Starting premise.
by John Curnow, Global Editor, Powerboat.World 21 Sep 00:00 PDT
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There is no doubt that usage and/or ownership has changed, and is still a-changing, across the entire sailing, powerboat and yachting market. We had a good mention of this in, Have it all. Do it all. So, the Point of Ponder that was the genesis of this here ditty had to be that yes, someone still has to own it, but charter (in all its forms) has played a vital role to date, and will do so even more as things move forward, especially given the opening line.
Reason? Money. Fortune lists the charter market as going from $9.69B in 2026 to a hefty $18.2B by 2034, at a growth rate of over 8%. Vantage Market Research even likes to suggest it will be $32.4B by 2035. Those sorts of numbers are important for builders, and crew trainers/providers, alike. Anyone contemplating a build can also see a way not to just offset the ever-increasing cost structure, but also opt for something grander than they might have previously contemplated.
Powerboats reign supreme in this domain. 24-40m is the sweet spot, and whilst fully-crewed sweep the floor dollar wise, bareboat takes a stand in the operational, or volume stakes. If you're wondering, as I was, the 'milk run' (as the Western Med is affectionately known) still holds sway.
Now it might be more half a lifetime ago, but I can still remember going from a strictly private vessel to a very-much-in-demand charter craft, literally overnight. So I asked some questions of those in the know, and did a little desktop research to make sure we were current, and cracked the code, as it were.
Rules, idioms and other strange things
Back in the Jurassic Era, and then also on to even as close as not that long ago, there was a rule of thumb that someone who chartered a yacht three times would just about always go on to become a buyer and owner. So, is that still the case, or has the charter-to-ownership journey changed?
It could be better to start by saying that all the changes mentioned in the opening stanza do have an impact on it all. Yes, there are charterers who go on to become owners, and then place their own new vessel back into the fleet to help offset costs.
However, there is a newer and ever-growing segment that will never own. Not because they cannot afford it, but because they appreciate flexibility over all else. That flexibility does not just pertain to location, but size and type of vessel to match the group coming on board. A multi-generational gathering is way, way, way different to girls' week, for instance. The adaptability of the cost structure, and the experience delivered is tailored to suit, and this reigns supreme.
Note here, hold onto the premise that someone, or some people, still have to own the boat...
Car Park
You just have to love a good algorithm, and part of the energy to get on and do this came in the form of a pic on Insta from Cala di Volpe that looked way, way, way busier than I ever remember it. Yes, it most certainly is a popular spot, with charterers and private craft flocking there. It would probably be busy even in a supposed 'down year'. A giant would probably see them all as stepping stones on some big pond...
One could get fooled into thinking that this represents the whole market, but they would be a tad myopic. Now, as it turns out, the market is healthy, but you need to see where boats are cruising, what ports are drawing them in, and with an ever-expanding fleet, who's attracting the fees? Covid may well have got everyone to zoom in on boating, but I would hazard a guess as to say merely hanging the shingle out is not going to win you a lot of business. People want more, across a wider range of interests, in more and more locales, but still tap into what superyachts do best. Namely, privacy, seclusion, security, and a genuine sense of what we might call 'specialness'.
The 'swipe' mentality needs to be accounted for as well, with '11th hour' style 'Let's do this!', getting the nod. Thing is, picky becomes the key word. What kind of yacht, which destination, what's on the itinerary, which activities on board and off, and 'What am I getting out of it at the end?', are stronger than ever.
Clearly then, there are more new clients entering the charter market. We said 'swipe' a second ago, and Social Media has played a huge part by highlighting accessibility, for you too can be here making your own Insta posts, but the industry has also stepped up a lot. Much of this is by recognising that competition is not another white boat, but maybe an island, a villa, a private plane, or 'D', the whole lot!
Then as more and more 'farms' get inherited, a younger group with a whole new way of thinking have the desire, and the means. Back when dinosaurs ruled the world I am not even sure the term 'day charter' was thought of, for all I remember is 'minimum stays', but now step on and it is all yours for a few hours, then step off is a thing. A big thing. It also gives people a taste, and just the one post needs to become a hundred, right?
It is also more far and wide, for the Europeans have been very active charterers for ages, but now the Middle East and US are not sideline acts, but fully fledged segments. The openness of it all means people can see how straightforward it can be, and once more often than not becomes the serial charterer, for whilst there is competition, nothing does new view every day and taking the pace out of life as well as a superyacht. Nothing. It is transformative.
Show me the numbers
So we saw earlier that crystal ball gazing can lead to wide-ranging estimates. Rather than some magical macro-view number, it might be better to take on yield. Like how many days are being booked, now and versus previous times, and if discounting is making things less profitable. As we have discovered, more vessels are in the fleet than ever before, so is it more about dilution, division and conquer by virtue of better offering and differentiation, or is the overall market growth enough to absorb any or all of the above?
Naturally, all of the above really is a broker's 11 secret herbs and spices, so you're hardly going to have them lay the books open. However, if you are thinking of placing your boat into the mix, then having yield as your point of origin would serve you well in evaluating with whom you place your trust, and craft.
Habitual or trendy? Agent or Concierge?
Are we creating long-term yacht enthusiasts, or are we seeing more people treating yachting as just one tick-box amongst every other luxury travel experience? Yes indeed. A number of builders I have talked with have spoken off record about 'teaching people to boat', and their gatherings, cooking shows, driving lessons etc, all speak to this.
