Yachting becomes trendy! Can the good times last long？

In 2020, the sales amount of U.S. boats exceeded 318,500 which is the highest record for the past 13 years. The boat manufactures have already filled their orders in 2022 and have begun to arrange them until 2023. This is mainly due to the demand driven by the epidemic. Industry professionals are thinking about when the bubbles will begin to burst. However, some analysts believe the upsurge can continue for a while.

Joe Altobello, an analyst at Raymond James Financial, told CNBC in the interview: "I think a lot of people are surprised that the demand for yachts continues to be high. To be honest, I thought it was a little unexpected, too. However, I think this reflects the enduring appeal of yachting“.

The outbreak has suddenly given millions of Americans extra time and money on hand, and yachting is one of their few spending choices. But Joe Altobello points out that the upward trend in yachting activity began before the outbreak. The financial radio network points out that the popularity of yachting activity is partly due to innovative designs that simplify the emergence of new business models such as yachting operations, yacht clubs and subscriptions, and programmes such as Discover Boating aimed at promoting boating to the public.

In many ways, buying a boat is a word-of-mouth marketing. As a result, every new buyer in the market has a circle of friends who can be converted to the next new buyer at any time.

Some in the industry believe that in the next three years, there may be a second-hand boat market, full of relatively new boats. Still, Joe Altobello thinks the opposite is true.

From many sides "there may also be an upgrade cycle in the next few years, when current shipowners may want to upgrade their yachts."

"In fact, we think this period of demand growth is fundamental and will continue for years to come," he said. (Author: Tony Esposito)

Reference: IBI International Boat Industry