JUST WHAT DOES REGENCY YACHT CHARTERS CLEARINGHOUSE DO?

As your yacht’s clearinghouse, RYC is the link between you and the charter brokers. In that capacity, we hold your yacht’s calendar at our office, along with all the details about the boat and its crew, and provide that information to brokers interested in booking your yacht for their clients. While are busy at home & your crew are busy chartering, we communicate with the brokers for you. We’ll distribute your brochures to the brokers and we have two websites, which they have access to. One for in-house details and the other for marketing to the public.

For those yachts based in the Virgin Islands, we also provide our members through our Road Town Tortola office, with a mail box for receiving business and personal mail, we’ll hold packages for you, and we’re a communications center: our office is your office, with phones, fax, copier and computers available to you, plus we’ll take messages and even make calls for you. We’re also there to talk over chartering issues if you wish and will even try to help you find crew if needed.

Regency Yacht Charters aims to provide you with the professional support you need to build and maintain your charter business. Think of us as a partner who wants to see your business grow. Whether you need help designing a brochure or the name of a kennel to board your cat, advice about provisioning or how to get the most for your advertising dollar, the folks here at RYC are approachable and user-friendly experts ready to help you.

Each yacht owner and crew are the ultimate decision makers responsible for positioning & marketing of their own business. We offer advice & guidance, but each yacht must use their best efforts to promote, communicate and work with brokers to ensure the volume of bookings they need.

CHARTERING LEGALITIES

Aside from perfect sailing winds and great vacationing weather, the Virgins Islands are the chartering center of the world for the ease of running your charter yacht business here. Requirements have changed in recent years to operate in the US & British Virgin Islands. These requirements are in effect for the winter 2016 season.

US Flag Yachts with US crew

May charter in & out of the USVI, must file an online NOVA with all passenger details in advance of clearing out and in.

May enter the BVI with guests aboard unlimited number of charters but a cruising permit is required which are paid on a weekly basis.

Captain must hold a valid US Masters License and a BVI Captains License. Yacht must be inspected and meet MCA safety inspection in the BVI whether based in the BVI or passing through. May pick up or drop off up to seven charters annually in the BVI without a trade license or work permit, otherwise an annual trade license and work permit is required. No charters with more than six people allowed in US waters unless the vessel is either MCA or USCG inspected and approved or over 100 Gross Tons.

Non- US Flag Vessels with Non US Crew

May pick up or drop off unlimited number of charters if crew have a B and/or D Crewman’s VISA for the US. Each charter must clear out of the US into another country once during the trip. All crew (even crew from visa waiver nations) MUST have a VISA to charter. Must file online NOVA before clearing in & out of the US.

All yachts that plan to base year round in the BVI, regardless of flag

EACH YACHT will need A BVI TRADE LICENSE RENEWED ANNUALLY AND VALID WORK PERMITS FOR EACH CREW MEMBER. MANAGEMENT SERVICES FOR YACHTS WITH EMPLOYED CREW AVAILABLE THROUGH THE REGENCY MANAGEMENT PROGRAM. An annual T12 temporary import permit required – runs annually November 1 through October 31.

May pick up or drop off up to seven charters annually in the BVI without a trade license or work permit, otherwise and annual trade license and work permit is required.

Captain must have a BVI Captains license in additional to any license requirements of the flag nation and vessel must pass BVI MCA safety inspection.

The BVI also charges for a cruising permit on charter vessels: $4 per person per day (paid only for your guests, not crew) and a departure fee of $5 per person. There are also overtime fees for clearing on Sundays and Holidays (remember that the BVI has different holidays than the USVI), and Saturday afternoons. Most charter contracts provide for the guests to pay these fees. Charter vessels are allowed to clear in and out at the same time, simplifying the procedure. Customs houses are in Great Harbour, Jost Van Dyke; Soper’s Hole, Tortola; Road Town, Tortola and Spanish Town, Virgin Gorda.

The BVI has a National Parks Trust, which encompasses both land-based and marine parks. All of the BVI Marine parks have moorings to protect the coral and their use is mandatory. A permit is required for use of the BVI marine park moorings, which you can purchase at the time you check into Customs and Immigration (or you can buy an annual permit from the National Parks Trust, in Road Town.

Down-island clearance and user fees vary tremendously, so check for up-to-date information. Cruising down-island usually includes the area from Anguilla to St. Martin and St Barths, or the Grenadines area from St. Vincent down to Grenada. Most yachts do not pick up from the French islands unless they are French flag & VAT tax paid, for tax reasons and should avoid picking up from Guadeloupe (yachts have been seized for not paying a 18.6% tax).

Other yachts that have chartered down-island are a good source of information about provisioning, clearances and general chartering details. If you decide to venture down-island to charter during the hurricane season or as an alternative to the Virgin Islands in the winter months, let us know. We can recommend someone who has chartered down-island and who can give you some valuable tips.

