Glossary
1. Accreditation: Approval by conferences or associations allowing the sale of tickets and other
travel services.
2. Affinity Group: An organization, formed for virtually any purpose other than travel, which
subsequently elects to sponsor group travel programs on scheduled or charter aircraft and qualifies for certain group travel privileges.
3. Agent: A person authorized to sell the products or services of a supplier.
4. Agent Reporting Agreement: An agreement between travel agents and airlines, via the Airlines
Reporting Corporation, which specifies the rights and obligations of both parties.
5. Airlines Reporting Corporation (ARC): Formed by the Air Transport Association to preserve
essential domestic services performed by the Air Traffic Conference prior to deregulation; as a regulatory association for travel agents, ARC establishes agency requirements with respect to professional personnel standards, agency accessibility to the public, and financial and security standards.
6. Airline Tariff Publishing Company (ATPCO): A company jointly owned and operated by airlines
to consolidate, publish, and distribute fares and cargo rates, along with associated rules, to the travel industry.
7. Air Traffic Control: A service operated by appropriate authority to promote the safe, orderly, and
expeditious flow of air traffic.
8. Air Transport Association (ATA): The trade association representing all scheduled airlines in the
United States under whose jurisdiction the Airlines Reporting Corporation was established after the dissolution of the Civil Aeronautics Board.
9. Airbus (Aerial Bus): A jumbo jet carrying twice as many people as a 707 or DC-8 and
specializing in short-and medium-length trips.
10. Airline Codes: The system of abbreviations for airlines, airports, fares, and so on used by airlines
and travel agents throughout the world.
11. Airline Deregulation: By the federal law enacted in 1978, the elimination of the CAB and
governmental regulation of the airlines and other suppliers with regard to routes, fares, and other specifics.
12. All-Expense Tour: An inclusive tour that includes many services for a stated price; probably
most, if not all, meals, sightseeing, taxes, tips, and extras.
13. American Automobile Association (AAA): An organization that provides its members with a
variety of services – travel information, maps, highway and legal services, insurance, trip planning, and so on – related to owning and operating automobiles. AAA also operates a multi-branch retail travel agency organization.
14. American Plan (AP): A meal plan that includes three meals daily with the price of
accommodations.
15. American Society of Travel Agents (ASTA): A trade association of U.S. and Canadian travel
agents and tour operators.
16. Amtrak: The name used by the National Railway Passenger Corporation, A quasi-public
corporation established by Congress in 1971 to assist the declining railroad industry.
17. APOLLO: The computer reservation system developed by United Airlines and introduced in
1976.
18. ARC Industry Agents’ Handbook: Published by the Airlines Reporting Corporation for travel
agents, the handbook specifies the requirements to become an ARC Industry Agent and provides guidelines and procedures for appointment.
19. Area Settlement Plan: A system of banks authorized by the ARC through which travel agents and
approved suppliers report and remit airline tickets.
20. Association of Retail Travel Agents (ARTA): A trade association of American travel retailers. 21. Association of Retail Travel agents (ARTA): A trade association of American travel retailers.
22. Automated Ticket Machines (ATM): Automated vending machines selling computer airline
tickets, generally located in airport terminals.
23. Average Room Rate: Total revenues from room sales in a hotel, or collective room revenues of a
destination, divided by the total number of available rooms. Average room rates may be computed on a daily basis for an individual property or an annual or seasonal basis for a destination.
24. Back-to-Back: Describing a program of multiple air charters between two or more points with
arrivals and departures coordinated to eliminate aircraft deadheading and waiting; that is, when one group is delivered at a destination, another is ready to depart from that point.
25. Bed and Breakfast (B&B): A meal plan that includes breakfast with guest house or other lodging
accommodations.
26. Bermuda Plan (BP): Hotel accommodations with a full, American-style breakfast included in the
price of the room.
27. Bonding: the purchase, for a premium, of a guarantee of protection for a supplier or a customer.
In the travel industry, certain bonding programs are mandatory: For example, ARC insists that travel agents be bonded to protect the airlines against defaults.
28. Bucket Shops: Firms selling heavily discounted air tickets or tour packages, usually below
market value.
