WEBVTT - Super Year for Superyacht Sales in 2021

0:00:00.040 --> 0:00:03.600
<v Speaker 1>You're listening to Bloomberg Business Week with Carol Messer and

0:00:03.680 --> 0:00:08.280
<v Speaker 1>Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. It's been

0:00:08.480 --> 0:00:13.640
<v Speaker 1>a whirlwind day, a whirlwin week, a whirlwin year already. Uh,

0:00:13.640 --> 0:00:15.560
<v Speaker 1>and I'm thinking about for those of you who are

0:00:15.840 --> 0:00:18.880
<v Speaker 1>just thinking about getting out into the world. Uh. This

0:00:18.960 --> 0:00:20.479
<v Speaker 1>next guest can maybe talked to us a little bit

0:00:20.480 --> 0:00:24.160
<v Speaker 1>about revenge spending on steroids. Um, Carol, have you ordered

0:00:24.160 --> 0:00:26.640
<v Speaker 1>your superiot? I have not, no, neither of I. We're

0:00:26.640 --> 0:00:30.880
<v Speaker 1>talking about Jonathan Beckett. He's CEO of Virgess Yachts. It's

0:00:30.880 --> 0:00:33.159
<v Speaker 1>based in the UK. But Jonathan joins us on the

0:00:33.200 --> 0:00:35.239
<v Speaker 1>phone from New York City today. How are you, Jonathan.

0:00:35.760 --> 0:00:37.479
<v Speaker 1>I'm very well, thank you, and it's great to be

0:00:37.520 --> 0:00:40.480
<v Speaker 1>back in the city. Um. You know, I'm normally here

0:00:40.520 --> 0:00:44.240
<v Speaker 1>about a week a month, and you know, for twenty

0:00:44.240 --> 0:00:47.480
<v Speaker 1>two months I didn't come. So I've been back three

0:00:47.520 --> 0:00:49.720
<v Speaker 1>times in the last two months. So it's great to

0:00:49.760 --> 0:00:52.559
<v Speaker 1>be back. Welcome back. Hey, before we get into what

0:00:52.640 --> 0:00:54.880
<v Speaker 1>you see for two, just give us an update about

0:00:54.920 --> 0:00:57.480
<v Speaker 1>what the industry looked like in one, because it was

0:00:57.520 --> 0:01:00.680
<v Speaker 1>a banner year for the industry. Yeah, I mean, you know,

0:01:00.840 --> 0:01:04.000
<v Speaker 1>as we went into COVID, I think everybody was battling

0:01:04.000 --> 0:01:08.280
<v Speaker 1>down the hatches and you know, expecting the worst, planning

0:01:08.280 --> 0:01:11.520
<v Speaker 1>for the worst, and hoping for the best. And you know,

0:01:11.600 --> 0:01:18.720
<v Speaker 1>from September or October and all the way through, you know,

0:01:18.880 --> 0:01:23.080
<v Speaker 1>we we hit record highs and it was it's been

0:01:23.120 --> 0:01:27.080
<v Speaker 1>the most extraordinary period of time for our industry. You know,

0:01:27.120 --> 0:01:29.800
<v Speaker 1>I've talked to people in the in the boat world

0:01:29.920 --> 0:01:32.160
<v Speaker 1>and they have said it has been off the charts

0:01:32.319 --> 0:01:36.959
<v Speaker 1>boats of all sizes and prices of just people in

0:01:37.000 --> 0:01:39.640
<v Speaker 1>the pandemic. And I think it's also the wealth creation,

0:01:39.760 --> 0:01:43.480
<v Speaker 1>certainly in certain substrata, if you will, or strata of

0:01:43.480 --> 0:01:48.600
<v Speaker 1>our of our society. Jeff tell us about who's been buying, uh,

0:01:48.960 --> 0:01:51.840
<v Speaker 1>you know, across the world, you know, and what kind

0:01:51.880 --> 0:01:57.000
<v Speaker 1>of yachts are we talking about? Well in our market,

0:01:57.080 --> 0:02:00.000
<v Speaker 1>you know, it's really across the board, you know, from

0:02:00.000 --> 0:02:06.520
<v Speaker 1>Australia and New Zealand, you know, through Russia, Asia, America, Europe.

0:02:07.480 --> 0:02:09.959
<v Speaker 1>And I think, you know, this is the first time

0:02:10.040 --> 0:02:15.600
<v Speaker 1>that many of our clients have actually felt vulnerability, you

0:02:15.639 --> 0:02:19.960
<v Speaker 1>really experienced vulnerability before, you know, I think, you know,

0:02:20.400 --> 0:02:24.400
<v Speaker 1>a lot of our clients felt bulletproof and very secure

0:02:24.560 --> 0:02:29.600
<v Speaker 1>with with their business and the environment and the economy.