KEEPING US UPDATED

Regency Yacht Charters endeavors to be as knowledgeable about your yacht as is possible: the crew, schedules, rates, accommodations, toys; anything that brokers and their clients might ask about. We request that you keep us “in the know” on any changes or updates as they occur. We’ll give you information and rate sheets to update during the year and ask that you fill them out and return them to us filled in with accurate information. Rate changes can be made quarterly: 1 February, 1 May, 1 August and 1 September. Please remember we need this information IN ADVANCE of the publishing date! If you need assistance in setting your rates, RCS can help you.

YOUR YACHT’S SPECIALTIES

You may decide to add some special items or services to your charter business, which can bring added broker and client interest. Lots of water toys are especially popular, including windsurfers, sea kayaks, water skis, etc. Diving’s popularity has exploded and many yachts are offering some level of diving. The simplest is “rendezvous” diving, offered by dive shops throughout the islands. Their Instructors and Dive Masters will come out in the shop’s boat to pick up your guests at your yacht for their dives. To guide divers yourself you must be a Dive Master and guests must be certified divers. You are required to be a Dive Instructor to offer diving to uncertified guests. The dive organizations which certify Dive Instructors and Dive Masters offer insurance, which is required if you will be leading dives or instructing.

Other specialties might include sailing instruction, cooking classes, massage or eco-chartering. Let us know of any special services or items you offer aboard your charter yacht.

KEEPING IN CONTACT

Even with all of the information we have regarding your yacht, brokers and their clients may call with queries we may not be able to answer without contacting you, so it’s important for us to be able to reach you. Currently, options for cellular service providers in the BVI have expanded and most offer online Wi-Fi modems for your computer. Satellite service has become more affordable and is another option.

YOUR REGENCY YACHT CHARTERS ACCOUNT

Monthly billing accounts are prepared on or about the 25th of each month and will be charged to your credit card by the 5th of the following month. Items appearing on your billing may include (but are not limited to): phone calls, emails, faxes, postage, copies, 2% booking fees for each broker charter booked through our booking desk, and your monthly services fee. The 2% fees become due in the month the charter takes place – much better for cash flow. Please check your account monthly and we thank you for prompt payment.

LEAVING THE CHARTER BUSINESS

Should you decide to quit the charter business, keep in mind that you are still responsible for any bookings remaining on your calendar. If you leave prior to completing the booked charters, you are obligated to pay for the commissions and fees earned by the brokers and the clearinghouse, which have acted in good faith to book your yacht. Also, if you decide to change your chartering area, you are responsible for those charters booked in the area you are leaving.

ANNUAL CHARTER YACHT SHOWS

Various charter yacht shows are held throughout the yachting world from the Caribbean to the Mediterranean. Your participation in one of the annual shows is a particularly important component of marketing your charter yacht. Most important for you will be one of the Caribbean’s boat shows. In early November, charter yacht shows are held in St. Thomas and Tortola. These are held back-to-back for the convenience of the charter brokers coming in to see the yachts. There is another show in Antigua during the first half of December. An additional show is held on Tortola in May. Newport, Rhode Island holds shows both in the spring for yachts working the summer season in the Northeast and in the fall for yachts headed south. Since most of the brokers attend all of these shows, it’s necessary for you to participate in just one of them. Which one you choose can depend on your yacht, the cruising area, where your clearinghouse is located, etc.

Even yachts and crews who are old hands at the chartering business usually participate in one of the annual charter yacht shows, to get reacquainted with the brokers and to show off their beautiful boats. For yachts new to the industry and crews new to the yachts, the annual charter yacht show is especially important. The boat show is your opportunity to present your yacht and yourselves to the brokers. The brokers will expect each yacht to be well-maintained and impeccably turned out for the show: beds made up with nice linens, towels attractively folded, table settings out with your best placemats and pretty napkins, and flowers are all touches that will help to show your boat to advantage. You might serve some refreshments as well: cold bottled water, juices, sodas and beer. Yachts will occasionally offer freshly baked cookies in the mornings and a cocktail hour after brokers are finished for the day.

Brokers will want to get to know the crews to ensure their clients will be chartering with a personable, knowledgeable crew. Be attentive to each broker, look your sharpest and assist in your “interview” by being professional, open and prepared to present yourselves, your yacht and its amenities. There is a large number of brokers, all with different client bases and expectations so keys to your success include knowing what it is you’re selling and adaptability in dealing with a variety of people.

Regency Yacht Charters can advise you in preparing for the charter yacht show and the professional charter brokers at Regency are also available to come down to your yacht and make recommendations.

If your yacht is coming into the fleet in the middle of the season, we will arrange a showing and cocktail hour on a dock for the local brokers to get to know you and your boat.

CHARTER BOOKING PROCEDURES

  • BROKERS

    The nearly 200 professional charter brokers throughout North and South America and Europe are the sales force for the industry. They differ from travel agents in that they specialize in charter yachts, though they may work in tandem with travel agents. The brokers advertise crewed yacht chartering and most of the bookings they generate are from direct inquiries by potential charter guests. Many brokers have operated charter yachts and most are fully knowledgeable about the industry. They work hard to match their clients with the right boat and crew to meet the guests’ expectations.

