The yachting industry has experienced growth as a luxury market. This is due to pandemic lockdowns and social distancing that made it desirable for boat and yacht owners to spend their time away from society on the water.
A New Wave of Yachting Enthusiasts
According to the 2021 Wealth X report, the increase in global wealth created 670 new billionaires in 2020 and more than 295,400 Ultra-High-Net-Worth-Individuals in 2021. Combined with historically low-interest rates, this available capital drives demands for luxury goods. This has positively impacted the yacht charter market size and other recreational activities across regional markets.
Yacht Market Trends in Post Pandemic: Yachts for Sale
The most recent YATCO BOSS data shows that a total of 100 large yachts were sold in May 2022, with a total yacht for sale price of more than US$179 million. There were also 350 new brokerage yachts for sale, and 49 listings are currently under contract – a 23% increase compared to April 2022.
In comparison, YATCO‘s market research reports in May 2021 that 39 yachts of 79ft+ sold with a total yacht for sale price of more than $400 million, 102 new listings and 68 listings under contract.
“All the Relevance yacht brokerage clients have seen incredible growth in yacht sales, yacht charters, and new build contracts since 2020,” Rumble Romagnoli, President at Relevance said. “Is the world getting richer? Are people wanting to enjoy their money more? Is the marketing of high value goods more effective through digital channels? I think we have a situation where all these factors are playing their part.”
Yacht Market Trends in Post Pandemic: Yacht Charter Market Growth
The yacht for charter industry experienced significant market growth. An increasing number of yacht for charter-only companies become YATCO members. Prices in the yacht charter market are rising due to increased demand for yachts.
According to BusinessWire, the global yacht charter market growth is expected to go from around US$16.1 billion in 2022 to around $21.65 billion by 2027.
Post Pandemic Yachting Trends
#1 Expedition Yachts
What we see at YATCO is that expedition yachts are some of the most sought-after by yacht owners and charterers.
Yachting enthusiasts want to travel beyond the world’s most popular blue water havens and explore more remote areas.
Charter yachts with exploration capabilities have become major industry players as these vessels cater to clients who are interested in a range of recreational activities, including scuba diving and remote traveling. Charter companies are also creating itineraries that allow for clients to visit off-the-beaten-track destinations.
#2 Younger Luxury Yacht Owners
Younger potential yacht owners and yacht charter clients are typically between the ages of mid-20s and early 30s. These people have made their money from the tech, crypto, Non-Fungible-Tokens, and blockchain community and are the new target market of the yachting industry.
These younger yacht clients are interested in green yachts, eco-yachts, or planning experiential yacht charters.
This new pool of individuals has dramatically increased the yacht charter market size.
Yacht brokerages are responding to this new audience by embracing payment in crypto. YATCO has several brokers and brokerage members who are now submitting new yachts for sale also in cryptocurrency. Charter companies may also become more interested in taking this form of payment in the near future.
#4 Green, Eco-Friendly Yachting
Technology and a younger yachting target market drive green and eco-friendly yachting trends. Within this forecast period, there has been much more interest in hybrid yachts, crews with eco-friendly practices and vessels that are better for the environment.
Market research suggests that if a yacht promotes its eco-conscious credentials, it will become a major player in the yacht industry.
However, this may vary within specific regional markets.
Yacht Market Trends: A New Digital Era
In the Post Pandemic world, the trend is that people aren’t going back to the old ways of shopping or doing business. We are used now to online meetings, virtual tours, etc. and market research suggests that this is not different in the yachting industry.
From virtual boat tours, watching boat review videos, or visiting a broker’s online show room, we as a society prefer the safe touch online.
This provides the opportunity to yachting professionals to evolve their way of doing business to accommodate the new way people live their lives and seek to purchase luxury goods.
Understanding the recreational activities, priorities and regional markets of the yacht world is vital to the future of the industry. In the forecast period of 2021 and 2022, the main industry players (such as Northrop & Johnson, Y.CO and more) realize the potential of explorer yacht charters and why to engage with younger UHNWIs to secure future business. The digital world has grown to be a major player in every sector, and the yacht world is no different. The evolution of the yacht sale and charter market will continue as more millennials understand the pleasure of life on board.
This article was created in collaboration with Relevance Yacht, a strategic and creative digital marketing agency specializing in the yachting industry and supporting the world’s most established yachting companies, providing digital marketing campaigns that deliver results.