The latest e-newsletter from Fraser Yachts Worldwide has good news and bad news for the luxury yacht charter industry.

First, the good news: The volume of charter bookings following the summer 2011 season is now back at the same level it was in 2007, before the global recession began. This year's bookings are an increase of 25 percent over last year's, the company says, driven in large part by American clients, who have been slower to return to luxury charter than Europeans.

However, Fraser continues, there is still a challenging undercurrent in the industry. Since 2007, many more yachts have entered the charter market. This means that while demand has returned to previous levels, the supply of charter yachts is now far greater. That means continued pressure on weekly charter rates, and fewer bookings-per-yacht than owners may have experienced in the mid-2000s.

While the overall trend is good, Fraser states, "not everyone will experience the current market as healthy."

In addition, current wrangling about value-added taxes in Europe is a threat to the charter industry in the year ahead. "Action must be taken to protect the charter market for the future," Fraser's newsletter unequivocally states.