A short look at the yachting industry from the outside would only reveal its
superficial traits, opulent luxury, astronomic sales prices and an insane economic
structure with exorbitant purchase orders. However parts of this are true, some
realities are often overlooked in the economics of yachting.
At first glance, it seems that the industry should have high profit margins due to this bespoke system and absence of inventory. When looking at financial data from shipyards worldwide, the numbers seem however to tell a different story. Due to the high prices of each project, turnaround is generally overwhelming but profits remain scarce. In 2014 UK-based yacht builder, Princess Yachts posted a turn around of 239.6 million pounds along with a loss of 11 million pounds. In 2015, the yacht builder has however recuperated with 1.7 million pounds of profits on a 239.7 million pounds turnaround.
Princess is doing quite well in the sector as several yacht builders based in Italy have been forced to shut down or have been bought out by external groups of investors. Cantieri di Pisa, previously part of the Baglietto group, was acquired by Mondo Marine. Baglietto itself was only saved in 2012 by Beniamino Gavio after the group posted losses of 25 million euros in 2008 and 105 million euros in 2009. Such outcomes for shipyards are not only found in Italy. In 2014, it was announced that Dutch-based, Oceanco would purchase the Turkish shipyard, Proteksan Turquoise whose rise was cut short by the infamous sinking of the 60m Yogi in Greece in 2012.
Perhaps, with a new focus for the industry on laser-focus margin control and operational execution, a new pattern has emerged within yachting. Iconic US yacht builder, Palmer Johnson, has announced the closing of its Sturgeon Bay facility to relocate production to Northern Europe stating that the European market was stronger for its yachts. Arguably, shipyards that have done the most well in the last five years are based in the golden mine of the yachting sector, Northern Europe. Amels, daughter-company of the Damen Group, has sold 28 models of its Limited Edition series with 8 more under way and 1,000 people working at the yard. Lurssen has been responsible for the launch of behemoths of the yachting world such as Azzam, Topaz or most recently Dilbar. Feadship, a cooperative venture between Royal Van Lent, De Vries shipyards and engineering company De Voogt has launched its flagship, the 101m Symphony earlier this year.
Yacht construction is however not the only large sector of activity in the market. The service industry that has developed around yachting is substantial and mostly responsible for its marketing and attracting new clients. The global yacht charter market was valued at 35 billion dollars in 2014 and is expected to reach 51 billion dollars by 2020 according to Research and Markets. Knowing that typical agency commissions on a sale are about 10 to 15 per cent, revenue for charter and brokerage agencies looks impressive, much like the high turn around in shipyards. However, one of the top yacht charter/brokerage agencies, Camper & Nicholsons international has been sold to Colosseum investments for 1 million euros after the liquidation of its parent company Rodriguez Group. Before delisting from the stock exchange in 2012, Y.CO, another major player in yacht brokerage, has posted profits of 14,650 pounds for the year of 2011. On the other hand, Merle Wood, head of Merlewood & Associates, one of the most successful yet discrete US brokerage agencies reportedly owns a 150-foot yacht himself.
Yvan Grubsky
For starters, we must state that purchasing a yacht is not a rational decision.
Factors involved in the decision making process range from unquantifiable
personal taste to ego and status. With maintenance costs orbiting around 10% of
the initial purchase price, a yacht can hardly be seen as an investment in the post subprime
crisis era. Indeed, even though the charter market has seen substantial
growth in the last five years due to a large amount of owners selling their yachts to
get rid of annual costs and a recovery in global markets, chartering is often seen as
a way to recoup costs rather than a way to profit. It therefore looks like a yacht is a
recreational, lifestyle purchase which makes it highly dependent on the state of the
market. Hence, appearing as strong, powerful brands is essential to companies
trying to sell to those high net worth clients.
Guillaume Ettori
At first glance, it seems that the industry should have high profit margins due to this bespoke system and absence of inventory. When looking at financial data from shipyards worldwide, the numbers seem however to tell a different story. Due to the high prices of each project, turnaround is generally overwhelming but profits remain scarce. In 2014 UK-based yacht builder, Princess Yachts posted a turn around of 239.6 million pounds along with a loss of 11 million pounds. In 2015, the yacht builder has however recuperated with 1.7 million pounds of profits on a 239.7 million pounds turnaround.
