The superyacht market is on the rise as rich people seek luxury and isolation

After one of the worst crises in the history of tourism and travel, part of the market has thrived as the business has seen a huge increase in demand.

Superyacht’s demand has rarely been strong with wealthy tourists fleeing the holiday paradises at sea and escaping the threat of Covid-19.

For those who can afford it, there is everything from water sports to yoga and fitness sessions, as well as the opportunity to spend quality time in a lonely bubble with friends and family.

“Since we came out of the first closure [last summer], the market is completely overtaking before it is locked up, ”said Antony Sheriff, CEO of Princess Yachts in Plymouth.

Sailing authors from all over Europe have a success story. Ferretti, a shipyard based in Forlí, northern Italy, delivered a record 56 ships in the first quarter and said it had “fantastic accelerations” challenged forecast orders.

Elsewhere, a record 208 superyachts have been purchased in the brokerage market this year for $ 17 billion through May 17, up from 131 a year earlier, according to Boat International’s luxury lifestyle.

Yacht chiefs also said the pandemic has prompted the rich to reevaluate how they spend their time and make the leap to buy the first boat or raise the prices of assets that add wealth.

“With coronavirus, people realized that‘ your life can change immediately ’. Their perception of life changed and they wanted to seize the moment, “said Marco Valle, CEO of Benetti Yachts, located in Viareggio, Tuscany.” It’s not a huge rise in the stock market. We were ready with the right products. ”

The cancellation of boat shows in fascinating places like Monaco has also not calmed demand, as the growth in online shopping has lost sales at fairs that typically attract buyers.

“In a year without a boat show, we’ve had the best orders ever made,” said Rose Damen, CEO of Damen Yachting, an order book that has grown by about 800 million euros in the last 12 months.

However, not everything has been ordinary sailing. The demands of social distance have made it impossible to recover the months of lost production that the shipyards closed last spring, while rising raw material costs that cannot be easily passed on to buyers.

Also, a bankruptcy chain in a well-established industry highlighted a difficult decade, with 20 shipyards producing 65% of the superchargers delivered last year, more than a third in 2010, according to the Superyacht Group.

Recent failures include Nobiskrug in northern Germany, owned by Privinvest of the French-Lebanese industry Iskandar Safa, which was handed over to the administration last month (April), and the failure of Italy’s Perini Navi in ​​February and Kleve in Norway last July.

In addition, manufacturers have to deal with the toughest customers in the world, as the rich face tough negotiations, in a few megaprojects, when incorrect budget calculations in an agreement can lead to profits.

“People expect it to be a very profitable business because your customers are billionaires, but it’s actually not a high-margin business and it can be a big risk,” Damen said.

Now, the task of the builders of the current 5,700 superyacht fleet – due to ships over 30m – is to keep customers in the post-pandemic market.

While Frank Knight’s Wealth Report estimates that the set of 520,000 individuals with an estimated wealth of more than $ 30 million is expected to grow, many wealthy customers may decide to spend money on other things after the crisis is over.

Industry executives also say they struggle with what they believe is an unjust stigma, that superyachts are games for the rich, widening disparities and contributing disproportionately to climate change.

A British activist, while seeing the pandemic on his sailboat in the Bahamas while taking calls for Zoom’s work, warned of social pressure.

“The quality of life and the quality of time is great.” But he reads his email signature in London to avoid the inconvenience of jealous colleagues or clients. “The green-eyed monster is alive,” he added.

Buyers are not usually the stereotypical oligarchy or party animals depicted in a popular TV show. Under the deck, yes.

“The owner of the archetypal yachts – black leather, martini in hand – is a bit of a mob. That’s gone, ”said Brendan O’Shannassy from a 100-foot boat that was skating in the southern waters of Bermuda.

Managers add that the jobs created by the industry are sometimes forgotten. These workers or artisans have often trained their skills in long apprenticeships or years of hard work.

“People love to talk about the skills, quality and craftsmanship needed to build a Bentley or Rolls-Royce. But not to make supercars,” said Martin Redmayne, president of the Superyacht Group.

However, Benetti Valley still expects to reduce demand and struggle to win and retain customers when the crisis is over.

“Our role as a manufacturer is to convince[customers]. . . not only is it a new sailboat, it also becomes a passion to stay in this life and pass it on to the children in the family. ”