We’ve got the answers… Everything you need to know about Advanced Provisioning Allowance (APA)
The world of yachting can be full of strange words and abbreviations, and here at Samui Luxury Boat we know it can be a little confusing.. So here is a little guide to one of the main ones when it comes to chartering a yacht – About APA yacht charter (Advanced Provisioning Allowance).
What is APA in yacht charter?
APA stands for Advanced Provisioning Allowance. How exactly it works and why it exists may seem confusing. With this in mind, the Samui Luxury Boat team thought it would be a good idea to break things down and start from the beginning, so here goes!
What is APA for?
When chartering a yacht, the charter fee generally only covers the rental cost of the yacht, and any crew that come with it. So how do you pay for fuel or provisions for your trip? This is where APA comes in. It is an additional fee which will cover all these extras, such as food, drink, fuel, berthing costs, customs, communications… APA (Advance Provisioning Allowance) is the standard system to pay your expenses on a luxury yacht charter. The APA essentially creates a bank account for the Captain (and chef) on the yacht to provision on your behalf.
How does APA work?
APA is generally calculated as a percentage of the charter fee, which you then pay in addition, before the charter commences. The broker or the captain will use this allowance to stock the boat, and fuel up. Any left over money will be returned to the client, at the end of the charter. Whilst on board, the captain will be in charge of the APA and has to keep any receipts necessary, as record for you, the client. He/she should also keep you updated as the charter progresses, of how much is being spent, and anything else you need to be aware of.
APA will apply, as standard on pretty much most professional yacht charters, and is close to obligatory for all luxury yacht charters.
When does APA apply?
APA will apply, as standard on pretty much most professional yacht charters, and is close to obligatory for all luxury yacht charters. There are a few sailing yachts and motor yachts, more commonly in regions such as South East Asia which offer all inclusive packages. The difference with a luxury yacht charter and an all inclusive trip, is that on a luxury yacht charter you personally choose, in advance, whatever you would like to have on the yacht. Therefore if you want the best Champagne and the rarest selection of cigars, wine and the finest of meats, caviar etc.. you must pay for it, from the APA. The broker and the yacht crew will happily source and select all provisions on your behalf, they need the funds in order to do so, hence the APA.
How much is APA?
The amount varies from yacht to yacht, but is generally between 30% and 40% of the yacht charter fee. For example, it will be higher if the yacht has a higher fuel consumption, if you plan on doing lots of travelling, if you order the finest and most expensive brands of champagne, wines etc…
How do I pay the APA?
APA is payable in advance of your yacht charter, and normally at the same time as paying your initial charter fee. This is usually by bank transfer.
What happens if my APA does not cover the expenses on the yacht charter?
In the event that you ‘overspend’ your APA, you will need to pay up, before disembarking. You may be obliged to top up the APA during the yacht charter.
What if the APA yacht charter is more than I would like to spend?
If for example, you have budgeted €xxxxx to spend on expenses, but the APA is double that figure, you will still need to pay the APA in advance. However, you should communicate carefully your expenses budget with the broker and the Captain. If you put realistic constraints on the budget for food and drinks, then the Captain will do his/her best to stay within this budget. If the Captain and yacht broker know the figure you want to work with, then they will be able to assess how feasible it is in advance, and for example; adapt the planned itinerary to meet your budget, in terms of fuel spend. With clear communication, realistic budgets, and advanced provisioning, it may indeed (depending on your requests and the yacht) be possible to spend a lot less than the APA and have the difference returned to you at the end of the yacht charter.
Any other questions? Please don’t hesitate to get in touch with Samui Luxury Boat, and one of our friendly and knowledgeable staff will be waiting to help!
Written by Chris Mills
London born Chris is the founder of Samui Luxury Boat, applying his passion for customer service to create an ambitious and innovative brand. Over 7 years of experience in the yacht charter industry have made him an expert in his field. Whatever your query is, Chris offers the perfect solution with a smile. With his motivation and dedication, Chris and his team add the extra degree in yachting.