The Dark Side of Owning a Yacht in a Charter Fleet

[Wavewacker]

The point was market saturation in a local market. Trashed boats and those that were taken care of are not comprable, even if they are badged the same. Markets can be manipulated, easier on a local level, oil would be another good example. Just say'n...

[travler37]

Originally Posted by Otia

I currently own a sailyacht that is under contract with one of the major yacht charter operator. I’m anxiously awaiting to retire my s/v from the charter fleet this March.
This post reports on my personal experience, YMV.

Many charter operators promote guaranteed revenue plans. Those schemes significantly limit your sailing; you will have your s/v available to you only a few weeks per year to the extent you will most likely have to sail in the off season. For a snowbird like me it does not make sense. After all, I take on the financial burden of capital costs and losses thru depreciation, and I don't get to use my s/v during the winter. I might as well charter a yacht…

I choose not to enrol on a guaranteed revenue plan with my charter operator, so I could chose to sail as much as I wanted and when I wanted, provided I reserve well ahead of time. Of course the more I use the s/v the less revenue I made, thus I might have to put my hand in my pocket to cover some of the operating expenses. That’s fine, but one would expect it would be actually less expensive than booking a charter, but It might not be so…

Not adhering to a guaranteed revenue plan has severely devious effects.
Firstly the operator is possibly more motivated to get bookings on those yachts he’s committed to with guaranteed revenue plans.
Secondly, and most annoying, the charter operator is not motivated – at all – to reduce expenses, all to the contrary:
- He makes money on services provided to you (own staff, markup on subcontractors, parts, etc)
- He wants the yacht in a “as new” condition at all times, not sparing any expense to satisfy his customers; of course, you’re the one paying for it…
- Though charter customers leave a deposit to cover damages they induce, it is against the operator’s interest to start arguing with its customers. Its easier to charge it to your account…

Hope this point of view may help you make the decision that is right for you.

Hope this does not come out wrong but what exactly did you expexct?If you go into this kind of a contract then you had better be able to read beyween the lines or stay out of it.
Am sorry you didnt,Chalk it up to life experences and thank you for posting to openning eyes to what a FREE boat is.
Mark
Ps.Resale value on the boat once it has be in charter is.............

[Ram]

Originally Posted by Palarran

This is very true but I'd like to point out that the work done is typically up to the quality of the yacht. I mean, we aren't talking about Swan's or Amel's here. I like to hire the charter guys to work on Palarran. The charter company pays them $8 per hour. I pay $10. They do a very good job for what I have them do and it is really affordable. And, I like the guys

In my case, I pay a good man $100 per week to clean and care for my boat. When I show up he has everything perfect for me. He walks around and shows me little things he has cleaned or repaired. There literaly isn't one speck of dirt on the boat.

As far as charter boats go though, wow - I have seen them abused many times. There have also been great sailors who returned them in as good a condition as when they went out. They simply get used a lot. It is surprising that anyone would think purchasing a charter boat is a good investment though. It's probably as stupid as purchasing one for personal pleasure instead of chartering whenever you want to go sailing.

Just wondering where your getting those guys for $10 an hour - I could use one about now- Im in S. Florida

[pressuredrop]

Originally Posted by Ram

Just wondering where your getting those guys for $10 an hour - I could use one about now- Im in S. Florida

what do you need help with ram, i may be able to help, pm me...

[Ex-Calif]

So many paradigms, so many urban legends, so few facts, so many opinions...

Any used boat will have warts - charter or not
Charter deal - they need capital to buy a fleet - they use your capital
Charterers want nice, plastic, clean and serviceable boats - that requires maintenance
The boat makes revenue when it is rented to someone besides owner - if owner wants many weeks during peak season the economics dont work out as expected - that is not the charter operators fault
Owner wants someone else to pay for boat - chartering seems like a good deal - but owner should not think of boats as "his" until after charter period as up till then it is an investment

So you dont get a "boat" until after charter period - just buy one coming off charter.

Several friends have done so and several friends are happy with that.

[Mactrigger]

Well...despite the comments about the dark side of the charter buisness enlightening as they are...

I am still looking for owners who wants to share their own experiences good or bad with Dreamyacht and the others such as Moorings or Florida yacht... I need crudes facts... How well is your boat after 4-5 years in the charter!???

As for the resale value after a few years... got any major problems to resale your boat?...

If you had no choice but to leave a catamaran in the charter buiness... Would you go for... Leopard / Lagoon 400 or FPajot...41?

(PTN / Acces to my boat while in charter would not be an issue for me)

Merci pour votre aide!
Thanks for your help!...