Industry must adapt to changing consumers as boat membership clubs expand

Membership boating is booming. While it’s had its naysayers, and some earlier business models needed tweaking, for a growing number of consumers it’s proving a successful avenue into boating.  This is evidenced by companies such as Freedom Boat Club’s determined international expansion in recent years and the burgeoning numbers of companies offering subscription services. Agapi Boat Club states on its website that it believes membership boating will overtake traditional ownership by 2030 – a pretty extraordinary claim. Marinas are also making the most of the boom, with companies like the UK’s Boatfolk and Premier both launching membership clubs.

Meanwhile, anecdotal evidence says it’s a new breed of users coming into the market via these clubs. They’re ‘outdoors’ rather than boating people and they haven’t necessarily grown-up messing around in dinghies. They’re making the most of dipping into the sport via boat membership clubs.

The reality is that there’s been a core membership model for 40-odd years (thanks in no small part to Pure Latitude), and now its evolving into a global trend, appealing to those who want to play on the water, but who aren’t into the responsibility of owning a vessel.

The ‘sharing / having-a-go’ trend can be seen reflected across all industries where people are looking at the amount they use a high value asset (like a car or a boat) and wondering whether ownership is the right pathway. It’s been widely reported that Millennials and Gen-Z-ers are breaking away from being possession junkies. They’re more likely to pay money to get an experience rather than own items. Thus, it can be argued, the market has to accept, as time goes on, lifestyles are changing, so adaption is needed. And while the market is shifting towards catering for boat membership models, the opportunities for club sites are being snapped up.

Growth – and benefits – in the boat membership market

“We believe there is opportunity to grow in many markets in which the shared access model is still unknown,” says Arturo Gutierrez, general manager, Freedom Boat Club EMEA. “There are two ways in which we grow, through company operated clubs, but also through franchising. We already have a strong network of successful franchisees, who have bought the rights in specific territories to operate under the Freedom Boat Club brand and operating model. We believe a significant portion of our future growth will come from franchising opportunities.”

And those franchising opportunities are being taken up at a rate. The company’s recently announced its acquired South Florida franchise operations and territory, adding 13 corporate locations from Pompano Beach to Stuart, Florida, with the rights to expand throughout the southeast Florida coastline. 

While some may fear the rise of membership, a potential diminished stream of new owners doesn’t mean manufacturing and maintenance won’t continue. They will.

Anecdotal evidence points to boat clubs’ fleets being used a lot more than many of the other boats in a marina – so those boats require maintaining. From a marina perspective, theoretically, tenants (boat building, boat maintenance, retailers and brokers) will get more work from the boat clubs. This all adds up to an awful lot of positives as the industry evolves.

Plus, there will always be a market at the high-end, where people don’t want to share. High net worth individuals predominantly want something that is ‘theirs’.

Gutierrez thinks that “both, boat clubs and boat ownership can co-exist in the same ecosystem as they do not cannibalise each other. Each model has its own advantages and disadvantages, and the market is wide enough to cater to different consumers.”

Companies like Your Boat Club (operating in North America) markets itself on that fact that all boats are under 18 months. That’s to do with the economics. Boat clubs can buy a boat for less than retail price – and use it until it hits the ‘sweet spot’ to sell publicly and recoup the original investment.

Brunswick owns Freedom for a reason – it fits its business model. And it appears that the turnover of boats is very rapid. This is underpinned by Brunswick’s financial results, which are generally pretty chipper about Freedom’s performance. “Freedom Boat Club continues to deliver steady membership sales growth and has added two more flagship locations in Denmark and the UK, all while generating exceptionally strong synergy sales across our marine portfolio,” Brunswick CEO, David Foulkes told MIN recently.

And, interestingly, earlier this year Pure Latitude, working with MDL, marketed its boat share offering as exploring options prior to buying a boat. ‘See which brands, boats and types of sailing you prefer, as well as broadening your skills or gaining vital UK boating experience,’ its marketing missive suggested. (But then went on to make that point that having access to a varied fleet – including brands such as Hanse, Axopar and Oceanis – provides a superior proposition to owning a single boat).

Benefits of boat share clubs – time, knowledge and finance

As an industry strand, boat clubs offer many opportunities, both for people who are coming new to boating, those who are returning in a ‘hassle-free’ environment and those who just don’t use their boat that much (for whom it makes sense to move to being part of a boat club, rather than owning outright).

