The Benefits of Owning a Charter Yacht
Spending time on board with friends and family, traveling the world, discovering new destinations and enjoying six-star service are just some of the joys that yacht ownership can bring. Of course, owners wish to maximize their time on board, however, there are often weeks or months in the year when it may not be possible to enjoy the yacht themselves.
For those who wish to keep the yacht (and its crew) active, as well as offset some of the operational costs, chartering out the vessel is an excellent option.
Investing in Charter Yachts Amidst Rising Global Demand
There is significant potential for owners when investing in a charter vessel, as the global market continues to grow each year. There are currently 1,800 yachts above 20m available offered for charter around the world and the demand for private yacht vacations continues to grow.
Charters are attractive to individuals seeking an up-scale relaxing escape, an adventure-filled trip, or quality time with loved ones, all in the most stunning environment.
From Mediterranean Summers to Caribbean Winters and Beyond
Yachts can travel across the globe, with the Mediterranean being a favored destination in the summer and the Bahamas and Caribbean popular in the winter. These regions are filled with diverse locations to explore, and IYC offers bespoke itineraries for yachts of all sizes. Traditional yachting hubs such as France and Greece remain popular for their culture, warm climate, and stunning sailing conditions.
Additionally, there's a growing interest in off-the-beaten-path destinations like Southeast Asia, the Islands of Tahiti, and Fiji, which appeal to adventure-seekers and diving enthusiasts, making them attractive options for yacht base locations.
Income, Tax Benefits, and Operational Cost Offsets Through Charters
One of the main reasons that owners offer their yacht for charter is to generate income that will offset a portion of the operational costs of the vessel. A busy charter yacht can generate up to 12+ weeks of charter a year, creating a nice return for the owner.
Additionally, while on the charter, the client will cover numerous expenses including fuel, dockage, food, and other incidentals during the length of their stay. For US residents, there are also several tax incentives and deductions available for owners who charter out their yachts, as you can classify the vessel as a business asset or as a second home.
The Mutual Benefits of a Busy Charter Schedule for Owners and Crew
A busy charter vessel can be beneficial for both the owner and the crew. If there are long stretches between owner holidays, the full-time crew can be ‘underutilized’. The idea of an active yacht – complete with additional remuneration for the crew – encourages those on board to maintain high standards and attracts the best caliber of the crew. In addition, the variety of charter guests and their individual expectations means that the service and experience of the crew will continue to improve with each itinerary.
When it comes to purchasing a yacht, it can be very helpful to look at the vessel’s existing reputation on the charter market. If a vessel has a proven record of success due to its crew, its design, or its location, it will be much more attractive to potential guests and a sound investment for the future. It is also vital that the yacht has the correct classifications for chartering, as there are different rules for private vessels. The IYC team can guide you through the various regulations and surveys that need to be considered to make sure your yacht is ready to host clients.
Experience Premium Charter Management with IYC
As a charter yacht within the global fleet of IYC vessels, you will experience the highest quality of charter management from our expert team. Your yacht will be positioned and marketed to acquire clients from across the globe, and benefit from our team’s years of expertise.
Your dedicated charter manager will handle all the paperwork and negotiations from start to finish for all charter clients ensuring a seamless process without stress or worry.
As one of the yachting market’s leading organizations, IYC manages the largest global fleet of charter vessels, and our team is equipped with the knowledge to serve our clients to the highest standards. To understand the plentiful opportunities charter ownership will bring you, contact our expert team today.