Princess is doing quite well in the sector as several yacht builders based in Italy have been forced to shut down or have been bought out by external groups of investors. Cantieri di Pisa, previously part of the Baglietto group, was acquired by Mondo Marine. Baglietto itself was only saved in 2012 by Beniamino Gavio after the group posted losses of 25 million euros in 2008 and 105 million euros in 2009. Such outcomes for shipyards are not only found in Italy. In 2014, it was announced that Dutch-based, Oceanco would purchase the Turkish shipyard, Proteksan Turquoise whose rise was cut short by the infamous sinking of the 60m Yogi in Greece in 2012.
Perhaps, with a new focus for the industry on laser-focus margin control and operational execution, a new pattern has emerged within yachting. Iconic US yacht builder, Palmer Johnson, has announced the closing of its Sturgeon Bay facility to relocate production to Northern Europe stating that the European market was stronger for its yachts. Arguably, shipyards that have done the most well in the last five years are based in the golden mine of the yachting sector, Northern Europe. Amels, daughter-company of the Damen Group, has sold 28 models of its Limited Edition series with 8 more under way and 1,000 people working at the yard. Lurssen has been responsible for the launch of behemoths of the yachting world such as Azzam, Topaz or most recently Dilbar. Feadship, a cooperative venture between Royal Van Lent, De Vries shipyards and engineering company De Voogt has launched its flagship, the 101m Symphony earlier this year.
Yacht construction is however not the only large sector of activity in the market. The service industry that has developed around yachting is substantial and mostly responsible for its marketing and attracting new clients. The global yacht charter market was valued at 35 billion dollars in 2014 and is expected to reach 51 billion dollars by 2020 according to Research and Markets. Knowing that typical agency commissions on a sale are about 10 to 15 per cent, revenue for charter and brokerage agencies looks impressive, much like the high turn around in shipyards. However, one of the top yacht charter/brokerage agencies, Camper & Nicholsons international has been sold to Colosseum investments for 1 million euros after the liquidation of its parent company Rodriguez Group. Before delisting from the stock exchange in 2012, Y.CO, another major player in yacht brokerage, has posted profits of 14,650 pounds for the year of 2011. On the other hand, Merle Wood, head of Merlewood & Associates, one of the most successful yet discrete US brokerage agencies reportedly owns a 150-foot yacht himself.
The 72m Albatross has been sold. The yacht was put on the market by John Hint by Burgess in collaboration with Luc Khaldoun of KAYZ Marine in September 2022. The buyer was introduced by Damon Smallwood from Superyacht Sales and Charter. The 72 meter superyacht was launched in 2016 by Delta Marine and it’s the first time that she was listed for sale for the time. Albatross features the exterior by Espen Oeino International, her naval architecture was made by Delta Design Group. Her inner spaces were designed by French studio Zuretti Interior Design. The spacious main saloon has two lounge areas, with a coffee table and sofas, and a dining area designed for 16 guests. Albatross features a special deck for entertainment; a spacious sun deck, swimming platform suitable for fishing and a fully-equipped gym. Being a true explorer, she has a range of 7,400 nautical miles, can hold five tenders and also has a touch-and-go helipad. The superyacht can welcome 12 guests in six well-appointed cabins. The owner suite is situated on the upper deck and has its own private terrace, hot tub and lounge area. Albatross is equipped with twin Caterpillar 2,575 horsepower diesel engines and can reach a maximum speed of 16 knots and cruise at 12.6 knots. Albatross' last known asking price was USD95,000,000.Credits: Yacht Harbour
December 6, 2022
