Future Market Insights (FMI) has announced that the yacht charter market has made a steady recovery since the financial crisis in a recent report.
The Future Market Insights ‘Yacht Charter Market: Global Industry Analysis and Opportunity Assessment 2015 – 2020’ report estimates the growth of the yacht charter market to amplify at a compound annual growth rate (CAGR) of 6.5% through 2020.
In a recent press release, FMI suggests that recovery in the global economy has augured well for the prospects of the yacht charter market, with an increase in the number of High Net Worth Individuals (HNWIs) and renewed interest in leisure activities suggested to be the impetus for the market globally.
It has also attributed promotional activities by yacht manufacturers for creating greater awareness among the target audience, and celebrity endorsements in garnering increased media attention.
There are a few caveats for the growth of the market, however, as the charter industry is facing stiff competition from the unregistered yacht sector with yacht owners without the requisite licenses and permissions expected to further restrain market growth during the forecasted period of 2015 – 2020.
The report suggests that yacht charter companies are leveraging the reach and appeal of digital marketing, especially using social media platforms to connect with their target audience.
Virtual tours and videos are often used to showcase the charter services and vessels that each business operates, with FMI’s analysis revealing that reviews and testimonials are a key factor for consumers while choosing a charter company.
Eastern Europe (including Russian and Turkey), Rest of Europe (North, South and West), and North America are reportedly the most lucrative regions for yacht charter, with these regional collectively accounting for nearly 75% of market share in 2014.
FMI projects that the charter market in the Rest of Europe will witness a CAGR of 6.3% through 2020, driven by high consumer demand for charters in Greece, which is home to some of the world’s most scenic charter destinations, such as Ionian Island, Aegean Islands, Cyclades, Dodecanese, Corfu and Athens.
With Turkey the most popular charter destination in Eastern Europe, FMI also predicts a CAGR of 7.2% through 2020 in this sector, with it having an estimated worth of US$13.6 Bn by 2020.
The report segments the global charter market into motor yachts and sailing yachts, and within this, large yachts (over 50m), medium (30-50m) and small (up to 30m). Among these segments, sailing yachts dominated the market in 2014, with a share of nearly 79% of bookings. The CAGR is expected to further increase through 2020 by 6.5% for sailing yachts and 6.7% for motor yachts. Demand for medium yachts of 30 to 50m was highest, accounting for over half of the market share in 2014.
For more information or to access the full report, visit Future Market Insights.