Giga Yacht vs Mini-Cruise Ship

Solas < 36 passengers

Maybe this link could help.

http://caymarad.org/yachts.htm

Mega Yacht Charter

Mega Yacht Charter is a multi million dollar business.
In main season is it hard to find a free Charter Yacht.
Seadream and others fill this market with small Cruise Ships over 40 cabins etc.
They are booked for BWM or Mercedes Benz Management for Events like the Formular 1 in Monaco etc.
The feeling to be on a Cruise Ship or a Yacht i think depends on the yacht experience of the complete Crew. Steward/ess who have long time worked on a cruise ship are not always able to fullfil the wishes of Private yacht owners or guests.
Also on Cruise Ships you will not find a special Owners Cabin or an owners deck.
Charter a Yachts means often 1 person pays for all. On a yacht it is not possible to book only one cabin you always have to book the yacht.
There are some concepts coming up like time sharing ( Benetti Whale Club, )

Here i also copy a statemant from an other site where this item is still discussed:
Author = joelemarco , Monaco

I am unfortunately adding a bit late this comment on this topic that has been discussed a little while ago but I think I will also entertain the discussion about mega charter yacht and mini cruise ships. I have made a comment of the same kind on another forum but what has been discussed here gives me the opportunity to try to bring new elements to it.
We have seen indeed over the years as yachts were getting bigger a new tendency of mega charter yachts and mini cruise ships. I am making this difference on purpose because I think it does exist even though it not necessarily obvious.

Before yachts were always smaller than cruise ships and it was quite simple to make difference between them; and it is true that size was the first point to make the difference. For the past 5 years, it is not the case anymore. Some yachts are bigger than cruise ships and are much more complex though still have this blend of luxury but in a scale multiplied threefold.

Nevertheless, one point would seem at first glance to make a clear difference between mini cruise ships and mega charter yachts, which is the layout. Cruise ships even the smallest ones are very much comparable to one another on their layout which is very simple with no such research founded on mega charter yacht as for instance on Annaliesse and her great sub spa deck which is the experience of Liveras large charter yacht (Princess Tanya f.e.).

Linked with the layout is the charter formula. Vessels like Constellation, Tia and Tu Moanu, Le Levant are mini cruise ships because you rent them by the cabin and not the boat itself. Which is not the case as far as I know for Annaliesse, Omega or Turama, even if the latest is really a in-between-the-two-categories vessel as you can charter the whole boat so its seems private charter on one hand, but on the other hand she looks like a cruise ship. However, we must not forget that when she was relaunched Christina O was available on for charter either by the cabin by TauckWorld or privately. And Christina still looks a yacht though now Solas compliant and Turama doesn’t look like one.

Look is indeed one of the arguments that could make the difference between the two categories. Annaliesse and Alysia look more like yachts than cruise ships which is not really the case of the two Moanus and not at all of Constellation.

Then, these two categories have a tendency to mix each other because both actors from the cruise ships and yachting worlds have understood the interest of the famous charter yacht issue of 12 passengers’ limit which has been a great opportunity for both domains.
In yachting, this new kind of yachts like Annaliesse has been created to overpass it. And for mini cruise ships, vessels like the two Moanus show that there is a greater and greater interest in small group cruises at a reasonable cost compared to 500 or 1 000 passengers’ vessels with much more privacy and also at a much reduced costs that big yachts.

Furthermore on charter issue, we are quite confused to make a great difference between them because we used to separate clearly commercial vessels and yachts. But today many yachts are registered are commercial vessels. It is true that this is often for economical reasons and some are not even available for charter. Nevertheless, some vessels are almost entirely purchased or built for charter purposes - which was not the case some 15 or 20 years ago - and this makes them real commercial vessels. This is the result of the great development of charter business and it is quite normal that for this commercial act, yachting has been influenced by commercial and work boats.

Finally, as we have been speaking here about prices, the cost would make the difference as one would have a yacht finish and would not have cabins already pre assembled like in a cruise ship, which is surely the case of vessels like Constellation, which we have seen at last Monaco Yacht Show. The other would in general have a greater finish and care on details.
But further in this cost issue, I think originally built cruise ships represent a great interest today for owners who are interested in these mega charter yachts.
Firstly because the global cost to convert them as yacht is much less than to build a yacht of the same from scratch. This is same reason why some owners have decided to take commercial vessels like tugs to convert them as expedition’s vessels.
And secondly, these cruise ships provide, like commercial vessels for expedition projects, standards of safety higher than yachts. As a matter of fact, we can see that over the past 5 or 10 years the yachting industry has been inspired in terms of rules, safety and management by the professional universe of cruise ships and other commercial vessels. The fact that yachts over 12 passengers have to comply to Solas rules shows that these two worlds are closer than ever. And it is no coincidence that Azimut Benetti has teamed up with V Ships to buy Fraser Yachts.