0:02:29.800 --> 0:02:32.400
<v Speaker 1>And for the first time, you know, they were sort

0:02:32.440 --> 0:02:36.600
<v Speaker 1>of almost helpless um and felt very vulnerable. And and

0:02:36.880 --> 0:02:39.000
<v Speaker 1>as you say, there's been a lot of wealth creation,

0:02:39.520 --> 0:02:41.800
<v Speaker 1>and so why put off for five years time or

0:02:41.800 --> 0:02:44.360
<v Speaker 1>ten years time when you know when you could be

0:02:44.400 --> 0:02:47.320
<v Speaker 1>doing it today and enjoying it with your family today.

0:02:47.320 --> 0:02:50.280
<v Speaker 1>And I think that's had a big play in our market. Well,

0:02:50.280 --> 0:02:52.600
<v Speaker 1>what the typical purchase? Is there a typical purchase you

0:02:52.600 --> 0:02:55.200
<v Speaker 1>could kind of lay out for us, you know, I mean,

0:02:55.240 --> 0:02:58.160
<v Speaker 1>I mean, I think the marine industry across the board

0:02:58.200 --> 0:03:03.440
<v Speaker 1>has done exception well in the last eighteen months. But

0:03:03.520 --> 0:03:06.079
<v Speaker 1>you know, the typical purpose in our market is probably

0:03:06.560 --> 0:03:12.320
<v Speaker 1>an average of around fifty million dollars. And you know

0:03:12.440 --> 0:03:15.080
<v Speaker 1>that that market, you know, there's been a sort of

0:03:15.080 --> 0:03:19.960
<v Speaker 1>feeding frenzy. And prices are not prices are sensible, they're not,

0:03:20.080 --> 0:03:24.360
<v Speaker 1>they're not inflated, but you know they're good prices. There's

0:03:24.400 --> 0:03:27.440
<v Speaker 1>no there are no cheap boats around. What does what

0:03:27.480 --> 0:03:30.080
<v Speaker 1>does itty million dollar yacht look like? What does it

0:03:30.080 --> 0:03:32.040
<v Speaker 1>catch you? What does fifty million dollar yacht look like?

0:03:32.080 --> 0:03:36.840
<v Speaker 1>It's probably you know, it's it's around sixty two hundred feet.

0:03:37.640 --> 0:03:41.040
<v Speaker 1>We will accommodate twelve to fourteen guests, have a crew

0:03:41.080 --> 0:03:46.000
<v Speaker 1>of sixteen to eighteen and you know transatlantic range. It's

0:03:46.440 --> 0:03:49.360
<v Speaker 1>you know, it's it's a world it's a world cruiser

0:03:50.120 --> 0:03:54.560
<v Speaker 1>and full of luxury. But our market goes goes from

0:03:54.760 --> 0:03:59.520
<v Speaker 1>ten million dollars up to you know, six hundred million dollars,

0:03:59.560 --> 0:04:02.920
<v Speaker 1>you know, the very heavy heights. It's it's an absolute

0:04:02.960 --> 0:04:06.440
<v Speaker 1>extraordinary world. Yeah, and it's a lot of motor yacts.

0:04:06.440 --> 0:04:08.640
<v Speaker 1>But I know you have sailing, which is my my

0:04:08.720 --> 0:04:12.320
<v Speaker 1>favorite always and it's time to look at who's buying though,

0:04:12.480 --> 0:04:14.520
<v Speaker 1>is it? You know we used to say on some

0:04:14.640 --> 0:04:16.839
<v Speaker 1>of this stuff and some of this really high end

0:04:16.920 --> 0:04:20.599
<v Speaker 1>luxury um products, if you will, that it was a

0:04:20.600 --> 0:04:24.159
<v Speaker 1>lot of tech you know, entrepreneurs and so on and

0:04:24.200 --> 0:04:28.120
<v Speaker 1>so forth. Who's doing the buying though? Why you know

0:04:28.160 --> 0:04:31.480
<v Speaker 1>that our market is you know, the American market is

0:04:31.600 --> 0:04:35.840
<v Speaker 1>very very important to us. It's probably thirty of the

0:04:35.839 --> 0:04:40.360
<v Speaker 1>world market, um, and there are certainly a lot of

0:04:40.400 --> 0:04:45.320
<v Speaker 1>a number of tech you know, young tech entrepreneurs, but

0:04:46.120 --> 0:04:50.040
<v Speaker 1>you know, the market is very traditional and you know,

0:04:50.400 --> 0:04:55.279
<v Speaker 1>people in you know, in finance in property, in you know,

