The yacht charter price typically includes the yacht's use for a specified period, crew salaries, and basic yacht insurance. Prices vary based on yacht size, age, and location, ranging from €20,000 for a week on a smaller sailing yacht to over €1,000,000 for a week on a superyacht. Fuel, provisions, and port fees are usually additional expenses you will cover.
What are the common charter agreements?
You primarily encounter two main charter agreements: Most-Prefered Terms (MYBA) and Caribbean Terms Inclusive (CTI). MYBA terms are prevalent in the Mediterranean and for larger superyachts globally. Under MYBA, the charter fee covers the yacht, crew, and yacht insurance. You pay separately for all operating expenses, including fuel, food, drinks, port fees, and VAT. This structure provides transparency and control over your variable costs.
Conversely, CTI terms are common in the Caribbean and for catamarans. These terms often present an "all-inclusive" price covering the yacht, crew, most provisions, standard beverages, and fuel for an average daily run. However, you should confirm specific inclusions, as fine wines, premium spirits, extensive cruising, and unique requests might incur extra charges. The base price for a 7-day CTI catamaran charter might range from $15,000 to $50,000, depending on the vessel and number of guests.
How does crew remuneration feature in your cost?
Crew salaries are always included in the base charter fee, whether you charter under MYBA or CTI terms. You are not billed separately for the captain, chef, stewardesses, or deckhands. Crew gratuities, however, are an additional expense. You customarily tip the crew 10-20% of the net charter fee at the end of your charter, reflecting their service quality. This gratuity is typically given to the captain for distribution among the crew.
For a €100,000 weekly charter, your crew gratuity could range from €10,000 to €20,000. This amount motivates outstanding service and compensates the crew for their dedication, often working 14-16 hour days. You should budget for this expense in advance, as it significantly impacts the crew's annual income and incentive structures. Ensure you discuss the local tipping customs with your broker before your charter commences.
What about fuel and provisioning costs?
Under MYBA terms, you pay for all fuel consumed during your charter. This includes fuel for the main engines, generators, and tenders. Fuel costs vary significantly based on cruising speed, itinerary, and yacht size. A 50-metre motor yacht might consume 500-1,000 litres per hour, equating to €750-€1,500 per hour at €1.50 per litre. Your Advance Provisioning Allowance (APA) covers these variable expenses, which your captain manages.
Provisioning, encompassing food and beverages, is also an additional cost under MYBA. You provide a preference sheet detailing your dietary requirements and desired provisions. The chef procures these items and manages the budget from your APA. For CTI charters, standard provisions are often included, but you will pay for specific gourmet requests, premium spirits, or extensive cellar wines. A family of four for a week might incur €2,000-€7,000 in provisioning costs, depending on their preferences.
What are typical port and clearance fees?
Port fees, dockage fees, and berth charges are your responsibility under MYBA terms. These costs depend on the yacht's length, the port's prestige, and the season. Berthing a 50-metre yacht in peak season Saint-Tropez can cost €1,500-€5,000 per night, while a smaller port might charge €300-€800. These fees are a significant variable expense, especially if your itinerary involves popular or exclusive destinations.
Additionally, you will cover any clearance fees, customs duties, and local taxes when cruising between countries, particularly outside the EU. These administrative costs can amount to several hundred euros per port call. You will incur additional transit log fees and taxes when chartering in countries like Croatia or Montenegro. Your APA pre-funds these expenses, and a detailed accounting is provided at charter conclusion.
How is VAT applied to yacht charters?
Value Added Tax (VAT) is a significant component of your charter cost in European waters. The applicable VAT rate varies by country and the yacht's cruising area. For instance, in France, the VAT rate for commercial charters is 20%; in Italy, it is 22%. Some countries offer reduced VAT rates for charters commencing and ending in their jurisdiction, or for yachts larger than a certain length. You could face a VAT charge ranging from 0% to 22% of the charter fee.
Your charter broker will explicitly detail the applicable VAT rate before you sign the agreement. For example, a €150,000 charter in French waters would incur an additional €30,000 in VAT. Be aware that non-EU flag yachts operating in EU waters may have complex VAT implications, often requiring a specific import regime. Do not underestimate this cost component, as it can add tens of thousands to your total expenditure.
