When you begin planning a luxury yacht charter it is important to be aware of what is included in the cost of booking your dream charter yacht. Although a yacht will have a base charter fee, this may or may not include additional expenses such as food and fuel and this is subject to the terms and conditions within the charter contract. There are various types of charter contracts and which one applies to you will depend on where you wish to cruise.
This page will go into detail of the costs to be expected when planning and booking a yacht charter. From the base charter fee of a yacht, what is covered within the fee and how it may vary in addition to details of contracts and how an Advance Provisioning Allowance (APA) can be used to manage any expenses.
The base charter fee refers to the hire cost of the yacht itself, including all equipment as well as cost of food and wages for the crew during the entirety of the charter. The base fee varies widely between yachts depending on age, size, make, model and onboard amenities. The base rate varies during the season, and is typically reduced during the low season.
Prices often increase during special events such as the Monaco Grand Prix, Cannes Film Festival and America’s Cup. Unless you are keen to charter a yacht for a particular event, choosing dates before or after such an event will usually entail a more favourable price and a larger selection of yachts to choose from.
Yachts of the same size and make may also differ in price due to various reasons. A yacht which boasts an onboard cinema or lavish watersports facilities will have a higher base rate compared to a yacht of minimal amenities of the same size. If you feel that it is unclear as to why two yachts of the same size are vastly different in price, feel free to contact your TJB Super Yachts broker for clarification.
The type of charter contract applicable to your charter will depend on where in the world you are cruising, as there are various terms within the industry which dictate how the payment structure is determined. For instance, a MYBA (Worldwide Yachting Association, formerly known as Mediterranean Yacht Brokers Association) contract operates under Western Mediterranean Terms (WMT) and is arguably the most commonly used, particularly with large yachts embarking on a Mediterranean yacht charter. This contract is often referred to as a "plus all expenses" contract and requires that the charterer pay for fuel, food, beverages and dockage fees as an additional expense outside of the base charter fee. Typically, guests can accumulate an additional 25% to 50% of the base charter fee though this is dependent on what is consumed. These expenses can be tracked using an Advance Provisioning Allowance (APA) which we will cover in the next section.
Alternatively, smaller yachts on a Caribbean yacht charter can expect a "mostly all-inclusive" contract known as Caribbean Terms Inclusive (CTI) sometimes referred to as Standard Caribbean Terms (SCT). The Standard Caribbean Terms greatly differ from Western Mediterranean Terms, as the Caribbean terms include three meals a day in addition to four hours cruising per day which is included in the base charter fee.
In addition to the commonly used MYBA terms and Standard Caribbean Terms, there are also less frequently used terms such as Standard Eastern Mediterranean Terms (SEMT) and Greek Terms (GI). Read our page on Understanding Charter Contracts for more information and if you are unsure as to what is included under the terms of your contract, be sure to ask contact one of our brokers.
The APA enables charterers to manage their expenses through a clear and traceable arrangement by depositing the estimated expense of cost of fuel, food and dockage fees. Typically, the APA accrues to approximately 25% of the base charter fee, although this does depend on the tastes and requirements of the party. For instance, a sailing yacht will have a lower expenditure due to lower fuel costs. Clients can request an estimated APA amount from TJB Super Yachts based on your charter preference form.
The APA is paid approximately one month prior to the start of charter and is paid directly to the captain who will make expenditures whilst keeping a record of what has been spent. At any point during the charter the guests can request a rundown of accounts from the captain.
Should you exceed the APA, the captain will request that additional funds are paid during the charter. We therefore advise clients to keep an additional amount with TJB Super Yachts that we can transfer urgently on your request. Cash can be used if necessary too. If the APA is not used up, remaining funds will be reimbursed at the end of the charter.
The distance travelled and speed of cruising affects fuel costs. All fuel consumed is at the expense of the charterer. This includes fuel for toys such as Jet Skis and tenders. In addition, whilst docked at a marina, the generators used to produce electricity also use fuel.
Dockage fees vary greatly upon the location and season. TJB Super Yachts can advise you of these fees in advance while planning your itinerary.
Some clients choose to take out Charterers Liability Insurance or Cancellation and Curtailment cover. Please contact TJB Super Yachts for further details.
Within certain European countries, as well as some Caribbean islands, VAT applies if you choose to disembark in their territorial waters.
Commercially registered vessels are usually VAT exempt. All others are liable for VAT for charters within the EU.
No request is too large or detail too small on a yacht charter though it is wise to keep in mind details such as shipping costs should you request items to be flown onto the yacht.
The payment structure is in place to ensure no unpleasant surprises arise. It is prudent to keep an escrow account with your broker on shore in order to control charter costs without having to carry cash on board.