While direct booking of a self-drive bareboat is common and the norm, the same cannot be said for renting a crewed yacht. Organizing vacations on crewed yachts, especially ultra-expensive superyacht charter vessels, requires assistance. Intermediary experts are important since few owners have the time. Additionally, they do not have patience or interest in dealing directly with prospective charter customers. After all, few yacht owners became billionaires by chatting with strangers on the phone!
It’s hard to dispute the important role retail brokers play in arranging crewed private yacht charter vacations. Most have an extensive understanding of the industry. For instance, first-hand experience of inspecting charter yachts and interviewing the crews. In addition, preparing charter agreements. A good broker is key to a successful and unforgettable (The) Superyacht Experience™.
Using a retail yacht charter broker, however, is not a guarantee of a great yachting vacation. There are many misconceptions – some promulgated by the brokers themselves. Exposing these fallacies can save headaches and money. Let’s look at, and debunk, three common myths associated with the services of a retail charter broker.
This is the most common misconception. Subsequently, many brokers quickly use this line to encourage a prospective client not to call competitors. It is partially true. There is a published “rack rate” available to all retail brokers. As compared to upscale resorts, villas, and jets, sometimes there are multiple pricing options.
Jana Sheeder, President of 1-800 Yacht Charters explains,
“In situations where we have delivered multiple charters to a particular yacht owner, we are in a unique position to secure ‘best column pricing’ for our preferred clients – prices that other retails brokers cannot obtain.”
Sheeder goes on to explain how relationships and reputations also play a role in securing preferred pricing.
“If you’re honest and respectful, over the years, you build relationships with captains and yacht managers. I can’t tell you how many times we have reached out to a captain to ask for a professional courtesy discount for one of our clients. The captains have the ear of the owner and often can encourage an owner who would normally not offer any discounts, to give our client a special rate.”
The bottom line – the best brokers can, on occasion, secure rates not available to other brokers. When considering the hiring of your charter broker, directly ask the broker if all brokers gets the same prices. If he or she says “Yes,” move on and find another broker!
It serves as a great marketing phrase for many brokers. “My advice to you is free.” Consequently, it is simply untrue. Yes, the commission check received by the broker comes from the yacht owner’s account, but just as in real estate, the list prices have been adjusted to account for the fees earned by brokers.
Sheeder bristles at the notion of free advice. “Many brokers are quick to state their services are free, and you’ll see this marketing slogan prominently displayed on their websites. We have greater respect for our clients. While there is great value in the services we offer – nothing is free, and an educated consumer is aware that the prices offered by a yacht owner include the cost of the retail charter broker’s services.”
This is even more evident when booking a bareboat yacht charter, as bareboat companies take in direct reservations and will often give customers discounts of 10 to 15% – the amount they save if no charter broker is involved.
Sheeder feels complete transparency is the best course of action. “We tell our clients exactly how much our services cost in terms of a commission. We don’t apologize for what we earn, and we bend over backwards to deliver killer customer service. I believe our clients appreciate our confidence and our candor.”
Sample actual luxury yacht charter competitors’ promises to you:
“Our advice is free…”
“…provide you with free advice…”
“…THAT GIVES YOU FREE INDEPENDENT CHARTER ADVICE”
The bottom line. Don’t fall for flashy marketing terms and buzzwords. Nothing is for free, and you, the buyer, are paying the cost of the charter reservation services rendered to you.
Many brokers are employees of large yacht management companies. These companies, sometimes called “Central Agents,” handle crew placement, yacht sales, and charter management.
Sheeder explains how this multi-service model can lead to bias on the part of a retail broker: “A retail broker who is employed by a central agency is in a position to present a potential charterer with yachts that are managed in-house. Not only is a commission generated when an in-house managed yacht is booked for a charter, but an additional ‘management’ fee is earned by the central agency.”
In other words, a central agency makes more money when their own retail brokers book yachts in their own fleet. Those yachts are not necessarily the best choice for your customized charter.
