We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is Yacht Sharing?

By Theresa Miles
Updated: May 17, 2024
Views: 6,109
Share

Yacht sharing is a system of group ownership or use of a boat or fleet of boats. The system is based on the vacation property timeshare model that has achieved popularity with consumers and stability as an industry since the concept was introduced in the 1980s. Boat sharing companies began to proliferate in the mid-2000s, and though the timesharing concept is familiar, the implementation sometimes differs from the vacation property model.

Owning a yacht is an expensive endeavor. Not only does the owner absorb the cost of the boat, which can easily be as expensive as buying a house, he has to contend with significant ongoing expenses. The boating industry identified a trend where a person would buy a boat only to sell it within three years as he realized the costs to maintain it far outstripped actual use. To combat this, the industry developed new modes of boat ownership that maximized enjoyment and minimized carrying costs.

There are two popular types of yacht sharing models. In one model, a group of people buy memberships in a boat company and share use of the company's fleet. Members are entitled to a certain number of days per year using any of the company's boats. The company typically has locations in multiple places and various boat models for the member to choose from.

Members make reservations to use allotted days in advance and in any convenient grouping. For example, if a member has an allotment of 28 days a year, he might reserve any available boat at a particular location in three day increments. The cost of the membership covers a proportional share of boat acquisition and maintenance for one flat fee that is renewable annually. In this yacht sharing model, the member has usage rights rather than an ownership interest in a boat.

In the second yacht sharing model, a group of individuals set up a company to buy a boat. Each individual is allocated a percentage ownership interest in the company. The cost to buy into the company is the individual's proportional share of the initial purchase price of the boat plus maintenance and crew costs. Use of the boat is governed by an ownership agreement that typically allocates a certain number of weeks to each owner.

There are advantages and disadvantages to this type of yacht sharing model. The owner only has one boat to choose from, unlike the membership model. There is also a greater potential for problems with such a small group of owners. The owner has an actual equity interest in the boat in the single-boat model, however. Typically, the company is designed to sell the boat and dissolve the partnership after five years, recouping some of the initial investment and freeing the owners to upgrade into a different yacht sharing agreement with a new boat.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wisegeek.net/what-is-yacht-sharing.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.