Charter Market Report
JANUARY - MARCH ( Q1 ) 2024
OVERVIEW
THE INTERNATIONAL YACHT COMPANY
EXECUTIVE SUMMARY
LATEST GLOBAL CHARTER MARKET TRENDS
GLOBAL CHARTER BOOKINGS 2024 YTD BY LOCATION
SUMMER SEASON 2024 YTD CHARTER BOOKINGS BY LOCATION
WINTER SEASON 2023 - 2024 YTD CHARTER BOOKINGS BY LOCATION
GLOBAL CHARTER FLEET OUTLOOK IYC
RETAINS ITS LEADERSHIP POSITION IN THE CHARTER MARKET THE IYC CHARTER FLEET EVOLUTION 4 6 8 12 16 20 22 24 DISCLAIMER The IYC team has worked hard to ensure that all facts and information printed in this report at the time of publication are correct. IYC cannot accept responsibility for any errors, omission or inaccuracies and is not responsible for or owes any duty of care to any party seeking to rely on the content of the report. Any such reliance shall be taken at the persons’ own responsibility. No part of this report may be reproduced without the permission of IYC. Contents
Executive summary
During the f irst quarter of 2024, the charter booking activity experienced a slowdown in terms of weeks booked across all major destinations compared to the resilient market observed in 2023. Both the Winter and Summer seasons have seen a decrease in the total number of charters secured in 2024 year-to-date (YTD). However, the booking pattern by cruising locations remains consistent with that of 2023.
The winter charter season has not shown the same strength as the previous year, despite the Caribbean and the Bahamas maintaining their market shares in the region. Looking at the charter bookings secured in the Mediterranean thus far, the West Mediterranean is lagging behind compared to last summer in terms of market share in the region. However, an increase in bookings is anticipated thanks to last-minute and special rate offers as the peak season approaches.
Although the global charter f leet has continued to expand during the f irst quarter of the year, it has done so at a slower pace than in 2023.
The purpose of this report is to provide a synopsis of the prevailing state of the charter market in 2024 year-to-date and an outlook for the upcoming summer season. IYC is closely following the charter market and client trends, which are shaping the industry as a result of global events.
The IYC Intelligence Team
C HARTER MARKET REPORT 5
Latest Charter Market Trends & Outlook
IYC closely monitors the global charter market to provide insight and advice based on the latest trends and developments. The Charter Market remains in growth, with robust activity in key cruising grounds around the globe. IYC closely monitors the global charter market to provide insight and advice based on the latest trends and developments.
SLOWER BOOKING ACTIVITY IN 2024 YTD
After experiencing a robust level of charter activity in 2023, the pace of bookings at the outset of 2024 has been notably sluggish, with fewer weeks booked than anticipated. To date this year, only 30% of the total charters booked in the entirety of 2023 have been secured. The comparatively lower booking f igures observed thus far in 2024, spanning both Winter and Summer seasons, indicates a reversion to pre-pandemic levels within the charter market. However, we maintain an optimistic outlook that bookings for summer charter destinations will pick up as we approach the peak season of the year.
GREECE REMAINS TOP CHARTER DESTINATION
Market data consistently demonstrates that Greece maintains its position as the most sought-after charter destination, surpassing both West Mediterranean and overseas regions. Greece accounts for 26% of all charter bookings alone in 2024 to date and 32% of total summer bookings. Notably, the country is part of the most highly demanded charter region, with the East Mediterranean representing 55% of total summer bookings in 2024 YTD, marking a 4% increase in market share compared to the previous year.
MORE BOOKINGS EXPECTED IN WEST MEDITERRANEAN
As of present, the West Mediterranean region is trailing behind in terms of summer charter bookings compared to the previous season, notably in Italy, where bookings have reached only 36% of all bookings for the upcoming peak season. We anticipate that West Mediterranean region will see an uptick in reservations as the season approaches, driven by an increase in last-minute bookings and the availability of special charter offers. Based on the current booking levels, we can anticipate that the upcoming Summer season is likely to reach approximately 7,000 charter weeks booked, a f igure closer to levels observed in 2019 - 2020.
LAST MINUTE & REDUCED CHARTER RATE OFFERS
Since the beginning start of 2024, the charter market has seen a rise in special offers on charter yachts across most size categories aimed at stimulating the booking activity for the coming summer season. Charter management companies are implementing discounted weekly rates on available vessels and promoting last-minute offer to f ill remaining spots, encouraging potential clients to secure reserve their charter before availability becomes limited.
SLOW 2024 WINTER SEASON
The winter charter season of 2024 is witnessing its lowest booking f igures in recent years, as well as the holiday season. Following a healthy winter season 2023, the current level of bookings for Winter 2024 stands at only 37% compared to the previous season. As of 2024 YTD, 82% of weeks booked are concentrated in the Caribbean and the Bahamas, mirroring trends observed last year, while the South Paci f ic experiences a notable decline in bookings. South Asia maintains a stable share of charter weeks booked versus last year.
HIGHER ADVANCED PROVISIONING ALLOWANCE ( APA ) REQUESTED
With the cost of goods and fuel at a high, clients are requested to pay a higher APA (35% or 40% versus 30% of the total charter fee) to cover the cost of provisions and running expenses for their charter.
HIGHER DEMAND FOR FUEL EFFICIENT VESSELS
With fuel prices at a high, certain clients, especially in the smaller yacht segment, are favouring yachts that have a lower fuel consumption, including luxury catamarans and sailing yachts. Destinations that can offer more ‘fuel ef f icient’ itineraries (eg. a charter in a cluster of islands closely located to each other) or have a favourable VAT structure, are gaining market share.
POPULARITY OF YACHTS WITH LARGE WATER TOY COLLECTIONS
Yachts with a rich water toy collection have become even more popular. With certain charter clients electing to visit more remote locations, toys are proving to be a great pastime.
Year round bookings, attracting US based clients.
Niche summer charter destination attracting US based clients.
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MEDITERRANEAN
The most popular destination for the summer season with the majority of bookings in Greece, France, Italy and Croatia.
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Winter destination with the highest number of bookings and a peak during the New Year’s period.
C HARTER MARKET REPORT 9 C HARTER MARKET REPORT | 8
CRUISING
% OF TOTAL BOOKINGS BY LOCATION MIDDLE EAST MALDIVES 1.5% SOUTHEAST ASIA 1.5% CROATIA 14% TURKEY 6% GREECE 26% ITALY 13% FRANCE 15% BALEARICS 6% AUSTRALIA SOUTH PACIFIC 2% NEW ZEALAND
Global Bookings By Location 2024 YTD
TRAFFIC
ALASKA NEW ENGLAND 1% FLORIDA BAHAMAS 7% CARIBBEAN 7% CENTRAL / SOUTH AMERICA PACIFIC NORTH WEST
