The demand for luxurious and unique experiences is driving the rapid growth of the yacht charter business. A boat or ship is rented for a set length of time as part of a yacht charter, typically for leisure or vacation. The market for yacht charter is divided into two main categories: crewed charter and bareboat charter. While a crewed charter is given by the charter business, a bareboat charter is where the renter is in charge of running and maintaining the yacht.
The size of the world yacht charter industry, estimated at USD 11.31 billion in 2020, is anticipated to rise at a compound annual growth rate (CAGR) of 6.7% from 2021 to 2028. The middle-class population's increased interest in water-based activities and rising disposable income are two aspects that are driving the sector. Additionally, the growing popularity of experiencing travel and the desire to visit new places are contributing to the market's expansion.
In terms of market share, the bareboat charter sector dominated the yacht charter industry in 2020. This is because bareboat charter gives renters more freedom and independence than crewed charter, which necessitates that they depend entirely on the crew for all activities. The expanding trend of luxury travel and the demand for a unique and customized experience, on the other hand, are likely to propel the crewed charter segment to significant growth throughout the projection period.
With a market share of more than 35% in 2020, Europe dominated the yacht charter industry geographically. This is explained by the existence of a sizable number of charter businesses and the availability of well-liked charter locations like the Mediterranean and the Caribbean. However, the Asia Pacific region is anticipated to experience considerable development over the projection period, driven by the region's growing middle class and the popularity of water-based activities.
The Moorings, SunSail, Dream Yacht Charter, Navigare Yachting, Pitter Yachting, and other well-known companies are major players in the yacht charter industry. These businesses are spending money on marketing initiatives to broaden the reach of their brands and clientele.
The COVID-19 pandemic, which resulted in a decline in demand as travel restrictions and lockdowns were enacted globally, presented issues for the sector in 2020, nevertheless. However, the market is anticipated to rebound and return to pre-pandemic levels in the near future thanks to ongoing vaccination efforts and the gradual easing of restrictions.
In conclusion, rising interest in water-based activities among the middle-class population and rising desire for luxurious and unique experiences will both propel the growth of the worldwide yacht charter market throughout the forecast period. Although crewed charter is predicted to increase significantly, the bareboat charter category now has the biggest market share. The market is dominated by Europe, but in the next years, the Asia Pacific area is anticipated to rise significantly. The COVID-19 pandemic presented difficulties for the sector in 2020, but it is anticipated that it will soon recover and return to pre-pandemic levels.