Post Charter APA Recovery (Advance Provisioning Allowance): Why You Should Work with a Charter Broker

My Greek Charter 〉 Charter Insights 〉 Post Charter APA Recovery: Why You Should Work with a Charter Broker

APA Management and Reconciliation

You do not want to end your luxury yacht charter vacation with disputes about money, and there are too many cases of charter guests not being able to recover the leftovers of their Advance Provisioning Allowance or being overcharged because they have lost sight of their spending.

Scenario: Managing Unexpected Expenses

Imagine a charter where various unexpected expenses arise, such as higher-than-anticipated fuel consumption due to a change in the travel itinerary or additional port fees from staying longer in a premium location. In such cases, the captain would adjust the APA expenditures to cover these costs. How do you keep track of all of this while enjoying your relaxing vacation?

Why it is Important to Work with a Broker:

A broker plays a key role in this situation by providing oversight and expertise. We ensure that the captain maintains accurate records of all APA expenditures and communicates effectively with the charter client about the financial status throughout the trip. At the end of the charter, the captain presents a detailed APA reconciliation report, which includes receipts and a breakdown of all costs incurred. We have looked at hundreds of these already and know how to properly check them.

Handling Overages and Shortages in APA:

Exceeding APA Estimates: If the expenses exceed the initial APA amount, the broker can facilitate discussions to settle any additional payments required and make sure that the additional fee corresponds with the client’s spending.

APA Underutilization: Conversely, if there are any remaining funds, the broker ensures that they are returned to the client via bank transfer. This process helps prevent any disputes over charges and maintains a clear and trustworthy relationship between the charter client and the yacht crew.

Guidance on Tipping Practices:

Everyone knows the awkward situation of not knowing what to tip, and in yacht charter, the rules are rather strict. Brokers are responsible for educating clients about the practice of tipping the crew, which can otherwise be mistakenly deducted from the APA without proper client consent. Brokers ensure that all fees involved are according to the charter agreement and are transparent and presented upfront to the client.

"...we represent you."

“We do not represent the yacht; we represent you! Our aim is to match you with the right yacht and ensure that your experience is exactly what you are looking for.”

What is Advance Provisioning Allowance?

The Advance Provisioning Allowance (APA) is a budget additional to the base yacht charter fee set aside in a separate APA account. The APA covers costs like fuel, food, port fees, and any other miscellaneous expenses that occur during the yacht charter.

APA is a standard practice in Mediterranean crewed luxury yacht charters. On all yachts operating under MYBA terms, the APA amount is outlined in the charter agreement and is usually set at around 25-40% of the base charter fee.

In the Virgin Islands, charter fees are mostly all-inclusive, meaning the APA is already included in the total charter price. But in the Bahamas, St Maarten, St Barths, and Antigua, charters are +APA. This also applies to the Mediterranean.

The idea of the APA is to have a fund that the yacht captain can use to provision the boat according to your preferences and needs without needing to clear every expense with you during the trip. At the end of the charter, the captain will provide an itemized list of all expenditures, and if the Advance Provisioning Allowance exceeds the costs, you will get a refund of the difference. If the costs exceed the APA, you’ll need to pay the extra amount.

💡 The Advantage of an APA Yacht Charter:

For clients seeking a customized, high-end experience, the Advance Provisioning Allowance allows for expenditures beyond what an all-inclusive charter would cover. Additionally, it provides budget-conscious travelers more control over their spending, ensuring they can manage costs effectively during their charter.

Tax and Tipping is Cheaper with APA Charters!!

One key advantage of the APA system is that clients only pay tax and tip on the base price, not the higher all-inclusive cost. For example, tipping 10-15% on the base price is much cheaper than 15-20% on the all-inclusive price, which can result in significant savings, especially for charters in the Caribbean.

Why are the prices of yacht charters shown excluding VAT and APA?

What Does the Advance Provisioning Allowance Cover?

Food & Drinks: Before your yacht charter begins, your broker will send you a preference sheet on which you can specify your food preferences, dietary requirements, and favorite beverages. This will help to more accurately calculate your Advance Provisioning Allowance estimate.

Fuel Charges: Fuel costs greatly vary depending on the itinerary and whether you travel long distances or spend more time at anchor. This cost also includes any fuel used for water toys.

Harbor Fees & Docking: The harbor and docking fees also vary a lot depending on where and when you want to charter and, of course, the size of your yacht. Popular spots in high season are the most expensive. You can keep this cost down by spending some nights on anchor.

NOTE: The Yacht Delivery Fee is NOT INCLUDED in the APA. There is another section in the contract for delivery terms. This fee only applies when the charterer wishes to start from somewhere other than where the yacht is based.

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How is the Advance Provisioning Allowance Calculated?

The Advance Provisioning Allowance (APA) is an estimate of your spending during charter and depends on several factors. However, it usually a percentage of the base yacht charter fee:

Expect to pay 25-30% for catamarans and sailing yachts.
Expect 35-40% for motor yachts.

Keep in mind that if you plan a busy itinerary that includes island hopping or cruising for more than four hours a day, your APA will increase to cover the additional fuel costs.

Factors Influencing the APA Percentage

Yacht Size and Type: The biggest influence on APA is fuel consumption: the type of yacht and how far you travel. Large motor yachts with more luxurious amenities and higher fuel consumption have a higher APA than catamarans and sailing yachts. TIP: Newer motor yachts generally have more fuel-efficient engines, which can significantly influence your overall charter price!

Destination & Fuel Prices: In the Mediterranean, fuel prices generally lie around €1.50 per liter (fuel is tax-free in places like Gibraltar and Montenegro). The Caribbean sees a broader range of fuel prices due to its dependence on imported energy, with average diesel prices at around €1.27 per liter.

Guest Preferences: For example, luxury dining requests, special activities, and docking in popular spots can all raise costs, leading to a higher APA to cover these expenses. Additionally, preferences for continuous internet access or other communications can also add to the overall costs.

Charter Broker Marcelle Hailwax from DMA Yachting

"...we are upfront about the charter fee."

“The reason why 99% of our clients get excess APA returned to them at the end of their charter is because we are upfront about the charter fee.”

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MT

Malloy Tulsa

Jun 11, 2024

An incredible experience

Very professional, communicated clearly and planned an amazing trip for us. Louis Lamprell did an amazing job connecting us with the unbridled yacht and crew. It was a trip of a lifetime. Our family highly recommends both DMA yachting and the unbridled charter. Everything was perfection!

DT

Dana Terrell

Jun 4, 2024

This was a trip of a lifetime

This was a trip of a lifetime! We booked with Nadja at DMA yachting and she made sure the entire process was easy and no problems. Our charter was with Zuri3 and our Captain Andre and First Mate Jana made our trip amazing! They made sure everything was taken care and treated us like royalty. This is not just a vacation this is an experience of a lifetime.

RS

Ryan Shirley

Feb 9, 2024

Louis was great from beginning to end and walked me through the whole process. He helped me find a great boat that fit within our time and cost preferences. He explained the differences between the different builds and the pros and cons. Once we selected the boat, he explained and walked me through the whole booking process and answered all my questions. Finally, he checked in with me before, during, and after the charter to make sure everything met our expectations. I can’t recommend Louis enough if you are planning a charter, and I will definitely be in touch for our next trip!

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