10 Key factors for optimising charter success

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Welcome to Yacht Charter Market, the weekly newsletter dedicated to the world of yacht charter.

In today’s newsletter:

• Top story: 10 Key factors for optimising Charter Success

• Charter updates: IYC, Fraser, Cecil Wright, and Superyacht Partners

• Destination spotlight: Grenada ☀️

• Post of the week: @ypiyachts shares a reel of 49.6m Stern

TOP STORY

10 Key Factors for Optimising Charter Success

At the recent Fort Lauderdale International Boat Show (FLIBS), Heather Hatcher, Senior Charter Manager at IYC shared insights on the benefits of yacht chartering and the essential elements of a successful charter operation.

Why Charter Your Superyacht?

Owning a yacht requires a significant financial commitment, with ongoing costs for docking, fuel, crew salaries, and maintenance. Heather highlighted that chartering can offset some of these expenses, though it shouldn’t be seen as a guaranteed profit source. Instead, chartering helps cover costs while keeping the yacht active and well-maintained, ultimately enhancing its value and the crew’s job satisfaction.

A well-run charter program increases a yacht’s visibility and attractiveness to potential buyers, as an established charter history can appeal to those interested in an income-generating asset or those with fond memories of chartering the yacht themselves.

10 Key Factors for Charter Success

1. Choose the Right Yacht in Excellent Condition

Hatcher underscores that yacht buyers, especially those entering the charter market, should balance investment logic with emotional appeal. Key factors to consider include zero-speed stabilisers for guest comfort in rough waters, particularly in popular regions like the Caribbean and Mediterranean, and a high crew-to-guest ratio to ensure top-tier service. For destinations like the Bahamas, a shallow draft provides better shore access and anchoring options. 

Competitive pricing, previous charter history, and unique selling points enhance a yacht’s appeal, while comprehensive insurance, covering diving and business interruptions, safeguards the investment and guest experience.

2. Select the Best Flag for Your Goals

Your yacht’s flag can influence charter availability. While private registration can work well locally, some foreign flags restrict charter operations to a maximum of 12 weeks (or 84 days) per year. “Though it may not sound like much, 12 weeks is considerable, especially factoring in maintenance, crew vacations, and your own time on board. Most owners use their yachts for only six to eight weeks a year, leaving ample time for charters,” explains Heather.

3. Employ Talented, Full-Time Crew

A skilled crew forms the backbone of any charter. Experienced captains, versatile chefs, and specialised instructors contribute to a memorable guest experience, while a motivated, well-trained team enhances the yacht’s reputation and attracts positive reviews and repeat bookings.

4. Choose the Ideal Location

Location greatly affects charter bookings. Work with your charter manager to identify destinations that align with both personal and professional goals, as certain locations are more popular than others, impacting the number of available charter weeks.

5. Include Desirable Water Toys and Amenities

Water toys like inflatable slides, floating pools, and e-foils can enhance the guest experience and attract bookings. “The right selection will enhance your yacht’s appeal. A floating pool with a cabana creates a Beach Club vibe, while inflatable slides and climbing walls elevate guest experiences. The E-foil is the top water toy right now, frequently requested by brokers, and essential for some charter clients—well worth the booking appeal despite some risks,” shares Heather.

A tow tender, particularly in regions like the Bahamas, is essential for diving, fishing, and island exploration. A 100-foot yacht should ideally have a 30-foot tender, while larger yachts may feature 45 to 50-foot tenders, which can sway guest preferences.

6. Ensure Competitive Pricing

Work with a charter manager to establish competitive rates based on the yacht’s amenities, guest capacity, and location. Offering unique features, such as inflatable toys or large tenders, can enhance value. Proper insurance coverage is also essential when entering the charter market. Owners should ensure their policy includes a charter writer and cancellation protection to safeguard against revenue loss due to unforeseen cancellations.

7. Maximise Calendar Availability

The more flexible the yacht’s calendar, the higher the potential for charter income. Hatcher notes that many owners use their yachts for just six to eight weeks annually, leaving ample time for charter operations.

8. Engage in Industry Events

Attending boat shows, hosting open houses, and maintaining a social media presence are effective ways to showcase your yacht. These efforts help build relationships and attract prospective charter clients.

