What Is APA? A Guide to Advance Provisioning Allowance for Superyachts
Image Source: Aurora Superyacht
In the prestigious world of high-end travel, luxury superyachts are renowned as one of the most prestigious ways to traverse the world. These exquisite vessels offer exceptional comfort, style and hospitality in a home away from home at sea. When it comes to managing the logistics of a superyacht charter, consideration and careful planning are required to ensure all expected expenses are catered for during the trip. This is where the Advance Provisioning Allowance - also known as APA - comes in. This article provides a detailed guide of what the APA does and does not cover, what you can expect to pay and its importance in ensuring a smooth and effortless superyachting experience.
What Is Advance Provisioning Allowance (APA)?
Image Source: Oscar II Superyacht
When chartering a luxury superyacht, it’s not uncommon for you to provide an advance provisioning allowance, in order to cover certain costs during your trip. This could range from fuel and mooring fees, to food and other incidentals, which ensures the captain and the crew can meet your charter services and expenses without delay and without interrupting your experience. The captain will keep a running log of all APA outgoings, so you can clearly see your expenses in an itemised manner at any time during your trip.
What Is The Significance Of An APA?
Image Source: Evolution Superyacht
The importance of having an Advance Provisioning Allowance in place is having the ability to streamline the variable financial aspects of chartering a superyacht. Depending on your preferences, the itinerary, and certain activities, these expenses can vary and need to be carefully managed throughout the trip. Rather than dealing with constant transactions and payments yourself, the APA simplifies the process by using the lump sum to cover any spendings as they arise. This allows you to focus on enjoying your time onboard the superyacht charter.
How Is The APA Cost Calculated?
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The advance provisioning allowance is typically calculated as a percentage of the superyacht charter fee. This can range from anywhere between 20-50%. The exact amount may vary depending on the charter company, the location of the charter, the type of vessel being chartered and if you have any personal preferences during your trip. For sailing superyachts, you may expect to pay around 20-25% on top of the charter fee, as they tend to use less fuel. Whereas motorised superyachts may be between 30-50%. The estimated amount is then transferred to the yacht's operating expenses account before the trip begins. Usually about a month prior.
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What Expenses Are Covered By The APA?
Image Source: Oneworld Luxury Superyacht
Fuel
Luxury superyachts are known for being larger vessels. Therefore they can often use more fuel, depending on a number of factors. If you’re island hopping in the Whitsundays, for example, you may use more fuel compared to mooring in the marina. If your charter superyacht has water toys like a jet skis and a tender, this can also increase the cost of your APA. As mentioned before, sailing superyachts will likely use less fuel than motorised vessels as they can harness the power of the wind instead of motoring everywhere.
Onboard Catering
Your private charter company can work with you to plan out your luxury superyacht experience and cater to your preferences. Whether you’re wanting a fine dining menu or a more simple one, this can determine how much you’ll need to factor into the Advance Provisioning Allowance budget. Luxury goods such as top-tier alcohol, liqueur, cigars or any other specialty cuisines can be requested, and the APA will simply be adjusted to accommodate the costs.
Mooring and Marina Fees
Whether you're chartering a small monohull or a luxury superyacht, if you plan on spending any time mooring in a marina, you’ll have to pay a fee. This fee will vary depending on the size of your charter vessel, where the mooring is located in the world, how many nights you stay docked and whether or not it’s high or low season. For example, mooring your charter superyacht in the Coral Sea Marina or Hamilton Island Marina during Race Week in August will cost more than mooring in the low season in May, June or July.
Telecommunications
Staying connected to the internet and phone while out at sea is possible thanks to satellite communications. Even in the most remote regions of the world, you can continue to get work done and make important phone calls. Having access to this satellite technology will come at a price though, so consider this when calculating your Advance Provisioning Allowance for your superyacht charter.
What Expenses Are Not Covered By The APA?
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The Superyacht Charter Fee
The fee to charter a superyacht is a fixed price that is separate from the APA. This fee is what the APA percentage is based on. Quite often, when you see an advertised price for a superyacht charter, this is the base fee, unless it states that it is all-inclusive.
Salary Of The Onboard Staff
Most of the time when chartering a superyacht, the salary of the onboard crew, from the captain to the deckhand and hostess, will be packaged into the base charter fee. This will not be an additional expense covered by the APA.
Taxes, GST/VAT and Insurances
Any taxes, GST/VAT and insurances that occur as a result of chartering a superyacht are not included in either the APA or the base charter fee. Your charter company will usually pay taxes directly to the local government. It is recommended that you get charter liability Insurance, cancellation and medical travel insurance to cover any unexpected situations that may arise.
Is The Advance Provisioning Allowance Mandatory?
Image Source: Pleiades II Luxury Superyacht
All luxury superyachts have a standard APA fee. This acts as an expenses account to help the captain and the crew make necessary outgoing payments for provisions and keeps a track record of all associated charter costs mentioned above. Meaning you can enjoy your charter experience, without having to worry about the financial side of every transaction. It would be rare to find a superyacht charter that doesn't have a standard APA fee.
What Happens If I Don’t Use All Of The APA?
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If, at the end of your charter there are any unused funds sitting in the APA account, the remaining balance will be refunded back to you. In the case where expenses have exceeded the initial Advance Provisioning Allowance, you, the charterer, may need to provide additional funds to cover the excess expenses. The captain, or an authorised crew member can provide you with the list of account outgoings and advise you where the balance is sitting at any time during your superyacht charter.
Image Source: Lady Pamela Superyacht
The Advance Provisioning Allowance (APA) is a key component of the superyacht charter industry, streamlining the financial aspects of luxury travel on the high seas. By pre-allocating funds to cover variable onboard expenses, the APA lets you enjoy the journey without the hassle of onboard financial transactions.
Interested in chartering a superyacht through the Whitsunday Islands? Speak to our friendly private charter travel experts via our live chat or call +61 74914 2425!
