Cruiser Market Reaping Higher Returns

Where high interest rates have hurt some market segments, the cruiser and yacht category has flourished as buyers reap higher returns on their own investments.

The upper end of the US boat market, reflecting the largest and most expensive cruisers and luxury yachts, has proven comparatively resilient through the recent interest rate-driven market slowdown. The affluent, some say, are immune to credit availability and interest rate hikes since they don’t need to rely on consumer financing in order to close a deal.

But are they right?

“The interest rate discussion can go two ways,” observes Sue Kane, director of sales for Holland, Michigan-based Tiara Yachts. “Higher interest rates can impede financing. But higher interest rates can also be a positive in some investment categories.”

In other words, higher rates can be a challenge if one is paying interest or a boon if collecting it, with the implication that those in search of luxury boats are more likely to fall into the latter category.

“Some dealers and builders have seen ups and downs, but for us it has been extremely solid. It’s not really a common thing in the industry, but we are in a fantastic position,” she says, adding that a strong order book will carry the privately-owned company through 2025. Celebrating its 50 anniversary this year, Tiara manufactures nine yacht models over four lines ranging from 34ft-60ft.

“A lot of manufacturers increased their production to meet post-pandemic demand. We made a conscious decision to maintain our production rate and that has really ensured longevity,” notes Kane. “The decisions we made at that time, and carried forward, have strengthened our position. We did not increase production or load-up dealers. Our strength is in our low dealer inventory, and we’ve maintained a strong and predictable production rate while rolling new models into our portfolio.”

The latest is a refreshed version of the 43 LE. Tiara’s Luxury Express line is designed with unique social zones, transformational seating and innovative features including a fold-down terrace and retractable enclosure system. It offers an updated aft cockpit with all-new rotating lounge with buffet and electric grill with a glass enclosure with sliding door and electrically actuated window that separates the cockpit from a fully equipped and centralised galley in the salon.

Below, a private owner’s stateroom is located forward while a guest stateroom and private head are mid-cabin. The 43-foot, six-inch vessel is powered by a pair of 600 horsepower Mercury V12 outboards.

“New product always draws more customers and more retail sales,” says Kane. “Years ago, you could carry a model for eight or nine years, but now you’re probably looking at a three- to four-year range.

“If we can come to market faster with some design changes, we’ll do that while running a parallel path with a new model. We have not slowed our new product development at all, we’ve actually increased it. We plan to bring more new models to market faster.”

Among developing trends in the cruiser and yacht category, the shift toward the wider adoption of outboard power has certainly been among the most visible.

“They’re not outboards as we used to know them. They’re dependable and smooth and quiet. To think that a 600 horsepower outboard could be that quiet is quite phenomenal,” said Formula Boats president, Scott Porter.

Three 600 horsepower V12s will be standard power on the company’s newest 457 Center Console model, which made its official debut at the 2024 Miami International Boat Show. Building on the success of the 387 Center Console fish and sport models introduced a year ago, the new 457 boasts an air conditioned glass helm with triple 22-inch multi-function touchscreen displays, a belowdecks galley, lounge that converts to a double berth, and private head with a separate shower.

Like the previous 387 models, the 457 CC will be offered in a choice of fish or sport variants. Both include a fibreglass hardtop, with an upper helm station available as an upgrade on the fish version.

Flying High

Of course, not all developments in the cruiser and luxury yacht category involve outboard power. Having introduced a range of outboard-powered yachts in recent years, Wisconsin-based Cruisers Yachts returns to inboards for its upcoming 55 Fly model, currently in final development for launch later this year.

Described as an evolution of the boatbuilder’s popular Cantius series, the 55 Fly is the first model in what is planned as a three-model series of luxury yachts with a contemporary exterior design and fresh, modern interiors boasting light fabrics, textures and palates created in collaboration with renowned superyacht designer Luiz Debasto of Debasto Designs. The design theme of ‘back to nature in a tech world’ blends organic shapes and natural fibers to create a serene, inviting living space that offers a refuge from the hamster wheel of daily life.

“We set out to create a ‘Super Fly’ – a yacht that exceeds all expectations of Cruisers flybridges of the past,” said Cruisers Yachts vice president of engineering, Josh Delforge. “Our design team focused on delivering the best-in-class water interaction, a superior flybridge entertaining space, and a fresh interior design direction, all wrapped in an updated evolution of the Cantius DNA.”