So, for all these reasons we are more and more puzzled like Barh100 have clearly expressed, about the common fields of these two worlds, who are sharing now sharing more than ever before. To my mind, even if these vessels seems to be equal in genre and if it may be a stupid and weird difference to make between this 2 categories, I think it exists although it is true that over the last few years mini cruises ships and mega charter yacht have had a tendency to mix each other. Just take Panorama the 54 mt Greek sailing vessel: a yacht size but a cruise ship finish and layout. So is she a mini sailing cruise ship or mega charter yacht?
For my opinion, it was necessary for yachting to professionalize and organize itself and it is great to have used the input of commercial boats, even though there has to remain a limit. Even for yachts purposely built for charter (and especially those for over 12 passengers), the temptation to make them simple commercial vessel is great and they would then loose all the yacht appeals: style, balance, expression and personality, that make yacht unique pieces of art well apart of other floating creations.

Moanu

Sorry but i only can show this link.

http://www.finesthotels.net/yachts-motor-gr-pop/Turama.pdf

Good luck.

The Charter Yacht Market

The trend for these larger yachts, particularly those built to the SOLAS 36 rules and those designed specifically for charter market is an interesting one.

I apologise in advance for the long essay.

Before we can comment on the future of this market and its effect on the existing market we should first take a look at how the market has developed to this point. In affect look at the historical perspective as you say Newbee.

The large yacht market had developed over the last 30 years or so. In the twenty years that I have been involved in the industry yachts have grown from an average of 30m to 50m with many of the new launchings being in the 75m range.

These yachts were primarily built by wealthy people for their own private use. Being private vessels they were not constrained by the stringent safety rules of their commercial counterparts. As time progressed many more of these yachts joined the charter market to offset the high running costs of these vessels. This development has born a whole new industry for yacht supplies and services.

This last 30 years has been the second golden age of yachting, the first being in the early part of large century, and one which has seen yacht building push through the fad stage.

One can probably put this down to a number of things including the development of communications, which has allowed the wealthy business leaders spend more time at sea whilst maintaining contact with their offices, and the foresight of many people in the industry to recognised that a charter market exist for these vessels. This has sporn a whole new industry supporting thousands of people and businesses solely dependant on this industry.

Before commenting further on development of the charter market and the cost of yachts I think it’s important to discuss yacht definitions. Often in forums many terms are used to describe yachts i.e. luxury yachts, superyachts, mega and gigayachts. Many of these terms are created by media and industry commentators but only serve to muddy the waters. It’s my opinion that there should only be two descriptions, those being luxury yachts and superyachts. The industry generally has adopted the name superyachts as being the term to describe the finest yachts built in the world. The international organisation which awards these yachts and which endeavours to give the industry a voice is the Superyacht Society.
So what is a superyacht and were does it sit in the current charter market and the developing new charter market.

In my opinion a superyacht is one which meets the highest standard in design and construction. At its time of launching she will be peerless, be the most advanced in terms of technology and display best industry practice.
Superyachts are not built merely by tradesmen but by craftsman and artisans. These are people that have incredible pride in their work, can be critical of there own work, in private, but will defend the name of the yacht to the last. They are usually the first on the job in the morning and the last to leave.

Many of the owners look upon building a superyacht as creating a piece of art. They enjoy the process of creating a one off piece that reflects their own personality - their statement to the world.
Who can create such a thing of beauty, fulfil an owners dream?
An artist of course!
We call them yacht designers. But the owner looks at the yacht designer as an artist and commissions the yacht designer to create his piece of art, the world’s largest sculpture, just as he would commission an artist to produce a fine painting.

That’s a bit extreme I hear you say!
The motivation to build a superyacht may vary from the cut and dry to the extreme but put yourself in the shoes of someone who has billions of dollars. Ask yourself what motivates them to build something which has the finest marbles, linens, timbers and veneers - where the designer scours the world for the unique and unusual. Then ask yourself is this the type of yacht you would put into the charter market and expect to get a return on your money.

