Understanding the Cost Structure of a Crewed Yacht Charter under MYBA Contract

What Is Included in a Crewed Yacht Charter? A Complete Cost Breakdown Under MYBA Standards

When researching a crewed yacht charter, most people begin with a single number: the weekly charter fee. While that figure is accurate, it represents only part of the total cost structure. Professional yacht charters follow a defined framework that separates fixed costs from variable operating expenses.

In the Mediterranean and much of the global charter market, this framework is set by the MYBA Charter Agreement. Understanding how MYBA structures costs allows charterers to budget accurately and avoid confusion later in the process.

What the Charter Fee Covers

Under MYBA standards, the charter fee is a fixed contractual amount. It covers the use of the yacht for the agreed charter period, delivered in full working order and compliant with applicable safety and commercial regulations.

The charter fee includes the services of a properly qualified crew. Crew wages, uniforms, and food are included, as is the insurance of the vessel and crew in accordance with the charter agreement. Standard onboard equipment is also included, along with basic consumable stores required for normal operation across the engine room, deck, galley, and guest areas. Laundry of ship's linen and towels is included.

These elements do not fluctuate based on how the yacht is used during the charter.

Why Operating Costs Are Separate

Crewed yacht charters are inherently variable. Fuel consumption depends on cruising distance and speed. Food and beverage costs depend on guest preferences. Marina fees depend on itinerary and season. Shore-side transport, permits, and optional services vary from one charter to the next.

For this reason, MYBA separates operating expenses from the charter fee. Instead of embedding estimated costs into a single price, expenses are charged at cost based on actual use. This approach avoids averaged pricing and ensures transparency.

The Role of the APA

Operating expenses are managed through the Advanced Provisioning Allowance, commonly referred to as APA. The APA is a pre-funded operating budget, typically calculated as a percentage of the charter fee.

APA is used to pay for fuel, food and beverages for the charter party, port and marina fees, local taxes and permits related to operation, shore-side transport, communications where applicable, and any agreed additional services or equipment.

The Captain is responsible for managing the APA and is accountable to the charterer for its use. During the charter, expenditure is monitored and communicated. At the end of the charter, a detailed account is presented with supporting documentation. Any unused balance is returned to the charterer.

A detailed explanation of APA and how it functions in practice is available at:
https://www.frontieryachting.com/blog/apa-explained-yacht-charter-costs

VAT on Yacht Charters

VAT applies to yacht charters in many jurisdictions and is calculated on the charter fee. The applicable rate depends on the country of embarkation, the yacht's flag, and local regulations.

Rates vary significantly by destination. For example, Mediterranean countries apply different VAT percentages, while many Caribbean destinations do not charge VAT on yacht charters. In many cases, VAT also applies to delivery or repositioning fees at the same rate as the charter fee.

The exact VAT treatment for a specific charter should always be confirmed before booking.

Delivery and Repositioning Fees

If a yacht is not already located at the agreed embarkation port, delivery or re-delivery fees may apply. These fees reflect the cost of repositioning the yacht and typically include fuel, crew time, and port charges.

Delivery fees are quoted separately and charged at cost. Local VAT may apply depending on jurisdiction. In some cases, delivery costs can be reduced or avoided if consecutive charters align geographically.

Crew Gratuity

Crew gratuity under MYBA is entirely discretionary. Industry guidance commonly suggests a range of five to fifteen percent of the charter fee, depending on the level of service provided.

Gratuities are not included in the charter fee, are never deducted automatically, and should not be solicited.

A Realistic Cost Example

To illustrate how the structure works in practice, a charter with a weekly charter fee of €100,000 may result in a total cost in the range of approximately €145,000 to €185,000. The final amount depends on factors such as VAT rate, cruising distance, fuel consumption, marina usage, provisioning preferences, delivery fees, and crew gratuity.

These costs are not hidden. They arise from the way the yacht is used during the charter.

Why the MYBA Framework Exists

The MYBA Charter Agreement was developed to bring clarity and consistency to the yacht charter industry. By defining which costs are fixed and which are variable, it protects the interests of charterers, owners, crew, and brokers.

A step-by-step explanation of how a charter operates under this framework can be found here: https://www.frontieryachting.com/blog/how-a-luxury-yacht-charter-works-step-by-step

Planning with Transparency

A professionally structured yacht charter should be straightforward to understand. When costs are explained clearly under the MYBA framework, charterers can make informed decisions and plan with confidence.

Additional factual guides on charter costs, agreements, and planning are available at: https://www.frontieryachting.com/blog

Maritime Insight Group
Havenlaan 86C
1000 Brussels
Belgium

Daniel Vermeer

Frontier Yachting is an independent yacht charter brokerage based in Antwerp, Belgium. The company specialises in worldwide crewed yacht charters with a primary focus on the Mediterranean and Caribbean. It works with a wide range of professional charter vessels, including sailing yachts, luxury catamarans, motor yachts, and boutique mini cruisers.
Frontier Yachting collaborates with established charter partners, trusted yacht managers, local agents in key destinations, and professional crews. While the company remains independent, it operates within the global network of certified charter providers and industry professionals who supply the yachts and services selected for each booking. These collaborations allow Frontier Yachting to offer clients a curated portfolio of reputable vessels that meet international safety and hospitality standards.
All charters booked through Frontier Yachting are executed by the professional crews and operators responsible for the yachts, while Frontier Yachting provides the advisory, planning, and client service aspect of the experience. This structure ensures that clients benefit from expert guidance, reliable vessels, and transparent processes throughout the entire journey.

This release was published on openPR.