Where is the Value in the Charter Price?
One of the most frequent questions a client asks me is “How does the owner arrive at a charter price?”
This usually stems from the client looking at two virtually identical yachts in terms of: cabin sizes, length and amenities which are priced ten to fifteen thousand dollars apart.
Answer: I don’t know how owners arrive at their charter prices. What I do know is the difference in the VALUE of a charter price from yacht to yacht. When I’m looking at yachts and meeting the crew, I’m putting myself in my client’s shoes and checking to see if this yacht/crew package is a good value. I don’t compare yachts to other yachts; I compare each yacht to its charter fee.
For x amount of dollars per week, what is the client getting? Are the cabins clean, good size and welcoming? Are there any unpleasant smells emanating from the heads or the bilge (you’d be surprised!!) Are the salon and fly bridge or cockpit comfortable? Are the water toys relatively new and in working order? Does the crew greet me with warmth and enthusiasm or are they distant? If I am aboard for a meal, what is the cuisine and how is the chef trained? Is the service prompt and professional? What sets the captain, chef and crew apart from their competition?
If the answer to most of these questions is positive, I then look at the yacht’s bookings – is she heavily booked? Does she have many repeat clients? If so, she is a good value and I will offer her to clients with confidence.
We’ve seen many types of discounting in the last few seasons. Does this mean the yachts are overpriced? Maybe, in some cases. Most of the yachts which offer a discount such as 8 or 9 days for the price of 7 are offering more value for their charter fee and are fully intent on chartering. We typically see 10 % discounts offered on bookings of 2 weeks or more.
The winter charter market is busy and yachts book up fast. I am advising clients to start the search for their charter yacht early. There will be good values and they will book up quickly.
Call or email now for best availability.