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Is Owning a Yacht for Charter Profitable

Is owning a yacht for charter profitable.

Yes, owning a yacht for charter can be profitable but owning a yacht will rarely “pay for itself.” Chartering your yacht presents some unique benefits that can lead to opportunities to make a profit off of your investment in a myriad of ways, including offsetting the cost of owning a yacht , selling your yacht for a profit, and even making a profit (if you’re among the lucky few who have the know-how and the right vessel).

Welcome to the yachting lifestyle.

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Offsetting the Costs of Owning a Yacht

Chartering out your personal yacht to offset ownership costs..

One of the greatest benefits of chartering your yacht is making some money from your investment when you’re not using it. It’s a simple way to offset the cost of something that would otherwise sit and cost money. It also gives you more to work with as far as keeping the yacht up to date.

Keep in mind, the service and maintenance of a yacht is expensive but also a primary factor in whether or not your yacht will continue to retain value or even exceed value. Since routine refittings and redesigns are often unavoidable and cost up to 10 percent of your yacht’s value each year, this option offers you the added benefit of maximizing profits as well as your enjoyment each time you decide to set sail on another vacation.

Yacht charter management is a strategy to not only maintain your yacht, but also pay less in the long run when it comes to costs of docking, maintenance, insurance, and other operating expenses for your yacht.

Selling Your Yacht for Profit

Gaining a positive reputation among a network of yacht enthusiasts..

Net profits from a yacht charter are a faraway dream for most, but not impossible for some. Having a company to manage your charter within a flourishing network of yachters will help maximize your return on investment. There are some makes, models, and routes that are much more popular, and it pays to know where to best place your investment from the start, as unlike the trend with most types of cars or boats, not all yachts immediately begin depreciating in value.

Opening your vessel up to a network of yacht enthusiasts also increases the likelihood that your yacht will gain a positive reputation, thus more value among buyers or anyone interested in a yacht charter, making it much more desirable for both charter guests and purchases—that is, if it is a well-managed operation. It’s much more likely a prospect looking to buy your yacht will take it for a spin before purchasing.

Built-for-Profit Vessel

Some yachts are specifically designed to make money..

Having a yacht that is custom-built for charters or, put simply, turning profits, is the best way to go about using a yacht charter solely for investment purposes. It’s not impossible to make money with a yacht charter, but it also takes a good amount of experience and skill to get the job done right.

There are so many dynamic factors that are involved with running a successful yacht for charter operation, and one of the main things to keep in mind is the quality of service you’re providing your customers. This will be a factor in determining how much your vessel is worth to your yacht charter guests.

Owning a yacht for charter is profitable in more ways than one, but getting all the moving parts right requires some know-how and expertise with yacht charters. Remember, you can offset the cost of owning your yacht, sell your yacht for a profit, or design a yacht for money-making purposes—the dream is possible with help from experts.

Be it profit or pleasure, a yacht yields a lifetime of happiness.

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Windward Yachts

Can Owning a Yacht to Charter (Really) Be Profitable?

yacht charter return on investment

When contemplating the possibility of investing in a luxury yacht, questions often arise as to what kind of return an owner can expect on their investment beyond a fun and exciting experience out on the open water.

In this article, we’ll answer the question whether or not a regular yacht owner can rent it out and expect to make a profit out of it.

yacht charter return on investment

What Yacht Owners Need to Know Before Entering the Charter Business

Owning a yacht and chartering it are two completely different things. If you don’t own a yacht yet, the issue is even worse. Here are some valuable reminders.

Owning a yacht (for a charter business or not) comes with a hefty price tag.

The initial cost of purchasing a yacht is high, and it is just the beginning. One must also take into account the maintenance and operation costs that come with owning a yacht. The operation costs include the cost of fuel, mooring fees, crew salary, communication expenses, yacht insurance, and P&I. These costs alone can quickly add up and make up a significant portion of the expenses associated with owning a yacht.

On top of the operation costs, one must also consider the maintenance cost. Keeping a yacht in top shape requires a considerable investment in shipyard costs, replacing broken parts, painting, and regular cleaning. Ongoing maintenance is essential to keep the yacht seaworthy and in excellent condition.

To know more, read: How much does it really cost to own a yacht?

Chartering yachts is a regular (and regulated) business

Before investing into a yacht and charter it, it is crucial to thoroughly research the regulations and requirements for operating a charter business in your specific location.

This may involve obtaining various licenses and certifications, as well as adhering to safety and liability standards. You’ll also need to carefully consider your target market, pricing strategies, and marketing efforts.

Building strong relationships with brokers and other industry professionals is also the difference between a profitable yacht charter venture and one that follows the sunk costs fallacy.

So, although entering the charter business can seem profitable and easy at first glance, it does requires careful planning and a commitment to even get started.

Yacht charters services are far from being the passive income you may have in mind

To an outsider, chartering a yacht can almost seem like a good passive income source. But it is rarely the case.

A yacht charter is a service that involves a lot of work if you intend to do it yourself: hiring a crew, doing the maintenance of your yacht, preparing food & beverage, getting moorings… the list of tasks can be very long. If you are not from the industry or if you intend to rent your yacht as a side hustle, you will quickly realize why people use the services of yacht brokers !

yacht charter return on investment

What makes chartering your yacht profitably challenging

While owning a yacht available for charter can be an exciting venture, there are several drawbacks to consider. These include:

The financial burden of a yacht for charter is serious

As we mentioned before, owning a yacht is a significant financial commitment. The initial purchase cost, along with ongoing expenses such as maintenance, crew salaries, insurance, and berthing fees, can be substantial.

If the yacht does not generate enough charter bookings, it may become a financial burden rather than a profitable investment.

Charter Demand and Seasonality can break your profitability

The demand for yacht charters can be seasonal and location-dependent. If your yacht is based in an area with limited charter seasons or faces high competition during peak times, it may be challenging to secure enough bookings to cover the costs.

This can result in periods of low or no income.

Wear and Tear from constant charters can ramp up maintenance costs

Chartering your yacht means it will be used by different groups of guests. This can lead to increased wear and tear on the yacht’s interior, equipment, and systems. Regular maintenance and repairs are necessary to keep the yacht in good condition, which can add to your expenses.

Using your own yacht personnally automatically decreases your income potential

When your yacht is available for charter, it may limit your personal use of the vessel. Popular charter periods may coincide with times when you would like to enjoy the yacht privately. Balancing personal use and charter bookings can be a challenge, especially if you have high expectations for personal enjoyment.

Alternatively, every time you use your yacht, it’s a yacht charter income revenue that is automatically lost.

You need guest Satisfaction to have bookings

As a yacht owner offering charters, guest satisfaction becomes crucial. Ensuring a positive charter experience requires careful management, including hiring and training competent crew, maintaining high standards of service, and addressing any guest concerns or issues promptly. Meeting guest expectations can be demanding and time-consuming.

Regulatory and Legal aspects can hinder your cashflow

Operating a yacht for charter involves complying with various regulations and legal requirements. These can include safety inspections, licensing, tax obligations, and compliance with local maritime laws. Staying updated and compliant with these regulations can be complex and may require professional assistance.

The yacht charter market is volatile

The yacht charter market can be influenced by economic fluctuations and changes in consumer preferences. Economic downturns or shifts in travel trends can impact the demand for luxury yacht charters. It is essential to monitor market conditions and adapt your charter business accordingly.

It is crucial to carefully evaluate these drawbacks against your personal goals and financial capabilities before deciding to own a yacht available for charter. Conducting thorough market research, seeking professional advice, and creating a comprehensive business plan can help miti

yacht charter return on investment

Who can reasonably expect to make money by chartering their yacht?

Not everybody can be profitable chartering their own yacht, or having a fleet of yachts for rent.

Most people that rent their own yacht without a professional broker by their side aren’t actually making money, even though their little side hustle can help them finance their hobby.

Being constantly profitable chartering your yacht involves a lot of work combined with the appropriate vessel in the right location, and some experts to market it and manage it. Only then one can reasonably expect to see extra cashflow.

How you can optimise the Return on Investment (ROI) of a Yacht for Charter

yacht charter return on investment

Considering numerous factors, the return on investment (ROI) of a yacht for charter can significantly vary. Just keep in mind that while some yacht owners can generate profitable returns, the vast majority of yachts may experience lower or even negative ROI.

If you don’t have a yacht yet, conduct a serious market research

In most business, market research is one of the key to success. Yacht charter is not an exception. If you already have your own yacht, your options are naturally limited. However, if you are new to yachting and are simply contemplating the idea of buying a yacht with the plan to rent it out to break even or be profitable, then seriously study your market.

Better yet, get the help of a professionnal broker that might have all the insiders tips you need before making a big mistake and kill your potential ROI forever.

Have your yacht for charter in popular areas where there is demand

The ROI largely depends upon the level of demand and popularity of yacht charters in specific locations. Popular destinations with high demand, such as Mediterranean or the Caribbean can provide better opportunities for a higher ROI. But, due to the competition among yacht owners, the pricing and occupancy rates might be impacted.

Have appropriate charter prices to ensure a good occupancy rate

Rental rates significantly contribute to deciding the ROI of a yacht. Higher rates may result in a favorable ROI only if the yacht is consistent in securing more bookings throughout the charter season. The ability to attract clients is important to maximize returns: an empty boat costs money and doesn’t generate income.

Operating Costs and Expenses must be effective

The costs of fleet management including crew salaries, maintenance and repair, insurance, fuel, provisioning, marketing, and administrative expenses have a direct impact on the ROI. Effective management of these costs can non only help you to break-even, but also hopefully to generate real profits.

