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CLEVELAND, Dec. 19 /PRNewswire-FirstCall/ -- Key Recreation Lending (KRL),
the marine lending division of KeyBank NA, released the results of its latest
survey on national boating trends, which showed continued promise for the
marine industry among affluent American households. The survey was conducted
in conjunction with the McDonald Financial Group Affluent Consumer Confidence
Index -- a quarterly survey that gauges the economic confidence and spending
and investing sentiment of affluent Americans. McDonald Financial Group is a
part of KeyCorp (NYSE: KEY), which also includes KeyBank NA and KRL.
"Despite tempered expectations of the overall national economy, our survey
revealed that a significant percentage of affluent Americans show enthusiasm
for boating, and their interest in purchasing a boat continues to be a
positive sign for dealers and manufacturers," said Ken Landon, chairman of
KRL.
Results from the special boating survey reveal that affluent Americans are
more likely to be boating enthusiasts and to continue the trend of luxury
spending despite concerns and tempered expectations about the national
economy. These results lend special insight into the minds of affluent
Americans at a time when many of them are attending fall and winter boat shows
throughout the U.S.
Enthusiasm for Boating
- Key Fact: 26 percent already own or plan to buy a boat
Key's survey finds that 26 percent of affluent Americans already own or
are planning to buy a boat in the near future. This figure appears to be
considerably higher than it would be for the nation as a whole, although a
comparable statistic for all Americans is not available.*
Rising Fuel Costs Not a Key Factor
Although rising fuel costs have posed a concern to many average consumers,
among affluent Americans these rising prices have not had a significant impact
on their views of boating. When asked if rising fuel costs would impact their
plans to buy a boat in the next 12 months, 76 percent answered that it did not
have a direct bearing on this decision. A total of 69 percent of affluent
Americans also answered that rising fuel costs did not affect how much time
they planned to spend using their boats.
Women Closing the Gender Gap on Boating?
- Key Fact: Affluent men are only 4 percent more likely than affluent
women to be interested in boating
Another interesting demographic trend revealed in the survey is the
relatively small disparity between affluent males and females, when it comes
to boating interest. According to the survey, 27 percent of men and 23 percent
of women said they already own or are planning to buy a boat soon.
Men Still Make Key Buying Decisions
Despite affluent women's interest in boating, the KRL survey showed that
men are more likely to make the final decision on whether or not to buy a new
boat. According to the survey, only 17 percent of women polled answered that
they would make the final buying decision on their boat, as opposed to 64
percent of men.
Wealthier Americans Show Higher Interest in Boating
- Key Fact: 29 percent of wealthiest Americans already own or plan to buy
a boat
The survey found that affluent Americans in the highest income bracket
were the most likely to buy a boat. Of those Americans who make $500,000 or
more, 29 percent either own or plan to own a boat; whereas 26 percent of those
polled in the $150,000 to $500,000 income bracket gave that response; and 24
percent of those making under $150,000 answered in the affirmative.
Finding "Mari-time" on the Water
- Key Fact: 10 percent say they are too "time-challenged" for boating
Aside from those polled who were simply not interested in boating (48
percent), lack of time seemed to be the single greatest barrier to purchasing
a boat. According to the survey, 10 percent of affluent Americans answered
they simply "don't have time" to go boating. Other barriers to boating noted
by respondents included: overall high costs of boating (6 percent); "no
access to marine facilities" (5 percent); "prefer to use someone else's boat"
(4 percent); "operating costs too high" (3 percent); "not the time of year" (2
percent); "high interest rates" (2 percent); "unfavorable economy" (1
percent); and "no good deals" (1 percent).
"It is our job in the marine industry to get the right messages out to
those people who think they are too time-challenged to experience the joys of
boating," said Grant Skeens, president and CEO of KRL. "For example, affluent
business owners and top executives may not be thinking of the value of yacht
ownership as a business entertainment tool rather than just leisure activity.
Many important deals get sealed while out on the water fishing or cruising and
there may also be ways to defray some costs when boats are used for business
purposes."
