Two line items cause more client confusion in a yacht charter contract than everything else combined: APA and the security deposit. They sound similar, they're both collected before boarding, and clients regularly assume they're the same thing. They aren't, and getting the distinction wrong when setting expectations is an easy way to turn a smooth charter into an awkward conversation about money at the end of it.
What APA actually covers
Advance Provisioning Allowance is a prepaid operating fund for running costs incurred during the charter itself — fuel, marina and berthing fees, provisioning, and similar on-trip expenses. It's collected before the charter starts, managed by the captain or purser throughout, and reconciled at the end: unused funds are returned, and any shortfall is settled against actual costs incurred. It does not cover the base charter fee, taxes, or crew gratuities — it's specifically the operating budget for the trip.
What the security deposit covers
The security deposit is a separate, refundable hold against potential damage to the yacht during the charter. Unlike APA, it isn't spent during the trip — it sits as a hold and is released in full afterward if there's nothing to claim against it. Advisors sometimes see clients assume the deposit works like APA (i.e. that unused portions get "spent down"); it doesn't, and it's worth being explicit about that distinction upfront.
What to tell a client before they see the numbers
Industry ranges for APA generally run 25-40% of the base charter fee, with sailing yachts typically toward the lower end and motor yachts toward the higher end given fuel consumption — but the actual figure for a specific yacht, itinerary and guest count should always come from the operator directly at the time of booking rather than being assumed from a general range. Setting that expectation early, before a contract lands in a client's inbox, avoids the two most common surprises: assuming APA is included in the headline charter rate, and assuming the security deposit is a fee rather than a refundable hold.
Reconciliation and what a client should expect back
At the end of the charter, the captain or purser reconciles actual spend against the APA collected and returns any unused balance — typically within a few days of disembarkation. Asking for an itemized breakdown at this stage is standard practice, not an unusual request, and most operators provide one without needing to be asked twice.
Where this fits with the rest of a booking
This sits alongside the practical planning questions covered in our travel advisors guide and the timing considerations in our peak-season lead-time guide — APA and deposit structure is one more thing worth confirming early rather than at contract stage. For the consumer-facing side of what a Balearic charter costs overall, see our Mallorca price guide.
Details on how the referral relationship and client handoff work are on our partner page, and day-to-day logistics are covered on our concierge page.