Carefully choose your type of yacht (and size) to ensure profitability

The size and type of yacht directly influence its charter appeal and ROI. Larger, more luxurious yachts typically command higher charter rates, attracting high-end clientele and potentially generating better ROI. However, larger yachts may also have higher operating and maintenance costs, and they can be harder to fill.

Your yachts always need to be kept in good condition

Nobody want to charter a yacht that looks beaten up and dangerous.

The condition and age of the yacht are the key factors that affect its charter appeal and subsequent rental rates. Well-maintained yachts in excellent condition are highly likely to receive more bookings and generate higher rental rates, thereby maximizing the ROI. 

Older yachts may require frequent repairs and renovations, which can influence profitability.

Management and Marketing are key to rent our your yacht, just like any other business

Implementing effective management and marketing strategies to increase client bookings, occupancy rates, and optimizing charter pricing can significantly influence the ROI.

Working with a professional yacht management company or charter broker can help attract clients and maximize the ROI.

What are the costs involved in offering a yacht for charter ?

When offering a yacht for charter, there are several costs involved that will naturally have to be lower than your total charter income in order to make sure your venture remains profitable .

These costs can vary depending on various factors such as the size and type of the yacht, the charter location, the duration of the charter, and the services provided. Here are some common costs to consider:

  • Yacht Acquisition or Ownership Costs: Flag registration. As some yacht flag can be more advantageous than others for tax purposes, but also for the diploma your crew will require to navigate the yacht.
  • Crew Costs : The crew is essential for operating the yacht and providing a high-quality charter experience. Crew costs typically include salaries, training, uniforms. The crew size will depend on the size and type of the yacht.
  • Fuel and Dockage: Fuel costs can be significant, especially for larger yachts. Dockage fees also need to be considered, as yachts often require berthing in marinas or ports in between charters and winterizing.
  • Maintenance and Repairs: Yachts require regular maintenance and occasional repairs to ensure they are in optimal condition for charters. These costs can include engine maintenance, hull cleaning, system servicing, and cosmetic repairs.
  • Insurance: Yachts need comprehensive insurance coverage for protection against potential risks such as accidents, damage, theft, and liability. The cost of insurance can vary depending on the yacht’s value, size, and cruising area.
  • Marketing and Brokerage Fees: To attract charter clients, marketing efforts are necessary. This may involve creating a website, advertising, attending boat shows, and working with charter brokers. Brokerage fees are also applicable if you choose to work with charter brokers to promote and book charters on your behalf.
  • Ancillary Services: Additional services such as water toys, scuba diving equipment, entertainment systems, internet connectivity, and crew uniforms may incur additional costs. These extras can enhance the charter experience and attract more clients.

It’s important to note that the actual costs can vary significantly depending on the specifics of your yacht and the charter operation. Working with a professional yacht management company or charter broker can provide valuable insights and help you estimate these costs more accurately. Contact our team to get more details.

Read also : The yacht charter experience ladder

Read also : FRACTIONAL YACHT OWNERSHIP EVERYTHING YOU NEED TO KNO W

The Best Alternative to Reduce the Cost of Yacht Ownership: Fractional Ownership

yacht charter return on investment

Fractional ownership of a yacht is when an individual invests in only part of the yacht. This means there are comparatively more funds to spare for just a part of the yacht. So, the cost of owning and keeping a yacht in great condition is considerably reduced.

There are yacht chartering companies like the WI Yacht that allow individuals to own part of a yacht for some time during the year. This way, the cost of ownership is significantly less, but you do get the privilege of being a yacht owner.

Real also : Fractionnal yacht ownership : everythings you need to know

Key Takeaways on Owning a Yacht to Charter

Renting out profitably a yacht that you own is largely dependent upon having the right boat in the right location, the right plan, and in most cases the right broker by your side.

Knowing exactly what to expect before taking on this type of venture is essential as there is a certain level of risk involved when entering the yacht charter market, especially considering the costs involved in simply maintaining a yacht afloat.

Can every yacht owner be profitable by chartering their own yacht? No, but it can certainly decrease the overall cost of ownership.

And with the right set of conditions and a professional broker, some owners might even make a successful business out of it almost passively.

Get in touch with us if you own a yacht that you’d like to charter.

Frequently Asked Questions

Yachts from know shipyard are usually the most profitable for chartering. The key is a professional crew and a good central agent for your marketing.

Chartering a superyacht just offsets the costs. Majority of superyachts offered for charter earn money to offset expenses, they do not earn a profit.

If done in strategic areas and times of the year, chartering your own yacht can be extremely lucrative. An individual can make up to one hundred thousand or more in a single month. The key is to buy cheap, second-hand even, and then refurbish your boat.

Usually, banks offer loans for buying a yacht if you have a strong initial payment. There are personal loans available that people can use for such investments, but they come with higher rates of interest.

The standard rate of commission to the yacht charter company per yacht is 15%. This amount can increase or decrease, but just a little.

The income obtained from renting (or chartering) a yacht can sometimes cover all expenses incurred, but not always. So, owning a yacht for free by renting it out is possible, but not guaranteed.

The most popular yacht charter destinations are the United States of America, British Virgin Islands, the Bahamas, French Riviera & Monaco, Amalfi Coast, Croatia, and Greece.

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yacht charter return on investment

Is Owning a Yacht for Charter Profitable? Things to Consider

yacht charter return on investment

This article is a treasure map guiding future entrepreneurs through the sparkling waters of the yacht charter business. By diving into it, you'll uncover whether owning a yacht for charter really is as profitable as it sounds, alongside essential considerations to navigate by.

We'll explore the initial costs, from purchasing the yacht to docking fees, and maintenance expenses that ensure your vessel remains in tip-top shape. 

Plus, we'll sail through understanding market demand, choosing the right type of yacht for your target audience, and the legalities to keep everything smooth sailing. Marketing strategies to make your yacht the one everyone wants to book and how to provide unforgettable experiences for your guests are also on the deck.

Can Owning a Yacht Charter Business Really Profitable?

Owning a yacht for charter can indeed be profitable, though it's rare for such an investment to "pay for itself" entirely. The profitability of a yacht charter business hinges on various strategies, including offsetting ownership costs, selling the yacht for a profit, and designing a yacht specifically for profit-making purposes. The dream of making a profit from a yacht charter is achievable with expert guidance and a strategic approach.

  • Offsetting the Costs of Owning a Yacht: Chartering your yacht can be a smart way to make some money when you're not using it, helping to offset the cost of ownership. This strategy provides income and assists in keeping the yacht up-to-date, which is crucial since service and maintenance, which can cost up to 10% of the yacht's value annually, are key to retaining or even increasing its value.
  • Selling Your Yacht for Profit: While net profits from yacht charters may seem like a distant dream for many, it's not out of reach for those with the right knowledge and vessel. A well-managed yacht within a thriving network can significantly enhance your return on investment. The popularity of certain makes, models, and routes can make a big difference, and a positive reputation can increase your yacht's value and desirability.
  • Built-for-Profit Vessel: Some yachts are designed with profit in mind, tailored for charter operations. Success in this area requires experience, skill, and a focus on the quality of service provided to customers, which directly impacts the vessel's worth to charter guests.

How Much Do Charter Boat Owners Make?

The financial landscape of owning a yacht charter business in the United States presents a promising but varied picture. 

According to industry insights, the average annual revenue for a yacht charter business owner ranges impressively from $300,000 to over $1 million , highlighting the lucrative potential of the industry. * This revenue is influenced by numerous factors, including the size of the fleet, the yacht's popularity and location, and overall demand for yacht charters.

Yacht charter businesses enjoy a healthy profit margin of approximately 20-30% , indicating that a significant portion of revenue converts into profit. * This profitability is influenced by several key factors, such as the business's location, with coastal destinations or luxury vacation spots being more profitable, and the size and type of yacht, as larger and more luxurious vessels often command higher rental fees.

Operating costs, including maintenance, insurance, dock fees, and crew salaries, play a crucial role in determining the owner's take-home income.

 Efficient management and cost control can mitigate these expenses, allowing owners to maximize their profits. The average salary range for yacht charter business owners in the US varies, with most earning between $80,000 and $150,000 annually, not including additional profits generated from the business. *

To maximize revenue potential, yacht charter business owners are advised to offer a diverse range of yacht options, establish strong partnerships with local tourism agencies and hotels, invest in effective marketing strategies, provide exceptional customer service, and stay abreast of market trends to adjust pricing strategies accordingly.

What to Consider for a Yacht Charter Business Profitability

Launching a yacht charter business is both exciting and challenging, requiring a strategic approach to ensure profitability. 

The success of such an endeavor hinges on several key factors, including the choice of location, yacht selection, effective marketing , and operational management. 

Additionally, understanding the dynamics of charter demand, managing operational costs, and navigating regulatory landscapes are crucial.

This section will explore these critical considerations, offering insights to help you make informed decisions and steer your yacht charter business towards financial success.

The choice of location is paramount. Destinations like the Mediterranean , Caribbean, Spain, Greece, and Croatia are hotspots for yacht charters, offering breathtaking scenery and favorable sailing conditions. 

The right location can significantly impact your booking rates and charter duration, directly affecting your bottom line.

Management and Marketing Strategies

Effective management and marketing are the backbones of a successful charter business. Partnering with experienced charter management companies can relieve the burden of day-to-day operations, from booking to maintenance. Moreover, leveraging marketing strategies, such as digital advertising and social media, can enhance your visibility and attract more clients. 

