Valued at 6.5 billion in 2019, the global yacht market size increased to $8.15 billion during 2020. Yacht rental demand is soaring and Grand View Research has forecast that the global yacht charter market size will continue to grow at a compound annual growth rate (CAGR) of 5.2% until 2027.
Increased boating activities, a rise in disposable income, and changes in the preferences of travelers worldwide are the main reasons for the increasing demand for yacht rentals. People prefer luxury tourism, personalized service, and visiting exclusive destinations.
Therefore, manufacturers are focusing on offering the ultimate customer experience through improved performance characteristics and luxury features. Yacht rental companies like Coast Yachts and Yacht Jerico are ensuring they meet their client demands by offering them a fleet of yachts with unique features.
Unique Offerings for Unique Individuals
Many marine bookings in 2020 were moved to 2021 by yacht charter companies, but it’s not only these bookings that are pushing demand. There has been a huge interest in luxury marine tourism that includes personalized service in 2021, mostly sparked by the need for strict hygiene and safety standards.
According to yacht rental companies like Coast Yachts and Yacht Jerico, more and more people are seeing the benefits of taking a vacation at sea on a luxury yacht charter. They like having the option of combined transportation and accommodation in some of the world’s best coastal destinations where they can enjoy crystal-clear waters, remote beaches, and amazing snorkeling sites.
Despite the pandemic, 2020 was the year where there was a 7.6% growth in wealthy individuals globally. According to the report by Capgemini, high net worth individuals in the US grew by 12.3%, almost double that of the rest of the world, surpassing Asia once more after five years. This infusion of wealth is fueling the current growth in yacht rental demand.
Boat Builders and A Soaring Demand
According to the National Marine Manufacturers Association (NMMA), boating is extremely popular in the U.S and is enjoyed by 100 million Americans annually. Skyrocketing demand for outdoor recreation, especially on the water, means that boat builders are struggling to keep up with the rise in demand. Figures show that 95% of boats sold are manufactured in the US. The shortfalls in the availability of new vessels are mostly caused by a shortage in labor and the current disruption of the supply chain.
Meeting Client Needs with Varying Yacht Types and Other Offerings
Yacht sizes can vary, and yacht charter clients usually have a huge variety to choose from. The age, size, and reliability of the yacht can affect the price of the charter. Prices are also affected by the reputation of the crew. Motor yachts are by far the most popular type of boat, but these are a bit more expensive to charter than sailing yachts.
Charter destinations also affect charter prices, with remote areas costing more to sail to than destinations where there is an established yachting industry. It is usually more difficult to find charters in areas with short seasons that are in high demand. Miami is a popular destination, especially with Americans from colder states.
The most popular yacht charter durations are one week, but shorter durations are becoming increasingly popular. Innovative yacht rental companies are also offering exciting opportunities for people to spend a day, or less, out at sea. Besides rooms, shower areas, and dining areas, most yachts offer plenty of recreational opportunities like water toys, submersible swim platforms, etc.
Making Waves in the Yacht Rental Industry
The soaring demand for yachts does not mean that the yacht rental industry is not an extremely competitive market. Offering diverse and unusual amenities allows companies to remain competitive, especially in areas where there are many yacht charter businesses.
Yacht Jerico is one charter company located in Miami that is making waves. They have become the celebrities’ choice of yachts by differentiating themselves from the competition and offering an outdoor nightclub on the water. Their yachts are decked with various services, including an overhead beam spotlight.
The rental yachts at Yacht Jerico are almost exclusively Pershing yachts, chosen for their superb craftsmanship and engineering. Powered by Rolls Royce, these highly desirable Pininfarina-designed yachts are the ideal boats to reserve for a night of fun at sea!