Crewed Yacht Charter Business Program

Experts in Crewed Catamaran Charter Business

Atlantic Cruising Yachts brings together a team of industry experts to assist our clients with creating a successful all-inclusive, crewed yacht charter business.  We provide all aspects of service required for successful execution and operations.

  • Charter Yacht Solutions, Ltd., based in St. Thomas USVI, one of the most highly respected crewed yacht broker clearing houses,  provides instant access to the worldwide network of independent charter brokers.
  • Virgin Islands Yacht Charters, our Waypoints affiliate in the Virgin Islands, provides yacht & crew management services to ensure smooth, cost effective operations.  They offer professional, experienced crew with a compensation structure aligned with the owner’s revenue goals.
  • Susan Restauri, our Waypointsmanager, is a veteran crewed yacht charter broker, who supports the program with marketing and booking expertise.

Income and Tax Advantages through Business Yacht Ownership®

The combination of tax advantages, operating income, and special low-interest collateralized financing programs, provide opportunities to not only offset the costs of ownership, but also to create positive net worth through yacht ownership.  Archetype Advisors, LLC, registered Certified Financial Planners and tax strategists, can show you how this approach might apply to your circumstances.  Learn more about tax advantages and special financing programs for crewed yacht charters through Archetype Advisors.

Yachts Available for this Program

Fountaine Pajot Saba 50

Fountaine Pajot Ipanema 58

Fountaine Pajot 67

The Crewed Yacht Business Model

  • Crewed yachts have a full-time live-aboard crew (Captain and 1st Mate/Cook), who manage and run the Yacht and are paid on a by-the-charter basis. Generally, the charter prices quoted are all inclusive including the crew, provisioning and all miscellaneous charges.
  • The crewed boat, because it has a full-time captain, is generally not based in a single location and so may travel to wherever the charterer wants to cruise.  The crewed boat may follow the sun seasonally.  For instance, it’s typical for a boat to be based in the Caribbean but seasonally relocate to New England, the Mediterranean, or below the hurricane belt to the Grenadines for the summer season.
  • For crewed yachts, the Clearing House is the primary point of contact for bookings through independent charter brokers.  Some of their services include:
    • Maintaining the booking schedule;
    • Arranging international handling of funds. Additionally, might host bank accounts and general communications between the owner and captain/crew as the boat moves around;
    • Sets up marketing and promotions, and listings on various crewed charter web sites;
    • Hosts the boat in numerous special crewed charter boat shows. These are generally attended by certified crewed charter brokers and account for a significant percentage of charters booked–often more than 50%.

Other resources

  • Financing.  ACY has marine financing sources available for crewed yacht businesses.  Alternatively, we offer collateralized financing through BNY Mellon, if you have an equity portfolio in excess of 1.5 times the value of the boat.
  • Live Webinars.  Attend our Business Yacht Ownership Webinar, hosted by  William Lahr, CFP® of Archetype Advisors, to learn about a charter business in general and how the tax advantages work.

Ipanema 58 Cash Flow Example

Sample based on certain assumptions of revenue, expenses, tax and financing strategies which can vary widely based on the individual.  Contact us for details.  Please consult with your tax and legal advisers before making any purchase decisions.

IPANEMA 58 CASH FLOW ESTIMATES
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Charter Revenue
  Estimated Charter Weeks 16 16 16 16 16 80
  Weekly Charter Rate 30,000 30,000 30,000 30,000 30,000 30,000
Total Charter Revenue 480,000 480,000 480,000 480,000 480,000 2,400,000
Charter Related Costs
  Broker Commissions (15% of charter fee) 72,000 72,000 72,000 72,000 72,000 360,000
  Clearing House (1% of charter fee) 4,800 4,800 4,800 4,800 4,800 24,000
  Crew (Full time but paid per charter) $5,500/week 88,000 88,000 88,000 88,000 88,000 440,000
  Provisions ($1,500 per week) 24,000 24,000 24,000 24,000 24,000 120,000
  Cruising Permits ($100/week) 1,600 1,600 1,600 1,600 1,600 8,000
  Fuel ($500/week) 8,000 8,000 8,000 8,000 8,000 40,000
Total Charter Related Costs 198,400 198,400 198,400 198,400 198,400 992,000
Net Charter Revenue
(before Management Fee)
281,600 281,600 281,600 281,600 281,600 1,408,000
Management Fee (15% of Net Revenue) 42,240 42,240 42,240 42,240 42,240 211,200
Net Charter Revenue 239,360 239,360 239,360 239,360 239,360 1,196,800
Annual Operating Expenses
  Interest Payments 35,346 35,346 35,346 35,346 35,346 176,731
  Marketing 16,800 16,800 16,800 16,800 16,800 84,000
  Travel Expenses 2,800 2,800 2,800 2,800 2,800 14,000
  Maintenance, Parts, Repairs
(Estimated at 12% of Revenue)
57,600 57,600 57,600 57,600 57,600 288,000
  Annual Haul Out 10,000 10,000 10,000 10,000 10,000 50,000
  Transient Dockage 10,000 10,000 10,000 10,000 10,000 50,000
  Crew Uniforms 1,250 1,250 1,250 1,250 1,250 6,250
  Laundry 800 800 800 800 800 4,000
  Insurance 35,346 35,346 35,346 35,346 35,346 176,731
Total Annual Operating Expenses 169,942 169,942 169,942 169,942 169,942 849,712
Annual Pre-Tax Cash Flow 69,418 69,418 69,418 69,418 69,418 347,088
Tax Savings (see details below) 679,157 -27,767 -27,767 -27,767 -27,767 568,089
Annual After-Tax Cash Flow 748,575 41,651 41,651 41,651 41,651 915,177
Average Monthly After-Tax Cash Flow 62,381 3,471 3,471 3,471 3,471 16,948