Tipping Do's and Don'ts on a Yacht Charter

While a yacht charter experience is not for the everyday joe, ultimate luxury does come with a price. Gratuity has always been a sore subject when it comes to the yacht charter industry and in most travel operations. For luxury travel vacations, expenses are rarely all inclusive.

For the yacht charter novices who aren’t as familiar with this form of travel there are several inquiries about the customs and routines aboard an opulent vessel. Questions such as when it is appropriate to tip, whether the location of the charter have any relevance or impact on gratuity structure. How do you know which countries and regions should you tip and how much?

The Pros of a Tipping Policy
For yacht charter crews, tips can make up a large portion of their pay. By maintaining this expense as a separate item, the charterer can reward a crew that has done a fabulous job and a crew can feel that if they go the extra mile, they have a chance of getting a bonus for their extra efforts.

Some charterers take advantage of the system. They write copious, glowing notes in the yacht's log book and even on the post charter form they send to when they return home, yet they walk off the boat without leaving a cent. Clients should always be informed of the policy.

A reputable broker will take care to mention the gratuity at the very beginning of the booking process, so that charterers know about this cost when selecting a boat in their price range. When a summary of costs is sent with the contract, for them to look over before they confirm, the gratuity is clearly shown under costs, including a suggested range depending on service received.

Another problem often mentioned by yacht brokers is that the tipping concept can negatively affect sales. Most charterers like the all-inclusive approach and some would rather not bother (or feel awkward) with adding a tip. Some see tipping as an unnecessary and annoying expense. This is particularly true if a yacht charter broker has only brought up the subject after the charter is confirmed. Most brokers are thoroughly reputable, but like any industry, there are a few that twist the rules.

Yacht Charter agents can help the situation by genuinely being up-front with the concept and explaining that crews do many of the things you would normally tip for, from making the beds to serving your meals and entertaining you. Whether a boat could increase bookings by saying a 15% gratuity is included is uncertain - they actually might.

For crews, it is especially difficult, because they are at the mercy of other people. There is nothing worse however, than a crew that drops hints about the tip during the charter. Even mentioning it in an introductory letter to guests, really starts the charter off the wrong way. Providing the charter was booked through an agent or broker, it is better for the crew to ask the broker before the charter if he/she is sure their guests know the yacht charter fee does not include the customary tip. Many crews have no idea how comments on tips can turn off guests, even if said in jest.

So how much should a charterer give? For a Caribbean Yacht Charter, the range is 10 to 20 percent of the charter fee. If the charter fee does not include meals, the tip should be based on just the boat fee. If you felt the crew had done a good job, 15% is a good tip - by giving 10%, you are telling the crew that things were OK but not perfect.

Some ask if the guidelines are the same for owner operators. The answer is yes! Many of these owners work hard to cover the cost of the cruising lifestyle they have chosen and don't have the funds of an absentee owner who might have invested in a boat just for personal vacations. There are of course exceptions - not all absentee owners are wealthy or owner/operators broke, but the same rules apply regarding gratuities!

Checks can be difficult to cash, particularly for a boat cruising in a different area, and every bank charges fees for checks drawn on an overseas account. It is therefore much nicer to give the tip in cash or travelers checks. Leave it in an envelope, perhaps with a nice card or note. Unless you have strong opinions, give just one gratuity, which the crew will divide up between themselves. For enormous charters, where the tip can run well into five figures, it is obviously impractical to use cash and tips are often prepaid or wired to the boat at the end of the charter.

While leaving a five figured tip may seem slightly steep for what you feel is an expensive vacation already, there is no guest service that is even comparable to that provided on aboard a luxury yacht. The majority of crews pander to their guest’s every whim, Stewardesses especially.

As far as the debate as to weather the tip should be autograted into the charter price or left up to the discretion of the charterer has been an issue for discussion but I believe that like most situations in the yachting industry, it comes down to class and reputation.
Charter guests are typically among some of the most affluent individuals in the world. So why shouldn’t world-class service be generously rewarded?