GLOSSARY OF COMMON TRAVEL AGENCY TERMS

The travel industry is filled with specialized terminology that can be confusing for those unfamiliar with the lingo. From acronyms and abbreviations to industry-specific phrases, the language used by travel professionals can seem like a foreign tongue to outsiders.

To help demystify the jargon, we've compiled a comprehensive glossary of common travel agency terms. This handy reference guide covers everything from booking procedures and travel documents to industry organizations and fee structures.

Whether you're a seasoned travel advisor or a curious traveler, understanding these key terms will provide valuable insight into the inner workings of the travel industry. Familiarizing yourself with this lexicon can help streamline communication, avoid misunderstandings, and ensure a smoother, more informed travel experience.

So let's dive into the ABCs (and XYZs) of travel terminology, starting with the "A" section:

A

Add-On - A tour option not included in the basic price.

Advance Purchase – Refers to a requirement that a ticket must be purchased a minimum number of days prior to departure.

Adventure Tour - A tour built around an activity, such as rafting or bicycling.

Affinity – groups of people who share a common hobby, interest, activity, or are united in some type of social interaction and activities.

Air/Sea Package - A package offered by a cruise line that includes the cruise, airfare and transfers between the airport and the ship.

Airlines Reporting Corporation (ARC) - The U.S. airline industry organization that appoints travel advisors in the United States and processes air travel sales. ARC issues ID numbers termed “ARC numbers” to accredited U.S. advisors, which are used by travel industry suppliers to track commission payments.

All-Inclusive (AI)- A tour product that includes all trip components, including meals, for a set price.

Amadeus - A Global Distribution System (GDS) that has its global marketing headquarters in Madrid, Spain, operations facilities in Erding, Germany, and customer support offices in Nice, France. Amadeus’ National Marketing Company (NMC) for the United States is located Miami and the bulk of its subscriber base was converted from the System One platform in 1997 and 1998.

Amenities – a desired or useful feature of a building, destination, and/or mode of transportation American Plan (AP) - Hotel room rate which includes breakfast, lunch and dinner.

Ancillaries – Airline products sold to the traveler in addition to the seat itself, such as bag fees, premium seating, on-board food, WI-FI and other services.

ARC Number - The eight-digit identification number assigned to accredited travel agencies in the United States by the Airlines Reporting Corporation. Travel agencies situated outside the United States are accredited by the International Air Transport Association (IATA), which issues a similar tracking number.

Availability – The total inventory available for sale at a particular rate. For example, airline seats, rental cars, hotel rooms, cruise cabins, etc.

• Accommodations: Lodging options such as hotels, resorts, motels, bed and breakfasts, vacation rentals, and hostels.
• Advance Purchase: Booking travel tickets or accommodation in advance, often to secure lower prices.
• All-Inclusive: A travel package covering accommodations, meals, drinks, and some activities for one price.

B

Back-Office Automation - Systems that computerize non-air booking functions, including accounting and reporting. In many cases these systems interface with the front office reservation systems (GDSs) and are used by many travel advisors to process the weekly ARC sales and other reports.

Back-to-Back Ticketing - The practice of booking two round-trip excursion tickets with overlapping Saturday night stays for the purpose of circumventing higher unrestricted fares.

Baggage Allowance- the amount of baggage a passenger may transport without having to pay additional charges

Base Fare – The cost of an air ticket prior to the addition of fees, taxes and any surcharges.

Blackout Dates – Specific dates on which certain fares do not apply.

Bleisure - travel that combines business trips with leisure travel

Blocked Space – Seats, cabins or hotel rooms reserved for sale to third parties at a discounted group rate.

Boarding Pass – A document issued online or at check-in authorizing boarding (air, cruise, etc.).

Business Class – A class of service generally falling between First Class and Coach/Economy with travel amenities commensurate with the higher fare generally paid.

Business Development Manager (BDM) - a representative of a travel supplier who is responsible for building brand awareness and growing sales with travel advisors

• Baggage Allowance: The maximum weight, size, and number of bags allowed for a traveler's luggage, as determined by the airline or transportation provider.
• Basic Economy: A budget-friendly option offered by airlines, typically with restrictions such as limited or no seat selection, no refunds, and often additional fees for amenities. It's aimed at cost-conscious travelers who prioritize price over additional perks or flexibility.
• Blackout Dates: Dates during which discounts or promotions are not applicable, typically during peak travel periods.
• Booking Class: The letter code assigned to different fare types on flights, indicating the ticket's flexibility and restrictions.
• Booking Confirmation: Documentation or notification confirming that a travel reservation has been successfully made, often including details such as booking reference numbers and dates.
• Booking Engine: An online tool that allows travelers to book flights, accommodations, and other travel services directly.

