Post Charter APA Recovery (Advance Provisioning Allowance): 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.

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.

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.

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 Caribbean, charter fees are often all-inclusive, meaning the APA is already calculated into the total charter price.

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.

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.

• Yacht Delivery Fee: This fee only applies when the charterer wishes to start from somewhere other than where the yacht is based.

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.

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