Estimated reading time: 8 minutes

Working out acronyms, abbreviations, and legalese in the charter contract for custom yacht vacation itineraries can make your head spin if this is your first time. However, these contracts are simpler than you think and, ultimately, spell out your rights.

Key to your adventure is the yacht charter APA (Advanced Provisioning Allowance). It’s a concept that simplifies the logistics of luxury yacht charter itineraries by ensuring everything is covered upfront, so there are no nasty surprises later.

Let’s go into the yacht charter APA to ensure you know what you’re in for before you get down to the ins and outs of putting your yacht charter together.

What is the Yacht Charter APA?

Yacht charter APA is your advanced provisioning allowance. It’s an extra fee you pay upfront to cover the costs of provisioning your vessel before your trip. It works just like a charter fee, so you’ll make a single upfront payment when booking your yacht charter.

Fundamentally, it’s a petty cash account for your captain and crew to cover everything you’ll need whilst onboard. This also means you won’t be expected to stump up for lots of little expenses as you move from anchorage to anchorage.

What Does a Yacht Advanced Provisioning Allowance Cover?

The APA is there to cover the day-to-day operating expenses of chartering a yacht. It doesn’t just cover things like customs fees and food, but also any special requirements you might encounter whilst onboard.

Naturally, all custom yacht vacationing itineraries differ, but here’s a breakdown of the common expenses the APA covers on a conventional itinerary.

Food and Drink

Part of booking luxury yacht charter itineraries is establishing what you’ll be eating and drinking whilst you sail the seven seas. Your charter operator will send you a preference sheet so you can ensure all your favourite foods and drinks are catered for. It’s also used to estimate your APA charge.

Fuel Costs

Getting to where you need to go takes fuel, and the shape of your itinerary will define how much you actually need. If you’re spending more time at anchor, you’ll need less fuel than if you’re going on an intensive island-hopping trip.

Additionally, don’t forget that any toys and tenders will need to be factored into your fuel equations.

Harbour Fees

Berthing costs vary depending on where you’re berthing. Someone who’s sitting pretty in Lanzarote in November will pay far less than someone who’s trying to berth in Cannes in May. Again, fees will depend on your itinerary, how long you’re travelling for, and the time of year.

Internet

Modern yachts are often equipped with Internet facilities to help you stay connected. If you plan on using this provision or the satellite communications onboard, this will also be factored into the APA.

Delivery Fees

Sometimes, a delivery fee might apply. A delivery fee applies if you’ll be boarding your chartered vessel outside her home port. That’s because the yacht will have to be transported to your chosen embarkation point before the charter begins.

Who is Responsible for Charter Purchasing?

The captain is responsible for overseeing purchases made before and during your yacht charter. They are responsible for ensuring that the crew stays within the established budget and provides receipts upon request.

Unlike other types of holiday, all purchases made against the APA are made at cost. In other words, there are no extra fees or premiums charged on these purchases. If a bottle of wine costs €100 from a local winery in France, this is what you will ultimately pay.

Why Does the Yacht Charter APA Exist?

A yacht charter holiday is a holiday like no other. Unlike booking a hotel with fixed services, a yacht charter is fully personalized to your needs. And that’s why determining costs can be such a complex business.

The main factors in running costs include:

·  Where are you sailing to?

·  How far are you sailing?

·  Your eating/drinking choices.

·  Anchorage choices.

·  Excursions.

·  Water toys and tenders.

·  Individual preferences.

In the past, charter companies would either have to overcharge with padded estimates, leading to high upfront costs, or risk undercharging and presenting a big bill at the end of the voyage. Neither option is a particularly pleasant one.

These days, the APA is the industry standard and gives captains a real upfront budget and trackable expenses. For guests, it provides reassurance that you’re only paying for what you’re actually using.

What Happens if I Don’t Spend My Advanced Provisioning Allowance?

