GraniteStater
Veteran Member
Thought I'd share this article from Barrons. I copied and pasted it below in case you don't subscribe.
https://www.barrons.com/articles/bo...E4BA55144CAA0A4C98A5%40AdobeOrg|TS=1596969162
This summer, Americans have been considering new ways to travel and vacation. Chief among options that tick pandemic-related safety boxes is recreational boating.
Boating offers a way to enjoy the outdoors while avoiding the crowds and interactions involved with conventional travel. All of this helps to explain why, in recent months, dealers from coast to coast have reported record interest and robust sales, with a huge increase in first-time customers.
The Chicago-based National Marine Manufacturers Association (NMMA), the leading trade association representing boat, marine engine, and accessory manufacturers, reported that total new U.S. recreational boat sales in May were the highest in a single month since 2007, with increases across all segments. Among the categories with the highest growth were personal watercraft, saltwater fishing boats, and jet boats, which combined account for 41% of total new-boat sales.
“Amid ever-changing state orders, social-distancing guidelines, and the new normal, it is clear that there will be lasting impacts to the way we previously carried out our daily lives. This new reality also applies to how we vacation, relax, and blow off steam,” says NMMA President, Frank Hugelmeyer. “And in 2020, a growing number of people are turning to a longstanding American pastime—recreational boating,”
NMMA data shows total new boat sales were up 59% in May compared to April, and up 19% compared to May 2019. Personal watercraft sales in June set a record monthly high for the second consecutive month, and were up 41% year-over-year, having fully recovered from pandemic-related losses in March and April. Yacht sales—which the NMMA defines as boats 33 feet in length or longer—increased 51% in May, compared to April, according to the latest numbers available.
“The new data from the NMMA reinforces what we’ve been hearing from dealers and manufacturers from across the country–record interest and robust sales this summer across all boat segments as Americans invest in new ways to escape and vacation in the social distancing era” Hugelmeyer says. “Many dealers are also reporting first-time boat buyers.”
Barrett Canfield, president of South Coast Yachts, San Diego and Newport Beach, Calif., a dealer that also offers charter placement services, reports a sizable increase in customer traffic. He says that his business is up about 45% year-over-year for May and June.
Yacht charters have also grown in popularity. “The chartering is mostly limited to households and families here in San Diego, but our charter company colleagues are saying the same thing,” Canfield says. “They are extremely busy and all of their boats are booking out well in advance.”
At Denison Yachting in Fort Lauderdale, Fla., a recent first-time customer was Dr. Gabe Gambardella, a podiatric foot and ankle surgeon from Branford, Conn.
“My wife and I had been considering a boat purchase for a few years,” he says. “Having never been a boat owner, in addition to having four daughters, I wanted a boat that can be used as a day cruiser while also being large enough with amenities that would provide us with the comfort to spend a long weekend in areas around Long Island Sound.”
In March, Gambardella bought a Beneteau GT 38, which “with everything said and done, [cost in the] ballpark of a quarter of a million dollars. In terms of the type of boat, it can be considered a motor yacht, or a sportscruiser.”
Deals Abound
One aspect of the pandemic’s effects on the marketplace has been a raft of abnormal discounts, with scores of sellers looking to unload their boats as fast as possible. Jonathan Janikies, an executive based near the yachting mecca of Newport, R.I., couldn’t refuse one such deal when he made a recent purchase through Denison Yachting.
“I purchased a 2017 Sunseeker Predator out of the Fort Lauderdale area in March,” Janikies says. “I have been out of boating for a few years but decided to purchase now because it is an easy way to get out during my downtimes in a safe and socially distant manner.”
One of the biggest players in recreational boating, the Kennesaw, Ga.-based Yamaha WaterCraft Group currently holds around a 42% share of the domestic personal watercraft market. At the start of the pandemic, the company began to hear from dealers that they were busier than ever, with many first-time buyers contacting them looking for something new to do outdoors.
Denison Yachting has seen lots of new customers for their range of boats.
