Crew Gratuities on Yacht Charters: What to Expect
When planning a yacht charter, one topic that often raises questions—especially among first-time charterers—is crew gratuities. It’s a sensitive topic, but an important one. Understanding how gratuities work, what they’re based on, and why the norms vary by region helps charterers budget correctly and ensures the crew is rewarded fairly for their service.
Below is a clear and straightforward guide you can confidently share with clients or use as a reference in your brokerage work.
What Are Crew Gratuities?
Crew gratuities are a discretionary tip given at the end of a yacht charter to thank the crew for their service. Although not mandatory, they are considered standard practice in the global yachting industry.
A yacht crew works long hours behind the scenes—often 16–18 hours per day—to deliver a seamless experience. From preparing meals and planning itineraries to maintaining water toys and keeping the yacht spotless, their contribution directly shapes the overall guest experience. Gratuities are the industry’s way of acknowledging this service.
What Are Gratuities Based On? (And What They Are Not Based On)
Gratuities are always calculated on the base charter fee, not the total cost including VAT or APA.
What Does a Typical Gratuity Look Like?
The standard gratuity varies by region. While there's no universal rule, the industry has settled into clear norms:
Mediterranean (including France)
10–15% of the base charter fee
The Med has historically followed European tipping culture, where gratuities are appreciated but less aggressive than in the U.S. Crew compensation is also structured differently, with many yachts offering seasonal bonuses or higher fixed salaries.
United States & Caribbean
15–20% of the base charter fee
U.S. tipping culture plays a major role here. Service industries across the board follow higher expectations, and yachting aligns with this. U.S.-based charters also tend to emphasize personalized, high-touch service, which clients often choose to recognize generously.
Rest of the World
Regions like the Indian Ocean, South Pacific, or UAE generally follow Med-style tipping around 10–15%, unless the yacht operates under U.S.-style standards.
How Are Gratuities Handled During a Charter?
The process is simple and designed to keep guests comfortable:
1. Handled at the end of the charter
No one pays gratuities upfront. It’s a way to thank the crew after the service has been delivered.
2. Given to the captain
The captain receives the gratuity envelope or wire transfer and distributes it evenly among the crew based on an internal system.
3. Completely discretionary
Guests have full freedom to tip less, more, or not at all based on their experience. However, most clients follow the regional norms unless service was exceptionally poor or outstanding.
4. Deduct it from APA
If you have any funds left over in your APA account at the end of the charter you can leave those funds as (part of) the crew tip.
Why Crew Gratuities Matter
Gratuities play a meaningful role in crew motivation and service quality. While yacht crew earn a base salary, gratuities can represent a significant portion of their total annual income—especially during busy charter seasons.
A fair gratuity:
Reinforces exceptional service
Motivates crew for future charters
Helps retain talented professionals
Reflects well on the charterer, the broker, and the overall experience
From a broker’s perspective, guiding clients properly sets expectations early and prevents awkwardness at the end of the trip.
