Thinking of Selling Yacht Charters? This Tour Operator Wants to Partner With Travel Advisors

For Michael Gelber, selling travel is personal.

He’s the son of the late Ady Gelber, best known in the industry as the founder of tour operator Isramworld and a true pioneer in successfully bringing American tourists to Israel and Egypt more than 50 years ago.

After Ady’s death in 2016 — and the subsequent shuttering of Isramworld — Gelber made it his mission to honor his father’s past while simultaneously creating a travel company fit for the future.

Thus, in 2017, IWorld of Travel, an Ady Gelber Legacy Company, was born.

IWorld of Who?

Although it’s in its fourth year of business, IWorld of Travel remains unknown to many in the travel industry. Gelber took a wait-and-see approach when the COVID-19 pandemic struck; although the company had business on the books, it canceled all 2021 departures last year when the pandemic shut down borders and sent travelers into lockdown.

Now, IWorld is busy gearing up for what it hopes will be a bustling 2022. The company is currently selling luxury FIT tours in 80 countries, opening international offices via its on-the-ground affiliate, Gelber’s Way; and partnering with 30 destination management companies worldwide.

Like its predecessor, the company works exclusively with travel advisors (Gelber, who serves as IWorld’s chairman and CEO, even kept Isramworld’s original tagline, “The Travel Agent’s Friend since 1967”). Commission is paid within 72 hours of initial trip deposit (which can be secured at $180), and funds are wired to the travel advisor’s bank account rather than sent by check. Additionally — and especially pertinent in the COVID-19 era — clients can cancel and receive a full refund up until 90 days from departure. 

IWorld also provides its travel advisor partners with marketing materials, advisor trainings, webinars and an exclusive trade-only website.
“Think of us as your luxury travel broker,” Gelber said.

What’s more, the company recently expanded its offerings beyond land tours to incorporate sailing products on the Adriatic Sea. In fact, I first met Gelber onboard the 36-passenger Lastavica, one of four yachts that will sail IWorld itineraries along Croatia’s Dalmatian Coast. We were sampling the company’s AST (Adriatic Service Travel) 200 route, sailing from Zadar to Dubrovnik, Croatia (with ports of call including  Telascica, Sibenik, Trogir, Bol, Hvar, Korcula and Mljet), where I picked his brain about what travel advisors need to know about IWorld’s Croatian yacht product — and how to best sell it.

An Introduction to Yacht Charters

Unlike massive cruise ships — or even standard European river boats — small-ship yacht charters have the ability to be completely customized, with the exception of the initial embarkation and final disembarkation ports of call. 

Advisors booking small-ship cruises in Croatia with IWorld can opt to charter one or more ships of the fleet, which include the brand-new, 41-passenger Adriatic King (the longest and fastest of the four); the 31-passenger Adriatic Queen; the 41-passenger Bella; and the 36-passenger Lastavica. Or, if they don’t have enough bookings to fill an entire ship, agents can sell individual or groups of cabins.

Rates for eight-day, whole-ship buyouts begin at about $50,000 for Adriatic King and Bella, and $38,000 for Adriatic Queen, depending on departure date. Dates and rates for Lastavica are available on request. 

There are also multiple levels of service that can be purchased when chartering, according to Alida Paljevic, president of Gelber’s Way in Croatia. The first level includes the charter only: The ship, onboard meals and the services of the crew are included, but sightseeing tours and transfers are not, leaving travel advisors with the freedom to plan stops on the route as they see fit. The second option is a full-service charter, which includes an onboard cruise manager, sightseeing with local guides and all entrance fees.

Full-ship charters are currently available for booking; individual cabin sales will open on Dec. 1 for the 2022 season.

The Ships

In Croatia, IWorld of Travel holds the exclusive General Services Administration rights to the Adriatic King, Adriatic Queen and Bella for the American market, along with contracted departure dates through Gelber’s Way for the top four cabins of each ship for every departure. The company also has the first right of refusal for charters with Lastavica.

