The luxury yachting market seems to raise again. Sales have increased by 13% since 2017, thanks in particular to international customers.
By Hélène
After a major cold snap in 2008, when the sector’s sales fell by 50% in 18 months, the time has come for a recovery in the luxury yacht market. Since 2017, the market changed, with market growth reaching 13% in 2017 with nearly 10,000 boats sold, according to data from the Yachting Industry Federation (FIN).
According to professionals, there are nearly 5,000 yachts over 24 metres in length sailing around the world today, a figure that has doubled in just a decade.
International customers
On this market, the clients are not surprisingly more international than hexagonal. “There is an increasing appetite among a number of rich people who want to buy a yacht. But few of them are French,” notes Eric Mabo (FIN). Whether they come from Europe, the Middle East, Russia or even South America, these customers have one thing in common: their financial resources. Erik Stromberg (Marketing Director, Prestige Yachts) notes, however, that the market is cyclical: “During the 2008 financial crisis, South America and Asia grew stronger while Europe and North America weakened. Today, we are seeing a return of these two customers to a more buoyant market.”
We see the arrival on the market of Brazilian customers but “Brazil is a very protectionist market, which is why some shipyards have gone directly to the market to address these customers“. Targeted by the major luxury manufacturers, Asian buyers are still shy when it comes to yachting. “We had put a lot of money on Asian nationals, especially Chinese, but we do not yet see a big boom, even if there is certainly still potential for development“. Unlike other luxury segments, future yacht owners must have a culture of the sea, which does not exist in some countries. “You have to love to escape, to face the elements,” says Sylvie Ernoult, director of the Cannes Yachting Festival.
Rent rather than buy
According to the Federation of Nautical Industries (FIN), the rental market represents about 1,500 of the 5,600 yachts in circulation worldwide.
If renting your boat does not fully pay for the investment made, “it can allow your owner to amortize up to 60% of the operating costs,” says Bernard Gallay, manager of the used boat brokerage company of the same name. Because the operating and maintenance costs of a boat can quickly increase to several hundred thousand euros.
“On average, a boat is used less than 10 days a year by its owner, which is an economic aberration,” says Édouard Gorioux, co-founder of the Click and Boat community rental platform. Founded in 2013, it offers 22,000 boats for charter in 35 countries, for daily rates ranging from 250 euros for a classic boat to nearly 4,000 euros for a rental with a skipper or crew. “It is a market that is growing by 10% per year in all its segments, whether it is sailing yachts, motor boats or luxury goods,” he summarizes.
Today’s yachts must take into account the requests of luxury customers, who are increasingly demanding, especially in terms of new technologies. “Yachts today have all the navigation and network connection equipment enabling each of its occupants to keep their activity connected while sailing around the world,” says Eric Mabo.
In conclusion, boat sales, all categories combined, are expected to grow by 3 to 5% worldwide in 2017-2018, with an expected 2% growth in the yacht segment. A recovery in sales is also expected in France, where a drop in the number of new registrations of nearly 4% was recorded at the beginning of the season. A buoyant market, which could well evolve this year, driven by international customers.
