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Kim's CharterWave Blog

Archive for July, 2008

When Should You Pay?

Monday, July 28th, 2008

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“Know the Cons of Chartering the Private Yacht.” This headline, from a blog called Life Info Zone, caught my attention this weekend for obvious reasons. When I read the post, I realized the author does not specialize in private yacht charter vacations–and that some of the key “tips” he or she posted are inaccurate.

The one I’m going to highlight here is the statement that when booking a charter, you must “… be careful with how you pay. Most established yacht chartering companies will request that you pay a deposit upfront, but you shouldn’t have to pay in full upfront.”

That’s just plain wrong. When you book a crewed yacht vacation, you will be asked to pay an APA, which stands for Advanced Provisioning Allowance. This is just what it sounds like: money given to the yacht to allow the crew to provision food, fuel, and anything else you request in advance of your charter. The full balance of the APA, in addition to any balance owed on the yacht’s base rate, are typically due one to three months before your charter’s start date.

There are two primary reasons for this pay-before-you-go arrangement. First is that the crew actually does need time and money to provision the yacht in advance of your vacation. If you’ve requested specific wines, for instance, they may need to have them flown in.

The second reason is that if the full charter rate has been paid into an escrow account, then the yacht’s owner has a strong incentive to do everything possible to keep the charter dates intact. He doesn’t actually get your money until the charter takes place, but your good faith payment serves as a deterrent against his, say, canceling your charter so that he can use his yacht himself.

The only money you would not pay in advance of your charter is the crew’s gratuity, which is left at your discretion upon completion of the charter. Having said that, some higher-end charter clients actually wire the crew gratuity into the escrow account before the vacation, and then release the money (or a portion of it) when their vacation ends. That way, they don’t have to carry a 10 percent to 20 percent cash gratuity for a charter exceeding $100,000.

Posts like the one on the Life Info Zone blog do a disservice to you as a charter client because they create expectations that simply will not be met by reputable charter yachts. Do yourself a favor and stick to yacht-specific websites such as CharterWave for your yacht charter information, and as always, work with a reputable charter broker to avoid any other misunderstandings when it comes to booking your vacation.

Broker Bonuses

Friday, July 25th, 2008

As the summer charter season begins to wind down, some yachts that still have availability are working overtime to get the attention of reputable charter brokers. I received two e-mails this week alone promoting “broker bonuses,” with one yacht owner in the Mediterranean promising 1,000 euro to any broker who books his motoryacht, and one sailing yacht owner in the Virgin Islands promising a 20-percent commission (versus the standard 15 percent) to any broker who books his yacht.

Now, there’s nothing inherently wrong with these kinds of broker bonuses. They’re an obvious marketing tactic that perfectly respectable charter yachts sometimes use to remind brokers that they’re available, and that they’d appreciate some additional business before the end of the season.

On the other hand, you as the charter client should be alert to such a back-end deal taking place. Your nightmare scenario is that a less-than-reputable broker recommends a yacht to you not because it’s the best for your vacation needs, but because the broker stands to pocket extra cash on the deal.

Some of these broker bonuses are paid straight to the broker, as a separate transaction from their commission, so there’s really no bulletproof way for you or even the broker’s own bosses to determine whether such a deal exists behind the scenes. Your only clue, most likely, would be your broker pushing hard for you to choose a yacht that just doesn’t feel right to you, or that you’ve said you don’t want. If that’s the case, then there’s no harm in asking your broker outright whether the yacht is offering a broker bonus, and if that’s why she’s pushing for the deal. If she says yes, then you might want to find yourself a better broker, one who puts your needs before her own.

Like I said, there’s nothing inherently wrong with these kinds of bonuses. They’re business 101, and they can be a win-win-win when an owner gives a little more, a broker is reminded about a good yacht, and that yacht is a great fit for you, the client.

Even still, your simply knowing that broker bonuses exist is a good way to protect yourself against less-than-reputable brokers who would use them to put their own financial gain ahead of your best possible charter yacht vacation.

Les Voiles de St. Tropez

Thursday, July 24th, 2008

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From September 27 until October 4, sailing enthusiasts and racers will gather along the French Riviera for the annual Les Voiles de St. Tropez, a regatta that typically includes the world’s most extraordinary new and classic sailing yachts.

The 60-foot sailing yacht Miti, shown in the photo above, doesn’t quite fit that bill, but she’s more than nice enough to serve as a floating grandstand for the event. According to management company Sunreef Yachts Charter, Miti is available for charter at the regatta, taking six guests at a weekly base rate of 10,000 euro.

What’s nice about Les Voiles de St. Tropez (which translates as the sails of St. Tropez) is not just the spectacle of all the fine sailing yachts, but also the time of year when it takes place. Early fall is stunning in the Western Mediterranean, typically with plenty of sunshine, water that’s still warm from the summer heat, and far fewer crowds than you’ll find during the prime charter months of July and August.

There’s also typically less demand for charter yachts during late autumn, which means you should have a good number to choose among. Contact any reputable charter broker to learn more about Miti and other charter yachts that are available for Les Voiles de St. Tropez.