Yacht Charter Market Growth

Unlike hotels or airlines, yacht charter market is still developing and is less competitive

The global yacht charter market size reached US$ 7.9 Billion in 2022. Looking forward,it expects the market to reach US$ 12.9 Billion by 2028, exhibiting a growth rate (CAGR) of 8% during 2023-2028.

Yacht charter refers to the process of renting a motor- or sail-driven marine vessel for recreational or commercial purposes. These services are typically used for traveling to various coastal areas without owning a yacht. These privately or company-owned yachts that are offered on a rental basis consist of luxury facilities within the vessel, such as professional crews, captains, and online or on-call support. Several charter companies also furnish yachts and provide a detailed itinerary based on the requirements of their clients. As a result, they find immense applications in luxury marine tourism and recreational boating.

The market was negatively impacted by the COVID-19 pandemic in 2020. Worldwide, the yacht charter industry was brought to a standstill by the pandemic. The impact was clear on the industry, as several companies confronted instabilities with their supply chain. Furthermore, the lack of skilled labor impacted the market growth. The key players are doing their best to counter the situation. Additionally, rising global participation in competitive and recreational boating activities and growing corporate tourism activities are expected to significantly support the demand of the target market.

Over the medium term, factors such as the increasing demand for competitive and recreational boating activities, the purchasing power of people, and rising disposable income are anticipated to drive the yacht charter market during the forecast period. Seeing the potential of the market, numerous associated businesses, like yacht management, that support the construction of new yachts are also entering the market. Yacht charter companies are currently concentrating on vertical integration with major yacht manufacturers to intensify their revenue.

However, factors like high costs of yacht taxation policies and rentals in certain regions are impeding the market growth.

Asia Pacific is expected to be the fastest-growing region. Rising recreational activity popularity, as evidenced by increased participation in marine recreational activities in countries such as Australia, Indonesia, Thailand, and Singapore, is expected to support regional growth.

Yacht Charter Market Trends:

The market is primarily driven by significant growth in the marine tourism sector. Along with this, the rising preference for personalized services in tourism activities is providing an impetus to the market. In line with this, the increasing participation of the masses in recreational and competitive boating activities across the globe is providing a thrust to the demand for yacht charters. Moreover, the inflating per capita income levels and the growing inclination toward luxury trips across exotic locations are favorably impacting the market. Besides this, numerous key players are offering online services for yacht chartering to their customers, which are gaining widespread prominence among individuals. Besides this, continual improvements in yacht infrastructure, including the adoption of hybrid business models, are further creating a positive outlook for the market on the global level. Some of the other factors that are contributing to the market include the escalating popularity of fishing and water sports and the increasing usage of renewable energy as the primary fuel in various marine vehicles, including yachts, due to an enhanced focus on sustainable development among the masses.

Yacht Charter Industry Segmentation

 

Yacht charters are typically used for leisure, business, and vacation activities. A yacht charter offers a convenient and easy way to enjoy a long holiday with friends and family without owning a yacht. Yacht charter firms provide the yacht and deliver the best itinerary as per the requirements of the clients, with crew and captain and online or on-call support till total charter duration.

The yacht charter market is segmented by charter type, yacht type, and geography. By charter type, the market is segmented into the bareboat, cabin, and crewed. By yacht type, the market is segmented into sailing yacht, motorboat yacht, and other yacht types.

Challenges in Yacht Charter Market

• Main industry problem is the strong fragmentation of different aspects of yacht charter industry  –  there  is  no  place  on  the  market  that  can  connect  suppliers,  agents  and customers in one place. This leads to another problem – the clunkiness of the usual process of online yacht charter bookings.
• A yacht is needed to be registered under a country of choice, and subsequently, must comply with the maritime law of that country, called flag state. The flag state limits and defines  the  arrival  of  yachts  registered  with  other  countries.  Global  registration  is required to sail and charter the yacht, worldwide, which demands higher registration charges and taxations.
• Limitations of cross border operations and requirement of skipper license are some more challenges to the yacht charter market.
• Chartering  of  a  yacht  is  subject  to  weather  and  season.  Europe  and  North  America witness low demand during the winter months, while Asia Pacific witnesses low demand 

Our Business Model – Vafion Booking Engine

Our monetization scheme is a commission from every online booking that goes through Vafion booking engine. We charge our suppliers 10% of the booking amount only for online transactions that were passed directly through our payment gateway. We charge 5% of the booking amount from bookers as charges for maintaining the platform (Like Airbnb) .

•  Marketing strategy is mainly focused on digital presence and reach. 
•  SEO, SEM and SMM build strong word of mouth foundation, that acts as the strong marketing tool. 
•  Apart from paid advertisement, it is also very important for us to build trust with public and press through Public 
• Relations techniques. 
•  We build a plan of future partnership with several travel companies that will increase exposure, enhance brand presence and the brand itself.

Solution – Convenience Through Simplicity

By creating a modern booking platform AquaLux, Vafion is aiming at bridging the gap between end users, charter agents and yacht charter suppliers. By providing them with a one stop destination, we unify all available possibilities of the current yacht charter market, and conveniently deliver them to appropriate parties.

• Fresh and modern design 
• Simple booking process 
• Highly secured payment system 
• Flexible booking options 
• Simple and intuitive filters
• Enhanced and simple filtering system
• Dedicated landing pages for individual countries with related content and special offers to increase local presence
• Flexible booking options (hourly, daily, weekly)
• One-stop-shop for all parties on the market.

Sample Login page 

Vafion Yacht Charter – Mobile UI (Sample)

Book your on-the-water adventure today:

– Begin your search Anywhere in the World

– Choose from half-day, full-day or multi-day trips

– Connect with Boat Owners in the area

– Send rental requests in seconds

– Drive the boat or Select a USCG Licensed Captain

 

The Vafion Difference:

– Book a Trip for tomorrow or plan for your next getaway

– Save your favourite boats and Invite Friends to help you plan your trip

– Split Payment with your friends and family

– Receive Help from our expert customer service team

– Stay safe with World-Class Insurance

To Know more about Vafion Booking Engine and our services use the following link : https://www.vafion.com/contact.php

 

For more details contact info@vafion.com

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