Still, if the charterer is simply about an annual holiday, it will be less about skill development, and much more about locale and type of boat/experience required, nay, demanded. Someone coming in for a milestone moment and therefore a special, unforgettable experience could be gone straight after, or inquisitive as to what else could occur.
See the thing is, a conversation about the good, the bad, and even the ugly, and what they would want next time is the key, for tailoring is what yachting is all about. When multi-generational trips or key milestones of life get thrown into the mix, not many experiences can do it all like yachting can.
Of course, you do not have to go far to find a broker who says they are far more like a curator of the entire experience now, as opposed to an arranger of time, locale and asset, than ever before. That's a huge gig, even if only for the multiple facets it has to face off. So that's where, what are you going to be able to do, both on and off the vessel, and tapping into what is going to provide the sizzle. It's not travel, it's not boats, and it is not experience. Now would seem to be more about sense. Value, uniqueness, uplifting, and mind opening all come to mind.
Backstreet Boys
I want it that way. (Go get 'em Basil Brush!) It is not just the quality, but also the personalisation of the on board culinary delights that is in demand. People take pics at restaurants, so a yacht is going to be no different. Even the chef can now be a bit of a DJ, and swing a deal for those 'foodies with serious freight'.
If you are not really wanting to go ashore and face the crowds, then it is going to be a major part of your deal. Bigger vessels will also have a chef for the crew, so that primary can get on with looking after the guests. Also, probably a good time to talk about provedores, or knowing where to get it yourself as the chef, for quality is one of those things like flying. You are only as good as your last landing...
Remember, special is a big part of what makes up yachting in the first place.
Screens big and small, one and all! It's all in the swipe (and the people). Yes, there might be movie night at the outdoor cinema on the sundeck, but the crew are more vital than ever. Being able to instruct people how to sail, sing for the guests at lunch, DJ for them at night, or being a Physiotherapist or Masseuse are real skills and the crew can help attract charterers to their craft in particular. Remember, the tip is up for grabs.
Of course, once you are at Gigayacht level with Shadow Boat, there is more than enough room to accommodate all manner of talents ready to go as and when required, so if you can do it, whatever that is, don't be shy. Someone may find that just what they're looking for.
Toy Story 100
We had a three-man wet sub on board the vessel I worked on, and it was yellow, too!!!! Should have seen the crowds it drew when the garage doors went up. Is today all about foil boards, dry subs, and other technological marvels, or does the humble sailing dinghy, kayaks and SUPs still rate?
Well, variety rules. Availability of different toys, just like on board food, can sway charterers. As for an example, if you are multi-generational group, having a water slide and floating sun pad is bound to get a tick...
Size still matters! (So does type...)
Now somebody or some people still need to own every craft. More charterers are great, but if they have no intention of outright ownership, then the void has to be filled somehow. Interest can only continue to grow in fractional ownership, syndicates, investment groups, or other alternative ownership models.
Charter has two strings in its bow. Flexibility and cost offset, and these work no matter whether you are the charterer or the owner, for if you are the owner, you can charter someone else's vessel in another locale, whilst yours is being utilised in its domain, and you have not had to fork up to send your boat to distant lands.
A vessel's size and type works to particular group dynamics and desired outcomes. As we saw in Have it all. Do it all., 30m can do many, many things, and still be small enough to not be banned from some ports, for instance.
40 to 50m and even 60m gives you more crew for more service, more toys carried aboard, and simply stated, more space, everywhere! SO if finding a terrace, or being the only one at one of two or three pools on board counts then this is the deal for you.
At 70 to 90m and beyond, well, it is the unique card the gets put down. You won't replicate anywhere. Hammams come into play, wellness centres, even glass garages, helipad, and additional staff accommodation expand one's choices infinitely, but of course, this can be millions of dollars per week, but you will end up at 2:1 in the crew to guest ratio...
A point to note here is that sailing yachts and large catamarans (which don't heel anywhere near as much) are available for those seeking a more immersive experience, and the quality of those is as good as anything that is on offer on the power side of the equation. Perhaps, as things get greener, more brokers and charterers alike will start asking the question.
Spilled the beans early, so no spoiler alert required.
The traditional Mediterranean 'milk run' is still very much the go-to for charter clients. So that's the South of France, Italy, Croatia and Greece. They are known, close to major population centres with short flight involved, and still spectacular as ever.
Demand will increase for the more exotic, adventurous, and untouched, but if you are buying with intent to offset, you will need to think about where the craft is, and what it is doing. All of that said, Fiji is very much in demand, and there are not that many vessels to choose from in the South Pacific, so it could be worth your while, you just have to get there.
Not sure anyone could have seen the here and now so clearly 10 years ago, but what might the charter market be in five or so years from now? I do think 'specialness' will need to be bolstered and enhanced to meet expectation. Craft will not necessarily be able to meet all of these and lay them into one big experience, so being different enough is likely to work really well.
As more and more material gets out there, charterers are going to be better informed and prepared, and this too will only help to serve everyone better. More questions, better consideration, greater outcomes...
Whilst there will always be the super-high-end, there is every expectation that the more moderate category will continue to provide the greatest chance to get people on the water, and from there, who knows what is possible.
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Finally. Please look after yourselves.
John Curnow
Global Editor, Powerboat.World