Yachting has long been the vacation style of choice amongst Europe’s ultra-wealthy. The continent offers manageable sailing distances, pleasant waters, and an abundance of spectacular coastlines and gorgeous islands to moor at.
Plus, Europe dominates the luxury yacht market, with shipbuilders in Germany, Italy, and the Netherlands renowned for high-quality craftsmanship and technological innovation.
According to a new report published by Allied Market Research, the luxury yacht market size was valued at $5.8 billion in 2020 and is expected to reach $12.8 billion by 2031, reflecting a compound annual growth rate (CAGR) of 8% from 2022 to 2031. In terms of volume, Europe occupied around two-thirds of the market share in 2020.
Research by Yacht Sourcing found that emerging markets in Eastern Europe are contributing to this soaring sector growth. Croatia and Montenegro have invested heavily in yachting infrastructure and are incentivizing foreign yacht purchases.
So here’s where Europe’s senior executives and C-suite of the Fortune 500 will be vacationing on yachts this summer and how sailing trips are gaining favor as a way for luxury travelers to escape overcrowded hotels and destinations.
The trending yachting destinations of Europe’s most powerful
Southern Italy, the French Riviera, the Greek Aegean islands, and Turkey’s Turquoise Coast are some of Europe’s classic yachting hotspots. But according to Nick Hatfield, managing director of Sanlorenzo Yachts UK, the top destinations he is seeing for this year in the Mediterranean are the Balearic Islands. Mallorca is proving to be a particular favorite, thanks to its “unique blend of stunning coastlines, crystal clear water and vibrant cultural heritage,” he says.
Croatia is also on the rise, with more yachts being based along and visiting the Dalmatian coast. “Its popularity is growing as it is less crowded and more secluded than other destinations yet still offers the same, sought after azure waters and sunshine,” Hatfield says.
He adds that the stern to mooring (where yachts are lined up along a marina or quay) along the coastline “ensures guests can enjoy easy access to the shore and make the most of the yacht’s beach clubs and water toys.”
The annual calendar of Europe’s most glamorous events also influences the popularity of destinations. “Events like the Monaco Grand Prix or Cannes Film Festival cause fluctuations in where charters might visit, if they haven’t originated in these areas—that’s the beauty of a luxury yacht, you can visit more than one destination in a charter,” Hatfield says.
Luxury yachts are becoming an alternative to high-end hotels
As overtourism strains Europe’s vacation hotspots, the ultra high net worth (UHNW) are increasingly turning to yachts to escape the crowds, Hatfield says. “We’re certainly seeing yachting enjoy renewed momentum among individuals seeking alternatives to traditional holidays as charter experiences offer greater privacy, flexibility, and a sense of true freedom,” he explains.
This is “something which is becoming more important to the UHNW as many stunning destinations are becoming more accessible to a growing number of travellers, making them more crowded and less exclusive,” he adds.
“Events like the Monaco Grand Prix or Cannes Film Festival cause fluctuations in where charters might visit, if they haven’t originated in these areas—that’s the beauty of a luxury yacht, you can visit more than one destination in a charter.”
Nick Hatfield, managing director, Sanlorenzo Yachts UK
As such, yachts are increasingly favored as an alternative to high-end hotels: “No matter how exclusive a hotel is, you are still sharing it with others, whereas on a charter it is just you and your chosen guests and/or family with everything designed just for you,” Hatfield says.
Plus, today’s yachts can easily rival the amenities of even the most exclusive hotels, with spas, gyms, cinemas, beauty salons, helipads, wine cellars and hottubs.
The 278-feet Fountainhead, built for American billionaire and former CEO of the Sears retail group, Eddie Lampert, has an open-air basketball court. While on board the 258-feet Feadship Hampshire II, guests can play badminton, tennis, and football on the expansive foredeck, equipped with specially designed nets to prevent balls from going overboard. The yacht, owned by British billionaire and Ineos CEO Sir Jim Ratcliffe, also has a zipline and a squash court.
Onboard greenery is another superyacht luxury. The VSY Stella Maris features a glass-walled, vertical garden that rises up from the main deck to the level above, while the Benetti Ocean Paradise calms guests with a Zen garden in the main-deck foyer that is redesigned every day.
So as Europe’s hotspot destinations fill up, the ultra-wealthy are investing in yachting as the ultimate luxury of crowd-free, exclusive, personalized experiences.
This story was originally featured on Fortune.com
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