How much does it cost to charter a yacht?

Take a look at the different factors which influence the cost of chartering a yacht...

Chartering a yacht is an experience unlike any other. The ability to cruise different destinations, feel the salty breeze in your hair, lounge on the sun deck and soak up the tropical heat, and have a dedicated Captain, chef and crew to make your experience as relaxing and enjoyable as possible – it’s like your very own private floating hotel.

If you are tempted by the allure of a yacht charter, know that you are not alone. But before diving in head-first, there are various factors you should consider so that you know what to expect.

Firstly, how much can you expect a yacht charter to cost?

The Cost of a Yacht Charter

When it comes to the cost of a yacht charter, there is not any one standard price tag that can be applied. The cost of the charter will depend on a variety of factors, including:

1. AGE OF THE YACHT

The newer the model, the more expensive you can expect the charter to be.

2. SIZE OF THE YACHT

Generally speaking, larger yachts are considerably more expensive to charter than smaller vessels.

3. NUMBER OF CABINS

The number of guests you have on board and how many will be staying on board will dictate how many cabins you need. In general, more cabins equals a higher cost, even if the yacht size stays the same.

4. TIME OF YEAR

Certain times of year are vastly more popular for yacht chartering than others. As you can imagine, the summer months are particularly popular, and as such you can probably expect prices to be dearer.

5. DURATION OF THE CHARTER

It goes without saying that the longer you intend to charter the yacht for, the more expensive the charter fee will be.

6. DESTINATION

Some charter destinations are considerably more expensive than others, which will in turn impact your charter fees to ensure the Owner covers expenses.

7. TYPE OF YACHT

The age-old question, sailing or motor? Depending on what type of yacht you choose to charter, this will have an impact on the overall charter fee.

Average weekly charter fees

Sailing yacht (2021): EUR 87,000

Motor yacht (2021): EUR 144,000

Average weekly charter fee in 2021: EUR 130,000

Average weekly charter fee in 2022: EUR 180,000

Whilst the charter fee is generally the largest sum you will pay for the yacht charter, it’s not the only cost to bear in mind. The charter fee covers the cost of the hire of the yacht, the crew and the yacht’s insurance, but there are additional costs that you will incur throughout a charter experience that will be added on top of the initial charter fee.

ADVANCED PROVISIONING ALLOWANCE (APA)

The advanced provisioning allowance is an additional fee that covers the operational expenses you will incur throughout your charter experience. If the charter fee is the cost of hiring the yacht itself, think of this as the running cost for the duration of your charter.

So what is included within the APA? Here’s a typical example list, however other costs can also be included:

Fuel
Berthing fees
Custom charges
Food and beverages
Laundry
Communications costs

Your APA will be paid before the charter as a percentage of the charter fee (usually around 25-40%). Your Captain will keep an eye on expenditure throughout the charter and is obliged to notify the guests when there are limited funds left. Sometimes guests are required to top up the APA throughout the charter if they go over the limit, but this is dependent on what costs are incurred – for example, the expense of the food and drinks ordered.

Equally, if there are leftover funds that have not been used from the APA throughout the charter, this is reimbursed at the end of the vacation.

GUIDELINE TO LOCAL TAXES

For most countries, a VAT rate will be added on top of the charter fee. But how much you are obliged to pay and to whom will depend on the location of the charter and the legislations within those countries.

In EU countries, the VAT is due in the country that the charter begins, although there are of course exceptions, for example if starting in a non-EU state and ending in an EU country, you will only have to pay VAT on the days you were travelling inside EU waters.

VAT Rates in Different Charter Locations

France and Monaco: 20%

Italy: 22%

Spain: 21%

Croatia: 13%

Turkey: 20%

Malta: 18%

Bahamas: 14%

*Rates are subject to change, so please check with your charter broker for the latest details.

The rules on VAT and local taxes can change regularly and vary depending on registration, flag state etc., so if you are unsure what extra costs you will have to pay on top of your base rate, it is best to ask your broker who will be able to advise based on current VAT guidelines.

GRATUITIES

When chartering a yacht, you will have a dedicated Captain and crew who will tend to your every need whilst on board the vessel. From taking you to your desired destinations to preparing alfresco meals, arranging your laundry, booking restaurants and activities and cleaning the yacht – they are there to make your experience as relaxing and enjoyable as possible.

The base charter fee covers the Captain and crew’s basic wage, but it’s customary for guests to pay a gratuity at the end of the charter, which will usually be shared equally amongst the crew members.

Whilst the exact amount you choose to pay is entirely down to personal discretion, we usually would recommend guests to tip around 10-20%. That said, it’s worth noting that the expected gratuity may vary depending on the location of your charter, and what you decide to leave to the crew is entirely up to you and how you feel about your experience.

Continuous support for a smooth and efficient process

Whether it’s your first charter or your hundredth, we know how challenging the financial side of yacht chartering can be. They are complex waters to navigate, so it’s best not to struggle with it alone.

A dedicated charter broker will be able to advise, support and guide you through the costs and fees involved with yacht charter, and will ensure you find the perfect yacht to fit your budget. With all the technicalities and finer details in hand, you can sit back, relax and start counting your days until you climb on board and enjoy an unforgettable vacation.

If you would like to find out more about the costs of yacht charter, or would like support in booking your next charter experience, please get in touch with our charter broker team.

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