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DJ Parker Discusses the 2012 Charter Market
President of Neptune Group Yachting, DJ Parker, was recently appointed the President of the American Charter Yacht Association (ACYA); an international body of charter experts who are recognized worldwide for their experience, knowledge and professionalism.
What are your plans for the American Charter Yacht Association (ACYA) after entering as President?
“My goal is to encourage our members to seek out and share more industry information. The charter industry is becoming ever more global and the world ever more complex not only by the challenges of a pulsating global economy, but also, changing politics that often affect our industry. By being informed, we are provided with the ammunition to focus on our business of “bringing fun down to earth” and thus earning a better livelihood for each.”
How does the ACYA affect the charter market?
“Although the American Charter Yacht Association, the AYCA charter brokers are recognized worldwide for their professional knowledge and acumen, their high ethical standards and their sound business practices. We also hold the highest standards of any charter association for membership with a requisite 7 consecutive years to be accepted as a voting member.”
What is the current state of the charter market going into 2012?
“Personally, I am very excited about the prospects of charter for 2012 as are others with whom I have discussed this subject. Still nothing should be left to chance. Last year seemed to be the turning point and this year is off to a very strong beginning from very large and smaller yachts. Two apparent observations are that we have to negotiate more than ever these days and second; in the smaller yacht category, there are more one-to-five day charters in lieu of weekly. At least they are booking!
A lot of companies have merged, been acquired, or spun off to form new companies … all creating more assertive sales forces. On the American 'front', a 'new' boat show is evolving in Newport, Rhode Island. Mr. Tom DeLotto of Newport Harbor Corp. is in high gear marketing in anticipation of attracting more and larger yachts from the international scene for the show scheduled for June 18-22. Catering to charter-yacht brokers and agents, the show is being billed as the ‘largest show of its kind on the East Coast (US) and the only one in New England’.”
Has there been a change in how many weeks brokers are promising yacht owners over 2012?
“Well there’s such a degree of optimism at the moment, however, you always have to ‘err on the cautious side’. That being said, Antigua in 2010 was full of very large yachts averaging overall to 124’ and had even more large yachts there this past December. I feel the ball has started rolling with very positive sales thus far and will keep rolling over 2012.”
Is there a distinct correlation between the charter weeks promised by a broker and the size of the yacht?
“I believe it is safe to say these days that in spite of the economy, the upper-income folks still charter ever larger yachts from 150’ and up and it is less important to these owners how many charters materialize. That being said, brokers are goal-oriented by nature and I believe once a number is mentioned, brokers strive to meet that goal.”
The charter industry is evidently weathering the storm, but do you believe that the success of each yacht comes from the ability to provide a different experience for the charter guest? e.g. Big Fish’s unique approach in comparison to other established charter yachts.
“Ownership is not about making money but the pride of ownership, the independence of nature…you are the ‘king of your kingdom’. As such many owners are content to return to familiar cruising grounds like St. Barths, St. Maarten, Antigua, the south of France, etc. However, there a growing desire for both owners and charters to seek out and explore new and exciting new locations such as the South Pacific, Southeast Asia, Chile, etc. More yachts than ever are being built to meet this demand by owners and charterers.”
How do you see the charter industry changing over 2012?
“I am encouraged by industry 'shakers' such as Mr. DeLotto and his group in Rhode Island to create new business and many other new business owners investing in their passion. On the other hand, there forces such as the new Italian 'berthing' taxes and governmental strife of otherwise favourite cruising grounds that promise to redirect charter business elsewhere such as to Turkey and Croatia.”
"Last year seemed to be the turning point and this year is off to a very strong beginning from very large and smaller yachts. Two apparent observations are that we have to negotiate more than ever these days and second; in the smaller yacht category, there are more one-to-five day charters in lieu of weekly. At least they are booking!"