Daniel Küpfer, founder and managing director of management service provider Yanova

Over the past 25 years, the yachting sector has changed significantly. Yachts frequenting the most beautiful cruising grounds in the world have gained remarkably in size, range, seagoing capacity and comfort. With this evolution, awareness around yachting has shifted and regulation has increased across nearly all areas of the industry.

In yacht management and owner representation, whether it concerns a new build, a substantial refit or ongoing operational support, the core disciplines remain the same. Yet the depth, complexity and regulatory environment surrounding every aspect of yachting have grown considerably.

When asked how the industry has evolved since I joined, I often reflect on my early days as a mate aboard a 40-metre motoryacht in the early 1990s. At the time, this was considered a very large yacht. Thanks to MYBA, we operated under a solid charter agreement, while the yacht was registered privately, no safe manning regulations applied, the captain was accredited by the insurer, and no one asked about VAT on charter fees – a scenario completely unthinkable today.

What has emerged over the decades is a far more competent and professional landscape. Shipyards, brokers, charter managers, corporate service providers, yacht managers, suppliers and, last but not least, on-board personnel have all had to raise their standards.

Yet alongside this professionalisation, the industry has also become a labyrinth for owners to navigate. Multiple stakeholders engage with the owner, each from their own perspective. The owner’s perception of the industry is often shaped by the position of their advisors.

With increased complexity, a fragmentation of services has taken place, with individual providers and services selected on a case-by-case basis, more often to fill immediate gaps and often under very strict budget considerations, rather than to pursue a coherent and long-term strategy that serves the owner’s best interests.

At the same time, there is often overlap in services. As an example, yacht management should never be in competition with the captain. Both are distinct roles. In commercial shipping, the boundaries are thankfully clear. This should serve as a reference, whereby in yachting, captains require a high level of autonomy to manage the vessel and crew to the standards expected today.

What is clear is that today’s complexity requires a more integrated and thoughtful approach
to yacht management and owners’ representation. Fragmentation of services and concerns
over potential conflicts of interest lead owners, especially those of very large yachts, to rely
more on trusted individuals.

Guest demands have increased dramatically over the decades, while owners often take a much more tolerant stance. With many guests, especially under charter, everything is expected to be available instantly, like fresh AI-generated content on social media. Crew expectations have also changed. This is often criticised but running a vessel as if it were still 2000 is not a realistic option. Understanding the perspectives of younger generations and adapting to new realities is essential for the leadership team on board and ashore to deliver the service of the entire team successfully.

Environmental and governance factors have entered the yachting landscape. Ownership is increasingly scrutinised. The wealth that has made these yachts possible is now more visible than ever, and with that visibility comes pressure. While protection of private data is taken more seriously, the accumulation of private wealth seems to become, all too often, a justification in our society to exclude individuals from the same privacy rights afforded to others.

The above is only a snapshot. There is, of course, much more to be said about the evolution of the yachting industry.

What is clear is that today’s complexity requires a more integrated and thoughtful approach to yacht management and owners’ representation. Fragmentation of services and concerns over potential conflicts of interest lead owners, especially those of very large yachts, to rely more on trusted individuals working closely with their offices than on full-circle management structures provided by established organisations. However, neither captains nor individual owner representatives can be experts in every field.

The role of trusted individuals remains essential in the yachting sector. Owners should choose their representatives in an informed manner and provide the necessary support to protect their loyalty. Competency and reliability should be chosen over sales talk. At the same time, the trusted individuals must be well supported by the service sector of the industry in order to ensure success in their role, which is both highly specialised and deeply personal.

On-board decision-makers deserve greater recognition and autonomy. At the same time, those ashore must remain alert to what lies ahead. Constantly developing environmental standards, competent media response and efficient crisis management will become increasingly relevant in the future.

Owners and their offices must be in a position to place trust where it is truly deserved. The maritime industry is too complex for expert guidance to be left aside. At the same time, those ashore must remain alert to what lies ahead, including environmental expectations, media awareness and crisis response.

The ultimate goal for the yachting sector must be to ensure that yachting remains a source of joy for owners, charterers and guests, supported by a well-functioning service sector that is prepared for both the challenges and opportunities of the future. 

This article first appeared in The Superyacht Report – Owners Focus. With our open-source policy, it is available to all by following this link, so read and download the latest issue and any of our previous issues in our library.

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