Chartering your yacht or superyacht can be a fantastic way to offset the ever-rising price of ownership. There a number of programmes and schemes on the market for a yacht owner to place their vessel into, and today we will be highlighting how things work at Sophia Tutino Yachting.
What is Yacht Charter Management?
Charter management is the relationship that is present between a charter company and the vessel owner, where the charter company offers the yacht or superyacht for rent, taking control of the management of marketing and bookings, whilst also handling all the paperwork and managing any cash received from charters on behalf of the owner.
When an owner places a vessel into a yacht charter management programme, they benefit from the knowledge that their charter manager provides in navigating the sector, whilst also benefitting from the pool of potential clients and brokers that charter managers retain relationships with.
Yachts placed into charter management can benefit from tax reliefs due to tax rules around the purchase of business equipment. By placing a yacht into a charter management programme, owners are converting their personal asset into a functional business asset – fundamentally a rental business. This can aid ultra-high-net-worth-individuals (UHNWI) who already face a high tax bracket.
Additionally, yachts in a charter management programme begin to generate income, which allows the owner to make full use of the potential capacity of their vessels. At Sophia Tutino Yachting, owners benefit from meticulous calendar planning to maximise the number of bookings for the vessel and in turn begin the process of generating charter income.
In the case of Sophia Tutino Yachting, the yacht owner would be considered a stakeholder/escrow agent; monies generated from the charter are received by Sophia Tutino Yachting and are held in our escrow account pending disbursement as per charter contract terms. This gives owners security in the knowledge that their funds are protected and ready to be released at the agreed point in the contract.
In tandem to the above, at Sophia Tutino Yachting we also provide owners with monthly financial reports to summarise the progress and organisation of each contract. This includes a review of incoming and outgoing funds, each time a broker sends contracts of agreed terms to a charter client. We also provide a monthly marketing report to summarise the reach and exposure that Sophia Tutino Yachting has provided for its clients and the interest that is generated from this.
A great crew can help make a yacht charter even more special, so it is important to both retain good crew and keep them sharp and active by being out on active charters with guests. When a vessel is in a charter management programme, crew and stewards remain well practiced whilst also keeping staff attrition lower from more regular work.
There is also increased value to be had from a reputation point of view. Through successful charter seasons, yachts and superyachts can build both a brand identity and a reputation within the industry. This kind of clout will have a positive effect on the re-sale value of a vessel.
Reputational improvement for a yacht or superyacht can also be achieved through active promoting of the vessel at boat shows, which is why charter management organisations regularly attend such events. Sophia Tutino Yachting attends the most important and prominent boat shows worldwide to ensure best representation for our clients at the most noteworthy events in the yachting calendar, including Monaco Yacht Show, Newport Charter Show, MYBA Charter Show, Mediterranean Yacht Show, Turkish Yacht Charter Show to name just a few. We also attend a number of private events, where we utilise our strong connections in the Family Offices world and our networks of Personal Assistants to attract an audience of UHNWI.
Our respected legacy in the yachting industry is an amalgamation of over 13 years’ experience and expertise in yacht charter management at a number of large organisations, including some industry leaders, placing Sophia Tutino Yachting as a leading authority in the sector. The offering from Sophia Tutino Yachting goes beyond just charter management: We look to provide the ultimate yachting service. Every interaction with a customer is a bespoke, unique experience as we seek to manage every aspect of vessel management, enabling the owner to relax knowing that everything is taken care of.
How do charter management programmes deliver value for owners?
Whilst not giving away too many secrets for how we operate as a company (you never know if a competitor is reading!), there are a myriad of ways that charter management programmes can deliver value for its clients.
At Sophia Tutino Yachting, we create personalised direct email campaigns that are distributed to cherry-picked clients, travel agents, private assistants’ networks, luxury travel concierges and charter brokers. This enables the vessel to be put in front of the right people, something that many owners find difficult to achieve. This is also supported by digital marketing campaigns, strengthening a yacht’s online presence.
The network that we have built and continue to build ensures that we are connected with the right contacts. Sophia Tutino Yachting consistently attends networking events where possible, to extend our circle of contacts throughout many different industries, whilst also promoting our clients’ vessels in an intimate, face-to-face manner. We are also proud and active members of many yachting associations and family office communities, including the Global Family Office Community (GFOC), the International Yacht Brokers Association (IYBA), Young Professionals in Yachting (YPY), European Committee for Professionals in Yachting (ECPY) amongst a host of others.
As a yacht charter authority, we have access to a number of private industry-relevant portals that the general public cannot enter. Through this, we are able to promote the yacht’s full profile, crew profile and sample menus to yacht charter brokers the world over.
The best and most successful charter management schemes stem from a positive relationship between the owner and the charter management organisation with which they have entrusted their vessel. The bespoke, personalised offering at Sophia Tutino Yachting is indicative of the kind of relationship an owner should be seeking from their yacht charter management: Elite levels of service at all times.