Charters question

[Retired1]

The only way to make money in the Charter Business is to be a Charter Broker (15% commissions) and know (and kick back of course) the Concierge’s in very high end hotels.

[BJones]

Thanks guys, I guess I just needed another reality check LOL. It happens every time I hear "there is a deal on this yacht....." I appreciate the honest feedback. On another note: Do you think these "below deck" yachts make money? I keep hearing about something like 165k for a week on one of these WTH

The big yachts that draw 6 figure per week charter fees mostly have high 7 figure to 8 figure annual operating costs...

[Pascal]

The costs are indeed very high… for example on an average 100-125 footer you re looking at …

$250-300k crew
$70-80k insurance
$200-300k maintenance
$75-90k dockage (home)
$200-300k depreciation

Assuming the boat is bought used, figure $5M… that’s 300/500k in interest and/or lost of investment income. Triple that if new

This doesn’t even take into account dockage away from home. For instance, most boats that charter in the Bahamas will pay transient dockage in Nassau when between charters…. That’s $1000 a day with power. Yes, we pay about $400-500 a day for shorepower in the Bahamas with the 116…

Same when chartering in New England where dockage is even more expensive although power probably less so

So, for a 110-125 footer, a mid size for in the charter fleet, you re looking at about $1.5M a year in costs. Not including a major refit every 10 years…. That size boat averages $80/90k a week meaning you need close to 20 weeks a year to break even…

Without surprises… many if not the majority of boats in that size range have MTUs 16V2000… they ll go 4000 hours between rebuilt which will run between $250k and $350k depending. Each.

[riverrandy]

Like others have said here making money with a "Six Pack" boat is really hard. Like any business it depends on income and expenses. If you own a boat and a dock outright, you are a mechanic and captain, and work a LOT, I am sure you can do okay, and probably offset the costs, but MAKE money I don't think so.

[Bob Quinn]

The costs are indeed very high… for example on an average 100-125 footer you re looking at …

$250-300k crew
$70-80k insurance
$200-300k maintenance
$75-90k dockage (home)
$200-300k depreciation

Assuming the boat is bought used, figure $5M… that’s 300/500k in interest and/or lost of investment income. Triple that if new

This doesn’t even take into account dockage away from home. For instance, most boats that charter in the Bahamas will pay transient dockage in Nassau when between charters…. That’s $1000 a day with power. Yes, we pay about $400-500 a day for shorepower in the Bahamas with the 116…

Same when chartering in New England where dockage is even more expensive although power probably less so

So, for a 110-125 footer, a mid size for in the charter fleet, you re looking at about $1.5M a year in costs. Not including a major refit every 10 years…. That size boat averages $80/90k a week meaning you need close to 20 weeks a year to break even…

Without surprises… many if not the majority of boats in that size range have MTUs 16V2000… they ll go 4000 hours between rebuilt which will run between $250k and $350k depending. Each.

Those are crazy numbers! I can't imagine.

[Bob Quinn]

The only way to make money in the Charter Business is to be a Charter Broker (15% commissions) and know (and kick back of course) the Concierge’s in very high end hotels.

That makes sense. This is the only person in the food chain with no risk. Sales always seems to be the best way to make money.