The Charter Cost Explained: What’s Included In A Luxury Yacht Charter?
A luxury yacht charter is an unforgettable experience, offering freedom, privacy, and world-class service. Whether you are seeking a relaxing vacation in the Mediterranean, a family-friendly yacht exploring the Caribbean, or an adventurous off-the-beaten-track journey, our IYC fleet offers a wide range of options.
However, those new to yachting may wonder how the cost of a yacht charter is calculated and what is included to begin enjoying a yachting vacation. To help you understand the financial side of chartering a yacht, here we have broken down the key components of what makes up charter pricing:
The Base Fee
The main percentage of each yacht charter cost is the base charter fee, which primarily covers the use of the yacht and all onboard facilities, the services of the professional crew, and the inventory of entertainment systems and water toys. The price of chartering a yacht varies significantly depending on what the yacht offers and in what destination.
This fee enables you to enjoy the yacht but includes no operational expenses such as food, fuel, or docking fees. These additional costs are covered separately through the Advance Provisioning Allowance (APA).
Understanding The APA
The Advance Provisioning Allowance (APA) is an upfront payment used to cover variable expenses incurred during the charter. Typically set at between 25% and 40% of the base charter fee, the APA covers fuel costs for cruising and the tenders, food and beverages, port and docking fees, and miscellaneous expenses, including any special requests or additional provisions.
The yacht’s captain manages the APA and keeps a record of all spending. At the end of the yacht charter, you will receive a full breakdown and any unused funds will be fully refunded.
VAT And Local Taxes
Taxes and VAT on your yacht charter cost will vary depending on your chosen cruising destination. These charges are applied as a percentage of the base charter fee and can impact the total cost of the charter.
Greece typically has favorable VAT and tax rates compared to other Western Mediterranean destinations. Taxes and VAT fluctuate based on local regulations, and your charter consultant can discuss the specifics with you when confirming the charter price.
Delivery And Redelivery Fees
If you wish to begin or end your yacht charter in a location that differs from a yacht’s home port, a delivery or redelivery fee may be charged.
These costs will cover the fuel needed to move the yacht to the starting location, crew expenses, and any logistical arrangements for relocation. To avoid these extra charges, you may want to opt for a yacht already based in your preferred cruising area.
Crew Gratuities
While tipping is not mandatory, it is customary to show appreciation for the crew’s high level of service at the end of your vacation. The gratuity is typically based on 10-20% of the charter fee and given directly to the captain to be distributed among the rest of the crew.
Book Your Yacht Charter Today
When booking a yacht charter with IYC, we offer a unique ‘Reserve’ function, allowing you to reserve your preferred yacht and dates online immediately, authorizing a 5% deposit to place a private reservation.
Once a booking is confirmed, we provide a legally binding contract, a Charter Agreement (MYBA), outlining the terms and conditions. Our expert consultant will then work with you to curate a bespoke itinerary before you join the yacht and begin your vacation. Contact us today to learn more about booking a yacht charter.