I see people asking all the time, “Which charter company should I use in the BVI?” There are several excellent charter companies and naturally folks have their favorites. I have to relate my experience with TMM. My Lagoon 42 was in TMM’s charter fleet for only 18 months. In late August 2017 my 2018 Lagoon 42, Ocean Song, was delivered to Tortola. Two weeks later Irma arrived and destroyed the boat before my wife and I ever saw her. Our insurance (arranged by Barney Crook, TMM’s managing partner) paid us 100%, no deductible (yes, you read that correctly, no deductible for a named storm) within 45 days. At the 2017 Annapolis Boat Show in October, we ordered our 2019 Lagoon 42, also named Ocean Song. She was TMM’s featured boat at the 2018 Annapolis Boat Show. She did fantastic in charter. Then COVID-19 came along. Although we had hoped to keep her in charter for 3 years, we pulled her out at the end of December 2020. Barney was great in helping us and did not try to hold us to our original 3-year agreement.

My wife and I moved aboard in December, 2022. Between the time we took her out of charter and now we have done extensive upgrades, totaling well over $125,000 - converting a cabin into a workshop with storage, water maker, solar, lithium, etc. Virtually everyone who has worked on our boat has marveled at her condition and been impressed with the various upgrades TMM did while she was in charter. The comments were always that they had never seen a boat upgraded by a charter company to the standards of our boat. When I needed a wiring schematic for the solar and lithium upgrade (TMM had done many electrical upgrades) Barney had it to me in less than 24 hours. When we brought Ocean Song back to the BVI a few weeks ago I asked Barney if he could provide a statement that our boat was no longer a charter boat for BVI Customs. A few hours later Barney had emailed the statement to me.

When I asked for the statement I mentioned to Barney that we had recently experienced some cliches with our chart plotter. I also asked if there was a technician in the BVI Barney would recommend. He said “call Tim (Tim Parsons, Operations Manager at TMM) he might be able to help you troubleshoot it”. I called Tim and he did help me fix the issues. Then I asked Tim for local recommendations for a couple of needed boat projects that were above my pay grade. Tim said they were super-busy with charters, but if I could carve out a day or two I could bring the boat into TMM and they would help me. I asked, “are you sure?” Tim: “yes, bring Ocean Song in, we will make time for you”. Today Tim and two other TMM staff members spent 7 hours on Ocean Song. Tomorrow they will be at it again. Oh, and along the way they spliced 7 new dock and mooring lines for us. All the while with charters coming and going out of Road Reef. Wow! Just Wow! I never dreamed that TMM would offer to do the work themselves. I know it will be done right!

We were only in charter for 18 months with TMM, but they treat us as if we were with them for 18 years! Anytime over the last 3 years that I call, text, or email Barney or anyone at TMM with a question, I get an almost immediate response. TMM maintains their fleet to a standard unequaled by virtually any other charter company in the BVI. They have gone out of their way to assist us in anyway needed over the last 3 years. I doubt any other charter company would do what TMM is doing for us at this very moment.

Bottom Line: TMM Yacht Charters is simply THE BEST.

TMM is indeed wonderful.

I have to make a decision on my next charter boat in about 12-months. Can you tell us how the boat performed financially relative to the prospectus and your expectations?

Hi George. My experience with TMM is now very old but, as I've probably told you previously, my bookings and revenue were very good. We were with TMM for almost 6 years and at the end of that time I had enough in the bank from charters that I could probably have sold the boat and bought a new one without adding any additional funds. I didn't do that but put the money into upgrading and refitting Jeannius which was probably the wrong decision but that's another story.

I put down my success to having a pretty unique boat in charter, TMM's great approval rating and my own efforts at marketing, particularly as a sponsor here on TTOL. I don't think there was another Privilege in bareboat charter in the Caribbean until one of Jeannius's charterers bought an identical boat and placed it with TMM. I didn't have the same experience as Oceansong whereby the boat was in great condition but it was mainly damage to the acres of interior woodwork getting damaged by careless charterers. My one criticism of TMM at the time was they almost never made the charterer pay from the deposit for damage that they caused - unless it was something obvious like running up on a reef.

In conclusion, another thumbs-up for TMM.

Without getting into specific numbers, I can say our net income from TMM was better than our original projections. In 18 months we banked almost 14% of Ocean Song’s original purchase price. We always planned to move aboard after 3 years. We knew the boat would require significant upgrades to be the type of liveaboard we wanted. Had she remained in charter for the full 3-year period and earned revenue at the same rate, we would have been able to pay for all our upgrades with significant cash left over. That was the “master plan”, but COVID threw us a monkey wrench.

Happy to discuss our experience privately. It has been overwhelmingly positive.

Like everyone else, I have had a positive experience with TWT in the TMM fleet - even did better than I expected to during CoVid! More than happy to discuss the experience privately - Don has send a number of prospective owners my way to talk experiences and specifics. It has been a great having a boat in the TMM fleet!

Keep Smiling!!!

Peter, love TWT’s logo! She is tied up directly in front of us on the bulkhead at TMM.

