truth • opinion knowledge • ideas and expert industry analysis home grown talent the legacy lives

97 Pages·2014·6.93 MB·English

ISSUE 153
MAY 2014
7KH
6XSHU\DFKW
TRU T H • O P I N I O N K N O W L E D G E • I D E A S A N D E X P E R T I N D U S T R Y A N A L Y S I S
So, it’s only paint.
Have you tried telling the owner it’s only a boat?
We both know how passionate owners can be about their yachts. Together, we not only recognise that passion, we share it.
And, let’s face it, we both know that paint is a critical part of new-build and yacht maintenance, and that it’s not just about aesthetics
– it’s about protection, it’s about performance and it’s about reputation. Here at International Paint, we have spent over a century
developing products, training programmes and business partnerships with our professional customers, with their customers in
mind. So, whether you are preparing a project tender with our technical service team or applying the latest from our range of
advanced profesional paint systems, you are working with a reliable partner, who cares about your busines as much as you do. 5(3257
Visit yachtpaint.com/pro and let’s discuss our passion for your business. HOME GROWN TALENT THE LEGACY LIVES ON SERVICE WITH A SMILE UPPING THE ANTE
Sunseeker are winning business the Royal Huisman’s 80m DART sail and Captains’ experiences of the best and Marinas evaluate their position within
Our World is Water old-fashioned way: first to market with power concepts inspired by Ethereal’s worst of the services offered by yachting the market and offer their opinions
, International and the AkzoNobel logo are trademarks of AkzoNobel. © AkzoNobel 2014. a desirable product that’s priced right. technological innovations. agents worldwide. on clients’ changing expectations.
Page 22 Page 38 Page 55 Page 76
,668(0$<7+(683(5<$&[phone]((.(5‡52<$/+8,60$1‡&+$57(5,1*‡0$5,1$6‡$*(176
7KH
6XSHU\DFKW
TRU T H • O P I N I O N K N O W L E D G E • I D E A S A N D E X P E R T I N D U S T R Y A N A L Y S I S
5(3257
Editor
Martin H Redmayne
7KH
NO PASSION
6XSHU\DFKW
TRU T H • O P I N I O N K N O W L E D G E • I D E A S A N D E X P E R T I N D U S T R Y A N A L Y S I S
WITHOUT RISK ...
. LEAVE THE RISK TO US. 5(3257
Chairman
Martin H Redmayne
ISSUE 153 / Contents 9
Contents
22 /Home Grown Talent
Don Hoyt Gorman reports how Sunseeker’s current order book
reveals a company that’s winning business the old-fashioned way:
first to market with a desirable product that’s priced right.
48 / If It Ain’t Broke 38 / The Legacy Lives On
Royal Huisman’s 80m DART sail and power concepts have provided the
occasion to reintroduce some of the technological innovation that owes much
to the legacy of Bill Joy’s 58m ketch Ethereal. However, the systems architecture
being developed by the yard is not just conceptual: project no. 392, due for
launch later this year, integrates technologies that combine to reduce weight,
fuel consumption and emissions, and improve operational flexibility and
efficiency, while enhancing comfort in terms of noise and vibration. Justin
Ratcliffe travelled to the Dutch shipyard in Vollenhove to find out more.
In 2013 the Yachting Partners International
Group’s parent company, global shipbroker
Barry Rogliano Salles, decided to appoint one
of its own directors, Philippe Hetland Brault,
as the group’s new CEO, charged
with the prime objective of building more
bridges between the yachting world and
the commercial sector. TSR caught up with
Hetland Brault one year on to find out exactly
how the shipping DNA has taken within the
world of yachting.
THE SUPERYACHT REPORT
ISSUE 153 / Contents 11
Contents
COLUMNS REPORTS THE OWNERS’
12 / Editor’s Comment 31 / Stepping Stones & GUESTS’ ISSUE –
Rebecca Dark explores how fi nding Many owners’ love affair with CHARTERING,
the right luxury yacht to charter superyachts begins with owning DESTINATIONS,
can be a bit of a lottery, unless you a smaler yacht before making MARINAS & AGENTS
have in-depth knowledge of the steps up in size. Although these
market. ‘starter’ yachts represent an ideal 55 / Professional Service
entry point to the superyacht With a Smile
14 / We’re Our Own Worst industry, their comparatively small We’ve asked captains to share their
Enemy size means their importance in experiences of the agents they
If we are to encourage the next the scheme of things can often be have used, and here their opinions
generation of socially responsible overlooked. Ellie Brade speaks – both good and bad – about this
owners we need to educate the with some of the yards building fundamental support network are
public about the economic value of these yachts and to two owners aired openly and honestly.
our industry, says Will Mathieson. to gain insight into how owners
progress upwards through yacht 76 / Upping the Ante
16 / Little and Often size brackets. Marinas evaluate their position
While strength is returning to within the market and how they are
the larger yacht charter market, 94/ Drowning in a seeing clients’ expectations change.
