8 Reasons Yacht Owners Charter Their Yachts

Anyone who’s ever met a yacht owner realizes pretty quickly how much they love their yacht. To them, the yacht is a much-loved second home, a place of happy family memories, a portal to exotic places, and a blissful oasis of privacy, luxury, and utter relaxation. No wonder owners talk about their yachts like they’re part of the family.

So the question that often crops up is: why do owners then charter their yachts — letting unknown guests use one of their prized possessions? Those new to the yachting world might think it’s all about the money, but there’s a whole lot more to it than that.

Using assets wisely

It’s rarely about whether owners can afford the upkeep of the yacht: few yacht owners buy yachts they can’t afford, and many of them could afford multiple yachts if they wanted them. Yet so often, yacht owners find they don’t have the time to use their yacht regularly, so paying year-round costs for a vessel they only use 4-6 weeks a year starts to represent a poor use of an asset.

Most yacht owners didn’t become wealthy in the first place by wasting money, or letting their assets sit unused on a dock somewhere, running up hefty bills, and depreciating in value all the while. Ultimately, the decision to charter their yacht is about making an asset work for you, rather than the other way around. It’s not about whether you can afford it, it’s about not squandering what you have.

The ranks of the yacht-owning set are overwhelmingly made up of successful businesspeople who understand the value of money and see chartering out their yacht as a clever business proposition. Why would you pay all the added costs of yachting ownership if you really don’t have to? There are several advantages, financial and otherwise, to chartering your own yacht.

Advantages to chartering your own yacht

1. Offsetting running costs
The general rule is that chartering your own yacht for 8-10 weeks or more a year will normally cover the annual running costs of the yacht. It is unlikely that chartering the yacht will make any significant profit (or dent the yacht’s original purchase price), but chartering the yacht often allows the owner to enjoy their yacht without having to put their hand in their pocket to cover annual wage, shipyard, berthing, electricity and fuel bills. As these costs normally tally to 10-20% of the yacht’s purchase price, this is a significant saving. Also, running a charter yacht does attract certain tax advantages, although these vary by country, so contact a knowledgeable charter manager to find out more.

2. A more professional crew
When you charter your yacht, you are effectively putting your crew into yachting “boot camp” — one where they’ll learn a lot of diverse skills as they encounter different guests, nationalities, cuisine and cocktail requests, etc. The service you receive when you come back on board will reflect that, from beautiful new table dressings, to exquisite new food, a smoother-running service and thoughtful attention to detail to impress charter guests. They tend to also have better knowledge of the places you visit because they’ve been there before with other guests — from the best restaurant recommendations, to the most exciting dive spots and secluded anchorages.

3. A happier, longer-serving crew
Chartering the yacht brings diversity and challenge into the crew’s working lives, which keeps things interesting. Charters also bring a nice gratuity, thereby supplementing crew salaries and motivating them to stay in the job longer. Charter yachts are the ideal for many yacht crew because of these factors, so your yacht will often attract higher-quality candidates. Of course, if the yacht is extremely heavily used in back-to-back charters, the crew face the risk of burnout, so be mindful that too much chartering might cause crew turnover.

4. Keeping the yacht in good running order
A yachting novice might think that leaving a yacht unused on the dock for many months on end will preserve its machinery, but yachts are like any machine: they need to be run regularly. Admittedly, a heavily used charter yacht will accrue wear and tear, but the charter costs normally cover the shipyard bills, and regular use means that all systems are kept in good working order — from the engine room right through to safety drills and cabin service. (Skills get rusty, just like machines!) 

5. Exciting new cruising grounds
Would you pay the fuel or yacht transport bills to move your yacht to the Mediterranean or Maldives for a quick 2-week trip with your family or friends? Probably not: it’s hard to justify such a big expense just for one short trip. But what if you had several charters booked in the area as well: enough charters would offset the fuel costs to get over there, yearly crew wages, and maintenance costs. Starts to make sense, doesn’t it? Chartering your yacht redraws the yachting map for owners, opening up exotic new destinations.

6. Charter guests are invisible
Your yacht crew will take excellent care of the yacht in your absence, and when you return for your next trip, you will never know the charter guests were there at all. The crew work hard to remove all of your personal belongings before charterers arrive, and ensure that the yacht is spotless and exactly as you left it when you come back, so that it still feels like your family home.

7. You can choose when to use your yacht
All you need to do is let your charter manager know when you would like to block out use of the yacht. Of course, if you block out all of the peak season weeks, then you’ll see a consequent dip in charter income, but that’s still your choice to make. Owners who are flexible about when they use the yacht tend to have the most successful charter yachts.

8. Your yacht can earn a great reputation
It’s not just nice to know that your yacht and its crew are well-regarded in charter circles. A good reputation also will drive more charter bookings, more income, and may quite well boost the resale value of your yacht if you decide to sell it. Remember, as a charter yacht, your yacht becomes a brand — one that you can use to your advantage.

There are so many good reasons to charter your yacht. You worked to purchase the yacht in the first place, so now it’s time to make it work for you. 

Want to learn more about chartering your yacht? Contact experienced Superyacht Charter Specialist Susan Harris:

Susan Harris
+1 561.870.4142
Susan@denisonyachtsales.com