My plan, which began almost eight years ago, was to buy the boat, place her in charter for five years, then begin the permanent transition to living on her full time.  The first two parts of that plan worked out perfectly, however the final transitional part is not moving forward.  A significant change in priorities took place two years ago and given the fact that I have just bought a house, a life at anchor sipping rum will not happen anytime soon.  The funny thing is, I am OK with it.  Just having the boat means that it is one e-mail and a call to the travel agent away.  It is amazing how far that goes in getting you through a long cold winter.

The boat is approaching its end-of-life in the charter business, and a decision will be required over the next year.  So, while I am still a very happy charter boat owner, the end of the ride is fast approaching.

Financials

We are still recovering from 9/11.  I think.   I was carrying a small negative balance on my account at the beginning of the season and the mission was to bring it back into the black.  That was largely done, due to a late two-month charter from one family.  However, once other expenses not covered under my account (insurance) were settled, it was a tiny money-losing year.

Bookings continue to be the sore point.  Last year, they were a disappointing 66.1% of target.  There were only 11 charters.  I did not used the boat at any time, so it was not a case of reduced prime bookings as a result of owner time.  There seems to be a general trend in The Grenadines away from monohulls and towards catamarans, as shown in the bookings.  A visit to any anchorage proves this point further.

Operating expenses have risen to 88.5%, not unexpected as the boat is ten years old. I continue to review every monthly statement in detail and am satisfied that prudent cost controls are implemented.  I am pleased that Barefoot has chosen to maintain the boat to the required standards instead of cutting corners in an effort to reduce costs. Surprisingly, insurance costs did not go through the roof, despite the disaster in Grenada last year with Hurricane Ivan.

At some point, shrinking revenues and increasing costs will make this venture untenable.  Profits have in the past been propped up by keeping expenses down.  The previous two years have shown that this strategy is no longer possible if you want to keep the boat in great shape.

Barefoot has suggested that we market the long-term charter concept, and develop a different financial model that might be better.  Given that the boat can no longer command top dollar on seven-to-ten-day charters, the possibility of a competitive pricing structure for one-to-two-month charters is feasible.  Reduced costs as a result of less “client handling” should make the financial model attractive.  Long-term charters on newer boats become so expensive that it does not make sense for a client to pay $20K-$30K, nor does not make sense for the owner to accept less than that.  Barefoot plans to start marketing the concept this fall.  We’ll see where that goes next spring.

Wear and Tear

This photo says it all.  

Barefoot went through a complete refurbishment last fall that included a change in colors and livery.  The results speak for themselves.  After six years with Barefoot, the boat is in better shape than the day I took possession.

Incidents and Other Perils

Last spring, a guest returned to Blue Lagoon after the Barefoot staff left for the day.  Unfamiliar with the lagoon, the skipper had a “coming together” with the sandy shallows.  Not a great way to end a perfect vacation, and I feel badly for the guests.  The boat was hauled off, hauled out, and a few very minor repairs to the keel and rudder were made.  That’s it.  Barefoot took advantage of the haul-out opportunity to perform the 2005 hull repainting.  It was such a non-event that I found out about it several weeks later.

It was another busy hurricane season, and a very unusual one at that.  An strange and very persistent mid-Atlantic high pressure area forced the Cape Verde storm systems to unprecedented low latitudes.  The Grenadines, long considered south of the hurricane swath, instead became a  hurricane highway.  Emily formed off the coast of Africa in June and stayed south of 10 degrees, despite NOAA’s repeated prediction that it would turn north.  Just like Ivan the year before, this storm stayed south and crosses the Windward Islands just south of Grenada.  Fortunately, it caused no significant damage.  The Usual Suspects remained safely on her hurricane mooring in the Blue Lagoon.  I did however, think her number as up this time!  She has been spared so many times.

www.usual-suspects-sailing.com

Readership has stabilized at approximately 500 - 600 hits per day.  I continue to receive a dozens or so e-mails each month from people planning charters in the region, as well as reports from those who had a wonderful time.

Even the quarterly updates are becoming more difficult to produce, as much of my time is absorbed elsewhere.  Given that I did not visit The Grenadines last year, I was not able to update the travel guides.  A planned December trip should result in a refresh of the materials in the spring. 

So Why Continue?

One would think that with the diminishing financial incentives, I would want to bail on this program.  Not just yet.  To understand this inconsistency, stand in front of a mirror and repeat the words “I have a boat in the Caribbean and I can go there whenever I want.”  The therapeutic value of this exercise still outweighs all financial considerations, and as long as it continues to do so, I will still be with the program.

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The End