Earlier this month, the CEO of yachting firm IYC sat down with The Maritime Observer in a conversation forecasting what awaits the superyacht market in 2025 and beyond. Over the course of this conversation, Sauleau provided insight on a conveyor belt of trends, opportunities, and challenges concerning the industry, from the U.S. presidential elections to the Russian sanctions, the role of technology in the superyacht business, and more.

Question: Going Into 2024, you predicted a less significant sales slowdown compared to the previous two years. Although the first two months of the year saw a drop as big as 53%. What did you make of the remainder of the year?
R.S: The beginning of the year was relatively slow from an industry standpoint. The sales market throughout the year declined with the exception of a few companies. Luckily enough we were one of these [companies], we actually saw an increase in sales and an increase of the size of boats we sold, which was accelerated from the second quarter onwards.
But the industry as a whole has been seeing a slowdown in sales although I think there is probably a few issues or reasons for this. One is we’ve been going through quite an intense last four years – post-COVID – where the industry saw a tremendous boom in regards to sales and charter. The fact that we’re seeing a slowdown or what we would like to call “a normalization of sales” in 2023 and then followed up by 2024 is relatively normal.
I will also say that the U.S. market, which is normally leading the charge in terms of sales worldwide, was also a little slower last year. That also triggered the worldwide results of the sales market. This is due to a few reasons, one of which being interest rates, affecting potential owners in the entry-level to mid-level segment, who have still been on the fence, waiting to see whether or not the interest rates will lower. Worldwide instability and macroeconomics have also played a role in the mindset of some buyers. That shows that the big players were less affected than others may have been. That being said, the bigger boats, with larger tonnage, would have been going relatively fast in sales if they were properly priced and marketed.
Question: Another prognostication of yours was the charter market and chartering surpassing sales in terms of revenue. Do you still share these sentiments?
R.S: Sales will be the locomotive to any brokerage house because the level of commission is higher, but to have a well-balanced company means you have to generate revenue and be strong in every division. When it comes to the charter market, we saw a slowdown but not as big as we saw in the sales market. That is positive as it means there is still a strong appetite for yachting in the world and, for many, the entry door for yachting is through charterting. That means we still have people who like and are enjoying yachting. The last couple of months of 2024 has given us strong hopes for a good and strong 2025, which I think is also the result of some optimism to some extent with the election of Trump in the U.S., triggering a stronger appetite for investment in yachting. This is also due to the fact that the U.S has a depreciation law – meaning you can buy a yacht and depreciate it from your income tax. That could also be a reason why we are regaining an appetite, not yet in sales, but in inquiries, requests, and visits. When it comes to charter, we still see some appetite for the winter season but also for the upcoming summer season where we see an increase in bookings. All the signals are so far positive for 2025.
QUESTION 3: Is it fair to declare we are in a period of normalization? Where do you see the market headed in 2025?
R.S: Even before the pandemic, the yachting industry was growing by one, some extent two digits. It was a very active and growing industry, obviously largely accelerated by the COVID-19 pandemic for some companies with a growth of 3 digits, which was unprecedented in the industry. I think we are think we going to back to normal, still seeing growth, but what I would like to call “reasonable growth”. As you read through all media, the increase of millionaires and billionaires in the world keeps going up, we see that the stock market is still looking rather healthy, and bitcoin is still through the roof, so that generates new wealth and creates new potential clients for the yachting industry. I am rather optimistic that the yachting industry will still see growth, not as big as it used to be three or four years ago but we still see growth.
QUESTION 04: Geopolitical circumstances played a significant role in shaping the industry. On one hand, the election of Donald Trump for the market, but on the other, the impact of the Russian sanctions is still felt. Although Russian buyers have been out of the equation for about 2-3 years now, did you observe a “return to form” or have buyers from other markets compensate in their absence?
R.S: One of the reasons why the US market is so important is because it is the locomotive yachting industry. For many companies, including IYC, the U.S. market represents 50-60% of our revenue, so clearly it plays a great role. The election of Mr. Trump has triggered optimism within some markets. I think the Russian clients, due to the many sanctions that have been imposed on them, have been away from most of the markets because clearly all the companies cannot. I don’t see any change in the upcoming months at least.
When the sanctions were imposed on Russian nationals and residents, we saw an influx of newcomers to the industry, which alleviated the fact that Russians were not able to transact in the industry any longer. That was largely compensated by the U.S. customer base and to some extent European and Middle Eastern customers. So companies that were predominantly dealing with Russian customers saw a big hit and struggled to recover, whilst others had, and have, a healthy mix of clientele were not so impacted. The fact that we saw the rush towards yachting in the last three to four years also largely compensated for the fact that some of us have lost Russian clients.
