Yacht Charter Market Size, Share & Industry 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 Forecast, 2024-2032

The global yacht charter market size was valued at USD 7.74 billion in 2023. The market is projected to grow from USD 8.33 billion in 2024 to USD 15.53 billion by 2032, exhibiting a CAGR of 8.1% during the forecast period.

A yacht charter service, which offers boat rentals for recreational and leisure pursuits, provides individuals with the opportunity to hire watercraft. Individuals or companies can privately own yachts, or they can be made available for rental. Yachts equipped with professional crews boast lavish amenities, making them suitable for both corporate and leisure use. These vessels provide a seamless luxury experience, adhering to the highest standards of comfort. Yachts are commonly used in activities such as sailing and fishing, particularly in European countries, offering a range of benefits from thrilling adventures to complete relaxation.

In response to the increasing demand for marine tourism and water sports activities, original equipment manufacturers (OEM) consistently engage in innovation, developing yachts with high-speed capabilities and luxurious features. Yacht rental companies facilitate convenient access to charter vessels through online platforms and mobile applications, contributing to the expected market growth in the years to come.

The imposition of travel restrictions and lockdowns during the COVID-19 pandemic in many regions had a direct impact on the yacht charter industry. Movement limitations and closed borders led to a decrease in international travel, affecting the demand for the product, especially in destinations that heavily rely on tourists.

Yacht Charter Market Trends

Growing Trends of Digital Platforms and Mobile Apps for Yacht Charter Booking to Drive the Market Growth

Yacht charter companies have been increasingly leveraging digital platforms and mobile applications to streamline booking processes. These platforms offer convenient and transparent ways for clients to browse available yachts, compare prices, and make reservations. Digital platforms and booking apps prioritize user-friendly interfaces to ensure a seamless and convenient experience for clients. Intuitive navigation, high-quality visuals, and detailed information about each yacht contribute to an engaging and informative booking process.

Moreover, tourists can browse and book yacht charters at their convenience through these digital platforms. The ability to view real-time availability, compare options, and complete reservations online streamlines the booking process, eliminating the need for extensive offline communication.

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Yacht Charter Market Growth Factors

Growing Popularity of Luxury and Marine Tourism to Fuel the Market Growth

The increasing global affluence, particularly among high-net-worth individuals, has boosted demand for luxury experiences, including the product. These products are considered a premium and exclusive form of travel, attracting those seeking high-end and personalized leisure experiences. There is a broader trend toward experiential travel, where individuals seek unique and memorable experiences. The product aligns with this trend by offering the opportunity to explore picturesque destinations, indulge in personalized services, and enjoy a customized journey on the open seas.

These products are increasingly popular for exploring specific destinations, coastal regions, and island-hopping experiences. The flexibility to visit multiple locations in a single trip and the allure of secluded or less-travelled destinations contribute to the expansion of the yacht charter market. Furthermore, technological advancements, including innovations in yacht design, propulsion systems, and onboard amenities, attract charter clients looking for the latest in luxury and comfort. The incorporation of eco-friendly technologies, such as hybrid or electric propulsion, also appeals to environmentally conscious travellers.

RESTRAINING FACTORS

High Costs of the Product May Hinder the Market Growth

The yacht is available for rent at a base or weekly rate. Various factors, including the yacht type, crew requirements, charter destination, local taxes, and fundamental expenses influence the overall cost of a product. Consequently, a broad spectrum of basic rates for charters exists. Notably, charter rates span from USD 10,000 weekly for catamarans and smaller sailing yachts to as high as USD 150,000 weekly for the most opulent motor superyachts.

It is essential to consider additional expenses, which are not compulsory but typically account for around 15-30% of the base fare. These hidden costs encompass taxes, value-added tax (VAT), insurance, crew gratuities, and prepayments for meals collected before the commencement of the charter.