C

Cabin - the passenger area on an airplane often segmented by class of service – First, Business, Premium, Coach/Economy; the stateroom aboard a cruise ship

Cancellation Penalty – A variable fee charged to the traveler when travel is cancelled after purchase that may be charged by the travel supplier or agency.

Cancel For Any Reason (CFAR) - an optional add-on benefit of travel insurance that lets you cancel travel plans for reasons other than those listed as "covered reasons" on a policy

Class of Service – the inventory in which an air passenger is booked according to the fare rules of the ticket purchased, usually on airfare tickets

CDW/LDW - Collision Damage Waiver/Loss Damage Waiver insurance for damage to a rental car vehicle.

Churning - Repetitive or excessive booking and canceling of a reservation in a GDS to achieve productivity credit or to circumvent ticketing restrictions.

City Guide - The tour guide of a city tour, usually a local resident.

City Pair - The origin and destination airports.

City Tour - A guided sightseeing trip through a city.

Coach Class (Economy) - Often used to describe the cabin or “economy” section of an airplane.

Code-Sharing - An agreement whereby one airline markets and sells the services of another airline. The name of the “marketing carrier” may appear on the ticket; however, the service is actually provided by a separate “operating carrier.”

Commission – A fee, often a percentage of the price, that a supplier or agency may add to a service or product in order to make money.

Computer Reservation System (CRS) – Also referred to as Global Distribution System (GDS) (see below).

Consolidator – A business entity that contracts with travel suppliers, usually airlines, to sell tickets in bulk at discounted rates.

Consortium – A collection of organizations made up of independently owned and managed agencies who band together to increase buying power for their members.

Consumer Protection Plan (CPP) - A tour operator-provided policy that provides compensation in case of a tour operator bankruptcy.

Continental Breakfast - Hotel stay that includes breakfast, typically consisting of bread, rolls, butter, jam and tea or coffee.

Continental USA - All areas in the 48 contiguous states and the District of Columbia.

Corporate Agency – A travel agency whose primary clientele are medium to large corporate businesses.

Cruise Lines International Association (CLIA) – The trade association of cruise industry. CLIA also is a marketing association that promotes cruise vacations distributed through travel agencies.

Cultural Tour - A tour focused on interacting with and exploring a specific culture.

CVB - Convention and Visitors Bureau.

• Cancellation Policy: Rules and conditions regarding the cancellation of travel reservations, including any associated fees or penalties.
• Carrier: A company providing transportation services, such as an airline or cruise line.
• Change Fee: The fee charged by airlines or travel agencies for changing flight or travel dates after booking.
• Connection: A layover or stopover during a journey where travelers change planes or transportation modes.
• Concierge Service: Assistance provided by hotels or travel agencies to arrange dining, entertainment, or transportation for guests.
• Confirmation Number: A unique code provided upon booking that verifies a traveler's reservation.
• Cruise Only fare: A pricing option offered by cruise lines that covers only the cost of the cruise itself, excluding additional components such as airfare, hotel stays, or transportation to and from the port.
• Cruise Ship Categories: Various levels of cabins or staterooms aboard a cruise ship, categorized by size, amenities, and location.

D

• Debit Memo – A bill or demand for payment from either an airline or ARC to a travel agency for charges it believes the agency owes.
• Demographics – Population measures, such as age, gender, income, education, race/ethnicity, religion, marital status, household size, and occupation.
• Deregulation – An Act of Congress which took effect in 1978 under which the former Civil Aeronautics Board lost direct responsibility for overseeing and assigning routes, frequencies, and fares for the nation’s airlines.
• Destination Management Company (DMC) – A for-profit company that operates similarly to a CVB by providing planning and execution services for travelers specific to their destination.
• Direct Access – A term used by Global Distribution Systems to describe the mode of reservation processing in which the supplier’s reservation system provides a confirmation number within seven seconds of completion of the booking requests and prior to the travel advisor ending the booking transaction.
• Double Occupancy Rate – The price based on two people sharing a room or cabin.
• DRS (Direct Reference System) – The section of each Global Distribution System containing specific supplier policies and a descriptive list of supplier services.
• Dynamic Packaging – An online booking tool that can combine multiple travel components (typically air, car, and hotel) in real time into a single, fully priced package (hiding the pricing of the individual components).
• Departure Tax – A fee imposed by some countries on departing travelers, often included in the price of airline tickets.
• Destination Management Company (DMC) – A local company that provides ground services, tours, and logistics for travelers in specific destinations.

