Global megarich are paying up to $2 million a week for superyacht rentals but smaller boat charters are down
Sales of luxury yachts may be down, but the world's wealthy have found another, more immediate way to enjoy a trip on the high seas – chartering a luxury boat instead.
Total charter days for yachts over 50 meters have increased since 2020, according to IYCA global company specializing in the sale and rental of luxury yachts. Vessels between 60 and 70 meters in length recorded the biggest growth last year, at 10%, while shorter yachts are no longer as popular as they once were.
CEO of IYC Rafael Solo He said he's seeing more customers willing to pay a higher premium for the ultimate ocean experience. He said customers are willing to pay more for the so-called advanced catering allowance, which covers on-board expenses such as food and service, by up to 40% compared to the standard 30% of the total charter fee.
New customers are coming to yachting “with an appetite for larger yachts,” Solow said. Compared to smaller ships, these floating villas have more privacy, better facilities and a larger crew. He added that the wider range of larger models that have become available over the past three years has also contributed to the increase in bookings.
Fraser Yachts, a major international brokerage, is experiencing a similar phenomenon, receiving charter bookings for yachts longer than 60 meters up 7% in 2023 compared to previous years. However, across yachts of all sizes, the number of charter days reported last year was down 19% from 2021.
It's a feature that would seem to fit in with a trend of luxury brands defying the broader luxury slowdown. For example, Hermes International SCA has seen Chinese buyers Acquire their products. Hermès typically caters to wealthier clients, making it more resilient in the challenging luxury goods market.
Meanwhile, sales of floating mansions are declining, Superyacht Times reported a report in March. Sales of superyachts, generally defined as boats longer than 30 metres, contracted by 20% in 2023 compared to 2022, then fell significantly in 2021, when many wealthy people spent on boating to travel in a safe and exclusive way.
Stacey Fisher RosenthalThe president of luxury travel and lifestyle consultancy Fischer Travel Enterprises said she expects to help clients charter at least 10 yachts this year. She added that most of the interest is around megayachts – or yachts more than 60 meters in length – with prices ranging from about $700,000 to $2 million per week.
Wealthy people may avoid direct purchases due to geopolitical concerns and global conflicts.
Fear of expanding fighting in the Middle East and Russia's war in Ukraine “appear to be making some buyers nervous, especially those in the market for new, large yachts,” the Super Yacht Times newspaper said.