We have to remember that Russian-owned, big boats always made the big headlines, but overall it represented close to 10% of the industry, and 15% of the larger segments. But the industry is not all about the big boats, it starts with 25-30 meters upwards. The bulk of your market today, where you do the most transactions, is within the 30-40 meter segment and the average selling price is $7 million. It’s not just about the 100 meter + boats in our industry. Clearly whilst it has been affecting our industry, it has not impacted as some have been trying to claim when sanctions were imposed on Russian customers.
QUESTION 06: The industry has placed an emphasis on catering to a new generation of buyers who have emerged in recent years. How did this trend come into play and how do these younger owners want to use their yachts going forward? And what is driving their purchasing decisions?
R.S: Well I think this happened in the last four to five years, whereby we saw an influx of younger owners come into yachting. The pandemic played a big role, as many other outlets being closed and destinations challenging to go to. Yachting became one way to escape by having the luxury of traveling anywhere with very little restriction. It not only became a vacation destination, but it was also a living destination.
People living with their kids and being able to manage their various companies from their yachts, allowed a larger audience to come into yachting, along with the fact that the stock market and COVID, to some extent, created new wealth in the medical and financial worlds. Young people accessing wealth faster that wanted to try a new way of life that was traditionally more related to the so-called “older generation” as well. We are seeing this throughout the luxury world – cars, and other luxury items whereby you see an increase of younger millionaires and billionaires accessing these new markets. This was good for yachting because many of us were trying to find a strategy to find younger generations and make sure we had a succession plan of yacht ownership, but it came to us naturally. The increase of social media and Youtube videos showing what yachting offers to you, the ultimate escape, also favoured the fact that we welcomed many new younger customers.
QUESTION 07: Sustainability, and the road to reducing yachting’s carbon footprint, has been gradually gaining importance from shipyards and builders, who have expermiented and applied alternative forms of fuel and propulsion systems, for example. But what about the owners? Are they willing to invest in new eco-friendly technologies?
RS: I think e-friendly technologies come with a more expensive ticket. We also need to be very careful when we say “yachting is yachting” because it won’t be here any longer if we are not 100% invested. All the technologies put forward by the shipyards together with owners, who are at times challenging shipyards to come up with greater solutions, is fantastic. Obviously these individuals have the means and the brains to come up with their own ideas and studies, so that is extremely positive. What yachting has achieved in the past few years in terms of propulsion systems and materials used on board is remarkable. Of course, it’s very easy for some to point fingers at yachting not being green, but we have to remember there is a lot of progress that has been made in the yachting industry thanks to the shipyards, but also owners, who are, for many, taking the leap and investing, challenging and researching their own methodologies to implement onboard their yachts. We see a movement whereby there is a great effort and desire for all parties to come up with new ways to do yachting.
QUESTION 08: From a financial perspective, banks, such as BNP, are starting to institute environmental requirements prior to granting loans or else refuse to finance the yacht. Do you see this playing a bigger role in the future of the vessel’s resale value?
RS: Definitely. Some banks are making a point to only provide financial support to yachts which are making the decision towards more sustainable technologies. While you are investing a little more initially, you will have a return going forward but also immediately, especially if you are running on battery packs, for example. Yachts are probably one of the highest devalued assets. Building a more sustainable asset is going to play a positive role in your investment. This is definitely the way forward, to promote, invest and implement new technologies onboard.
QUESTION 09 – Overall, for this industry to evolve, how important is it to establish new cruising grounds?
RS: It is definitely a way to attract and welcome yacht owners. I think what you will, and already see throughout the world, is the lack of marinas and berths. The increase of yacht purchases in the last four years have triggered a clear indication that we don’t have enough marinas. The fact that some new destinations are welcoming yachts with the latest technologies and marinas available is good. The more playgrounds developed for the yachting industry the better it is for us as professionals so we can offer alternatives to our customers and reach new customers.
The Middle East, which is becoming an emerging market for superyacht tourism, has been growing, investing in infrastructure, harmonising regulation with a clear intention of creating appeal to foreign flags to visit. Are you planning to expand your presence in the region? And what challenges lie in improving its attractiveness?
RS: The strong effort made by several countries in the Middle East is to be praised. We already have a branch in Dubai and are studying other areas. I think there will be some work to be done in terms of making the destination attractive year-round.
First of all, in the summer it is challenging to be there, it puts quite a strain on the yachts. But in the winter, as an alternative destination to the Caribbean, there is a card to play for destinations like Dubai, Saudi Arabia and others which are not necessarily yet made famous for being yacht-welcoming destinations, but what they can offer is amazing. Oman and the like where there are some good destinations to go to. Like everything in life, it takes time for people to get accustomed to the idea of repositioning.