As an illustration, the Bahamas has introduced a new 10% VAT rate for all foreign-flagged charter yachts, applicable to contracts signed after July 1, 2022. Coupled with the existing 4% charter fee, this new addition brings the total additional cost to 14%. This amount functions akin to an expense account accessible to the captain during the charter. Such costs pose a hurdle for customers from developing countries, thereby placing constraints on the growth of the yacht charter market.

Yacht Charter Market Segmentation Analysis

By Contract Type Analysis

Bareboat Segment Held a Major Market Share Due to High-Level of Autonomy

Based on contract type, the market is segmented into bareboat and crewed. The bareboat segment held the largest share in 2023 due to the high level of autonomy offered by the bareboat to sailors, individuals or groups compared to crewed boats. Many enthusiasts prefer the hands-on experience of sailing, handling the yacht's operations, and navigating the waters themselves by using the bareboat. This demographic values the opportunity to showcase their sailing skills and enjoy a more intimate connection with the sea. Compared to crewed charters, bareboat charters are often more cost-effective. By eliminating the expense of a professional crew, charterers can allocate their budget more toward the yacht itself and other aspects of the trip. This affordability makes bareboat charters an attractive option for those looking to maximize their sailing experience within a specific budget.

The crewed segment is experiencing significant growth due to growing demand for the luxurious experience. Crewed charters provide a high level of personalized service. The crew is trained to cater to the specific preferences and requirements of the charterers, creating a customized and memorable experience. From gourmet meals to personalized itineraries, the crew is dedicated to meeting the guests' expectations.

By Yacht Size Analysis

Up to 40m Segment Captures the Largest Share Due to the Flexibility & Affordability of Small Products

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 leading global market share due to its ease of manoeuvrability. Smaller yachts are generally more manoeuvrable, allowing them to access narrower waterways, shallow anchorages, and secluded bays that might be challenging for larger vessels. This flexibility enhances the variety of destinations and experiences available to charterers. Yachts in the up to 40-meter size range are often more cost-effective than larger vessels in terms of charter fees, operational costs, and maintenance. This makes them attractive to a broader audience, including those looking for a premium experience within a specific budget.

The 40 to 60 m segment is expected to grow at a significant rate during the forecast period. The size of these yachts allows for the comfortable accommodation of larger groups, making them suitable for family vacations, group celebrations, or corporate events. Clients can enjoy the exclusivity of a private yacht charter while sharing the experience with a significant number of guests.

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By Yacht Type Analysis

Motor Yacht Segment Dominates the Market Owing to Speed and Efficiency

Based on yacht type, the market is segmented 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. Motor yachts are known for their speed and efficiency in covering long distances in shorter timeframes compared to sailing yachts. This appeals to charter clients who prioritize reaching multiple destinations quickly and maximizing their time for exploration and relaxation. Furthermore, the increasing number of sporting activities, boating events, and tournaments create a high demand for motor yachts.

The sailing yacht segment is expected to show steady growth in the market during the forecast period owing to the growing demand for environment-friendly yachts among people. Sailing yachts are often considered more environmentally friendly compared to motor yachts, as they harness the power of the wind for propulsion. Charter clients with a focus on sustainable and eco-friendly travel are drawn to sailing charters as a greener alternative, aligning with their values and contributing to the appeal of a low-impact vacation.

By End-use Analysis

Leisure Segment Accounted for the Largest Market Share Due to the Rising Number of High Net worth Individuals

By end-use, the market segmented into leisure, business, and others.

The leisure segment held the major global market share in 2023 due to an increase in individuals' disposable income. There is an increasing inclination toward the luxury yacht rental industry, especially from high-net-worth individuals (HNWI) and ultra-high-net-worth individuals (UHNWI) worldwide. Leisure yacht charting offers highly personalized experiences, allowing clients to tailor their itineraries, choose onboard activities, and enjoy customized services. This level of personalization caters to individuals and groups with specific preferences and desires.

The business sector is witnessing a surge in popularity within the market, primarily because the yacht business operates on a straightforward concept, resembling other profit-oriented enterprises. Individuals belonging to higher income brackets or those with substantial tax liabilities are increasingly investing in yachts and actively managing them for profit, either through third-party management services or by direct involvement. Notably, in the U.S., buyers falling into the high-income tax brackets often opt for this ownership model.

