2010 Editorial

Down, But Not Out

Dec 1st

Posted by Charter Index in 2010 Editorial

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The final numbers for 2009 show quite clearly that charter business is off. There are, however, a few bright spots in the economic clouds. Charter Index Editor Kim Kavin breaks down the data from the newly released Camper and Nicholsons International Superyachting Index, including future industry projections.

Camper and Nicholsons International recently released the third edition of its annual Superyachting Index, the world’s most comprehensive collection of data about the new construction, brokerage sales, and yacht charter industries for boats larger than 80 feet.

The current edition covers the calendar year 2009, the first full year of the global economic recession. Not surprisingly, the new Superyachting Index is filled with downward trends—for the first time putting hard numbers to the dock chatter among brokers, central agents, and captains.

If you’re a retail broker and your 2009 business was off by 30 percent, then you’re about average. If you’re the captain of an 80- to 100-foot yacht and had to drop your weekly rate by 15 percent to secure bookings, then you’re in line with your competitors. If you’re a central agent whose Florida and Bahamas inquiries seem non-existent, then you are not alone.

Following are the key charter industry trends that the 48-page Superyachting More >

How Low Will Discounts Go?

Dec 1st

Posted by Charter Index in 2010 Editorial

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Summer 2010 discounts were as much as 40 percent for one-week charters and more than 50-percent for multi-week charters. Discounts are creeping into the winter 2010 markets right now. Charter Index Editor Kim Kavin asks whether price negotiations have an end in sight, and what the current trends mean for the industry’s future.

“Discount” was a four-letter word in the charter industry until 2009, when the boot heel of the global recession all but strangled the yachting business. By summer 2010, discounts were being advertised instead of whispered—and in some cases, deepening at an unprecedented rate.

Motoryachts and sailing yachts alike, even in prime Western Mediterranean locations, blew right past 10- or 15-percent discounts to offer head-turning incentives.

Free champagne welcome brunches and free picnics ashore are another added-value incentive that some charter yachts are now beginning to offer.

Examples included the 141-foot Holland Jachtbouw This is Us, which dropped its rate by 25 percent and eliminated delivery fees during the month of August. The 144-foot Feadship Kingfisher offered the equivalent of a 30-percent discount during high season, changing its seven-day base rate of $180,000 to an eight-day base rate of $145,000. The 192-foot Lürssen Capri offered an almost 50-percent price break in July, More >

10 Things You Can Learn From Google Analytics

Dec 1st

Posted by Charter Index in 2010 Editorial

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Google Analytics is a free service provided by the search-engine giant. Once installed on your website, Google Analytics lets you track an incredible amount of information—and then use it to tailor your website and achieve your marketing goals.

Here are 10 key data sets that you can track with Google Analytics:

1. Unique Visitors. This is different from “hits,” which can include software programs in addition to real people. As soon as software programs start booking charters, you can care more about their visits. For now, focus on unique visitors—the number of human beings who visit your website.

2. Time on Site. It doesn’t matter how many people visit if they all leave inside of five seconds. You want visitors to stay at least a minute or two, which indicates that they’re actually reading your content. Don’t smirk at times of two to four minutes, either. The mega-site Facebook has an average time of seven hours per month, which is only about 14 minutes per day.

3. Bounce Rate. This is the number of people who land on your website and then, without clicking any of your internal links, bounce away to another website. If your site is e-commerce based—say, you want somebody to More >

What is an appropriate gratuity for a yacht charter vacation?

Dec 1st

Posted by Charter Index in 2010 Editorial

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Retail Broker: Robin O’Brien,

Fraser Yachts Worldwide

I worked as crew in the Mediterranean and Caribbean for 10 years and feel the same way about gratuities now as I did then: They are a gift. They’re not guaranteed.

I address the issue four times once a charter is booked: The client receives an etiquette sheet, which explains that a typical gratuity is 10- to 20 percent, scalable depending on service; I put verbiage regarding the gratuity in the charter agreement; I review it verbally before embarkation; and, finally, I offer to escrow the gratuity.

Gratuities can cause bad feelings from several perspectives. A client once said, “Do you mean to tell me that my expenses are going to increase by as much as

20 percent because I have to tip the crew? Where is the owner? This is absurd.” Conversely, a captain once said, “I want a guaranteed tip in the agreement.” He believed I was earning a 15-percent commission, and he wanted one, too. I explained that I only earn a portion of that percentage, and that since I do not earn a salary, it isn’t a tip. It is my pay.

Reputable charter brokers do their best to educate the client and encourage More >