Type of Yacht

The yacht's type, size, and amenities play a crucial role in its appeal to potential customers. Luxury yachts equipped with modern amenities and spacious accommodations can command higher charter fees, appealing to clients seeking an exclusive vacation experience.

Charter Demand and Seasonality

Understanding the demand and seasonality in your chosen location is crucial. High season periods often yield higher booking rates and prices, but it's essential to also consider shoulder seasons for extended operational periods.

Operating Costs and Expenses

Owning a yacht comes with significant operating costs, including maintenance, crew salaries, insurance, and docking fees. Calculating these expenses accurately is vital to ensure your charter business remains financially viable.

Regulatory and Legal Considerations

Navigating the regulatory and legal aspects of chartering is essential. Compliance with maritime laws, safety regulations, and insurance requirements protects your business and ensures a safe experience for your guests.

Key Takeaways on Owning a Yacht to Charter

  • Strategic Location and Yacht Selection: The profitability of a yacht charter business significantly depends on choosing the right location and the types of yachts in your fleet. These decisions directly influence your ability to attract customers and command competitive charter fees.
  • Effective Marketing and Operational Management: Implementing strong marketing strategies and efficient operational management practices are essential for maximizing booking rates, enhancing customer satisfaction, and, ultimately, ensuring a profitable business model.
  • Cost Management and Regulatory Compliance: Careful management of operational costs and adherence to regulatory and legal requirements are crucial for maintaining a healthy bottom line. These factors affect the yacht charter business's overall financial performance and sustainability.

Frequently Asked Questions

Is owning a yacht for charter profitable.

Yes, it can be, provided you invest wisely, manage efficiently, and market effectively. The profitability hinges on several factors, including the yacht's location, type, and how well it's operated and marketed.

How Much Can Yacht Charter Owners Make?

Earnings vary widely based on numerous factors, including the yacht's size, type, location, and operational efficiency. With the right strategy, yacht charter owners can achieve significant returns on investment.

What Are the Best Strategies to Maximize Yacht Charter Revenue?

To maximize revenue, focus on selecting a popular charter location, investing in a desirable yacht type, implementing effective marketing and management strategies, optimizing booking rates through dynamic pricing, and maintaining the yacht in pristine condition to attract repeat business and referrals.

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WHAT IS CHARTER MANAGEMENT?

Chartering your private yacht is the most effective way to maximize return on your luxury investment.  Charter income can offset the costs of ownership, such as maintenance, running costs and  crew salaries. A successful charter yacht management program can also boost the yacht’s reputation, thereby potentially  increasing its popularity and resale ability. We will  develop a specific charter yacht marketing plan to meet your goals as an owner. 

Worth Avenue Yachts’ Charter Marketing team is expertly appointed to operate as the vital link between international retain charter brokers, the yacht owner and the yacht captain and crew, maximizing the potential business of your yacht. 

Contact our charter team today to learn more about charting your luxury yacht. Email us at Team@WorthAvenueYachts.com or call (561) 833-4462

LET YOUR YACHT WORK FOR YOU

Let your yacht work for you by offering it for charter, enabling you to enjoy charter revenue while still bruising at your own convenience.  When your yacht is available on the charter market, you utilize her and her crew to their fullest potential.  Worth Avenue Yachts’ fleet is comprised of some of the world’s most sought-after luxury yachts managed by world-class professionals who ensure a booking calendar that fits your lifestyle!

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Worth Avenue Yachts is a world-class yacht brokerage firm founded by industry-leading professionals specializing in luxury yachts for sale, private yacht vacations and new yacht construction. 

Worth Avenue Yachts exercises a team-based approach as a more effective and enjoyable solution for the buyers, sellers, owners and charter clients of luxury yachts. Rather than the traditional business model of a single broker managing a client’s needs, our business employs a group of professionals who combine their knowledge, experience and relationships that have been formed over decades in the industry. 

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Our goal is to market yachts to qualified potential clients and the entire yachting community. We work closely with the global yachting community and our in-house agents to promote our yachts for maximum exposure to clients worldwide. 

Worth Avenue Yachts successful chartering program will boost the yacht’s reputation, thereby potentially increasing its popularity and resale ability. 

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yacht charter return on investment

Chartering Your Own Yacht - The Complete Guide

Thinking about whether you should charter your yacht here's everything you should know about it..

Buying a yacht for private use is a great investment - in your future adventures, in your new lifestyle, in your mental and physical well-being. You get to explore the unexplored, spend quality time with your friends and family, or party like a celebrity. It's an experience of a lifetime and a dream come true for many.

However, even though you try your best to maximize your time on board, there are still weeks or even months when the boat’s unused and the crew ‘underutilized’. When your boat is just sitting in the marina, it’s just costing you money. 

That’s why you should consider putting your yacht in a charter fleet. It can not only offset your expenses but even generate profit. Most importantly, it guarantees that your yacht is fully maintenanced and in top shape for when you decide to set sail on another vacation.

yacht charter return on investment

Chartering your own yacht is a great way to earn money off your investment. (Image source: Shutterstock)

The benefits of chartering your yacht

Chartering your yacht is a great strategy for making some money off your yacht when you’re not using it. But there are also a number of other advantages - here are the main ones:

Reduced operational costs & additional income

A busy charter yacht can cover a significant portion of your operating expenses such as dockage, maintenance, insurance, and other incidentals. Additionally, charter yacht ownership produces an income that you otherwise as a private owner wouldn’t have, providing a faster return on the investment.

Increased yacht reputation and value

A yacht that is marketed for charter has a better market profile. On top of that, If the yacht is active and has a proven success record of providing high quality experience to its clients, it will attract both charter guests and potential buyers in the future. In the long run, chartering is a sound strategy for increasing your boat’s value which would otherwise depreciate with time.​

The yacht stays in top-notch condition 

It may sound counterintuitive but yachts that are part of the charter fleet are usually more regularly and better maintained. Frequent cosmetic and mechanical maintenance that chartering requires can extend the life of your yacht and preserve its resale value.

More experienced boat crew

Charter yachts attract the best caliber of crew that will maintain their service at the highest industry standard. That also means you can enjoy the same quality of service whenever you decide to use it for personal plans.

yacht charter return on investment

Charter yachts require frequent maintenance. An experienced yacht crew will keep the yacht in top-notch condition. (Image source: Shutterstock)

Earnings and expenses

As a yacht owner, you can definitely earn a profit by chartering your yacht and offset your costs. Here’s the breakdown:

The price of the charter depends on the market, the size, model, condition of your boat, the number of cabins, etc. The expenses which you must take into account as the boat owner include: 

  • registration
  • ship maintenance
  • crew salaries
  • charter equipment (water toys, bed linen, towels, shampoos, etc.)
  • professional photography 

yacht charter return on investment

Charter yachts which provide a wide selection of water toys are often booked better.   (Image source: Shutterstock)

Even though there are many factors that influence the boat price, we at Magnum always try to set a competitive price that’ll make you stand out on the yacht charter market.  See the prices for the luxury yachts in our fleet here.

How many weeks can I charter my yacht?

For luxury yachts, you can expect your yacht to be booked for a minimum of 6-12 weeks a year, depending on the season.

The average number of weeks is higher for chartering sailboats and catamarans, usually about 14-20 weeks.

What to expect of a yacht charter management company? 

With the right agency for yacht charter management , you can reap all the benefits of chartering your own yacht - offset operational costs, keep your crew sharp and your boat in top shape, as well as build a brand reputation. 

The role of such a company is to provide consulting, support and help you achieve maximum booking through thoughtful promotion. 

Here’s how that works in the example of Magnum:

Once a yacht owner decides to partner with our agency, we both sign the Central Booking Agreement. It states the rights and obligations of the owner, as well as the rights and obligations of us as a central agency. In it we also define the price list according to which the charter service for a particular vessel will be charged. 

The agreement can be signed for a definite period (1 year) or for an indefinite period and can be terminated via written notice (from either party).

Bookings, promotion & payments

Once we sign the Central Booking Agreement with the boat owner, we focus all our efforts on promotion and positioning the boat on the market. It takes some time for the yacht to become "recognized" on the market but since we have access to a large global booking system through which we receive inquiries (YACHTFOLIO), this process doesn’t take too long.

yacht charter return on investment

A central agency for yacht charter management will help you to achieve more bookings through top yacht promotion. (Image source: Shutterstock) 

After receiving an inquiry from a potential client, we send them a detailed offer with the price and presentation materials (brochure, crew profile, etc.), to give them a complete and better impression of the yacht. If the client confirms the booking, we sign the MYBA contract. The contract is signed by all the parties involved in the booking process - the client (charterer), broker, stakeholder and the yacht owner. 

Payment to the yacht owner is made in such a way that half of the amount to be paid to the owner is paid on the day of the boarding, and the remaining amount on the day of unloading (or the first working day, if unloading day is during the weekend).