Ryan Alexander
“They were willing to buy any model, any color, even used product, whatever they could get their hands on,” says Bryan Seti, GM, Yamaha WaterCraft Group. “We immediately worked with our dealer network to help them support contactless transactions, and even though our factories were shut down for a period of time, we were soon up and running and the product began shipping to fill inventory. And it was gobbled up as fast as we could produce it.”
Yamaha WaterCraft Group conducted an internal study specific to the pandemic and found that around a third of first-time sport boat buyers indicated their purchase was influenced by Covid-19, with the first-time buyer rate doubling between April/May and June. Among those buyers influenced by Covid-19, the ability to social distance while spending time with friends/family and on-water activities acting as alternatives to other plans were the most frequently selected reasons across product types.
Superyacht Sales
Executives in the superyacht industry also have reported similar pandemic-related spikes.
“In July, we had more than double the amount of sales we had in the same month last year, and our strong pipeline signals continued interest and activity for the coming months,” says Daniel Ziriakus, President & COO of Northrop & Johnson, a superyacht marketing firm with locations in the world’s most prominent yachting hubs, such as Antibes, Newport, R.I., Newport Beach, Calif,, and Palma de Mallorca.
“On the charter side, we’ve seen a notable spike in inquiries from first-timers during the pandemic, with overall inquiries increasing 113% compared to what we were seeing at the same time last year,” Ziriakus says.
He adds, “with many travel restrictions still in place, for this summer at least, we’re seeing clients booking charters closer to home, with Europeans mostly booking in the Mediterranean and Americans booking charters in New England, The Bahamas and the Caribbean.”
With more than 170 employees in 18 offices, Fraser—the largest luxury yacht service provider in the world—offered a look at the impact of the pandemic on its global operations.
“What we are seeing now is people looking for more certainty in their lives. They want to take more control if they can,” says Mark Duncan, Fraser’s director of marketing and business development. “Those who have been dithering over whether to buy a yacht over the last few years are now deciding to take action and go for it. They want that level of control over their quality time and how safely and pleasurably they can enjoy it.”
https://www.barrons.com/articles/bo...E4BA55144CAA0A4C98A5%40AdobeOrg|TS=1596969162
This summer, Americans have been considering new ways to travel and vacation. Chief among options that tick pandemic-related safety boxes is recreational boating.
Boating offers a way to enjoy the outdoors while avoiding the crowds and interactions involved with conventional travel. All of this helps to explain why, in recent months, dealers from coast to coast have reported record interest and robust sales, with a huge increase in first-time customers.
The Chicago-based National Marine Manufacturers Association (NMMA), the leading trade association representing boat, marine engine, and accessory manufacturers, reported that total new U.S. recreational boat sales in May were the highest in a single month since 2007, with increases across all segments. Among the categories with the highest growth were personal watercraft, saltwater fishing boats, and jet boats, which combined account for 41% of total new-boat sales.
“Amid ever-changing state orders, social-distancing guidelines, and the new normal, it is clear that there will be lasting impacts to the way we previously carried out our daily lives. This new reality also applies to how we vacation, relax, and blow off steam,” says NMMA President, Frank Hugelmeyer. “And in 2020, a growing number of people are turning to a longstanding American pastime—recreational boating,”
NMMA data shows total new boat sales were up 59% in May compared to April, and up 19% compared to May 2019. Personal watercraft sales in June set a record monthly high for the second consecutive month, and were up 41% year-over-year, having fully recovered from pandemic-related losses in March and April. Yacht sales—which the NMMA defines as boats 33 feet in length or longer—increased 51% in May, compared to April, according to the latest numbers available.
“The new data from the NMMA reinforces what we’ve been hearing from dealers and manufacturers from across the country–record interest and robust sales this summer across all boat segments as Americans invest in new ways to escape and vacation in the social distancing era” Hugelmeyer says. “Many dealers are also reporting first-time boat buyers.”
