LONDON, Sept. 15, 2021 /PRNewswire/ -- Tourism has emerged as the newest form of consumerism with yacht charters catering to a diverse range of clientele. Modern-day yachts include the latest catering and entertainment options, enabling them to rival five-star luxury hotels. Chartering a yacht allows tourists to visit several locations in one trip, eliminating the hassles of traffic or airport queues. A large number of tourists prefer dining outdoors in secluded locations for the combination of privacy and exclusivity, and yacht charters are well-placed to cater to this.
As per Fairfield Market Research, the global yacht charter market is anticipated to register a CAGR of 22.85% for the period from 2021 to 2027. Analysts estimate the global yacht charter market will be worth US$25.53 Bn by the end of 2027.
Yacht Charter Companies Thrive with Social Media Campaigns and Air Travel Restrictions
Luxury tourism has slowly but steadily become commoditized in recent times. Yacht charter providers are expected to build solid advertising campaigns around the service to lure in younger consumers. The rise of social media influencers with a wider audience reach that transcending borders is expected to be an excellent tool for these campaigns.
The global yacht charter market is also likely to be driven by the restrictions on air travel due to the outbreak of the COVID-19 pandemic. As millennials find themselves confined to specific geographies, chartering yachts to travel around national coastlines is expected to fuel market growth. Prima facie, yacht charter is safer than air travel until coronavirus subsides as it has limited seating capacity and fewer touchpoints for end users. Thus, the two-pronged advantage of safety and travel is expected to augur market growth.
Manifold Benefits of Motor Yachts Make Them Race Ahead in Global Yacht Charter Market
The motor yacht segment is poised to dominate the yacht charter market for the forecast period as they can traverse larger distances in a shorter timeframe. The shallow design of a motor yacht permits it to navigate shallow waterbodies easily, making it ideal for coastlines and boosting its popularity amongst end-users. By the end of 2027, the motor yacht segment is expected to exhibit a CAGR of 24.89%.
In addition, motor yachts have a larger deck, providing customers room to relax whilst in the lap of luxury. Luxury motor yachts offer all the modern conveniences and communication options that consumers desire, further propelling adoption rates forward.
Massive Revenue From Charter Yachts Allows Europe to Retain Pole Position in Market
Europe comprises half of the global yacht charter market with a 48% share in 2020 and it will remain in this position for the foreseeable future. European nations such as Turkey and Italy are expected to drive demand and there are several companies providing a combination of flight bookings with yacht charter services. Europe has millions of high-net-worth individuals who get licenses issued in their name for yacht charters.
In 2017, the European Commission published a report on nautical tourism which stated that 60,000 charter boats generate revenue of approx. Euro 6 billion annually in European waters. However, the Asia Pacific region is expected to grow at an exponential rate of 24% due to the booming economic growth resulting in a greater desire for leisure activities such as yachting – especially in Southeast Asia.
Acquisition of Master Yachting Makes Sailogy Leader in the Global Yacht Charter Market
Key companies actively involved in the yacht charter market have assessed different strategies such as joint ventures, collaborations, mergers and acquisitions, and partnerships. A few profiled in this report are CharterWorld LLP, Mertello Fairline Yacht, Thai Charters, Fraser Yacht, Charter Yachts Australia, Boatbound Inc., Nicholson Yachts, Simpson Marine, Northrop & Johnson, Yachtico, Inc., Inter Yacht Charter, Dream Yacht Charter, Incrediblue Ltd., Burgess, and Boat International Media Ltd.
In 2018, Sailogy S.A. acquired Master Yachting and became the number one company in the yacht charter market. Furthermore, its rival Princess Yachts unveiled six new models – the culmination of GBP 100 million investment initiative that had begun in 2015.
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