  • RYC BOOKING DESK, DEPOSITS AND COMMISSIONS

    A broker with a client interested in booking your yacht will contact our booking desk to make sure your calendar is open and if so, may put a “working hold” on the dates. This amounts to a temporary hold on your yacht for those dates, until the broker receives a 50% deposit from the client, (25% if booked more than 6 months in advance, with a second 25% due at 6 months prior to charter), at which point the charter dates are considered firm. If another broker (or a self-booking guest) is interested in booking the dates of another broker’s working hold, the original broker who placed the hold has 48 hours (2 business days) to secure a deposit from the clients. Once a deposit is received and the charter is confirmed, the broker is given a confirmation number for that specific charter and you will receive an email booking notice about the charter, with broker, dates, guest’s name, charter fee and the broker’s commission listed.

    Brokers’ commissions are taken directly out of the deposit: 15% on a standard charter. Some yachts have decided that they will pay a flat 20% for all charters. If the client first contacted a travel agent for help in finding a charter yacht, the commission is 20%, split equally between the broker and travel agent. Brokers must provide proof of the travel agent’s participation. A broker with his own travel agency may not take a 20% commission. When guests from a broker-booked charter want to repeat with you, the commission on the repeat charter is the same as the original.

    After the commission, the broker forwards the remainder of the deposit to a trust account (either the Regency Client Account held at FirstBank Bank in St. Thomas, or the CYBA trust account at USB in the States). The deposit will be released to the yacht 10 days prior to the charter’s start. Final payment of the charter fee will be paid on the first day of the charter. We strongly recommend direct deposits into a local account although you may have us mail or wire charter funds (less fees) to any account you wish.

CONTRACTS

Once a charter is confirmed, the broker will send you a contract and information sheet about your guests, including their food and beverage preferences. Every charter will have a contract, prepared by the broker and we recommend that you read them over carefully. The contract will include specifics about the charter: number of guests, dates, price, any extra fees for things such as diving or deadhead (which refers to delivering the yacht to a port other than your normal pick-up point, such as St. Martin. A deadhead fee is usually calculated at half the yacht’s normal daily fee times the number of days in transit to or from the pick-up point) as well as specifics regarding the cancellation of a charter.

CANCELLATION POLICY

The standard charter industry policy for cancellation of a charter is as follows:

  • Should there be a change in who is Master of the yacht and that crew was specified in the charter agreement, the charterer may cancel without loss of the deposit.
  • Should the charterer cancel for other reasons; the deposit will be paid to the yacht on what would have been the last date of the charter. Since the broker has taken the commission of the full charter fee out of the deposit, the broker then owes the yacht one-half of the commission. Should the yacht rebook for the same period, the deposit will be refunded to the canceling charterers. If just part of the period rebooks, there will be a return of a prorated part of the deposit. (i.e., If 3 days of a 7 day period are rebooked, the yacht owes the canceling charterers 3/7 of the deposit).
  • Should the yacht master or owner cancel the charter, the deposit is returned to the charter guests and the yacht is responsible for paying the commission to the broker and booking fee to the clearinghouse, both of whom have acted in good faith to book the yacht. In case of a mechanical breakdown of the yacht, a period of 24 hours is extended to the yacht to make repairs. For cancellation of the charter due to named storms including hurricanes, this policy does not apply. Please check your contracts regarding a specific event’s policy.
  • Occasionally, a charter may have to cancel and the yacht master/owner may agree to hold the deposit to be applied toward a charter at another time. If so, we would recommend agreeing upon specific dates as early as possible and make this agreement a written one.
  • Rarely, a yacht may need to cancel a charter on short notice. Ultimately it is the Captain’s responsibility to notify the broker and to find an appropriate yacht to substitute. Regency Yacht Charters can help you in this event.
  • Should a dispute arise between a charter guest and the yacht’s Master/owner regarding the refund of a deposit, the dispute will go to an arbitration committee. The committee will include one person nominated by the broker, one nominated by the Master/owner of the yacht and a third person nominated by the two other nominated arbitrators. The decision by the arbitration committee shall be binding on all parties.

CAPTAIN’S HOLDS AND SELF-BOOKED CHARTERS

A captain or owner may block out time on the yacht’s calendar held at RYC for maintenance, vacation, a self-booking or any personal reason. Please notify RYC booking desk in writing of the dates you plan to block. You may also wish to indicate to us whether the hold is a firm one or if you might possibly release the hold if a broker has clients interested in booking your yacht for those dates. It’s important to keep in mind that a charter yacht business is a business. You cannot block out dates that have already been booked by a broker, without actually canceling the charter, refunding the deposit and paying the broker their commission. If the dates you’d like to block out have a working hold placed by a broker, you will be expected to give the broker 48 hours (2 business days) to acquire the deposit from the client.

You are also entitled to book charters on your own yacht. It’s your responsibility to block the dates for a self-booked charter and to handle the contract, collection of charter funds to be deposited to your business account and provisioning paperwork. When charter guests want to rebook with you, the ethical thing to do is to contact the broker who originally booked the charter on your yacht. If that’s a problem, ask us about what to do.