Yacht Charter Costs Explained...
Here is a comprehensive breakdown of your charter costs and fees your should expect.
When you plan a luxury yacht charter it is important to be aware of what is included in the cost of booking your dream charter yacht. Although a yacht will have a base charter fee, this usually do not include additional expenses such as food and fuel.
Base Charter Fee
The base charter fee in essence refers to the hire cost of the yacht itself, with all equipment in working order, including tender.
All other costs; like fuel, food, drinks, docking, etc.. are not included.
With our charters, we include cost of food and wages for the crew during the entirety of the charter and include all laundry as well.
The base charter fee will vary from one yacht to another and this may be down to any number of reasons from size and on board amenities to the charter season. For instance, the base rate of a charter yacht may increase in "high season" and reduce during the "low season". "High season" and "low season" refers to the busiest and slowest periods for yacht charters though this may appear misleading, as these peak times refer to periods of weeks as opposed to full seasons.
In addition, you may find that a yacht is also more expensive during special events such as the Monaco Grand Prix, Cannes Film Festival and America's Cup. Unless you are keen to charter a yacht for a particular "high season" event, choose your dates carefully as although a "high season" rate will be more expensive than the "low season" the two can sometimes share much of the same weather conditions.
Aside from seasons and events, yachts of the same size may also differ in price and this may be down to a vast difference in on board amenities. A yacht which boasts an on board cinema or lavish water toys may have a higher base rate compared with a yacht of minimal amenities of the same size. If it is unclear as to why two yachts of the same size are vastly different in price, ask your yacht broker to explain what the differences are.
Advance Provisioning Allowance (commonly referred to as APA)
Irrespective of the charter contract it is important for guests to be aware of the Advance Provisioning Allowance (APA). The APA was designed to enable charterers to manage their expenses through a clear and trackable arrangement. An APA is a way to deposit the estimated expense amount of your charter to cover costs such as fuel, food and dockage fees.
Usually, the APA is approximately 30% to 40% of the base charter fee, for APA examples, sign up into your member account here.
Of course APA amount depend on the charter parties tastes and requirements and could be far less or far greater than this estimation. For instance, charter guests who intend to regularly dine on caviar, champagne and vintage wine can expect to pay more. Charterers can request an estimated APA amount from the yacht broker based on their on board expectations.
The APA is to be paid approximately 2 weeks prior to boarding the charter yacht, as Captain might have to book marinas in advance, and as well as ordering anything special you would like to see on board.
The Captain will make accounts daily, including all invoices and receipt as well as daily fuel burned.
At any point during the yacht charter, guests can request a rundown of accounts to the captain as a way of keeping track of expenditures and APA level. The captain will request that any additional funds are paid during the charter should guests exceed the APA; this can be done either by bank transfer or onboard in cash or by credit card.
It is therefore a good idea to keep an additional account with your yacht broker on shore, as should the APA become critically low at any time the yacht broker can release additional funds to the captain on the charterers command. Cash can be used if necessary though an on shore account may be deemed as hassle free to some.
It is important to remember that food and fuel for example, are charged at cost without mark up to the charterer.
Upon disembarking, transactions can be reviewed by the "head" charterer and Captain with any remaining funds to be paid back to the charterer.
Tender, jet-ski, seabob
Both tender and jet-ski are included on board; only gasoline might be charged to you.
Please note to be able to use them yourself, you will have to show captain a valid seaman licence.
In any case the Captain or the Second will be able to drive you anywhere you whish with both toys.
SeaBob is not included; we usualy rend it locally and renter charges around 200 euros per day SeaBob is on board.
It is important to remember that whilst considering fuel costs, the fuel consumed when using jet-skis and tenders will also apply to the charterer.
On HeartBeat of Life SuperYacht, we include them for 4 hours of use per day.
In addition, whilst docked at a marina the generators used in order to produce electricity will also use fuel. The distance travelled and speed of cruising also affects fuel costs and it is important to bear these factors in mind.
For fuel price examples, sign up into your member account here.
Dockage fees may vary from very little to large sums and this is dependent again upon the location and whether you wish to dock during a special event such as the Monaco Grand Prix.
For instance; into Formentera in summer, price is about 1,200 euros per night (period of 24h).
Bear also in mind that in some marinas, we need to book largely in advance to be sure we will get space, also not any marina can receive a 30 meters yacht.
Vessel comes fully insured and Passengers as well though what is called a P&I insurance.
It is useful to bear in mind you might to take out Charterers Cancellation Insurance.
Value Added Tax (VAT)
European Union (EU) tax laws state VAT will apply to all charters contracts. Our Company is based in Spain, and the VAT rate is of 21%.
Although you might have a European Company with a VAT number, the VAT amount will apply, exaclty like hotels and restaurants; as service is given into Spain country.
APA are not subjected to VAT.