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Whether on Instagram, Facebook, YouTube or the web, just about everyone has seen ads for luxury yacht charter vacations. Gourmet meals, white glove service, and Ri¢hie Ri¢h toys are the benchmark of these lavish floating resorts. The essence of The Superyacht Experience™ is a passion for discovery, and a longing to reconnect with family and friends – fueled by a generous budget. We bring you three ways to avoid being ripped off on your yacht charter.
How do you know the rate quoted for a superyacht holiday is legitimate. In specific, not an arbitrary, marked-up price. Further, designed to take advantage of your affluence? Beyond the accuracy of the price, how do you know if it’s a good deal as well?
We have outlined three steps to take to guarantee your charter rate is accurate, fair – and a great value for the money invested. Following these steps will help you avoid price gouging and rip-offs by unscrupulous merchants.
Note: We’ve also included helpful advice from our company President, Jana Sheeder (1-800 Yacht Charters).
First, UNDERSTAND who sets the rate for a yacht for hire.
The first step to ensure you are quoted a legitimate price for your yacht charter adventure is to understand who determines the price. In the world of ultra-luxury yachts available for hire, the charter rate is set by the yacht OWNER. Luxury charter yacht owners typically hire a company referred to as a “Central Agent” to serve as their representative. The central agent (CA) maintains the yacht’s charter calendar, administers the charter paperwork, and collects the charter funds. Many CA’s will offer guidance to an owner to help establish a fair price for charter (often based on comparisons to similar yachts), but ultimately it is the owner who sets the rate, and the CA publishes that rate.
Secondly, CONFIRM the rate quoted is the rate set by the yacht owner.
Luxury yacht owners rarely make themselves or their CA available to the public – preferring to leave the business of chartering in the hands of professional Charter Brokers. These brokers perform much the same role as real estate agents – serving as the go-between for the Buyer (Charterer) and the Seller (Owner). Charter brokers have access to the CA’s and are responsible to confirm rates and date availability with the CA’s.
Once you have narrowed down your options to a specific yacht, ask your charter broker to provide a written cost proposal from the CA – ensuring the rate quoted is the rate established and set by the yacht owner.
“Some charter brokers will balk at the request of a written cost proposal from the CA, fearing the client will attempt to contact the CA directly to secure a better deal. If you sense hesitation on the part of your broker, tell your broker to ‘register’ your name and inquiry with the CA. To do this, send your charter broker a short, written note (via email) naming your broker as your authorized charter representative for the purpose of securing the charter of the specific yacht for specific dates. Your broker then shares that note with the CA and registers you as their client. Now the broker will feel protected and will be more inclined to seek written confirmation from the CA as to authenticity of the rate quoted.”
Thirdly, MAKE an offer!
Once your broker has communicated the published rate to you, and you have verified the rate is accurate, consider making an offer below the published rate. Again, think in terms of the real estate marketplace. Sometimes (but not all of the time), a property owner will accept an offer to purchase his or her real estate for an amount below the published selling price.
Unless you feel the published rate is fantastic, we can’t think of any reason not to ask for a discount! Think the owner is gouging a bit in high season? Ask for a discount. The owner may accept your offer, make a counter-offer, or simply say no. The point is – it’s your money, and you just might end up keeping more of it in your pocket!
“Before you make an offer, ask your broker if they have ever secured a discount from this owner in the past, and how much (%). The answer might surprise you. At the very least, it will help you formulate an offer based on the owner’s prior willingness (or lack thereof) to negotiate below the published rate.”
In conclusion, by following these three steps, you are safer. You ensure the charter rate quoted is not only accurate and fair, but also the best deal available. The Superyacht Experience™ includes honest, ethical advice from a yacht charter company serving discriminating clientele since 1976.
Take the promise of a great rate to a whole new level – only 1-800 Yacht Charters offers a “Best Price Guarantee.”
This entry was posted in News Frequently Asked Questions Educational and tagged Best Price Guarantee, Jana Sheeder, president of 1-800 Yacht Charters, the superyacht experience, Make an offer, How to get best price on a yacht charter, 3 ways to avoid getting ripped off, what is a Central Agent?, written cost proposal, honest advice by yacht charter companyPosted on