Barrett Canfield, president of South Coast Yachts, San Diego and Newport Beach, Calif., a dealer that also offers charter placement services, reports a sizable increase in customer traffic. He says that his business is up about 45% year-over-year for May and June.
Yacht charters have also grown in popularity. “The chartering is mostly limited to households and families here in San Diego, but our charter company colleagues are saying the same thing,” Canfield says. “They are extremely busy and all of their boats are booking out well in advance.”
At Denison Yachting in Fort Lauderdale, Fla., a recent first-time customer was Dr. Gabe Gambardella, a podiatric foot and ankle surgeon from Branford, Conn.
“My wife and I had been considering a boat purchase for a few years,” he says. “Having never been a boat owner, in addition to having four daughters, I wanted a boat that can be used as a day cruiser while also being large enough with amenities that would provide us with the comfort to spend a long weekend in areas around Long Island Sound.”
In March, Gambardella bought a Beneteau GT 38, which “with everything said and done, [cost in the] ballpark of a quarter of a million dollars. In terms of the type of boat, it can be considered a motor yacht, or a sportscruiser.”
Deals Abound
One aspect of the pandemic’s effects on the marketplace has been a raft of abnormal discounts, with scores of sellers looking to unload their boats as fast as possible. Jonathan Janikies, an executive based near the yachting mecca of Newport, R.I., couldn’t refuse one such deal when he made a recent purchase through Denison Yachting.
“I purchased a 2017 Sunseeker Predator out of the Fort Lauderdale area in March,” Janikies says. “I have been out of boating for a few years but decided to purchase now because it is an easy way to get out during my downtimes in a safe and socially distant manner.”
One of the biggest players in recreational boating, the Kennesaw, Ga.-based Yamaha WaterCraft Group currently holds around a 42% share of the domestic personal watercraft market. At the start of the pandemic, the company began to hear from dealers that they were busier than ever, with many first-time buyers contacting them looking for something new to do outdoors.
Denison Yachting has seen lots of new customers for their range of boats.
Ryan Alexander
“They were willing to buy any model, any color, even used product, whatever they could get their hands on,” says Bryan Seti, GM, Yamaha WaterCraft Group. “We immediately worked with our dealer network to help them support contactless transactions, and even though our factories were shut down for a period of time, we were soon up and running and the product began shipping to fill inventory. And it was gobbled up as fast as we could produce it.”
Yamaha WaterCraft Group conducted an internal study specific to the pandemic and found that around a third of first-time sport boat buyers indicated their purchase was influenced by Covid-19, with the first-time buyer rate doubling between April/May and June. Among those buyers influenced by Covid-19, the ability to social distance while spending time with friends/family and on-water activities acting as alternatives to other plans were the most frequently selected reasons across product types.
Superyacht Sales
Executives in the superyacht industry also have reported similar pandemic-related spikes.
“In July, we had more than double the amount of sales we had in the same month last year, and our strong pipeline signals continued interest and activity for the coming months,” says Daniel Ziriakus, President & COO of Northrop & Johnson, a superyacht marketing firm with locations in the world’s most prominent yachting hubs, such as Antibes, Newport, R.I., Newport Beach, Calif,, and Palma de Mallorca.
“On the charter side, we’ve seen a notable spike in inquiries from first-timers during the pandemic, with overall inquiries increasing 113% compared to what we were seeing at the same time last year,” Ziriakus says.
He adds, “with many travel restrictions still in place, for this summer at least, we’re seeing clients booking charters closer to home, with Europeans mostly booking in the Mediterranean and Americans booking charters in New England, The Bahamas and the Caribbean.”
With more than 170 employees in 18 offices, Fraser—the largest luxury yacht service provider in the world—offered a look at the impact of the pandemic on its global operations.
“What we are seeing now is people looking for more certainty in their lives. They want to take more control if they can,” says Mark Duncan, Fraser’s director of marketing and business development. “Those who have been dithering over whether to buy a yacht over the last few years are now deciding to take action and go for it. They want that level of control over their quality time and how safely and pleasurably they can enjoy it.”
