Cruise Ship Charters Q&A

Cruise Ship Charter
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Cruise Ship Charter - Q&A

Why charter a cruise ship? Is a cruise ship charter right for my company or family? When do I need to start the cruise ship charter process? What services does Deluxe Voyages provide, with regards to a cruise ship charter? How long are typical cruise ship charters? What does a cruise ship charter cost? When do I have to pay for the cruise ship charter? What is the sequence of the charter process? What about Deluxe Voyages’ service fee? Should I shop for the best charter proposal?

	Q: Why charter a cruise ship? A: A cruise ship charter is a luxurious, self-contained environment that can help motivate and pamper your customers or employees. It can increase sales and productivity, boost moral and instill an Esprit d’Corps among the group. A cruise ship charter can also be used for a management retreat or for the launch of a new product. Even family reunions or private celebrations have made use of a cruise ship charter. The possibilities are endless. An all-inclusive charter contract allows for tight cost control. Where else can you combine luxurious surroundings, fine dining, pampering service with a new and exciting port of call, every day. Q: Is a cruise ship charter right for my company or family? A: Charters work best for planners who feel confident about attendee numbers, and have the budget for it. For those who do, it is the ultimate travel experience. With a cruise ship charter you “own” the ship, as you have paid for it, upfront. A later reduction in attendee numbers will not lead to a refund. If you are uncertain about your actual group size, we recommend to do a group cruise or a partial ship charter. Q: When do I need to start the cruise ship charter process? A: As soon as possible! Most cruise lines plan their schedules and itineraries one to two years ahead of their sailings. Cruise ship charters are usually contracted 18-24 months in advance. For popular events, like the Grand Prix in Monte Carlo, you will have to start the charter process 3-4 years in advance. Please remember, that part of the charter cost (for the cruise line) is the compensation of already booked guests. The earlier you charter a ship, the lower your cost will be! Q: What services does Deluxe Voyages provide, with regards to a cruise ship charter? A: At Deluxe Voyages, we are luxury cruise professionals and this is our only business. We are intimately familiar with all the ships, and we will recommend the right ship for your charter, after an extensive analysis of your needs. Due to the volume of business we do with these cruise lines, we know their operations, and have the ability to negotiate the most favorable charter agreements on behalf of our clients. After execution of the charter agreement, we will assist you in administering the charter, and are able to plan private events, parties, shore excursions, hotel packages and transfers. Q: How long are typical cruise ship charters? A: Typical cruise ship charter last 7 to 10 days, although shorter charters can be arranged, including 3 and 4 day charters.


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Q: What does a cruise ship charter cost?

A: This will depend on numerous factors. However, just to give you an idea, you will not be able to charter the smallest cruise ship (100 passengers) for under $60,000 per day.

Q: When do I have to pay for the cruise ship charter?

A: The payment arrangements normally require a 10% to 25% deposit of the total contracted amount at contract signing, along with an irrevocable letter of credit for the balance, payable to the ship owner. There will then be other payment intervals, as per charter agreement, culminating with the final payment normally 90-120 days before sailing date. Payment requirements are subject to negotiations, and are finalized with the charter agreement.

Q: What is the sequence of the charter process?

A: Each cruise ship charter is unique, but here is a general outline:

Initial consultations, with the objective to establish the parameters for the cruise ship charter
(client’s needs)
Search for the ship that meets client’s needs
Established that there is (are) ship(s) that fit client’s needs
Work out (a) written charter proposal(s) with the cruise line(s), negotiating rates, onboard amenities, taxes and other fees. Forwarding charter proposal to client, with discussion of remaining issues
Contract review and discussion
Contact execution by the client
If desired by client, ongoing administration and coordination of the cruise ship charter until departure day

Q: What about Deluxe Voyages’ service fee?

A: The amount of our service fee depends on the services we provide. Do you just need us to work on your behalf until the execution of the charter agreement, or do you also require our services afterwards. We can include our service fee in the charter amount, and be paid by the cruise line after the charter, or we can work out a net charter agreement, and receive our service fee from you directly.

Q: Should I shop for the best charter proposal?

A: No! Service fees do not vary that much between different agencies, and, compared to the actual charter cost, these differences are negligible. By the time you get to the point of requesting a written charter proposal, you should be certain that the agency you are dealing with is competent, and focused on serving your needs. Please keep in mind, that cruise lines will not issue a multitude of written charter proposals for the same client company, to different agencies. If you are going from agency to agency, in search of a better deal, always waiting for the previous charter proposal to have expired, you will loose time, and increase your charter cost (see above).


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Cruise Ship Charter - Q&A