The global yacht charter market is projected to grow to approximately $27 million by 2027. Vessels available for charter are primarily used for recreational purposes and include motor and sail driven yachts. The luxury market accounts for a significant proportion of charters featuring luxuriously appointed vessels with a professional crew that can range from 75 to 250 metres in length. The focus in this market is on a seamless luxury experience with an emphasis on high standards and comfort.
The yacht charter market has been significantly impacted by the advent of the COVID-19 pandemic across the globe as yacht manufacturers have shut down due to lockdown restrictions. Manufacturers have also faced difficulty finding skilled labor which has affected market growth. The yacht charter market in Africa is a rare positive in this environment and is expected to register significant growth in the near future with the rising adoption of yacht charters.
Yacht charter market trends include an increase in visits to private islands on cruise itineraries, an emphasis on the use of alternative sources of energy, improved purchasing power among developing countries and an overall increase in the number of high net worth individuals that can afford to charter luxury yachts. The trend towards once in a lifetime trips and demand for unique leisure experiences is also driven by increasing incomes and people seeking respite from increasingly hectic lifestyles. The ease of making a booking for a luxury yacht has also seen an increase in the number of young people who see this as a desirable way to celebrate special events and is seen to be a future driver of growth in the market.
Potential negatives for growth in the luxury yacht chartering market are the possibility of natural calamities (such as hurricanes) and the high cost of yacht charters. However increased involvement of intermediaries and hybrid business models as well as rapid changes in yachting tourism and infrastructure are expected to boost overall demand in the medium term. The rise in popularity of yachting and an increased awareness of the possibilities of luxurious trips on large vessels that can accommodate larger groups of people will also drive future market growth.
The ways that customers can view the insides of yachts through digital technologies such as tablets and phones is also a growing trend in attracting customers. Some providers are creating a new category of cruise by offering small-ship vacations on luxury vessels. This has the potential to boost the Yacht charter market trends growth in near future.