Charter Market Report JANUARY - DECEMBER 2023 OVERVIEW
T H E I N T E R N AT I O N A L YA C H T C O M P A N Y
Contents
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4
EXECUTIVE SUMMARY
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LATEST GLOBAL CHARTER MARKET TRENDS
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GLOBAL BOOKINGS BY LOCATION
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WINTER SEASON 2023 - 2024 YTD CHARTER BOOKINGS BY LOCATION
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SUMMER SEASON 2023 CHARTER BOOKINGS BY LOCATION
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GLOBAL CHARTER FLEET OUTLOOK
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IYC RETAINS ITS LEADERSHIP POSITION IN THE CHARTER MARKET
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THE IYC CHARTER FLEET EVOLUTION
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.
Executive summary
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The 2023 charter market has exhibited all-in-all healthy activity, following a record-breaking 2022. While the winter charter season was not as strong as the previous year, particularly in the Caribbean and Bahamas, the summer season in the Mediterranean saw great activity, nearly matching 2022 levels. The charter fleet has continued to expand, with more yachts becoming available especially in popular destinations such as Greece and France. Superyachts are already accepting bookings for the 2024 winter charter season, although it seems to be picking up at a slower pace. The purpose of this report is to provide a synopsis of the prevailing state of the charter market in 2023 and an outlook for the upcoming charter 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
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Latest Charter Market Trends IYC closely monitors the global charter market to provide insight and advice based on the latest trends and developments. The Charter Market remains strong, 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. The Charter Market remains strong, with robust activity in key cruising grounds around the globe.
A SLOWER START TO THE 2024 WINTER SEASON Currently accounting for 76% of winter season bookings, the Bahamas and Caribbean are experiencing another slow start to the winter season. 2023 winter season concluded at 81% in number of weeks booked, with both destinations slightly behind in terms of bookings versus the same period year ago. Reservations are expected to add up for the remaining weeks of the 2024 winter season. Although more niche charter destinations, Southeast Asia, the South Pacific and Indian Ocean, are recording healthy booking patterns for the season, claiming so far 24% of market share versus 19% in 2023.
STRONG ‘MED’ SEASON 2023 Following what was a record breaking 2022 summer charter season, the 2023 season saw healthy activity in the Mediterranean accounting for 96% of total summer charters. The Eastern Mediterranean experienced a higher level of activity than the Western region, but both areas showed comparable numbers to the previous year’s bookings.
BAHAMAS AND NEW ENGLAND BACK TO PRE-PANDEMIC DEMAND FOR THE SUMMER SEASON Both destinations experienced slower summer seasons compared to 2021 and 2022, where travel restrictions had boosted performance. Numbers are closer to what they were in 2019, as American clients, who typically vacation in these destinations seem to be drawn to the other side of the Atlantic for their summer holidays.
MORE YACHTS ENTERING THE CHARTER FLEET IN KEY YACHTING DESTINATIONS The healthy charter season of 2023 coupled with an increase in yacht operational expenses, resulted in more yachts entering the charter fleet across popular yachting destinations. Examples include Greece and France, which saw an increase in the number of yachts in the charter fleet but with both regions experiencing fewer average number of weeks booked on each yacht.
LAST MINUTE CHARTER REQUESTS TO SECURE FAVORABLES WEATHER Due to shifting weather patterns, particularly in the early summer season, there was a rise in last-minute charter enquiries. Many clients were seeking to secure favorable weather conditions for their vacation and potentially negotiate better rates.
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 efficient’ 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.
Global Bookings by Location 2023
ALASKA
PACIFIC NORTH WEST
Niche summer charter destination attracting US based clients.
Do you to read
NEW ENGLAND 1%
REQUEST YOUR
CRUISING TRAFFIC % OF TOTAL FLORIDA Year round bookings, attracting US based clients.
BAHAMAS 6% CARIBBEAN 7%
CENTRAL / SOUTH AMERICA
THE CHARTER MA
AND ENJOY READING T Winter destination with the highest number of bookings and a peak during the New Year’s period.
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BOOKINGS BY LOCATION
COMPLEMENTARY COPY OF
u want more? MEDITERRANEAN
The most popular destination for the summer season with the majority of bookings in Greece, France, Italy and Croatia.
CROATIA 11%
FRANCE 17%
BALEARICS 6%
ITALY 16%
R PERSONAL
TURKEY 6%
GREECE 26%
F OUR LATEST ISSUE OF
MIDDLE EAST
RKET REPORT
THE FULL EDITION.
MALDIVES 1%
SOUTHEAST ASIA 2%
SOUTH PACIFIC 1%
AUSTRALIA
NEW ZEALAND
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