THE INTERNATIONAL YACHT COMPANY CHARTER MARKET REPORT JANUARY - JUNE 2022 OVERVIEW
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2022EXECUTIVECONTENTSSUMMARYGLOBALCHARTER MARKET TRENDS OVERVIEW GLOBAL BOOKINGS BY LOCATION WINTER SEASON 2022 CHARTER BOOKINGS BY LOCATION SUMMER SEASON 2022 CHARTER BOOKINGS BY LOCATION 2022 CHARTER FLEET OUTLOOK IYC RETAINS ITS LEADERSHIP POSITION IN THE CHARTER MARKET THE IYC CHARTER FLEET EVOLUTIONCONTENTS4681216202224DISCLAIMER
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The purpose of this report is to provide a synopsis of the prevailing state of the charter market in 2022 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. GlobalSarantiMarketing Director
Irini
Following a record year for the charter market, the 2022 charter season is proving to be even more active. After two years, where international travel was affected by covid related regulations, the appetite for vacationing abroad increased with clients looking to venture on yacht charters around the world.
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The 2022 winter charter season recorded robust activity and the summer season is expected to be even stronger than 2021.
EXECUTIVE SUMMARY
The Mediterranean has already recorded a +10% increase in bookings versus 2021, primarily driven by high activity among US based clients who have returned to the region, following two years chartering ‘closer to home’. The Bahamas and New England, which had seen a surge in bookings during the past two years, are experiencing slower activity.
HIGHER ADVANCED PROVISIONING ALLOWANCE (APA) REQUESTED
Despite an overall normalization in travel regulations in most parts of the world, the trend of booking last minute is still there although not as strong as 2020 and 2021. Charters are still booking less than thirty days prior to the embarkation date, however all in all the rate of requests has been more spread out, with more inquiries during the months of April and May.
With fuel prices at a high, certain clients especially in the smaller yacht size segment, are favoring yachts that have a lower fuel consumption.
DEMAND FOR YACHTS WITH VACCINATED CREW Yachts that employ fully vaccinated crew have gained popularity among clients who are still weary of Covid.
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As the cost of goods and fuel in particular increase, clients are requested to pay a higher APA (35% versus 30% - even 40% in some cases) to cover the cost of provisions and running expenses for their charter.
GLOBAL CHARTER MARKET TRENDS OVERVIEW JANUARY - JUNE 2022
A STRONG ‘MED’ SEASON
LAST MINUTE BOOKINGS
HIGHER DEMAND FOR FUEL EFFICIENT VESSELS
Despite a drop in requests during the first 10 days following Ukraine’s invasion, the war has not had a significant impact on the charter market. Turkey was one of the destinations to benefit, with certain Russian clients choosing to charter in the area. This, coupled with the devaluation of the Turkish Lyra, has resulted in a +36% increase in charters to date versus 2021. ALREADY IN THE BOOKS FOR 2023
With appetite for travel remaining high the charter market is already recording bookings for 2023 in the Caribbean, the Bahamas, as well as the Mediterranean for the summer season. If the dollar maintains its stronger value versus the euro, we expect to see a further increase in early ‘Med’ bookings for next summer.
CHARTERS
CHARTER MARKET REPORT | 7 4% 19% 3% 62% 7%3% 2% IYC CHARTER CLIENT BOOKINGS BY NATIONALITY49% NORTH OTHERSOUTHMIDDLEUKRUSSIANEUROPEANAMERICANEASTERNAMERICAN IMPACT OF WAR IN UKRAINE
