Booking Process
If you do not have much experience in chartering yachts, you may be confused by the amount of websites and brokers that seem to offer and "own" the same boats. Let me try and explain to you how the process works. Sorry, but this is the condensed version!
Think of charter yacht brokers as travel agents specializing in yacht vacations. Most charter brokers do not "own" any yachts. We are an exception, and we will tell you straight up that we do own a charter yacht, but we ONLY recommend it if we think it is right for you.
Lets start with the yachts. Most yachts are independently owned. There are some, that are part of a fleet, ie Voyager, but mainly an owner decides that he wants to offer his yacht for charter. He then has many steps to get it ready. He (or she as the case may be!) has to decide what market he is going into, whether he will run it himself (owner operators) or hire a crew. He makes it "charter ready" and produces the material so charter yacht brokers have the information to sell it. He ensures that the boat and the crew have all the correct operating licenses for the area they want to charter in. He chooses a clearinghouse. A clearinghouse is different then a broker, each boat will have one and a clearinghouses role, is to be a "go between" in effect between the boat and the broker. Many years ago boats did not have communication technology while they were out sailing the seas, so the clearinghouse would keep all the details of each boat they represented and answer questions on it. The clearinghouses still have a large role to play, as they keep the yachts calendars. That way everyone is able to find out when a yacht is available or not. The clearinghouses also arrange to collect the money for the charter, and keep it in escrow until it is time to release it to the yacht. Although there are many charter brokers, there are only a few clearinghouses, and they generally are in the background.
Nowadays, if you go on many charter yacht brokers sites, you will see plug in search engines that let you search and know whether a yacht is available or not. These are another level of information besides the clearinghouse. Boats, Yacht Brokers and Clearinghouses subscribe to these services so they can get up to date information and brochures out to as many people as possible. These plug in search engines ARE becoming the back end booking system in many cases.
Yachts arrange to show themselves in Boat Shows that are specifically for yacht charter brokers a couple times a year.Good brokers keep up to date on the shows and attend them so they know which boats have which crews and what is the up to date scoop on the yacht. November is the time for them in the British and US Virgin Islands, and May as well for the British Virgin Islands. St Maarten and Antigua attract the larger mega yachts, and have their shows in December. The boat shows are put on by various entities, some of which are "membership" groups of yachts. Oh dear, ANOTHER level in the boat chartering business! Two of the best known in the Virign Islands are the BVI Charter Yacht Society, which you can find out much more about how and why they operate by going to their website at BVI Charter Yacht Society and also the Virgin Islands Charter League at VICL. Their websites are another great source of information.
Ok, loosely this brings you to your part. You arrive at a site such as this. Each broker has their own set of boats that they "prefer" booking. This is for as different of reasons as there are brokers! Some are totally professional and truly try to find out what you are looking for and match you up with the perfect boat. Others may sell any yacht to anybody who has the ability to sign a check. Some get a bit more commission from some yachts, so they will push those. Others have had such success in past charters with some boats that they prefer booking them. Yachts that generally just come into the market are an "unknown" quantity, so they will often offer specials or price themselves lower then comparable yachts to get bookings in the hopes that they will have some great reference letters to entice other brokers to book them.
Brokers will not be in business long nor will boats if they are not very good. Trust your instincts. As I said before, all brokers can sell all yachts, so emailing a hundred brokers to try and get the best price is not a good strategy. The industry is set up so a broker, any broker, receives a set commission from the yacht when they send a charter their way. Generally, if one broker is talking down another broker, that is a bad sign.
It is important to note that the commission is paid by the yacht to the broker, NOT by the person booking the charter! It costs you no more to go through a broker. Boats who offer a lower price then they would offer a broker for a charter by going direct, quickly would be blackballed in the industry. Sometimes the boat will give more of a discount on a week they want to sell, or for repeat clients. Same with a broker. They may offer a bit of their commission back to repeat clients or add in extras that the yacht does not cover.
The commission rate is fairly standard throughout the industry. The yacht pays 15% to the broker, or 20% if the broker is working with a travel agent, which is common as well. You may have a travel agent at home that you book all your vacations through. Some yachts pay a 20% commission as a matter of course.
Some yachts also book direct, although they should not sell it for less then what they do to a broker, you will often find that owner operator's sell direct and through brokers, which is understandable, as everyone wants to make sure that their business thrives!
So, working with your broker, you will be recommended several yachts that fit your idea of a perfect yacht charter. The charter broker will check on availibility and let you know that, as well as the price, any specials and other tips on the perfect vacation. You find the perfect yacht and say "yes!" The broker puts a "hold" on the yacht with the clearinghouse that represents it. A "hold" lasts two weeks, and gives the broker and you, the chance to do the contracts, look into air fare, and make the deposit. No one else can hold the yacht while you are holding it, EXCEPT if someone else has guests for the dates you hold, and they are ready with "cash in hand" then you can be "challenged" on the dates. Being challenged generally means that you have 48 hours to deposit the dates you are holding or "lose" the dates.
That does not happen in your case, you sign the contracts and make the deposit. The broker puts the money into escrow, either with the clearinghouse or the yacht brokers trust fund. The boat gets notice from their clearinghouse that they are booked for which dates and the financial arrangements. If you are more then 6 months out from your charter date, you pay a 25% deposit, and then a further 25% 6 months out. The remaining 50% is due generally 2 months out, but different boats have different arrangements on how and when they want the final payment. Some take it on board in cash or travelers checks, some only want it in advance. Your broker knows all that. 10 days out from the charter 35% of the charter fee is released to the boat, this allows them to provision for your charter. The balance is paid out to the yacht on the day your charter goes out.
Your broker will work with you to make sure the boat gets the correct preference sheets, and YOU get exactly what you have paid for. In most cases, the yacht will call you in advance to go over your preferences with you.
What happens if you have to cancel?? Well, the broker will immediately call the clearinghouse and "open up the dates". If the boat is rebooked for the same period, at the same rate, then you receive a refund, less the brokers commission. If only a few days of it are rebooked, then the refund is prorated. In some cases, a boat will be happy to move the dates around for you with no penalty at all. Each case is different. Travel insurance is ALWAYS a good idea!
Now, if you have read this far I am truly impressed! In short, a charter yacht broker will have the knowledge to
-Help you choose the right yacht
-Take care of all the financial arrangements, making sure your money is secure
-Help with traveling arrangements
-Give you an "insiders" view of the yacht and area
-Make sure the charter goes off smoothly, and if there are any difficulties, be a mediator if required
We look forward to helping you book your charter yacht vacation! I believe that you have the right to know exactly how the process works and will gladly answer any questions you have!
