The yachting industry has enjoyed record growth over the past couple of years. While the pandemic restricted travel initially, it created a desire for more exclusive and private holidays amongst the world’s richest. The lockdown also enhanced individuals’ willingness to seize the moment and seek freedom on the sea aboard a luxury yacht with close family and friends.
Not only has this surge in yacht sales and charters been driven by a desire to enjoy more exclusive and private experiences, but it has also been driven by an uptick in global wealth. There were 670 new billionaires in 2020 and more than 295,400 Ultra-High-Net-Worth-Individuals, according to the 2021 Wealth X Report. Additionally, historically low-interest rates have provided cheap capital, further fuelling demand for luxury goods, although this driver is set to change with rising interest rates. With this increased spending power, many of the world’s most coveted luxury brands have witnessed a boost in sales, and the yachting industry, too, has reaped the rewards.
Relevance Yacht’s partnership with YATCO, the Official MLS and Ultimate SaaS Platform of Yachting, provides us with the latest yacht market trends and post pandemc industry insights. Here we explore some of the latest yacht industry trends identified by YATCO.
Yacht market trends: sales
Yacht sales continue to be robust. 2021 saw an astonishing 72 vessels with price increases, breaking historical records and this trend is continuing in 2022.
The most recent YATCO data – from May 2022 – shows that a total of 100 yachts were sold in this month alone, with a combined asking 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.
For comparison, looking at the same month in 2021, there were 39 yachts of 79ft+ sold with a combined asking 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: charter
The yacht charter market continues to experience growth. An increasing number of charter-only firms are joining YATCO to sell yachts on behalf of their clients, and prices are increasing due to demand outstripping supply.
According to BusinessWire, the global yacht charter market is estimated to be worth around US$16.1 billion this year and is expected to reach around $21.65 billion by 2027.
Post pandemic trends
The latest data from YATCO shows that expedition yachts are the most sought-after by yacht owners and charterers. This reflects an increasing trend amongst yachting enthusiasts to travel beyond the world’s most popular blue water havens and explore more remote areas.
There is also a growing influx of new yacht owners and charter clients from the tech, crypto, Non-Fungible-Tokens, and blockchain community. These clients are much younger than the traditional yacht industry audience. They are typically in their mid-20s and early 30s, are new to the world of yachting and seek trusted professionals who can provide expert advice on the entire eco-cycle of yachting, from chartering to owning a luxury vessel.
Yacht brokerages are responding to this new audience by embracing payment in crypto. For example, global yacht brokerage YACHTZOO has recently partnered with BitPay to offer payment for select yachts for sale and charter in cryptocurrency.
This younger audience is also the key driver of the yachting industry becoming greener and more eco-friendly. As such, sustainable yachts, including ones that boast state-of-the-art hybrid propulsion systems, are increasingly popular. This trend for sustainability is reflected across the entire yachting industry, including builders, brokers, and even marinas, all implementing eco-friendly initiatives.
Yacht market trends: a new digital era
Driven by Covid lockdowns, the traditional way of doing business has changed, with the past few years seeing a global rise in the number of companies investing in new websites. The yachting industry has embraced this new digital era, finding new ways of selling and chartering yachts virtually, demonstrating the importance of a robust online presence and digital marketing strategies.
An increasing number of sales are being made online via social media platforms, with inquiries for second-hand and new build yachts on popular platforms such as Instagram, Facebook, and LinkedIn.
YATCO support yachting professionals digitally by providing top software solutions that deliver results.
Relevance Yacht works with some of the leading yacht industry brands helping to support them with effective digital marketing strategies. If you want to learn about our full portfolio of marketing services, then contact the team at Relevance Yacht.