Interview: "A mixture of sharply increased prices" in the boating industry

BOOTE: How do your member companies assess the current economic situation in the boating industry?

Steel hat: In general, it can be said that demand for large boats is comparatively more stable than for smaller ones. Shipyards and importers with entry-level boats under 7 metres in length are having a particularly difficult time. There are even dealers who, by their own admission, had not sold a single boat in this class by the summer. In short: length matters - also in sales.

BOOTE: Where do you see the main reasons for this slump in demand?

Steel hat: This is a combination of a sharp rise in prices, an oversupply of young used boats following the coronavirus boom, high interest rates and, last but not least, the generally tense consumer climate. People with money are more likely to use the high interest rates to invest money than to buy a new boat. People who need to finance the purchase of a boat are deterred by high interest rates.

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BOOTE: Conversely, this development should mean that maintenance costs for used boats are increasing. Are there any findings on this?

Steel hat: Yes. The order books of garages and repair businesses are full to bursting. However, there is another problem: many companies are suffering from an acute shortage of staff. There is simply not enough qualified labour in the boat sector. The demand for the electrification of drives is also interesting in this context.

BOOTE: Is the reluctance to buy new boats having an impact on the charter market? In other words, are people chartering rather than travelling with their own boat?

Steel hat: No, this connection cannot be recognised in this way. The charter market is also suffering. In the domestic sector, providers are reporting a clear price sensitivity on the part of their customers. Only those who lure customers with high discounts are getting bookings. Here, too, the consumer restraint of charter customers is evident, who currently prefer to forego their second or third holiday.

Other destinations such as the Mediterranean, and Croatia in particular, are suffering in equal measure. In addition to the general reluctance to book, there is also a veritable price explosion in ancillary costs such as demurrage, restaurant prices and local charges. The sharp rise in flight prices is also not helping, making more distant destinations even less attractive.

BOOTE: All in all, that suggests a difficult 2025 season.

Steel hat: I wouldn't say that. We are already seeing a slight recovery in the market in the last quarter of 2024 and expect a consolidation in 2026 at the latest. But until then, there is a lean period to overcome. We are currently in a buyer's market and retailers are offering very high discounts for the first time in a long time. You can capitalise on this.