29. Bulk Fare: A fare available only to tour organizers or operators who purchase a specified block
of seats from a carrier at a low, noncom-mission able price and then have the responsibility of selling the seats, including a commission in their marked-up price for the seats.
30. Business Class: A class of service on airlines that is usually situated between first class and
economy (coach) and offers such amenities as larger seats, free cocktails and headsets, and early check-in privileges.
31. Business Travel Department (BTD): An in-house travel agency for a business or organization. 32. Cargo Liner (or Freighter): A vessel principally engaged in transporting goods, licensed to carry
a maximum number of passengers (usually twelve).
33. Certified Travel Counselor (CTC): Professional certification awarded to travel agents who have
successfully completed a study program developed and administered by the Institute of Certified Travel Agents.
34. Charter Service: Nonscheduled air transport services whereby the party or parties receiving
transportation obtain exclusive sue of an aircraft at published tariff rates and the remuneration paid by the party receiving transportation accrues directly to, and the responsibility for providing transportation is that of, the accounting air carrier. This term also has general application to any other mode of transport, such as motor-coach, ship, and train, where the entire capacity or a minimum number of seats are hired by contract for exclusive use.
35. Child: Variably defined. Airlines normally classify a child as two through eleven, but some
suppliers classify the range to fourteen, sixteen, or even up to eighteen years of age.
36. Circle Trip: A trip involving more than one destination and returning to the origin city. Example:
Tampa to Atlanta to New Orleans to Las Vegas to Tampa.
37. City-Pair: The terminal communities in an air trip, that is, the origin and destination on a one-way basis.
38. Coach Service: transport service established for the carriage of passengers at fares and quality of
service below that of first-class and business-class service. It is also known as economy service. 39. Commercial Rate: A special discounted rate offered b y a hotel or other supplier to a company,
group, or individual traveler on a qualified basis.
40. Commission: A payment received by travel agents for the sale of air transportation, hotel
accommodation, tours, rental cars, and other products and services, usually computed as a percentage of sale made by the agent.
41. Commuter Airline: An airline that offers frequent round-trip service to or from smaller
communities and some larger airport hubs with a published flight schedule of such services, principally to serve business commuters.
42. Computer Bias: Giving preference, as in listing a certain airline’s schedules first in a
computerized Reservation System.
43. Computerized Reservation System(CRS): An electronic information system connecting
individual travel agencies to a central computer, making immediate inquiries and reservations on an airline, hotel, car rental, or other possible travel services.
44. Conference: An association of air carriers designed in principle to provide a set of operational
rules that are fair to operators and to prevent injurious competition among operators. A conference may establish and enforce agreed-upon rules, ethical practices, safety standards, and documents, as well as serve as a clearinghouse for information. It may also establish travel agency rules and regulations.
45. Conference Appointment: A process whereby travel agencies are approved by conferences (for
example, IATAN, ARC) to represent a group of carriers or other travel suppliers to sell its services.
46. Configuration: A particular type of specific aircraft, ship, and so on, differs from others of the
same model by virtue of the arrangement of its components or by the addition or omission of auxiliary equipment such as ―long-range configuration,‖ ―cargo configuration.‖
47. Consolidator: A person or company that forms groups to travel on air charters or at group fares
on scheduled flights to increase sales, earn override commissions, or reduce the possibility of tour cancellations.
48. Consortium: A group of persons or travel agency companies that pool together their resources to
obtain some travel benefit such as higher commissions, advertising, twenty-four-hour call-in service, or other services.
49. Consumer Disclosure Notice: A written statement frequently used by travel agencies to inform
clients that they are acting merely as ―Agents‖ fro a principal (that is, airline, hotel). With such a disclosure notice, agents take a major step in avoiding liability by obtaining implicit consent from the client to sue the supplier.
50. Continental Breakfast: Usually a beverage with rolls, butter, and jam or marmalade. In Holland
and Norway, cheese, cold cuts, or fish are sometimes included.
51. Continental Plan (CP): Bed and breakfast, meaning hotel accommodations as specified and
breakfast according to the custom of the country.
