Preparing for Gen Y superyacht clients
Research undertaken by the Superyacht Life Foundation and the International University of Monaco (IUM) into ultra-high net worth individuals’ (UHNWI) attitudes towards superyachts was presented at The Superyacht Forum 2023. Dr Phil Klaus and Dr Annalisa Tarquini-Poli had been working on this since 2017, informed by the analysing responses from 300 UHNWIs aged 46-65 years internationally with their presentation informed by aggregating the data. In more recent times it was realised there was more insight be gained and a new research project was launched to focus on the children and grandchildren of superyacht owners. This formed the basis for the pair’s follow-up presentation in 2024.
The impetus for this research is compelling because of an imminent significant generational shift in spending power – forecasts suggest that 2030 will see the largest movement of wealth in human history. Trillions of dollars will cascade down from the current generation to the next generation. In terms of how that translates, Generation Y (born between early 1980s and mid 1990s) will become more than 50% of the superyacht sector’s business with a corresponding drop in the numbers of baby boomers and Gen X clients upon which the industry currently relies. Hence the imperative to start addressing younger generations now, as it will be too late by the time this shift is fully in place.
What makes UHNWIs different?
Priceless experiences and authenticity are what UHNWIs value the most. In the case of superyacht customers, the yacht is mainly a tool or facilitator to deliver the promise of the experience they will have on board with their beloved ones.Luxury goods are usually sold in more mainstream markets by emphasising exclusivity and aspiration. But UHNWIs have a different set of values.
Research indicates UHNWIs are much more homogeneous you might expect. They may well have been born and raised in one country, then moved to another place to study. We should not classify these clients by their nationality – the higher their spending power, the less their country of birth or citizenship is a factor. They travel all over the world. They have properties in many different countries. They are convenience addicted. Luxury items are not optional; they are part of their lifestyle.
Possessions such as private jets and luxury yachts have a function to save time. You will attract UHNWIs if you can them precious hours that can be converted into experiences and memories with their beloved ones, then you have got them. Conversely if you cost UHNWIs time, you are doing something that they do not appreciate.
Future challenges needing action now
In terms of challenges facing superyacht companies research suggests three things:
- an ageing client base;
- difficulty communicating with new generations;
- problems with creating engaging and purposeful activities for the customers of tomorrow.
How can we be sure that the next generation, when they get the wealth of the industry’s current clients, will choose yachting to fill their leisure time? The offspring of the superyacht owners are the industry’s best target market. Given they will have experienced their parents’ or grandparents’ superyachts they should have grown up with a love of the sea, but that doesn’t guarantee they will have a love of yacht ownership or follow through on the increasing trend for younger people to charter.
The valuable relationships that companies hold with parents and grandparents must transfer to the children as they should already be the industry’s core target market, given that impending trillion-dollar shift. So, it’s necessary to establish a direct relationship with them and move them on your side.
How do they perceive that you engage with them? How can you change the way that they look at you positively rather than negatively? What are the differences between your current existing customers and your future clients? Research has identified four main aspects to consider.
Authenticity
How can you start talking with younger generations if you don't speak in a way they understand? The new generation likes authentic communication that establishes a trustful relationship with them. Shift from what to communicate, to how to communicate. Use dialogue and storytelling, rather than monologue. Entertain your consumers while educating them about the things you want to share with them.
If you enable young consumers to share on your social media and other marketing tools what they think and how they're using the products, they will feel part of your business and more connected with your brand.
Many companies claim to be disruptive but what they have really done is to listen to their clients better than their competitors. As a result, they understand the market and the customer experience better than others and gain market share by taking away the pain of poor experiences. The focus of marketing strategies should not be only the yacht, but the clients that will use the yacht, so they will be able to project themselves in a different way.
Power of purpose
Younger generations admire companies that are responsibly engaged with the world around them. They all believe in social actions, particularly after the isolation of COVID. It’s important to demonstrate in activities and marketing that you care about social responsibility and the environment.
Today the superyacht industry is leaving the general population a free space to criticise it because it does not communicate well enough about positive direct, indirect and induced benefits of its operations, such as how much money a yacht arriving in harbour brings to the local economy, or how many jobs just one build supports. Remember, perceptions are stronger than actuality.
Sense of community
Your client relationships must be long term and multi-generational and you need to make these relationships more inclusive for the generation to come.
Younger generations often behave like they are in a pack. If you can connect with an individual effectively, you can connect with their community. You need to show them that to that you understand the language of the group and that you're not caring only about one person, but the entire tribe.
Word of mouth is one of the most effective marketing strategies. Peer pressure is influential.
Every company wants loyal customers but the younger the clients get, the less loyal they are. People who bought from you in the past are looking for extraordinary customer service, leading to memorable experiences with their friends and family.
Remember, you're not in the business of selling yachts – you're in the tourism business. People buy their yachts for their vacation and spending quality time, which is tourism and hospitality. A client will never compare you to another or builder, they will say why can’t this be as easy as dealing with my wealth manager or my private offices? Your benchmark is not internally. It's externally.
Priority on quality
The classic marketing formula to measure customer experience levels is based on satisfaction. However, 30 years of customer satisfaction research cannot explain why satisfied customers go somewhere else and the dissatisfied sometimes come back. The top priority to focus on is quality. Such as the quality of products and services, timeless design, craftsmanship and the standard of raw materials.
The apple does not fall far from the tree and some appreciated values are inherited through generations – but in a different order of priority.
How they you feel?
If they feel that they don’t fit in, or perceive they are being judged, then your client might move from a superyacht to taking a private jet to a private island. If they do not feel welcomed, it becomes impossible, you will lose their attention they will never come back to you. Again – they are not loyal and will look for other substitutes or even completely different industries.
If I arrive in a Ferrari, I am treated as a king but what happens if I arrive in a taxi? A person without enough to pay for your product today may inherit money later. Make each person count for your future business and don’t judge them by what they have now.
The Superyacht Forum 2025
The Superyacht Forum will run this year between 17-18 November 2025 at RAI Amsterdam. See thesuperyachtforum.com for more details.
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