Owning a superyacht is an incredible feat as it requires a lot of money to buy and maintain one—even more than any regular Joe can afford. Because of this, superyacht owners turn to charter their vessels to recover from the tall costs of owning this type of watercraft.
Fortunately, there are many people who wish to experience life in the waters without sacrificing comfort. Although they are only renting the luxurious vessels, these people still spend a significant amount of cash to have this one-of-a-kind experience. These are also reasons why superyacht chartering is most popular among celebrities and businessmen who need some time off from their hectic-yet-financially rewarding careers.
Plus Expenses Vs. All-Inclusive Charter Price Structure
There are two kinds of price structures being offered by yacht charter companies: the Plus Expenses and the All-Inclusive.
As the name implies, the Plus Expenses charter price structure entails separate rates for the use of features and amenities while on the cruise. Usually, the only things you are paying for upfront in this type of price structure are the crew and water toys. Others—like food, beverages, fuel, dockage, transport, taxes, crew gratuity, transport, communication, water and electric utilities— are paid separately.
As for the All-Inclusive price structure, the charter rates include almost everything mentioned above, except for dockage, communication, transport, and crew gratuity. There are also instances when taxes are already covered in this type of charter price, but it is important to note that this is not always the case.
What Makes Superyacht Charters Expensive?
With the number of people going on cruises in mind, it is safe to say that the cost of chartering superyachts is known to be high. However, what is relatively unknown to most is the reason behind their soaring prices.
To help clear things up, we have listed down 6 factors that contribute to the high price of superyacht charters.
1. Dates for the Charter
Like going on a vacation on land, chartering watercraft can be expensive when done during peak seasons. Peak seasons are known as the dates when most people are taking a break from their daily routines and are out on vacation.
For chartering, peak seasons occur when the destination is under the best circumstances. This means that things like the weather, the calmness of the waters, and the occurrence of attractions like festivals and international events may indicate whether or more people will be heading out into the waters for those particular dates.
Alternatively, chartering during off-peak dates often costs lower. Of course, the circumstances may not be at its finest.
2. Features, Size, Status, and Reputation of the Vessel
The feature, size, and status of the superyacht also play a role in how much the price of a charter is determined. The base prices for sailing boats range from $10,000 to $200,000 a week depending on its size. Motored yachts are priced higher, with a range of between $15,000 and $500,000 a week. Catamarans, on the other hand, have similar price ranges as vessels that aren’t motor-powered although the sizes of the vessels offered are significantly smaller.
A yacht’s reputation may also bring the price higher. This means that vessels that were previously owned by celebrities or are manufactured by famous builders are priced higher than their regular counterpart. Added features and amenities may also cause the price to soar.
3. Destination and Charter Contract
Two other big factors in the cost of chartering a superyacht are the destination and type of charter contract. There are several kinds of contract available, including the Mediterranean Yacht Brokers Association (MYBA), Caribbean Terms Inclusive (CTI), Standard Eastern Mediterranean Terms (SEMT), among others.
An MYBA charter contract is relatively common as it includes charges for food and drinks of the guest. This doesn’t include the provisions for the crew. Other things the charterer would pay for within this contract include dockage and harbor fees, fuel, among others.
Meanwhile, CTI charter contracts have an “all-inclusive” price structure. The base price would cover three daily meals and four hours-worth of cruising a day, including the fuel used for the cruise. It is important to note, however, that fuel used for water toys are not covered in the base price.
Aside from these two, there are several other charter contracts to choose from, including the SEMT. This particular contract only includes breakfast and lunch as guests are presumed to be dining ashore during the evenings.
4. APA or the Advance Provisioning Allowance
No matter which charter contract you choose, it is imperative that you know the Advance Provisioning Allowance well enough. This amount shall be used to “provision” or gather supplies needed for your charter. The price will be based on the contract. If your contract is a “plus expenses” price structure, you need to send an APA of about 20 to 25 percent of your charter fee. On the other hand, “all-inclusive” charters only require 5 percent.
5. Insurances and Taxes
Charterers may also opt to pay for insurances which will cover possible curtailment of the cruise or forced cancellations. It is wise to get such insurances under the expert advice of a charter broker.
Taxes, on the other hand, vary depending on where you plan to go. The Bahamas requires 4 percent tax while Croatia and Greece mandate 13 and 12 percent Value-Added taxes, respectively. Of course, some places, like Montenegro and Turkey, have no VAT while others— like New England— don’t require payment of tax.
6. Other Potential Expenses
Crew gratuity, delivery fees, sat comms, Internet fees, and even cost of laundry may also contribute to the cost of your superyacht charter. While these things may seem minute, it is best to understand that having a good understating of the details of your contract can help you save more money while retaining the fantastic effects of going on a cruise in a luxurious watercraft.