Sea of ‘Yes’
competition for business is still
fi erce among the 25m to 40m The average size of yachts has 100 / A Charter Yacht in
yacht sector. Angela Audretsch increased every year, are manned Every Port(al)
i
onf vtehseti gmaaterks ehto iws ftahrein sgm. aller end bp
thyoe tl eaenrngtvieairl o clnoresmsw eosn fa tln.i fdCe opauonpsdel e tghdrr eweaaitteh tr o eWnitrhy cihnator tyearc bheting, fRore bmeacnccya t he
18 / Pushing the Boat Out a
se mafoarverms’e rnigt htotsw, aarndds stheceu orninggo ing oDfa trhke l oinodkus sattr hy oisw r ethacist ivnitga lt ose tchteo r
Aeneas Hollins, marina
effort to lower the environmental ever-changing world of digital
development business manager
impact of the maritime industry, marketing.
of Christophe Harbour, St Kitts,
have all led to something of a storm
Caribbean, discusses the rise of
surge in regulation arriving in a REGULARS
the ‘destination marina’ and the
intensifying quest for more from wave. Paul Duncan asks whether the 107 / Business News
industry will continue to make ‘yes’
the current regional offerings.
the majority answer in the face of Superyacht news and updates from
increasing regulations that dictate across the global industry. Plus
20 / Sharing the Story
‘no’? Will’s Worldwide Web, a selection
As charter agencies and captains of online offerings of interest to
are looking to add value by EVENT REVIEW the industry. For daily updates on
having interesting destinations industry news, visit SuperyachtNews.
and attractions at their fi ngertips, 112 / Reviewing the Italian com.
Kurt Fraser, sales and marketing Refi t Market
director of Camper & Nicholsons On 4 February in Viareggio, 114 / Fleet News and
Marinas, talks about the role of the a group of captains, owners’ Brokerage
‘story’ in the marketing of yachting representatives, shipyards and Up-to-date launches, deliveries
experiences. industry professionals joined and data on the global superyacht
together for the Italian Superyacht fl eet. For more information on fl eet
Forum and Superyacht Captains’ intelligence and superyacht market
Forum, in association with the data, visit SuperyachtIntelligence.com.
Yachting After Sales & Refi t
Experience (YARE). Rebecca
Curran reports on the event and
what the future holds for Italy. PLEASE VISIT WWW.THE SUPERYACHTREPORT.COM
TO COMMENT ON ANY COLUMNS AND
OPINIONS
THE SUPERYACHT REPORT
12 ISSUE 153 / Editor’s Comment
CHARTER –
A BIT OF A
LOTTERY?
hile sitting at home one Saturday, If I were the assistant to a new
Wgrasping my lottery ticket in the millionaire, to someone who had
hope that my winning numbers would worked from the ground up and so
come up, one of my flatmates turned wasn’t necessarily always interested in
to me and said, “If we win, we’re going or brought up around boats and sailing,
to go on one of those yachts you write where would I start to look? Googling
about”. After we had shaken hands, ‘yacht charter’ brings up close to two
sealing the promise that we indeed million results, and while we know that
would, I thought about how easy it people tend not to want to branch
would be for me to be able to charter a out much further than the first two
yacht. results pages, that staggering number
As superyacht journalists, my would no doubt leave you in a bit of a
colleagues and I at The Superyacht quandary. While the results bring up
Group are probably more market the trusted brokers in our industry, a
In a saturated charter savvy than, say, a newly minted Silicon few of the links are names that not even
market, Rebecca Dark Valley millionaire or, after the sale of I, having been in this industry for four
Whatsapp to Facebook, even billionaire. years, recognise. However, they have
wonders where new While some wealth grows gradually, impressive websites and, one would
clients would start sometimes wealth just happens to hope, good industry credentials, but
in finding the right people, as was the case with the how would I possibly know that as a
WhatsApp founders, college drop-out ‘newbie’ in the yachting world. Who
yacht. Jan Koum and Stanford graduate Brian would I turn to for expert advice if I
Acton, after their messaging app sold had no idea who those experts were?
