NATCHEZ ON THE WATERFRONT

Bigger boats – bigger challenges and opportunities

By Dan Natchez*

For years, I’ve been saying that people want to go boating to get away from it all, but want to bring it all with them. It is even truer today. Not only are boats getting longer, wider and deeper in draft, but they are also being outfitted with every imaginable creature comfort – from electronic devices to full-fledged bathrooms (not sure we can call them heads any more), with marble tile and gold fixtures, and many with tubs as opposed to tight curtained showers. We are told that there is more wiring in a 40 ft (12 m) yacht than in the average threebedroom house.

Roughly 25 years ago, the sweet spot in recreational boats was typically in the 28 ft (8.5 m) to 35 ft (10.7 m) boat length, while today it appears to be more in the 40-50 ft (12-15 m) boat length. In the same time period, on landlocked lakes with deep water, a boat of 40 ft (12 m) or above was considered extraordinary – today, boats over 50 ft (15 m) are no longer an oddity.

It is also true that the number of megayachts and superyachts in the world, while still a relatively small number compared to the overall total of boats, has increased more than most might have thought possible.

There is no question that the larger boats, whether they are from 40 ft (12 m) to over 500 ft (152 m), draw in other boaters, as well as the public in general. This interest, together with the support and services the bigger boats require, can translate into higher revenue streams from raising berth rental fees, to sales of fuel and other profit centres, including chandlery, food service, etc. Keep in mind, though, that the approach taken must be cost-effective.

As boat sizes have changed, the costs of the boats have gone up tremendously and both the demographics and types of boaters have changed dramatically, with there being more boat owners who are more demanding, have higher expectations and have less overall boating knowledge and experience. All of these developments present significant opportunities and challenges to marinas.

As the demographics of boaters are changing, so is the economic capacity of the boat- buying public. With the higher disposable income needed to purchase the boats of today (and tomorrow) often comes the ability to pay higher fees to the marina for berthing and other services. We have found that boaters are willing to pay higher than traditional rates if they perceive value for what they are paying. Like the wide range of pricing from the five star down to the one and two star hotel, or from the top of the line luxury automobile down to the economy models, there are opportunities at all levels of marinas and sizes of boats depending upon what is offered and, more importantly, what the customer perceives as the value of what is being offered.

The more expensive and larger the boat, the more customers tend to be concerned about that value and the more the initial expense for the marina to provide the upscale facility for the upscale boats. Unfortunately, the industry, with some notable exceptions, has long suffered from undercharging for its services. One such exception is a marina chain that took a different approach and typically has charged around 20% above the surrounding market. Noted for their exceptional customer service and high quality

As the demographics of boaters are changing, so is the economic capacity of the boat- buying public. With the higher disposable income needed to purchase the boats of today (and tomorrow) often comes the ability to pay higher fees to the marina for berthing and other services.

The private, 22-berth Sunrise Harbor Marina in Fort Lauderdale, Florida, can accommodate yachts of up to 200 ft.

and attractive physical plant, not only were they able to build up their customer loyalty, but they became perceived by customers and noncustomers as the premier marinas in their respective areas. Even when the market was down, the pricing differential could be maintained and the marinas were full while there were high vacancy rates in other lower- priced marinas.

Potential issues

When accommodating larger boats is considered, it is advisable to give some meaningful thought to what size boats one is seeking to have at the facility and what are the attributes, as well as potential issues associated with the sizes being contemplated.

The one thing my crystal ball says for sure is that the situation will continue to change over time. Building in flexibility to the extent possible is always desirable and, in more cases than not, it requires thinking outside the box. For existing facilities one might think about a master plan that can be implemented over time, with changes occurring in the ‘off’ season, minimising potential disruptions and helping to spread out the cash flow expenditures while maximising the cash flow income. Depending upon the site’s physical location and usable in-water areas, this could include such approaches for accommodating larger boats as: repositioning floating breakwaters in a way to allow more room for berthing of larger boats; designing floating wave attenuators to also serve as berthing opportunities; using the area’s main navigation channel as the turning areas for the larger boats (e.g., externalising the big boat fairways as much as possible); or having a long main pier without fingers to allow for continual mixing of different-sized larger boats.

A project that comes to mind involves the design for a new facility where rock breakwaters were required. By widening the area between the breakwaters, the facility could increase the size of boats from a maximum of 120 feet (36.5 m) to 328 feet (100 m). While widening the area between the breakwaters was adding cost, the increase in the size of boats provided a potentially significant economic, as well a marketing advantage, while in this case also being easier to build. In another facility, the original concept was a traditional marina layout with main pontoons and finger piers. However, in analysing the market, it was clear the marina would be a significant calling card for transient boats visiting a major metropolitan city. It became apparent that the size of boat that would be coming to the facility would continue to vary – so long mains without fingers were seized upon for the berthing of the continually-changing mix of boats

that range from 40 ft to megayachts and superyachts.

