Are you tired of looking at yacht charter prices and thinking, “What am I really getting?” You’re not alone. Yacht charters are one of the best ways to travel, but the real cost of chartering a yacht doesn’t always fit neatly into one weekly rate. Once you understand how yacht charter billing works, the cost becomes much easier to budget for.
Below is a breakdown of what a yacht charter really costs, including the base charter fee, APA, VAT, delivery fees, and gratuities, so you can plan your budget accurately before booking.
1. The Base Charter Fee (The Starting Price)
The base charter fee is the listed price you’ll find on yacht charter websites or quoted by yacht brokers. This is essentially the rental price of the yacht for the charter period, usually a week (7 nights), although shorter or longer charters are possible.
Most of the time, the base charter fee includes:
- Use of the yacht for the agreed-upon charter period
- Professional crew (captain and onboard staff)
- Standard onboard equipment and amenities
- Vessel insurance (this is not personal travel insurance)
One area where your budget may grow is that the base charter fee often does not include operating expenses such as fuel, food, beverages, dockage, and other variable costs. First-time charterers are often surprised by the total cost once these are added.
As a general guideline, expect your total cost to exceed the base fee when you factor in additional expenses. Your final total will vary by yacht type (motor vs. sailing), destination, itinerary, and how much you plan to cruise, dine, and enjoy onboard.
2. APA (Advanced Provisioning Allowance)
Once you’ve paid the base charter fee, the next largest additional cost is typically APA. APA stands for Advanced Provisioning Allowance, and it functions as an onboard operating budget used to pay for variable expenses during your charter.
Think of it like this:
- The base charter fee pays for the yacht.
- APA pays for what it takes to run the yacht during your trip.
APA commonly covers expenses such as:
- Food and beverages
- Fuel and cruising costs
- Port and marina fees
- Local charges and customs fees (if applicable)
- Special requests (for example, event setups or themed dinners)
- Water sports fuel and certain activity-related costs
APA is typically set as a percentage of the base charter fee. A common range is 25% to 35%, although this varies by yacht, destination, and the charter structure.
You can learn more about how the APA system works (including how it’s tracked and what happens to unused funds) in this guide explaining Advanced Provisioning Allowance (APA) in detail.
It’s also important to note that APA is not a “hidden” fee. It’s a standard part of how most crewed yacht charters work. The captain typically manages spending during the trip and tracks costs. Any unused funds are usually returned to you after the final accounting is completed at the end of the charter.
3. VAT (Value Added Tax)
VAT can be a major cost factor for yacht charters in regions where value-added tax applies, particularly in parts of the Mediterranean. VAT is sometimes added to the base charter fee and can significantly increase the total cost.
VAT rates vary depending on the country, yacht registration, and itinerary, but commonly fall within:
- 5% to 22%, depending on the country and charter structure
VAT may apply regardless of citizenship because it is determined by where the charter service is provided and where the yacht operates.
When reviewing a broker quote, confirm whether it is:
- Plus VAT (VAT will be added to the base charter fee)
- VAT included (less common)
- Exempt / not applicable (only applies in specific scenarios)
4. Delivery Fees (Positioning / Relocation Expenses)
Delivery fees (also called positioning or relocation fees) may apply when the yacht is not already located at your desired embarkation port. In simple terms, you are paying for the cost to move the yacht from its current location to your chosen start point (and sometimes reposition it afterward as well).
Delivery fees can apply when:
- The yacht is based in one port, but you want to depart from another
- The yacht finishes a prior charter elsewhere and must reposition to start yours
- Your itinerary requires the yacht to meet you in a specific location
Delivery fees depend on factors such as:
- Distance and route
- Fuel consumption
- Crew time
- Port fees during repositioning
- Whether the yacht is traveling without guests
Short repositioning moves may result in relatively low delivery fees, whereas longer repositioning moves can significantly increase total cost. Be sure to ask about delivery fees early when comparing yacht options.
5. Gratuity (Crew Tips)
Gratuities are customary in the yacht charter industry and should be included in your budget planning. Tipping is not mandatory, but it is widely expected when service meets expectations, which is typically the case on a well-run charter.
Gratuity is usually calculated as a percentage of the base charter fee (not the APA).
Typical gratuity ranges are:
- 10% to 15% in the Mediterranean
- 15% to 20% in the Caribbean (commonly expected)
Gratuities are typically paid at the end of the charter. Payment methods vary by yacht, and your broker or captain can confirm whether they prefer cash or bank transfer.
Sample All-In Cost Breakdown
Let’s assume your yacht’s base charter fee is $80,000 per week.
A sample total could look like:
- Base charter fee: $80,000
- APA (30%): $24,000
- VAT (12% example): $9,600
- Delivery fees: $2,500
- Gratuity (10% to 15%): $8,000 to $12,000
Estimated all-in cost: $124,100 to $128,100
Conclusion
The cost of a yacht charter is not just a single number. It’s a structured combination of the base charter fee, operating expenses (APA), local tax requirements (VAT), repositioning costs (when applicable), and gratuity for your crew.
If you’re still choosing where to go, check out our 8 destinations for a luxurious and adventurous honeymoon for inspiration.
When you build your budget around these five areas, you’ll avoid surprises, feel confident in the booking process, and be free to enjoy a smooth experience on the water.
Feature Photo by Colin Chong on Unsplash
