yachting industry

The fun in yachting: charter manager &

charter broker

International University of Monaco

1st of February 2021

Cluster Monaco – 24th March 2016

CHARTER MANAGER

WHAT MY CLIENTS THINK I DO WHAT MY BOSS THINKS I DO WHAT MY FRIENDS THINK I DO

WHAT MY PARENTS THINK I DO WHAT I THINK I DO

WHAT I ACTUALLY DO

The story so far…. The charter industry remained largely unchanged for many years but the internet, volatile financial markets and increasing regulation have introduced many changes to the way we work.

ORIGIN The first known charter operation launched on

s/y Mollyhawk by Commander Nicholson

EXPANSION As the travel market

expanded so did yacht charter

TECHNOLOGY Satellite and improved

communications brought more freedom and possibility to yacht

charter

BOOM 2007 and 2008

were record years for yacht charter

CRASH Industry slowdown as the effects of the recession took hold

ADAPT The internet allowed new competition to

flourish

REGULATE Introduction of

VAT to charters in EU brought a

whole new wave of complexity

INNOVATE Introduction of

ECPY Transport Contract

1949 1980 1970 V.A.T. 2013 2009 2017

T H E A U T H O R I T Y O N Y A C H T I N G S I N C E 1 9 4 9

0 5C H A R T E R M A N A G E M E N T W I T H N O R T H R O P & J O H N S O N

G L O B A L C H A RT E R F L E E T

1,650 YACHTS GLOBALLY ——

800 CHARTER BROKERS ——

94% MOTOR YACHTS ——

WEEKLY CHARTER RATES FROM: $10,000 TO € 1,500,000

——

71% IN THE WEST MED ——

CHARTER BY LENGTH

——

5% 34% 30% 18% 7% 6%

UP TO 20M = 20 TO 30M = 30 TO 40M = 40 TO 50M = 50 TO 60M =

60M + =

Charter Regions The below are the key cruising areas at present. The Galapagos and Antarctica are also firm favourites for the more adventurous and are more challenging charters to book.

Mediterranean Still the no.1 stomping ground for charter yachts offering so much diversity May - September

Caribbean The principal winter destination with guaranteed weather and easy to reach December - May

Bahamas A popular cruising ground for the American market December - May

Seychelles & Maldives Pristine beaches and a quieter alternative to the Caribbean February - May

South East Asia Increasing in popularity, with Thailand and Indonesia leading the way Year round

Tahiti and South Pacific An alternative summer destination to the Mediterranean Year round

Australia and New Zealand The principal winter destination November- May

Baltic The Norwegian fjords in particular offer great sheltered cruising May - August

F.A.Q. 1. Can a charter yacht be profitable?

The break even point is estimated at 10 weeks of charter per year. This will depend on the size and style of vessel

2. Is there a maximum number of weeks a yacht can charter annually?

The sky’s the limit of course but when allowing for relocation, routine maintenance, crew down time and off peak periods the upper limit would be about 20 week

3. What is the difference between a Charter Broker and a Charter Manager? Doesn’t the Charter Manager ‘manage’ the charter?

The distinction is that the charter broker represents the charterer and the charter manager represents the yacht owner

4. What is the role of charter brokers in the future as the internet makes information more accessible? Is there much hope for the intermediary?

My colleague Pierre Hurel said it well ‘Being an intermediary is easy and what is easy is never very lucrative. Instead we must become actors, always present, taking initiative, guiding our clients and presenting the difficult truth in the most attractive terms’.

CHARTERER

CHARTER BROKER

CHARTER MANAGER

PA

CAPTAIN

OWNER

PA

Travel Agent

Yacht Manager

Sales broker

The Players…cont. A more in-depth look at the key players in the charter process and how they function

OWNER

UHNWI - Predominantly American or European

The key to a successful

charter yacht is flexibility; with pricing, with dates

and the location

A good charter yacht will be well maintained with a good investment into the

Captain and crew

CHARTERER

The largest market is still America, yet charterers

come from all backgrounds

CAPTAIN

Must have excellent interpersonal skills, be

calm under fire and creative

The Captain and crew are often a deciding factor in choosing a charter yacht

CHARTER MANAGER/

C.A.

Predominantly based in yachting hubs of Florida and the South of France

Needs to provide fast

and accurate information to the

brokers.

Should have a close relationship with the Owner and Captain

Should have some

cruising experience, sales skills and an

organised mind

BROKER

Predominantly based in the yachting hubs and in

cities such as London and New York

Need excellent market knowledge and of the

charter agreement

Need to understand the challenges/regulations of

the world’s cruising grounds

Need to find the best match for their client

Expertise Passenger Vessels

Research Vessels

Shadow Vessels

Dive Butler

Occasional Workers

ECPY Transport Agreement

Marshall Islands Private Commercial Regime

Remote Destinations

Charity Charters Auction Prizes

Regatta Charters

San Blas Islands

Raja Ampat

ANTARCTICA

Hurricane Addendum Corporate Charters

EVENTS

V.A.T.

Charter fee,

APA, VAT,

delivery fees

Dates

Ports

Itinerary

Price

negotiation

Marketing,

Events

Special requests

(dogs, weapons,

doctor…)

Relationships

management:

owner, broker,

crew

Administration

Contracts

Potential

issues:

COVID-19,

breakdown…

Charter & Yacht

regulations

C H A R T E R M A N AG E M E N T

W I T H N & J T H E C H A R T E R E X P E R T S O F

N O R T H R O P & J O H N S O N

Charter Managers use all means at their disposal to present charter yachts in the most accurate and captivating way

Charter Marketing

YACHT SHOWS/EVENTS Charter Shows: Antigua

Barcelona Napflion Montenegro

E-MARKETING Broker-friendly for B2B

purposes

REFERRALS Client testimonials and references

from Captains and Brokers

PHOTO/VIDEO compelling photography is paramount

PRESS Editorial can be most

convincing B2B + B2C

Charter Resources Where can you go for information? What are the tools at your disposal?

YACHTING PRESS Boat International, Showboats

and Yachting to name but a few

YACHT CHARTER FLEET A website with yacht info and

editorial on almost every yacht, charter or otherwise

FAMILIARISATION TRIPS Perhaps the holy grail for a

charter broker?

YACHT SHOWS Charter shows in Antigua and

Barcelona, Monaco, Fort Lauderdale etc

CHARTER INDEX A subscriber website with charter

listings

YACHTFOLIO Ex. MYBAnet. THE professional

database for charter yachts

Yacht Shows

ANTIGUA BARCELONA MONTENEGRO

We have a process for optimising our yachts’ presence at yacht charter shows to ensure they receive the best exposure, that they are presented in the best possible way and that they stay memorable. Attendance at a yacht show can boost bookings by up to 30%

Let’s have fun

again…