Frequently Asked Questions
When other fractional yacht programs
have not been successful, why will this one
succeed?
Before designing this program we reviewed nearly
every fractional yacht and jet company that does,
or has existed. We carefully examined their systems
and policies to determine the strengths and weaknesses
of each program. One consistent element that we
found was that those who failed were primarily
sales-driven organizations. In other words, they
needed to continue to sell new shares in order
to maintain their operations. Most of the fractional
yacht programs were setup by manufacturers as
a way to increase sales, so selection was limited
to that builder’s models, and experience
in yacht management was severely lacking.
The more successful models are management-driven;
they have a strong land-based management division
and rely on management fees, not new sales, to
sustain their fleet. Not coincidently, virtually
all previous fractional yacht programs relied
on a sales-driven model. Another factor for our
success is that our entire inventory is provided
by current yacht owners who are accustomed to
absorbing 100% of the expenses of ownership, (less
charter revenue). What this means is that unlike
an operator who purchases and maintains inventory,
our inventory is provided and paid for by yacht
owners who view the fractional model as an attractive
exit strategy, not a profit center.
How do you ensure that yachts in the
program are actually maintained to the high
standard that you state?
When a yacht is accepted into the program and
has completed the contribution survey process,
we create a detailed maintenance manual specific
to that boat and its systems, encompassing every
element on the yacht. Every pump, valve, motor,
gear, through-hull fitting, electronic part, door
track, opening hatch or other moving parts, and
all cosmetic aspects of the yacht are quantified
and documented. Detailed maintenance schedules
are then created and crew members are assigned
specific tasks. Each day, week, and month those
tasks are dispatched to the appropriate individual
and the status of each is reported back to our
home office through the on-board software. The
crew are not only responsible to the captain,
but also to the land-based manager. These procedures
ensure that maintenance is being done “by
the book”.
Are there any other expenses besides
the initial purchase price, monthly maintenance
fees, and personal provisioning costs which
I should expect to pay?
No, those are the only normal costs associated
with your ownership. However, as with any yacht,
unexpeced issues could arise. Although every effort
is put into anticipating breakdowns, repairs,
refurbishment costs, and operating expenses, exceptional
circumstances could cause an increase in the annual
budget.
Is financing available?
Traditional yacht financing is not currently available
on fractional yachts because of the impact that
a defaulting owner would have on the other owners.
However, we have established relationships with
lenders who will provide financing to individuals
who qualify based on bank or personal guarantees.
We also have Contributing Owners who offer financing
on a case by case basis.
How did you arrive at six weeks of use
per owner?
We interviewed dozens of captains, owners, and
yacht managers to determine the average number
of weeks that large yacht owners use their boats.
Although there are exceptions, including live-aboard
owners and those that travel extensively, we found
that most owners use their yacht between four
and six weeks per year.
How do I schedule my time aboard, and
are there any parameters which restrict my use?
You can book your time aboard online or through
the PartnerShips’ concierge. There is a
four day minimum and three week maximum. You can
book two consecutive weeks up to one year in advance
and additional consecutive weeks can be booked
one month prior to your scheduled use.
What if I don’t use all six of
my available weeks?
If you know that you will not use all of your
available time, you can contribute weeks to the
charter pool. Those weeks are offered on the charter
market. The total revenue generated from charter
is then divided proportionately between those
owners who contributed to the pool.
What if I want to use more than six weeks
in any given year?
Owners can charter additional weeks at a discounted
rate, but you cannot exchange weeks between fiscal
years.
Why are there only 30 weeks of total
use available to owners?
We allow two days between each owner’s use
for the crew to prepare, re-provision, and personalize
the yacht for the next owner’s visit, representing
eight weeks (30 x 2 days = 8 weeks); transitioning
time between cruising grounds account for approximately
four additional weeks. Scheduled maintenance and
normal repairs add the remaining ten weeks. Since
crew rotate in from other yachts during their
vacations, there is no need to deduct for crew
holidays.
What if I want to have my own bedding
or other bulky personal items that do not fit
in onboard storage when I’m aboard?
For the cost of shipping, you can have anything
that you would like on the yacht sent from our
facility, or any other location, so that it is
there upon your arrival.
What if we don’t get along with
one of the crew members?
Although the crew aboard all PartnerShips’ yachts
are highly-trained and follow strict guidelines
provided in our crew manuals, individual personalities
may clash with you or someone in your family.
Because of the homogenous training among all PartnerShips’ crew,
anyone can be traded from another PartnerShips’ yacht
during your time aboard. Obviously if the problem
with a crew member extends beyond a personality
issue, then they may be terminated.
How can I be assured that the yacht
I purchase will not plummet in value when it’s
time to sell my share?
Just like with full yacht ownership, you’re
subject to market conditions, but history has
shown that properly maintained yachts generally
hold their value. PartnerShips' reputation for
having exceptionally well-maintained yachts should
translate into a higher than normal yacht value
when reselling your shares.
How can I get a copy of the contracts
for PartnerShips’ fractional program?
After signing our Letter of Intent and Non-Disclosure
Agreement we will e-mail all documents to you
or your attorney for review. Our attorneys are
also available for your counsel to confer with
at anytime.
Can I trade time on other yachts in the
program?
As our fleet grows we will offer the ability to
trade weeks between yachts of different sizes
and in various cruising grounds.