Everyone is buying boats during the pandemic, and it's causing a short supply
If you go to an island, it seems like there’s no coronavirus. And the boat itself is like an island that moves with you. Allowing you to explore new places in absolute freedom, whenever you want. You’re separated from other people and the stress of life.
This year, there has been a 30% increase in the demand for boats and yachts, and interest is steadily increasing. This news comes as thousands of people seek personal transportation vessels amid the global pandemic. This high demand is also boosting the need for attractive Online Marketplaces, a new era has begun.
Boats and yachts provide freedom, transport and security to those who still want the option to travel as the global tourism industry faces testing times. With other sectors related to travel and tourism crumbling, the international luxury yacht market has grown by 10.23% already in 2020.
Aside from the world’s cruise industry, which has been best with problems, everything seems to be going swimmingly for boat and yacht businesses. May 2020 saw the highest number of total new boat sales in over a decade, with June showing similar results for the personal watercraft and yacht industries.
Supply and Demand
Having access to a boat or yacht during a pandemic gives people the option to spend time traveling or living on the water. However, while an increase in demand is fantastic, it has a downside. Boats are selling fast, and hundreds of boat manufacturers have slowed down production due to economic restrictions. This means that people looking to purchase a new or second-hand boat may experience problems.
When the recent pandemic was at its height, some boat manufacturers were forced to slow down or stop production, which affected stock levels for boat dealers trying to replenish stock amid high demand. Although in some places manufacturers were able to return to production, new virus spikes in several counties may force the industry further into disarray.
The publicly listed maritime startup Boatim Inc. (OTCQB: BTIM) is quickly setting out to be one of the fastest- growing online marketplaces for buying, selling and trading boats and yachts. Here you will find not only great vessels, but also an excellent team full of maritime experts that can set you up with everything you need to start your next great adventure.
Riding the Wave
Before COVID-19 emerged on a global scale, the ‘Recreational Boat Market Global Outlook and Forecast’ predicted that the industry would grow by 11% between 2019-2025. Factors that were expected to contribute to this growth during the forecast period include:
- Advances in marine technology.
- Expected growth in the electric boat industry.
- Increased participation in European leisure boating activities.
Indeed, some leisure activities and competitions may have been postponed due to lockdowns and social restrictions. However, technology shows little signs of slowing down, innovation continues, and demand has undoubtedly outgrown any predictions that experts had before the pandemic spread across the world.
Despite the global uptick in business, the current economic climate has made it more challenging for people looking to purchase new yachts. This is because many high-net-worth individuals are uncertain about the future, and therefore less likely to make extravagant purchases.
However, the demand for used yachts, which have seen some drastic price drops, is soaring. Used units are selling well all over the world, particularly in countries like Hong Kong, Vietnam, Singapore, and Cambodia.
Sage Advice on Boat Buying in 2020
Those looking to purchase a boat in 2020 should be aware that many physical dealerships are experiencing difficulties procuring new and second-hand vessels. However, online dealerships such as Boatim have seen a massive spike in new and used boat and yacht listings.
As Boatim CMO Patrick Burkert stated:
We have seen a spike in demand from dealerships looking to publish ads on our website. Coupled with a increase in site traffic and listings, there has never been a more exciting time to provide access to amazing new and used yachts and boats.
He also recommends on the five steps to socially distanced boat shopping:
- Find the type of boat that suits your needs. This can be done by doing some online research about boat models, activities, equipment, and costs.
- Schedule an appointment to view the boat. This can be a digital or physical tour depending on restrictions in your area and the location of the ship you want to purchase.
- Inspect and test drive. Sea trials are still available in most areas as long as they are booked well in advance, and social restrictions are followed.
- Close the Deal and Pick up the Boat. Most of the paperwork can be signed off digitally. Then a safe home drop-off or pick up can be arranged.
- Service and Care. Arrange in advance for your new boat to be serviced and make sure that all equipment is in ship-shape condition before you embark on your new adventures.
Boatim provides an e-commerce platform that showcases an international inventory of luxury boats and yachts. Sellers can work with Boatim to create bespoke goods and services packages, which are advertised to a global network of maritime enthusiasts which is growing month-on-month.
Designed by boat lovers for boat lovers, Boatim’s founders are passionate about the maritime lifestyle and their growing community.
Lock Down Leisure Seekers
Many of the ‘nouveau-maritime’ admit that they’re only just starting to explore their sea legs thanks to the industries ability to prosper and provide freedom through the recent pandemic. In the U.S, lockdown leisure seekers are exploring the many canals, creeks, and rivers that intervene throughout the states.
The same can be said for Europe, where the yacht industry expects to see a 50% increase in the number of mega yachts docking in Turkey throughout 2020. In 2019, 3,500 foreign vessels docked in Turkish ports, mega yachts accounted for only 6% of them.
Maritime sector representatives have said that domestic demand for private yachts and boats is steadily increasing. This is because thousands of people across Europe are desperately trying to avoid air travel, hotels, and cruise ships as infection rates start to rise again.