‘Trump bump’ boosts US yacht-timism
Raphael Sauleau joined IYC as CEO in 2023.
Wall Street’s ‘Trump bump’ in the wake of Donald Trump’s presidential election win is showing signs of spreading to yachting, according to Raphael Sauleau, CEO, IYC.
The feel-good impact on stock markets, at least in the US, is boosting optimism levels in the superyacht business as prospective clients appear to be emerging in growing numbers.
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“Since the result of the election, we’ve definitely seen a regain in activity, not necessarily in sales yet, but definitely in activity in terms of requests, some negotiation and definitely in terms of charter bookings,” Sauleau tells us.
The Frenchman, who took over at the global all-service brokerage in 2023, says 2024 began slowly, particularly in sales, but has been overall a “relatively good year” with fewer sales but higher values.
“We see some very strong potential for 2025 already, which is very encouraging if you compare it with last year at the same time,” adds Sauleau, who was previously the head of Fraser Yachts.
“We definitely see already a stronger appetite on the US market, which was relatively slow during the last six months, especially in the entry to mid-segment market. The higher segment market hasn’t been so much affected. We’ve seen some quite large yachts being sold if they were properly priced.”
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Changing trend
So far this year, IYC has sold 44 yachts, the largest of which was the resale of the new-build 72m Admiral Project Metamorphosis, with about 58 central agency contracts in total. “We have a few deals ongoing and we are likely to come very close, if not overtake last year’s sales,” Sauleau adds.
At the beginning of 2024, Sauleau told us one pillar of his three-year growth plan was to be “more visible” in the large yacht sector and he is encouraged by the gains made by IYC this year.
“We are not consistently signing or selling these boats of 80, 90 metres, but we can see already we’re breaking through with 70-80m, so we definitely see that as a trend changing for us,” he says. “However, we remain extremely strong in the other segments of the market, which is very important for us, in all divisions, not only sales, but also charter and yacht management.”
Partnerships with Sunreef in the UK, Moonen Yachts worldwide and the Italian Sea Group in Greece have also “helped drive growth in our sales division”, he says.
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Digital boost
IYC is already one of the leading worldwide charter brokerages with about 160 yachts and Sauleau reports steady growth in charter and yacht management.
“Winter bookings have been relatively encouraging, especially for our US-based locations including the Caribbean and Bahamas, and our European offices are already booking quite steadily for next summer,” he says. “So, look, it’s pretty positive. I cannot complain. Year-on-year, we see a growth.”
Another area of investment for IYC this year has been in its digital infrastructure and strategies, with a focus on the website and social channels, including Instagram, LinkedIn and YouTube.
“Digital today is a big medium for not only creating awareness for a company, but also definitely generating business,” says Sauleau. “We have booked 121 charters through our website so far this year and the total charter fee through the website only is over €10m.”
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Trade wars
The continuing “normalisation” of the market following the Covid frenzy when many people bought yachts has led to a relative reduction in the number of clients, allied to a year in which geopolitical issues, high interest rates and impending elections caused many prospects to sit on the sidelines, “especially in the entry-level to mid-segment market, where you do have some financing happening”, says Sauleau.
“That being said, what I find encouraging is we still see a strong appetite in charter, which is obviously for many the entry into yachting,” he says. “Of course, we would all like to see the growth of yachting matching the growth of the wealth in the world. But the growth of wealth is international, including as China and Asia, and some of these places are not necessarily yacht savvy.”
Broadly, the US yacht market makes up 60% of the industry and the fact “some categories of Americans” are looking “a bit more aggressively” at yachting again suggests the outlook is healthy.
But Sauleau is also cautious, mindful of what policies President-elect Trump will pursue next year. It remains to be seen how his proposed trade tariffs will affect the yachting industry. So far, he plans to add 10-20% on all imports, with a 25% levy on goods imported from Mexico and Canada and an additional 10% increase on goods imported from China.
“I don’t think the second-hand market will be as affected as new build could be, but I don’t have a crystal ball,” he says. “What I can see and feel is there is definitely increased appetite and a regained optimism in the US.”
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