How do you compare total superyacht charter cost without double-counting APA?
Prepare three separate outputs: expected final spend, a higher-spend scenario and the payment calendar. Do not combine them into one misleading “all-in” number.
- Expected expenditure = base fee + applicable taxes + expected operating expenses + delivery/redelivery + discretionary gratuity + excluded travel and shore costs.
- Yes, under the stated assumptions below.
For a plus-expenses proposal, use:
Expected expenditure = base fee + applicable taxes + expected operating expenses + delivery/redelivery + discretionary gratuity + excluded travel and shore costs.
Record the APA separately as a funding movement. Add only expenses not already included elsewhere. The following worked example is an original arithmetic illustration, not supplier pricing or a forecast.
Can a lower base fee produce a higher total?
Yes, under the stated assumptions below. All figures are USD for the same hypothetical seven-night, ten-person brief. A and B are plus-expenses offers; C is a defined inclusive package.
The tax assumption is deliberately fictional: 10% of the base/package price only, with no claim that this is correct anywhere. The 10% gratuity is a discretionary modelling choice, not a required or recommended tariff. Flights, hotels and insurance are excluded and must be added before whole-trip approval.
| Illustrative item | A: lower base fee | B: higher base fee |
|---|---|---|
| Base/package price | $150,000 | $175,000 |
| Assumed tax | $15,000 | $17,500 |
| Delivery/redelivery | $10,000 | $0 |
| Expected operating expenses outside the price | $60,000 | $35,000 |
| Expected package exclusions | $0 | $0 |
| Chosen discretionary gratuity | $15,000 | $17,500 |
| Other shore spending | $10,000 | $10,000 |
| Expected comparison subtotal | $260,000 | $255,000 |
| Higher-spend assumption | Operating expenses rise to $80,000 | Operating expenses rise to $55,000 |
| Higher-spend subtotal | $280,000 | $275,000 |
| Assumed APA advanced—not added again to final spending | $52,500 | $61,250 |
| Base/package + assumed tax + delivery + APA funding | $227,500 | $253,750 |
| Expected expense reconciliation | $7,500 top-up | $26,250 unused advance |
Interpretation: B costs $25,000 more in base fee but $5,000 less in expected expenditure in this example. It also requires more initial funding. C provides certainty only within its defined scope; “inclusive” does not make the exclusions disappear.
These higher-spend scenarios are not worst-case losses or contractual caps. They do not model cancellation, uninsured liability, emergency travel or every possible tax adjustment.
What should the payment calendar show?
For each proposal, record:
Signature
- Required fields
- Amount, currency, recipient, due date and what becomes committed
Show the full table
| Milestone | Required fields |
|---|---|
| Signature | Amount, currency, recipient, due date and what becomes committed |
| Balance | Amount, deadline and cancellation exposure at that point |
| Expenses | APA amount, custodian, top-up process and settlement method |
| Other advances | Tax, delivery, security deposit and separately booked services |
| Reconciliation | Supporting accounts, deductions, return timing and refund currency |
Payment schedules should come from the actual agreement. For example, Burgess publishes a 50% charter-fee deposit followed by the balance and agreed extras five weeks before commencement; that is a supplier’s stated process, not a universal payment rule. (burgessyachts.com)
For non-dollar contracts, preserve the original currency and show a separately dated USD planning conversion. Ask finance to distinguish the approval estimate from the exchange rate and banking charges that will actually apply.