In thinking through how to capture a particular share of a market, water depths become one of the most important factors in deciding what aspect of the market one wishes to attract. Those facilities that have naturally deep water 8 ft (2.4 m) to 20 ft (6 m) or deeper have more options as to what size boats they may wish to accommodate than other facilities with shallower water depths. If one does not have naturally deep water depths, then one has to either dredge, which is extremely regulated, costly and with other potential challenges or shift focus to go after the market that can be accommodated by the shallow depths – perhaps the growing catamaran segment! In determining the navigable water depths, one should be sure to keep in mind the water depths at dead low tides (or expected low water elevations if in a non-tidal area), in addition to the average low water levels typically used for reporting water depths. You do not want those big expensive boats stuck in the mud or ripping open their hulls on a rock while in your marina.

Also keep in mind that deeper water and bigger boats make for more challenging berthing facility anchoring requirements – securing a floating dock for a 200 ft (61 m) yacht in 20 ft (6 m) of water (at low tide) is vastly different than a 35 ft (10.7 m) boat in 6 ft (1.8 m) of water!

Other issues that need to be considered are utilities, including electricity, water, pump-out, fuel and WiFi. As the boats get larger the electrical needs and the costs go up exponentially. Water availability with meaningful pressure is also important. What goes in also comes back out, so relying on a 55 gallon drum for pump-out isn’t going to cut it – and if your fixed pump-out station does not have deep enough water access, that also will not work.

Similar issues may apply to your fuel dock or your harbour’s fuel dock if you don’t have one. Is there sufficient water depth? Can you supply and pump fuel quickly enough?

Next to consider is WiFi. About the single largest complaint from boaters around the world today is the quality of the WiFi in the marina. The large open spaces, various heights of boats, as well as the numerous devices create a real challenge for meaningful WiFi, which in most cases can be solved, but it is not inexpensive and the ever-changing technology is a real factor in configuration planning. The bigger boats, with their mass and all their internal systems, can be quite effective at blocking the signal. It’s not too uncommon for a big boat with its bow or stern directly facing the WiFi antennae to have great signal at the antennae end of the boat and no signal at the other!

If you provide service or ‘off’ season upland storage, do you have a way of getting the bigger and heavier boats in and out of the water? This can also be a challenge if you’re hauling catamarans. Balancing service (if it is supplied) and the types of boats in the facility becomes a significant cost-benefit art.

Now redesigned to improve access for superyachts.

Analyse the site

The true challenge is to really analyse the site’s attributes and limitations, as well as the various revenue streams and costs associated with any contemplated reconfiguration of the facility. In areas that have shallow depths and/or navigation challenges, they might be better served with smaller boats and personal watercraft, including kayaks and paddle boards (the fastest growing segment of the recreational boating industry).

It’s worth remembering that in developed countries the overwhelming majority of facilities have simply expanded over time without any real planning and now are well over 30, 40 or even 50 years old, often with little substantive improvements. As a result, the physical plants are, in many cases, well beyond their useful lives and in most cases are suffering from deferred maintenance. In more cases than not, they do not comply with current codes, particularly with respect to electricity, fueling and disabled access. The good news is that as one undertakes the upgrading of a facility, one

Bahia Mar Marina, also in Fort Lauderdale, can handle vessels of up to 300 ft along its 3,000 ft parallel dock. has the opportunity to raise pricing – typically, even more so if you can include extra big boats. Communicated in a meaningful manner, the boating customers will perceive desirable value and, while not ecstatic about increased pricing, will pay the higher rates. The improved facilities will also attract new boaters, who also perceive the value of what is being offered. I realise some of the points raised above, particularly regarding the challenges, may seem a bit obvious, but you might be surprised just how often they seem to get overlooked. Accommodating bigger boats at your facility may not be quite as simple or straightforward as one might first think, but the trend towards bigger boats has continued and there certainly can be many rewards for those facilities that can reasonably plan and do it in a meaningful and cost-effective manner! At the same time, if you can’t reasonably do it – don’t, but always strive to provide what your customers are looking for and don’t be too shy about charging them for it!

*Dan Natchez is President of Daniel S. Natchez and Associates Inc, a leading international environmental waterfront design consulting company specialising in the design of marinas and marina resorts throughout the world. Your comments and enquiries are invited on Tel: +1 914 698 5678, by Fax: +1 914 698 7321, by E-mail: dan.n@ dsnainc.com or on his Website: www.dsnainc.com