What is the Advance Provisioning Allowance (APA)?
The Advance Provisioning Allowance (APA) is a standard payment under MYBA terms, typically 25-35% of the charter fee. For a €100,000 charter, your APA would be €25,000-€35,000. You transfer this amount to the yacht's captain prior to your charter. The captain uses these funds to cover all variable expenses during your trip, including fuel, provisions, port fees, communications, and other incidentals specified in your contract.
The captain meticulously accounts for every penny spent from your APA. You receive a full breakdown of expenditures at the end of your charter, often with receipts. Any unspent APA funds are returned to you, and conversely, if expenses exceed the APA, you will settle the difference post-charter. The APA ensures smooth operation without requiring you to carry large sums of cash, providing a transparent way to manage variable costs.
Typical Exclusions from Your Charter Price
These items are generally not included in the base charter fee and require additional budgeting.
- Crew Gratuities: You typically pay 10-20% of the charter fee as a tip directly to the captain at the charter's conclusion. Example: €15,000 on a €100,000 charter.
- Excessive Fuel Consumption: Your APA covers standard usage, but extensive cruising or high-speed runs may deplete funds rapidly, requiring top-ups. A 60-metre yacht might burn 1,000 litres/hour.
- Specialist Equipment: Certain high-end water toys or diving gear may incur rental charges if not part of the standard inventory. Confirm with your broker if you require specific items.
- Shore Excursions/Tours: Any activities ashore, such as guided tours, restaurant meals, or private events, are your responsibility. Budget €100-€500 per person per activity.
- Premium Provisions/Wines: While basic provisions are often covered by APA or CTI, specific gourmet items, vintage wines, or rare spirits are additional. These charges can be substantial.
Charter Agreement Comparison: MYBA vs. CTI
| Inclusion Category | MYBA Terms (Mediterranean) | CTI Terms (Caribbean) | Budget Impact (% of Charter Fee) |
|---|---|---|---|
| Yacht & Crew | Included | Included | 0% (Base Fee) |
| Fuel (Main & Tenders) | Additional (APA) | Included (Limited) | 10-20% |
| Food & Beverages | Additional (APA) | Included (Standard) | 5-15% |
| Port Fees & Taxes | Additional (APA) | Additional (Minor) | 5-10% |
Frequently Asked Questions
Is insurance included in the charter price?
Yes, basic yacht insurance for accidental damage and third-party liability is included in your charter price. However, this does not cover your personal travel insurance, which you must arrange independently. Ensure your personal policy covers cancellation, medical emergencies, and loss of personal belongings while on charter. Your safety remains paramount.
Can I negotiate the charter price?
Negotiating charter prices is sometimes possible, especially during off-peak seasons, for last-minute bookings, or for longer charter periods (e.g., two weeks or more). Discounts typically range from 5% to 15%. However, premier yachts in high demand during peak season often maintain their published rates. Your broker can advise on potential negotiation leverage available.
What happens if I don't use all my APA?
If your actual expenses during the charter are less than the Advance Provisioning Allowance (APA) you provided, the unspent balance is fully refunded to you at the end of the charter. The captain provides a detailed accounting of all expenditures, ensuring transparency. This process guarantees you only pay for what you consume.
Are water toys included in the charter price?
Most yachts include a standard range of water toys, such as paddleboards, snorkelling gear, and basic inflatables, within the charter price. However, specialised or high-cost items like jet skis (which often require a license), dive gear with a dedicated instructor, or chase boats might incur extra charges. Always confirm the exact inventory with your broker.
Do I pay for the crew's food and accommodation?
No, you do not pay extra for the crew's food or their on-board accommodation. These are operational expenses covered by the yacht owner or factored into the base charter fee. Their living quarters are separate from guest areas. Your APA covers only the provisions for you and your guests, not the crew's provisions. This is standard industry practice.
Key Takeaways
- Always clarify charter agreement terms (MYBA vs. CTI) with your broker.
- Budget 25-35% of the charter fee for APA to cover variable expenses.
- Account for 10-20% crew gratuity as a separate, essential cost.
- VAT can add 0-22% to your charter fee, depending on location.
- Unexpected costs are rare; transparency is a priority in yacht charter.
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