The price when chartering a luxury yacht is straightforward, with a set charter price based on the yacht you have chosen and the amount of time that you will be at sea.  However, there are many other factors that can come into play to determine the final price for your yacht charter.  One of these fees is the Advance Provisioning Allowance (APA).  This is typically 25% to 30% of the total amount of the charter and is intended to cover operating expenses during your time aboard.  These expenses include fuel, food, beverages, and port fees.  If you are traveling to a European country, you can also expect to pay VAT (Value-Added Tax) to the country where you will be visiting.

Charter Fee for Your Luxury Yacht

Each yacht charter has a base charter fee which is required to pay for the boat and the many amenities that come with it.  This is determined by the boat you have chosen and the time that you will be at sea.  Time of year can also be a factor, with spring and summer being peak months for chartering a luxury yacht.

Determining the APA for Your Luxury Yacht Charter

This money is collected prior to disembarking on your private yacht.  It is intended to cover the obvious expenses that will need to be paid preparing for your charter, including food and beverages, and during your time onboard, fuel and port fees.  Once you have created an itinerary and meal plan for your trip, an estimate can be given for this fee.  Guests that expect the finest dining may see a higher APA, while those on a sailing vessel may have a lower fuel cost than their motorboat counterparts.  While this can vary greatly from charter to charter, a good estimate is to plan for 25-30% of the charter fee to cover this expense.  This money will be paid to the captain, often directly through the yacht broker.  Records of the expenses will be kept, and you will receive money back if there is any left over.  Alternatively, if you go beyond the APA that was reserved beforehand, you will be required to pay this difference upon the completion of your trip.

When You Will Need to Pay VAT

Per the European Union, any vessels disembarking within their waters are required to pay VAT to the country.  This may also apply to some Caribbean islands.  You will be able to determine the VAT expenses prior to disembarking based on your boat’s itinerary, making this easier to plan ahead.

Once you have decided to charter a luxury yacht, Cruzan Yacht Charters can help to find the right fit for your budget, giving you an idea of the overall cost for your trip.