Charter Market Report
Q1 2023 OVERVIEW
THE INTERNATIONAL YACHT COMPANY
Contents
EXECUTIVE SUMMARY
GLOBAL CHARTER MARKET TRENDS
GLOBAL BOOKINGS BY LOCATION
WINTER SEASON 2023 CHARTER BOOKINGS BY LOCATION
SUMMER SEASON 2023YTD 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 following 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 charters. Bookings for the 2023 summer season are building up and we expect to see healthy charter activity in the Mediterranean, likely to reach but not surpass the levels seen in 2022. 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
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.
PRE-COVID BOOKING REQUEST PATTERN
Monthly booking requests seem to be following a more regular 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 size segment, are favouring yachts that have a lower fuel consumption.
‘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.
POPULARITY OF YACHTS WITH
Yachts with a rich water toy collection clients selecting to visit more remote
A SLOWER 2023 WINTER SEASON
The Caribbean and Bahamas, comprising season in comparison to 2022. The the primary charterers in these destinations, in 2022. As a result they may have
A HEALTHY 2023 ‘MED’ SEASON
Mediterranean summer charters account a significant 23% increase in 2022. activity in the Mediterranean, likely
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WITH LARGE WATER TOY COLLECTIONS
collection have become even more popular. With certain charter remote locations, toys are proving to be a great pastime.
SEASON
comprising 91% of winter season bookings, experienced a slower The holiday season was also slower. US based clients who are destinations, were finally able to charter in the Mediterranean chosen alternative vacation options for the winter season.
SEASON
account for more than 90% of total bookings, and experienced 2022. It is projected that the 2023 season will see healthy charter likely to reach but not surpass the levels seen in 2022.
ALASKA
PACIFIC NORTH WEST
Year round bookings, attracting US based clients.
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CRUISING TRAFFIC % OF TOTAL BOOKINGS BY LOCATION (ANNUALLY)
*Source: Yachtfolio. Yachts 20 meters and above. December 31, 2022
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MIDDLE EAST MALDIVES 1% SOUTHEAST ASIA 1% CROATIA 10% TURKEY 6% GREECE 24% ITALY 16% FRANCE 18% 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. 2022 you want more? YOUR PERSONAL OF OUR LATEST ISSUE OF MARKET REPORT THE FULL EDITION.
By Location 2022
