What is APA? Advanced Provisioning Allowance
When booking a luxury yacht charter for your client, the term APA (Advanced Provisioning Allowance) often comes up as part of the financial discussion. For first-time charterers, understanding this concept is crucial as it directly impacts the overall experience and ensures smooth sailing during the journey.
What is APA?
APA, or Advanced Provisioning Allowance, is a deposit paid upfront to cover the variable expenses of the yacht charter. These expenses go beyond the charter fee and include the operational costs incurred during the voyage. Think of it as a prepaid expense account to ensure that the yacht is fully provisioned and ready for your specific preferences and itinerary.
What Does APA Cover?
APA covers the flexible, day-to-day costs associated with running a yacht charter. These expenses can include:
Fuel: For cruising between destinations, operating onboard equipment, and tenders.
Food & Beverages: Tailored to your preferences, including premium wines, spirits, and special dietary requests.
Dockage Fees: Charges for berthing the yacht in marinas at various destinations.
Crew Gratuities: While optional, tips for exceptional service are often factored in.
Special Requests: Costs for arranging events, excursions, or specific equipment like jet skis or dive gear.
How Does APA Work?
Deposit: The APA is usually 20–30% of the charter fee, depending on the yacht and charter location. This amount is added to the total charter agreement and paid before the trip starts.
Expenditures: Throughout the charter, the captain keeps a detailed account of all expenses, ensuring complete transparency. Clients can request to review the spending during or after the trip.
Reconciliation: At the end of the charter, any unused APA funds are refunded to the client. If expenses exceed the initial APA amount, clients are required to settle the additional costs before disembarking.
Why is APA Necessary?
The APA system ensures a seamless, customized charter experience. It allows the yacht's crew to fully provision the vessel with your preferences in mind, without any delays or disruptions during the voyage. It also provides flexibility—allowing for spontaneous adjustments to your itinerary, whether you decide to dock in a luxury marina or extend your cruising distance.
What to Expect with APA?
Personalization: APA funds are directly tied to your specific choices. Opt for lavish gourmet meals, rare wines, or additional toys like seabobs, and the costs are deducted accordingly.
Transparency: Reputable charter companies ensure clear reporting on how APA funds are used. The captain typically provides regular updates if requested.
Control: While APA is essential, you remain in charge of the scale of your spending. Whether you opt for understated elegance or no-holds-barred luxury, the experience is tailored to your preferences.
Planning for APA in Your Budget
It’s essential to remember that the APA is not an additional cost—it covers expenses you would likely incur during your yacht charter. When budgeting for a charter, account for the APA alongside the base charter fee to avoid surprises.
