Cooperation in the charter sector: how to know who you’re doing business with

• 10.04.2023.
• News, Management

What should every charterer know if they want to find a compatible booking agency? What should booking agencies look for when working with charterers? Find out what details you should pay attention to when you want to start a cooperation with someone.

Are you looking for a company with which you want to cooperate? You know that there are many essential things that you need to pay attention to and take into account. Surely you want to do business with a company that has an as good reputation among colleagues and employees as you do.  
  
What should you actually do if you want to thoroughly research a company for future collaboration, and what details should you pay attention to? First, you need to explore the company's online presence, website, and reviews. If possible, ask for recommendations, and talk to current and even former employees to get an idea of the company's structure, operation and working environment.  
  
It is critical to consider the company's expertise, experience, as well as its track record. Communication is also one of the factors you need to consider, as it should be effective on both sides, and mutual goals should be clearly understood.  
  
Finally, you should check that the company complies with all relevant laws and regulations and has all the necessary licenses and permits to operate. By thoroughly researching and vetting potential partners and employees, you can avoid unpleasant situations and problems. In addition, it's important to know if the company is financially stable and has a solid business plan.  

How to determine if the company you want to collaborate with is compatible

To find all the relevant information, you must invest your will and time. In the long run, any research will be worth it because it will be easier to know who you are dealing with.  
Of course, there are methods you can use to determine in advance if you are compatible with the company you plan to work with:  
  
Research: research the reputation of the company you want to work with, the online reviews of its clients and customers and its online presence. Seek feedback from other companies it has worked with to gain first-hand insight into their business practices and reputation. These days, you can research most companies online yourself and check their websites and their financial procedures.  
  
Referrals: referrals from other businesses or professionals in the industry are always welcome. Especially if the recommendations are from someone you already trust. Check to see if the companies are members of associations or groups relevant to you where they have solidified their position in the industry.  
  
Objectives: it's good to know if the goals of the company you want to cooperate with align with yours. Is it actually striving in the same direction as you toward success? Is it also working to satisfy its customers, associates and employees, just like you? Make sure your companies' goals and strategies are similar and complementary. If the goals are in conflict, there will likely be no possibility for successful collaboration.  
  
Business processes: to determine if you are a good fit, you need to understand potential collaboration partners' business models and methods. Review the quality of the company's or industry's products and services to ensure they meet your standards. Review the commercial terms of the collaboration, including delivery terms, warranties, and payment terms.  
  
Financial stability: also check their financial stability to ensure they meet future obligations. Check that the company complies with all relevant laws and regulations. You can also check the other company's legal documents, financial stability, and payment history. Companies that don't pay their bills properly are not good partners because the same thing will happen to you.  
  
Size and structure: the size and structure of the company can affect the dynamics of the collaboration. If one company is much larger than the other, it can be challenging to balance cooperation. Primarily if you communicate with a different person each time in a large company because the hierarchy is unclear or you have to wait a long time for a decision to be approved.  
  
Personal relations: it's crucial to think about the personal relations between the two companies. When there is respect and understanding, success is more likely. At the first meeting, whether live or virtual, you can already know the direction your relationship will take. You will be able to assess the professionalism, communication skills, but also general reliability of a potential collaborator.  
  
Any company or charter can use all these methods as guidelines for successful cooperation. Be it with a marketing agency, a new supplier, a cleaning company or a booking agency.  
   

Charters doing business with booking agencies

All of these points should be considered when you are looking for a booking agency with which to do business as a charter, but there are a few more things to keep in mind.  
  
Evaluate the agency's communication and timely responses, which will be crucial in your future business relationship. You need to be sure that the agency can effectively and efficiently promote your charter and fleet.  

Check the agency's experience in the charter industry and the types of companies it usually works with. Of course, you can put your trust in a newly established agency that has convinced you with its enthusiasm or business plan. However, remember that inexperience often plays a vital role in the failure of cooperation between two companies.  
  
Carefully review an agency contract's terms to ensure they match your charter company's expectations.  
 
You can also check the agency's booking history for other charter companies with a fleet similar to yours. This will give you the best insight into the actual situation and information on the extent to which the agency is actually able to generate revenue for you.  
  

How will a booking agency know if a charter is good for them?

As a booking agency, you also have the privilege to choose and know whether the charter company you want to do business with, fits your business processes and goals.  
  
It is not difficult to check online reviews or social media comments to find out if the charter company can provide a high-quality experience for its guests.  
  
According to the above guidelines, you can get a realistic picture yourself, either by doing some research or by making a few calls to colleagues who have already worked with this charter company.  
  
But what should be equally crucial for you as an agent is:  

• Fleet condition 
• Prices  
• Location  
• Licenses

Fleet: carefully check the condition of the charter company's fleet to be sure that you can offer your clients quality vessels and first-class guest service. The best way to assess this is to talk to the charter company in person and visit their base. This way, you will get the best insight into the actual condition of the fleet.  
  
Prices: compare yacht charter prices with similar yachts in the same location or nearby location. This way you can determine whether the company is competitive with its costs and if you and the company can make a satisfactory profit from the booking.  
  
Location: assess the location and accessibility of the charter company and the marina where it is located, whether it is a place that is desirable for guests, what is the transport connection, the infrastructure and the like - in other words, all the "little things" that are important to guests.  
  
Licenses: ensure the charter company has all the necessary licenses and permits to do business legally. You certainly do not want to work with someone who doesn't have all the required work permits and thus put yourself and your co-workers in an unfavourable situation.  
   

Conclusion

When you know who you are doing business with, or decide to do business with someone, one of the most critical factors will determine it - communication. It is said that communication is the key. So check if the method of interaction suits you and if it can be done with quality. Only in this way will long-term cooperation be effective.  
  
Assess whether the company has values and work ethics that suit you or are similar to yours. Be aware of how much differences in culture and worldview can complicate collaboration.  
  
Most important is the "chemistry" you will have with the people you will be working with directly, how "open" the people you will be communicating with are, and also how collaborative they are. Good mutual business communication will eventually lead to friendships, expansion of cooperation and new joint projects.  
  
It is also vital that you don't force anything if you find that some part of the cooperation is not working, whether for a legitimate reason or a very mundane one. You should also know when to say: "Thank you for your attention", and move on to new projects and collaborators.  
  
You know that one phone call is actually enough to get insight into the actual state of affairs. Still, your final decision is based on mutual trust and successful results.

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