LEGASPI, JAENA FRANCINE B.

BSTM 2A

Accommodation- is any facility providing overnight lodging for travelers during their journey. When
contracting accommodations, tour operators must consider room categories, meal plans,
cancellation policies, and seasonal availability.

Adventure Tourism- involves exploration or travel, often with elements of perceived risk, physical
challenge, or unique experiences. This type of tourism requires specialized insurance coverage and
guide certifications but typically commands higher profit margins.

B2B (Business to Business)- refers to commercial transactions conducted between businesses

rather than with individual consumers. Tour operators often operate in the B2B space when selling
through travel agents or partnering with other operators.

Booking Engine- is a software system for processing and managing reservations across various
travel services. An effective booking engine is essential for modern tour operators to handle
accommodations, activities, and transportation bookings efficiently.

Bulk Fare- is a discounted rate offered when purchasing large quantities of services or seats. Tour
operators can leverage bulk fares to secure better margins and competitive package prices.

Charter- is the exclusive hire of transportation, typically aircraft or boats, for a specific period or
route. Charter arrangements can provide tour operators with guaranteed capacity and better cost
control for high-volume routes.

Commission- is a fee paid to agents or intermediaries for selling travel products, usually calculated
as a percentage of the sale price. Understanding commission structures is vital for maintaining
profitable relationships with distribution partners.

Customer Relationship Management (CRM)- is a system for managing all customer interactions,
booking history, preferences, and communications. A robust CRM helps tour operators deliver
personalized service and generate repeat business.

Day Tour- is an organized excursion or activity that begins and ends within the same day, typically
lasting between 2-12 hours. These tours are important revenue generators and often serve as add-
ons to longer packages or standalone products for local markets.

Ecotourism- as more people and businesses are becoming aware of the environmental impact that
travel can have, the niche market of ecotourism is developing. This type of tourism works to ensure
that environmental impacts are minimised at every opportunity and is driven by both the tourist and
the tourism industry. Learn more about ecotourism and sustainable travel here.

Escorted Tour- is a guided group journey with a professional tour leader accompanying travelers
throughout the entire itinerary. These tours require careful logistics planning and skilled tour leaders
to ensure consistent quality and customer satisfaction.
Excursion- is a short trip or tour, typically part of a larger itinerary or available as an add-on option.
Well-designed excursions can increase package value and generate additional revenue through in-
destination sales.

FAM Trip (Familiarization Trip)- is a complimentary or reduced-rate trip offered to travel industry
professionals to showcase destinations or products. FAM trips are valuable opportunities for tour
operators to evaluate new destinations and suppliers firsthand.

FIT (Free Independent Traveler)- is a term used for individuals booking their own travel
arrangements rather than participating in group tours. The FIT market requires more flexible booking
systems and customizable options.

Fly Drive- is a travel package that combines air transportation with a rental car for independent
ground transportation. This is particularly popular among FIT travelers seeking flexibility to explore
destinations at their own pace.

GDS (Global Distribution System)- is a worldwide computerized reservation network used to book
flights, hotels, and other travel services. GDS connectivity can expand a tour operator’s reach and
streamline booking processes.

Group Rate- Hotels will sometimes offer a discounted rate for hotel rooms if you book more than 5
rooms at a time.

Heritage Sites- The UNESCO World Heritage Sites are popular tourist destinations listed by UNESCO
as having cultural or environmental significance.

High Season- is the peak travel period when demand and rates are at their highest. Careful planning
and early booking are essential during high season to secure availability and maintain profitability.

Hospitality- is the industry that serves tourists and travelers. It includes accommodation, food
service, and other guest services.

Inbound Tour Operator- is a company specializing in bringing tourists into a country from abroad.
Inbound operators need strong relationships with local suppliers and deep destination knowledge.

Incentive Travel- refers to travel rewards offered for business performance, often featuring luxury or
unique experiences. The incentive travel market offers higher margins but requires exceptional
attention to detail and service quality.

Itinerary- is a detailed schedule of a travel program, listing activities, times, and locations. Clear,
well-planned itineraries are essential for successful tour operations and customer satisfaction.

Joint Fare- Travelers often want to stop over in a transit country to refresh when taking long-haul
flights. The second flight of their journey may be with a different airline that fits in with their travel
times and needs. The Joint Fare is the fare for both flights combined.

KK- Carrier Confirmed. An abbreviation used when booking airline tickets.

Load Factor- is the percentage of occupancy in transport or accommodation relative to total

capacity. Understanding load factors can be helpful for optimizing pricing and inventory
management.
Low Season- is the off-peak travel period when demand and rates are at their lowest. This period
often presents opportunities for tour operators to negotiate better rates and develop special
promotions.

