Photo - Sailing Rest
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Sailing Rest

The Sailing Rest is a tourism business project

Russia, St. Petersburg City
Market: Tourism, sport
Stage of the project: Idea or something is already done

Date of last change: 30.04.2021
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Idea

The Sailing Rest project is a production and commercial activity aimed at making a profit through the provision of tourist services, the organization of travel on a yacht for tourists, mainly from Russia and the former Soviet Union countries, as well as the sale of related services to them.

Current Status

The project is an idea right now, but according to a market research there is a demand on the services.

Market

A significant part of rest in Turkey is made up of beach holidays, diluted with excursion tourism. It is usually package tours organized by tour operators and sold through a network of travel agencies. Over time, such tours become boring, and regular tourists begin to look for opportunities to diversify their vacation, but there is not much choice here (other countries, destinations, other hotels and regions)
Recently, there has been a tendency of tourists to organize their own recreation. This is due to the fact that with the growth of tourist experience the tourist's preferences change, one wants new experiences, wants an individual approach to the organization of recreation. And the share of such tourists is growing steadily.
The clients that the Sailing Rest project focuses on are married couples, families with children, or small friendly companies (up to 6 people). These are people with an average income, mostly having some experience in travel, both organized and independent, but at the same time, retaining a craving for new discoveries, new impressions and counting on a certain level of comfort.

Problem or Opportunity

The project, a complex organization of recreation on a sailing yacht, essentially creates a new tourist product, which, by combining beach and excursion tourism, is able to take its market share and gain popularity even among demanding tourists. A recent survey among existing and potential clients of Lenta-Tour LLC, St. Petersburg, Russia revealed a great interest in traveling on a sailing yacht. Currently, there are several requests for the organization of such a holiday.

Solution (product or service)

Holidays on a yacht, unlike the more famous sea cruises, are currently not common among Russians. The reason for this is both the unpopularity of yachting in general in Russia and the countries of the former Soviet Union, and the almost complete absence of such tourist services on the market. At the same time, a small one-two-week trip on a comfortable yacht combines elements of beach, cultural, gastronomic, as well as sports (yachting, fishing, water sports) recreation, and allows you to discover seemingly well-known countries, such as Turkey, Greece, on a completely different side, from the side of the sea. Indeed, it is very difficult, and often impossible, to get to many of the most beautiful places, bays, with clear water and stunning views, during independent travels, and even more so for package tours.

Competitors

After a long search in open sources and among the players of the tourist market, only a few proposals for traveling on a yacht were found, mostly of a private nature. The activities of numerous charter companies can hardly be attributed to a competing one because it still involves the independent rental and use of yachts with many formalities (ranging from the need to have various documents, and ending with financial responsibility for compliance with the lease terms and the integrity of the yacht and equipment) and also affects only the yacht rental itself: flights, transfers, accommodation in in hotels, tourists have to plan on their own. As for the sale of such a travel service it is not at all carried out by numerous tour operators and travel agencies.

Advantages or differentiators

Holidays on a yacht, unlike the more famous sea cruises, are currently not common among Russians. The reason for this is both the unpopularity of yachting in general in Russia and the countries of the former Soviet Union, and the almost complete absence of such tourist services on the market. At the same time, a small one-two-week trip on a comfortable yacht combines elements of beach, cultural, gastronomic, as well as sports (yachting, fishing, water sports) recreation, and allows you to discover seemingly well-known countries, such as Turkey, Greece, on a completely different side, from the side of the sea. Indeed, it is very difficult, and often impossible, to get to many of the most beautiful places, bays, with clear water and stunning views, during independent travels, and even more so for package tours.

Finance

There was made a calculations foк a period of 42 month (payback of the project) and the total revenue is 348607 Euro (8107 average per month).
The Cost structure is:
* Boat search and bying (159500 Euro)
* Boat maintenance (51850 Euro)
* Operational costs - fuel, water, salary, taxes, etc. (116345 Euro)

Business model

The Sailing Rest project is a production and commercial activity aimed at making a profit through the provision of tourist services, the organization of travel on a yacht for tourists, mainly from Russia and the former Soviet Union countries, as well as the sale of related services to them (flights, transfer, hotel reservations, etc.).
Sales of travel on the yacht Sailing Rest is supposed to be carried out both directly, to existing and future clients of Lenta-Tour LLC, St. Petersburg, Russia (it has been on the market of travel services for 20 years), as well as through a network of partners - travel agencies and independent travel agents (at least 3 partners are ready for this cooperation).

Money will be spent on

The main profit in the organization of such a tourist product is contained in the material part - a boat. Thus, the money from the investor is needed to buy a boat.

Offer for investor

Technically, the investor will own the boat until the full return of all invested funds, along with interest, in fact, as in a leasing scheme.

Team or Management

Risks

Any business activity is associated with risks. Of course, this also applies to the Sailing Rest project. With regard to this project, there are three main risks for the investor:
1. The risk of loss of investment. This risk is minimized at one of the initial stages, the purchase and registration of a yacht. It is planned to register a yacht under the British flag (Great Britain, Gibraltar), this implies the creation of a legal entity that does not operate in the UK, the founder of which is the investor. The use of the yacht is planned to be carried out under a contract (actually - leasing). Thus, the main asset - a yacht, is de facto owned by the investor, which minimizes this risk.
2. The risk of partial or complete damage to the yacht as a result of any accident, which entails a temporary or permanent inability to use for organizing the rest of the clients. To mitigate this risk, full insurance of the yacht is provided, and liability to third parties, including life and health insurance of passengers.
3. Situational risks associated with the closure of countries and regions due to the Covid-19 pandemic, the political situation and others. Despite the fact that there is a possibility of such restrictions, these risks can be reduced due to the mobility of the boat itself (it can be operated in any region, and, therefore, change the country/location if necessary). In Turkey, which has been chosen as the main destination for tourist activities, despite the existing travel restrictions as of mid-April 2021 (flights from Russia are partially suspended until June 2021) there is no direct ban on visiting the country. After the stabilization of the situation with the spread of the virus, as well as with an increase in the number of vaccinated citizens in the near future (by the summer), it is expected that the restrictions will be softened or completely removed. At the same time, there is an exuberant demand for holidays in Turkey. If, nevertheless, the restrictions are extended or new ones are introduced, then they will most likely be of a short-term nature, and will affect only the payback period of the project in the short and medium term.
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