for $19bn. While researching my article on
So, imagining that my new-found online charter marketing (page
wealth dream actually came true I 94) it surprised me just how much
thought about what kind of yacht information there is on the internet;
I would charter and where I would however, that information could
go. Knowing who the ‘Big Five’ possibly be inaccurate or misleading,
brokerage houses are, I would no and an attractive website, which can
doubt start there, contacting brokers easily be created, could sometimes
who I know act with integrity and who lead you down a Lewis Carroll tunnel
unequivocally know about the boats of misinformation. A site compiling all
they manage and look after. If they the listings of yachts that are available
didn’t have what I wanted, they would may be easily navigated through a
surely know where to find it. Easy! But seasoned family office or by someone
is it so easy for those who aren’t as privy who has spent several years chartering
to this fairly niche market as a journalist in our industry, knowing exactly what
on the inside, whose job it is to monitor they want. However, how would you
said market and talk to its troupes on a even begin to distinguish one 50m
daily basis? motoryacht from another if you have
THE SUPERYACHT REPORT
ISSUE 153 / Editor’s Comment 13
never dipped your toe in superyacht A seasoned charterer and owner will
waters? Would I even think to look know how brokerage works, but as a
for yachts that charter in far-fetched newcomer to the industry, with such
destinations unless my boss had large sums of money involved, I may
specifically asked for it, even though feel a little more at ease with trusting a
they may very well enjoy that kind of broker with some credentials to their
experience if they even knew it was a name.
possibility? The answer is, maybe not. The current glimmers of hope that
Perhaps, I would even go so far as to are indicating a promising first quarter
suggest a lovely break in a luxury five- for the industry could present a good
star villa, which stays put and can be opportunity to attract new clients to
booked through a company that I am the superyacht sector. This is especially
familiar with. true if the newly wealthy are from
With so much information available, the generation of millionaires who
With so much suddenly this exclusive club looks a may feel less anxious about wanting
little oversaturated, and the marketing to splurge on a truly one-of-a-kind
information available,
not always as targeted as it could be. trip away from the prying eyes of the
suddenly this Nearly two years after my colleague media, which can be a problem in the
Angela Audretsch wrote the article most well-known and ‘the place to be’
exclusive club looks
‘Selling the Sizzle Rather Than the destinations.
a little oversaturated, Steak’ (TSR issue 138, pages 74-80) While I may never be a client in the
there doesn’t seem to have been a industry, I can say that for those who
and the marketing
dramatic change in the industry’s are that the yachting industry may very
not always as targeted marketing. Equally, if a new owner well seem like an impenetrable fortress
has spent millions on building and if you’re not already familiar with its
as it could be.
outfitting a yacht, poring over every inner workings, and if chartering is the
detail, it might be easy for them to gateway for many, perhaps we need to
assume that the vessel will simply give them the keys. J
sell itself. I sat at an industry lunch
last year in which a brokerage
powerhouse noted that a brand new
owner of a substantially sized yacht TO COMMENT ON THIS ARTICLE,
would probably not be willing to pay EMAIL:
14 ISSUE 153 / Editor’s Comment
WE’RE OUR OWN
WORST ENEMY
ne of the more colourful economic impact; there seems to be a
Oconversations I’ve had this year misconception that craft of this calibre
involved a US superyacht broker, are produced via vast production lines,
who played the harbinger of doom in some modern day imagining of Ford
role fantastically well. The theme et al.
of the conversation was the plight Obviously this is ludicrous, and
of the superyacht industry, not just yet the public’s refusal to accept
in America, but globally. We didn’t yachting as a real industry abounds. As
agree on everything, but one thing journalists we come across numerous
we unerringly agreed upon was the articles in the mainstream media
industry’s abject failure to improve that wildly misreport the facts and
public perception in the wake of the attribute sensationalist statements to
global financial crisis. As economies the industry, all of them following
show signs of a sustained recovery one familiar theme: yachting and
We need to educate why, we both asked, isn’t the industry the purchase of a superyacht being
the public about the capitalising on a shift in thinking frivolous and unscrupulous pursuits.
towards wealth generation? Just off the top of my head I can recall
economic value of
The simple answer is that there is CNN’s claim that a 46m Feadship took
our industry, says no inclination to do so. Companies just 700 man-hours to build (although
Will Mathieson. seem more interested in pursuing that figure was supposed to be
short-term commercial gains than presented in a positive light), the BBC
undertaking projects that will ensure chastising the MCA for its attendance
the industry’s longevity. Granted, there at the Monaco Yacht Show or the Daily
is plenty of rhetoric and conjecture Mail’s claim that Azzam is the fastest
about working together to improve our yacht in the world.
lot, but when push comes to shove, it These articles, and countless others,
seems stakeholders would rather take a all perpetuate the idea that yachting
unilateral stance. is nothing more than the epitome of
That is not to say we are not making conspicuous consumption, benefiting
progress within our own sphere. The one blissfully unaware ultra-rich
industry has long utilised peer review individual and their guests, whilst
in the form of industry meetings, the rest of the world struggles on. It’s
debates and discussions, to identify certainly an easy way of invoking the
the processes that do and don’t work wrath of the masses and gaining a loyal
and, theoretically at least, address following.