E

• Economy Class: The standard seating class on airlines, offering basic amenities at lower prices.
• ETA (Estimated Time of Arrival): The anticipated time a flight, train, or other transportation mode will arrive at its destination.
• ETD (Estimated Time of Departure): The anticipated time a flight, train, or other transportation mode will depart from its origin.
• Excursion: A guided or organized tour or activity, often offered as part of a travel package or cruise itinerary.

F

• Fare Basis: The code or rules determining the price and conditions of a flight ticket.
• FIT: Stands for "Free Independent Traveler" or "Fully Independent Traveler." Refers to a style of travel where individuals or small groups plan and organize their trips independently, rather than joining a guided or package tour.
• Frequent Flyer Program: Loyalty programs offered by airlines that reward travelers with points or miles for frequent travel.
• Full-Service Agency: A travel agency that provides a wide range of services, including booking flights, accommodations, tours, and travel insurance.

G

• Gate: The designated area in an airport where passengers board or disembark from flights.
• GDS (Global Distribution System): A network used by travel agents to access real-time information about travel inventory, including flights, hotels, and car rentals, and to make bookings.
• Group Travel: Travel arrangements made for a group of people, often eligible for discounted rates or special amenities.

H

• Hotel Category: The classification of hotels based on factors like amenities, services, and overall quality, ranging from budget to luxury.

I

• Incidentals: Additional expenses beyond the basic cost of a trip, such as meals, transportation, or entertainment.
• Itinerary: A detailed plan or schedule for a trip, including transportation, accommodations, and activities.

J

• Jet Lag: Fatigue and discomfort experienced by travelers due to disruptions to the body's internal clock caused by crossing multiple time zones during air travel.

L

• Layover: A stopover during a journey where travelers remain in a connecting city for a certain period before continuing their journey.

N

• NCF or Non-Commissionable Fare: A fare charged by a travel service provider, such as a cruise line, for which travel advisors do not earn a commission.
• Nonstop Flight: A flight that travels directly between two destinations without any intermediate stops.

O

• On Board Credit (OBC) or On Board Spending Money (OSM): A perk or incentive provided by cruise lines or travel agents to clients, typically given as a bonus for bookings and used while aboard the ship.
• Online Travel Agency (OTA): Websites or platforms that allow travelers to book flights, accommodations, and other travel services online.

P

• Package Tour: A pre-arranged travel package that includes transportation, accommodations, and often meals and activities.
• Passenger Name Record (PNR): A unique identifier for a traveler's reservation, containing details such as flight information, seat assignment, and contact information.
• Passport: A government-issued document required for international travel, containing the traveler's identity and nationality information.
• Point of Sale: The location or country where a travel product or service is purchased, affecting pricing and availability.

R

• Red-Eye Flight: A flight that departs late at night or early in the morning and arrives at its destination in the early morning hours.
• Resort Fee: A mandatory charge imposed by some hotels to cover amenities and services, often not included in the advertised room rate.
• Room Category: Different types of accommodations within a hotel, such as standard rooms, suites, or specialty rooms.

S

• Seat Assignment: The selection of specific seats on a flight, often done during the booking process or at check-in.
• Single Supplement: Additional charges imposed on solo travelers occupying a double occupancy room or cabin.

T

• Travel Advisor: A professional who provides advice and assistance to travelers in planning and booking trips, including accommodations, transportation, and activities.
• Travel Advisory: Official warnings or recommendations issued by governments or travel authorities regarding safety, health, or other concerns related to specific destinations.
• Travel Advisory Service: Companies or platforms that offer personalized travel advice, recommendations, and assistance to travelers.
• Travel Agency Commission: The fee paid by travel suppliers (e.g., airlines, hotels) to travel agencies for booking their products or services.
• Travel Documentation: Essential documents required for travel, such as passports, visas, travel insurance policies, and vaccination certificates.
• Travel Insurance: Coverage that provides financial protection against unexpected events or emergencies during a trip, such as trip cancellations, medical emergencies, or lost luggage.
• Travel Rewards Credit Card: Credit cards that offer rewards, such as points or miles, for travel-related purchases, often including benefits such as travel insurance and lounge access.
• Travel Voucher: A document or electronic code issued by a travel provider as compensation or reimbursement for a service issue or inconvenience experienced by the traveler.

U

• Upgrade: A change to a higher class or category of service, such as upgrading from economy to business class on a flight.

V

• Visa: A document or endorsement in a passport granting permission for a traveler to enter, leave, or stay in a country for a specified period.
• Visa Requirements: Regulations and procedures that travelers must follow to obtain permission to enter a particular country or region.
• Voucher: A document or electronic code serving as proof of payment or reservation for a travel service, such as accommodations or tours.

Y

• Yield Management: The practice of adjusting prices and inventory to maximize revenue, commonly used by airlines, hotels, and rental car companies.

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