Starting a yacht charter? Which vessel to choose?

• 22.01.2024.
• News, Management

If you plan to start a yacht charter company in Croatia, there are certain regulations and laws that you should know and respect. Initially, you need to actually choose the vessels for your fleet, which is no small task. Find out what starting a yacht charter entails and what you must pay attention to.

Every year, new yacht charter companies are opened in Croatia.  
A yacht charter business is attractive because of its dynamic nature and because it's a good business opportunity. Starting a yacht charter is also a chance to create a profitable business. 
 
The yacht charter sector is about more than renting boats - charters must be able to create unforgettable experiences for their guests. For good reviews, returns, recommendations... But also profit, of course.  
   
Is this profit the same as a few years ago, and is it worth starting chartering boats? If we look at the numbers and the newly opened yacht charter companies, obviously, yes, but you should consider what all this entails.  
   
The latest data show that Croatia has about 4,300 vessels and approximately 400 yacht charter businesses. On average, the annual growth of the rental fleet is about 7%. This creates big competition and involves particular challenges.  
   

What does starting a yacht charter imply?  

The start of yacht charters implies specialization in various niches - from luxury catamarans without the charter company logo so that the guest feels as if it is his own vessel to solar-powered vessels for those who are environmentally conscious.  
   
Specialization in these niches is what sets certain yacht charters apart from others.  
   
The market is constantly changing, and it is necessary for all businesses, including yacht charter companies, to keep up with trends. Adaptation is complex, but the market dictates the rules and demands change.  
   
Adopting new technologies, such as booking apps or management hubs, increases the company's efficiency. But at the same time, it makes you more attractive to your guests, who are becoming increasingly "digital".  
   
Success in the yacht charter industry stems from several factors, and one of the first, if not the most important, is the choice of the right vessel (or several).  
   
However, starting a yacht charter company means meeting the market's needs and knowing how to recognize the needs of your guests. It also means being up to date with the market and having vessels that will reflect the strength of your brand.  
   
And when it comes to vessels for charter, the choice is quite big.  

  

Different types of vessels and their types of use  

If you are thinking about starting a yacht charter company, you should know at least the fundamental differences between different types of vessels. Each has its specific characteristics that attract different types of people.  

Sailboats  

Sailboats are ideal for adventurers and those looking for an authentic sailing experience. Sailing boats have their own specific group of people who "don't recognize" other boats because they believe sailing is the only authentic maritime experience. And the rental of sailboats is constantly increasing in charters because they are mostly more economical, not to mention have lower prices.  

Sailboats require specific nautical knowledge and sailing skills, which makes them the first (and only) choice of experienced sailors.  

For example, models such as Bavaria, Beneteau, Hanse or Jeanneau, which offer a combination of performance and comfort, are popular in Croatia.  

And, of course, sailboats are less dependent on fuel and are a more economical option for long-term sailings.  

Motor boats  

Motor boats up to 24 meters long are fast and powerful and simultaneously provide guests with a certain level of comfort. They are ideal for sailors who have an adventurous nature but do not know or do not want to sail.

Motorboats such as Jeanneau's Merry Fisher, Beneteau or Sunseeker have accommodations that, although cramped compared to others, are still of high quality.  

People who charter motorboats say there is nothing better than cruising the open sea at full speed.  

You should also know that motor boats are mostly more expensive in maintenance and operating costs. For the end guest, they represent an additional cost due to high fuel consumption.  

Catamarans  

Catamarans are an excellent choice for family trips and larger groups of people. Their two hulls mostly have larger cabins, more bathrooms, a larger deck, and a larger salon. Not only do they have larger surfaces, but they are also more stable. A more stable vessel means a lower probability of seasickness, which is ideal if sailing with children.  

It is said that, due to the double hull and the increased stability, it is impossible to capsize a catamaran (but some people have succeeded nonetheless).  

Catamarans are known as the embodiment of safety but also spaciousness.  

Models such as Lagoon, Bali or Fountaine Pajot are extremely popular with charterers in our country due to their spaciousness and comfort, as well as the possibility of booking for more people, which also enables them to have a higher rental price.  

Catamarans usually have a smaller draft than traditional sailboats or motorboats, which allows them to access shallower waters and bays inaccessible to larger yachts.  

Gulets and traditional vessels  

Gulets and traditional boats represent a particular segment of the yacht charter industry. These vessels exude charm and tradition, offering a unique and authentic sailing experience.  

Typically handmade wooden boats, gulets and similar traditional vessels are ideal for quiet, relaxing cruises along the coast.  

They also have a historical and cultural component, attracting guests who are also interested in cultural tourism and the traditional way of sailing.  

In Croatia, gulets are popular for cruises along the Dalmatian coast, where passengers can explore historic towns and beautiful islands.  

If you were to describe gulets to someone, the closest description would be "small hotel by the sea". Guests book weekly or multi-week vacations and have their own cabins with bathrooms, full or half board, and many activities to choose from.  

Luxury yachts  

As a yacht charter company owner, investing in a luxury yacht can be highly profitable.  

