What Is The APA?

The APA is a budget paid before your charter begins to cover the variable operating costs of your time on board. Typically calculated as a percentage of the charter fee, the APA is transferred to the captain or the IYC yacht management team before you step aboard.

Unlike the charter fee, which covers the yacht itself and its fixed operating costs, the APA pays for expenses that depend entirely on your itinerary and personal preferences. These can include fuel, food and drinks, marina fees, water sports, shore excursions and any bespoke requests you make during your charter.

Importantly, these expenses are charged at cost. Under standard MYBA charter agreements, neither the yacht owner nor the broker adds a mark-up to purchases made through the APA. Every expense is carefully recorded, and at the end of the charter you'll receive a full breakdown of how the funds were used. If your spending is less than the original allowance, the remaining balance is refunded. If you've exceeded the budget, you'll settle the outstanding amount before leaving.

Why Is APA Separate From The Charter Fee?

Every yacht charter includes both fixed and variable costs. The charter fee covers everything that remains the same, regardless of how you spend your holiday. This includes the yacht, professional crew, insurance, maintenance and standard onboard equipment.

The costs that change from one charter to the next depend entirely on how you choose to cruise. You might spend your days exploring secluded anchorages with minimal fuel consumption, or travel longer distances between destinations. You may prefer simple Mediterranean lunches with local wines or gourmet dining paired with vintage Champagne. Marina fees can also vary considerably depending on where you are.

Keeping these expenses separate allows every charter to be personalized without inflating the charter fee to cover every possible scenario. It also means you won't need to approve individual purchases throughout your holiday, allowing the crew to focus on delivering a seamless experience.

What Does The APA Cover?

The APA pays for the day-to-day running costs of your charter, based entirely on how you choose to enjoy your time on board.

• Fuel: Fuel is often one of the largest expenses, particularly on motor yachts. This includes fuel for the yacht's main engines, generators, tenders and water toys.
• Food and beverages: Before your charter, you'll complete a detailed preference sheet covering everything from dietary requirements and favorite wines to children's meals and special celebrations. Using this information, the chef provisions the yacht specifically for your group, ensuring every meal reflects your tastes. Whether you prefer fresh local seafood and regional wines or premium ingredients and fine vintages, the APA covers these personalized provisions.
• Marina and port fees: Where you choose to berth also influences your APA. Anchoring in secluded bays is often free, while overnight stays in sought-after destinations such as Monaco, Saint-Tropez or Ibiza can carry significantly higher marina fees.
• Activities and special requests: The APA can also cover additional services arranged during your charter, including local guides, shoreside transport, permits, excursions, laundry and other bespoke requests made throughout your trip.

What Isn’t Covered By APA?

Some costs are already included within the charter fee and therefore aren't paid from the APA. These typically include:

• The yacht and its permanently installed equipment
• Crew salaries
• Insurance
• Routine maintenance
• Standard onboard supplies
• Linen and towel laundering
• Crew gratuity is also separate from the APA and remains entirely at your discretion.
• VAT is charged on the charter fee, not on the APA.

How Much APA Should You Budget?

The amount varies depending on the yacht and can vary from 25-40%. The rate is set by the yacht’s CA/owner.

But typically, motor yachts require a higher APA because fuel consumption is greater, particularly when cruising at speed and sailing yachts tend to have lower fuel costs, although provisioning and marina fees remain important factors.

Destination also plays a role. Cruising the French Riviera, for example, will typically involve higher marina and provisioning costs than a charter in Greece or Croatia.

How Is The APA Managed?

Throughout the charter, the captain carefully manages the APA and keeps detailed records of every purchase, from fuel receipts and marina invoices to provisioning bills. Should spending begin to exceed the original budget, the captain will discuss this with you and explain the available options. Small adjustments, such as spending more nights at anchor or shortening cruising distances, can help keep costs in line with your expectations.

And the best way to manage your APA starts before you even step on board. Completing your preference sheet in as much detail as possible helps the crew provision accurately and avoid unnecessary purchases. Sharing your preferred cruising style is equally valuable. Whether you'd like to visit a new destination every day or spend long, relaxed afternoons anchored in quiet bays, these decisions all influence fuel consumption and marina costs.

Your charter consultant and captain can also advise on how different itineraries or preferences may affect your overall budget.

What Happens At The End Of A Charter?

At the end of your charter, the captain prepares a full reconciliation of your APA, complete with receipts and a detailed breakdown of every expense. If there are unused funds remaining, they are refunded to you. If your spending has exceeded the original allowance, you'll settle the balance before leaving the yacht. This transparent process ensures you know exactly how your budget has been used throughout your charter.

Ultimately, the APA is what allows a luxury yacht charter to feel seamless. Behind the scenes, it gives the crew everything they need to deliver a seamless, highly personalized experience, leaving you free to relax and enjoy every moment. Reach out to the IYC team today to chat about your upcoming yacht charter and the APA budget.