Boat Rentals with a Modern Twist

Boat rentals have always been added profit centers and amenities for marinas, but the type of boats that are available to rent has been expanding from Jon boats, to jet skis to kayaks. The options for the type of boat and also how they are rented have evolved, and two newer products are making their mark.

Yacht Tubs
Alex Reed, owner of Yacht Tubs, has been a lifelong boater and admired the people he saw soaking in their hot tubs aboard their yachts in the Caribbean. He had the thought that hot tubs and boats should not be a combination for just the rich and famous. “I thought if they can do it, why can’t we? So, I set out to make the fun-sized version,” he said. The first Yacht Tub boat was built and launched in 2021 through the hard work of a team of engineers, naval architects and “some guys with a vision” to create a different rental experience, he said.

Reed said the concept behind the rental is no different than any other boat; it’s the experience that differs. “Our renters literally get to soak in the scenery, boating in a temperature-controlled tub,” he said. The boats that are built in Portland, Oregon, can now be found at docks from coast to coast.

Reed said the benefit of a Yacht Tub over a regular rental is that it can be used year-round in any climate. In the summer, the boats are filled with cool water, and in the winter, the temperature is raised. A bimini over the tub protects boaters from too much sun or drenching rains. The 18-foot boats are powered by a small electric outboard motor that provides a safe float trip, traveling at just 5 to 6 mph. Reed said the slower speed minimizes liability that might come from renting boats with more horsepower that can travel farther.

“The boats are built to last through wear and tear. We build them for serviceability,” he said. “All components can be swapped as the boat sits in the water. We do provide parts and support, but, mostly, commonly found marine parts will work.”

The maintenance is fairly minimal, with a yearly haulout for cleaning, motor and heater service. Tub water is replaced and refiltered between each rental, which takes some time, but Reed said the rental fee covers the added staff cost and more.

Marinas can incorporate Yacht Tubs into their existing rental fleet, or they can start from scratch with ideally a minimum of two boats to see if the idea catches on. “Four boats are where the profits begin. One boat will pay for overhead; two boats cover staff but adding one or two more is where the profit kicks in,” he said.

The Yacht Tubs appeal to a wide variety of customers who want a different experience from a typical rental. “We appeal to lots of different demographics of people who just want to enjoy an evening or afternoon, taking in a different side of the city. We’ve hosted celebrations, anniversaries, three generations on one boat, date nights and kids that just want to use it as a pool,” Reed said. He added that the electric motor and slow speed make it easy for anyone to drive and feel comfortable.

For marinas looking to diversify their rental fleets and raise the potential for repeat customers, Reed said the Yacht Tub is an appealing idea.

Vending Machine Boats
For boaters looking to take things even slower, many turn to kayaks and stand-up paddleboards. While both of these options have been available for rent at marinas for decades, the method in which customers access these rental boats has taken a modern twist. Enter the kayak/SUP vending machine.

Peter Meiusi, owner of Clinton Marina in Lawrenceville, Kansas, said when he and his wife first took over the marina, they were constantly fielding calls from people who wanted to know if they rented kayaks or paddleboards. They considered starting a rental program, but the costs didn’t make sense. “We could charge $20 an hour, but it would take staff 15 minutes to check out each boat,” he said. “We modeled the financial viability, and it wouldn’t make us money, and could become a nuisance. We stepped away from the idea.”

However, doing some research, he came upon a different approach. Modeled around the same principle as the bike and scooter rentals covering cities across the country, he found a kayak/paddleboard rental operation that leases boats to marinas and uses an app to cover all customer transactions.

The marina installed its first unit last April and has already added more. They put the initial kiosk adjacent to their parking lot and filled it with eight kayaks and four paddleboards. Each 3-foot by 8-foot solar-powered unit houses four boats or boards, and more units can be added as needed. Meiusi added another unit on the beach for ease of access to the lake and for high visibility.
Lifejackets and paddles are also supplied, making it a turnkey operation.

Customers pay and complete a liability waiver through an app, select how many hours they want to use the boats, then scan a QR code to unlock the storage unit. Boats are returned through the same app which keeps track of how long the boat has been out and upcharges if required. Users submit photos after each use to ensure the boats aren’t damaged or, if they are, the customer is charged accordingly.

The marina sets the price for the rentals. Clinton Marina offers a set fee of about $16 to $20 an hour and provides a discounted rental fee for local university students identified through email addresses. Meiusi said a marina could set a similar discount for a local employer or their own customers. He also has the ability to unlock the unit and sometimes offers free use of the boats to his employees.

The rental company provides the insurance and maintenance. “They send a maintenance person once or twice a month. We can also report problems, or our customers can through the app, and maintenance is sent,” Caroline Nagel, Clinton Marina operation manager, said.

The rental company has a membership package option. For $100, a customer can become a member and use kayaks or paddleboards at any of the 200-plus rental locations across the country. Meiusi said while he doesn’t get any portion of the fees for member rentals, he benefits from paddlers who spend money in other areas of the property, such as for snacks, drinks or souvenirs. He said they may also decide they like the area and want to explore farther with one of their larger rental vessels.

There are several companies that offer kayak kiosks and different business models. Meiusi started with a Google search and suggested that marinas shop around to find what works best for them. “I’m happy to share my experience with anyone who wants to contact me,” he said.

While it’s not a big income generator, Meiusi said he sees the bigger benefit being the ability to get families on the water for a nominal price. “The water should be accessible to everyone,” he said. “Obviously, there’s a business component, but the kiosk accomplishes our goal of getting everyone out enjoying the water.”