Fractional Yachting Success or Failure?

Hi,

YGPM

It seems to me that fractional ownership is a lot of smoke and mirrors.

My take on fractional ownership is that it may be the way to go, not just in Yacht ownership but in other aspects of acquiring luxury items and a lifestyle.
It works very well in Real estate through timeshare, Plane ownership, and most recently condo buildings in urban centers purchase cars that are owned and used by the strata owners on a need basis.
As for the Foster design, I think that the romance has been taken out of the design of the yacht, and it resembles a running shoe more than a yacht.

Foster?

Well, pardon the threadjack, but the criticism of the "Foster design" got me curious, but when I Googled "Foster yachts" I got nothing. Can anyone provide a link or a photo of this boat?

Thanks and happy cruising.

This is the "running shoe" design that I was referring to.

hm.. a bit longer and the curves longer and as a catamaran maybe it would be a nice yacht *grin*

I may be wrong but most people like to personalise the things they own. I have never worked on a yacht where the owner and / or partner did not have a strong urge to add some personal touch. Multiply this by say 8 owners and it is a nightmare for the crew to keep up with. If it is not able to be personalised then they may as well be on a cruise ship. Besides that if you have 8 owners using the boat for 4 weeks each, a year all wanting to be dropped off and picked up in different ports as well as the vessel crossing the Atlantic twice a year when does the vessel have maintenance done and the crew get a break. If you run with 2 crew then personal preferences of owners is going to be really difficult to stay up with.

And how do you deal with Mrs X hating the chief stew while Mrs Y cant live without her but hates the chef etc....................................As the propellor turns so do ..........................

Fractional yacht ownership is not unlike the early days of time sharing - there are good deals and there are not so good deals. With fractional yacht ownership the legal structure is of the utmost importance as well as the actual deal structure itself. After all, 3 to 5 virtual strangers are coming together in a financial partnership. Keep in mind that a good many of the fractional owners are probably first time yacht owners and may not appreciate the full costs of ownership and upkeep. This is especially true when a used vessel is the subject matter of the ownership program.
In theory the fractional ownership approach makes a lot of sense. You essentially time share an airplane or a cruise ship or even a taxi. So add to that some pride of actual ownership and the bragging rights that go with that, and it will appeal to a much bigger market segment. It just needs to be managed properly. A good management program plus a good boat should be a success.

Very good points by Garry.

From a crews perspective I would assume the work load is very high with little down time for repairs. It would not be like a charter where you work hard for tips, I doubt the "owners" are giving tips on the scale of normal charters. I can also see scheduling, paying for fuel, damages to the boat, etc.. being a problem. What happens to older boats that need major work, some of the owners might not be so quick to write checks for major repairs. I can see a 500,000 dollar shipyard period turning into quite the headache. When you want to sell your share who wants to buy a quarter share of an old boat?

However, I have heard from my friend at Monocle that the captains really enjoy working on the boats because there is little contact with the owners. Monocle manages the boat more than normal management companies.

Hi,

Do you think you could provide an overview of how Monocle manages the boat in this way vs normal companies?

I would suggest that if you want these vessels to present and maintain a yacht standard that you need to allow for 6 months a year for maintenance and crew down time. Commercial vessels are not presented to the same standard and are therefore easier and quicker to maintain.

K1W1 this was second hand information, but from what I understood scheduling, maintenance, crewing, etc is through Monocle, they do not necessarily need any of the owners approval to change the above. I am really not sure how much input the owners have in changes to the boat.

I do know that they make their money off of the management of the boat, not off of the sale of the boat.

Hearing about multiple owners always reminds me of the boat that has 6 owners and no management company. The captain begging the owners for money, one owner wants to change the interior, one wants a new tender, and the other a new ski. Possibly the hardest captains job in the industry.

nas

Hi,

I did a relieving job on a 50m Feadship in 2000( 4 months) and again in 2002 ( 2.5 months)which had two Owners. Owner A didn't use the boat very much but liked it a lot and was willing to spend money on it. Owner B used it as much as possible and wouldn't spend anything on it.

The two Owners were friends at the outset, it was managed by what was and still is supposed to be a reputable management house. The condition of the vessel deteriorated during it's dual ownership stage and managements single minded determination to keep costs down to maintain the " good guy" status that they enjoy by both taking shortcuts and having the vessels inspected on their behalf by inexperienced ex Capatins and Engineers who did not really have the experience or knowledge for the positions and responsibiliteis which they were thrust upon them.

It is my understanding that Owner A has now bought the boat outright, he spends a sufficient amount on it , has replaced the management and enoys himself immensley. I have recently been sent a picture of her and she look fantastic.

Look , here is a post that ends with a question for all the yachting buffs here.

Anyone who cares to guess the name of this boat must admit their role in it or it's crew either past or present to be acknowledged.

Mostly though this is a story about shared ( Fractional), Ownership.