Don't miss the boat: the new era of yacht ownership is here

There are some significant shifts in consumer behavior when it comes to ownership overall.  Not just within yachting, but in general, everyone seems more down-to-share lately. How we consume goods and services in 2022 swayed toward the benefits of fractionalization and the sharing economy. Companies like Uber, Airbnb, WheelUp, and the likes have proven the demand for this. The NFT market, and its boom in 2021, was also built on the premise of fractionalization. Within NFTs, fractionalization manifested in the form of art owners, business stakeholders, rights to intellectual property, and more… but that’s a discussion for another post. 

The yachting industry as a whole is undergoing some serious remodeling. From innovative ship-building concepts to the increase in cutting-edge vessel management software to the relocation of preferred cruising destinations — things are shaking up. So what about yacht ownership itself? Can we replicate the same benefits that we are seeing in other facets of the economy? What will it take for this elite niche to become open to sharing what is, arguably, some of the most expensive assets on the planet?  

Traditionally the yachting industry has been a closed, protected, and secret world of its own. But perhaps Millennials and Gen Z, who have grown up accustomed to this new sharing economy, could be the key to changing things. 

Yachting co-ownership models are here and are already beginning to disrupt the market. Last year, Sunseeker launched its Meros co-ownership platform while competitor, Princess Yachts, launched its YachtQuarters program. Most recently, the Swiss management company, Floating Life, announced its Dream FL42, a 138ft yacht to be built at CCN Italian shipyard in 2023. SeaNet Europe also pioneered a co-ownership model, specializing in tailored ownership solutions for clients. At MYS last month, a new company, YachtingOne, shared its insights into the unique combination of tokenization and an innovative new time-sharing model for yachting. GetMyBoat and its competitors are introducing two-way marketplaces to the marine world. 

So why are people all of a sudden more open to sharing their multi-million-dollar yachts? What is happening to charter? Taking a closer look at things, the benefits of these new yachting options may just outweigh the traditional desire for autonomy.

Flexible vacationing 

Yes, saving money is great, but this new perspective is not driven by the prohibitively expensive nature of yachting. The younger UHNWIs could buy their own yachts if they wanted to, but one thing billionaires can't buy back is time. The flexibility of co-ownership is hugely beneficial, especially to the more exploratory younger generations. For Millennials and Gen Z, unique experiences tend to take precedence over the desire for possessions. 

Perhaps a client wants to take it slow and sail the Caribbean islands on a catamaran during the winter holidays, but come summer, they are fired up and eager to climb on an exploration vessel to break ice towards the north pole. Why limit yourself, right? Co-ownership can offer that flexibility — you now own multiple yachts for the same price and commitment as sole ownership of just one. 

For our planet 

Younger generations are also the driving force behind improving the industry's sustainability, making more eco-conscious decisions on their consumption habits. Traditionally, there are often long periods when a yacht is sitting, unused. Shared ownership increases the occupancy time per vessel.

The new company Arksen is an exciting example of where both go hand in hand; their co-ownership model, the adventure syndicate enables clients to take adventures for a fraction of the cost while putting sustainability at the forefront. Arksen is a partner of Yachts For Science, matchmaking owners yachts with the marine research community. 

Cost savings  

While we can make the case that it's not about the money, as opulence is a defining factor of the industry, we do need to acknowledge it's also a bit about money. Running a commercial yacht isn't the most economical structure, and a co-ownership model significantly cuts down operating costs.