The responsibilities of the yacht owner 

If you decide to charter your yacht, here’s what’s expected of you as the owner:

  • During the term of the Central Booking Agreement, the yacht owner is not allowed to enter a business partnership with another yacht charter agency and is obliged to refer all agents who may contact him to his central agent.   
  • The yacht owner mustn’t promote his yacht independently or without the consent of his central agent.  
  • The owner must deliver professional photographs of the boat to the agency.   
  • The owner is obliged to invoice his charters in accordance with the regulations of the Republic of Croatia.  
  • The yacht owner is obliged to ensure the registration of the vessel and to have valid insurance policies.  
  • The yacht owner must provide other documentation and take actions that precede the provision of accommodation services on board.  
  • The yacht owner is obliged to provide an adequate crew in accordance with the size of the boat and the uniforms for all crew members.  
  • The yacht owner is obliged to sign the charter agreements on time and report any problems or delays to the agency as soon as possible.  
  • The boat must be adequately prepared for chartering - that includes cleaning, equipment procurement, as well as accommodation, uniforms & training for the crew members.  
  • The yacht owner must have a registered company and be able to issue invoices.  

Why choose Magnum as your yacht charter management company?

Since we were founded in 2004, we’ve been recognized as one of the most highly qualified yacht charter companies in Croatia, with the fastest-growing fleet in the country. As members of the Mediterranean Yacht Broker Association, we maintain our business at the highest standards of professionalism and ethics. 

We are well established in the yachting community: our agency is a YACHTFOLIO subscriber and collaborates with a large number of both global and local clients, as well as partner agencies.

Our team of experts have the know-how and the experience to ensure that your yacht reaches its full charter potential - that means maximizing the number of bookings and subsequently, revenue. We fully devote ourselves to each yacht owner and have an ‘all-hands-on-deck’ approach to supporting you.

If you would like to charter your yacht through our agency, feel free to contact us here . 

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Yacht chartering is a lucrative industry that offers individuals the opportunity to explore the open waters while making a profit. However, before diving into this business venture, it is essential to consider several key factors that can greatly impact the profitability of your charter. From understanding market trends to determining target clients, there are seven essential questions that every aspiring yacht charter owner must address. By delving into these crucial aspects, you can ensure a successful and sustainable business model in the competitive world of yacht chartering.

Is a Yacht Charter a profitable business venture?

What annual revenue can a yacht charter typically generate, what is the average profit margin for a yacht charter, what are the key revenue streams for a yacht charter business, what are the most significant financial risks when operating a yacht charter, what strategies can a yacht charter employ to diversify revenue streams and enhance profitability, what is the typical return on investment (roi) for a yacht charter business.

Yacht Charter is a lucrative business venture that offers high-profit potential for entrepreneurs looking to enter the marine tourism industry. As the demand for luxury yacht charters continues to grow, there are numerous opportunities for yacht charter companies to generate substantial annual revenue and achieve impressive profit margins.

According to industry benchmarks, the global yacht charter market has been steadily growing at an annual growth rate of approximately 5% in recent years. This growth is driven by an increasing interest in luxury travel experiences, destination weddings, corporate events, and other special occasions that can be enhanced by a yacht charter.

One of the key factors that contribute to the profitability of a Yacht Charter business is the diverse revenue streams it can offer. From one-time yacht rentals to long-term yacht management agreements, there are various ways for Yacht Charter companies to generate revenue and enhance their profitability.

Financial risks are inherent in any business, and the Yacht Charter industry is no exception. However, by carefully managing expenses, maintaining a strong customer base, and implementing effective marketing strategies, Yacht Charter companies can mitigate these risks and ensure a healthy return on investment.

Tips for increasing Yacht Charter revenue:

  • Diversify revenue streams by offering a range of yacht charter services, such as luxury yacht charters, fishing excursions, and corporate events.
  • Invest in marketing strategies that target high-end customers and emphasize the unique experiences offered by Yacht Charter.
  • Maintain strong customer relationships through exceptional service, personalized experiences, and prompt resolution of any issues or concerns.

In conclusion, a Yacht Charter can be a highly profitable business venture for entrepreneurs who are willing to invest time and resources into building a strong brand, attracting a loyal customer base, and delivering exceptional yacht charter experiences. By staying informed about industry trends, analyzing competition, and implementing effective financial planning strategies, Yacht Charter companies can position themselves for long-term success in this dynamic and rewarding industry.

Yacht Charter Business Plan Get Template

Yacht Charter is a profitable business venture that can generate substantial annual revenue if managed effectively. The revenue potential of a Yacht Charter business depends on various factors such as the size of the fleet, the types of yachts offered, the target market, and the marketing strategies employed. In the US, the yacht charter industry has been experiencing steady growth in recent years, driven by the increasing popularity of luxury travel experiences.

According to industry benchmarks and real-life statistical data for the latest years (2022 till today), a Yacht Charter business can typically generate annual revenues ranging from $100,000 to $1 million or more, depending on the size and scale of the operation. The profit margin for Yacht Charter businesses can vary but is generally in the range of 10-30%, with opportunities to enhance profitability by diversifying revenue streams and optimizing operational efficiency.

One of the key revenue streams for Yacht Charter businesses is yacht rental fees, which can vary based on the size and type of the yacht, the duration of the rental, and the services included. In addition to rental fees, Yacht Charter companies can generate revenue from additional services such as catering, event planning, and yacht management services.

Tips for Increasing Yacht Charter Revenue:

  • Offer package deals for special occasions such as destination weddings or corporate events to attract high-value customers.
  • Invest in marketing strategies that target luxury travelers and promote the unique experiences offered by your Yacht Charter business.
  • Focus on customer satisfaction and build a strong reputation for delivering exceptional service to encourage repeat business and positive referrals.

In conclusion, a well-managed Yacht Charter business has the potential to generate significant annual revenue by tapping into the growing demand for luxury travel experiences. By leveraging industry trends, implementing effective marketing strategies, and providing top-notch customer service, Yacht Charter companies can maximize their profitability and establish a strong foothold in the competitive yacht charter market.

Understanding the average profit margin for a Yacht Charter business is crucial for assessing its financial viability and potential for growth. Profit margin is a key metric that indicates the percentage of revenue that translates into profit after accounting for all expenses. In the case of a Yacht Charter business, profit margin can vary based on factors such as operational costs, pricing strategy, customer demand, and competition in the market.

Industry benchmarks suggest that the average profit margin for a Yacht Charter business typically ranges from 10% to 25%. However, this figure can vary significantly depending on the size of the business, the quality of the fleet, the target market, and the overall efficiency of operations. To enhance profitability and achieve a higher profit margin, Yacht Charter companies may need to focus on optimizing their revenue streams, managing financial risks, and diversifying their offerings.

When analyzing the financial performance of a Yacht Charter business, it is essential to consider the annual revenue generated and the corresponding profit margin. By calculating the return on investment (ROI) for each yacht in the fleet, business owners can assess the profitability of individual vessels and make informed decisions about resource allocation and fleet management.

Tips for Increasing Profit Margin in Yacht Charter Business:

  • Diversify Revenue Streams: Explore additional services such as yacht management, private charters, and event hosting to generate supplementary income.
  • Focus on Customer Acquisition: Implement targeted marketing strategies to attract new clients and expand the customer base.
  • Monitor Competition: Stay informed about industry trends and competitor offerings to position your Yacht Charter business effectively in the market.

By implementing strategic financial planning, adopting sustainable practices, and prioritizing customer satisfaction, Yacht Charter businesses can optimize their profit margin and achieve long-term success in the marine tourism industry.

Yacht Charter Financial Model Get Template

Yacht Charter businesses generate revenue through various streams that contribute to their overall profitability. Understanding these key revenue streams is essential for maximizing earnings and ensuring a successful venture in the luxury yacht charter industry.

Here are the primary revenue streams for a Yacht Charter business:

  • Yacht Rental Fees: The primary source of revenue for a Yacht Charter business is the rental fees charged to customers for the use of the yacht. These fees can vary based on the size and type of yacht, duration of the charter, and additional services provided.
  • Additional Services: Yacht Charter companies often offer additional services such as catering, onboard entertainment, water toys, and crew gratuities. These services come at an extra cost to the customer and can significantly boost revenue.
  • Peak Season Pricing: During peak seasons or holidays, Yacht Charter companies may implement premium pricing to capitalize on high demand. This strategy can help increase revenue and maximize profits.
  • Corporate Charters: Another revenue stream for Yacht Charter businesses is corporate charters for events, team building activities, and client entertainment. These charters often command higher rates and can be a lucrative source of income.
  • Destination Events: Yacht Charter businesses can generate revenue by hosting destination events such as weddings, parties, and special occasions aboard their yachts. These events attract premium pricing and contribute to overall profitability.

Tips for maximizing revenue in a Yacht Charter business:

  • Offer custom packages and experiences to cater to different customer preferences and budgets.
  • Invest in marketing strategies to target high-net-worth individuals and corporate clients for premium charters.
  • Utilize online booking platforms and social media marketing to reach a wider audience and increase bookings.

By diversifying revenue streams and implementing strategic pricing strategies, Yacht Charter businesses can enhance their profitability and achieve a healthy return on investment. It is essential to carefully analyze industry trends, customer preferences, and competition to stay ahead in the competitive luxury yacht charter market.

Operating a Yacht Charter business can be a lucrative venture, but like any business, it comes with its own set of financial risks. It is essential for Yacht Charter companies to identify and mitigate these risks to ensure long-term profitability and sustainability.

