If you think that the typical client for a yacht charter vacation resembles Mr. and Mrs. Howell from “Gilligan’s Island,” think again! There may have been a time when a yacht charter vacation was reserved only for the “Rich and Famous,” but today, the typical yacht charterer could be anyone from a young hip professional seeking the ultimate party experience, to a family who wants the vacation of their dreams!
Knowing that the market for yacht charter is wide open and growing, has a lot to do with helping you to get the most out of your charter income program.
Many people who consider a yacht charter already have some experience on the water. They may have owned, or spent time on smaller boats, and want to “step up” to the ultimate experience of a luxury motor yacht charter. But boating experience is not necessary. All it takes is a sense of adventure, and a desire for the experience of a lifetime.
A Charter Boat for Everyone
One of the main reasons why charter vacations and destinations are becoming more attractive and accessible to almost anyone, is the changing demographic of the typical yacht owner. In the past few years there have been many more luxury yachts that have been built that are ideal for yacht owners interested in charter income. Since 2015 the luxury motor yacht industry has continued to rebound. The strongest sales category has been in the 70ft – 140ft range. Many of the yachts in this range have been designed with owners who would like to offset the purchase price by placing their yachts in a charter fleet in mind.
The strong sales in this category, have made many more boats available for charter. This has made the costs of chartering a luxury yacht more affordable. In addition, since each charter boat provides its own unique experience, this has also lead to a greater number of charter itineraries available.
Which all adds up to luxury yacht experiences that are perfect for: families with children from toddlers to teens, groups of friends or business associates, or even that special romantic getaway for just you and your special someone.
No matter how you wish to use your vessel as a charter yacht, from corporate events to family vacations, there is likely a target market for you out there!
How Much Can I Earn in a Charter Income Program?
How much you can actually earn chartering your yacht is a very tough question to answer – simply because there is really no such thing as a “typical yacht charter.”
You need to enter into a yacht charter program with the mindset, not so much to make money, but to offset expenses. Generally speaking, once you put your motor yacht into a charter fleet you can expect that the charter management company will take care of most, if not all of your yacht’s “everyday” operating expenses, including: insurance, dockage, and maintenance. In addition, programs like On Demand offer “offsetting credits” for maintenance and repair work done to your yacht. Either way, once you have agreed to enter into a charter income program, you should expect to pay little or nothing towards the routine operating costs of the vessel for the duration of your contract. That alone can save you as much as 70% of your annual operating costs!
In addition, there are many more pros to putting your yacht into a charter program, such as:
- You may also gain tax advantages, saving you more money.
- You will know your yacht will be safe, secure, and well maintained.
- Your engines and other critical systems will be used more often, which can actually extend their life.
- When you want to sell your boat, charter gives you great exposure, and “try it before you buy it” opportunities.
If you enter into a yacht charter management program with the mindset that it is not a “business venture” but a way to reduce the expenses of owning a motor yacht, as well as broadening your own usage possibilities, you will come to realize what a great opportunity it really is!
Operating a motor yacht can be costly. You can reduce your expenses, and avoid costly repairs by keeping her well maintained. On Demand yachting from FYM can help. If you would like to learn more, or if you have any questions or comments about this blog post, do not hesitate to contact our Yacht Management specialists, or call us at (855) 318-6328.