The Advance Provisioning Allowance (APA) is an important part of the charter price of a luxury yacht.
So what is the meaning of APA when you are chartering a luxury yacht? What is the APA made of? How can you determine in advance the amount of your advance provisioning allowance?
We explain in this guide what you should know about the Advance Provisioning Allowance before you book your next luxury yacht charter.
What does APA mean when you charter a luxury yacht?
APA is short for Advance Provisioning Allowance.
As its name implies, APA is an allowance that you pay in advance before the start of your yacht charter.
The advance provisioning allowance is used to pay variable expenses that arise during your yacht charter.
Its main purpose is to simplify payments onboard. The captain has funds at his disposal to operate the superyacht. That way, he doesn’t have to bother you for every payment he has to make.
Since it is payable before the start of your holidays, the APA is an estimation.
If you did not spend your APA fully, the captain returns the remaining funds to you. If you spent more than your APA, you will have to cover the missing part.
Which expenses are part of the Advance Provisioning Allowance for luxury yachts?
Your advance provisioning allowance includes all variable expenses likely to arise during the charter of your luxury yacht.
These variable expenses depend on numerous factors. Each luxury yacht charter is unique, and you can have different APA while chartering the same superyacht to the same destination. It all depends on how you plan to experience your yacht charter.
Luxury yachts are usually big vessels. And in most cases, the bigger the yacht, the more it needs fuel.
Fuel expenses during your yacht charter also depends on your destination and activities. Transatlantic cruise will not cost the same as a yacht charter staying around a marina.
Also, sailing yachts usually use less fuel than motoryachts. So your fuel expenses on a superyacht might be different even if they have the same size.
The fuel expenses can include the delivery fee. The most notorious superyachts are chartered months if not years before departure. It is sometimes necessary to bring the yacht to its next destination before departure.
Food and catering onboard
A luxurious experience such as chartering a yacht usually comes with delicious delicacies onboard. Your crew is at your disposal to prepare your meals that can match the experience of your travel.
Your charter company will determine with you the sort of experience you are looking for during your cruise.
Whether you are into luxurious food or simple one, your choice will have an impact on your advance provisioning allowance.
If you plan on celebrating events onboard such as birthday, new year’s eve or honeymoon, your might want to increase your APA to allow some budget for these special moments.
Alcohol, cocktails and cigars
Some will like to live their luxury yacht charter experience to the fullest. Whether you are chartering a luxury yacht to party with friends, or with your family, alcohol, beverages and even cigars can be a part of your APA.
If you decide to embark with the finest whiskies, the most notorious cigars and a wide range of cocktails available, your advance provisioning allowance can be increased to match the standards you are expecting.
Mooring your yacht comes with a fee. The fee depends on several factors. Among them, the size of your yacht, the marina or whether or not it’s high season.
For example, mooring your superyacht in Monaco marina during the Monaco Grand Prix will be costlier than mooring the same superyacht in low season.
Phone & Internet costs
If you want to stay in touch with the world during your cruise, even in the most remote locations, you will have to use satellite technology.
You would be able to stream your favorite series, send important emails to your colleagues or browse your next destination directly from your superyacht.
But of course satellite connexions are more expensive than 4G or fiber technologies available on land. So your communication use will have an impact on your Advance Provisioning Allowance.
Which expenses are not a part of your Advance Provisioning Allowance?
APA includes your yacht daily variable expenses. All expenses that are not variable or that can be determined in advance are therefore not a part of your advance provisioning allowance.
The rental price of your yacht
When you charter a superyacht, the rental price is fixed and is therefore not a part of your APA.
The salary of the crew onboard
The crew salary comes together with the yacht rental on luxury yacht charters. So it is not a part of your APA.
All taxes and VAT
Taxes and VAT are determined in advance before your departure. The charter company pays directly the receiving government. They are neither a part of the yacht charter price, nor of your APA.
Charterer liability insurance, cancellation insurance or medical travel insurance are expenses that are not included in your APA as they are not a part of day-to-day operating expenses on the yacht.
However, if you have to cancel your trip, the cancellation insurance can cover your Advance Provisioning Allowance.
For more details about the overall cost of chartering a yacht, read this article.
How is my Advance Provisioning Allowance spent?
Your APA acts like a bank account available for your captain or your charter company for any expenses needed onboard.
The captain records all transactions in real-time. All expenses occurring from your APA are completely transparent. If you want to know how much of your APA is remaining or where it has been spent, you only need to ask your captain.
Do all luxury yacht charters need an Advance Provisioning Allowance?
Yes. The Advance Provisioning Allowance is automatic on all luxury yacht charters.
It’s a convenient way to keep track of your expenses without having to take care of them by yourself. Which is much needed on superyachts with large crews.
How can I estimate my APA?
The usual advance provisioning allowance brackets
APA is usually between 20% and 40% on top of the cost of your yacht charter.
Sailboats are usually using lower APA as they tend to use less fuel. So you can expect sailing yachts to have APA at around 20-25% on top of their charter price.
Motor yachts tend to use more fuel, so they will usually be on the higher end of the bracket : between 30% and 40% of their charter price.
The type of travelling experience you expect to determine your APA
Most expenses depend on activities and standards you expect from your cruise.
If you plan to do some islands hopping, crossing oceans, or using a motor superyacht, fuel consumption might be an important part of your APA.
Enjoying luxury food, finest wines paired with most exquisite cigars with a group living life to the fullest might increase your advance provisioning allowance significantly.
Mooring a superyacht in a prestigious marina at the highest season will impact your APA.
To have a precise amount of APA you need, try to picture clearly what kind of yacht charter experience you are envisioning. It will help your chartering company to budget your APA accordingly.