Nowhere in the world will you find the quality and finish of a superyacht. Not in the best hotels, nor the finest homes or the best of cruise ship’s. Perhaps some palaces?

It’s difficult to compare yachts which have been built in the past to the new generation of yachts being built for this new emerging charter market because the motivation to build them is different.

The motivation for you to buy a work van is different than that of a sports car.
The work van you buy using your head. It’s purely a business transaction.
The sport car you buy from the heart. Buying a yacht is the same.

As mentioned before by myself and Crewagency the yacht charter market has emerged from owners trying to offset the high running costs of their yachts. These yachts, due to the nature of their complexity, do not lend themselves to the rigorous day to day running of a commercial operation.
However some entrepreneurs have now recognised that this market has potential for short charters, day charters and conventions in the corporate sense as mentioned by Crewagency in his comments.

To realise this potential we must now think like business managers and consider return for money. To achieve this, these new bread of yachts must be more economical to build, have simpler onboard systems and must achieve more charter days per year.

I have recently been involved in the design of one of these new bread of SOLAS yachts. Whilst I can’t divulge to many details of this vessel I can say that the design brief was to design a vessel which has minimal down time and onboard systems which are more akin to a commercial vessel than a yacht. This is described as KISS - Keep It Stupidly Simple – or some might say Keep It Simple Stupid.
Of course I should also mention that with these large yachts being built to full SOLAS comes a new bagful of hurdles with regards to the rules. Rules not often encountered in the yachting industry. The most obvious is the requirement for SOLAS lifeboats. I’m sure that as this new category develops we may see new inventive ways to achieve certification and the odd rule change. Some vessels may achieve certification through restriction to certain operational areas.

In conclusion I think this new category will develop without too much impact on the existing market. We must however keep in mind when we are discussing the various areas of the market that we don’t bundle all yachts into the same pot. Keep in mind that some of these new yachts will not be superyachts in the true sense of the word and may fall at the lower end of the yacht charter market in terms of style, finish and price.
It is inevitable that entrepreneurs will endeavour to capitalise on the dream that we all have, but very few of us can experience, of chartering a luxury yacht or superyacht.
I think it’s also important that any yacht built specifically for charter doesn’t lower its standards in terms of ‘yacht quality’ to the extent that it will detract from the ethos of yacht building. Where yachts were built first for private use and then utilised as a commercial venture will now be built as a commercial yacht purely for making money.
When is a yacht not a yacht?

In terms of your comparisons of this industry to the mini cruise-ship (or boutique cruise-ship) industry I think it’s important that we remember that they are very different animals. As Crewagency explained you pay for a cabin on a cruise ship whereas with charter yachts you pay for the whole vessel.

I think this discussion can create more questions than it does answers.

I’ve just finished reading marketing book that discusses how icons are made. The conclusion, by the author, is that icons can only exist if they are built around a myth and that we buy a particular product to live the myth.
This is not unlike the yacht charter industry where we dream to one day charter a superyacht.

Let’s hope that the quality of these commercial charter yachts can be maintained as to not diminish the myth.


Stephen.

Newbee if understanding the price of yachts and determining the new build price was easy I’d be a rich man and lots of yacht builders wouldn’t go broke.

I’m not sure I completely understand your theory about build, buy, rent. Are you saying why build or buy when the charter returns don’t put you in the black?
Or are you having trouble understanding why vessel prices vary so much between similar sizes of yachts.

With your reference to the buyer of the apple tree I think the assumption you are making is that they are buying the apple tree for commercial purposes. I think most will purchase a yacht for private use and then charter to offset some of the expenses.
I think it’s interesting to note as well that some yachts, especially those in the superyacht end of the market, given the right design and designer can over time appreciate in value.

So at the end of the day maybe the owners just want to offset their maintainance cost, hopefully in time their yacht may appreciate in value and in the meantime they enjoy yachting.

The owners who are building the SOLAS 36 vessels are maybe building for purely commercial return. Therefore the only way to get a commercial return is to build a cheap vessel.
Cheap may mean lower quality finish and maybe not even luxury yacht quality.
Is this what the charterers want?
Do the charter guests expect a certain level of quality and service?
Will the industry will need to introduce a quality rating system similar to hotel star rating?
It would be interesting to hear from some of the charter managers to get their views.

Luxury Yacht Charter

I'd like to know the answer to that as well.
I think these are questions best answered by an owner and/or a charter manager.