Below are the most significant financial risks that Yacht Charter operators should be aware of:

  • Seasonality: The Yacht Charter industry is highly seasonal, with peak demand during the summer months. This seasonality can lead to fluctuations in revenue and cash flow, making it challenging to maintain consistent profitability throughout the year.
  • High Operating Costs: Running a Yacht Charter business involves significant expenses, including maintenance, fuel, insurance, crew salaries, marketing, and administrative costs. These high operating costs can eat into profit margins if not managed effectively.
  • Depreciation of Assets: Yachts are valuable assets that depreciate over time. Yacht Charter companies must account for depreciation in their financial planning and ensure that they have a strategy in place to replace aging vessels to maintain a competitive edge in the market.
  • Competition: The Yacht Charter industry is competitive, with many players vying for a share of the market. Intense competition can lead to price wars, eroding profit margins and making it challenging to differentiate your business from competitors.
  • Regulatory Compliance: Yacht Charter companies must comply with various regulations and licensing requirements, which can incur additional costs and administrative burden. Non-compliance can result in fines and penalties that negatively impact the financial health of the business.
  • Customer Satisfaction: Maintaining high levels of customer satisfaction is crucial for repeat business and positive word-of-mouth referrals. Failure to meet customer expectations can result in reputational damage and loss of revenue.
  • Market Volatility: The Yacht Charter industry is susceptible to market fluctuations, economic downturns, and geopolitical events that can impact consumer spending habits and travel preferences. Yacht Charter operators must be prepared to adapt to changing market conditions to minimize financial risks.

Tips for Mitigating Financial Risks in Yacht Charter Business:

  • Diversify Revenue Streams: Explore additional revenue sources such as yacht sales, yacht management services, or partnerships with event planners to reduce reliance on charter bookings alone.
  • Monitor Key Performance Indicators: Keep a close eye on financial metrics such as profit margin, return on investment, and revenue per charter to identify areas for improvement and optimize profitability.
  • Invest in Marketing and Branding: Develop a strong brand presence through targeted marketing campaigns, social media engagement, and partnerships with luxury travel influencers to attract high-value customers and enhance brand loyalty.

Yacht Charter Pitch Deck
Get Template

Yacht Charter companies can implement various strategies to diversify revenue streams and boost profitability in a competitive market. By exploring new avenues for generating income and maximizing existing resources, Yacht Charters can effectively grow their business and increase their financial success.

Here are some key strategies that Yacht Charters can consider:

  • Offer Additional Services: Yacht Charter companies can offer additional services such as catering, event planning, photography, or watersports equipment rental to enhance the customer experience and increase revenue.
  • Partner with Luxury Brands: Collaborating with luxury brands or hotels for exclusive packages or promotions can attract high-end clientele and elevate the brand image of the Yacht Charter.
  • Expand Target Markets: Explore new target markets such as destination weddings, corporate events, or special celebrations to tap into diverse customer segments and generate new sources of income.
  • Invest in Marketing: Implement targeted marketing strategies, including social media advertising, search engine optimization (SEO), and email campaigns, to reach a wider audience and attract more customers.
  • Enhance Customer Experience: Focus on delivering exceptional customer service, personalized experiences, and memorable outings to build customer loyalty and encourage repeat business.
  • Utilize Technology: Invest in yacht charter management software, online booking platforms, and customer relationship management (CRM) systems to streamline operations, improve efficiency, and enhance the overall customer experience.

Tips for Yacht Charters:

  • Conduct market research to identify new revenue opportunities and industry trends.
  • Regularly assess financial performance and adjust strategies accordingly to optimize profitability.
  • Seek feedback from customers to continuously improve service quality and meet their evolving needs.

Calculating the return on investment (ROI) for a Yacht Charter business is essential for determining the profitability and success of the venture. The ROI for a Yacht Charter business can vary depending on various factors such as the initial investment, operational expenses, revenue streams, and market conditions.

In the yacht charter industry, the typical ROI ranges from 10% to 20%, which is considered a solid return on investment for this type of business. However, it is important to note that individual results may vary based on the specific business model, location, competition, and overall market trends.

Yacht Charter companies can enhance their ROI by implementing strategic financial planning, diversifying revenue streams, and focusing on customer acquisition and retention. By analyzing industry trends, understanding the competition, and optimizing marketing strategies, Yacht Charter businesses can maximize their profitability and ROI.

  • Diversify Revenue Streams: Explore additional revenue streams such as offering yacht management services, organizing luxury events on yachts, or partnering with local businesses for cross-promotion opportunities.
  • Enhance Customer Satisfaction: Focus on providing exceptional customer service, personalized experiences, and memorable yacht charters to increase customer loyalty and repeat business.
  • Invest in Marketing Strategies: Utilize digital marketing tactics, social media outreach, and SEO optimization to attract new customers, generate leads, and build brand awareness in the competitive yacht charter market.

By carefully analyzing the financial risks, forecasting annual revenue, and continuously evaluating the ROI, Yacht Charter businesses can make informed decisions to drive profitability and long-term success in the industry.

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yacht charter return on investment

  • FOUNTAINE PAJOT
  • Fountaine Pajot Charter Investment

Investing in Yacht Charter

Have you got the answers to the questions below?

Are you looking at investing in a yacht to put under charter management? Make sure you cover the basics and more before you spend your money!

Caribbean Yacht Charter Program - Fountaine Pajot and Neel new yachts

Contact us now to talk about your Charter Investment project

What is your Return on Investment with a charter yacht?

Some will say that there will be no retun on investment, others will say it pays well... You are rightfully cautious. So what's the trick?

You have to know about quite a few things before you dive in the adventure, to make sure it does not end up costing you, that you manage at least to cover expenses... and hopefully make extra money! That's where our Caribbean charter expertise comes into play. By reviewing all this together, we will give you an estimated return on investment for your charter yacht. Of course we have modelled ROI on charter yachts, but don't forget it's important to make it accurate with your private plans.

When is the Caribbean yacht charter season?

Of course there are not set calendar dates for the Caribbean charter season. Let's say that it goes roughly from early November to June. If you would like to haul out and store your boat on the hard outside the season, make sure that you book a shipyard early as they will go busy and many might be fully booked!

Can you use your own charter yacht?

Make sure you agree with your charter management or charter booking company early on this point.  Usually you can use your boat and set dates before the calendar is made public and shared with charter brokers. However you will of course think about maximising your potential earnings by having the boat available for charter at the busiest moments.

NEWS: Fountaine Pajot ELBA 45 awarded Best Charter Boat  by Cruising World!

What charter boat should you choose? What brand and models are highly demanded?

Most of the time, your own taste and budget will dictate the choice. However it really is important to make sure the model is demanded, and that there aren't too many competitors with the same one.

We will be able to tell you what bookings a boat makes in average, although of course this also depends on where the boat is and the rental price.

How should you choose a charter management or charter booking company?

What island should you keep your yacht in? Going to a Caribbean island or another might be an important choice for you, depending on airlines maybe or other reasons. There are other reasons why we would advise on certain companies: because they are trustworthy, because they make a lot of efforts and investments into marketing their activity, because their staff is very helpful, because you might appreciate their family business spirit...

In any case, if you are going to invest in a new yacht to rent out, make sure that the dealer will actually help with After Sales Service! We are the Exclusive Caribbean dealer for the North Caribbean for Fountaine Pajot catamarans, and as such we are here to help you out with after sales issues. We have over 10 years of experience in charter invstment and chart bookings, to help you choose the best in the Caribbean.

How to market for charter bookings?

The charter management company and charter booking companies will work their magic for you. That's why it is important to choose proactive ones.

You might also want to work on it yourself and invest in some webmarketing, to have direct bookings and avoid commissions. For some it could even be part of the fun!

Should you offer crewed charter or bareboat?

There are good and bad points for each one and you will have to make a choice.

  • Bareboat is more simple to handle, and most of charter management companies offer to clients the possibility to add a captain and/or crew anyway.
  • Crewed charter mean some more costs and issues, but it also means higher revenues and less worries about the boat being potentially damaged. With this in mind, we work with a partner in the USVIs to ensure best crewed charter experience.
  • You might even go for a permanent captain/crew in some cases to maintain your yacht. In which case the boat does not need to stay under charter management at a base. This is the case for more high-end yachts.

How much does it cost to maintain a charter yacht?

The maintenance cost could depend on many things: charter base, island, specialists, items and procedures, whethere there is crew or not.

However it is important ot make some financial projections and have an idea of average maintenance cost. We will help you budget these, to have better visibility on your return on your potential profit.

How long could your yacht be under charter program?

Many charter companies will not kee a yacht that is over 5 years or so, but it depends on companies, on the yacht maintenance, on the model and demand.

Check out with us what you could hope for.

Who should you insure your charter yacht with?

Charter management companies will usually offer their specialist insurer, which is usually the best choice. Check out with us what options there are.

And finally,

Why do we know so much more about Yacht Charter in the Caribbean?

Caribbean Multihulls director Peter Cohen has over 20 years of experience in the Multihulls field in the Caribbean and the Pacific. Both his partners Dominique and Derek have been in the charter business for decades in the Caribbean!

Whether with Fountaine Pajot sailing or motor catamarans, we have valuable information from years and years of experience.

Contact us now to talk about your Charter Investment project.

SuperyachtNews

By SuperyachtNews 24 Jun 2021

S/Y Elton: ensuring a return on investment

A discussion with andy scott, the owner of 32m sailing yacht elton, on running a profitable charter yacht….

Image for article S/Y Elton: ensuring a return on investment

British entrepreneur and owner of sailing yacht Elton , Andy Scott has made his millions by turning around failing companies under his investment company REL Capital, and attributes his career path to his long-held passion for restoring tired and neglected boats. From a young age, Scott has bought old boats and worked to repair and restore them, always with the aim of making a healthy profit. 

