In the inaugural YachtCharterReport, we take stock of the yacht charter market, bringing together industry research and broker feedback as well as the recently released Camper & Nicholsons report, The State of Wealth, Luxury and Yachting 2016.
On the cusp of the summer charter season, the YachtCharterReport rounds up the previous 12 months of charter activity and predicts what is in store for the year ahead. Topics covered include booking trends, charter statistics, cruising grounds and nationalities of charterers.
CHARTER STATISTICS
In The State of Wealth, Luxury and Yachting 2016, Camper & Nicholsons compare the 2015 charter market with the boom years of 2007 and 2008. Their findings reveal that the number of charters – as well as the value of charters – booked in 2015 was up on 2014 by more than 20%. This adds to the year-on-year growth of charter bookings as they make a steady return to pre-recession figures.
Looking at tables taken from The State of Wealth (below), it can be seen that charter revenue in 2015 did not rise as highly as charter numbers and value. Camper & Nicholsons put this down to exchange rates, with the strengthening US Dollar making Euro priced yachts worth less in 2015 than in 2007 and 2008.
The past 10 years has seen the average value of a charter range from $115,500 to $190,000 per week. Commenting on these figures, The State of Wealth said: “The highest number indicates the industry’s most successful year of 2008 when, despite charter numbers being slightly lower than previously, revenue was up.”
Charter rates in 2015 remained static and continue to do so for 2016, although there has been a significant decrease in the number of discounted rates in 2016, according to Camper & Nicholsons charter broker Barbara Dawson.
SUMMER 2015
Based on our findings, in summer 2015 the Mediterranean saw a shortage of quality charter yachts measuring over 60 metres in length, particularly in the peak month of August.
This is backed up by Camper & Nicholsons, who reported that almost all charter yachts in the West Mediterranean over 40 metres were booked up during the popular summer months of July and August, with clients waiting for a last minute charter often missing out.
What’s more, as illustrated in the ‘Charters by Cruising Ground’ line graph (below) from the State of Wealth, the West Mediterranean saw a decline in charters in 2015 whereas charter numbers in the East Mediterranean were slightly up.
The drop in charters to the West Mediterranean is due to more exotic locations such as Antarctica becoming accessible while “the East Mediterranean has fluctuated more with its stunning scenery versus political situation, each vying for control,” according to Campers & Nicholsons.
WINTER 2015/16
Looking back to the 2015/16 winter season, our findings reveal yacht charter business in the Caribbean was flat and, accordingly, brokers have confirmed less yachts will now be available in the region for the winter 2016/17 season.
As the ‘Charters by Cruising Ground’ graph from The State of Wealth (above) shows, the number of charters in the Caribbean and the Bahamas has remained stable. Camper and Nicholsons said this is because “both areas favour a means to escape northern hemisphere winters.”
GREECE AND TURKEY 2016
There has been a lot of speculation on how the current political situation in Turkey will affect its superyacht charter industry as well as Turkish tourism in general. In response to this situation, our research reveals that many yachts usually based in Turkey will be heading to Croatia and Montenegro for summer 2016.
Greece is likewise a country under much scrutiny due to its recent economic woes and the ongoing refugee crisis. However, as our article on how Greece expects an exceptional summer charter season unveils, things are in fact looking up for the country.
The World Tourism Industry has predicted a positive year for Greek tourism, the volume of airline passengers at Athens International Airport recorded a record high for the first quarter of 2016 and, more specifically for the superyacht industry, Greece remains a safe harbour with the EU-Turkey migration deal now in action.
2016 AND BEYOND
The shortage of superyachts in the Mediterranean during the 2015 season is already having an impact on bookings for the upcoming 2016 season. In the State of Wealth, charter broker Barbara Dawson said: “Towards the end of 2015 we were already receiving a high level of enquiries for the 2016 Mediterranean and a number of advanced bookings.”
To avoid disappointment, charterers are already booking up and we suggest you follow suit.
Likewise, brokers have confirmed bookings in the Caribbean over Christmas and New Year are already being made and, with the news that less yachts will be available in the region for the upcoming season, it is recommended that guests hoping to undertake a charter over this period should finalise their plans as soon as possible.
Data collected by Camper & Nicholsons also indicates there was a slight increase in charter numbers in North America and the Indian Ocean, and Asia and Antarctica remained stable when comparing 2015 on 2014. But as these cruising grounds become more accessible, it will be interesting to see whether there will be any significant increases here in the upcoming years.
NATIONSLITIES CHARTERING
The State of Wealth also takes a look at the number of nationalities chartering over the past six years, noting a general increase in the number of different nationalities chartering. South Americans have enjoyed a resurgence while the American market is buoyant, accounting for approximately 40% of yacht charters in 2015.
The Saudi market has doubled, taking the place previously held by Russia, and Europe remains a steady market with Switzerland, France, Monaco and Spain all maintaining their averages.
There has, however, been a slight decrease in UK and Russian bookings, but the former is on the increase, climbing back towards their peak. The decrease in the Russian market is put down to the exchange rate as well as the economic and political situation.
A superyachttimes.com article, Review: An outsider’s view of the Russian buyer’s market, offers another insight into the Russian superyacht market. Following the Crimean status referendum in March 2014, Russian’s economy has been under pressure and its currency remains weak.
In the article, Julia Skoptsova, sales director at Smart Yachts, claims that as a side effect of the situation, Russians are choosing to charter over private ownership. She does stress however that it will be a temporary market movement.
If you are interested in chartering a luxury yacht, please speak to your preferred charter broker.
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