Luxury yachts, with their elegance and sophistication, provide an extraordinary level of comfort and exclusivity, which makes them a magnet for clients with high-paying power.  

Equipped with advanced amenities such as spacious cabins, state-of-the-art kitchens and Jacuzzis, luxury yachts provide a sailing experience rarely surpassed by any other vessel.  

Luxury yachts also require impeccable service. They require the employment of an experienced captain, sailors, hostesses, cooks, etc. The bigger the yacht, the more crew it will require.  

This type of boat puts your yacht charter company at the very top of the market, and the guests you want to attract will be people with high spending power looking for luxury and privacy.  

 

Marketing strategies for yacht charter companies  

Starting a company of any kind implies developing a marketing strategy.  
 
Primarily because you need to understand in detail the audience you want to target, you need to build a strong identity for your yacht charter and adopt effective digital marketing tactics such as advertising and running social networks.  
  
Identifying your target audience involves market analysis to understand your future guests' specific needs and preferences. For example, your fleet should include high-quality yachts and powerboats with state-of-the-art amenities if you target the luxury market. If you are targeting adventure-seeking guests, focus on sailboats and catamarans to attract people looking for an adventure or comfortable family vacation.  
Of course, each offer has its own demand, so it is best to determine what kind of people you want to attract to your yacht charter, depending on your budget, before buying a boat.  
   
Branding and market positioning are vital to creating a recognizable name in the yacht charter industry.  
Develop a Unique Selling Point (USP) that reflects the uniqueness of your business. For example, if you offer environmentally sustainable cruises or luxury vessels that do not have your label so that the guest on them feels as if they are their own - emphasize it.  
A strong brand identity will help you stand out among the competition (which is extremely large in such a "small" area) and attract people who share your values. 
  
Digital marketing and online presence are indispensable in today's business world. Develop a professional website that highlights your fleet, services and the unique experiences you offer.  
Implement SEO (Search Engine Optimization) strategies that will ensure your website is seen by potential guests looking for yacht charter services online.  
Use social networks such as Instagram and Facebook to promote destinations, special offers and satisfied customers.  
Also, consider using email marketing to send personalized offers and notifications about special events.  

  

Legal frameworks and licenses for yacht charter business in Croatia  

Croatia is a popular nautical destination with one of the largest fleets in the Mediterranean. Therefore, it has carefully defined laws and regulations for yacht charter companies.  
   
To begin with, it is vital to know all the information about the laws and regulations for managing a yacht charter business. In Croatia, as in every other country with yacht charter companies, companies must obtain a license from the Ministry of Maritime Affairs, Transport and Infrastructure.  
   
The Republic of Croatia also has its own Ordinance on conditions for chartering vessels, which explains in detail what yacht charter activity entails; some of the main terms are:  

• According to the definition of the Maritime Code, a watercraft includes boats and yachts primarily used for charter activities.  
• Yacht charter activity includes renting vessels or providing accommodation services on vessels within internal sea waters and the territorial sea of the Republic of Croatia.  
• Chartering a boat involves the assignment of a vessel to an end user for recreation, whether with or without a crew, without providing accommodation services, for a previously agreed and publicly announced fee.  
• The provision of accommodation services includes the assignment of the vessel to the end user, with or without a crew, for the period during which the guests stay on the vessel overnight, with a previously agreed and publicly announced fee.  
• A yacht charter company can be a natural or legal person who is the owner or user of a vessel or has taken over the management of the vessel from the owner or user based on a written contract, thus assuming the rights and responsibilities prescribed by the rules and laws of the Republic of Croatia regarding the safety of navigation and protection of the sea from pollution.  
• A yacht with a professional crew is a rented yacht on which an accommodation service is provided, with crew members employed by the yacht's owner or a charter company based on an employment or other contract that defines working conditions, fees and obligations.  
• Safety at sea is paramount, and every vessel must be equipped with safety equipment that meets international and local standards. Crews on vessels should be trained to deal with emergencies and provide first aid.  

 

 

What does starting a yacht charter company entail?  

Being a yacht charter owner means a lot more than owning a vessel. It includes adapting the offer to your guests' specific wishes and needs.  
   
If you are still thinking of ideas, one option is to offer themed cruises, such as gastronomic tours along the coast of Croatia, where guests can explore local cuisine and wines.  
   
Choosing a suitable vessel, or even a combination of boats, will influence the success of your yacht charter business. Still, you also need to know how to choose the right audience.  
   
If you want to attract and retain guests, it will require a combination of marketing strategy, market understanding, strong branding and efficient digital tools.  
   
If you are starting a yacht charter company, your goal is undoubtedly its success. However, promoting sustainable practices should be just as important.  
   
Every step, from the selection of the vessel to the implementation of operational procedures, should be aimed at preserving the environment. Croatia is proud of the cleanliness of its sea, and it should remain so if we want to continue to have the strongest fleet.  
   
Every decision you make will have long-term implications - not only for your yacht charter business but also for the environment and society as a whole. Therefore, approach your business venture with a clear vision, passion, and responsibility.  
   
If you need advice on yacht charter business, contact us today. Sign up for our newsletter to stay updated with the industry. 

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