How successful is the Charter Market

Are you saying that one specific yacht is chartering from 60´- 650´/week..?

1. They're aiming to get what the boat is worth for the week. A 100' yacht will bring a certain amount, maybe additional if there are more activities or the location is more exotic, etc. Just like the differences in prices between hotel rooms. They are trying to attract a client that would be in tune with someone who would actually own that type of yacht, not destroy it by breaking things, spilling wine on the carpet etc......

2. Some charter yachts have an exceptional reputation and are still heavily booked given the current economic climate. Poor boats or poor crew have effected the charter yacht more in this climate then ones with good reputations.

3. Some locations warrant so many charter boats. Keep in mind, everyone wants to charter on the holiday weeks and there are only so many yachts so certain weeks are almost always full on most yachts.......

Turn back on investment

Hi guys,

Interesting thread which makes me more curious about some questions I have. Already for some time by the way.

Lets say roughly an example yacht cost US$ 25 million. To see it as investment you will have to have minimum 8% back in it a year because otherwise it becomes a lovers job and no business am I right?

So US$ 2 million you need to get back. Break that by 50 weeks a year = 40.000 a week. Now lets say that you will not get more then 30 weeks and also need to pay the crew, maintenance, fuel is included in the week or not?....hum.

Then 80.000 a week is not even a very interesting business.

Now guys correct me where I go wrong.
The 25 million yacht brings more rent a week? Or a yacht like that is easy to rent 45 weeks a year for US$...???

Sorry when these are stupid questions but just very curious.

Nice holiday

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Pay a crazy amount for my holiday.....but!!!! I'm not allowed to smoke, drink, eat breath and guess what is not allowed in the bedroom?

And that only for a few 10.000 a week? Hum that I think people not accept.

However smoking I can understand.

I don't think anyone can make a sound economic argument for yachting as an investment. It has been, is, and always will be entertainment; nothing more, nothing less.

Charter is a way to curb, but not cure the ownership burden.

Charter is a way to introduce a vessel to potential buyers.

Charter is a way to ease your tax burden.

Charter can be a profitable endeavor for successful brokers.

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All agree on that and it is good it is like that. Commerce killed already all sport and many other things. So maybe super yachting keep in shape.

But......still there are companies owning more then 1 vessel and charter it. You think they also do that as a way to advertise the vessel to finally sell it?

Interesting approach indeed and sounds logical.

I know of some bare-boat companies that do it for profit, but it requires several boats in order to spread the costs and risks. I think many people charter their boats for the write-offs or to subsidize their own use. A real, profit-generating business is seldom a realized goal. To charter 45 weeks a year is virtually impossible, especially given the time it takes to move from seasonal locations and down time for maintenance. Plus, everyone wants to book for Holidays, weekends and sunny days. Full-week, off-holiday charters compete with the kid's schools. Chartering for 26 weeks a year would probably thrill most. Fuel and provissioning is usually a seperate charge as is the gratuity.

All good statements, as well as NYCAP's is in tune as well. Most of the time the yacht is chartered for tax reasons as well as to help cover the expenses. 26 weeks a year is considered very good........

As for the $25 million yacht, it should charter for way more then $80,000 week, in most all cases. Guessing around $125,000 week or more......in most cases......if the boat is somewhere around 130-150'.

A friend of mine runs a 100' yacht that's worth about $7mill and cost $9mill to build a few years ago. It charters for $60,000wk +++, and $75,000 or more very busy weeks such as Christmas-New Years. It is pretty darn busy. The Yacht runs a budget of around $1mill a year or so (give or take a little), being almost new it can be maintained perfectly at this amount. It takes 17 weeks to break even, BUT the owner uses the boat quite a bit as well and chartering it allows more justification for more full time crew including a professional dedicated chef, Captain, Mate, Stew, and deckhand so it works out very well for the owner. For the first year it was not chartered and only an expense for the owner. He now blocks out the weeks he wants ahead of time and his schedule allows planning or changing dates if a good charter comes along.

I have an acquaintance that had a Azimut 70 Sea Jet docked at Miami Beach Marina that had the **** thing chartered for almost 20 days each month with the remaining days for personal use. As others mentioned the charter income justified the full time captain and mate as well as taking care of some of the upkeep and dockage but was hardly a money making enterprise.

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This makes indeed sense. Never thought to look from that side. Maybe because I would never dare to let people use my boat.

However with a good crew your dream is still safe. Probably mine is too small as also no crew involved...

Charter vessels are seldom in the condition of a private boat. They get more hours and a lot more wear. As for crew with a small boat, the one thing you need is someone to manage the boat. Preferably that should be your captain or, if qualified, that could be you. There are several husband and wife teams out there. You need someone with knowledge of maintaining a boat and some accounting skills. Some boats; some places you can put your boat into a charter service where they'll handle everything from crew to booking to maintenance to provisioning. Understand though that the less you participate in the process, the poorer your boat is likely to be treated.

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Clear and indeed like with everything...the less you care the worse they treat your belongings.
But when you get on the net and see what is all out for charter I ask myself if there is not too many boats out and too little people. Lets be reasonable, how many people can pay 100.000 a week or even far over that to rent a boat?

Or am I wrong here? I think is also sorta answer to get out here in this topic.

Also I see that 99% is out in the Med and Carib's. But I live now in China and I can imagine that around Philippines, Malaysia, Indonesia it will be great to charter.

Or is the price as well depending on the area the boat is chartered?

BTW, the Chinese get far more to spend and they go now on short holidays and pay incredible amounts. Maybe there is a new market....

Price is totally dependent on the boat and the area. You should contact a charter broker and ask them about the boats they represent in your area. Then compare your boat to something comparable.

For Americans?
Nah, pirates, muslims, strange food, no paparazzi... You'd have to be Dutch to expose yourself to all these dangers.

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Think it is meant as a joke partial.

But the food is amazing ...for me. Lets say when you like KFC and Mac then I stop further talking.
Muslims? What's the problem with them in Indonesia? I'vent had any problem. Yes, middle east...there it sucks.
No Paparazzi...hum till now I see hardly any pictures from celebs on yachts...the few we see are hopefully not covering all charter market.

And pirates? Yes some places around Indonesian they are...but is it not known where so easy to stay away from these areas?

And Dutch indeed like some action in life maybe, that's why I live in Asia. Can always stay home in Holland and run over by a shopping car crossing the parking.

Yes was a joke, partially though.

I have been a shore agent for visiting superyachts in Hong Kong. Most of these yachts were American owned. After arrival the standard questions were:
"Is is safe for the girls to go ashore?" and "Where can I get bacon? Immedeately followed by "I mean American bacon".

I always answered that you can get completely ****faced, pass out on the street and wake up the next morning with your wallet untouched in your pocket and that you can get everything you like in Hong Kong apart from the Fox Network.

No offence, but many Americans haven't got a clue what life is like outside of their borders. Their only source of information is the Fox Network. (again, no offence to all those who do think independant and who have travelled and experienced the real world)

I personally would not even consider cruising the West Indies or the Med after having cruised the South Pacific myself.