The bottom line – To minimize bias, Sheeder recommends retaining an independent retail yacht charter broker. Similar to hiring an independent insurance agent who represents multiple product lines, an independent charter broker is more likely to present prospective clients with yacht selections from a multitude of Central Agency fleets.
Thinking about a private charter vacation? Speak to the industry team with more than 30 years’ experience. Call 1-800 Yacht Charters today at 1-800-922-4824 or 305-253-7245, or fill out our convenient online contact form at https://www.1800yachtcharters.com/book-now-contact-us/
This entry was posted in Yacht Charter News Frequently Asked Questions Educational and tagged bareboat vs. crewed yacht, Superyacht, rack rates, Ask The Pro's, pricing options, retail yacht charter broker, myth busting, yacht charter costs, preferred pricing, yacht charter commission, why use a yacht charter broker, what myths exist about yacht charters?, Education, are yacht charter brokers important?, Trivia
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Updated: November 18, 2019. Questions arose after the release of this blog post.
First, someone asked if children are considered *passengers.”
Answer: Yes, they are considered passengers. Many charteryachts will create special pricing for babies and toddlers. We will work with the owner, management company, or agent to get the best possible rate for you. Remember, babies and toddlers are legally considered members of the passenger manifest. They DO count toward your guest count.
Second, someone asked if the crew members are part of the “12 guest count.”
Answer: Not usually. Yes, there are some yachts whose crewmembers are a part of the guest count (for example, a captain). For the most part, however, the crew number does NOT factor into the guest count.
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On August 19, US Coast Guard officers in Miami board 147 foot M/Y Golden Touch II. They terminat the luxury yacht day charter for multiple safety violations. The owner and captain of the yacht face civil penalties. The penalities are up to $41,456 for the violations.
Upon boarding, the officers count 47 passengers. They cite the captain for carrying more paying passengers than the vessel is certified to have onboard, which is 12. Other violations includ the lack of a valid certificate of inspection. Others include failure to have a drug and alcohol program for the crew, as well as the lack of a valid stability letter.
“Tragically, people have lost their lives on illegal charters, as was seen in the case of the vessel Jaguar in the Tampa Bay area and in the case of the Miami Vice yacht in Miami,” said USCG Capt. Ladonn Allen, of the 7th District prevention department. “The unsafe atmospheres that these types of companies and unlicensed captains, who knowingly engage in illegal activity, create on their boats show a complete disregard for passenger safety and have been responsible for multiple deaths in Florida alone. We cannot stress enough to anyone looking to charter a boat to verify the captain’s license and safety of the vessel.”
164ft Yacht Amarula Sun – Loaded with Watertoys for Active Travelers
So how many passengers can a yacht legally carry? The answer can vary and depends upon many variables. For example, the type of certification the yacht holds and the type of license the captain possesses.
As a general rule, most yachts for hire are restricted to 12 passengers, and require special certification to transport more than 12 guests.
First, make sure the boat you hire is operating legally. Retain the services of a professional yacht charter broker. A charter professional is numerous things. For instance, someone who knows the rules, has experience, and can determine which yacht and crew is right for you.
We realize it can be tempting to “go direct” and cut out the charter broker. The broker is essentially a middle-man/woman. He/she works for you and earns a commission for arranging your yacht charter, like Hertz or Avis, in renting a car.
The possible savings of going direct are not what you might expect. Many yacht owners set a rate that does not change. The rate is firm, even if a yacht charter broker is involved. Most yacht charters pay commissions to the brokers from the rate paid on the boat. The charter fee is NOT “marked up” by ethical and reputable brokers, unlike going direct. Our company also rewards referrals for yacht charters presented to us.
In conclusion, protect yourself and go with professionals who know and obey the rules of chartering. Your safety, satisfaction, and memorable experience are of utmost importance to us. To book your private luxury yacht charter vacation now, contact us today via whatsApp or text to 305-720-7245.
This entry was posted in Yacht Charter News Frequently Asked Questions Educational and tagged safety violations, US Coast Guard, overcrowded charter boat, why use a yacht charter broker, yacht charter miami, Miami yacht charter, illegal yacht charter, motoryacht Golden Touch II
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