DJ Parker, president of Neptune Group Yachting, was recently elected president of the American Yacht Charter Association. I caught up with her to chat about AYCA’s mission, the current state of the luxury charter market, and more.

AYCA is one of the most prominent professional organizations for charter brokers in the world. What exactly does it do, and what makes it different from other groups?

The AYCA is an international body of charter experts who are recognized worldwide for their integrity, expertise, and professionalism. The AYCA’s objectives are to communicate, standardize terms of business, and maintain the highest standards of excellence. You must have years of experience to apply for membership. To be a voting member, you must have at least seven years of experience as a charter broker or manager. This makes us different from other organizations, the high standard of excellence to which we hold all of our members.

What do you see as AYCA’s priorities in the coming year?

I think the whole industry needs to work hard at staying informed. The charter industry is a global industry, and the world is becoming more complex. We have pulsating economies that can affect our business abruptly. Countries are changing laws, inserting new tax requirements, restricting cruising areas, and more. These sudden changes are not only a danger to the industry, but also can become a challenge for our clients. Information and knowledge are absolutely paramount, more than ever.

Can you give me an example of the types of changes you’re seeing?

We just heard out of Italy that they want to impose a berthing tax, but they aren’t sure yet how it’s going to be collected. The idea is that wherever a yacht pulls in, that tax is added. These are the kinds of laws that are going to be popping up as politicians try to deal with economic crises. There are going to be calls to tax the rich, and that means ideas like these about berthing taxes.

When these kinds of new laws are put into place, it immediately affects our clients. We need to make sure our industry is aware and prepared. AYCA can be instrumental in that. I want to make sure all brokers have this information so that we can use it effectively.

How do you see the world’s economic situation affecting the charter market right now?

I look at statistics daily, weekly, monthly, and annually. What I see in looking at my own company—and I’m hearing the same thing from my colleagues—is that we’ve turned the corner in terms of clients who live in the United States. Inquiries from those clients went down two years ago. Last year was pretty good again, and this year seems to have more promise than last year.

Now, in Europe, the story is different. I just read recently that they think the Eurozone is going into a recession. For the charter industry, that means we may be in for a bumpy ride because a lot of clients live in Europe. On the other hand, if that economy changes, it could affect the rates of yachts in the Mediterranean. Prices could again go down. We’re going to have to be ready for anything.

Overall for 2012, I’m projecting a flip side of what we saw in 2008 and 2009. In those years, the Europeans were still booking but the Americans weren’t. What seems to be coming is the opposite.

Are you seeing different levels of recovery in different segments of the yacht charter industry?

Yes. The very, very rich, they charter. They haven’t missed a beat throughout the entire recession. There are more large megayachts for charter now than I’ve ever seen.

In the middle size range, say about 110 feet to 175 feet, I see those yachts still struggling a bit. The bookings aren’t coming the way they are in the top size range. That indicates there are still economic challenges at play for the clients who typically charter in that range.

The smaller yachts, say less than about 110 feet down to 50 feet, we are now seeing a trend of three- to five-day charters. It used to always be a week. Today, shorter charters on smaller boats are becoming the rule. I think it’s because everybody needs a vacation, and this is what we’re able to make fit economically for some of the clients who book those smaller yachts.

What do you think charter brokers and yacht owners need to do in the next year to help clients feel like they are getting the best yachts at the best rates, to encourage bookings in all size ranges?

All of the recent economic changes have affected the way we brokers do our jobs. We have all had to learn the art of the deal. Owners, for the most part, have all joined the negotiation bandwagon. That is the industry as it exists today.

The truth is that in this economic era, there are no rules. The base rates that are now being advertised are really a hypothetical figure. If you’re in any business, you need to adjust up and down on a regular basis. In the business of yacht charter, you want to welcome inquiries—even if they’re ridiculous and at the last minute—and consider whether it might be worth negotiating a deal that makes sense.

Is there anything else that you believe charter brokers, yacht managers, and yacht owners need to do in order to continue weathering the economic storm?

In my opinion, everybody needs to stay focused, sell, and hold on to their integrity. In the economic climate we’re in, it can be easier to compromise your integrity. Let’s not do that. It’s not good for our industry.

DJ Parker is the newly elected president of the American Yacht Charter Association and the president of Neptune Group Yachting in Florida. You can contact her directly through the Neptune Group Yachting website.

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