Is charter the effective route to ownership that many claim it to be and are there enough business models in place to account for various ownership styles? In issue 175 of The Superyacht Report we look at the current charter and private ownership models and explore some of the schemes that attempt to bridge the gap between the two, as well as remedy some of their weaknesses.
The charter model has “a problem of industrialisation,” explains Adrian Zecha, founder and former owner of Aman Resorts and co-founder of the Maha Yacht Club (MYC). “The management and maintenance of the hardware is not the problem in the superyacht industry, it is the software.”
MYC hope’s to provide an alternative to both the charter and private ownership models by creating a service business that guarantees the qualitative consistency that has otherwise been lacking. “As well as creating a platform for those who are frustrated with the charter market, we are looking to remove the cost of ownership and take the headache away,” continues Stephen White, CEO of MYC.
The headaches White mentions are loosely covered in four categories: cost, lack of use and time, stress and a saturated resale market. While this may not be the case for all owners, for many it can be enough to put them off the superyacht market. As such we will be exploring the merits of fractional ownership and highlighting that the superyacht market need not be a one size fits all industry.
“The idea of simply burning money makes no sense to me,” explains Matty Zadnikar, managing director of SeaNet Europe. Zadnikar, whose decision to invest in a fractional ownership business was born of the frustrations he developed as a superyacht owner, has now made it his task to create a system that works for owners experiencing the above frustrations.
This article will be published in full in issue 175, the first edition of The ‘new’ Superyacht Report, published in January 2017. The magazine is available free for VIP subscribers. To apply please click here.