REGIONAL INSIGHTS

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

Geographically, the market is segmented into the Asia Pacific, Europe, North America, and the rest of the world.

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Europe held the largest yacht charter market share in 2023. The region offers a diverse range of coastal landscapes and picturesque destinations, making it highly attractive for yacht charterers. From the Mediterranean with its stunning islands to the rugged coastlines of the Adriatic and the historic charm of the French Riviera, Europe provides a rich variety of cruising grounds. It also has a well-established yachting infrastructure with numerous marinas, ports, and facilities catering to the needs of charters. The presence of a comprehensive network of services, including refuelling, maintenance, and support, contributes to the convenience and accessibility of yacht rentals in the region.

North America secures the second-most significant position in the market, benefitting from its diverse coastlines that offer exceptional cruise destinations. The U.S. takes the lead within this regional market, primarily due to the presence of major charter hubs in the country.

The Asia Pacific market is poised to exhibit the highest growth rate in the foreseeable future. This growth is attributed to rapid urbanization, elevating living standards, and increasing disposable income, influencing the evolution of individual preferences. The surge in popularity of recreational pursuits, including fishing and water sports in countries such as Thailand, Malaysia, Singapore, China, Japan, and Australia, coupled with the expanding maritime tourism sector, presents lucrative opportunities for companies. Furthermore, proactive government initiatives aimed at fostering maritime tourism, particularly in nations such as China and India, are anticipated to propel the market growth in the region.

List of Key Companies in Yacht Charter Market

Significant Product Offerings by Dream Yacht Charter to Enhance its Position

Established in 2000 by Loic Bonnet, Dream Yacht Charter stands as a global leader in yacht expertise, specializing in charter management, brokerage, and private yacht ownership. Headquartered in Maryland, U.S., the company is recognized for its pioneering role in providing seamless charters, expert guidance, and tailored solutions. Renowned for introducing new sailing destinations, Dream Yacht Charter offers a diverse array of charter options, including Captain, Bareboat, Sabbatical, Crewed, and Cabined. With a fleet of over 1,000 yachts situated in approximately 60 locations worldwide, the company holds ownership of vessels from some of the world's largest yacht builders, such as Dufour, Aquila, and Fontaine Pajot. In 2019, Dream Yacht Charter initiated the MoreWomenAtSea campaign, aiming to encourage increased female participation in sailing and nautical education. Building on its commitment to diverse experiences, the company entered a partnership with river cruise specialist Les Canalous in February 2020, facilitating the expansion of boat holidays on canals throughout 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:

• July 2023: Northrop & Johnson added MAORIA Numarine Yacht to its fleet. The 85’4” (25.6m) yacht has been made available to cruise through France, including Corsica and Sardinia. The cost of charters starts from USD 59,390 per week, plus expenses.


• July 2023: Camper & Nicholsons International Ltd added Eratosthenes to its charter CA fleet from Nautor’s Swan. The sailing yacht is 34.3m and accommodates six guests in three cabins, along with two Pullman berths especially suited to children. The yacht is available for charter in the Greek islands.


• April 2023: Ocean Independence added the 27m motor yacht A4 to its charter fleet. It can accommodate ten guests in 4 staterooms. In addition, three crew members run the yacht.


• January 2023: Burgess Yachts announced the addition of six new stunning yachts to its fleet. This new addition includes the luxury of M'BRACE to chic free spirit ENTERPRISE, elegant lady LIND to high octane ROX STAR. All these yacht helped the company to attrach more  tourists during the summer.


• January 2023: Dream Yacht Worldwide and Fountaine Pajot, builders of leading-edge luxury catamarans, announced their partnership to launch their fleet’s first collection of electric catamarans. The Aura 51 Smart Electric will be the first electric model introduced to the Dream Yacht Worldwide fleet and made available for chartering in Italy from April 2023.

REPORT COVERAGE

The research report provides a detailed market analysis and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, it 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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