YACHT CHARTER COSTS EXPLAINED
When you begin planning a luxury yacht charter, it is important to be aware of what is included in the cost. Although a yacht will have a base charter fee, additional expenses may or may not appear, such as food and fuel and this is subject to the terms and conditions within the charter contract. There are numerous types of charter contracts and depending on where you wish to sail, follows a specific one.
“High season” and “low season” indicates the most busy and slow periods for yacht charters though this may produce confusion, as these peak periods often only indicates periods of weeks as opposed to full seasons.
“High season” indicates the most popular weeks of the year for yacht charter. Whether it’s the winter period in the Caribbean or the height of summer in the Mediterranean, booking in high season requires early planning, determination and a big budget. Furthermore, planning a yacht charter to coincide with a major event will also be reflected in the price with marine spots for elite events often booking up early. Allow plenty of time when making enquiries to ensure a well-prepared arrival.
“Low season” typically defines any time outside of the high season periods. We advise groups of families and friends to avoid high season, and look for weeks and periods in low season. High season is reflected in the charter cost with a price increase typically between 20-30%. The price is therefore among the benefits of chartering outside of high season, together with far less crowds.
The following article will go into details about the expected costs of planning and booking a yacht charter. Including details of the base charter fee when booking a yacht, what this fee covers, and how it may vary depending on the different contracts. Furthermore, details of how and Advanced Provisioning Allowance (APA) can be used to manage expenses.
With LYCC you can choose to spend a week or more in a superyacht, in an exotic location or several locations in the Mediterranean. If you feel spontaneous one day or don’t know if you want to charter for a longer period, day charter is also available. Here you charter a luxurious yacht for a day, cruise to secluded beaches, snorkel or dive in remote waters or dine in the sunset with your selected view. Whatever kind of vacation you wish for, we will guide you and together we will find the perfect match.
The base charter fee in its core, defines the hire cost of the yacht itself, including all equipment in working order in addition to the cost of food and wages for the crew during the entirety of the charter. This is basically all the base charter fee covers excluding the additional expenses often applicable on top. The base charter fee is not a steady fee, but will vary from one yacht to another, often depending on various reasons like onboard amenities, size and charter season. An example of this is the increased base rate of a charter yacht in “high season”, and a reduced base rate during “low season”. With special events, such as Cannes Film Festival, the 2018 Mediterranean games, Cup Palma, the Luminaria di San Ranieri and Monaco Grand Prix, high season comes in peaks periods, and the base rate fee rises, though the weather conditions often don’t differ much.
Not only seasons and events influence the price, and even when it comes to yachts of same size, it often comes down to the differences in the bare on-board amenities. A yacht with spa, cinema, gym or numerous water toys often have a higher base rate, than a yacht of same size but minimal amenities. If you find the differences in prices unclear, please ask to have it explained. Once the base rate is stated and understood, it is important also to understand what costs that will be applicable on top of the base rate.
Depending on where you are cruising, the type of charter contract applicable to your charter will differ. This because of the many terms within the charter industry which all dictate how the payment structure is laid out.
An example; a MYBA (Worldwide Yachting Association, formerly known as Mediterranean Yacht Brokers Association) contract runs under Western Mediterranean Terms (WMT) and is debatably the most frequently used, especially with large yachts embarking on a Mediterranean yacht charter. This contract is often identified as a “plus all expenses” contract and requires that the charterer pay for fuel, food, beverages and dockage fees as an additional expense on top of the base charter fee. Commonly, guests can account on an extra 25% to 50% of the base charter fee, depending, of course, on what is consumed. These expenses can be tracked through the use of an Advance Provisioning Allowance (APA) which will be covered in the section below.
In addition to the more used MYBA terms and Standard Caribbean Terms, there are also less used terms such as Standard Eastern Mediterranean Terms (SEMT) and Greek Terms (GI). If you are in doubt about what is included under the terms of your contract, be sure to ask, and we will gladly help.
As mentioned in the section “Contracts”, the “extras” can be a jungle to maneuver in. The Advance Provisioning Allowance (APA) is designed as a tool for the charterer to manage and calculate their expenses throughout the charter period. This through a clear and trackable plan. With APA the charterer can deposit the estimated expenses, covering costs such as food, fuel, dockage fees and other variable expenses.
The APA will be 30% of the total charter fee, but could be far less and far greater, depending on taste, parties and requirements. Based on the on-board expectations, all charterers can request an APA estimation from LYCC.
The APA is to be paid, one month prior to boarding the charter yacht, together with 50 % of the charter fee and is paid to LYCC directly. The captain will handle APA through a bank card, from which the captain can make expenditures whilst keeping a record of what has been spent. At any point during the yacht charter, guests can request a rundown of accounts from the captain as a way of keeping track of expenditures. The captain will request that any additional funds are paid during the charter should guests exceed the APA. If there at the end of the yacht charter is a remaining amount of the APA this will be refunded to the guest shortly after end charter.
The fuel consumed during a charter period not only consists of the fuel for the yacht, but also for the jet-skis, tenders and other motorized toys. Furthermore, while the yacht is docked at a marina the generators used in order to produce electricity also uses fuel. Additionally, the distance between destinations and the speed of the cruising also affects the fuel costs. Dockage fees varies from port to port and whether it is high- or low season.
Insurance is commonly not linked directly with the charter costs, but it is convenient to bear in mind when for example budgeting or should you need to cancel the charter. If in doubt about insurance, LYCC will be helpful in the extent possible.
In general guests should carry independent insurance for Personal Effects whilst on board or ashore and for any Medical or Accident expenses (including emergency transport evacuation) incurred.
Additionally, guests should be aware that neither Charterer´s Liability Insurance nor Cancellation and Curtailment Insurance are often not included
Should you want to disembark within for example Italian territorial waters, the European Union (EU) tax laws state the VAT will apply. Commercially registered vessels are usually VAT exempt and vessels which are not commercially registered will be accountable for VAT for all charters within the EU.
With LYCC no request is too large or detail too small on a yacht charter. It is important though to comprehend the entire payment structure to ensure no unpleasant surprises. It is therefore often practically smart to keep an escrow account with LYCC on shore in order to control charter costs without having to carry cash on board.