The motor yacht Viktoriia, the first Tecnomar EVO 120 to land on UAE territory, reached Dubai International Marine Club, which is located in the heart of the Mina Seyahi district. The debut of this motor yacht in the south of the Arabian Peninsula represents an important milestone for the Group, in line with its commercial expansion plan in the Arabian Gulf area, already launched at the beginning of the season with the partnership with Blackorange Superyacht Experts, a full-service yacht brokerage company, and with the presence of the Tecnomar brand in the Automobili Lamborghini floating pop-up lounge in Doha, Qatar."We are thrilled with the commercial response our yachts are getting in this region. Our presence in the Middle East is establishing itself just as quickly as in the United States," commented Giovanni Costantino, Founder & CEO of The Italian Sea Group.Giovanni Costantino, Founder & CEO of The Italian Sea GroupTecnomar EVO 120 aluminum hull exterior lines are inspired by automotive design. The main deck houses an outdoor lounge area and dining room, elegantly separated from the living area, while the sun deck features a hot tub and wheelhouse that, although fully integrated into the streamlined design of the sides, ensures excellent visibility.Essential and sophisticated luxury characterize the lower deck, with a full-beam owner's cabin, a VIP cabin, and two guest cabins. The interior design communicates with the exterior lines in an organic way: sinuous, curved forms blend skillfully with bolder, sculpted ones. The crew area is located in the bow while the stern houses the storage area for toys and tenders.The Italian Sea Group is a global operator in the luxury yachting industry, listed on Euronext Milan (“EXM”) and active in the construction and refit of motor yachts and sailing yachts up to 140 meters. The Company, led by Italian entrepreneur Giovanni Costantino, operates on the market with the brands Admiral, renown for elegant and prestigious yachts, Tecnomar, Perini Navi, and Picchiotti; the Company has a business unit, NCA Refit, that manages the maintenance and refit services for yachts and mega yachts with a length over 60 meters. Credits: The Italian Sea Group
December 6, 2022
Arcadia Yachts unveiled its new project – the A96. A96 has been designed not only to be the ultimate representation of wellbeing on the water in the 90 to 100-foot segment, but also to offer three pluses in terms of volume, top speed (up to 24 knots with the optional motorization) and usable surface area totalling more than 400 sq. m. Over 29 meters long and almost 8 meters in the beam, the yacht offers daytime living spaces that can be adapted to satisfy every need and a night area with five cabins. The propulsion system with four Volvo Penta IPS 1.200 units delivers maneuverability, long range, low emissions and acoustic comfort. Upper LoungeThe shallow draught and the limited size of the engines, which allowed the engine room in compliance with the increasingly stringent emission regulations standards, make A96 a yacht that can cruise in any waters.Main saloonThe settings establish an ongoing dialogue between interior and exterior, with huge transparent sliding doors and windows that can be opened to let nature in, quite literally as a beloved guest. Master cabinThe spaces are flooded with natural light and immersed in the sounds and scents of the sea, becoming at one with the surroundings.Upper LoungeThe interior is made by Igor Lobanov, who was asked by the yard to decorate the settings with natural and where possible eco-friendly materials, opting for a design with soft lines and furnishings that are pleasing to the touch. Upper BowThe optional silent mode system rated over 100kWh, powered in part by the solar panels, provides up to 8–9 hours in silent mode on board at night, while the cabins offer guests the possibility of setting the temperature and taking advantage of a quiet-running air-conditioning solution that delivers a uniform temperature in each individual area, ensuring a good night’s sleep. Stern ViewAdding to cruising comfort are CMC Marine’s latest generation of environmentally friendly Waveless Stab40 stabilizer fins.A96 will premiere at the 2023 Cannes Yachting Festival.Arcadia Yachts is based in Naples, Italy. Since 2008, Arcadia Yachts has been building semi-custom luxury composite yachts and has succeeded in perfectly integrating artisanal craftsmanship, modern technologies, attention to detail and to the surrounding environment. The Arcadia Yachts fleet has included two ranges since September 2016. The shipyard’s first and most characterizing range is the A range, which includes 4 models (A85, A85s, A105 and A115). The Sherpa range has a new model, the 24m Sherpa XL, which was launched at the 2019 Cannes Yachting Festival. The new model, A96, will debut at 2023 Cannes Yachting Festival.Credits: Arcadia Yachts
December 6, 2022
