Accelerated economic growth will cause consumer incomes to rise, boosting industry demand
New York, NY (PRWEB) January 16, 2015
Over the past five years, the Fishing Boat Charter industry struggled to recover from the recession. Industry operators provide charter boat fishing services for individuals, parties and companies. Industry companies may be relatively large and operate a fleet of vessels, single boat owner operators or even part-time charter companies. Prior to the five-year period, falling disposable incomes and the poor state of the economy forced consumers and businesses to reduce spending on recreational activities such as industry services. As a result, the industry entered the period by coming off a deep trough. Nonetheless, as the economy recovered in the five years to 2015, incomes increased and spending on recreational activities climbed.
According to IBISWorld Industry Analyst, “However, while a growing economy did increase demand for industry services, its fragile condition caused consumers to shun discretionary spending for activities such as paying for boat charters.” Moreover, small to medium business were harder hit by the recession than larger corporations; as a result, they spent less on company events, including large fishing trips. Industry operators also faced strong competition from other forms of recreation. Hiking, running and video games have all become popular alternatives to fishing, taking away recreational market share from industry players. The industry has also had to compete with unlicensed operators, who have undercut industry players. Therefore, industry revenue is expected to only increase at an annualized 1.4% to $315.8 million in the five years to 2015, with a 1.5% jump in 2015. The combination of competition and weak demand has also reduced industry profit over the same period.
In the five years to 2020, industry revenue is forecast finally surpass prerecession levels. “Accelerated economic growth is anticipated to cause consumer incomes to rise, allowing more people to spend money on industry services,” says Alvarez. Moreover, small and medium businesses are also expected to fare better over the next five years, strengthening a major market for industry players. Nonetheless, industry players are projected to continue facing stiff competition from other forms a recreation, as well as unlicensed operators.
For more information, visit IBISWorld’s Fishing Boat Charter in the US industry report page.
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IBISWorld industry Report Key Topics
The Fishing Boat Charter industry provides charter fishing services or party fishing boat services. The services provided are usually local and involve same-day return to place of origin.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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