52. Convention: A business or professional meeting, usually attended by large numbers of people. In
Europe the more prevalent term for convention is ―congress.‖
53. Cooperative Business Corporation: Formed as a joint-stock organization to establish and
maintain a working relationship among its members.
54. Corporate-Owned Chain: A fully owned group of retail chain member outlets featuring common
signage and advertising, usually (but not always) operating under a unified marketing concept and standardized management policies and practices.
55. Coupon Brokers: Travel companies that buy and sell frequent flyer program coupons. 56. Courier (Tour Escort, Tour Leader, Tour Manager): A professional travel escort.
57. Cruise Ships: Ships used specifically for pleasure cruising, as opposed to point-to-point
transportation.
58. Currency Restrictions: Limitations established by a country to control the amount of money taken
in, out, or exchanged within a country.
59. Customs: The formal procedure whereby all persons entering a country must declare their
possession of specific kinds or amounts of items purchased in another country under the jurisdiction of a government agency that has the right to inspect, restrict, seize, and/or impose taxes on goods brought into a country. Also refers to the normal manners or behavioral procedures of a society.
60. Customs Duty: A tax on certain goods being imported.
61. Day Rate: A special rate for a room used by a guest only during the day up to a specific hour,
such as 4:00, 5:00, or 6:00 P.M.
62. Deadhead: A rail, bus, or airline term for a carrier returning with an empty cabin or cargo
payload.
63. Default Protection Plan: A system established to protect travelers and travel intermediaries in the
event of a supplier default. There is currently no system operating; however, several plans are being reviewed.
64. Demi Pension: The same as Modified American Plan.
65. Deposit: A partial payment to hold space, usually refundable if cancellation is made by a
prescribed time.
66. Direct Selling: The sale of travel products by suppliers (airlines, hotels) directly to the customers,
without the use of travel intermediaries such as travel agents.
67. Disclaimer: A legal concept whereby one party (that is, the client) to a transaction declares that
he or she will release the other party (that is, the agent) from liability and responsibility for the transaction under certain stated conditions.
68. Domestic Airline: A carrier providing service within its own country.
69. Domestic Independent tour (DIT): The same as FIT, but more commonly used in the North
American context of an independent, prepaid trip within the county.
70. Domestic Trunks (Domestic Trunk Operations): Domestic operations of the domestic trunk
carriers. This group of carriers operates primarily within the geographical limits of the forth-eight contiguous states of the United States (and the District of Columbia) over routes primarily serving the larger communities.
71. Duty-Free Imports: A government-specified list of item categories and their quantities that may
be brought into the country free of tax or duty charges.
72. Duty-Free Stores: retail stores in which merchandise is sold only to travelers who are leaving the
country. Merchandise is sold completely or partially free of the taxes and duties that would otherwise be imposed by the country in which the store is located.
73. Economy Hotel: A hotel with limited facilities and services targeted at budget travelers, also
referred to as second-class or tourist hotel.
74. Economy Service: Transport service established for the carriage of passengers at fares and
quality of service below first class and business class, also known as coach service. 75. Efficiency Unit: A room that has kitchen facilities, similar to a one-room apartment. Also called a
studio.
76. English Breakfast: Usually includes juice, hot or cold cereal, bacon or ham, eggs, kippers, or
sausages, toast, butter, and jam or marmalade.
77. Entry Requirements: The official documents required t enter a country, which may include a
passport, visa, or document showing inoculations.
78. Errors and Omissions Insurance: Also known as professional liability insurance, this insurance
protects the agency by covering claims for damages suffered by the client for financial loss, inconvenience, embarrassment, or other injuries because of an error or omission on the part of the agent.
79. Escorted Tour: A tour that includes the services of an escort, also called a conducted tour.
80. Escrow Accounts: Funds placed in the custody of licensed financial institutions for safekeeping.
Many contracts in travel require that agents and tour operators maintain customers’ deposits and prepayments in escrow accounts.
81. European Plan(EP): A meal plan that does not include meals with the price of accommodations. 82. Exclusivity: Restriction imposed by the Air Traffic conference that prohibited airlines from
paying commissions to entities lacking ATC accreditation and standardized ticket stock. Prior to deregulation, travel agents and airlines had exclusivity on the sale of air transportation.