Thanks!

Jim,

Great to hear that TMM was able to help you and OceanSong recently. The base staff and operations at TMM are fantastic. My experience as a charterer and owner have been excellent.

See you soon.

GeorgeC1

I have been with TMM since purchasing my first Lagoon 42 (2016 model) at the Annapolis Boat Show in 2015. Sea Tiger entered the fleet and was doing better than projected until Irma. I had projected off seasons for typical hurricanes, but no one I know of projected the effects of Irma.

Unlike Jim, my boat survived Irma(with damage) and with assistance of TMM, was repaired fully in Florida before returning to BVI 7 months later, but the high season was already lost for all charters as there was little demand due to the devastation. My bookings increased and were doing better than anticipated, when COVID hit.... Irma was bad, COVID was worse!

My wife and I had already decided to order a Lagoon 46 (Sea Tiger 2) with another couple, and thus we sold SeaTiger 1 to a family who were planning on live aboard cruising.This was still in COVID.

So financially, Sea Tiger 1 was to say the least, worse than any pro forma I had considered.

Our Lagoon 46(2022 model) was at the Annapolis Boat Show, serving as TMM Charters display, and entered charter service immediately after the show. The bookings have been extremely strong, with my partner and I having a separate networks of friends who enjoy chartering, and thus charter "Direct from owner" which is part of TMM's business model. How will everything look financially at the end of 5 years? Barring another Irma or COVID event, the biggest determinant is the value of the boat upon exit. The well maintained boats of charter companies like TMM are most desired in the secondary market, but the market does have ups and downs which are hard to predict.

When comparing the various business models, one has to understand that if a particular company is stating that "we will cover all upkeep" then one must realize that cosmetic repairs and expensive repairs as boat nears end of contract will likely be deferred as all of this comes out of the company's profit. When Sea Tiger has a chip in gelcoat, TMM will repair it to the highest standards, as there is no financial dis-incentive to not do so (TMM charges the boat owner for the repairs. Their charges are fair). This keeps the boats in great condition during the 5 years, including at the end when owner either sells, or sails away.

Whether or not the charter is booked by TMM, a broker, or owner, the base staff is there for full support. Resume's are reviewed upon reserving and experience is required(some companies seem to require no experience as long as a credit card is on file). Personalized boat orientation, and a skipper check out. I hear nothing but great reviews of the superior support that charterers receive.

As owners we feel we are part of the TMM Family. We know most of the staff and details of their personal lives such as marriages and babies. Not infrequently, we will see staff on the islands or at boat shows, and we recognize each other and call each other by name, as we are indeed part of the TMM family.

When I heard TMM had invited Jim and Linda to bring Ocean Song in for repairs (vs giving recommendations), this re-confirmed what a great choice I had made by going with TMM.

Feel free to call, text or email.

Wes

Thanks for the post Wes and other TMM owners who replied. I have been with 3 companies where I operated under shared revenue programs. None of them did well and one did particularly poorly despite charting more weeks than their pro forma was based on. In fact over 4 years I saw 9% of the gross and they assured me I would see 25 to 30%. This makes me a bit gun shy in looking for my next boat. TMM has however seemed to be the one shared revenue company that has met owners expectations. I know of horror stories from many different companies in the BVI. I have yet to hear one from a TMM owner.
My other option is to move my current boat to a secondary company since from a financial standpoint it has done very well and the note will be minimal at the end of the contract. The problem with the purchase of a new boat is the current boat costs combined with interest rates don’t seem to support ownership over renting or retaining the current boat. Used charter boats as you mention are a big variable in ownership and at the moment values are dropping rapidly. The good part of that however is new charter boat sales have been horrid and I expect to start seeing new boat pricing becoming more competitive. I have about 9 months before I need to commit to something. Perhaps the markets will shake out a bit more to provide some clarity.
G

George, is it an either/or? Could you put your boat with a secondary company, pay off the note in a year or two, and then decide to sell it and buy a new boat if the numbers look better?

Ahoy Captains,

A Very Perceptive Question by Ms. R. to Capt. George. What is the Exit Strategy?
So if 50%? of the Yacht Owners who lost their yacht in Cat 5 Irma then doubled down and purchased a new yacht in ‘17/’18/’19, and now those yachts are starting to ‘Retire’, and the Owners are going from no Payments to Annual Payments of 7% plus Principal (on a Yacht worth 60/70 cents on the $) so $50K, plus Dockage of $20K, plus Insurance of $20K, plus Parts & Labor, then what?
Where can You find a Charter co with a 20 Year history, in a region like the BVI that can generate enough sales volume, and most Important, can get Insurance 365 (with access to a certified H Hole) and coverage for Bareboat and Crewed and Private charters?
And if the Yacht Owner wants to either Move Up or Move Out, where will You find a Buyer who can find those same conditions.
And no exposure to FATCA or FBAR or TIEAs?

A very old Friend of mine, Mike O'Brien, the most Irish person you would every have the Luck to meet, always used to back into parking spaces.

I Need More Quality Cats for Chartering !
Fair Winds, Brent
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