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 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.

A Slower 2023 Winter Season

The Caribbean and Bahamas, comprising 91% of winter season bookings, experienced a slower season in comparison to 2022. The holiday season was also slower. US based clients who are the primary charterers in these destinations, were finally able to charter in the Mediterranean in 2022. As a result they may have chosen alternative vacation options for the winter season.

A HEALTHY 2023 ‘MED’ SEASON

Mediterranean summer charters account for more than 90% of total bookings, and experienced a significant 23% increase in 2022. It is projected that the 2023 season will see healthy charter activity in the Mediterranean, likely to reach but not surpass the levels seen in 2022.