APA — Advance Provisioning Allowance, explained.

APA — the concierge's honest explainer

APA stands for Advance Provisioning Allowance. It is one of the two headline numbers on any Mediterranean or worldwide yacht charter — the other being the base charter fee — and it is where first-time charterers most often ask questions that deserve a straight answer.

The short version: APA is a working float, not a hidden fee. It sits alongside the base fee, funds every expense the yacht incurs on your behalf during the week, and is reconciled to actual spend at the end of the charter. Anything you don't spend, you get back.

The rest of this page walks through the arithmetic, what APA covers, what it doesn't, and how the reconciliation actually works from a Monaco-based concierge desk.

Why the yacht world uses APA

A charter yacht is a self-contained operation. Over the course of a week she burns thousands of litres of fuel, provisions for twelve guests and a crew of ten, pays overnight berthing in a rotation of ports, and services a preference sheet that can include anything from a specific vintage of Krug to a florist run in Bonifacio.

None of that can be quoted flat in advance. Fuel depends on the route the guests actually take; provisioning depends on the preference sheet; berthing depends on which ports the week ends up visiting. APA is the mechanism the industry evolved to fund the working budget without pretending it can be forecast to the euro.

The alternative would be a base fee that inflated to cover every conceivable variable — expensive for guests whose charters run light, and still requiring end-of-week reconciliation for anything unusual. APA is more honest and, on well-run yachts, more transparent.

How APA is calculated — a worked example

APA is set as a percentage of the base charter fee. The industry standard bands are:

Mediterranean summer, standard cruising: 25–30% of base fee.

Mediterranean summer, Corsica / Sardinia / Balearics longer passages: 30–35%.

Caribbean high season: 30% typical, 35% for demanding preference sheets.

UAE / Red Sea / Indian Ocean: 35–40%, reflecting higher local costs and imported provisioning.

Worked example. A 50-metre motor yacht chartered from Monaco for €280,000 base fee with an APA at 30% would carry an APA float of €84,000. Total pre-charter transfer to the central agent: €364,000 plus any applicable VAT on the base fee. At the end of the week, if the yacht spent €71,000, €13,000 is refunded. If she spent €89,000, the client settles the €5,000 balance at disembarkation.

What APA covers

Fuel. Yacht main engines, generators and tenders. Usually the largest single line on the reconciliation, particularly on longer-passage weeks.

Provisions. All food, wines, spirits, beers, soft drinks and specialist grocery. Chef-led menu planning to the preference sheet is included in the base; the ingredients themselves are APA.

Berthing and port fees. Overnight and day dockage in each port the yacht visits, including harbour master fees, water and shore-power connections.

Communications. Satellite phone and data, on-board wifi where usage exceeds the yacht's standard package.

Guest-requested expenses. Florists on board, specialist provisioning (a case of a specific champagne, a request for particular ingredients), laundry, ashore transfers where booked through the yacht, event tickets booked by the yacht on the guests' behalf.

What APA does NOT cover

The base charter fee itself. APA is on top of the base, not a component of it.

Crew gratuity. Customary at 5–15% of the base charter fee, paid directly by the client at the end of the charter. Not part of APA and not deducted from the APA float.

VAT on the base fee. Where applicable (standard 20% in France, reducible under the French Commercial Exemption where the itinerary qualifies), VAT is calculated on the base fee and charged separately.

Ashore expenses booked in the guests' name. Restaurant bills paid direct to the venue, beach-club day beds paid on account, private security engaged separately.

Large one-off expenses. Helicopter charter for the day, submersible operations, one-off event hospitality — where these are pre-agreed with the client they can be paid through APA (which is then increased); otherwise they are billed separately.

The end-of-charter reconciliation

The purser tracks every APA line daily. On the last morning of the charter — or on request at any point during the week — the captain and purser present a full itemised statement: fuel to the litre, provisioning by category, berthing by port, communications, laundry, specialist services.

The reconciliation is settled with the central agent, not with the yacht or the crew directly. Unused APA is refunded to the client's account within seven to fourteen days of the reconciliation; any balance owed is settled at disembarkation.

LYC Monaco reviews the reconciliation on the client's behalf as part of the standard post-charter debrief. Any line that is not clear, or that appears out of pattern for the itinerary, is queried with the central agent before the refund is released.

APA budgeting — what to expect for your week

APA draw varies significantly by itinerary and preference. A displacement Riviera week cruising at 12 knots with a modest wine list draws far less than a Corsica-and-Sardinia week at 22 knots with premium vintages.

Light-draw week: APA reconciles at 60–70% of the float. Refund of 30–40% of APA.

Standard-draw week: APA reconciles at 90–100% of the float. Small refund or small balance owed.

Heavy-draw week: APA reconciles at 105–115% of the float. Balance owed at disembarkation.

Before you sign, LYC Monaco walks through the expected APA draw for your specific brief — cruising route, guest count, preference notes and any pre-flagged premium provisioning. The APA percentage on the contract is set to leave a modest refund rather than a modest balance owed, which is the pattern most guests prefer.