There was a time when people would strive to have the capital to spend on renting what is known in the industry as a “super yacht” in order to flaunt to one’s friends and family, his or her level of success. However, industry professionals fear that time has come and gone. The newly rich up coming generations are a hard sell to spark interest in boating as a mode of touting one’s achievements. There are a number of reasons for the boating industry suffering from this economical struggle. Some of the most important reasons include the culture of the clientele, the global economy in general, and the places that people are putting their money to party do not include boats as much any more. There is no longer a necessity for partygoers to hop on a davits yacht in order to feel justified and fulfilled.
The clientele of boating excursions like this has drastically changed over the years. When the clientele was primarily American based, people were looking to yachts to party and celebrate their success and achievements. For instance, Steve Jobs yacht was constructed at an amazing expense. It was a gigantic yacht that was over 80 meters long and was built as an avatar for excellence. The yacht was later impounded due to nonpayment. Where the clientele used to be primarily Americans, who have great maritime traditions and desires, the market shifted over to Europeans eventually. The good news for the boating and yachting industry was that Europeans loved getting out on the open water just as much as Americans do. This was not quite as big of an industry hit as recent developments. Now the newly rich prospective clientele has shifted over to an Asian market, and to put it bluntly, they do not have the same desire to celebrate accomplishments out on the water. There are other places that they are investing their money. It would take a significant amount of money to rent or own a large ship like the ones that were built a decade ago. The demographic of the newly rich of this generation is impacting the boating industry greatly because they are not interested in investing in the boating lifestyle.
The next big influencing factor is the global economy in general. Where people used to have the money in general to flaunt and spend on luxurious expenses, people are now more likely to hold on to every penny. Where people used to celebrate by spending a gratuitous amount of money on celebratory drinks and amenities, people are now holding lower key celebrations that more closely resemble a potluck. This is a huge impacting factor on the boating market. Furthermore, the people who do love being out on the water in order to relax and celebrate are now investing in smaller vessels that are easier to maintain and take care of. On top of the lowered initial expense, these smaller boats also have lower maintenance costs. Finally, the newly rich demographic of this upcoming generation have different priorities. The newly rich are interested in investing their money in other avenues that do not traditionally include big “super yachts.”
The “super yacht” industry has taken a huge hit in the last couple of years and it has been primarily due to the culture of the clientele, the global economy in general, and the places that people are putting their money to party do not include boats as much any more. This will hopefully change in the future; however, boating professionals do not seem to think it will ever be what it used to be.
Information for this post provided to us by UMT Marine.
It would make sense that the luxury yacht biz would be way down. I wonder about other luxury markets. What is puzzling, though, is the uber wealthy have increased in wealth, so they do have the money, but not the confidence or good feelin’s to spend it.
I would like a boat, but not a yacht if I was super rich. To much upkeep and expense. I would even not spend a lot o money on cars either. There is not many people that can and want a yacht. But, they are pretty boats and I have been on one, and they are so roomy!
Ditto for me – even if I was super-rich, there wouldn’t be a yacht (not owned, anyway) – the capital would be spent on a large plot of land and a building for an animal shelter in my second home’ neighborhood!
Well this is good to know. If I was super rich I wouldn’t have a yacht at all. I’m not a big boat fan. I used to have one and they are really kind of a pain. They are a lot of work and a lot of money.
If I was super rich I would not want a huge yacht. I’d have several apartments/houses all over the world and a smaller yacht or 2 indifferent parts of the world.