Unfortunately, the instability in the region can be perceived by some as a deterrent, even though it’s pretty remote, but for som,e it may be too close to be taking the decision. One thing is for sure: it will take years, in my point of view, to create an attractiveness which allows consistency into welcoming a strong winter season in The Middle East.
The interest will come from yachts which are not necessarily doing dual season today, but are only doing a winter season. They may see the opportunity to do dual seasons for both charter and their own usage. That’s where I think the urgency may be. Overall, a card to play if you want to have a dual season between the Middle East and Asia. But I see some positive signs, including the recent inauguration of Sindalah saw quite an appetite as many yachts went there. The fact the Caribbean is strong in the winter is due to the history, landscape, the many islands offered locally, this was not built overnight. we are talking about years and years of activity. It’s also relatively positioned very close to the USA, where most of your customer base is, this is why you also have a strong appetite for the Caribbean over the winter.
Question 10 – Technology and the rise of AI, have disrupted practically every industry. What is your stance on its growing implementation in the superyacht business, where the human element is valued the most?
R.S: Technology is one area whereby we are not shy to invest and not shy to come up with new investments and ideas. We are investing into new apps, software and utilising AI. We are launching our in-house app whereby we are going to use all the technologies which are made available through a proper app. This will only be used internally, but I think the next step is for us to have a similar system for our customer base, with access to our portals etc. We are definitely working on making the end user more flexible.
We saw an interest in our online facility, Reserve, whereby people are looking into yachts they would like, make their selection and look at the calendar to book – clearly the format of AirBNB. It goes through a broker who makes sure that their requirements are in line with what their expectations may be, so they still get that personal touch. We have been already doing some relatively good numbers with this functionality. That is what comes with the younger generation, who are used to all these tools like Uber and similar applications.
What made IYC decide to embrace technology in their day-to-day operations? & Where do you plan to go with your technological capabilities?
R.S: A lot of companies have taken an accelerated process with COVID, due to the fact that no one could travel or meet anyone. Many went digital and technology-driven. We are probably the only yachting company in the world where we own our own tech company with over 15 employees, working daily on updating, upgrading, and creating new tools. We are looking at the possibilities and alternatives to making our work more efficient both internally and for generating more revenues. We have closed over 140 charters through our website by direct enquiries in 2024.
Question 11- If the pandemic proved anything for this industry, it was that the show can go on without in-person events. Does technology obviate the need for these events, or do they still have their place in the superyacht industry?
R.S: For some reason, there is still this belief in this industry that you need to show boats and spend alot of money on boat shows. I am not necessarily advocating that. I think boat shows are good to spend a huge amount of money just to be in boat shows and do to marketing. I don’t find it necessarily wise but you know this is how the industry has been going and still is going. The boat show organizers are doing what they are supposed to be doing, running shows and making their own business. I understand to some extent.
People like to be in boat shows, like to meet their customers. Boat shows allow you to see many boats at once, which otherwise you will have to travel from one place to another to see them, so there are some merits for sure. Technology, from my point of view, will never replace running an event. It will never replace meeting people and social exchange, which I think is key to bringing that relationship and trust amongst individuals. I think a bit of everything is good. Technology is bit more onto having faster flow, promptness into handling a request and tasks. It is extremely useful for gathering intel and working data so you can make the right decision into your strategic plan. But events with customers are necessary. You spend time with them, you get to know them and they get to know you. The fact that we are so many of them, that is becoming a little ridiculous. Last year, IYC attended over 16 in the world, from Asia to The Middle East to America.
QUESTION 12 – You’ve been at the helm of several companies now, what is a common throughline or quality you expect to see in your team?
R.S: The team is you. That is very important when you work with a team you are aligned with. You also have to give a lot of leverage and liberty to your team. If you are a professional you obviously try to hire the best professionals you can, and you need to give them the liberty and the space for them to do what they do best; otherwise, you have to go back to your recruitment process because you have the wrong people. [laughs]. I was able to build this bond with my team, and I have been very fortunate to work with very strong and good professionals in my career. It’s not always been easy to develop businesses and create strong entities, but it has been fruitful. I attribute that to the fact that you are working with people who are given that opportunity to excel, make decisions and bring ideas.
QUESTION 13 – To finish, what is one piece of advice you would dispense to anyone reading this interview, whether it is someone starting out in this industry, or any professional with a goal?
R.S: Believe in what you do. Never take no for an answer and be consistent. You can fail, but you can also rise and you can succeed. Second, always believe in yourself. This is the key. If you have a project which you believe in, something that makes sense, you can be consistent in your approach, you believe in it and you do not take no for an answer, you have a chance to succeed.
This interview has been edited and condensed for clarity.