July 12, 2024
Yacht Charter Market

Yacht Charter Market Is Expected To Driven By Rising Tourism Industry

The yacht charter market involves the rental of private sail or motor yachts. Yachts provide luxury accommodation and recreational activities on the water and are extensively used for private leisure charters, corporate events, team-building activities, and bachelor/bachelorette parties. Popular yacht charter activities include snorkeling, scuba diving, water skiing, and island hopping. Yachts offer a premium experience of boating with amenities like sprawling decks, multiple cabins, lavish interiors, outdoor bars, Jacuzzis, and lounge areas. The rising popularity of experience-focused luxury tourism and water sports has boosted the demand for yacht charters.

The global Yacht Charter Market Is estimated to be valued at US$ 59730.75 Mn in 2023 and is expected to exhibit a CAGR of 7.0%  over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends

The yacht charter market is driven by rising tourism activities worldwide. According to the United Nations World Tourism Organization, international tourism grew by 4% in 2019 reaching 1.5 billion international tourist arrivals globally. This is prompting aggressive marketing campaigns by yacht rental companies targeting high-net-worth individuals and experiential travelers. Customized yacht packages optimized for social media are gaining popularity. Technological advancements in yacht design are also supporting market growth. Intelligent propulsion and automation systems are enhancing fuel efficiency, comfort, and safety of yachts. Hybrid engines and advanced stabilization systems are being increasingly adopted.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the yacht charter market requires significant capital investment and operating costs. However, demand for luxury experiences is growing steadily.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of various charter options. However, customized experiences add value.

Bargaining power of suppliers: A few major players dominate the supply of luxury yachts globally. This gives them significant bargaining power over buyers.

Threat of new substitutes: Other luxury experiences such as private jets and luxury cruises pose threat of substitution. However, yacht charters offer unique customized experiences.

Competitive rivalry: The market is growing steadily attracting new players. Competition is high among existing players to tap opportunities through service differentiation.

Key Takeaways

The global Yacht Charter Market Demand is expected to witness high growth. The global yacht charter market is estimated to be valued at US$ 59730.75 Mn in 2023 and is expected to exhibit a CAGR of 7.0%  over the forecast period 2023 to 2030.

Europe dominates the market currently due to a large number of charter companies and the availability of various options. However, demand is growing steadily in Asia Pacific and Middle East & Africa regions. The Asia Pacific region is expected to be the fastest-growing market during the forecast period due to rising high-net-worth individuals and increasing tourism activites in countries like Indonesia, Malaysia and Thailand.

Key players: Key players operating in the yacht charter market are BASF Corporation, DSM, Cellana Inc., JC Biotech Pvt.Ltd, FEMICO, Croda International Plc, Pharma Marine AS, Clover Corporation, Omega Protein Corporation, Kingdomway Nutrition, Inc., ECPlaza Network Inc., Bizen Chemical Co.LTD, Stepan Company, Novotech Nutraceuticals, Inc., Arjuna Natural, Jiangsu Auqi Marine Biotechnology Co., Ltd., and Aker BioMarine.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it