YACHT RENTAL AS A BUSINESS
In recent years, the idea to step into the yachting business has come to many entrepreneurs. We do not mean only those who are fond of yachting themselves, but also those who want to invest their capital profitably. The main motives for engaging in such activities are based on steadily increased interest in private boat trips, high rental costs, a large choice of vessels of various sizes, capacities, equipment, the opportunity to combine personal leisure and business and sufficiently developed infrastructure. And, thank God, it happens not only in Europe anymore.
Of course, we must not forget about the problems that we will have to deal with when starting a business - the settlement of formalities, significant operating costs, difficulties in finding clients, normal wear and tear of equipment, and significant competition. The information below about the specifics of the yachting business will help you understand whether this option is suitable for you and how to organize everything correctly.
The demand for yacht rental services is steadily high. The most popular are small sailing vessels with a length of 10-12 meters. They are large enough for a comfortable stay, or to shelter a group of friends, and are not as expensive as luxury liners of 30 meters or more, filmed by politicians, show business stars, etc. Such water transport is also suitable for corporate events, regattas, as well as travel, passes for 1-2 days and for a month. According to statistics, more than half of the proposals in the Mediterranean (70% of 14 thousand) are private, and the residents of the Russian Federation are among the leaders in terms of spending on such vacations.
Forbes magazine claims that in the first five years from the start of the operation, it makes a profit of up to 15% of the initial price, and then the income decreases. Consequently, 4-5 years after starting a company, it makes sense to invest in repairs and sell the cruiser (maximum 70% of the purchase price will be obtained).
Having decided to do such a business, first of all, you need to purchase a yacht. Sailboats for six to eight people are the best choice both in terms of financial costs and in terms of rental demand. Their price ranges from $ 150,000 to $ 200,000. Used yachts for business are not the best choice (unless you already own such a vessel) as they require more money for maintenance. To save money, it makes sense to make a purchase through a charter company - as a rule, you can get a discount from the manufacturer up to 50-70%.
There are schemes for the so-called joint purchase, they also offer to immediately draw up a lease agreement. In this case, you do not have to think about maintenance, insurance, and parking, but your income will be reduced by about a half. It is important also to choose a trusted partner - for the Mediterranean, companies such as a Sailing Race Service, Navigare Yachting, Nomicos, Alboran Charter, etc. will be a suitable option. Of course, no one forbids everyone to do it on their own - there will be more problems, but the profit will not have to be shared.