EXECUTIVE SUMMARY
The 2022 charter season has surpassed market expectations with bookings exceeding those of 2021, which was considered to be a record breaking year. 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. The 2022 winter charter season recorded robust activity and the summer season was stronger than 2021.
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.
Irini Saranti Digital Growth Director
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GLOBAL CHARTER MARKET TRENDS 2022
HIGHER ADVANCED PROVISIONING ALLOWANCE (APA) REQUESTED
As the cost of goods and fuel in particular increase, 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.
LAST MINUTE BOOKINGS
The trend of booking last minute (less than thirty days prior to the embarkation date) is still apparent although not as strong as 2020 and 2021.
HIGHER DEMAND FOR FUEL EFFICIENT VESSELS
With fuel prices at a high, certain clients especially in the smaller yacht size segment, are favouring 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.
POPULARITY OF YACHTS WITH LARGE WATER TOY COLLECTIONS
Yachts with a rich water toy collection have become even more popular. With certain charter clients selecting to visit more remote locations, toys are proving to be a great pastime.
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A STRONG ‘MED’ SEASON
The Mediterranean, which accounts for over 90% of total summer charters, recorded a +23% increase in bookings versus 2021, primarily driven by high activity among US based clients who returned to the region following two years chartering ‘closer to home’. The Bahamas and New England, which had seen a surge in bookings in 2020 and 2021, recorded a decline.
IMPACT OF WAR IN UKRAINE
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 summer destinations to benefit, with several Russian clients choosing to charter in the area. This, coupled with the devaluation of the Turkish Lyra, resulted in a +49% increase in charters versus 2021.
CHARTERS BUILDING UP FOR 2023
With appetite for travel remaining high the charter market is already recording bookings for 2023, although at a slower pace.
The Caribbean and Bahamas are gradually building up their winter holiday calendars to reach last year’s levels, and the majority of 2023 summer bookings are in the East Mediterranean.
‘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.
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