Fractional Ownership Of Yacht - Now Also In India

Remember our post on fractional ownership – ie multiple people owning a single yacht. Well that seems to have already started in India.

Aquamarine who are agents for the Princess yacht Co seem to be the first few to start this trend. According to Mr Vishal Chaudhry, Director, Aquamarine Leisure, “We are witnessing a lot of interest for shared ownership of yachts from first-time customers.”
Aquamarine Leisure, the exclusive distributor of Princess Yachts in India, has in the past one year already booked four for single ownership, with prices ranging from £2,80,000 to £5,80,000, 35 per cent duty extra.


Club Privada, which launched the time share concept a few months ago, already has 48 members, said Yachting Association of India Joint Secretary General, Commodore Ajay Narang. The costs for renting out these yachts could be could be as low as Rs 16 lakh for 13 days usage per annum for three years. That comes up to an approx Rs41,000 per day for 39 days.

We believe that yachting events have played an important part in generating sales. Also it’s the purchasing power along with the will to spend has risen in the past few years.
The Mumbai Boat show and the upcoming Volvo race are good examples of events that would help in bring about the change in mindset of people who can look at yachts as the next luxury destination.

Now comes the problem –

Although the idea sounds great is an inexpensive method to get the feel of sailing, there are also many problems that come with shared or fractional ownership.
Occasion – this I believe could be the most common downfall factor for shared ownership. An occasion like Diwali or New Year is the perfect time to take your family out to sail in your yacht but the availability factor would be a problem

In our exclusive chat with Mr Gautama Dutta – Director of Marine Solutions who is personally not the biggest fan of shared ownership is not too positive about this concept in India. According to his experience, he has seen many such popular international companies go bust as it’s not lucrative to pursue this business.

To read more about shared/fractional ownership click here

Fraction of a Boat? Consumers Invest in Assets, Transumers Invest in Experiences !

Wealthy people today do not only invest in assets- but in experiences. Experience is becoming more important than ownership. ‘Fractional ownership’ is a shared-ownership structure that allows people to buy only part of a costly item. Today there are many ways to have a fractional lifestyle. One such service, www.bagborroworsteal.com, sells the use of a revolving array of designer handbags and jewelry that can cost thousands to own but $20 to $175 a month to use. Buyavineyard.co.uk sells partial titles to some French vineyards; and several luxury hotel companies, including Ritz-Carlton and the Four Seasons, offer fractional ownership of some properties they own or manage around the world.

Transumers are consumers driven by experiences instead of the 'fixed'. They are those persons driven by entertainment, by discovery, by fighting boredom, who increasingly live a transient lifestyle, freeing themselves from the hassles of permanent ownership and possessions. The fixed is replaced by an obsession with the here and now, an ever-shorter satisfaction span, and a lust to collect as many experiences and stories as possible. The past is, well, over, and the future is uncertain, so all that remains is the present, living for the 'now'.
Why agonizingly wait for years (or even forever) to save up your hard earned cash to purchase the latest boat you've always promised yourself when you can have access, based around fractional ownership. Being part of a fractional boating club is growing in popularity not just because members can get on the water on some truly special boats , but membership gives you the lifestyle and exclusivity usually reserved for the privileged few.

Partnerships in luxury assets are not always smooth sailing. If you are already in a partnership that's been loosely managed, chances are its been a rocky road. Some of the problems heard of include:

• Diverging budgetary preferences
• Competition for planning & management control
• Simplistic and inflexible scheduling agreements
• Differences in willingness to do maintenance
• Poor asset care and use
• Lack of communication between owners
• Improperly managed expenditures

Thus to conclude, you are seeing it in recreational vehicles, soon you’ll also see it in helicopters. Just about every luxury asset you can think of can and will be fractionalized.