9. Create a Strong Social Media Presence with Quality Visuals

To effectively promote a yacht, a strong portfolio of images and videos is essential. Investing about 10% of the weekly charter fee in a professional photo and video shoot can yield high returns. Listings with quality photos attract 30% more visibility, which increases to 50% with a good charter-focused video and 70% with lifestyle-oriented images. Compelling imagery is as critical as choosing the right yacht, while including social media in the marketing strategy amplifies reach.

10. Hire a Professional Charter Manager

Heather’s presentation emphasised that an experienced charter manager can assist in navigating the charter market, ensuring compliance, creating tailored marketing strategies, and connecting with clients and brokers. Their expertise simplifies operations, allowing owners to focus on enjoyment.

As Heather shared at FLIBS, chartering offers owners substantial benefits, from cost offsetting to value enhancement. However, prospective charter owners should approach this market with a strategic plan, considering yacht selection, location, crew quality, and marketing. With the right approach and support, yacht owners can optimise their investment while enjoying the unique pleasures of ownership.

To get in touch with Heather Hatcher, call her at +1 954 683 2148, or email her at [email protected].

LATEST CHARTER UPDATES

New CA: Aiko

Superyacht Partners have announced their appointment as Co-Central Agents for the 34.2-metre Alloy Yacht, Akiko.

• This yacht will be available for charter on Australia’s East Coast, with a base in Airlie Beach, offering guests the opportunity to explore the Great Barrier Reef and Whitsunday Islands from 10 January 2025 on. 

• She is available at a flat rate of AUD $155,000 for winter & summer 2025.

• Learn more here

Special Offer: Pandion

For charters aboard the 37m Heesen yacht Pandion next summer in Greece, IYC is offering a 15% discount for all bookings signed until the end of December.

• Rate: From €68,000 p/week + expenses

• Learn more here

Destination: Formosa

The 59.99m Benetti superyacht Formosa is available for charter in Bermuda this June with Fraser.

• Rates for the summer season start at €400,000 per week, with high season reaching €440,000

• Winter rates range from $400,000 to $450,000 per week. 

• Learn more here

New for charter: Polestar

The 70.2m Rossinavi yacht Polestar is ready to welcome her first ever charter guests with Cecil Wright.

• Accommodating up to 12 guests in six suites, including a Master with panoramic views and a private office, the yacht also hosts a crew of 18.

• Rates for the Winter Caribbean season start at 720,000 EUR a week.

• Learn more here

Yacht Charter Market: Presented by YachtEye

Yachteye at FLIBS 2024: Connecting with crew

The Fort Lauderdale International Boat Show (FLIBS) 2024 was an amazing experience for the Yachteye team! Daniel and Rie, both former yacht crew members, were thrilled to reconnect with the yachting community, sharing stories, insights, and new ideas with today’s crew and industry professionals.

As former crew, we understand the unique challenges and opportunities of life on board. Yachteye was designed to meet these needs, providing a platform that simplifies daily operations and enhances the onboard experience for crew and guests alike.

FLIBS offered the ideal setting to connect with the community, gather valuable feedback, and showcase the latest developments in Yachteye. We’re inspired to keep pushing forward, supporting crew members with user-friendly technology tailored to make life at sea smoother and more enjoyable.

Thank you to everyone who made FLIBS 2024 a success. Here’s to more great connections and exciting innovations ahead!

Seamlessly connect your yacht, crew and guests on one platform to share the fun! Visit yachteye.com or contact [email protected] to learn more.

DESTINATION SPOTLIGHT

Grenada

Grenada, the Caribbean’s “Spice Island,” is an idyllic superyacht charter destination known for its stunning beaches, vibrant marine life, and lush rainforests. Along its coastline, Port Louis Marina in St. George’s stands out for its high-end facilities and easy access to Grand Anse Beach and nearby Carriacou, perfect for snorkelling and relaxed outings.

The island’s high season spans December to April, offering sunny, dry weather, while the warmer low season runs from June to November. Grenada’s underwater sculpture park and coral reefs delight divers, while rainforests provide a habitat for exotic bird species.

On land, charter guests can explore Annandale Waterfall or Belmont Estate, a historic cocoa plantation. Local culture thrives through drumming performances, craft markets, and unique dishes like oil down, a breadfruit and coconut stew. Dining at BB’s Crabback in St. George’s offers an authentic taste of Grenadian cuisine with a waterfront view.

POST OF THE WEEK

ypiyachts

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