In the last 14 years at Rodriquez Consulting we have served a variety of yacht charter companies and private owners who were keen on chartering their yachts. More often than we would expect we get asked the usual questions: Is yacht charter profitable and/or is it a good business to get in? or Can investing in yacht charter be profitable?
In many industries the above questions would be rather simple questions to answer. However, in the yachting industry answering these questions with anything else other than “It depends..” requires us to get into more details. At the very least, we need to get into the specifics of the size segment you choose, primary geographic area and the yacht charter business model that you intend to implement.
To most people Yacht Charter rates seem to be very high as an absolute per-week-value, but are they high enough when you consider the cost of the asset/s (the yacht/s) and its running costs? The latter can have a very large range as variable costs depending on how and where the vessel is managed and can make a significant difference. Ultimately, it the acquisition price (the price of the vessel) that is crucial but the variable and fix costs are the ones that can determine whether the operation (your yacht charter business) is profitable or not. If you are looking to build a business plan to charter yachts and get in the business this article will be useful, however, you might want to contact us for more ad-hoc support. Read more