Azimut’s new Low Emission Yacht, presented at Cannes Yachting Festival 2022, offers all the features of a superyacht in a length of 26 meters and introduces two novelties: the Deck 2 Deck™ terrace and the first Large POD propulsion system. The market rewards innovations in style and technology, with 22 units sold in the first two months since the launch.The Grande 26M, inspired by the desire to amaze again by offering solutions designed for superyachts on a 26-meter boat and introducing an innovative propulsion system to reduce fuel consumption and CO2 emissions by 20%. Azimut has been investing in research for over ten years to develop innovative solutions that reduce the environmental impact of its boats and was the first brand to believe in POD propulsion systems. Drawing on its extensive experience, the Yard developed the new Large POD 4600 propulsion system for the Grande 26M in partnership with ZF. The system, combined with a 30% lighter superstructure achieved through the extensive use of carbon fiber, delivers 20% lower fuel consumption at the most frequent speeds. Main saloonThe PODs pivot, eliminating the need for a rudder and the associated drag to achieve unrivaled performance for maneuvering and reaching high speeds, and the Grande 26M accelerates effortlessly to 28 knots. CockpitCompared with the POD systems already available on the market, the new ZF POD 4600 system was developed to increase efficiency on larger boats for the first time, with top speeds between 20 and 30 knots. An additional benefit of the system is higher torque at low speeds for easier maneuvering. External ViewGrande 26M has a five cabins configuration, including the full-beam owner’s suite on the main deck, and completely separated guest and crew flows. She also features the huge flybridge – 50 sq. m all on the same level. Owner SuiteThe Deck2Deck™ Terrace, the first of its kind created using a transom extension system. The Deck2Deck™ Terrace is formed by raising the teak-clad garage door to expand the size of the cockpit to over 18 sq. m. The walkaround table, when extended, seats up to eight guests in an al fresco dining room with a view out over the water. FlybridgeThe interior was drawn by Achille Salvagni and expresses his vision of organic architecture, in which the elements created by the designer are in complete harmony with the natural environment. Flybridge“The project was driven by the enthusiasm to create a compact superyacht, with five cabins, an enormous flybridge and a larger cockpit than usual for the category, which we wanted to extend to give the yacht a fully-fledged dining area overlooking the water,” comments Alberto Mancini, the designer of the Grande 26M’s exteriors.Azimut Yachts is an Azimut Benetti Group brand. With its Atlantis, Magellano Flybridge, S, Verve and Grande collections, Azimut offers the widest range of 10 to 40 meters.Credits: Azimut Yachts
December 5, 2022
Nautor Swan appointed Hong Kong based Asiamarine as its new agent for Hong Kong, Singapore, Thailand, Philippines and Vietnam as a part of strategy to reinforce the Asia Pacific market. Asiamarine, founded in 2012 in Hong Kong by Eric Noyel, has been a fast-growing company and has acquired the representation of many brands over the years and played a significant role in the development of yachting in Asia.Eric Noyel, Founder & CEO of Asiamarine, said “we are absolutely delighted to be associated with Nautor Swan both for sailing and motor yachts. Nautor Swan is one of the most renowned of all the premier boating brands and known worldwide for performance, quality, elegance, and innovative design. Asiamarine is proud to be an integral part of this, in Asia. “ Vicsail – already representing Nautor Swan sailing yachts in Australia and New Zealand – is broadening its offer adding Swan Shadow and Swan OverShadow to its portfolio. Vicsail, founded in 1983 and agent for Nautor Swan sailing yachts since 2010, has now become the representative for Swan Shadow and Swan OverShadow in Australia and New Zealand, confirming another essential presence in the APAC Region.“Nautor Swan has always been a very highly respected yacht company in our market and we are thrilled to also represent her motor boat division to develop and grow Nautor Swan brand awareness in our region,” says Brendan Hunt, Vicsail founder and director.Swan Shadow"We believe the Asian territory offers great opportunities to Nautor Swan, for all the lines of the fleet, either for sailing yachts as well as for power models, like the Swan Shadow and Swan OverShadow and I look forward to assisting them in this important mission," said Olivier Decamps, Nautor Swan Asia Pacific Regional Director.Nautor’s Swan was founded in 1966 in Pietarsaari, Finland. The builder entered the superyacht market in 1999. Since then, the yard has continued building high-performance sailing yachts in three different lines; ClubSwan, Swan Yachts and Maxi Swan Yachts. Credits: Nautor’s Swan; Unsplash
December 5, 2022