How Much Does It Cost To Charter a Luxury Yacht?
Have you ever dreamed of cruising the seas aboard a luxury yacht? Recognized as the domain of the wealthy elite, a yacht can cost $30,000 a week for a “small” 60-foot model. Price tags for yachts can go as high as $4.8 billion, which is the price of History Supreme, a 100-foot long vessel crafted from solid gold and platinum and owned by Robert Kuok, the richest man in Malaysia.
Check Out: 8 Things Self-Made Millionaires Always Spend Top Dollar On
Learn: How To Get Cash Back on Your Everyday Purchases
Plus, if you purchase a yacht you have to consider dock fees, maintenance, fuel and repair costs, as well as the cost of a crew to run it. United Yacht Sales reported that the cost of ownership runs around 10% of its value. So a $1 million yacht would cost roughly $100,000 per year, which would include employing a professional captain or yacht manager for voyages. The bigger the boat, the higher the costs, of course.
All these costs, obviously, would be prohibitive for all but the world’s wealthiest individuals. But how much does a yacht charter cost? Is chartering a yacht a viable alternative for people with money to spend on a luxury vacation?
How Much Does It Cost To Go on a Yacht Charter?
The cost to charter a yacht varies widely depending on several factors — it can run from around $10,000 to $4 million a week.
When you charter a yacht, you don’t have to pay for maintenance or repairs, and you can enjoy the benefits of a private yacht voyage without investing millions to own the vessel.
The global yacht charter market size was valued at $14.42 billion in 2022 and is expected to reach $15.71 billion in 2023. But how much does it cost to go on a yacht charter? The answer will depend on several factors.
The Financial Feng Shui Rule: 7 Chinese Secrets to Attract Wealth
Yacht Charter: All-Inclusive or Plus Expenses?
Just like when you go on a cruise or book a vacation at a resort, you have choices between “all-inclusive” pricing or “plus expenses,” sometimes called “separated charges.”
However, unlike at a resort or on a cruise, when you charter a yacht “plus expenses,” you’ll typically pay an upfront fee for food, beverages, sporting equipment, activities and excursions. This way, you don’t have to think about costs or pulling out your wallet or smartphone while you’re on your voyage. This type of pricing is called an Advance Provisioning Allowance.
Using an APA for your journey is the more common pricing model, since it allows for a tailored experience with your favorite foods and beverages, according to Elite Traveler.
If you are going the all-inclusive route, make sure you know what is included, as it may vary. Likewise with the APA model, you will want to make sure that fuel and dockage are also covered. Dockage fees may vary depending on where you are going and even the time of year that you’re traveling.
APA fees also include digital connections for satellite internet and streaming. It’s nice to “get away from it all” on a yacht, but you may want to maintain communications with your family, friends and colleagues, continue conducting your business while you’re on the high seas or just stream Netflix in the evening.
Insurance and Taxes
Even if you use the APA pricing model, you can still expect some additional expenses. You may want to invest in travel insurance to protect your trip if you have to cancel. And, depending on your port of departure and destination, you may have to pay Value Added Tax (VAT) which can be as much as 22% of your cost.
So, bottom line, how much does it cost to charter a yacht?
Prices for “plus expenses” charters from Northop & Johnson run from $44,000 per week for a 92-foot yacht with 5 staterooms, up to nearly $2.7 million per week for a ride on the 377-foot AHPO. The AHPO says it can accommodate 16 guests. Unfortunately, most yachts can only carry a maximum of 12 passengers, regardless of size and accommodations on the yacht, due to maritime laws.
That means the price to charter a $44,000 yacht would come out to roughly $3,666 per person.
Compare this to the price of a 7-day cruise, which costs on average about $1,659 per person.
What Other Factors Influence the Price of a Yacht Charter?
As with cruises and other vacations, there are other factors that affect the price of your yacht charter, including the size of the boat, the location you’re traveling to and the time of year that you plan to book your yacht charter.
Yacht pricing also has other considerations, such as the experience and size of the crew, the age of the yacht and even its design. Sailing catamarans are much less costly than yachts with motors, for instance. And the onboard amenities, luxuries and overall design will also affect the costs of your yacht charter.
Here are some of the factors affecting the price of your vacation getaway:
Size of the Yacht
It makes sense that the size of the yacht is the biggest determining factor in price. You can expect the fare to go up the longer the yacht is.
Onboard Amenities and Reputation of the Yacht
Just like luxury hotels and resorts — and even cruise ships — the more amenities and onboard water toys the yacht includes, the higher the price. A yacht with an onboard DJ, like the 312-foot O’Pari, can cost $1.1 million or more.
Yachts that have been owned by famous people, have distinguishing characteristics in their design or have otherwise developed a reputation as a trendy and desirable vessel may also cost more to charter.
The Yacht’s Destination and the Time of Year
Where the yacht is traveling, as well as the time of year, can affect the costs. These two factors are connected, because certain destinations cost more during their busy seasons.
For instance, if you are traveling to the Mediterranean during the summer months, it will cost more than other times of year. During the North American winter months, many people want to escape to the warmth of the Caribbean, so anyone cruising out of North America might pay more between December and March. And if your trip is tied to the holiday season or special events like the Cannes Film Festival, you could pay even more.
The Crew
The size and experience of the crew can also make a difference in the price of your trip. Don’t forget to include gratuities for the crew when you are calculating your total costs. Worldwide Luxury Yacht recommends tipping 15% to 20% of your base charter rate, not including APA cost.
How Much Is a Yacht for a Day?
If these numbers seem out of range, don’t despair. You may be able to experience the glamour and luxury of a yacht charter for a shorter duration.
Most luxury yacht companies only charter their ships for a week or more. However, some companies allow you to charter yachts for a day at vacation destinations. For instance, if you are vacationing in the French Riviera, you can charter a yacht for under $2,500 per day.
Takeaway
Does chartering a yacht sound like a dream come true? Keeping these prices in mind can give you goals to shoot for.
At the very least, your next luxury cruise may sound like a bargain compared to the rates to charter a yacht for a week.
Brooke Barley contributed to the reporting for this article.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: How Much Does It Cost To Charter a Luxury Yacht?