“The COVID-19 pandemic brought an unprecedented decline in the overall yacht charter market”

The global Yacht charter market was valued at US$ 16.49 Bn in 2021 witnessing a steady growth in recent years. However, with the onset of the COVID-19 pandemic, almost all operations in the yacht charter market were halted due to severe lockdown restrictions and lack of tourism. Thereby, the overall global yacht charter market witnessed a decline of about 85% in 2020, accounting to only US$ 1.63 Bn in terms of market value. However, with easing lockdown restrictions in most countries coupled with resumption of the overall tourism industry, the yacht charter market is expected to steady reach pre-COVID-19 levels by 2023. On account of the significant drop in 2020 and estimated quick recovery in 2021 and 2023, the global yacht charter market is expected to bounce back with a CAGR of 25.6% during the forecast period from 2023 to 2030. 

"Consistently growing number of high net worth individuals to drive the global yacht charter market"

The market is highly driven by rising inclination towards luxury cruising worldwide. This further complemented by consistently increasing number of high-net-worth individuals globally. In 2020, the number of high-net-worth individuals worldwide increased by nearly 9%, according to 2020 World Health Report by Capgemini. This represents a promising user base for yacht charter companies. With increasing interest in luxury cruising along with consistently increasing number of high net worth, especially in Asia Pacific, the yacht charter market is set to register robust growth over the forecast period. 

"Motor yachts segment to lead the market throughout the forecast period"

Motor yachts segment led the overall yacht charter market in 2020. The segment contributed to over 70% of the total market value generated worldwide. Despite the exotic experience offered by sailing yachts, motor yachts are typically more preferred over the counterparts. This is primarily due to higher speed, power, space and luxury offered by motor yachts as compared to sailing yachts. Motor yachts have larger space for entertainment, bigger cabins and usable deck space. In addition, they are easier to operate as compared to sailing boats. Thus, people with limited sailing experience prefer chartering motor yachts. Other features offered by motor yachts include sophisticated communication & navigation systems, electronic entertainment systems and amenities. 

"Europe dominates the market with more than 50% market share; Asia Pacific to emerge as the next promising market"

Europe led the overall yacht charter market worldwide with market share, in terms of value, of over 50% in 2020. The European market is principally governed by Mediterranean countries including Greece, Croatia, Italy, Spain and France among others in the region. In addition, the U.K., Germany and some of the Nordic countries too form major markets for yacht chartering business. The market growth in Europe is primarily supported by favorable climate and spectacular natural beauty. In addition, the region is home to the 2nd highest number of high net worth individuals worldwide. This has further ensured substantial demand for yacht charter services in the region. 

Asia Pacific is set to register the fastest growth in yacht charter over the forecast period. The market here is majorly governed by steadily increasing discretionary income of the people in the region. Similarly, growing interest of people in luxury cruising is another important factor supporting the market growth. Southeast Asia has witnessed profound growth in yacht charter market since the past few years. Apart from the regional tourists, number of Western tourists too has increased dramatically over the period. One of the most prominent factors driving yacht charter business in Asia Pacific is relatively low cost of cruising as compared to Western destinations. In addition, improving infrastructure plays a prominent role in supporting the regional yacht charter market growth. 

"Geographic expansion and service enhancement to remain the key strategies"

The overall yacht charter market is quite consolidated in nature with major companies such as TUI Marine (including Sunsail, Le boat and Footloose), Dream Yacht Charter and Kiriacoulis among others holding the majority of market share. These companies primarily have their operations in Europe and North America having strong yacht charter sector. In case of Asia Pacific, the region is home to large number of regional yacht charter companies serving limited number of countries, making the market quite fragmented in the region. This is attributed to low popularity of yacht chartering in the current scenario. 

However, with growing popularity of yacht chartering in Asia Pacific, companies are taking efforts to increase their presence in the region. For instance, in February 2018, Fraser Yachts announced the opening of its new offices in Indonesia, Hong Kong, Thailand, Vietnam and the Philippines. The expansion was made taking into consideration the rapid growth observed in yacht chartering sector of the region. Apart from geographic expansion, companies also focus on increasing their vacation packages for multiple destinations. 

Another prominent strategy adopted by yacht charter companies is continual efforts towards improving the yachting experience for their users. With increasing popularity of yacht chartering, users are now more inclined towards luxury cruising that provides numerous facilities and superior experience. As a result, yacht charter companies are investing on improving facilities such as online booking, internet connectivity and improved hospitality onboard.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Yacht Charter market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Yacht Charter market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Yacht Charter market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Yacht Charter market?
• Which is the largest regional market for Yacht Charter market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Yacht Charter market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Yacht Charter market worldwide?