Evidence from a range of share providers suggests that it is people who are time poor who are currently utilising the schemes. A boat share solves problems like time spent on maintenance and berthing. Yes, some people love all the additional hours (think tinkering) but there are a lot of people who want it hassle free and that’s what boat clubs are offering.

Added to that is owners have got to be more savvy about looking after the environment and with increasing rules – and costs employing professionals to make sure work is carried out correctly – economies of knowledge and finance feed directly into boat club development.

“The shared ownership market is seeing a lot of positive momentum in consumer awareness of the boat club/subscription-based model,” says Gutierrez. He believes the model is so successful because customers understand the value of the boat share model. He puts it down to convenience and flexibility.

“With the increase in awareness, consumers are understanding the value of the boat share model and opportunities to enjoy the on-water lifestyle without the commitments that can come with boat ownership. At Freedom, we have a very diverse membership base from new to boaters to seasoned boat owners, young professionals, families and retirees, but the one thing we see our members share is the common sentiment and appreciation for the convenience, flexibility and ease to enjoy boating through our shared access model.”

That’s why marinas are getting in on the act with their own propositions.

Dominic Zammit, group marketing director for Boatfolk says that following its launch in 2021, the marina chain’s boat subscription business, Beyonder, continues to go from strength to strength. “We now have a great fleet of powerboats located across three Boatfolk locations in the Solent, Dorset and North Wales, and our Beyonder customers love the flexibility and no-strings opportunity to cruise across multiple locations from a single membership. As a gateway into the boatfolk community, Beyonder is providing a simple and barriers-free option for those looking to start their boating journey and is proving increasingly popular with those looking for new ways to reclaim their leisure time with family and friends.”

Gender diversity opened up by boat membership clubs

Participation diversity is often cited as a side benefit of boat membership clubs, for example Freedom Boat Club notes that over 35 per cent of the international club’s 90,000+ members are women. Sixty two per cent of Gutierrez’s customers have never owned a boat before and 92 per cent have no intention of owning one. “In addition, 40 per cent of our members are people who have never boated before. These numbers demonstrate that boat clubs are elevating our industry as they are lowering the barrier to entry and bringing more people to the water.

“We have many members who are new to boating and appreciate our robust and required on-water training program, as well as the unlimited access to 1:1 training with our licensed captains across all 410+ locations to instil confidence at the helm,” says Gutierrez. “We also have many ‘seasoned salts’ who are previous boat owners and still looking to enjoy the on-water lifestyle with the commitment and upkeep that comes with boat ownership.”

Those that are ‘old hands’ will be delighted to know that Freedom’s fleet of 5,000 boats is representative of each location. “For example, in the UK we have RIBs, cabin cruisers and bowriders, and in Florida, we have offshore fishing boats, deck boats and pontoons. We partner with many well-known brands across the industry to outfit our fleet, such as Bayliner, Boston Whaler, Sea Ray, Quicksilver, etc.”

How boat share clubs will underpin adoption of electric systems

One big benefit that boat share clubs are expected to offer is for electric propulsion to really come into its own.

A Ricardo report (the company looks at reducing cost and risk when adopting sustainable technologies) examined different alternative propulsions and assessed each methods’ carbon footprint, right here, right now. It effectively found that because of the manufacturing process of electric propulsion and the low use of hours, diesel was currently the most carbon efficient.

If an electric boat is just sat in a marina, it’ll never really hold its own. But where boat club models have much higher usage, it becomes much more beneficial to have electrification. Thus, boat clubs may be the way that electric propulsion boats start to become significant within the market.

Boat membership clubs’ environmental impact

“Our shared access model reduces the number of boats on the water and directly reduces environmental impact. We are rationalising the access to the ocean, de-seasonalising boating, and maximising the use of our fleet, with a minimal ecological footprint compared to other alternatives,” Gutierrez says.

“We offer training programs on responsible boating practices, including respect for marine life and coastal areas. We also work in collaboration with environmental organisations to promote marine conservation and education on the protection of the marine ecosystem.”

Like Pure Latitude says, joining a boat club is a great way to learn a little more about the kind of boat that suits a person. Exploring brands, boats and types of sailing as well as broadening skills or gaining vital boating experience can only be a good thing.

So, in essence, the industry needs work out how to leverage people who aren’t completely dedicated to sailing and boating and think about supplying appropriate products and services to help these new people access a new sport.

Main image shows Malta Laguna Harbour where MemberBoats Club, Malta’s only boat club, partners with Agapi Boat Club.

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