YACHT CHARTER INVESTMENT & MANAGEMENT
Marine Project is the leading portal for yacht charter finding. With our database, you can book a yacht for charter for your vacation. Would you like to offer a yacht for charter, sailing yacht, motor yacht, catamaran, crewed, bareboat, skippered over the Marine Project? Do you offer charter yacht? Would you like to be listed in our list of the charter yacht?
INVESTMENT IN A YACHT - ALTERNATIVE INVESTMENTS
MARINE PROJECT YACHTVESTMENT is a financial project consisting of investing funds in industry niches that can be an alternative to traditional investment channels.
In the YACHT CHARTER VESTMENT project, the niche tourist industries. A tool, in this case, there is a tourist sea sailing or motor catamaran. The investment consists of purchasing a sailing catamaran and putting it on the commercial market in order to collect the benefits from its rental. This is an excellent offer for sailors who want to own their own yacht but can use it for a limited time.
YACHT CHARTER INVESTMENT MARKET SITUATION
1. Charteryachts are stable and developing a segment of tourism industry. They are based on a passion for sailing and fashion and an active way of spending free time. Charter flights usually take place in warm waters in places attractive to tourists, such as the Mediterranean sea, the Caribbean or Seychelles.
2. The yacht charter market is a rising market, which means that it grows on the average by a few per cent of every year.
3. The yacht charter market, as an area of the tourism economy of the Mediterranean countries, is extremely important for the domestic tourism economy and generates a significant share in the revenues of the entire tourism services industry.
4. Thanks to systemic charter sales – the offer is distributed on the Internet, through specialized offices of charter brokers all over the world, through specialized sales systems such as: Sedna, NauSys, MMK, Click & boat; Band of Boats, Marine Project and others, which ensures wide access to the offer and stability of distribution.
5. The applicable payment structure (an advance payment of up to 50% of the charter value is usually paid a few months before the charter date, and the remaining part of the price 1 month before the charter starts) this payment model means that the charter is always paid regardless of the prevailing conditions weather and other factors that may have an impact on the change of the Client’s decision just before the start.
6. The catamaran charter market is stable, safe and predictable, and due to its fragmentation, there is no scope for speculation in this area. In any event, the charter is paid, ensuring liquidity for the owner of the unit. The method of sale through a worldwide network of intermediaries guarantees quick and wide access to the offer among potential customers.
YACHT CHARTER BUSINESS CONCEPT
1. Commercial rental of sailing and motor catamarans as an alternative to traditional investment directions.
2. Client’s profile – the project is aimed at enterprises and entrepreneurs, people running a business, with financial surpluses, looking for new investment directions and diversification of already owned assets, etc.
3. Use of experience and unique and specialized knowledge in the field of knowledge of the industry niche, which is the yachting industry.
4. The concept was based on several important facts identified in the area of yacht charter. Belong to them:
Active save and comfortable rest for family sailing and yachting holidays
Since a few years, one can observe an increasing interest in tourist sailboat marinas. More and more tourists are active and at the same time catamaran yachts offer comfort that cannot be obtained on other yachts. The space offered by catamarans makes it much safer and more comfortable to use the vessel by families with small children, for whom there is simply more space. An additional attraction used by children is the so-called a trampoline (safety net) installed in the front part of the yacht between the prows of most catamarans, which is a kind of a “playground”. The autonomy of the vessel means that it is not necessary to enter yacht ports every day to replenish water, energy, etc., This, in turn, means savings in the fees that are incurred for mooring (parking) this type of units in yacht ports (marinas). Another advantage of choosing a sailing or motor catamaran is the small draft of the boat, which allows you to swim practically to the beach and use one of its charms, it is a solution unavailable for monohull yachts. Swaying is also of great importance than in the case of a classic yacht, which means that tourists who begin their adventure with this type of rest can comfortably stay on the yacht. The possibility of exploring tourist attractions inaccessible from the mainland is an additional advantage.
Demand exceeding supply?
