Chartering a private yacht for the first time might be very tricky in understanding the cost. To make the task a little easier, we have made a guide on all the expenses that you may face when booking a yacht.
If you want to charter a luxurious yacht, there are two important points that need to be clearly understood. The first one is the basic cost, or “charter fee”, or “charter rate”. And the second one is the extra amount you will have to pay. The “all-inclusive” payment option is not common to the industry.
It is very important to understand “on shore” that you will have to pay more for renting a yacht than it is specified at the websites of brokers or charter companies. It is like buying a car. You cannot just walk into a showroom and say: “I will take the blue one.” The consultant will immediately start asking specifying questions about the configuration, additional body kits and the notorious foot mats. Of course, the charter consultants will provide you with the exact cost of the selected yacht in advance, but for this they will also have to ask you a few specific questions.
What does the basic cost of a yacht charter include?
At the basic level, yacht charter includes a fee for chartering a superyacht from the owner for an agreed period of time with a pre-agreed route you will take to travel. During your charter vacation, you will have access to all the amenities of a superyacht, and you will also be able to use a selection of water toys and tenders. The yacht’s crew will look after the guests, they will take care of all the needs, including delivery to and from the shore, laundry and delivery of dishes cooked by the yacht’s chef.
What is the cost of a superyacht charter?
The most expensive yacht to date is the luxurious Flying Fox
At the Yacht Hunter website, charter vacation can range from at least 8,000 euros per week to a max. of 3,000,000 euros per week. It might occur the bigger the yacht, the higher the charter cost, but this is not always the case. In fact, there are many more factors that can impact the basic charter fee, not to mention the associated additional costs.
According to Boat International*, yachts of less than 30 meters long will have a weekly charter rate of about 40,000 euros, and yachts of 30 to 40 meters long will cost an average of 71,000 euros per week. More than 40 meters — it is the case when the charter rate moves to the range of 100,000 euros per week, while yachts of 50 to 60 meters long will cost an average of 220,000 euros per week, and yachts of 60 to 70 meters long will cost an average of 445,000 euros. Mega yachts of 80 meters or more will cost charterers an average of about 1.7 million euros per week. However, this is just an average cost, and the charter rate of each yacht depends on a number of aspects, from the number of cabins and amenities on board to the dates and direction of the charter.
What is APA and what does APA cover?
APA - Advanced Provisioning Allowance
Part of your yacht charter contract will include APA, or, more simply, operating costs. It accounts for about 30–35 percent of the charter cost, if the “charter plus all expenses” is used and about 5 percent for an all-inclusive charter. It is sent to the yacht before the charter to provide for all your preferences at the yacht.
During the charter, the captain will provide a current report on the use of funds, and at the end of the charter the captain will provide a detailed report along with any unused cash funds. If the APA balance runs out during the charter, the client is expected to provide the captain with sufficient cash to cover the remainder of their stay.
Food and drinks
Food is one of the largest expense items, it is directly proportional to how much you plan to have for lunch. If you plan several bottles of champagne with each meal, you may assume your expenses will be higher.
Fuel
Fuel can be another expense item and, yet, it depends on how long and how fast the yacht runs. The time spent at anchor will include fuel for generators, and electricity ashore in the dock will also be an additional item. Do not forget the fuel is also paid for tenders and water toys, so you will pay for the fuel used while riding jet ski.
Port fees and docking
This is a variable that can range from extremely high (a berth in the front row at the Monaco Grand Prix) to virtually zero values in some areas.
Communications
Another item of expenditure, which is important for most charterers, given the capabilities of satellite communications and the Internet.
Delivery cost
The delivery fee is usually charged if the charterer requests boarding of the yacht at a distance away from where the yacht is usually based.
Laundry
All laundry on the yacht, including towels, sheets and table linen, is included in the charter price, but some yachts charge for laundry of personal items. The majority, however, will wash a small number of things as a service, but they are unlikely to be responsible for delicate things.
Tips
At the end of each charter, it is necessary to give the captain a cash tip that he can divide it among the crew members. Crew tip standards can range from five to 20 percent of the basic charter rate. This is not included in the APA, but some brokers report that any APA funds remaining at the end of the charter can be used to compensate for part of the tip.
Insurance
One of the expenditures not directly related to the operation of a charter yacht is the insurance of the charterer. Cancellation and reduction insurance is a charter version of travel insurance on airlines and cruise liners: it covers the charterer’s expenses if unforeseen circumstances require cancellation or reduction of the charter period. Your charter broker can provide this insurance, which is a reasonable investment.
VAT
Charterers may be charged with VAT or charter fee “value added tax”. Many European countries and several Caribbean islands add VAT, but this is a complex issue that depends on where you board the yacht and where you leave it, so ask your charter broker for advice.
At first, it may seem the additional services or “hidden costs” for yacht charter are a way to replenish the owner’s account; in fact, they are an advantage for the charterer. Food and drinks, for example, are ordered according to the individual preferences of the guests. Fuel is charged only if it is used. Other charges are also at the discretion of the charterer. Therefore, you can control your expenses and still enjoy a luxurious charter.
It is important to remember that each charter is unique depending on the needs and desires of the guests, and brokers and crew will always work to meet these demands.
Are you ready to start? Browse the charter yacht catalogue to choose the perfect charter yacht for your next vacation.
* Based on https://www.boatinternational.com
