Charter Management
The purchase of a catamaran for charter purposes can offer investors a range of highly appealing advantages. These may include strong return on investment potential, protection against inflation, a shift towards tangible assets, reduction of fixed costs, structured maintenance, and professional management of the vessel. Additionally, it offers the opportunity to prepare the yacht for personal use, making it a floating holiday home for the owner’s private enjoyment.
The charter market for catamarans in the Mediterranean is currently experiencing an impressive boom, with a clear upward trend. Many established charter companies are replacing a significant portion of their monohulls with catamarans, as these are in much higher demand among charter clients. Anyone who has spent their holiday aboard a BALI catamaran knows why. The living space of a catamaran is akin to that of an apartment, with spacious areas and multiple levels that allow for privacy and comfort, especially with larger groups onboard.
When examining the total volume of charter yachts on offer, the need for “replacement” becomes evident. Charter companies in this sector vary significantly in their structure. Many do not own their yachts, but instead manage them on behalf of owners or investors, providing comprehensive services such as marketing, booking, mooring, handover, retrieval, and full technical maintenance. In return, the charter company receives a percentage of the charter income. The owner is free from worry, simply receiving an end-of-season settlement. Such contracts usually have a duration of five years.
In the Mediterranean, there are three to four major players and several smaller providers, each with a distinct business model. However, what all charter companies share is the need for a constant supply of yachts to run their operations.
The large companies follow a standardised approach:
Alongside aggressive marketing, they offer existing charter clients the chance to invest in a catamaran through a purchase-charter model, often supported by questionable financing schemes. The focus here is on catamarans with as many cabins as possible, to keep per-person charter costs low. However, the high occupancy rates inevitably lead to faster wear and tear. For these large companies, a new yacht is just another tool in the toolbox – necessary, but not necessarily treated with care. This neglect is often due to the sheer volume of boats they manage, a lack of qualified service personnel during the high season, and the short turnaround times between guest handovers. The result? After five years, the owner often receives a yacht that resembles a worn-out taxi. Maintenance, both technical and cosmetic, is frequently postponed due to the high cost or time involved. The owner’s dream of receiving a pristine yacht after five years is seldom realised.
But it doesn’t have to be this way.
Smaller charter companies, often family-owned, face greater challenges in finding new investors for fleet expansion, but offer a much more personal touch. They take pride in every new yacht added to their fleet and treat it as if it were their own. Even owner versions of BALI catamarans are welcomed. The relationship with the owner is much more flexible, offering generous personal use of the yacht if desired. The owner can count on excellent care for their asset and, after the partnership concludes, is left with a well-maintained and valuable yacht.
Westside Sailing can recommend several charter companies at different locations that meet our rigorous selection criteria and have an excellent reputation. The fiscal aspects differ from country to country, and we ensure that investors do not have to pay VAT (or can reclaim the VAT) and that their company is properly recognized. While this can be a challenge in many EU countries, we guide you through this complexity. If we hear from you later, “Thank you for the tip,” we will be absolutely thrilled!