The yacht charter market is anticipated to register a CAGR of about 4% during the forecast period (2020 - 2025).
- A yacht charter provides an easy and convenient way to enjoy a long holiday with family and friends without actually owning any yacht. Yacht charter firms not only offer the yacht but in addition to that, they will provide the best itinerary as per the requirements of the customers, with captain and crew along with online or on-call support till total charter duration.
- In the total cost of yacht charter, the yacht is one of the major factor. A newly launched yacht along with experienced and popular charter crew will definitely cost higher and also if the yacht has any history of celebrity ownership.
- Different charter companies offer different programs in which any yacht owner can contract its unused yacht to any charter company that can maximize the charter potential of the yacht, which in turn will create a new revenue source for the yacht owner.
Key Market Trends
Increment in Fleet Size is Driving the Market
Various yacht charter companies are adding new yachts for staying ahead from their competitors as various charter companies have contracts with the yacht manufacturer that the new yacht being launched will be first provided to them for chartering. For instance
In April 2020, MYSEA announced that it has been appointed as the Global Charter Central Agent for the M/Y FLEUR yacht. This new yacht has various premium features such as Outdoor cinema, 2 jacuzzis, retractable roof, and many more.
Similarly, In March 2020, Motor Yacht RANIA42M / 137'10" Benetti is being added to the Fraser Charter fleet. The new motor yacht has a sleek and modern design with spacious and stylish interiors by famous studio Redman Whiteley Dixon. Along with that, it has also added 55M / 180’ STEEL from Pendennis which is an explorer yacht with features such as hot tub on the spacious sun deck.
Along with the addition of new yachts in the fleet charter companies have invested huge amounts for upgrading their fleet. For instance
In 2019, Sunsail has announced that it has invested around pound sterling 3.75 million for the addition of many new yachts in its fleet such as 15 Sunsail 41.0 yachts in 2020, and further 10 yachts next year.
Similarly in 2019, Dream Yacht Charter has announced that it has made approximately pound sterling130 million investments in its fleet globally. In the Mediterranean, the company added 35 catamarans and 48 monohulls and along with that, there are 195 yachts scheduled for delivery in 2020.
North America and Europe Is Expected to Lead the Market
Northern American yachting season is from May to October, whereas in South America it runs from January to September. Florida has one of the largest gatherings of private superyachts. It has two coastal borders one in the Atlantic and other in the Gulf of Mexico and it holds around 30,000 lakes. Similarly, Europe preferred as on of the top destination for marine culture, particularly northern Europe has a very rich culture of yacht charters, countries such as England, Ireland, Scotland, Denmark, Norway, Sweden, Germany, and Russia, have the presence of a variety of options to choose from crewed yachts, luxury yachts, and motor yachts. Many superyachts are also available for charter along with explorer/expedition yachts. Summer season mainly from May to about September is the best time to charter a yacht in Europe.
Many countries are reforming their rules and tax regulation which is affecting the yacht charter market. For instance, in January 2020, the French Tax Authorities released an Official Tax Bulletin (BOFIP BOI-TVA-CHAMP-20-50-30-20200129) with some new rules which will be affecting charter contracts signed after March 30th, 2020. The VAT will be charged at a 20% rate when the yacht is sailing in EU water bodies, and there will be no VAT while sailing in international waters. As long as any boat is in EU waters it is fully subjected to VAT.
The yacht charter market is moderately fragmented, has a number of active players, and also the market is witnessing the emergence of many new startups. Some of the major players in the market are Burgess, Northrop and Johnson, Dream Yacht Charter, amongst others. The companies are expanding their presence by increasing their fleet size and tapping in new and unexplored markets. For instance,
- In May 2020, Ocean Independence announced that it has added 44m Burger motor yacht PURE BLISS to its charter fleet. this seven-stateroom superyacht can accommodate 12 guests and have exceptional features such as elevator access up to three decks and a great range of water sport toys.
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