“A family friend had a run-down 30ft yacht, which I took on when I was 14, and I just got the bug for these projects really young,” explains Scott. “And that shaped my career in a way – getting old boats on the water again – because I started out as a property foreman and then went into the business of buying run-down companies on the brink of failure and turning them around to keep them long term.” 

Scott now views his yacht projects in the same way that he does business; “I just look at it really simplistically: if you buy at the right price, and you know what you’re going to spend on it, then you’ve got an asset there which owes you ‘x’ amount. If I think I can rent it out for a certain number of weeks each year, and get a return on investment reasonably quickly, then I usually go for it.”

Scott currently owns two yachts: 32m sloop Elton and 20m classic Sangermani yacht Telstar . He recently sailed Elton from the UK’s South Coast to the Mediterranean following a refit that included new rigging and several interior projects to modernise her. Elton will be based in the Mediterranean for the 2021 summer charter season and will cross to the Caribbean in the winter. 

yacht charter return on investment

At the time of speaking, Elton has eight weeks’ worth of bookings for this summer (with West Nautical as central agent), meaning that the boat is already proving a sound investment for Scott. “She’s chartering for eight weeks at around 30,000 euros a week, and that’ll make probably 100,000 euros of profit,” estimates Scott. “If the boat can bring in 240,000-300,000 euros a year of income, there’s enough for me to pay the crew, have a reasonable maintenance provision and make some money.”

While Scott acknowledges that there may be more interest in charters this summer due to the pandemic, with several longer charters booked in, he is hopeful for a successful Caribbean season also. “I already have two charters booked for two weeks, and you can guarantee that Christmas and New Year will also fill up. Of course, I have to consider the time it takes to do the crossings and the toll it takes on the boat, but four or five weeks of charters over there will make the trip worthwhile,” he assesses.

In addition to securing charters to ensure a return on investment, Scott is particular about the way he runs the boat. “You have to do it leanly,” he explains. “I do all of the management myself – people get ripped off when there’s so many layers of consultants and management. And, in terms of charters, I’m really opportunity-lead. If we can get offers out of clients, we’ll see if we can get the boat there – it’s about being flexible. The key to me is trying to get clients as return guests – making every aspect feel like a returning home, without the downside of running costs – because that obviously helps the return on investment.”

As well as prioritising any charter opportunities over his own usage, Scott also differs in mindset to the typical yacht owner when he’s on board. “I think that traditional owner-crew dynamic is probably a bit outdated – I think of myself as part of the team and part of the crew,” he adds. “I don’t expect to be waited on, I do watches, and I think that changes the dynamic for the better.”

Scott’s other yacht, the 20m Telstar,  is currently in the midst of being restored. As with Elton , Scott hopes to make the boat profitable on the charter market. “The aim is to charter it out for six weeks a year at 12,000 euros a week,” he concludes. “It is modelled a little bit differently because of the additional classic regatta income stream, so I think that will be an interesting market in the next couple of years as well.”

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West Nautical

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Charter Investment Business Models

Multihull Solutions has assisted many people in their purchase of a catamaran for charter, and we know that with careful and cautious decision making, owning a charter boat can be an extremely rewarding decision.

The purchase price of owning a boat for operation in charter can often be more than that for a private yacht because of the costs associated with making the boat suitable for use as a commercial vessel. These additional costs might inflate the new boat price by between five and ten per cent, depending on the level of work required.

When considering the pricing difference between what the factories call a “base boat price” and the complete price for a charter boat, it is important to realise that many of the additional extras listed are extras that a private owner would also request when ordering their boat.

In Australia, when considering purchasing a boat for operation as a charter boat, the owners can refer to the ATO website and consider, among other things explained on the site, the May 2006 press release which relates to the additional “safety net” legislation. In essence, owners have a choice between two models,depending on their personal circumstances and the operating circumstances of the boat:

  • A charter boat business which in all respects meets the tests of a complete charter boat business as described in the Charter Boat Tax Ruling TR 2003/04 released in May 2003. This can be accessed via the ATO website using a keyword search function. A significant factor in this ruling is the need for the business to indicate prospect of profit and significant commercial purpose, as shown in the examples within the ruling. This model, set up and operated correctly, potentially allows full negative gearing (FNG) in a similar manner to an investment property where surplus losses from one business may be offset against other assessable income. With any potential charter boat purchase, where you are seeking to obtain Full Negative Gearing we would highly recommend any buyer seek a Private Ruling from the ATO to ensure its compliance with current tax law. Peter Jabour (Ph: 02 4929 4068) is a Newcastle based accountant who is very familiar with the Private Ruling process.
  • A charter boat enterprise which may not meet all of the tests of a complete charter boat business as described in the Charter Boat Tax Ruling TR 2003/04 released in May 2003, however is still an income producing enterprise. This model potentially allows expenses from the boat to be offset against income from that boat, however limited to that income only and any additional losses “quarantined” to be offset against any future revenue from that boat (including any profit on sale). This style of business is also referred to as a Hobby Based Enterprise.

Potential charter boat owners should see this new two-tiered approach as a stable, common sense platform from which to evaluate their charter boat investment and determine the type of structure which would best suit their circumstances.

Example circumstances of Charter Investment ownership

If the owner is operating a $600,000 charter boat as a “charter boat business” and has matched the right boat with the right charter company with suitable occupancy and revenue levels being achieved, it could be assumed that approximately 35 per cent of the Gross Revenue will be retained as a net return before any interest or depreciation is considered (over a 3 to 5 year period).

If the boat was to earn gross income of $150,000 per annum (excluding GST) from an estimated 175 days of charter revenue (an average over a year), it would be appropriate to assume approximately $100,000 of costs would be incurred as expenses, including insurance, berthing, annual haul-out and antifoul, engine servicing, other maintenance, cleaning and turn arounds between charters, operator management fees, marketing contributions, annual registration costs, fuel and all other costs associated with the boat’s operation.

This would deliver approximately $50,000 net return to the owner per annum. From this position the end outcome with regards the financial benefits of owning a charter boat vary greatly depending on the personal situation of the boat owner and would need to be considered in light of such variables as:

a)  Any loan structure on the boat including the % of purchase price borrowed;

b)  The personal tax profile of the owner;

c) The period of time the boat will remain as a charter boat;

d) The intended circumstance of the boat once it has completed its charter life.

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yateseuropa

Investment concepts for charter yachts

Invest in europe: buy a yacht for charter, good value for money and own use.

The investment models consist of the purchase of a yacht and the simultaneous execution of a contract with a professional charter company for 3-6 years. The yacht remains the property of the buyer.

These models have been very popular in Europe for many decades. About 90% of the charter yachts in Europe are not owned by charter companies, but by thousands of individual owners.

The charter company takes care of the permanent mooring of the yacht in its harbour, concludes charter contracts with its clients, takes care of the reception of the clients on board, the care, maintenance, repair and insurance of the yacht. A team of professional technicians and cleaners are also part of the service for your yacht, so that it is always well maintained and ready for use at any time.

The owner can decide again every year if he wants to sail his yacht himself for a maximum of 4 weeks per year in summer. He can also transfer these weeks to family or friends and acquaintances.

Return on investment

  • The charter income not only covers all operating costs, but also generates a substantial profit which is paid annually to the owner.
  • An annual 4 weeks of own use of the yacht offers the owner an enormous saving compared to chartering a comparable yacht.

The demand for new yachts in Mallorca and Croatia currently exists for:

Sailing yachts

Dufour Yachts: 41, 44, 470, 530
Beneteau Oceanis: 38.1, 40.1, 46.1, 51.1

Sailing catamarans

Fountaine Pajot:  Isla 40, Astrea 42, Elba 45, Tanna 47, Aura 51

Los veleros son muy deseados para el chárter

REQUEST INFORMATION and QUOTATION

Please let us know your desired yacht, the brand, the size and the desired location. You will receive a detailed offer from us.

Sail Aegean

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Sailing Holidays – Marine Services

Yacht investment

Since the beginning of its yacht charter operations in 2011, SAIL AEGEAN’s goal has been to invest in high-quality new sailing yachts, so that its clients can enjoy wonderful sailing holidays in a beautiful sailing region.

Our experience has shown that this goal can be achieved by investing in yachts from the BENETEAU Group boatyards (JEANNEAU, BENETEAU, LAGOON).

Due to its ever-increasing success since 2011, SAIL AEGEAN adds further yachts to its fleet every year in order to meet growing charter demand. This has been facilitated by the high returns that SAIL AEGEAN has generated for all yachts in its fleet.

After just 9 years, SAIL AEGEAN has the largest fleet of new and well equipped yachts on the Aegean coast of central Greece, and moreover, is currently in the process of developing a marina in the gulf of Volos.

SAIL AEGEAN is also in a position to offer interested persons the opportunity to invest in a yacht that would be chartered and managed through its own investment programmes.

Yacht Management

Why invest in a yacht.

The practicalities of owning a yacht may be somewhat daunting when you consider the initial purchase price of the yacht, the ongoing costs for mooring fees, insurance and maintenance, the amount of time spent on taking care of the yacht rather than sailing it, and what to do with the yacht when you are not using it! But you do not need to worry about these considerations when you invest in a yacht under yacht charter management, or “buy-to-charter”. Under such agreements, you own a yacht, 100% at the outset or over time, and a charter company is responsible for ongoing costs, taking care of the yacht and chartering it. In addition to sailing your own yacht, you benefit financially from the investment.

