Yacht Charter Market Benefits from Increased Convergence of Web-based Yacht Charter Applications in Yacht Chartering Business

Yacht chartering - the act of renting yachts for corporate or recreational purposes - has emerged as a highly lucrative business in the past few years. Owing to the fact that the maintenance of yachts incurs vast expenses and yachts are used only occasionally by their owners, the provision of yacht chartering gives yacht owners a convenient and sure-shot way of recovering the equally vast maintenance costs of yachts. In the past few years, factors such as the rising population of affluent people across the globe, the rising popularity of yacht vacations amongst young people, and the ease of booking yachts owing to the vast development of the online booking platforms have collectively propelled the global yacht charter market.

A recent report by Transparency Market Research estimates that the global yacht charter market will register a 7.2% CAGR over the period between 2017 and 2025. If the estimate holds true, the market could rise from a valuation of US$8.123 bn in 2016 to US$14.987 bn by 2025. In terms of volume, the market is slated to rise to 7,684 units by the end of 2025.

In this article, TMR analysts highlight some of the key trends being observed in the global yacht charter market:

What are the key growth opportunities in the market?

The ease of booking of yacht chartering services can be attributed to the vast developments in the area of web-based yacht chartering applications in the past few years. These developments have made it easy for yacht chartering businesses to be more visible and accessible to the consumer. Owing to these applications, customers can now easily search for yacht chartering services on the web, look up for suitable options, and make the required bookings within minutes. This factor is expected to develop significant growth avenues for the global yacht charter market over the next few years. Some of the key trends observed in the market in the past few years include the rising inclination towards booking large yachts that can accommodate big groups; booking yachts with the help of web-portals; and rising partnerships among yacht charter mediators with travel (air or land) booking service providers.

The market could also benefit from the vast rise in popularity of promotional events among sellers, buyers, and boat lovers, and a significant rise in boat shows across the globe. This could provide a promising growth opportunity for yacht charter companies as well as yacht manufacturers to market their products and services to the potential consumers directly. The increased demand for luxurious yachts with lavish interiors is also a promising growth opportunity for companies operating in the yacht charter market.

How are growth opportunities distributed from a geographical standpoint?

From a geographical standpoint, the global yacht charter market earns a significant share in its revenue from countries in the Mediterranean and Caribbean regions. In 2016, the market in Europe dominated, accounting for a significant share in global revenue. However, the market is expected to expand at the most promising pace in the Asia Pacific regional market over the next few years. Demand for yacht charter services in Asia Pacific will be driven by the affluent middle class population, to which exotic vacations and parties have become affordable on account of the high disposable incomes. The market will also witness significant growth in Europe as the demand for leisure activities has again increased owing to the post-recession stability in the region’s economy.


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