The yacht charter market was valued at USD 16.9 billion in 2021, and it is projected to reach USD 26.5 billion by 2027, registering a CAGR of 5.79% during the Forecasts period.
The market was negatively impacted by the COVID-19 pandemic in 2020. Worldwide, the yacht charter industry was brought to a standstill by the pandemic. The impact was clear on the industry, as several companies confronted instabilities with their supply chain. Furthermore, the lack of skilled labor impacted the market growth. The key players are doing their best to counter the situation. However, once the pandemic situation recovers, the charter market is anticipated to bounce back.
Over the medium term, the factors such as the increasing demand for competitive and recreational boating activities, the purchasing power of people, and rising disposable income are anticipated to drive the yacht charter market during the Forecasts period. However, factors like high costs of yacht taxation policies and rentals in certain regions are impeding the market growth. Seeing the potential of the market, numerous associated businesses, like yacht management, that support the construction of new yachts are also entering the market. Yacht charter companies are currently concentrating on vertical integration with major yacht manufacturers to intensify their revenue.
Numerous yacht charter companies are adding new yachts to remain ahead of their competitors, as several charter companies have contracts with yacht manufacturers to ensure that the new yachts are provided to them for chartering. For instance,
Europe is preferred as one of the top destinations for marine culture. Northern Europe has a very rich culture of yacht charters. Countries, like Germany, Sweden, England, Denmark, Scotland, Ireland, Norway, and Russia, have the existence of a variety of options to select from motor yachts, luxury yachts, and crewed yachts. Several superyachts are also available for charter along with expedition/explorer yachts. The summer season is the finest time to charter a yacht in Europe.
Correspondingly, most clients in North America selected to visit chartered destinations to avail large discounts. In the United States, consumers are oriented toward comfort over performance. The 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 the other in the Gulf of Mexico, and it holds around 30,000 lakes.
Several countries are reforming their tax regulation and rules, which is concerning the yacht charter market. For instance, in January 2020, the French Tax Authorities released an official tax bulletin with some new rules, which will affect charter contracts signed after March 30, 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. If any boat is in EU waters, it is fully subjected to VAT.
As developments in the current situation are constant and fluid, one would expect that certain measures are put in place, comprising governmental and legislations directives, which would give some assurance to the industry.
The yacht charter market is moderately fragmented, with many active players. The market is witnessing the emergence of many new start-ups. Some of the major players in the market are Burgess, Northrop & Johnson, and Dream Yacht Charter. The companies are expanding their presence by increasing their fleet size and partnering with small players. Key players are expanding their presence by tapping into new and unexplored markets.
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The market was negatively impacted by the COVID-19 pandemic in 2020. Worldwide, the yacht charter industry was brought to a standstill by the pandemic. The impact was clear on the industry, as several companies confronted instabilities with their supply chain. Furthermore, the lack of skilled labor impacted the market growth. The key players are doing their best to counter the situation. However, once the pandemic situation recovers, the charter market is anticipated to bounce back.
Over the medium term, the factors such as the increasing demand for competitive and recreational boating activities, the purchasing power of people, and rising disposable income are anticipated to drive the yacht charter market during the Forecasts period. However, factors like high costs of yacht taxation policies and rentals in certain regions are impeding the market growth. Seeing the potential of the market, numerous associated businesses, like yacht management, that support the construction of new yachts are also entering the market. Yacht charter companies are currently concentrating on vertical integration with major yacht manufacturers to intensify their revenue.
Key Market Trends
Augmentation in Fleet Size by Key Players is Propelling the Market Growth
Numerous yacht charter companies are adding new yachts to remain ahead of their competitors, as several charter companies have contracts with yacht manufacturers to ensure that the new yachts are provided to them for chartering. For instance,
- In February 2022, Imperial Yacht announced that with the collaboration of Amels and Damen Yachting, the launch of Project AMELS 242-07 is scheduled to be delivered this summer.
- In March 2021, Imperial Yacht announced the signing of a new 100-meter project, Project Titanium, in collaboration with The Italian Sea Group, the parent company of Admiral Yachts. Project Titanium, which is scheduled to be delivered in 2025.
- In May 2021, Northrop & Johnson announced closing deals, including the 120-foot (37m) Benetti motor yacht TANUSHA, two Pershing yachts LOUNOR, and AMJU, the 130-foot (39.7m) classic superyacht ARIONAS from Lürssen.
Europe and North America are Anticipated to Lead the Market
Europe is preferred as one of the top destinations for marine culture. Northern Europe has a very rich culture of yacht charters. Countries, like Germany, Sweden, England, Denmark, Scotland, Ireland, Norway, and Russia, have the existence of a variety of options to select from motor yachts, luxury yachts, and crewed yachts. Several superyachts are also available for charter along with expedition/explorer yachts. The summer season is the finest time to charter a yacht in Europe.
Correspondingly, most clients in North America selected to visit chartered destinations to avail large discounts. In the United States, consumers are oriented toward comfort over performance. The 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 the other in the Gulf of Mexico, and it holds around 30,000 lakes.
Several countries are reforming their tax regulation and rules, which is concerning the yacht charter market. For instance, in January 2020, the French Tax Authorities released an official tax bulletin with some new rules, which will affect charter contracts signed after March 30, 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. If any boat is in EU waters, it is fully subjected to VAT.
As developments in the current situation are constant and fluid, one would expect that certain measures are put in place, comprising governmental and legislations directives, which would give some assurance to the industry.
Competitive Landscape
The yacht charter market is moderately fragmented, with many active players. The market is witnessing the emergence of many new start-ups. Some of the major players in the market are Burgess, Northrop & Johnson, and Dream Yacht Charter. The companies are expanding their presence by increasing their fleet size and partnering with small players. Key players are expanding their presence by tapping into new and unexplored markets.
- In February 2022, Northrop & Johnson made a partnership with NetJets. This partnership will provide customers with luxurious, comfortable, and memorable travel experiences.
- In May 2021, Ocean Independence announced the addition of SOULMATE to the Ocean Independence charter fleet. SOULMATE is an award-winning 34m Dreamline superyacht that combines an elegant Italian interior with comfort and safety.
- In May 2020, Ocean Independence announced that it added 44m Burger motor yacht PURE BLISS to its charter fleet. This seven-stateroom superyacht can accommodate 12 guests, with exceptional features, such as elevator access up to three decks and a great range of water sports toys.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Dream Yacht Charter
- Yachtico
- Asta Yachting
- OceanBLUE Yachts Ltd
- Simpson Marine
- Ocean Independence
- Imperial Yachts
- Northrop and Johnson
- Y.CO
- Burgess
Methodology
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