SAIL AEGEAN offers you the opportunity to invest in a brand new JEANNEAU/BENETEAU sailing yacht or LAGOON catamaran, and to profit from its expertise in yacht management to generate a healthy return on your investment. SAIL AEGEAN works to ensure that your yacht is booked for the charter season so that the agreed financial goals are met, while giving you the possibility to enjoy the yacht privately, without the management burden or expense. All costs, such as yacht insurance, mooring fees, winterization, maintenance and repairs during the management period, will be covered entirely by SAIL AEGEAN.

An additional advantage with “buy-to-charter” is that the purchase price of a new yacht for charter is exempt from the value added tax (VAT) in Greece, currently 24%. Payment of VAT is only due if/ when the yacht is no longer used for charter but only used privately instead. In other words, the total price of a yacht bought for charter in Greece is less than the total price of the same yacht bought exclusively for private use.

Moreover, the unique and impressive characteristics of SAIL AEGEAN’s sailing region reinforce the potential for your yacht to be chartered successfully and guarantee you a good return. Many of SAIL AEGEAN’s clients fall in love with the region and return again and again. These characteristics include:

  • unrivalled natural beauty with its unspoiled coastlines, clear teal-coloured waters and green landscape
  • quaint and colourful villages and fishing harbours
  • numerous small uninhabited islands that are only accessible by yacht
  • variety of sailing conditions to suit all preferences, with protection from the summer ‘Meltemi’
  • (strong northerly winds that can be problematic for sailing in other parts of Greece)
  • no mass tourism and little marine traffic
  • marine animal spotting and protected marine park
  • possibility of land tourism on the beautiful Mount Pelion, with its impressive landscape, architecture and culture.

Our Programmes

SAIL AEGEAN operates three yacht investment programmes:

  • 100% own funds, with an expected income of 8% paid every year for 6 years.
  • 60% own funds and 40% interest-free loan from SAIL AEGEAN, with a guaranteed income of 3% of own funds paid every year until repayment of the loan, approximately 6 years.
  • 35% own funds and 65% interest-free loan from SAIL AEGEAN. No guaranteed income until repayment of the loan.

What does the purchase price of the yacht include?

The purchase price includes the yacht and its factory equipment, full charter inventory, commissioning and delivery to SAIL AEGEAN’s main charter base in Volos, Greece. The equipment and inventory of the yacht will be comprehensive and provide the best possible charter conditions, and will be discussed with the investor before the yacht is ordered. They will notably include optimal cabin layout and heads, navigational equipment (chart-plotter, autopilot, electronic wind instruments, etc.), bimini and spray-hood and safety equipment required under Greek maritime law, as well as all other items needed to charter the yacht, such as kitchen equipment, towels and linen, etc.

What happens at the end of a programme?

Once you have full ownership of the yacht, either after 6 years or after the loan has been repaid, you have the option to (a) extend the yacht charter management by SAIL AEGEAN (b) sell the yacht through our brokerage network (or privately) or trade in the yacht for the purchase of a new charter yacht or (c) keep the yacht and sail away. If you decide to keep the yacht and no longer want SAIL AEGEAN’s services at the end of a programme, your yacht will be de-branded and returned to you in full working order.

When can I use the yacht myself?

Throughout the yacht management period, owners can enjoy sailing their own yacht under all three investment programmes as follows:

  • Off-season: April and November
  • During the charter season from May to October (26 weeks):

Up to 7 weeks of sailing will be made available to owners by SAIL AEGEAN at short notice.

The only costs to be covered by owners during their private use of their yacht are end cleaning, check-in/out fees and fuel consumption, plus skipper and security deposit insurance, if required.

Get to know Sail Aegean

Before making any decisions, you may wish to familiarize yourself better with SAIL AEGEAN and its yacht charter operations. Consequently, SAIL AEGEAN would be happy to offer you a substantial discount on a test charter for you to experience a sailing holiday in its region and learn more about the charter procedures and SAIL AEGEAN’s two bases: Volos port and Loutraki harbour (Skopelos island).

yacht charter return on investment

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yacht charter return on investment

SAIL AEGEAN is a Belgian/Greek yacht charter operator company, offering bareboat and skippered charters, as well as flotillas, in a beautiful region in central Greece – the Gulf of Volos (Pagasitikos), the Sporades Islands and Northern Evia.

With our ever-expanding fleet and growing success, our own boatyard, warehouse/chandlery and very experienced in-house marine technical service team, we strive to maintain our yachts in excellent condition and offer the best charter service in the region. We also offer marine technical services for other yacht owners and the possibility for yacht investment.

  • Our Sailing Region
  • Useful Information
  • Charter Client Reviews
  • Discover Pelion
  • Marine Services
  • Yacht Investment
  • Sail Aegean Real Estate/Marine Resort
  • About/Contact Us

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SMART PROGRAM

Is the navigare smart program the right fit for me.

Fantasizing about becoming a yacht owner and traveling the world at leisure, but are you on the lookout for a lower total investment? Navigare opens the door up for investors who see yacht charter as the smart investment that it is and are looking to enjoy all the freedoms that yacht ownership allows, at a fraction of the cost.

Overview 

6 SEASONS OF THE PROGRAM

UP TO 12 WEEKS OF SAILING PER YEAR

50-60% INITIAL PAYMENT

MAINTENANCE CHECK

HOLIDAY PROGRAM

What is the Smart Program?

Become a yacht owner for a slice of the total cost of the yacht, building up your investment gradually over time. Whilst the charters work away to pay for the cost of your investment, you can indulge in the unique benefits of owning your boat and enjoy the use of our holiday program. To begin your investment journey, you can decide to purchase your yacht through Navigare at either a 50-60% initial payment with Navigare Smart or a 40-50% initial payment + balloon payment of 15% at the end of the charter period of 6 seasons, with Navigare Smart Low. Placed in our charter fleet, we take the stress out of charter management and arrange the yacht maintenance and charter operations on your behalf. Not only do you have the peace of mind that your yacht is well looked after, but also by the end of the term the yacht will be yours, and you will be free to sell the boat or simply sail away!

There are so many perks to yacht ownership, with the flexibility and freedom to travel and an investment that builds slowly over time. But the most coveted perk of all is the incentive that yacht ownership gives you to get out there and enjoy life! Some Navigare yacht owners like these programs so much, that they are now onto their third and fourth boats. And if you’re thinking of retiring and cruising in five years, why not start on that plan now?

If all this sounds like a piece of heaven to you, it’s time to invest!

catamaran sailing

Key benefits of owning a sailing yacht or catamaran in charter management

START YOUR INVESTMENT JOURNEY

Your investment journey starts here! Make the most of the funds you have and make an investment that brings you a steady repayment, whilst allowing you to travel the world and live the adventurous sailing lifestyle from the comfort of your yacht.

FORGET ANY ADDITIONAL COSTS

Leave your worries on the shore and enjoy your yacht stress-free, knowing that there are no hidden costs for maintenance. Keeping the boat maintained is an essential part of yacht ownership and can be a time-consuming chore. With Navigare Complete we ensure the quality of your yacht at zero cost to you. With our unique online Service Platform, you can follow all planned services in real time, and when it is time for the yacht to be sold second-hand, you will receive an automatically generated service book.

EXPLORE THE WORLD

Dreaming of Mediterranean sunsets, clear blue waters, and Caribbean adventures? Roam the seas at your leisure with up to 12 blissful sailing weeks a year, reserved just for you. Not only is this service available for your yacht, but you also have the unique opportunity to test out a wide variety of boat models, visit new destinations, and even take your adventure on land. With a personal concierge service, Navigare helps you to create your best sailing holidays yet, and you can share the unrivaled experience of sailing with loved ones, as owner weeks can be used by your direct family members.

Navigare Smart program and financial aspects

Why does the upfront cost vary.

The reason for the range in % cost is that the figures vary by model and by destination — the most attractive boats (catamarans in the 40-50ft range) in the most attractive destination (BVI, Seychelles) will yield the best returns, thus the total investment from your side will be less.

How may I finance this purchase?

When you choose Navigare Smart you pay only 40-70% of the total yacht and the charter income will finance the rest. You don’t receive any revenue from this charter program as the revenue covers the mortgage, service, maintenance, and insurance (with Service Platform access). Choose from the most exclusive brands and models, such as Lagoon, Bali, Fountaine Pajot, Island Spirit, Beneteau, Dufour, Jeanneau, and Arcona.

- Lowest initial payment is 40-70% -

Smart Low First Payment (50%): 400 000 € Second Payment season 6 (15%): 120 000 €

During 6 seasons you get:

  • Up to 12 weeks of owner time (sailing and luxury stays)
  • Professional yacht and charter management
  • Dedicated owner support
  • All operational costs for the Yacht are covered by Navigare

Net cost: 520 000 €

catamaran sailing

Additional benefits that come with owning a new sailboat or new catamaran

Start your new lifestyle

Gain exclusive access to Navigare’s Holiday Program when you take part in any of Navigare’s Investment Programs and earn points to exchange for unforgettable holidays. The larger your yacht, the more points you get to use on a yacht of similar size, or smaller for even more sailing time.

Become a Global Sailor

Hoist your sails and rev your engines! With the holiday program, you can become a global sailor, with the potential to set sail for up to 12 weeks every year on your yacht, or another equivalent yacht of your choice. With so many glorious sailing destinations around the world, it can be difficult to settle on just one, but with 11 Navigare bases and access to over 50 destinations worldwide, you have the flexibility to experience a multitude of different locations.

Customize your Holidays According to Your Wishes

Our Holiday Program doesn’t just stop at sailing in one of our worldwide destinations, we also offer a large variety of on-shore vacations. From luxury villas in Thailand, Costa Rica, Jamaica, or Florida, to ski resorts in the Alps or Aspen, you can customize your vacation to suit your wildest desires.