Each of the four ships — most of which are family-owned — has its own personality, Gelber said, so it’s especially important to qualify clients before booking.

“The [Adriatic] King is about bling, and for someone who likes flashy [style]; it’s similar to a W Hotel,” he said. “The Bella is just beautiful, and it was the most popular with [on-the-ground partner] Adriatic Services Travel, and the Queen is the oldest ship, but it really has grown to what the market needs.” 

Meanwhile, I quite enjoyed the 18-cabin Lastavica, which features a minimalist design, with light-wooded accents, a neutral color scheme and simple, pleasing decor.

When you explain to guests how much freedom they have, and how many places they see without moving from hotel to hotel, these are your selling points.

The Routes

When booking cruises, advisors are often faced with clients who lean one of two ways — booking for the ship, or booking for the destination. 
And when it comes to IWorld’s Croatian cruises, Paljevic says she believes advisors should sell the ships “route forward.”

“When you explain to guests how much freedom they have, and how many places they see without moving from hotel to hotel, these are your selling points,” she said. 

Gelber agrees.

“The cruising became one of those things where I thought, ‘OK, this is just another vehicle to get [clients] to land,’” Gelber said. “We’re not looking to make high revenue on this part of it … we’re going to make that on the land excursions. So, it all fed into the land experience.”

I think it'll be interesting to see that you might have clients, who you weren't aware of, that had this interest, and that it would be an easy plug [for them].

Routes for the Croatian cruises vary in length, location and intensity. On one end, the AST 100 route encompasses the slowest voyage. The AST 300 route, on the other hand, is fast-paced; it traverses the entire coast of Croatia and has a heavy focus on sightseeing and culture.

IWorld is currently promoting the following routes in Croatia:

- AST 100: Roundtrip, Split to Dubrovnik to Split; 8 days, from $1,990

- AST 150: Split to Dubrovnik; 8 days, from $1,795

- AST 160 Dubrovnik to Split; 8 days, from $1,795

- AST 200: Zadar to Dubrovnik; 8 days; from $2,205

- AST 210: Dubrovnik to Zadar; 8 days, from $2,205

- AST 300: Rijeka to Dubrovnik; 8 days, from $3,010

- AST 310: Dubvronik to Rijeka; 8 days, from $3,010

Building a Business Model and Charter Selling Tips

Although IWorld pays 18% commission to advisors on all trips, it also gives agents the option to set their own pricing to net a greater profit.

Jasper Fanfalone, principal and senior partner of boutique agency Vast Passages Travel & Events, was the first travel advisor to buy a full-ship charter with IWorld since its product launch. He says that Croatia is a “goldmine” for his clients, especially those who have already done nearby Italy and Greece.

What’s more, Fanfalone has developed a model for selling these charters that offers him a nearly 30% profit. Built into his pricing is the rate of his own stateroom (when he’s escorting groups), and $6,000 in promotional “mad money,” which he will use for taking clients to dinner, treating them to land excursions or even giving them shipboard credits for onboard alcoholic beverages (which is not normally included in the charter price).

“I’ve built in so much insurance into this model that it makes it a no-brainer for the way I do business,” he said. “You don’t have to sell 40 people. For 18-cabin ships, my breakeven point is 12 to 13 of those cabins."

Fanfalone said he’s also open to working with other advisors who might be interested in splitting a charter with him.

“For [talented] advisors, charters don’t scare them,” Gelber said. “If you price it so that your breakeven point is 10 cabins, you may not make any money, but you won’t lose. There’s no threat.”

For travel advisors who have never sold yacht charters before, or who are transitioning from larger cruise or river cruise markets, Gelber has some advice:

“You just don't know what you don't know,” he said. “You’ll get out to market, and you’ll start to realize what the interest is, especially if you haven't done this type of private chartering and cruising [before],” he said. “I think it'll be interesting to see that you might have clients, who you weren't aware of, that had this interest, and that it would be an easy plug [for them].”

The Details
IWorld of Travel