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Quick Tips on Building a Charter Budget
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- Create a budget. There's nothing like spending more than you expected and realizing when you get home that your adventure cost twice as much as you anticipated.
- Understand ALL costs associated with a charter. Boat fees are only part of the equation. Consider the costs of insurance, fuel, provisions, airfare, etc.
- Clearly understand "deals" (i.e. is it due to less than ideal seasonal weather, a new base for the company with limited experience, etc.)
- There are always options. Whether provisioning, choosing hotel properties on arrival/departure nights, etc., there are alternatives to most charter company offers.
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The most obvious cost to consider when planning a bareboat charter is the cost of the boat. As you will find when considering the many options available (see boat types and charter companies), the cost in some situations will vary widely based upon the type of boat, the location, the time of year or season, as well as the various items either included or considered “extra” by the company you select.
When trying to research the real cost of charter or compare one company’s prices with another, it helps to break down the details and talk to a number of companies with your scorecard handy (note: should we call it the Charter Island Budget Scorecard?). This outlines the basics you need to consider as well as lines to add extras that apply specifically to your needs.
When comparing boats and their respective charter rates, all boats are not created equal. In addition to the quality of the yacht when it leaves the factory, age and amount of charter use is a factor. For many global companies, they focus on providing newer boats with the latest gear and amenities which in many cases can make your charter more enjoyable and reduce the likelihood of gear breakdowns or mechanical issues that could delay your charter. On the other hand, quality-built yachts that are 5 years old may still offer more reliability than a brand new, mass-production yacht. At the end of the day, these issues may not be a terribly big difference or concern. However, do put a few minutes of time into considering this as choosing the cheapest may lead to a charter where you spend wasted time waiting for repairs instead of sailing care-free throughout the islands. At that point, the extra few hundred dollars difference over 7 days may not seem like such a big deal.
While it is likely obvious that some locations may cost more than others and that various seasons (“peak” tourist seasons vs. “shoulder” or off periods between these seasons), what might not be obvious is that there are aspects of charter company prices that are not the same. For instance, most global charter companies include a dinghy, outboard, outboard fuel, barbeque grills, and other items with each boat they charter. Other, regional companies sometimes charge for each of these individually all the way down to the outboard fuel you require. So, pay attention to the fine print when reviewing the cost to charter with a company and use the Charter Island Budget Planning tool (Free) to compare costs.
Finally, periodic promotions to increase charters during non-peak times can dramatically reduce the effective cost of chartering a boat. So, as you can see, an apples-to-apples comparison is the only way to help you determine whether you are getting the best deal or the premium you might be paying to use a specific company you prefer.
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Provisioning - Food, Beverages, and other Necessities
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Next to the boat charter fees, provisioning – the food you take onboard for the charter – will likely be your next biggest expense and area of choice. Many global companies have extensive provisioning programs that make it possible for you to pre-select the food and beverages you prefer, pre-load them before you arrive, and enable you to depart almost immediately after you chart briefing. [insert link to this] In most cases, the extent of what you will need to do is load the food into the refrigerator and various storage locations and cast-off. For this service, you will likely pay a premium for what you select and you will not have nearly the hands-on choice to select specific items you prefer. You are, in effect, paying someone to go shopping for you and deliver the food to your boat.
Alternatively, regional companies typically offer limited if any provisioning services. Some do provide recommendations for local provisioning services or grocery stores within walking distance that make it possible to provision on your own. In most cases, you will pay less and have total control over the items you prefer to purchase which can be nice if you have special dietary needs or more discriminating taste in food.
For many charters, charter company provided provisioning takes the guess work out of planning – particularly when visiting new charter areas. Many experienced charter groups find self-provisioning a nice alternative when they have visited a region before and know where and how to provision most effectively.
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For bareboat charters, this is not a concern or budget element to worry about. For those looking for a skipper or concerned that their qualifications may not qualify them for a bareboat charter, it is important to consider the cost of a skipper. While fees may vary widely depending upon to experience and skill level of the skipper as well as the charter company, it is something you can determine very quickly in your conversations with charter companies.
Most charter skippers range from $80-$200 per/day (US) during the charter. Some my find this expensive but it is important to remember that many captains do more than simply drive the boat. In many cases, good captains will share in-depth knowledge of the cruising area, get you into the best anchorages, arrange tours or other activities through their established relationships, and sometimes even rush ashore to set up dinner reservations or other arrangements. The quality of these types of additional services are usually specific to the actual individual so you cannot expect this from all charter captains. This does not include any gratuities which, while not required, are a nice way to say thank you for a job well done.