In the yachting industry on the catamaran market there is a rare situation in which the demand for the purchase of a catamaran exceeds the supply. This is for the following reason: The total supply of production of sailing or motor catamarans in the world oscillates around 1,100 units per year. Such a number of yachts can be produced by all companies in the world involved in the production of sea going catamarans. Company CONSTRUCTION NAVALE BORDEAUX (CNB) – producer and the owner of the LAGOON brand has approximately 50% share in the entire global market. This means that every second sea going catamaran in the world is a LAGOON yacht. CNB is the world’s largest producer of marine catamarans. (*) With a practically constant supply, we estimate that about 50% of world-produced catamarans go to charter markets. They are mainly distributed among the countries of the Mediterranean sea, the Caribbean and Asia (Seychelles). Looking at the example of Croatia, which can be assumed to be a model market, the estimated number of yachts for charter according to various sources is from approx. 2,000 to approx. 2,500 ** (although there are also sources that indicate the number of approx. 4,000 yachts) for charter in this market) Assuming for the purposes of this study an average value of 2,000 of all yachts intended for charter, catamarans in this fleet account for approx. 10 to 15% in the segment of yachts intended for charter. As more and more tourists start to participate in the yacht charter market, and they choose catamarans very often, they are running short in the summer season. The growing demand in yacht charter means that there are still a shortage of new luxury charter catamarans, so the demand for them is growing. With limited supply, Manufacturers will have to wait longer and longer for these units. These data show that the demand for charter catamarans in the season exceeds their supply, as the number of potential catamarans willing to rent is greater than the number of available yachts in a given area. Producers will not be able to saturate the market for many more years. In the current market situation, the waiting time for a sailing catamaran ranges from 1.5 to 2 years. The production of large sea catamarans is a very costly and complicated process that requires experience, prepared personnel, unique locations with access to open waters (seas, navigable rivers) with specialized infrastructure, huge production areas with a very precisely selected climate (appropriate temperature, humidity is necessary in the production laminates by infusion method) etc. This is a very important aspect that was taken into account when analyzing the Yachtvestment project’s forecast in the following years of the project. * (source: CNB France) * (source: Croatia info portal)
a. Pricing policy, reservation system, daily occupancy
Due to the fact that there are less catamarans on the market than potential people willing to charter them, a specific pricing policy has been created. It is based on the fact that the discounts granted for catamarans are not very high. The maximum applicable discounts do not exceed 12% to 15%. In the case of monohull yachts, the discounts amount to 30 to 40% of the nominal charter price. The catamaran occupancy in the charter is above 90% of the season, which ensures smoothness for project participants. Catamarans much longer than monohull yachts are sold in the charter as “new”, thus obtaining a proportionally higher charter price for a longer period than monohull yachts. Bookings are usually made in a considerable advance (often in advance, i.e. a customer who completes a charter, books a yacht for the next season). It is practically possible to charter a catamaran at short notice during the season between the beginning of June and the end of September.
b. Choice of the Catamaran Brand
Brand selection is related to several important factors affecting the profitability of the project, including:
• easy access to spare parts and an efficient order fulfillment system
• professionally organized technical service – practically available for every watering
• saving on spare parts and consumables (one manufacturer, the same components and devices for many models)
• a large producer with efficient procedures
• recognized, recognizable brand
• well-thought-out arrangement in terms of functions and utility
• very good nautical parameters of the units
• manufactured in the most modern technologies
• known and willingly chartered by Clients
• comfortable, high-priced charters
• eagerly bought on the secondary market – easy to sell
REVENUE STRUCTURE FOR YACHT CHARTER INVESTMENT
Assumptions for the revenue forecast:
• The summer charter period is 20 weeks (26 weeks or more depending on destination)
• All values in € gross VAT = 13% Croatia other destinations up to 24%
• Average season values were adopted (without Covid 19)
SOURCES OF RISK, SOURCES OF SUCCESS
1. Sources of risk for Yacht Charter Investment
The following risk sources have been identified for the yacht charter business:
• permanent damage to the vessel during the season that will eliminate the yacht from the charter for a while. In this case, a portion of the loss of profits must be taken into account under the title of future income. The risk may be mitigated by specialist insurance under the title of documented lost profits, Marine Project is in possession of such insurance. Standard insurance will cover any damage caused to the yacht. Minor damages are removed from the deposit left at the expense of the client chartering the yacht.
• Country political risk in the area where charters take place.
• Health crisis, epidemic, pandemic
2. Sources of success
• The YACHTING industry is much more resistant to the economic crisis than other industries.
• An industry not subject to market speculations, such as raw materials, wine, capital markets, etc.
• A popular way of spending holidays
• Attractive waters: the Mediterranean sea, Indian Ocean Seychelles
• Stable and predictable atmospheric conditions prevailing in selected waters
• Easy logistics – related to reaching the sea
• Professional distribution channels
• Specialized and experienced Partners
• Global sales coverage thanks to hundreds of specialized industry brokers – sales through specialized reservation systems
• Modern willingly chartered boats
• Early payment on the charter – 50% of the charter price payable when the unit is booked, the remainder is paid 1 month before the start of the charter.
• Experienced crew associated at Marine Project
• Deposit – as a security for any damage to the yacht by charter customers, usually € 3,000 to € 5,000 (at least the equivalent of the deductible) – this is specified in the unit’s insurance policy
YACHT CHARTER OPERATOR – MARINE PROJECT
1. Experience in the charter services market. Marine Project is an experienced operator on the charter market, this thesis is confirmed by the fact that the owners of the company invested their own funds in the purchase of sailing catamarans, which were then transferred to the company’s management.
2. Experienced staff – Marine Project is a team whose members have many years of experience in the charter industry and the broadly understood yachting industry. Charter sales personnel have excellent personal and business relationships with the network of charter agents operating in yacht reservation systems. A trained technical team performs most of the activities necessary to maintain the unit in good technical condition, and additionally coordinates the work of external authorized subcontractors, if necessary (e.g. maintenance of the warranty).
OUR YACHT CHARTER BASES
VIII. DEVELOPMENT PLANS
For the next 3 years, Marine Project has specific plans related to the company’s development, both in terms of capital and in terms of expansion into new markets, in particular, by adding more yachts to the charter bases in the most attractive waters. 2022/23 – a new base in Turkey is planned to open in order to extend the charter season in Europe.