83. Excursion: Usually a side trip out of a destination city; may be used interchangeably with tour or
sightseeing.
84. Excursion Fare: Usually a round-trip fare with restrictions such as minimum and maximum stay
and advance purchase requirements.
85. Excursionist: a temporary visitor remaining less than twenty-four hours in the destination visited
and not making an overnight stay.
86. Exit Restrictions: Restrictions (such as an exit Visa or large exit Visa or large exit tax) imposed
by a country to curb outbound travel.
87. Familiarization Trip or Tour: A trip or tour offered to travel agents, tour operators, incentive
planners, travel writers, and so on to promote a new product or destination and the services of the suppliers, usually at a discount price or FOC (free or charge). Also called a ―fam trip.‖
88. Family Plan: Special money-saving arrangement for family travel, applied differently in various
phases of the industry. Generally, members of a family are entitled to discounted fares, accommodation rates, and so on.
89. Fare: The amount per passenger or group of persons stated in the applicable tariff for
transportation, including accompanying baggage unless otherwise specified.
90. Federal Aviation Administration FAA): The Department of Transportation agency that regulates
U.S. civil aviation. Among other things, FAA licenses private and commercial pilots, certifies aircraft and monitors their maintenance, certifies and monitors airport traffic control systems and their personnel, and enforces airline security regulations.
91. First-Class Hotel: A hotel offering a high standard and variety of services. In Europe a first-class
hotel ranks below a deluxe or grand luxe hotel. In Asia, first class may mean a four-star property where five stars denotes the top classification.
92. First-Class Service: Transport service established for the carriage of passengers at premium fares,
for whom premium quality services and seating accommodations are provided. Term also applies to the lodging industry in a similar context.
93. Flag Carrier: A term usually referring to the national airline of a country.
94. Flat Rate: A special room rate for a group negotiated in advance where all rooms in the property,
which may or may not be subject to certain restrictions, are priced at the same rate.
95. Fly-Drive: A package that includes airfare and car rental (and sometimes accommodations).
96. Foreign Independent Tour (FIT) An international trip with the itinerary prepared to the individual
traveler’s specifications. Some suppliers refer to FIT as ―free and independent travelers‖ to denote travelers who have made independent arrangements.
97. Franchise: The right to market a service and/or product, often exclusive fro a specified area, as
granted by the manufacturer, developer, or distributor in return for a fee; prevalent in the fast-food service industry.
98. Franchisor: An entity that grants vested right to use a recognized brand name for an extensive,
contractual time frame. The franchisor typically provides a franchisee with a complete business package, including operational plans and support services. A franchisor is regulated by the Federal Trade Commission.
99. Frequent Flyer Program (FFP): A program whereby bonuses, usually free travel with certain
restrictions, are offered by the airlines to passengers who accumulate travel mileage. Hotels often participate in FFPs by offering similar incentives for hotel patronage based on room nights. FFPs are also termed as FTPs, or Frequent Traveler Programs.
100. Full-service Travel Agency: An agency that offers a full range of services and products related to
international and domestic travel.
101. Gateway City: A city that functions as the primary entry destination for visitors to an area
because of its location, population, and air traffic patterns.
102. General Sales Agent (GSA): An exclusive sales representative of a principal for a given area. 103. Ground Arrangements: Land services such as transfers, sightseeing tours, and so on.
104. Ground Handling Agent: A company that provides local transportation, sightseeing, and other
services to a client at a destination.
105. Ground Operator: A supplier that provides local transportation, accommodations, sightseeing
arrangements, and other services to a client at a destination.
106. Group Inclusive Tour (GIT) A prepaid tour covering transportation, accommodations,
sightseeing arrangements, and other services. Special airfares are provided to the group, requiring that all members must travel on the same flight round trip and must travel together during their entire time abroad.
107. Guaranteed Reservation: A guarantee to the traveler given by the hotel, usually based on advance
deposit, that the room will be held all night in case of late arrival of the traveler. With a guaranteed reservation, the traveler must pay for the room whether or not it is actually used.