Reflecting on the recently published Times Rich List, Yacht Charter Fleet examines what emerging trends in wealth might mean for the global charter market.
Now in its 28th year, the Times Rich List has once again revealed the climate at the higher end of British finance.
Encouragingly, all of the data appears to reiterate the economic recovery which has been underway since 2010, with this year’s entrants requiring an additional £3m to make it onto the list, with the ‘price of admission’ rising to a record-breaking £130m.
Though the number of billionaires in London has fallen for the first time since the financial crisis, England’s capital remains the most concentrated city for billionaires, with a total of 77 comfortably passing the 61 residing in second place New York.
What is perhaps most interesting, however, is the phenomenal rise of the self-made millionaires and billionaires- in the place of the usual heirs of big business is a collection of young actors, sport stars, musicians, and models who have all demonstrated a certain proclivity for the yachting lifestyle.
Indeed, towards the top of the list is the impressive financial success of individuals such as Harry Styles, Lewis Hamilton, and Ed Sheeran, all of whom have been known to enjoy their time on the finer vessels cruising the ocean.
So, what might all of this mean for the luxury charter market?
One strong trend, over the years, has been a decline in the proportion of people who command the Rich List’s heights because of inherited wealth
Obviously, with known superyacht enthusiasts enjoying continued affluence it would seem reasonable to suggest that it can only be good news for the charter market.
Take a celebrity like Cara Delevingne, for instance, and consider how her and her sister’s recent spike in worth (a not unimpressive £14m) may well lead to them being spotted enjoying further luxury charter vacations.
It should be pointed out that the spending habits of millennials drastically differ from those of their parents, and as more of them acquire millionaire or even billionaire status, the market will begin to see an entirely different set of demands.
More specifically, young earners coming into money are largely more inclined to invest their money in experiences, rather than owning a series of luxury items as they may have once done.
A more conservative approach to the economy also seems to be popular amongst the world’s wealthier individuals, with recent reports from Russia suggesting that clients are currently preferring to charter instead of own superyachts in order to enjoy the lifestyle without the attendant investment.
It’s not just those who enjoy vacationing on yachts that found themselves featured on the Rich List, however. Indeed, Ernesto Bertarelli, businessman and two time winner of the America’s Cup saw a £330m increase in his fortunes over the course of 2015. As a serious investor in the industry, such a name so close to the top can only be a good thing.
Ultimately, with the number of billionaires undergoing a gradual rise, and with these individuals typically championing exclusive experiences over the accumulation of luxury items, we could well be entering a new era of yacht charter.
If you are interested in chartering a luxury yacht yourself, please get in touch with your preferred charter broker.
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