What is an APA?
The Advanced Provisioning Allowance (APA) is a money used as a “kitty” on a Mediterranean crewed yacht charter to cover all of the food, drink, fuel, mooring fees, operating costs paid for.
Standard procedure in the chartering of luxury vessels all throughout the Mediterranean is an APA. Usually set at roughly thirty percent of the charter charge, the APA amount is stated in the charter agreement for all vessels running under MYBA rules. In the Caribbean, however, these expenses are typically combined into one, all-inclusive charter rate.
Apart from the base charter cost, the charter party—that is, the individual or group renting the yacht—supplies a separate fund or allowance.
The APA system enables charterers to know where their money is going and lets them personalize their charter experience, therefore helping to simplify the financial elements of yacht charters.
It also guarantees that the crew of the yacht can satisfy the tastes of the charterer and offer a high degree of service free from financial limitations.
Here is the whole process.
APA breakdown
Separate Account
Before the charter starts, the lead charterer funds an APA account with wire transfers totaling a sum.
Only the captain has access to the very safe money in this account.
Usually a percentage of the base charter charge, the number varies but is usually between 20 and 30%.
Expenses Deducted
The captain and crew cover different expenses using the APA during the charter, therefore meeting the demands and preferences of the visitors.
This covers yacht fuel, food and drink provisions, docking costs, water sports gear, and other expenses.The captain and crew pay different costs using the APA during the charter, therefore meeting the demands and preferences of the visitors.
This covers yacht fuel, food and drink provisions, docking costs, water sports gear, and other expenses.
Transparency
The captain regularly updates the charterer from his thorough records on all expenses.
Usually, the charterer is allowed to inspect these expenses to guarantee openness.The captain regularly updates the charterer from his thorough records on all expenses.
Usually, the charterer is allowed to inspect these expenses to guarantee openness.
Reconcilliation
Your Captain will show you an ending account of all expenses at the end of your charter.
- Inadequate APA: Should the APA run out before the charter’s expiration, the captain will notify the charterer; further money may be needed to cover continuous expenses.
- Excess APA: Should unneeded money remain at the end of the charter, the charterer gets returned that excess balance.
Any last money in the APA account will be sent straight back to yours. Should the whole expenses beyond the APA, you would have to pay out the difference.
How is your APA calculated?
Usually for a crewed boat, the Advance Provisioning Allowance (APA) is computed as a percentage of the charter cost. The size of the yacht, the destination, the length of the charter, and the particular demands and tastes of the charterer will all affect this proportion. The APA is computed usually as follows:
APA Calculation Strategies: Steps
- Find the charter fee:Starting with the base charter cost—that is, the boat rental fee—consider Usually agreed upon and stated in the MYBA crewed charter is this charge.
- Apply the APA Percentage method. Usually set at roughly 20–30% of the initial charter cost is APA. The precise percentage can change, thus it’s important to verify the particular rate with your Luxury Catamaran charter broker.
Factors Influencing APA Percentage
- Larger boats or those with more luxury facilities or higher fuel usage may have a higher APA % because of their running expenses.
- Destination: The APA percentage may change depending on some sailing areas having more fuel, provisioning, or docking expenses.
- Longer charters could call for a greater APA to cover more long-standing running costs.
- Specific requests for upscale cuisine, fine beverages, specialized tools, or long-distance cruises can raise the necessary APA.
When do you pay your APA?
Your APA must be paid several weeks prior of the charter so your crew may purchase the provisions and familiarize themselves with your preference sheet.
This guarantees that they have everything you could possibly need, ready for you to board and savor the lifetime of a trip.
Usually, your APA comes due concurrently with your final balance payment.
Who can access and spend your APA?
- The only person on charge of the APA money is your captain.
- The skipper oversees the APA money and records all expenses thoroughly during your charter.
- You can ask to check the account at any moment; the captain will keep you informed on the way the money is being used during your trip.