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Travel Expenses and Related Fees
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After choosing a charter company and making your reservation, you will need to arrange for travel to reach your destination. This basically comes down to booking flights to your charter destination. If you are chartering through a regional or smaller charter company, this will likely be your responsibility. Some companies can extend travel partner discounts with some carriers so be sure to ask your charter company if they can help here.
Larger charter companies – particularly the global companies – commonly have in-house travel agents to assist with booking your travel for little or no additional fee. As a result, they often have special access to or run promotional fares with airlines serving their the locations where their charter bases are located. A real benefit of booking through a charter company that offers these services is that they usually have a sense for timing, transfers, and all of the details related to getting you from your home town to that remote island paradise where your yacht awaits you. But, you will however want to make sure that the rate you are getting is competitive with the rates you could obtain through the various online or traditional travel booking services.
If redeeming reward miles from a carrier of choice, be sure to factor in any additional costs associated with ticketing as well as partner-related costs if you are required to a preferred airline’s partner to arrive at your final destination.
An additional fee that is important to remember is travel insurance. With any international trip is planned for a significant period of time or has a number of connections to be made during travel to and from the charter base, a traveler protection program can come in handy. Many charter companies – primarily the larger, global companies - provide these for a small fee per person in addition to the price of the charter. Smaller regional charter companies can recommend a travel insurance vendor that can assist you.
For travelers unfamiliar with these services or others with a strong aversion to this type of service, it is worth the five minutes and small relative cost to take advantage of a service. Here are just a few scenarios where a travel insurance or “charter protection plan” can help you recoup lost charter costs:
- Due to an illness, you need to cancel charter within 30 days of your trip after you have made all final deposits
- During travel, airline connections are delayed causing you to miss a day of your charter.
- An airline cancels their flight due to inclement weather forcing a delay to your trip.
- A mechanical breakdown on your charter vessel leaves you stuck in a marina for (3) days while a new part is flown in from the other side of the world.
For a few hundred dollars (this varies depending upon total cost of your charter), you can file a claim for these and a wide array of other scenarios that jeopardize your trip. Think of it as an insurance deductible. If you are chartering a boat for $400/day, this fee can pay for itself very quickly.
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Resort and Hotel Expenses
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For most charters, you will not likely arrive, walk down to your boat, charter, return, and shuttle strait back to the airport. With many locations, which are well off the beaten path, you will likely be arriving late or returning your boat after all outbound flights have left for the day. So, there is usually a night or two on either end of your charter where you will need to consider a hotel. Your charter company can usually recommend a property close to the charter base and in some cases they can book the reservation, offer a discounted rate, or both.
For anxious charter parties, the thought of staying in a hotel may appear to defeat the purpose of chartering. But, staying in a hotel – particularly at the end of a charter for a few days to really relax and pamper oneself – can be a nice way to more gracefully reenter life ashore before returning home. Although more luxurious resorts can cost more, many offer fantastic amenities and services such as spas, golf, and other activities.
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Once your boat and charter related costs and travel costs are determined, there are some additional details you will one to keep in mind as you finalize your budget.
Tourist Fees
In many of the locations where you will be chartering, the local government depends on tourism to raise revenue for local services. So, some locations require either a customs “entry-fee” (typically $10-$30 US) or a daily visit fee ($1 - $5 US maxing out at $20-$30 US). While not an exceptionally high cost of visiting a wonderful location, you will want to factor this in for larger families or groups.
Dining and Entertainment
When planning for a charter, many consider the cost of provisioning as their primary cost of food and dining during the charter. But, as experience shows, many decide – more frequently then expected – that after visiting a charming resort or bar, they simply must return that evening for a wonderful lobster dinner.
So, if you expect that you will want to dine out frequently, consider this cost during budgeting and possibly consider an altered provisioning plan (sometimes called “split-provisioning”) in order to spend less on provisioning overall if you plan to dine out frequently.
Equipment and Gear Rental
One of the benefits of chartering is that you are free to do so many fun and adventurous activities that you may not be able to do from a shore-based resort. While sitting anchored, it can be great fun to either kayak and explore a small cove, catch some late afternoon tradewinds with a sailboard, or even get in a fantastic dive while traveling from one anchorage to another.
Each piece of equipment – kayak, sailboard, dive tanks, etc. – will be an extra fee when chartering. Some charter companies have a collection of this gear that they will place on the boat when you arrive. Alternatively, they may have a relationship with a local shop or vendor that can provide this equipment and other gear you may need. Regardless, expect to pay a daily rate for this equipment and during longer charters, this cost can add up quickly. Budgeting for this will help you develop a better overall expense picture for your charter.
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