Get the VIP Treatment

Live life like a VIP and let our dedicated high-class concierge team assist you in planning the most exceptional holidays you’ve experienced yet.

Inquire About Yacht Ownership

catamaran sailing

What’s my exit strategy?

The proposition of charter yacht ownership begins at the end. The better you can define what you want out of the program, the more you can structure what goes into one. Do you want to sail more and have exciting vacations? Do you want to hone your skills or teach your kids to sail? Do you want to retire and take the boat cruising? At the end of your contract, will you roll over to another boat for extended ownership? Will you sell the charter boat and buy your cruiser? The answers to these questions will guide you in what kind of boat to buy, which location to select, and which company to work with.

Owning a yacht in charter gives you flexibility but also the impetus to get out there and enjoy life. Some owners like these programs so much, they’re on their 3rd or 4th boats and they’re getting paid while they sail. And if you’re thinking of retiring and cruising in seven years, why not start on that plan now? If all this sounds like heaven to you, maybe it’s time to tend to that bug bite.

catamaran sailing

Short summary

Dreaming of traveling the world on your very own sailing yacht or catamaran? Yes! With our Smart program, you can take advantage of being able to enjoy sailing at your leisure and at the same time earn a steady return on your investment. This of course rise some questions: how much do sailboats or catamaran cost? What is the cost of owning a boat? What are the benefits of this exclusive lifestyle? Finance your boat with the Navigare Smart program gives you:

  • 6 seasons of the program
  • Dedicated owner-care support
  • Maintained checks

Ultimate

Variable return up to 12% annually for up to 7 seasons, net of operating costs. 

Complete

Guaranteed return up to 8,5% annually up to 6 seasons. No operating costs: maintenance, charter turnovers & insurance, etc. are covered by Navigare.

Smart

Pay for approximately half of the yacht's purchase price without financing. The charter income will pay for the second half of the yacht! After 6 seasons in the charter, the yacht is yours free & clear.

Request info

Yacht ownership request.

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COMMENTS

  1. Is Owning a Yacht for Charter Profitable

    Yes, owning a yacht for charter can be profitable but owning a yacht will rarely "pay for itself.". Chartering your yacht presents some unique benefits that can lead to opportunities to make a profit off of your investment in a myriad of ways, including offsetting the cost of owning a yacht, selling your yacht for a profit, and even making ...

  2. Can Owning a Yacht to Charter (Really) Be Profitable?

    NEEL 51. Considering numerous factors, the return on investment (ROI) of a yacht for charter can significantly vary. Just keep in mind that while some yacht owners can generate profitable returns, the vast majority of yachts may experience lower or even negative ROI.

  3. Is Owning a Yacht for Charter Profitable? Things to Consider

    The financial landscape of owning a yacht charter business in the United States presents a promising but varied picture. ‍. According to industry insights, the average annual revenue for a yacht charter business owner ranges impressively from $300,000 to over $1 million, highlighting the lucrative potential of the industry.

  4. What It's Really Like to Own a Boat in Charter

    Expenses: A new sailboat is a big investment, but in the end our cost of ownership was one of the best parts of the whole deal: during our five-year charter ownership we received $101,587 worth of retail value charters at a cost of zero dollars. Like all charterers, we paid a turnaround and fuel fee (cleaning, linens, diesel for the engine ...

  5. Yacht Ownership Programs

    First Payment (50%): 400 000 €. Second Payment season 6 (15%): 120 000 €. During 6 seasons you get: A yacht. Up to 12 weeks of owner time (sailing and luxury stays) Professional yacht & charter management. Dedicated owner care support. All operational costs for the yacht are covered by Navigare. Net cost: 520 000 €.

  6. Charter Yacht Management & Marketing

    Chartering your private yacht is the most effective way to maximize return on your luxury investment. Charter income can offset the costs of ownership, such as maintenance, running costs and crew salaries. ... The Bahamas charter yacht TOP FIVE II, a 200′ Royal Hakvoort luxury yacht designed by Sinot Yacht Architecture & Design, is now ...

  7. Chartering Your Own Yacht

    A busy charter yacht can cover a significant portion of your operating expenses such as dockage, maintenance, insurance, and other incidentals. Additionally, charter yacht ownership produces an income that you otherwise as a private owner wouldn't have, providing a faster return on the investment. Increased yacht reputation and value

  8. 7 Proven Strategies to Boost Yacht Charter Profitability

    In the yacht charter industry, the typical ROI ranges from 10% to 20%, which is considered a solid return on investment for this type of business. However, it is important to note that individual results may vary based on the specific business model, location, competition, and overall market trends.

  9. What is the best yacht ownership program?

    Navigare Yachting's Ultimate program provides unparalleled flexibility and empowers you to steer the course of your yacht ownership experience. With this program, you have complete control over how often you explore our 11 destinations and have the potential to maximize your charter revenue with a variable income of up to 12% annually.

  10. Barefoot's Guides for Prospective Charter Yacht Owners

    Estimated yacht value in 2022 ($ 000s): this is the expected fair market value of the yacht as it comes into the Barefoot fleet. Total annual charter revenue ($ 000s): This is the estimated total charter revenue earned annually over a 5 year period. Owner net profit after Year 5 sale, Target Utilization Scenario ($ 000s): This is the total ...

  11. What to consider when buying a yacht to charter

    The financial value is great, and you get to enjoy sailing in beautiful waters. Moreover, depending on the yacht and charter program you choose, the return on investment can be more than just covering expenses. Compared to traditional ownership, owning a yacht in a charter fleet will reduce the cost and minimize your financial exposure.

  12. Yacht Charter Investment in the Caribbean

    Crewed charter mean some more costs and issues, but it also means higher revenues and less worries about the boat being potentially damaged. With this in mind, we work with a partner in the USVIs to ensure best crewed charter experience. You might even go for a permanent captain/crew in some cases to maintain your yacht.

  13. Stress free Yacht ownership & Investment

    1. Yacht Charter Investment Investing in yachts offers a unique blend of luxury and financial gain.As the demand for exclusive travel experiences grows, so does the potential for a lucrative return on your investment.Whether you're a seasoned investor or exploring new opportunities, yacht charter investment provides a compelling avenue for both financial success and unforgettable experiences.

  14. S/Y Elton: ensuring a return on investment

    In addition to securing charters to ensure a return on investment, Scott is particular about the way he runs the boat. "You have to do it leanly," he explains. "I do all of the management myself - people get ripped off when there's so many layers of consultants and management. ... As with Elton, Scott hopes to make the boat profitable ...

  15. Is Investing in Yacht Charter be profitable?

    Utlimately, in our opinion the answer is YES, Yacht Chartering can still be a profitable line of business to be in. As a boat owner we would suggest to associate with companies like Upyacht.com or BoatBookings.com or even trying to invest in such companies together with managing your own yacht which would put you in a strategic investor position.

  16. Buy a boat and financing a boat through yacht charter management

    Placed in our charter fleet, we take the stress out of charter management and arrange the yacht maintenance and charter operations on your behalf. Not only do you have the peace of mind that your yacht is well looked after, but your yacht investment is risk-free too, with a guaranteed income of up to 8,5% that is generated regardless of charter ...

  17. Business models

    Example circumstances of Charter Investment ownership . If the owner is operating a $600,000 charter boat as a "charter boat business" and has matched the right boat with the right charter company with suitable occupancy and revenue levels being achieved, it could be assumed that approximately 35 per cent of the Gross Revenue will be retained as a net return before any interest or ...

  18. How to Charter a Yacht: Pricing, Best Destinations, Brokers and More

    July 7, 2023 at 3:10 AM EDT. Save. When Allen Ware, 62, a California-based Google executive, decided it was time to satisfy his vacation wish list goal of chartering a "big yacht" in Italy, he ...

  19. Buy a yacht for charter: profit and own use

    Return on investment. The charter income not only covers all operating costs, but also generates a substantial profit which is paid annually to the owner. An annual 4 weeks of own use of the yacht offers the owner an enormous saving compared to chartering a comparable yacht. The demand for new yachts in Mallorca and Croatia currently exists for:

  20. Yacht Investment

    Our Programmes. SAIL AEGEAN operates three yacht investment programmes: The investor pays the full purchase price of the yacht at the outset and receives an annual income through returns generated from chartering the yacht. The investor pays 60% of the purchase price of the yacht at the outset and receives an annual income and repays the loan ...

  21. Investment ownerships programs ultimate gives you variable income of up

    Purchase your boat through Navigare and place it in our charter fleet for 6 seasons. Buy a boat and finance a boat through yacht charter management. ... As you will cover the costs associated with maintenance, the Ultimate program also affords you the highest return for your investment, should your boat require less upkeep. You have the power ...

  22. Yacht charter investments : r/yachting

    The ROI would be without expenses/maintenance costs. But if the boat is new, you will save a good amount there. Usually the yachts we have in our charter portfolio are above 35 meter. But for clients looking for smaller yachts, we do help with the entire buying process and connecting them to the brokers who can assist with the charters.

  23. Navigare Smart sailing investment program

    To begin your investment journey, you can decide to purchase your yacht through Navigare at either a 50-60% initial payment with Navigare Smart or a 40-50% initial payment + balloon payment of 15% at the end of the charter period of 6 seasons, with Navigare Smart Low. Placed in our charter fleet, we take the stress out of charter management and ...