The lockdown in large parts of Europe has the charter industry firmly in its grip. Customers are fearing for their trips, some of which have already been booked and paid for, while fleet operators are fighting for their existence in the face of increasingly long lockdowns and the corresponding loss of income. Many customers do not realise what their legal situation is with regard to a contract that has already been concluded. Additional confusion is caused by countries such as Italy and France going it alone. The governments there have now overturned the EU-wide travel law and decided on voucher solutions instead of refunding the money. In Germany, too, the government now wants to make this possible and has submitted a corresponding proposal to the EU, which is due to be decided soon.
But many charter customers don't realise this: Most bookings do not fall under travel law, but under rental law, at least when a normal bareboat charter is booked. In this case, the charter agency is only an intermediary and not a tour operator; the fleet operator is a lessor. Nevertheless, companies in Italy and France are invoking these solutions from their governments and offering charter customers only a voucher solution instead of a refund, usually until the 2021 season.
Until now, German lawyers have interpreted the situation in which a charter was prevented due to entry restrictions in the destination country or Germany as making it impossible to fulfil the contract and therefore the money paid should generally be refunded. At least that was the experience of the law firm von der Mosel Ben Tanis, which represents various such cases. This has changed to some extent. The lawyers' experience shows that fleet operators sometimes stubbornly cling to voucher solutions.
Flight cancellations are difficult to predict
Then there is the problem of flights. Many airports are currently only handling around 10 to 20 per cent of normal traffic. Many charter customers therefore do not know whether their flight will even take place at the planned date and destination.
"In our experience, airlines often cancel flights at very short notice, sometimes just a few days before the charter," says Claudia Spenges-Kleutges from the Sarres-Schockemöhle agency. You get the feeling that many people are basically scrambling from week to week to perhaps still be able to fly at short notice if the travel restrictions are eased" - naturally an extremely unsatisfactory solution for customers who are then unable to get to their charter yacht at short notice. Airlines also often try to offer customers a voucher solution instead of a refund. In their experience, many airlines are currently almost impossible to reach by telephone, and agencies and customers are well advised to make their enquiries in writing.
When does the season start and where?
So the most pressing question for charter crews at the moment is: which trips should I try to postpone or even cancel? Without question, customers in Germany have the best cards at the moment.
"We have been told by the state of Schleswig-Holstein that the port closures will be relaxed after 3 May. Whether charter crews will be allowed to start by then is of course not yet entirely clear, but we hope that it will work out by Whitsun. Then our fleet will be fully booked," says Dirk Kadach from 1st Class Yachts. The people of Heiligenhafen are already making provisions: They have stockpiled huge supplies of disinfectant and protective masks to be able to handle yacht handovers on the jetties in accordance with stricter regulations if necessary." Kadach is certain: "We are very likely to be the first area in Europe that can start up again." He takes a much more critical view of the company's locations in Croatia and Palma, but is expecting the season to start after the peak season.
The situation in the Mediterranean is much worse.France has extended its lockdown until 15 May,Spain until 11 May,Italy for the time being until 3 May. AfterCroatia German tourists are currently practically unable to travel at all, as they have to go into quarantine at a fixed address on land for 14 days after crossing the border. It is very likely that unrestricted tourism will continue to apply well after these key dates for the curfews. The easing of curfews should not be confused with an immediate liberalisation of tourism.
The Swedish fleet operator reportsNavigare Yachtingtold YACHT that, in consultation with the local authorities, longer deadlines are already being set for tourism, but that these are constantly being postponed. According to the Swedes, this deadline in Croatia andGreece currently on 18 May, for Spain already on 19 June.
How fleet operators are reacting
Some fleet operators are already reacting accordingly.Sunsail and Moorings all charter trips until 1 June have generally cancelled and offer vouchers. Many other companies react on a weekly basis or even more flexibly. They are currently rebooking customers, especially with departures for May, in response to customer enquiries. General cancellations or constantly updated deadlines are the exception rather than the rule. Similar to the airlines, the companies are waiting and will open their bases as soon as the restrictions are eased.
Dream Yacht Charter,currently the largest charter provider worldwide, offers extensive Rebooking options. Anyone who has booked by 16 May can postpone to this or next year. Anyone who has booked later can also postpone, but will have to pay the expected price increase for next year for bookings in 2021. If the charter week is more expensive than the current one, for example because it is in the high season, the additional price must be paid.
The Swedish company, which is also active worldwideNavigare Yachtingalso tries to favour the rebooking solution, but will refund the charter in individual cases if there is an explicit travel warning for the country in question. This is currently the case in Germany for all countries worldwide until 3 May.
So far, many agents have reported that the affected customers are reacting very calmly and also understand the difficult situation of the fleet operators. After all, the latter have to bear the costs of the fleets, pay for berths, carry out maintenance, provide insurance and try to keep their employees. All of this becomes difficult if customers want their money back immediately. The efforts to persuade customers to rebook are therefore more than understandable, and customers should try to find a solution in dialogue - after all, this is an emergency situation of the century. When asked by YACHT, some agents put the number of customers insisting on a refund at only around 5 per cent, which gives hope. Some law firms report that those who absolutely need the fastest possible reimbursement of a cancelled charter for economic reasons will apparently find a solution more quickly with a lawyer.
However, most sailors are still rebooking, increasingly for next year, because their employers cannot simply postpone their holidays or it is foreseeable that their company will try to make up for losses by working more hours after the crisis. So even after the easing of travel restrictions, the charter industry will face tough times until the end of the year, and the market will certainly only pick up slowly.
Andreas Fritsch
Editor Travel
