What is an APA?

Published June 10, 2024

Updated January 6, 2025

What is the Advanced Provisioning Allowance?

On a Mediterranean crewed yacht charter, the Advanced Provisioning Allowance (APA) is a fund that acts as a 'kitty' to cover all of the food, drink, fuel, mooring fees and operational costs incurred while on your charter.

An APA is a standard practice in the chartering of luxury yachts across the Mediterranean. On all yachts operating under MYBA terms, the APA amount is outlined in the charter agreement, and is usually set at around 30% of the charter fee. In the Caribbean, though, these costs are usually rolled into a single, all-inclusive total charter fee.

It is a separate fund or allowance that the charter party (the person or group renting the yacht) provides in addition to the base charter fee.

The APA system helps streamline the financial aspects of yacht charters, making it easier for charterers to see where their money is going and allowing them to customise their charter experience.

It also ensures that the yacht’s crew can provide a high level of service and meet the charterer’s preferences without financial constraints.

Below is how it all works.

APA breakdown

Separate Account

The lead charterer places a sum of money via wire transfer into an APA account before the charter begins.

This account is very secure, and only the captain has access to the funds.

The amount is typically a percentage of the base charter fee, often around 20-30%, but this can vary.

Expenses Deducted

During the charter, the captain and crew use the APA to cover various expenses incurred while accommodating the guests’ needs and preferences.

This includes fuel for the yacht, provisioning (food and drinks), docking fees, water sports equipment, and other expenses.

Transparency

The captain keeps detailed accounts of all expenses and provides regular updates to the charterer.

Typically, the charterer is given access to view these expenses to ensure transparency.

Reconciliation

What Happens at the End of the Charter?

At the end of your charter, your Captain will present you with a final account of all expenses.

  • Insufficient APA: If the APA runs out before the end of the charter, the captain will inform the charterer, and additional funds may be required to cover ongoing expenses.
  • Excess APA: If there are unused funds at the end of the charter, the remaining balance is refunded to the charterer.

Any remaining funds in the APA account will be returned directly to your account. If the total expenses exceed the APA, you would be required to settle the balance.

How is your APA calculated?

The Advance Provisioning Allowance (APA) is typically calculated as a percentage of the charter fee for a crewed yacht. This percentage can vary depending on several factors, such as the size of the yacht, the destination, the length of the charter, and the specific needs and preferences of the charterer. Here's how the APA is generally calculated:

Steps to Calculate APA

  1. Determine the Charter Fee: Start with the base charter fee, which is the cost of renting the yacht itself. This fee is usually agreed upon and stated in the MYBA crewed charter contract.
  2. Apply the APA Percentage: APA is commonly set at around 20-30% of the base charter fee. The exact percentage can vary, so it's essential to confirm the specific rate with your HELM charter broker.

Factors Influencing APA Percentage

  • Yacht Size and Type: Larger yachts or those with higher fuel consumption or more luxurious amenities might have a higher APA percentage due to increased operational costs.
  • Destination: Some cruising areas have higher fuel, provisioning, and docking costs, which can affect the APA percentage.
  • Charter Duration: Longer charters may require a higher APA to cover extended operational expenses.
  • Guest Preferences: Specific requests for high-end food, premium beverages, special equipment, or extensive cruising can increase the required APA.

When do you pay your APA?

Your APA needs to be paid several weeks before the charter, so your crew can buy the provisions and get familiar with your preference sheet.

This makes sure they are well stocked with any and everything you may need, ready for you to board and enjoy the vacation of a lifetime.

Your APA usually falls due at the same time as your final balance payment.

Who can access and spend your APA?

Your Captain is the only person in control of the APA fund.

During your charter, the captain manages the APA fund and keeps a detailed account of all expenses.

You can request to review the account at any time, and the captain will keep you updated throughout your vacation on how the funds are being spent.

Example APA

Below is the breakdown of an example APA from a client's recent 8-person charter in the Saronic Gulf on Lagoon 52 ONEIDA

The client paid a €4,000 APA, and expenses came to €3,740. The client was reimbursed the €260 credit at the end of the charter.

We hope you find it instructive and useful when planning your own expenses for your charter.

Breakdown

  • APA deposit: €4,000
  • Starting Provisions: €695
  • Athens Bakery: €4,000
  • Butcher: €101
  • Fishmonger: €363
  • Alcohol: €674
  • Delicatessen: €210
  • Poros Port Expenses: €30
  • Poros Bakery: €20
  • Aegina Port Fees: €50
  • Additional Provisions, Extra Bottles of Wine: €631
  • Taxis to Epidavros Ampitheatre: €100
  • Vegatables, Bakery, Additional Beer: €53
  • Port Fees: €30
  • Fuel: €741

Total: €3,740

Need some help?

If you are unsure about charter or boat selection, contact us at HELM to help you decide.

We only choose boats that are in excellent condition, and we are here to help you every step of the way and to make sure the whole process is as easy as possible.

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