0:04:56.640 --> 0:05:02.080
<v Speaker 1>car dealerships, manufacturing. You know, a lot of our clients

0:05:02.520 --> 0:05:06.800
<v Speaker 1>are involved in businesses. Um that that produced a lot

0:05:06.880 --> 0:05:10.599
<v Speaker 1>of units that everybody, everybody wants and you know it

0:05:10.600 --> 0:05:14.279
<v Speaker 1>could be talking about cardboard boxes or shampoo or toothpaste

0:05:14.400 --> 0:05:17.360
<v Speaker 1>or yeah, we all use a lot of that stuff

0:05:17.360 --> 0:05:19.320
<v Speaker 1>and that produces makes a lot of people wealthy to

0:05:19.320 --> 0:05:22.320
<v Speaker 1>you also do a lot of chartering. Tell us about

0:05:22.320 --> 0:05:25.320
<v Speaker 1>that side of the business as well well. Char chartering

0:05:25.400 --> 0:05:29.040
<v Speaker 1>was very difficult in obviously UM and a lot of

0:05:29.160 --> 0:05:35.960
<v Speaker 1>charters were either canceled or or pushed into one was

0:05:35.960 --> 0:05:39.520
<v Speaker 1>was almost our best year ever. It wasn't quite our

0:05:39.560 --> 0:05:42.680
<v Speaker 1>best year ever, but was our best year. And I

0:05:42.680 --> 0:05:46.919
<v Speaker 1>think two will be a record year for yacht charter

0:05:47.160 --> 0:05:50.840
<v Speaker 1>and already, you know, we've got limited availability in the

0:05:50.839 --> 0:05:54.800
<v Speaker 1>peak season, so um, you know, everybody wants to go

0:05:54.800 --> 0:05:57.919
<v Speaker 1>out and enjoy themselves and they have the finance to

0:05:57.960 --> 0:06:01.839
<v Speaker 1>do it, and you know, it should be a very

0:06:01.920 --> 0:06:06.280
<v Speaker 1>good year for the charter business. And anyone listening who

0:06:06.360 --> 0:06:10.520
<v Speaker 1>wants to chart for a yacht um, you know in yeah,

0:06:10.640 --> 0:06:12.840
<v Speaker 1>throughout the year, then then it's time to book up

0:06:12.880 --> 0:06:14.560
<v Speaker 1>because there is a shortage there's going to be a

0:06:14.560 --> 0:06:17.480
<v Speaker 1>shortage of supply. Are you concerned all about market volatility

0:06:17.480 --> 0:06:19.200
<v Speaker 1>in the way that it may affect a confidence of

0:06:19.240 --> 0:06:22.280
<v Speaker 1>somebody who's about to show out fifty million dollars or

0:06:22.320 --> 0:06:25.479
<v Speaker 1>more for for a yard? And absolutely, And you know,

0:06:26.560 --> 0:06:33.480
<v Speaker 1>our market relies on stable world economy and stable political environment.

0:06:33.680 --> 0:06:36.280
<v Speaker 1>And you know, anything that is a is a jitter.

0:06:37.200 --> 0:06:40.760
<v Speaker 1>People sort of pull back and they're nervous about it.

0:06:40.839 --> 0:06:44.200
<v Speaker 1>But right now I think we are. You know, the

0:06:44.240 --> 0:06:47.279
<v Speaker 1>markets have been down the last couple of days, but

0:06:47.560 --> 0:06:51.440
<v Speaker 1>you know, not dramatically down, and nobody's pulled the deal

0:06:51.480 --> 0:06:55.720
<v Speaker 1>because of the market volatility just quickly not okay, all right?

0:06:55.800 --> 0:06:59.000
<v Speaker 1>Well yeah, well I'm just gonna say, go through your

0:06:59.000 --> 0:07:01.520
<v Speaker 1>website's like going on and any vacation, especially when it

0:07:01.600 --> 0:07:04.440
<v Speaker 1>comes to the charter side, come back soon, um, Joff,

0:07:04.680 --> 0:07:06.320
<v Speaker 1>come back to New York and hopefully we can have

0:07:06.360 --> 0:07:09.160
<v Speaker 1>you in studio next time. That's Joff back at the

0:07:09.200 --> 0:07:11.800
<v Speaker 1>CEO of Burgess Yachts based in the UK and New York. Carol.

0:07:11.840 --> 0:07:13.160
<v Speaker 1>If you have to click on the price and like

0:07:13.200 --> 0:07:15.160
<v Speaker 1>ask how much it is, remember you can't afford it, Okay,

0:07:15.320 --> 0:07:17.120
<v Speaker 1>I know, our mother's right Our parents have both said

0:07:17.160 --> 0:07:18.960
<v Speaker 1>that if you have to ask, you can afford it.