The yachting industry is on track for a post-pandemic boom as restrictions continue to be lifted around the world. Some companies have seen a 45% increase in sales at the beginning of the year when compared to 2020 sales. Yachts are seen as a safe place for vacation in the post-pandemic world. Continue reading below for more information on how the yachting industry is booming.
A recent update from one of the world’s largest yachting firms points to a rosy recovery for the industry in the wake of the COVID-19 pandemic. In a press release earlier this month, one yachting company sold more than $450 million worth of yachts in 2020, and was the only brokerage house to list more than 100 yachts in its charter fleet—noted that industry reports from Q1 indicate that the global yacht market is the strongest it’s been in four years. The brokerage market climbed 45% in the first three months of 2021 compared to the same period the previous year, with brokerage sales in March alone rising 152%, buoyed by a wave of first-time buyers.
“With the pandemic, yachts are the safest bubble for vacation and travel,” said Mark Elliott, sales and charter consultant, in the release. “Whether chartering or owning, people realized they can control their environment with the yacht and crew while traveling in total comfort.”
The U.S. accounted for 47% of the total number of yachts sold in Q1, followed by Europe with 41% of total sales. Popular stateside cruising grounds, such as New England and California’s coastline, saw upticks in sales and charter activity, likely due in part to pandemic lockdowns across most of Europe since March 2020. According to an April 2021 report from Grand View Research, the global yacht market—valued at $8.15 billion in 2020—is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2021 to 2028. Meanwhile, the global yacht charter market is projected to grow from $6.83 billion in 2020 to $10.82 billion in 2027—a CAGR of 6.6%—fueled by the ongoing rise in high-net-worth individuals (HNWI) and an increasing number of intermediaries likely to boost demand worldwide.