Transform to attract next generation

The early morning opening session at the trade show started off with a choir of young dancers, singing ‘We Are Family’. This resonated in Hugelmeyer’s talk as he outlined: “We do not compete against each other in this industry, we compete with other ways for people to spend their leisure time. We should show our potential client base how great it is to be spending time on the water, sailing, fishing, gathering with your family on a boat. We are co-opetition.”

Future customers

The leisure boating sector is facing headwinds, the industry executive concludes. Challenges are the changes in international trade, imposed by politics, in combination with changing demographics in the boating community. Boaters are aging. New audiences, younger generations have different expectations when spending leisure time. Hugelmeyer confronted the audience: “All of us here over 50 are NOT the customers of the future. To be able to get the next generation into boating, we need to have three things in mind: you need to disrupt yourself or be disrupted.” The traditional boat owner who spends a lot of time and money owning and maintaining their boat, does not present a lasting business model. Second thought: “We are in this together.” As mentioned before, the competition is with other leisure time activities. When we spark the joy of boating in newcomers, the whole sector benefits. Third realisation advised by Hugelmeyer: “We need to be extremely customer focussed. This is how we can welcome the next generation of boat lovers.”

Floating apartments

The example of this approach presented by Cheryl Brown of Le Boat shows how holiday makers new to boating are attracted by the possibility to navigate care-free over sheltered inland waters. “We have one hundred thousand customers every year,” she shares. “Eighty-five percent (85%) of them are new to boating. And we serve a multi-generational client base.” Brown is aware that her company is operating in an industry that is facing a set-back. “The reality: our industry is in decline. In France, our first and main market, there are currently fourteen percent (14%) less boats than in 2019.” With a fleet of boats in inland waters in France, Germany, the Netherlands, Belgium, England, Scotland, Ireland, Italy and recently also in Canada, Le Boat provides holidays for families on boats. Clients are not presented with complicated nautical terms. There is no need for a boating license, the boats are designed for easy manoeuvring. “We offer apartments that move over the water,” Brown remarks. The customers get a short instruction showing how easy it is to handle the boat and off they go. The dining area on the deck has a view that is constantly changing. Boats are equipped with comfort like at home: sockets with household voltage, kitchens with normal cutlery. “Like the whole leisure marine sector, we had a huge bubble during covid,” Brown says. “I could walk on water in 2022. But the years since then have made us realise that customers do not come automatically. It is challenging to get into people’s minds when they are planning a holiday. Renting a boat is mostly not the obvious choice. We need to communicate that this can make an ideal family holiday.”

AI searches

“We are extremely customer obsessed,” Brown reveals. “We are constantly trying to understand what our customers need. But we are also trying to get their attention. We need to pop up on their screens to make them aware of the possibility to have a relaxed holiday on a boat. That is why we make sure to get the best reviews on sites like Trustpilot, Tripadvisor and Google. The next generation will not do extensive research, but just ask the A.I. search engines ‘what is the best holiday experience’ or ‘what is the best boating company’? Our reviews make the best advertising that we can possibly have, because that is where the AI bots are looking.

Economic input

Le Boat communicates with communities around their rental sites. On average, a family or group will stay on a boat five days to one week, and stay in the region of the marina a few days before and after their cruise. Like other leisure boating segments, the people that come to Le Boat spend one thousand Euros or Canadian dollars per person in the region during their stay with dinners in restaurants, shopping and buying provisions on board.

Hundred million euro deal

This ‘easy holiday on your private boat’ approach triggers growth for Le Boat. “We ordered 400 boats of our own design that need to be delivered over the next years,” Brown reveals. “This meant a € 100 million deal with Groupe Bénéteau. At their Delphia Boat yard in Poland, the 400 yachts are built.” The Le Boat & Bénéteau co-opertion is now in it’s second year and will continue eight more.

* ICOMIA is the International Council Of Marine Industry Associations

** NMMA is the United States National Marine Manufacturers Association (one of the members ass’s of ICOMIA)