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What is APA? Advance Provisioning Allowance in yacht charter

The Advance Provisioning Allowance, in plain language — what it covers, how it's reconciled, and a worked Monaco-week example.

In short

The Advance Provisioning Allowance, in plain language — what it covers, how it's reconciled, and a worked Monaco-week example.

Last reviewed 3 September 2026 · By the concierge desk, Luxury Yacht Charter Monaco · Monaco

Definition

The Advance Provisioning Allowance (APA) is a working fund the client transfers to the yacht's account before the charter begins. It funds the variable running costs the yacht incurs on your behalf during the charter — everything that is not the base charter fee itself. The captain draws against it as the week progresses and reconciles the balance with you at the end. APA is not a service fee, not a tip, and not the yacht's revenue; it is your money held for your charter.

How much

APA is quoted as a percentage of the base charter fee. On a Mediterranean motor yacht, 25–35% is typical; on a fast, fuel-heavy superyacht running long passages, 35–50% is not unusual. Sailing yachts and short-range itineraries generally sit at the lower end. The charter agreement states the exact figure and payment date — usually together with the second instalment of the base fee, roughly a month before boarding.

What APA covers

Fuel for the main engines, generators and tenders. Dockage and harbour fees at every port and marina. Food and beverages for guests, including any provisioning made specifically to your preference sheet. Communications aboard (satellite data, phone). Laundry ashore. Flowers, specialist provisioning, water-toy rentals not carried by the yacht, private transfers arranged by the crew, chef's market purchases, and similar operating expenses.

What APA does not cover

The base charter fee (paid separately). VAT on the charter (paid separately, dependent on flag and itinerary). Personal expenses ashore — restaurants, hotels, shopping. Any expenses incurred by guests independently of the yacht. Crew gratuities, which are handled at the end of the charter at the client's discretion (5–15% of the base fee is the customary range).

Reconciliation and unused APA

The captain keeps a running expense log with receipts and reviews the running total with you periodically — typically midweek and again the day before disembarkation. Any unused APA is returned to you at the end of the charter, either in cash on board or by bank transfer within a few days. If the running total approaches the initial APA (long passages at speed, unforeseen provisioning), the captain will request a top-up rather than reduce service.

APA vs base fee vs gratuity

The base fee pays for the yacht itself — the vessel, its insurance, its crew's salaries, and standard maintenance for the charter period. APA covers the variable expenses of running that yacht for your specific week. Gratuities are a separate, discretionary thank-you to the crew, paid at the end and never deducted from APA. Confusing the three leads to preventable disputes; a good agent walks a first-time client through all three before signing.

Worked example — a Monaco week

Consider a 40m motor yacht chartered for one week from Monaco at €200,000 base fee, with a 30% APA. You transfer €60,000 APA a month before boarding. Over the week: fuel and generators for a Monaco–Saint-Tropez–return itinerary at moderate speed, roughly €18,000. Dockage in Cannes and Saint-Tropez, roughly €12,000. Provisioning to a chef-led preference sheet with premium wines, roughly €14,000. Miscellaneous — laundry, flowers, communications, tender fuel — roughly €4,000. Total draw against APA: around €48,000. Your captain returns roughly €12,000 the morning of disembarkation. A gratuity of 10% (€20,000) is added on top at the end of the charter.

Practical notes

APA is not negotiable in the sense of being optional, but the percentage can occasionally be adjusted where the itinerary is very short or very slow. Never accept an unusually low APA figure without asking why — it usually means a top-up mid-charter, which is neither elegant nor pleasant. Your concierge should walk you through the expected draw before you sign, so the reconciliation at the end is a formality, not a surprise.

By the concierge desk · Monaco

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