The FailBoat is the The Watcher's customized pleasure yacht, cruising just off the coast of Improbable Island.1) It serves as her base of operations and includes the offices from which she monitors events on the Island and her other favorite Reality TV shows. The FailBoat is also currently Sinking.
Prior to Season One, the Watcher based her operations in a physical location called Despair. She was unhappy with this arrangement since gawking tourists kept dropping by to snap photographs and generally disrupting the daily operations. Now, based on a mobile platform, the Watcher enforces an exclusive access policy.
Access to the FailBoat is limited to contestants who have failed miserably in jungle fights. Such failures don't make for a very good TV show, so the Watcher's minions haul those contestants to the FailBoat overnight for 'retraining.' Retraining mostly consists of letting the contestants jump into cages of monsters, kept as pets because the Watcher likes their particularly vicious natures, below the decks. There, contestants can build up favor by amusing the Watcher.2)
In these retraining sessions, the contestants are driven purely by adrenaline and rage. You won't have access to any buffs, debuffs, implants, equipment, or other combat techniques (excluding timed combat).
Contestants who build up enough favor may be allowed to enter the Watcher's office and ask for a benefit:
Contestants who survive a night on the FailBoat are dumped back on the Island come daybreak, usually in the Outpost of the Jungle they were fighting in, or to the nearest Outpost if they were traveling.3)
The Watcher also offers a weekly champagne cruise on the FailBoat, where audience members from around the world can enjoy fine food and wine while touring around the coast of the Island.4)5)
For contestants, there is an unofficial6) cocoa stand.