Luxury Tour Operator- is a company specializing in high-end travel experiences and premium
services. This segment requires extensive supplier networks and exceptional attention to detail.

Markup- A supplier may increase their rate at a time in which there is a higher demand for their
offering. For example, flights and accommodation in a popular destination will increase during
school breaks where there are lots of families travelling.

Market Segment- Identifying a market segment is an ideal way to make sure that your offering is
being marketed to and attracting the right type of customers. This is especially important for niche
tour operators who may specialize in adventure tourism in Canada for under 30’s for example.

MICE (Meetings, Incentives, Conferences, Events)- is a segment of business travel focusing on

group events and corporate gatherings. This market requires specialized knowledge of venues and
group logistics.

Minimum Stay- is the shortest booking period that a supplier allows during specific periods. These
requirements often apply during high season or special events.

Multiday Tour- is an itinerary spanning multiple days with various components including
accommodation, transport, and activities. These tours require careful coordination of multiple
suppliers and services.

Net Rate- is the wholesale price before markup, representing the base cost to the tour operator.
Understanding net rates is essential for building profitable package prices.

No-Show- is a booked customer who doesn’t arrive for their reserved service. No-shows can
significantly impact profitability and require clear policies and procedures.

Occupancy Rate- is the percentage of rooms or seats filled at any given time. This metric helps
operators evaluate performance and adjust pricing strategies.

Online Booking System- An easy way for customers to book (or reserve) an offering online and
receive confirmation without having to go through an agent.

Online Travel Agency (OTA)- is a web-based marketplace where people can go to research, plan and
book travel products or services. For many tour operators working with or listing their products or
services on an OTA allows them to be seen by a wider audience.

OTA (Online Travel Agency)- is an internet-based travel booking platform selling various travel
services. OTAs are both competitors and potential distribution partners for tour operators.

Outbound Tour Operator- is a company specializing in sending tourists abroad from their home
country. These operators require strong international supplier networks and destination knowledge.

Package Tour- is a pre-arranged combination of travel services sold at an inclusive price. These
products typically combine transport, accommodation, and activities into a single offering.
Partners- are strategic allies in the tourism industry, and they’re essential for service delivery and
maintaining successful tour operations.

PAX- is industry terminology for passengers or people in a booking. This term is commonly used in
operational documents and communications.

Payment Gateway- is a technology that processes credit card and other electronic payments
securely between customers, tour operators, and banks. A reliable payment gateway is essential for
tour operators to handle online bookings safely and efficiently while ensuring PCI compliance.

PNR (Passenger Name Record)- is a unique booking record containing traveler details, itineraries,
and other relevant booking information. Tour operators use PNRs to track and manage bookings
across various systems and suppliers.

Quad Room- is accommodation designed for four people, typically with multiple beds. These rooms
are popular for family travel and group tours.

Queue- is a system within GDS platforms for organizing and managing booking modifications,
changes, and tasks. Queue management makes it easier to handle booking updates and customer
service requests systematically.

Release Period- is the timeframe when unused allotment returns to the supplier’s inventory.
Managing release periods effectively is important for inventory control.

Reseller- is a business that sells another company’s travel products. Resellers are important
distribution partners for expanding market reach.

Shoulder Season- is the period between high and low seasons with moderate demand. This period
often offers good opportunities for balanced pricing and availability.

SIT (Special Interest Tour)- is a tour focused on a specific theme or activity such as wildlife,
photography, or culinary experiences. These specialized products often command premium prices.

Single Room- is accommodation designed for one person. Single room supplements are an
important consideration in package pricing.

Tour Leader- is a travel professional who accompanies and manages a group throughout their
journey. Experienced, high-quality tour leaders are essential for successful group tours.

Travel Advisor- is a professional who provides expert travel consultation and planning services.
These professionals are important distribution partners for tour operators.

Transfer- is transportation between two points in a journey, such as from the airport to a hotel.

Upgrade- is a move to a higher category of service than originally booked. Upgrade policies should
be clearly defined in supplier agreements.

Voucher- is a document confirming paid services that customers present to suppliers.

Waitlist- is a list of customers waiting for availability when a service is fully booked. Effective waitlist
management can help maximize sales opportunities.
Yield Management- is a pricing strategy aimed at maximizing revenue based on supply and demand.
This practice is crucial for optimizing profitability across different seasons and market conditions.

Zero Commission- refers to a direct booking model with no payment to intermediaries. This model
is becoming more common with the growth of direct booking channels.