The global boat rental market was $16.53 billion in 2022; However, its size is projected to grow to $22.35 billion by 2027 at a compound annual growth rate of 6%.
Most boats spent more than 50% of their functional live docked or inactive. So, renting them will generate additional profit for the owners, and reusing inactive boats will remove the need for building additional boats, depleting natural resources.
Rental companies offer various boats, including fueled and unfueled, and with crew and without a crew. Most luxurious boats usually have crews to provide the best customer experience to renters.
Europe and the United States are the largest boat rental markets due to their large stretch of coastline, rapidly growing tourism sector, and the high number of private islands.
Marine tourism is the primary demand booster for the boat rental industry. Nowadays, travel agencies and guides partner with boat renters and create additional revenue streams for themselves. So, if you have boats for rent, partnering with travel agencies will grow your business as you will get free traffic through established companies or referrals.
There are several fantastic software solutions for the boat rental business. One of the best ones is Reservety’s Boat Rental Software, which streamlines online bookings, helps to manage customers and orders, and automates payments and other administrative tasks.
Most boat rental businesses provide insurance and value-added sailing packages to provide tourists with safe and fun marine leisure. In other words, boat rental companies do not only rent out boats but sell add-on services with them to boost their revenues.
The key players in the boat rental industry are Click & Boat, Boatsetter, Zizoo, GetMyBoat, and Sailo. And the newest and most innovative solution is Reservety. All these companies help boat owners to connect with customers around the world.
Transitioning to electric boats is one of the trends in the boat rental industry. Because the world is concerned with the global emissions and thinking about adapting to green initiatives. It means adding electric boats to your inventory may attract environment-conscious customers.
Boat rentals are all about adventures. Therefore, most successful companies rent their boats around popular marine destinations or organize crewed voyages to exciting places such as Antarctica, uninhibited islands, etc.
According to 2021 statistics, over 17,500 boat rental companies operate in the United States. The high number of companies should not stress you because demand is higher than boat rental companies can keep up. Of course, it all depends on where you offer your rental boats. Study competitors and target the areas around likes with fewer competitors to establish a boat rental business.
The most popular reason for boat renting is fishing. So, offering boats with fishing equipment will turn some heads towards your business. Do not just offer one thing; offer a package to give the people the leisure they desire. Here is a step-by-step guide to starting a fishing boat rental business.
High fuel costs and docking fees are two things that can negatively impact the profit margin. The best remedy is storing the boats in your storage and delivering them based on bookings. It saves unnecessary fees and minimizes the risks of theft and damages that may occur while the boats are at the dock. The downside of storing boats away from water sources is limited opportunity to serve walk-in customers who may want to rent a boat as soon as possible.
You should not completely pay off the boat to start a boat rental business. You can put down payment for a boat and pay the rest in installments using your monthly profits generated by rentals.
The greatest risk in the boat rental business is accidents. According to the US. Coastal Guard, over 4000 boat accidents occur annually in the US, causing over 500 deaths and around 3000 injuries. It means you need to get reliable insurance to protect your valuable boats and avoid expenses related to liabilities. Reservety provides the best tool for boat rental businesses to collect digitally signed waiver forms from customers automatically.
The universal rule for boat rental business is to have the 4-safety equipment on the board. Those include life jackets, signaling devices, fire extinguishers, and throwable floatation devices. However, the requirements may vary country by country.
The estimated profit margin in the boat rental business is around 60% after expenses such as fuel, maintenance, crew, etc. For example, if you rent a boat for $500 daily, you will keep the $300 as a profit.
Major accidents happen in the boat rental business due to operating the boat under the influence of alcohol and lack of boating safety education. To avoid such risks, you can assign a skipper, provide short safety lessons, and have the customers sign liability waivers. Reservety has a convenient feature for this purpose.
Recent statistics show that over 90 million people go boating annually in the United States. It should be a motivational fact for people planning on starting their boat rental business.
Most boat bookings are made online, thanks to the conveniences of the technological era. Also, people like to plan their vacations in advance, and they would like to reserve the boats based on their schedule. This fact increases the need for booking managers for boat renters. Reservety will be the best solution as it provides a website and booking system with 200 features to manage boat rentals on autopilot.
Are you owning a boat rental business and wanting to grow it by transitioning to online operations? You can do it with Reservety. Sign-up for a 14-day risk free trial and see it for yourself.