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Boat & Yacht

How Much is a Private Yacht Charter?

When it comes to calculating the price of a private yacht charter, there are a few factors you should keep in mind.

In general, there are three categories of charter: All-inclusive, Plus-expenses, and Crew gratuities.

These three categories vary significantly, as do the prices for each. In this article, you’ll learn about the differences in cost between each type of charter.

Ultimately, your price will depend on your expectations.

How much does it cost to charter a yacht?

High season

The Mediterranean is one of the world’s largest yacht charter grounds, and the high season runs from July to August.

If you’d rather avoid the crowds and the price tag, consider taking a yacht charter in shoulder season, which runs from April to May and September to October.

These months are typically free of tourists and offer better berth availability.

In addition, you can enjoy the warm waters of the sea without the crowds.

Generally, winter and summer seasons overlap, so the high season in one destination might coincide with the low season elsewhere.

There are a few reasons why a particular time of year is considered high season.

The summer season is the busiest, and the winter months are the least popular.

However, the summer and winter seasons are also popular times for chartering yachts, and there is no better time to plan a trip in one of them than during these seasons.

If you are planning a luxury yacht charter vacation, you should research which months are best for cruising.

This will enable you to pick a better charter yacht. If you are traveling for a long period, it is best to book a charter during the shoulder seasons, as the crew may not be available or there may be a crew shortage.

A luxury yacht charter is one of the most expensive vacations a person can take, so it is worth researching when to book it.

All-inclusive

All-inclusive yacht charters offer a wide variety of amenities and services, including onboard amenities, drinks and snacks.

These charters also include access to a fully-stocked open bar. Other amenities include onboard activities, water toys, and use of the yacht’s amenities.

Unless otherwise noted, all-inclusive yacht charters also cover many of the boat’s costs, including fuel and customs fees.

The in-house culinary staff prepares multi-course meals with a fully stocked bar, and guests pay a single amount for the entire charter.

All meals and drinks are included, but SCUBA diving and other activities may be extra.

The crew will do everything possible to ensure your comfort and enjoyment, anticipating your requests and providing excellent service throughout your trip.

In addition, the crew will provide water toys for the enjoyment of guests.

Some of the amenities on board are included in the price. If you plan to bring your own snacks or alcohol, you will have to budget for tipping.

On average, tipping on an All-inclusive private yacht charter is 15% to 20% of the base rate.

In other words, you can expect to spend AUD125 per person for a week of cruising on an Adventure-class luxury yacht.

Similarly, a luxury yacht charter with a crew may cost you a minimum of AUD1000.

An All-inclusive private yacht charter can also be customized to suit your needs.

A fully crewed charter will feature a captain and a private chef on board.

In addition to providing high-quality services, these yachts are well-equipped to cater to the needs of the guests.

Guests may be able to choose the type of entertainment they want and even choose the menu for the entire experience.

You can also choose between a luxury All-inclusive yacht charter or a less luxurious captain and crew-only charter.

Plus-expenses

When booking a luxury motor or sailing yacht, you may find the rate structure includes “plus expenses.”

These are additional costs, such as fuel, food, and drinks ordered or consumed while on board.

You’ll also find “APA” and “plus expenses” in the rate structure of other types of charters.

While “plus expenses” doesn’t always mean you’re paying for everything on board, it’s still important to know the difference.

While APA is paid in advance, the amount is often much higher than the base charter fee.

The amount is usually twenty to thirty percent of the charter fee.

The Captain will present a detailed breakdown of the expenses he’ll incur during the charter.

Clients will get a refund of unused funds on the last day of the charter.

Plus-expenses charters are the most popular choice for discerning yachters who want a luxury vacation with minimal out-of-pocket costs.

Prices vary according to location and type of yacht. For instance, in Capri, docking fees can be several hundred dollars, while in Sardinia, they can be several thousand dollars.

Insurance and food can add up quickly, and taxes, ranging from four percent in the Bahamas to twenty-one percent in Spain, can add up quickly.

Fuel costs can also be costly, with larger yachts costing upwards of $1000 an hour.

Crew Gratuities

While gratuities for the crew on a private yacht charter are typically left at the end of a charter, some guests may prefer to leave a tip right away.

Guests are encouraged to leave 10 to 15 percent of their charter fee, which reflects their satisfaction with the service provided.

Guests may also choose to leave cash directly to the captain. The captain can then divide the gratuity evenly with the crew.

A guest may also wait until the final reconciliation of the charter account to give their crew a tip.

In the event that the yacht is staffed with a large crew, some brokers recommend tipping them as much as three hundred dollars per day.

This is based on the assumption that a crew member works a double shift when the charter guests are aboard and a full shift when the yacht’s owner is on board.

If you agree with this range, then you should count up the crew members and multiply by the number of days you plan to spend aboard.

If the crew does an exceptional job, leave a tip for them. Remember that the owner of the yacht (usually a bank) owns the yacht, so the captain will go above and beyond to ensure a pleasant charter for the guests.

While it’s customary to leave a tip for the crew, don’t expect to walk away with stacks of cash.

A small tip goes a long way, so it’s always a good idea to leave some extra money.

Ship Size and Type

The selection of a private yacht depends on several factors. First, consider the number of guests joining you.

The number of people in the group will affect the dynamics of the group, and determine how much space the yacht will need.

A yacht with cramped quarters will suit some people, but others may want more space.

For this reason, ship size and type are important factors to consider.

Here are some tips on choosing a private yacht.

The cost of a private yacht charter will vary according to the number of passengers and the type of vessel.

Normally, luxury yachts are larger and more expensive than cruise ships.

Nonetheless, cruise ship prices are still lower than that of a private yacht charter.

If you’re traveling alone, you may choose to book the lowest-priced cabin.

You can also opt for a smaller ship if you have children.

The number of occupants and the activities you want to do on board will also determine the size of the yacht.

While couples with children might enjoy the privacy of a small yacht, older adults or pregnant women will need more facilities and space.

Consequently, you should factor in the number of bathrooms when determining the size of a yacht.

A general rule of thumb is that a yacht should be large enough for two adults and one child.

Taxes

There are two basic ways to determine taxes on a private yacht charter.

Depending on where you plan to charter, you might have to pay a higher or lower amount.

In some countries, taxes are not deductible at all, especially in the Mediterranean, where you must pay 20 percent to 24 percent VAT.

However, some regions of Europe have lower or no VAT. In such a case, it is usually cheaper to hire a boat rather than pay extra for fuel.

Final Thoughts

If you’re planning to claim tax benefits from a private yacht charter, be prepared to provide a basic Income Statement for the activities of your charter.

The examiner may request a list of items, so make sure that you tailor these to suit your specific situation.

Besides, you may also need to provide proof of your commercial license.

And finally, be prepared to submit all your necessary paperwork for the IRS.

While it may seem confusing to calculate VAT on a private yacht charter, it’s not impossible.

The VAT rate on charters in the EU is 20%. The rate is reduced to 10% if the yacht travels to or from other EU countries.

The VAT rate is still applicable for delivery fees and redelivery fees as well.

VAT on yacht charters is not simple, as each member state has its own set of rules.

However, this can be mitigated by the fact that yachts are used within EU territory and the Ownering Company must be VAT registered.

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