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In order to be able to do successful business, it is important to inform yourself regularly about the latest developments in the market. If a business owner has a deep understanding of the current situation of the market and can position himself as an expert, he has a good chance of reacting to developments in the market and generating more sales with good ideas. Knowledge is power – that is why we have created the WavySys Charter News. In this series you will learn everything you need to know as a charterer. We start with a market analysis:
The recreational boating market is estimated to have a market value of roughly $30 billion by the year
2022. About 20% of it, $6 billion, will be in the charter market. So the business idea of renting out boats tackles a growing
market with less people buying boats themselves (roughly 6 million boat owners in Europe), but more
people wanting to use boats for their activities (roughly 36 million boat users in Europe).
In order to find the best markets to work in it is important to analyse the market volume or purchasing
power and the development of those markets as well as the competition.
Getting away from the stress at work, seeing more of the world and to make new experiences, all through vacations, has become more important to those people in the world, who can afford it. Giving people those experiences can lead to substantial revenue, however not all people are the same and the amount of money spent on vacations is very different among continents, regions and countries in the world. Therefore, not all markets have the same potential for business ideas in the tourism sector.
In general, more money can be earned in markets with a high volume and high purchasing power. Obviously, there is another restriction for tourism markets to be identified as potential markets. Yacht renting can only be done in countries with a sea coast or suitable waterways. Not surprisingly, due to the largest number of citizens worldwide, the biggest tourism market is situated in China, followed by the United States and the three big European economies in Germany, France and Great Britain.
Figure 1.: Countries with the largest international tourism expenditure 2017 (in billion USD) / Statista, orginally from: UNWTO Tourism Highlights 2018, page 14, August 2018.
In contrast to the tourism market in general, the yacht rental market is concentrated mainly in the Mediterranean Sea, especially in Croatia. Of the estimated 6.58 billion € overall, it is estimated, that 41% of the market value will be gained in the Mediterranean Sea. Furthermore, one third of the overall market in the Mediterranean will be situated in Croatia.
Figure 2: Charter Market Revenue Overview / Study on the competitiveness of the recreational boating sector, ESCIP
Globally the growth rate on the yacht rental market is at about 6%. However, the market with the largest international tourism expenditure, China, is also the market with the highest growth rate of about 15% from 2016 to 2017. It is expected, that the boat rental market in the Asia-Pacific region will grow by 8% per year.
In cooperation with a group of students of the HWR Berlin, WavySys has exclusively compiled the following tables, which show who is still operating in the yacht charter market besides WavySys
Yacht Booking Systems
MMK Systems is a company with over 16 years of experience in the yacht charter market and more specifically, offering IT solutions for charters. It is based in Zagreb, Croatia and had founding equity of around 106,000 EUR. The objective set by the company is to create a complete charter management and online booking solution that is efficient and cost effective at the same time. The company mission is stated as “making yacht charter business easier to handle” and promise deep understanding of the industry, innovative solutions and excellent support. MMK Systems has around 23 employees, in 4 main departments – sales, marketing, support and development. The team is comprised of roughly equal portions of men and women, lacking some international diversity. The company states that it has 520 charter operator users, 2800 agency users, 8000 boats in its directory and 350 destinations.
Sedna System has over 15 years of experience in the yacht management field. The company operates from Trets, France, and had founding equity of 36,020 EUR. The company states that it is the “unique advanced real-time yacht management system in the worldwide market, used by most of fleet operators and gathering the largest brokers worldwide network” and has as mission statement “In the best, we trust!”. Sedna System has around 14 employees, divided in two departments – management and IT, having a fine diversity. The company allegedly has 354 charter operator users, 8873 broker/agency users, 4900 boats in its directory and 55 locations.
Andromedant is the company behind Andronautic, based in Palma, Spain. It presents itself as an innovator in the nautical, tours and activities technology and has the mission statement: “to help you manage your business in an efficient way through technology”. At the same time, no information about its structure, team or history are available online. The company does not have social media profiles and relies only on its website. No data is available on the number of boats in its directory or agencies and charters using their product. Nevertheless, it is mentioned that through agreement with other platforms, Andronautic is able to give agencies access to around 3000 charters. The product portfolio is divided in three sections – nautical software, tours and activities software and website design.
