Crewed Yacht Charter terms explained
There are various terms used when fully crewed yachts are offered for charter, the most common are explained below:
The Charter Agreement -
Most fully crewed charter yachts use a charter agreement sponsored by MYBA (Mediterranean Yacht Brokers Association) and adopted by CYBA (Charter Yacht Brokers Association) and AYCA (American Yacht Charter Association). The agreement specifies the particulars of the charter, payment schedules, cancellation policies and defines the rights and obligations of all parties in contingencies. Although the charter agreement might seem daunting at first, it is relatively simple especially considering you are taking charge of someone's multi-million Euro investment. Make sure that you understand the terms and provisions of the charter agreement.
Charter Rate -
Rates for charter yachts may vary according to the season, the number of charter guests, and the region in which the yacht is operating. Items that are included in the charter rate and items that are additional expenses and fees vary according to the terms under which the yacht operates. The charter agreement clearly defines the terms and the charter rate. Please note that rates in this web site are subject to change without notice until the booking is confirmed.
Fees and Expenses -
It is important from the outset to understand the terms and conditions under which charter yachts operate as well as what additional fees and expenses may be incurred on your charter. This will allow you to have a realistic assessment of your budget needs and to compare value when researching your vacation options. If there are any items you do not understand please ask us for clarification.
Operating Expenses -
Crewed charter yachts include different items in their rate depending on their type, size and the cruising area. The operating expenses (food, fuel, etc.) included or not included are determined by the operating "terms" under which a yacht is chartered. Following is a simple explanation of the common terms. The operating terms for most yachts fall into two general categories; "plus all expenses" (MYBA terms) and "inclusive" (CTI). For yachts operating under inclusive terms the meals and many operating expenses are included. Beverages are often not included but may be for some yachts. For Motor yachts operating under plus all expenses terms, a general rule for estimating expenses is to add on an additional 20% to 30% of the base charter rate. Sailing yacht expenses are generally less than those for Motor yachts.
"Plus all expenses" Explained -
When exploring luxury yacht charters for the first time one often hears the charter rate referred to as "plus all expenses". At first glance the fact that almost every item a guest will consume is an extra cost may raise an eyebrow. However, plus all expense terms are common on the larger yachts and serve to ensure that every item of your holiday is crafted to your specifications and delivered at a good value. Food and beverage provisions are custom ordered according to your direction. You select the expense level. Fuel is charged on consumption. You pay for what you use. You are free to be as extravagant as you choose. After all it is your holiday and you live it according to your budget and tastes, not someone else's. Also remember, expenses are charged to you at cost to the yacht. There is no markup. When you think about it, plus all expenses is an excellent system for a luxury yachting vacation.
Advance Provisioning Allowance (APA) -
When chartering a yacht under plus all expenses terms an Advance Provisioning Allowance of 20%-25% of the charter fee is sent to the yacht ahead of time. These funds are used to provision the yacht according to your preferences. The Captain will advise you periodically as to the disbursement of the APA. Prior to disembarkation at the end of the charter, the Captain shall present a detailed account of expenditure. The Captain shall return any unused funds in cash. Should the APA balance become insufficient during the cruise, you will be expected to pay to the Captain in cash a sufficient sum to maintain an adequate balance.
Taxes and Harbour Fees -
Most countries and island nations impose some type of cruising tax or harbor fees on charter yachts. These expenses are for the account of the charter guest but are usually only a small item in the charter budget. An exception would be the VAT imposed by European Union nations. VAT can vary between 16% and 23% of the charter fee. Not all yachts are subject to VAT. Specifics of VAT will be discussed directly with you in situations where it might be applicable.
Customary crew gratuity is 10%-20% of the charter fee based on service received and at your discretion. The gratuity should be handed to the Captain for distribution to the crewmembers
Operating Terms -
The "terms" under which a yacht operates, and lays out what items are, or are not, included in the charter rate.
Western Mediterranean Terms ( WMT ) - often referred to as "MYBA terms" (Mediterranean Yacht Brokers Association). Under WMT ( OR MYBA) terms the charter fee includes charter of the yacht and equipment, crew wages and food, ship's laundry, basic operating consumables, and insurance of the yacht for marine risk, third party claims, and the crew for employer's liability insurance.
The charterer will be charged extra, and at cost to the yacht, for all other expenses. These expenses include food and all beverages for the charter guests, fuel for the yacht and auxiliary craft, dockage, VAT if applicable, taxes, harbor fees, communications, guest laundry and shore-side electricity and water.
Most Superyachts and larger luxury crewed charter yachts operate under MYBA terms at all times and in any region. Yachts of all sizes chartering outside of the Caribbean, especially in the Mediterranean, will usually operate on a MYBA terms basis.
Caribbean Terms Inclusive ( CTI ) - For yachts operating under CTI, sometimes referred to as SCT (Standard Caribbean Terms), the charter fee includes all items on the MYBA terms plus three meals per day and fuel for four hours' cruising daily averaged over the charter. Some yachts operating under Caribbean Terms include all beverages except vintage wines and champagnes.
With the exception of most Superyachts and larger crewed charter yachts, most crewed charter yachts in the Caribbean operate under CTI.
Eastern Mediterranean Terms ( EMT ) - The charter fee includes charter of the yacht and equipment, crew wages and food, ship's laundry, basic operating consumables, fuel for four hours' cruising daily averaged over the charter, breakfast and lunch, and insurance of the yacht for marine risk, third party claims, and the crew for employer's liability insurance.The charterer will be charged extra, and at cost to the yacht, for all other expenses. These expenses include dinners if taken aboard and all beverages for the charter guests, additional fuel for the yacht and auxiliary craft, dockage, VAT if applicable, taxes, harbor fees, communications, guest laundry and shore-side electricity and water.
Gulet Terms - As above, but excludes breakfast & lunch, which is provided at an additional fixed price per person
Greek Terms ( GT ) - The charter fee includes charter of the yacht and equipment, crew wages and food, ship's laundry, basic operating consumables, water, harbor dues within Greek waters, and insurance of the yacht for marine risk, third party claims, and the crew for employer's liability insurance. The charterer will be charged extra, and at cost to the yacht, for all other expenses. These expenses include food and all beverages for the charter guests, fuel for the yacht and auxiliary craft, dockage, VAT if applicable, taxes, communications, guest laundry and shore-side electricity.
Occasionally there are differences between what some yachts may include or exclude. If you are not sure what is included in the charter fee, please say so and we will clarify the issue.