The word boat is often used to denote small vessels. Since boats are relatively small compared to yachts, they need medium engine power. Yachts are built for those who want to have a more enjoyable time. The word yacht is used to denote large vessels equipped with luxury and state-of-the-art technology. Both are shown in the shipping industry as vehicles of the same class. The difference between yacht and boat has gained different meanings by spreading word of mouth.