The idea of yacht chartering does sound delightful, however it is rather hard to carry out. All the way from securing a competent crew to coming up with the best route, there are many possible issues to deal with. Therefore, in this article, we will introduce the five biggest mistakes that can be made in yacht charter management.
Mistake 1: Fleet Undermaintenance
When the yachts from the fleet are not serviced and maintained properly, there will be downs, danger to the users and the clients will be unhappy. Repair and maintenance will also be necessary if you wish to keep the yachts for long periods of time without devaluating them and even their second hand prices.
Mistake 2: Problems in the Pricing of Yacht Charter Management Services
Under pricing your yacht values when the market is full of customers will only spoil the margins. Too high and they will scare plenty of customers away. Not considering the peak periods and the seasons will ultimately lead some businesses to loss of revenue in these businesses.
Mistake 3: Low-Quality Service
Not maintaining quality customer service can harm the business and cause negative feedback. Not reacting to questions and issues raised by clients, particularly about the product, is another reason for creating doubts and distrust in the clients.
Making mistakes 4: Marketing and Promotion are Minimal
If the only source of bringing in new business is through personal referrals, a perilous approach is being taken. Not fending off traditional marketing restrictions hinders accessibility. In high level competition, the absence of a good marketing strategy and structures will be detrimental.
Mistake 5: Inadequate Risk Management Plan
Lack of contingency plans may cause unanticipated extended downtimes and cancellation of operations resulting in losses and damages to the firm’s image. Insufficient insurance coverage for the fleet and the business operation is a major financial liability. Failing to follow the necessary laws and regulations may attract fines and even legal action.