YachtSys is a company part of the YachtBooker Holding which consists of the YachtBooker platform, YachtCheck rating provider – charter quality classification and reviewing, and YachtSys its reservation and boat management system. YachtBooker was founded 16 years ago, has 3-7 employees and is located in Munich, Germany. YachtSys’ products are divided in three groups: Charter Fleet Manager, Charter Broker and YachtSys Charter Data API and Charter Widgets. There is a basic and advanced option for the Fleet Manager, whereas for the Broker solutions there is a free option on top. YachtSys Fleet Manager offers company, base, yacht and accounting administration, website widget, customer
database, planning tool, price optimization tool, integration with YachtCheck, CRM, document handling and voucher creation among others. The Broker solution gives access to over 4500 boats through YachtFinder, YachtMap – boat location mapper and distance calculator, bargaining tool, CRM, document handling, website widget, CMS and website creation, as well as the Charter Data API.
NauSys is a booking system provider based in Zagreb, Croatia. The company has 10 years of experience and around 7-10 employees. NauSys states that it has 505 charter operator users, over 4000 broker/agency users and more than 5100 boats in 26 countries. The company offers three portals, namely for charters, agencies and boat owners. The latter is designed for owners and investors whose boats are managed by charters. The agency portal is available free of charge and promises high level of automation that minimizes the need for manual correspondence between agency and charter. NauSys’ offering is very general and no information on specific modules and features is openly accessible. However, it is the booking system of choice for charters like Pitter Yachting, as well as for Navigare.
Yacht Booking Platforms
Click&Boat was founded in 2013 in Paris, France. It is backed by OLMA Private Equity Fund and hasreceived around 5.7M EUR in funding so far. The company came into existence with the idea to save boat owners the costs for maintaining a boat docked for long periods and at the same time to ease up the process of boat hiring for passionate sailors30. The company currently names itself the largest marketplace for boat rentals in Europe. It has over 30,000 boats listed on its platform, over 200,000 registered users and over 40M EUR earned by boat owners. Click&Boat has 57 employees and good diversity. The company operates online and additionally has applications for both Android and iOS, as well as a platform for Yacht managers. The latter helps owners manage boats remotely with the help of experienced yacht managers.
Boatsetter was founded in 2012 in Florida, USA. It is backed by Great Oaks Venture Capital, Stanford University DAPER Fund and others and has received around 17M USD in funding so far. The company has defined as its goal “to bridge the boating world in a way it has never been connected before”. The company currently names itself the number one oat rental community in the world. It currently has over 4,000 boats listed on its platform, over 2,300 captains and over 18,00 reviews. The company claims that their fleet is exclusively privately owned. Boatsetter has 47 employees and could benefit from a more diverse team. The company operates online and additionally has applications for both Android and iOS, as well as it runs a platform for Captains. The latter’s goal is to source experienced captains that can run the boats in cases when the customer does not have a license or wants to enjoy a holiday without responsibilities.
Zizoo was founded in 2014 in Berlin, Germany. It is backed by Revo Capital, Axel Springer Digital Ventures and others and has received around 10.1M USD in funding so far. The company has defined as its goal “make boat holidays accessible and easy to book for everyone”. It has over 21,000 boats listed on its platform, works with 1,500 charter companies in 30 countries and has over 25,000reviews. Zizoo has 60 employees and a diverse team spread around three offices in Germany, Austria and Croatia. The company operates online through a website and does not have a mobile application at the time of writing this report.
Getmyboat was founded in 2013 in San Francisco, USA. It is backed by Yanmar Marine International and has received around 11.5M USD in funding so far. The company has defined as its goal “to improve access to boating for everyone”36. The company currently names itself the largest marketplace for boat rentals and water experiences worldwide. It has over 130,000 boats listed on its platform, over 100,000 downloads of its app and over 2M searches in the last year. Getmyboat has 31 employees many of whom working remotely and good diversity of its team.
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