Anything you don’t spend is returned to you. Luxury yacht charter itineraries are built with flexibility in mind. That’s why determining the exact number of pounds you spend at the start is nearly impossible.

The APA uses all available data to provide an accurate estimate of exactly how much you might spend on your voyage. However, anything you don’t spend will be refunded to you. It’s not uncommon for charter guests to receive 10-20% of their APA back at the end of their voyage.

Typically, your average charter will use between 80% and 120% of its initial APA estimate. Everything is tracked with receipts, so if there are any disputes, you’ll be able to go through the records later.

What if My APA Doesn’t Cover My Actual Expenses?

Switching up your itinerary, extending it, or making last-minute requests can alter how much you spend. If your APA isn’t sufficient to cover these costs, your charter company will request a top-up.

That doesn’t mean you’ll be awoken in the main cabin one morning with a bill being shoved in your face. Most charter companies will ask you to cover the remaining APA at the end of the voyage. Again, all receipts are collected and logged, so you can still be sure that you’re only paying for what you actually used.

Standard APA Percentage by Yacht Type

The type of yacht you charter will have a massive impact on your APA because every yacht has a different fuel consumption profile. Within the industry, APAs are quoted as a percentage of the base charter fee.

Here’s a breakdown of what different yacht-type APAs might look like:

·  Monohull Sailing Yachts – 20-30%

·  Sailing Catamarans – 20-30%

·  Power Catamarans – 30-40%

·  Motor Yachts – 30-40%

·  Superyachts – 40-50%

The reasoning behind these percentages is simple. Vessels that sail often or most of the time with wind power will naturally consume less fuel, thus cutting down on your expenditure. In terms of larger superyachts, you’re not just looking at fuel costs but general operational costs because of their size.

How a Yacht APA Works in Practice – Real-World Example

Let’s take a look at what the calculations might look like when applied to a real-world charter itinerary.

Suppose you are taking a 14-night crewed catamaran charter around Croatia and the Adriatic Sea. Here’s what that might look like in high season:

·  Base Charter Cost – €60,000

·  Required APA (30%) – €18,000

·  Total Paid Upfront – €78,000

During the two weeks that follow, the captain spends the €18,000 APA fund as follows:

·  Fuel – €3,200

·  Food and Provisions – €5,600

·  Marina Fees – €4,400

·  Extras – €1,400

·  Total Spend – €14,600

·  Remaining Fund – €3,400

In this example, you would be due a refund of over €3,000. Typically, it’s standard practice to use any leftovers from the APA to fund tips for the captain and crew, ranging from 10-15% of the base charter cost. Assuming a generous 15% tip, that adds up to €9,000. You would provide an additional €5,600 to the captain to be shared among the crew.

Final Thoughts: Managing Your Yacht Charter and the APA

The APA can surprise many first-time yacht charterers if they’ve never heard of it before. Despite the added upfront cost, it’s an industry-wide approach that ensures transparency, guarantees peace of mind, and ultimately makes chartering a yacht more straightforward for everyone involved.

Where will you charter a yacht this year?

Yacht Charter APA FAQs

Does the APA apply to all charters?

The APA applies to every luxury yacht charter. It’s a standard accepted by the industry, with benefits for both sides. Although some one-day excursions might not use the APA, any multi-day charter will usually include it, so it’s nothing to be surprised by.

When do I need to make my APA payment?

APA payments are made upfront, long before your charter begins. Typically, you’ll be asked to cover the APA a month before your charter date. The transfer will be made directly to your yacht captain, as they are responsible for managing purchases. Your broker will provide all of the necessary banking details.

Is there anything the APA doesn’t cover?

The APA is designed to cover all onboard expenses, ensuring your charter runs smoothly. What it won’t cover is travel insurance, restaurant meals, excursions not arranged through the captain, and crew gratuity. Moreover, it won’t cover any of the costs of getting to and from your embarkation/disembarkation points.

Always confirm what the APA will and won’t cover with your broker before signing the final contract.