous stretch of river, showcasing architecture and natural beauty.


• January 2021: Burgess declared a new partnership with Marine Solutions in India. With this collaboration, Burgess aims to serve its existing clients better and build new relationships in India, enhancing its charter offering in the Indian Ocean.

REPORT COVERAGE

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The market research report provides a detailed market analysis and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

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