The rising number of boats being sold as second hand and for hire are driving down the prices of yachts. This is a challenge that business owners and yacht builders were not expecting at all.
Owning Vs. Renting
Chartering is considered by some people to be a “Very Expensive Holiday Vacation.” Chartering is now being forced into lowering the prices due to some challenges in Yacht chartering, and it’s market. Right now, the chartering market is not only swamped with concerns about people having their boats for rent but also those people who are in the market to sell their pre-owned or second-hand yachts, which is significantly affecting Yacht and chartering prices.
Prices of yachts vary depending on the make and model, customization, and specifications of the Yacht. Mass-produced yachts tend to be cheaper as they are the ones considered “Generic” boats. They follow one customized look and are produced in large numbers. Typically, prices for these kinds of yachts range from $120,000 to $4 million. The make and model for these kinds of yachts are considered typical, considering that the target market for these yachts is the general public who can afford the simplest yachts.
On the other hand, semi-custom or full-custom yachts are more expensive. These yachts are not considered your entry-level yachts that are made in bulk or mass-produced. Customers who prefer these kinds of yachts are willing to pay as long as the customization is based on their requests. These yachts can range from $5 million and up, considering that customers prefer getting their custom requests done on these yachts.
The price to pay for requested customization may be high, but the satisfaction these customers get from having a custom yacht is priceless. It is expected that the performance, specifications, amenities, appearance, and performance are better than the mass-produced ones considering the amount of money they had to pay to customize these boats. And performance-wise, they are the best. An example of this fantastic Yacht is the Hatteras M60, which boasts of luxury, comfort, and performance.
Quality over Quantity
Details about the pricing, performance, and other stuff showed the truth that the yacht chartering market is now being challenged. It may be true that the number of charter days per year has increased by at least thirty to forty percent in the last ten years, the number of yachts have also doubled and might have tripped in that timeframe too. Much competition has entered the market, forcing the owners of yachts and the builders to either bring down their prices or cut down the fees for chartering.
Another challenge in Yacht chartering is the competition. Because there are many options for yachts and chartering, customers looking into purchasing yachts at a lower price, and they would end up being stingy and would be looking for better bargains. This now forces builders and owners to lower their costs. The same thing would happen to business owners who are into chartering for hire. They would be forced to lower chartering and hiring fees, too, which may kill the chartering industry in the years come.
Business owners who are into the Yacht chartering business are now taking steps to try and address these challenges. Connecting with brokers and financial experts is the first step they are taking. The yacht chartering business is not just for people to have a good time. It’s more of an experience.
Many people who are in the yacht chartering business try to keep their prices at least close to the competition. This would at least keep the market stable and leveled. Although it may take time for the market to go back to its former glorious stature, the yacht chartering market can only hope that more new clients would come in the years ahead.