Understanding the Costs of a Yacht Charter Vacation

For those taking a luxury yacht charter for the first time, understanding the costs and fees involved can be confusing.

While your dream yacht will have a base charter fee, expenses such as fuel and food may not be included, so understanding the individual terms and conditions of your charter contract is vital. Charter contracts themselves, vary according to the season in which you choose to cruise.

THE INFLUENCE OF THE CALENDAR

Cruising during the High Season.

As the most expensive time in the yacht calendar, the high season consists of the most popular weeks and months of the year. This can vary according to location, so it’s important to check before you book. For example, the winter months make up the high season in the Caribbean, while the middle of summer remains the most popular in the sun-drenched Balearics. To ensure you enjoy the perfect high season charter vacation, planning is required, and you’ll need to book in advance. Many of the designated marinas are booked up early, particularly in popular destinations or during special events.

Cruising during the Low Season.

With costs some 30 per cent cheaper out of high season, and many popular resorts quieter during this time, it’s hardly surprising to see so many choosing to cruise during the low season. Many family and friends choose the weeks leading up to, and following on from, the high season. By doing so, guests can even benefit from the same weather, while enjoying cost savings and a reduction in crowds.

Even when planning a low season break, it’s still advisable to book as early as possible to avoid disappointment.

SIZE MATTERS.

Predictably, the size of the yacht has a direct impact on the cost you pay to charter, but there are many other factors that can bump this price up. How recently the yacht was renovated, the location in which it is based, and even the reputation of the builder can have an impact. In addition, a yacht with a history of celebrity ownership, unique features or amenities, and even previous guests, can add more to the charter cost.

THE CONTRACT FEES

Base Costs.

This is the basic cost of the yacht, to which all other expenditure is added. However, depending on the contract, you may get varying levels of expenditure already included in that base cost. One owner may choose to include unlimited Wi-Fi, while another may charge for this, for example.

MYBA Charter Contracts

Mediterranean Yacht Brokers Association (MYBA) charter contracts are among the most common contract types. The charterer is charged for guest meals and beverages, along with harbour and dockage, fuel consumption, and most other expenses associated with the charter. An additional 30-40% of the original charter fee is a good guide to cover additional costs within a typical MYBA charter.

CTI/SCT Contracts

Caribbean Terms Inclusive (CTI) or Standard Caribbean Terms (SCT) could be compared to an all-inclusive holiday package. Under this contract, you will enjoy three meals and four cruising hours included each day. On occasion, drinks may also be included.

Fuel is an important consideration within this contract, as only the fuel for planned cruising time is included. Fuel for toys, exceeding cruising speed, or for electricity at anchor, is not included.

SEMT & GT Contracts

Despite MYBA and CTI/SCT contracts being the most popular, there are other options. Standard Eastern Mediterranean Terms (SEMT) contracts include breakfast and lunch, as well as harbour and berthing fees. A Greek Terms (GT) contract includes docking in Greek waters.

ADVANCE PROVISIONING ALLOWANCE (APA)

APA, or advance provisioning allowance, is an allowance used to cover additional costs associated with your yacht charter.

The APA is usually paid one month prior to boarding the yacht, and is paid to the yacht’s captain. The captain will use this payment to prepare for your arrival, purchasing provisions such as food.

Food is one of the expenses taken from the APA, and the crew will use the information you provide on the booking information sheet (likes and dislikes, allergies and preferences). Drinks will also be removed from the APA, although it’s always worth checking the individual terms on your chosen yacht as some variance does exist. In many cases, items that fall outside the usual service will be removed from the APA. This could include cigars, specific tenders, equipment hire or even performers for a celebration.

APA is usually set at 30% of the charter fee, although this is totally depending on your individual itinerary and plans. If it looks likely that food, drinks, or fuel costs may exceed the standard APA, an increase may be proposed by the yacht’s owner or crew.

Once your yacht charter is over, all extra costs will be calculated. In the event that your extra costs amount to less than the APA, then you will be refunded the remaining balance. Additionally, if the extra costs go beyond the APA, you will be responsible for covering the difference. In many cases, the left over APA is left as a gratuity for the crew, but this is by no means compulsory.

FUEL & DOCKAGE

It’s worth remembering that fuel consumed using jet-skis and tenders will be charged, in addition to the fuel used in generators when docked at a marina. Dockage fees can vary from small amounts to huge sums of money, depending on location, the time of year, and any specific events taking place at that time and location.

PROTECT YOURSELF

Insurance is always advisable, and Charters Liability Insurance or Cancellation and Curtailment Cover can provide peace of mind.

VALUE ADDED TAX (VAT)

The European Union (EU) states that VAT will be charged should you disembark within the waters of a member state. There are a number of Caribbean Islands that also fall within this remit, for example, those British and French territories. While commercially registered yachts are usually VAT exempt, those yachts not commercially registered will be liable for VAT within the EU.

DO YOUR HOMEWORK

Planning a yacht charter vacation is an exciting experience. However, it’s always advisable to do your research and read the terms carefully before you book. Make sure you understand the contract you are about to sign, and the fees attached. Don’t be afraid to ask questions before you sign, to avoid any problems later on, and ensure you and your guests enjoy the best vacation possible.