14 NATCHEZ ON THE WATERFRONT
Bigger boats – bigger challenges and opportunities By Dan Natchez*
F
or years, I’ve been saying that people want to go boating to get away from it all, but want to bring it all with them. It is even truer today. Not only are boats getting longer, wider and deeper in draft, but they are also being outfitted with every imaginable creature comfort – from electronic devices to full-fledged bathrooms (not sure we can call them heads any more), with marble tile and gold fixtures, and many with tubs as opposed to tight curtained showers. We are told that there is more wiring in a 40 ft (12 m) yacht than in the average threebedroom house. Roughly 25 years ago, the sweet spot in recreational boats was typically in the 28 ft (8.5 m) to 35 ft (10.7 m) boat length, while today it appears to be more in the 40-50 ft (12-15 m) boat length. In the same time period, on landlocked lakes with deep water, a boat of 40 ft (12 m) or above was considered extraordinary – today, boats over 50 ft (15 m) are no longer an oddity. It is also true that the number of megayachts and superyachts in the
As the demographics of boaters are changing, so is the economic capacity of the boat- buying public. With the higher disposable income needed to purchase the boats of today (and tomorrow) often comes the ability to pay higher fees to the marina for berthing and other services. world, while still a relatively small number compared to the overall total of boats, has increased more than most might have thought possible. There is no question that the larger boats, whether they are from 40 ft (12 m) to over 500 ft (152 m), draw in other boaters, as well as
MARINA INDUSTRY • FEBRUARY 2022
the public in general. This interest, together with the support and services the bigger boats require, can translate into higher revenue streams from raising berth rental fees, to sales of fuel and other profit centres, including chandlery, food service, etc. Keep in mind, though, that the approach taken must be cost-effective. As boat sizes have changed, the costs of the boats have gone up tremendously and both the demographics and types of boaters have changed dramatically, with there being more boat owners who are more demanding, have higher expectations and have less overall boating knowledge and experience. All of these developments present significant opportunities and challenges to marinas. As the demographics of boaters are changing, so is the economic capacity of the boat- buying public. With the higher disposable income needed to purchase the boats of today (and tomorrow) often comes the ability to pay higher fees to the marina for berthing
and other services. We have found that boaters are willing to pay higher than traditional rates if they perceive value for what they are paying. Like the wide range of pricing from the five star down to the one and two star hotel, or from the top of the line luxury automobile down to the economy models, there are opportunities at all levels of marinas and sizes of boats depending upon what is offered and, more importantly, what the customer perceives as the value of what is being offered. The more expensive and larger the boat, the more customers tend to be concerned about that value and the more the initial expense for the marina to provide the upscale facility for the upscale boats. Unfortunately, the industry, with some notable exceptions, has long suffered from undercharging for its services. One such exception is a marina chain that took a different approach and typically has charged around 20% above the surrounding market. Noted for their exceptional customer service and high quality
