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Tag Archives: how much to tip on a yacht charter

Plus All – Understanding The True Cost Of A Luxury Yacht Charter Vacation

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Photograph of superyacht crew in white outfits and standing at ease around owners of yacht who are wearing black. Man seated and woman in black dress standing over him. Crew in a v-formation around them.

 

WHAT DOES “PLUS ALL EXPENSES” MEAN?

One of the most common questions posed to charter brokers is, “What does, ‘plus all expenses’ mean?  A very fair question.  It is critical to understand the implications.  In specific, since the cost to enjoy a Mediterranean yacht charter holiday, for example, is more than expected. For instance, based on prices posted on most charter brokers’ websites.

RUNNING EXPENSES

Superyachts are the large, ultra-luxurious vessels that we associate with cruising. Specifically, the Côte d’Azur in the South of France in Monte Carlo for Monaco Grand Prix yacht charters.  These yachts set a rate for the rental of the yacht and the crew.  In addition, they list the price as, “plus running expenses.”  This means that the charterer pays a set price for the yacht.  Additionally, the charterer is responsible to cover ALL costs associated with the operation of the yacht while the charterer and his/her guests are onboard.

Typical running expenses incurred during a charter are food, beverages, dockage, and fuel. 

UPON WHAT DOES IT DEPEND?

It depends first, upon the size of the yacht and second, the charterer’s penchant for elaborate menus. In addition, extended cruising and vintage alcohols.  These running expenses can vary greatly from yacht to yacht. Furthermore, from charterer to charterer. 
You might ask
“When and how do you pay for these expenses, especially since it is hard to itemize them prior to the conclusion of the trip?” 

APA – Advance Provisioning Allowance

The Advance Provisioning Allowance, or “APA” for short, is a deposit.  Specifically, it is paid by the charterer.  The yacht skipper collects this prior to the commencement of a superyacht holiday.  These funds are held by the skipper.  They are dispersed during the course of the charter. Further, they cover the ongoing running expenses as they occur.
During the charter, the captain provides a running account of the usage of the funds.  At the conclusion of the voyage, the captain presents an itemized accounting of expenses to the charterer.  In addition, a refund of any unused funds.

WHAT IF WE RUN OUT OF APA?

An APA balance sometimes runs low during the charter.  The client then provides the captain a sufficient amount in cash to cover the needs for the remainder of the charter.  Many charterers prefer not to carry quantities of cash.  The charter broker holds additional funds and releases them.  Usually via bank wire transfer, to the captain as needed.  

Before you book your yacht charter, ask your broker for a solid estimate of the running expenses that might be incurred. Your broker takes into account the food and beverage preferences you request, along with how much cruising you wish to do (which will determine the amount, and anticipated cost, of fuel needed), to create an estimate of your expenses.  

VARIABLES TO RUNNING EXPENSES

There are numerous variables to estimating running expenses.  The computation is best tabulated by your broker and the yacht’s skipper.  For instance, depending upon local market availability in your desired cruising ground, food prices may vary greatly from your hometown.  Dockage can range from no fees when anchored away from shore.  The dockage can run to thousands of dollars per day, when docked at exclusive marinas.  For special events, like Cannes Film Festival yacht charters, dockage can run two to three times the standard rate.   Fuel costs are important to estimate as well. As such, they skyrocket depending upon how fast and how far you cruise.

EDITOR NOTE

Fuel is also charged for the yacht’s generators when not connected to shore power. In addition, for tenders and water toys.  You pay for the fuel used while zipping around on the waverunners. 

 

HOW TO PLAN APA COST?

As a general rule of thumb, the APA requested for sailing yachts is approx 20% of the yacht’s listed charter price.  On the contrary, motoryacht average APA jumps to 30-40%.  

Sample anticipated total cost of a proposed Italian yacht charter vacation. Specifically, for a fictitious client and nine guests for one week on a 180 foot Trinity yacht charter vessel. 

Motor Yacht Rental                                          € 350,000
Advance Provisioning Allowance (APA)*        122,500
Total Cost                                                          472,500
*estimated at 35% by the charter broker after discussing the charterer’s preferences as to food, drinks, and desired itinerary. Many exclusive alcohols and food items….lots of cruising costs to visit multiple destinations.

GRATUITY

A question often asked about is the “optional”  crew gratuity. Gratuities for exceptional service are routine in the charter industry.  Charterers believing in tipping should budget for this optional expense.  

HOW TO RENT A YACHT


For a glimpse of the newest yachts available for hire, check out our website.  Visit 1-800 Yacht Charters online at https://www.1800yachtcharters.com/newest-yachts/

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Tips for Traveling with Credit Cards

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Photograph of a stack of 4 credit cards. The bottom card is a gold card, then a black card, then a dark blue card, then a silver card. They are a bit blurred so that you can't read the information. All cards feature chips.

You’ve been planning your Croatia yacht charter for months.  The skipper has called to report that the weather is fantastic, and the yacht’s chef has provisioned the sailboat with all of your favorite foods.  Your bags are packed, and your flight boarding pass is in your coat.  

Now, your focus turns to money – how much cash should you carry, and which credit cards should you take on the trip?

Of course, traveling with too much cash can be dangerous if it is lost or stolen.

Learning to travel wisely with your credit cards can save you time and money. This is especially true when traveling abroad due to currency exchange rates and foreign transaction fees.

 

FOUR TIPS FOR CREDIT CARDS

First, review fees.  When choosing which credit cards to bring on the trip, take a look at the fees for each card. Select the card or cards with the lowest foreign transaction fees.  Find out about any conversion fees – many credit card companies charge currency conversion fees when you use your card in a country that doesn’t normally transact in U.S. dollars.

Second, reward yourself.   Consider any cards that offer travel rewards; you might as well rack up as many flight miles as possible.

Third, call Your Credit Card Company.  Let them know you’ll be enjoying a luxury sailing charter in the Mediterranean.  The point is not to gloat, but to let them know that your card usage in a foreign place is legit. Otherwise, your card might be denied when you try to purchase something.

Finally, Choose the “Local Currency” Option.  Whether at a shop, taverna, or restaurant, always ask the clerk to process the credit card using the local currency option. If the card gets processed using U.S. Dollars, you may be charged a fee to convert those greenbacks into the local currency.  This is in addition to any foreign-currency transaction fees from your credit card company.

 

TRAVELERS CHECKS

With traveler’s checks a relic of the past and cash too risky to carry, credit cards can be a great convenience when abroad.  Remember to look through your cards and find the one with the lowest fees, and the best rewards points.  A little planning now can save a lot of headaches (and dollars) later…

HOW MUCH DO WE TIP THE YACHT CHARTER CREW

Note – most mega yacht charter crews do not carry credit card processing equipment onboard, and cannot accept credit cards for the crew’s gratuity.  Click to learn more about customary tipping policies HERE.   

 

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