As I look back at past “Travel” blogs I’ve noticed that I have neglected to cover the area of boating. Sure, I have written about cruises, but you can’t really compare a 160,000-ton ship with a dingy (not that this blog is about a dingy). I live just a few miles from one of the largest ship manufacturing plants in the world. You’d think that fact alone would inspire me to blog about the yacht industry. It hasn’t—until now.
I’ve learned that you don’t have to be in the market to buy a yacht to appreciate the trends in yacht building. As with many things in life: size matters. Especially when you are talking about luxury yachts. At a recent boat show in Cannes, France, the key words were: “bigger and faster.” Studies show that low interest rates and advancements in technology have inspired more people to use yachts as mobile offices or a place to simply enjoy all the comforts of home—on the high seas. A recent report shows that demand for high-end yachts over 98 feet is stronger than ever.
One yacht builder told visitors to the Cannes Boat Show: “Ten or 15 years ago anything over 90 feet was huge — unbelievably big. A lot of those boats are now on the second- hand market. The most buoyant part of the market right now is mega yachts – 200 feet and up.”
Yacht builders say growth is coming from buyers who want big boats. Of course, big boats come with equally big price tags. Most larger yachts will run you about $3 million and that’s not factoring in fuel, crew wages and other amenities like food and beverages.
But, as I mentioned earlier, you don’t need to be in the market for a yacht to appreciate all that one has to offer. A growing number of people rent the luxury “floating homes” to experience a “unique vacation” void of crowds and noise. In fact, statistics show that last summer there was a shortage of boats for charter in Europe. A large demand went unsatisfied and the travelers who were able to secure a yacht ended up paying a hefty price for it.
Apparently, for some, money is not a factor when it comes to traveling in style. In fact, recent studies show that not only has the top end of the boating market grown for two years–industry analysts anticipate it will grow for another two years. By all accounts it seems people at the top end are not affected by economic trends, such as higher interest rates, in the same way as people at the lower end are. Speaking of “high end,” one yacht chartering business owner told Cannes Boat Show visitors that she recently supplied a client with $25,000 worth of wine alone… to be stocked in an on-board wine cellar worth nearly $200,000.
A leading yacht manufacturer said the market was “being driven by the growth of new wealth and the emergence of a non-traditional customer who wanted boats providing the comfort of cruise ships.” What’s more, many smaller yacht and catamaran makers noted that they could sell more if countries like the United States would expand its ports, which are full. Yacht builders noted that space is especially an issue in Florida and New England.
Sadly, my yachting experience has been contained to dry land (touring one at the manufacturer’s warehouse), but if I ever win the lottery chartering a yacht for a family vacation will be high on my “must-do” list. Have you ever been on a yacht?
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