them. However, we lack collective So who should we blame for this
foresight in our efforts to showcase problem? Well, rather than point
our multi-faceted industry to the accusatory fingers at the mainstream
wider world. Despite the thousands of media, maybe it’s time we held
small and medium-sized enterprises ourselves accountable. As an industry
whose function is to serve the we’re very quick to bemoan our lot but
superyacht supply chain or provide we’re less responsive when it comes
auxiliary services, and the thousands to prescribing a solution. There is no
of individuals employed by high- one company prepared to take the
profile shipyards, there is widespread lead by offering the outside world a
ignorance about a superyacht’s glimpse into ours. Yes, these are the
THE SUPERYACHT REPORT
ISSUE 153 / Editor’s Comment 15
personal projects of individuals, and cultural issues and it is less likely to
we are bound by our respect for be interested in associating with a
their privacy, but yards, brokers and tarnished sector.
designers hide behind a veil of ‘client If the industry wants to change how
confidentiality’, which exacerbates it’s perceived it has to stop blaming
the public’s belief that these are the everybody else and start taking
products of dirty money; secrecy, after measures to make the wider world
all, breeds suspicion. Furthermore, aware of its worth. Doing this will go a
the little men – suppliers and niche long way to eradicating the industry’s
contractors – are barred from current ‘pariah’ status. J
publicising the work they do. It is
both yards and their phantom ‘in-
house teams’ who take the credit or
nobody at all. This again contributes TO COMMENT ON THIS ARTICLE,
to the idea that a few ‘fat cat’ EMAIL:
16 ISSUE 153 / Editor’s Comment
LITTLE
AND OFTEN
versaturated: the word that I If one yacht is unbending on price,
Ohear most often in reference the likelihood is that the charterer will
to the smaller end of the charter be able to find another similar yacht
market. There are currently 1,230 with an owner who will do the deal.
active charter yachts represented on This strategy has its own risks though.
MYBA’s YachtFolio and, of those, 549 Push too hard for that deal or wait too
are between 25m and 40m. While many long and clients might lose their ideal
owners of yachts at the top end of the yacht altogether. The key must be to
fleet have slowly found themselves educate clients that there is nothing to
able to be firmer on pricing and are be gained from waiting until the last
seeing fewer last-minute bookings, the minute: if you know where you want to
smaller yachts are still struggling for be and what yacht you want, get on to
meaningful charter business. it when calendars are relatively open
It is no wonder, either. If we think of and yacht owners want to get bookings
While strength is the charter market as a pyramid, with in the bag. Deals will still be possible
the superyacht giants of the fleet at the and you will get the exact holiday you
returning to the larger
top and the smaller yachts at the base, it want.
yacht charter market, is easy to see how supply can outweigh The charter market as a whole is
competition for business demand. There simply aren’t enough still in a bit of a downward negotiation
clients out there to ensure that every spiral and this is especially true at the
is still famously fierce
25m to 40m yacht available is busy. As smaller end. We may not be seeing the
among the 25m to 40m everyone knows, when supply outweighs level of discounts that we didd a couple
yacht sector. Charter demand, the buyer calls the shots. years ago, but no client expects to pay
The abundance of yachts on the full rate anymore. This is a monster of
and travel editor Angela
market means that charter clients have our own making. The industry’s knee-
Audretsch investigates a huge choice from which to select their jerk reaction to the crisis – discounted
how the smaller end of perfect charter holiday – no bad thing. rates – means that it has now become a
But Georgina Menheneott, a charter matter of volume over value, something
the market is faring.
manager at OceanStyle, a company that can be difficult to sell to owners.
founded by brokerage giant Burgess Where once a yacht might have
to meet the demand for the 20m to been able to do a few charters at, say,
45m yacht market, admits that it has €80,000, today the owner will instead
also meant that client decision-making need to do double the number of weeks
processes have evolved. “Decisions on he or she used to, now at €40,000,
a charter will now be based as much to keep the same amount of revenue
on the yacht and location as it will be coming in. As Bob Saxon, president
on what they will get for their money,” of International Yacht Collection
she tells me. Traditionally clients (IYC), pointed out, volume of activity
would look at a selection of available often makes up for the lower pricing
yachts, choose one yacht and book the mechanisms with the smaller yachts,
charter. Now they will wait longer, take and here is where we need to educate
a broader cross-section of yachts, make owners to be commercially minded:
few offers and wait to see what the best clients will not pay what they used to
deal is. for charters and so better to have one
Today clients go in low from the €40,000 charter in the bag than no
offset because they know that they can. bookings at all.
THE SUPERYACHT REPORT