What does APA stand for and why am I seeing it in my quote, in additional to the charter fee?

APA stands for Advance Provisioning Allowance. It is a standard practice in yacht charters where the charterer pays an upfront amount to cover expenses incurred during the charter period. The APA is used to cover various expenses such as fuel, food, beverages, berthing fees, and other incidentals. All expenses are accounted for by cost price and receipts are filed as evidence of the expenses occurred. EG you have requested a seafood platter for lunch, the chef then provisions at a seafood supplier and the receipt is kept to pass on the cost price to the client. With this being said, there is no financial gain/profit to be made from the supplier of the yacht when requesting the APA, it ultimately gives you control of your own expenses and based on your preferences when our team is provisioning.  

What is the purpose of an APA?

The purpose of the APA is to ensure that the yacht is fully provisioned and operational throughout the charter, without the need for constant financial transactions during the trip. The APA amount is typically calculated as a percentage of the charter fee, usually around 20-30%, but this can vary depending on the specific terms of the charter agreement.

How the APA is managed

Throughout the charter, the captain or charter manager manages the APA and provides the charterer with regular updates on expenses. At the end of the charter, any unused funds from the APA are refunded to the charterer, or if the expenses exceed the APA amount, the charterer is required to cover the additional costs. 

APA Overall

Overall, the APA simplifies the financial aspect of yacht charters by providing a pre-funded account to cover expenses, ensuring a smooth and hassle-free experience for both the charterer and the yacht crew.