A base charter rate refers to the standard cost incurred by a charter client for renting a yacht, including the services rendered by the yacht crew. This cost is typically considered a foundational fee and is independent of additional outlays. It is a fixed price set by the charter company that primarily covers the yacht's usage and crew's work. However, it does not conventionally encompass other supplementary expenses like the provisioning of food, the yacht's fuel costs, dockage fees, and discretionary gratuities. These additional expenses can significantly alter the overall cost of the charter beyond the established base rate, making it important for clients to clarify what is and isn't included within this fundamental charge.
Example
1. A family wishes to charter a yacht in Greece for a week. The base charter rate is quoted at 7,000 euros, which includes the yacht rental and crew services. However, this does not cover the costs of fuel, food, dockage fees, or gratuity for the crew.
2. A company is hosting a corporate event and decides to charter a luxury yacht in Miami. The base charter rate is $20,000. This rate includes the use of the yacht and the crew's services, but all other costs such as provisioning, fuel, dockages, and tips for the yacht's crew, are not included.
3. A couple would like to charter a yacht for their wedding reception. The base charter rate is quoted at $5,000, which includes the yacht and the crew services. However, this rate does not include food, beverages, docking fees or gratuity for the crew.
4. A group of friends is planning a weeklong sailing trip around the Caribbean. The base charter rate for the yacht they're looking at is $15,000. This rate includes the yacht and crew services, but excludes any additional costs like fuel, food, docking fees, and crew tips.
5. A film production company needs to charter a yacht for two weeks for a movie shoot. The base charter rate is set at $50,000 which includes the yacht and professional crew services. Additional expenses such as fuel, food, dockage fees and gratuity for the crew would be separate from this base rate.
Interesting fact
Fun Fact: Did you know that the base charter rate may not represent the full financial implication of chartering a yacht? An interesting fact about the base charter rate is that it primarily covers the cost of the yacht and crew services only. However, this rate usually does not include some essential expenditures, such as food, fuel, dockage and even gratuity for the crew. These additional costs are often handled via an Advanced Provisioning Allowance or APA, which is usually set at around 20-30% of the base charter rate. That means, if you're planning a luxury yacht vacation, you need to budget beyond the base charter rate to have an inclusive experience!