Sailboats a Popular Choice Among Affluent; Top Earners Still Prefer Motor
Yachts; More Women Choose Runabouts
- Key Fact: Popularity of sailboats up 5 percent over last year's survey
- Key Fact: 18 percent of women prefer a runabout/ski boat vs. 16 percent
of men
When asked the question, "If money were no object, and you could purchase
any boat you wanted -- what type of boat would it be?" 30 percent of
respondents chose a motor yacht or cabin cruiser -- the highest of any other
category. However, this percentage is actually down 15 percent from the 2004
KeyBank survey, which found that 45 percent of affluent Americans preferred a
motor yacht or cabin cruiser.
A surprising 25 percent of those polled selected a sailboat as their boat
of choice, which is up 5 percent over the 2004 survey results. Runabouts and
ski boats earned 17 percent and fishing boats were chosen by 9 percent of
those polled.
The survey also showed a slight difference in the choice of "dream boats"
between affluent Americans in different income brackets. According to the
survey, the more money you make, the more likely you are to desire a motor
yacht, as 39 percent of those earning $500,000 or more and 32 percent of those
earning between $150,000 - $500,000 chose this category. Only 23 percent of
those polled who make $150,000 or less said they would prefer a motor yacht or
cabin cruiser. But, 27 percent of those in this same income bracket chose a
sailboat as their boat of choice.
Overall, affluent men and women had a similar taste in boats, with two
minor variations worth noting:
- More women than men listed a runabout or ski boat as their boat of
choice: 18 percent of women versus 16 percent of men.
- Fewer women chose fishing boats: 3 percent of women compared to 11
percent of men.
Land or Sea for Romance?
When it comes to choosing that great romantic spot, top earners ($500,000
or more) were almost evenly divided between staying on land or voyaging out to
sea. While 48 percent preferred to remain landlocked when spending time with
their sweethearts, 43 percent would rather get on a boat and head out on the
water. Those in lower income brackets within the survey criteria were more
likely to choose land.
Favorite Boating Destinations
Sunshine rules when it comes to favorite boating destinations among the
affluent. Participants were asked to write in their dream destinations if
they could sail any where in the world. Their top five choices are:
- The Mediterranean/Italy/ Greece 20%
- Caribbean 12%
- Various locations in the United States (not including Hawaii)10%
- Hawaii 8%
- South Pacific/Tahiti 6%
Survey Methodology
The survey, conducted by the independent research firm Penn, Schoen and
Berland, polled randomly selected individuals with investable assets of
$500,000 or more, and/or personal annual income of $150,000 or more.
About Key Recreation Lending
Key Recreation Lending, a division of KeyBank NA, is a leading marine and
recreation lender with over 50 years of experience. Key provides retail
financing programs and commercial lending products to over 1,000 dealers
nationwide, including floor plan, real estate and equipment financing; working
capital loans; acquisition facilities; manufacturer programs; and treasury
management services. For more information, visit http://www.key.com/marine or
http://www.key.com/krldealer.
About KeyCorp
Cleveland-based KeyCorp is one of the nation's largest bank-based
financial services companies, with assets of approximately $92 billion. Key
companies provide investment management, retail and commercial banking,
consumer finance, and investment banking products and services to individuals
and companies throughout the United States and, for certain businesses,
internationally.
About McDonald Financial Group
As part of Cleveland-based KeyCorp, McDonald Financial Group offers
integrated financial services -- including banking, estate planning, financial
planning, retirement planning, brokerage, trust, individual asset management,
insurance advice and services, and charitable giving counsel -- to affluent
individuals in offices in 15 states. Securities are offered through McDonald
Investments Inc., member NYSE/NASD/SIPC.
About Penn, Schoen & Berland
Penn, Schoen & Berland is an innovative strategic market research firm
with offices in New York, Washington, D.C., and Denver. PSB has conducted
strategic research for multinational Fortune 500 companies and major political
campaigns in more than 65 countries around the world.
* Most recent available data (2003) on all boats registered in the U.S.
shows about 12.8 million registered boats. The current U.S. population is
about 297 million.
Web site:
http://www.key.com/
http://www.key.com/newsroom/
http://www.key.com/marine/
http://www.key.com/krldealer/
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