If you have ever considered whether it’s worth making your yacht available for charter, here are some of the key facts and figures you might need to get you started.
Put simply – a yacht placed into charter management can attract a number of tax advantages that will help reduce the cost of the yacht, and with the income generated through charging others for its use, offset the overall cost of ownership.
WHAT ARE THE “OPERATING” COSTS?
The expenses are similar to those of private yacht ownership. The fixed costs – those that have to be paid whether or not you charter your yacht – include berthing, insurance, maintenance and crew. The variable costs might include additional crew (depending on the yacht size you might consider hiring additional crew: like a chef, or additional stewardess for high season), promotional or advertising costs. These would all be built in to the overall cost for the client and charged on.
WHAT WILL MY CHARTER INCOME BE?
A yacht owner typically receives around 80% of the gross charter fee. A yacht charter management company like Princess Charter should be able to achieve between 6-9 weeks per year. The number of chartered weeks tend to increase as the yacht continues to be marketed, and attracts further interest.
WHERE DO I START?
The key factor to a successful yacht charter is efficient management. You will need to appoint a central agent such as Princess Charter, to manage your yacht, who will act as an agent working between the clients, other brokers, you or your appointed representative and the crew. Your central agent will manage the yacht booking, marketing, promotions, and overall reputation of your vessel.
HOW DO I MARKET MY YACHT?
Your agent will generally offer a charter marketing team, who are experienced in promoting yachts for charter through carefully chosen channels. Most yacht charterers will have a wide network of potential clients and brokers to whom they can promote your yacht. The marketing experts will meet you and advise you on the necessary and additional tools that will help increase yachts profile and maximize the potential business of your yacht.
WHERE IS THE BEST LOCATION TO KEEP MY YACHT TO ENSURE THE SUCCESSFUL CHARTER?
West Mediterranean, especially the South of France and the Balearics, is considered to be one of the most glamorous and most popular areas. Its charming ports, top restaurants, stylish beach clubs, state of the art marinas and gold beaches have proven very popular. Further great locations are Croatia or Montenegro. Over the last few years, Montenegro has been popping up in almost every “yachting hotspot” list. It is a cruising ground of outstanding natural beauty, with yacht-friendly tax and legislation benefits.