Charter Market Report
JANUARY - JUNE 2023 (H1)
OVERVIEW
THE INTERNATIONAL YACHT COMPANY
Contents
EXECUTIVE SUMMARY
GLOBAL CHARTER MARKET TRENDS
GLOBAL BOOKINGS BY LOCATION
SUMMER SEASON 2023 YTD CHARTER BOOKINGS BY LOCATION
WINTER SEASON 2023 CHARTER BOOKINGS BY LOCATION
GLOBAL CHARTER FLEET OUTLOOK
IYC RETAINS ITS LEADERSHIP POSITION IN THE CHARTER MARKET
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.
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Executive summary
2023 is exhibiting healthy charter activity, although a little slower, compared to the record-breaking 2022. The winter charter season saw a slower pace, particularly in the Caribbean and Bahamas. However, some destinations in Asia and the Pacific saw growth in charter demand.
The Mediterranean is exhibiting popular charter activity although the summer season is expected to be to be slower compared to last year. Greece, France and Italy maintain their positions as top yachting destinations for the summer season. On the other side of the Atlantic, New England and the Bahamas are seeing a decline in bookings.
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.
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The IYC Intelligence Team
Latest Global Charter Market Trends
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.
PRE-PANDEMIC BOOKING REQUEST PATTERN
Monthly booking requests seem to have ‘normalized’, returning to a more regular demand pattern in line with the pre-Covid period. Travel constraints during the pandemic resulted in a high number of last minute charters and an atypical booking request pattern.
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.
POPULARITY OF YACHTS WITH LARGER 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.
‘FUEL EFFICIENT’ AND ‘VAT FRIENDLY’ ITINERARIES
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 expected to gain market share.
A SLOWER 2023 WINTER SEASON
Comprising 91% of winter season season in comparison to 2022. The primary charterers in these destinations As a result they may have chosen
A HEALTHY, BUT SLOWER
Mediterranean summer charters account a significant 23% increase in 2022. in the Mediterranean, but is expected Mediterranean is seeing stronger fewer last minute bookings for the charter market in Greece and France, weeks booked on each yacht.
A SLOW SUMMER SEASON
Both destinations are experiencing restrictions during the pandemic had venture to the other side of the Atlantic
2023
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SEASON
bookings, the Bahamas and Caribbean experienced a slower The holiday season was also slower. US based clients who are the destinations were finally able to charter in the Mediterranean in 2022. alternative vacation options for the winter season.
2023 ‘MED’ SEASON
account for more than 90% of total bookings, and experienced 2022. Overall the 2023 season is seeing healthy charter activity expected to be a little slower compared to 2022. To date, the East activity compared to the West, but both regions are seeing month of August. Additionally, more yachts have entered the France, with both regions experiencing fewer average number of
SEASON IN THE BAHAMAS AND NEW ENGLAND
experiencing a slower summer season compared to previous years. Travel had boosted charters, but US based clients seem to prefer to Atlantic for their charter vacation.
ALASKA
PACIFIC NORTH WEST
Year round bookings, attracting US based clients.
Do you to read
NEW ENGLAND 1%
FLORIDA
BAHAMAS 6% CARIBBEAN 7%
CENTRAL / SOUTH AMERICA
Winter destination with the highest number of bookings and a peak during the New Year’s period.
CRUISING TRAFFIC % OF TOTAL BOOKINGS BY LOCATION
*Source: Yachtfolio. Yachts 20 meters and above. June 30, 2023
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MIDDLE EAST MALDIVES 1% SOUTHEAST ASIA 2% CROATIA 12% TURKEY 6% GREECE 27% ITALY 16% FRANCE 16% BALEARICS 6% AUSTRALIA SOUTH PACIFIC 1% NEW ZEALAND MEDITERRANEAN The most popular destination for the summer season with the majority of bookings in Greece, France, Italy and Croatia. you want more? YOUR PERSONAL OF OUR LATEST ISSUE OF MARKET REPORT THE FULL EDITION.
Location 2023 YTD
