5.17 ETextbook 1

Foundation in Travel
and Tourism
Course textbook
Edition 5.17
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Foundations in Travel and Tourism

Course eTextbook, 5.17 Edition
Material No.: 400915
ISBN 978-92-9229-751-0
© 2019 International Air Transport Association. All rights reserved.
Montreal—Geneva
FOUNDATION IN TRAVEL AND TOURISM COURSE TEXTBOOK 1
TABLE OF CONTENTS
Course Guide ......................................................................................................................... 1

Getting Better Acquainted ............................................................................................................. 3
The Changing Environment of the Travel and Tourism Industry....................................3
Life-Long Learning......................................................................................................... 3
Industry Recognized Qualification .................................................................................3
So What Exactly is in this Course? ................................................................................5
Course Attachments A/B/C/D/E.....................................................................................9
Access Instructions for Modules 11 and 13 ...................................................................9
Navigation Instructions for Online Technology Modules 11 and 13 .............................10
Course Structure ......................................................................................................... 11
Study Tips.................................................................................................................... 14
Examinations ............................................................................................................... 14
Examination Guidelines............................................................................................... 14
Online Practice Exam ..................................................................................................14
Online Practice Exam Access Instructions ..................................................................15
Examination Coverage Information ............................................................................19
Model Examination .....................................................................................................19
Module 1: The Travel and Tourism Industry and the Travel Professional ......................21
Module Introduction..................................................................................................................... 23
1.1 The Role of the Travel Industry Professional in the Travel and Tourism Business ......................25
1.1.0 Unit Overview .............................................................................................................. 25
1.1.1 An Exciting Profession.................................................................................................25
1.1.2 Be a Part of the World's Largest Growth Industry ........................................................27
1.1.3 The Benefits of Aviation to the Tourism Industry .........................................................29
1.1.4 The Evolution of Travel Sales ......................................................................................29
1.1.5 Specialist, Not Generalist ............................................................................................ 30
1.1.6 Look at What's Waiting to be Sold ...............................................................................31
1.1.7 Core Business Remains the Same ..............................................................................32
1.1.8 Useful Tips for Travel Agents.......................................................................................33
1.1.9 Unit Summary ............................................................................................................ 36
1.2 Business Activities that Generate Income ...................................................................................37
1.2.0 Unit Overview .............................................................................................................. 37
1.2.1 Main Business Sectors of Travel and Tourism.............................................................37
1.2.2 Past and Present ......................................................................................................... 37
1.2.3 Niche Players and New Forms of Income....................................................................38
1.2.4 Make Money by Saving Money....................................................................................39
1.2.5 Other Related Business Sectors..................................................................................39
1.2.6 Be Selective................................................................................................................. 40
1.2.7 Unit Summary ............................................................................................................ 41
1.3 The 5 A's Essential to a Successful Destination ..........................................................................42
1.3.0 Unit Overview .............................................................................................................. 42
1.3.1 Five Essential Elements .............................................................................................. 42
1.3.2 Other Critical Requirements: Infrastructure and Security ............................................44
1.3.3 Unit Summary ............................................................................................................ 45
1.4 Business Requirements and Commercial Skills ..........................................................................46
1.4.0 Unit Overview .............................................................................................................. 46
1.4.1 Fundamental Requirements ........................................................................................46
1.4.2 Unit Summary ............................................................................................................ 50
1.5 Types of Employment in the Travel and Tourism Industry...........................................................51
1.5.0 Unit Overview .............................................................................................................. 51
1.5.1 A Wealth of Opportunities............................................................................................ 51
1.5.2 Realities of Employment in the Travel and Tourism Industry .......................................52
1.5.3 Unit Summary ............................................................................................................ 53
1.6 Characteristics, Attributes, and Skills .......................................................................................... 54
1.6.0 Unit Overview .............................................................................................................. 54
1.6.1 Desirable Characteristics.............................................................................................54
1.6.2 Qualifications ............................................................................................................... 55
1.6.3 The Finer Points .......................................................................................................... 57
1.6.4 Unit Summary ............................................................................................................ 58
1.7 Major International Travel and Tourism Organizations................................................................59
1.7.0 Unit Overview .............................................................................................................. 59
1.7.1 Travel and Tourism Organizations...............................................................................59
1.7.2 Unit Summary ............................................................................................................ 65
1.8 Regional and National Travel and Tourism Organizations ..........................................................66
1.8.0 Unit Overview .............................................................................................................. 66
1.8.1 The Role of Regional and National Tourism Organizations .........................................66
1.8.2 Unit Summary ............................................................................................................ 68
1.9 Responsible Travel and Tourism.................................................................................................69
1.9.0 Unit Overview .............................................................................................................. 69
1.9.1 An Important Trend...................................................................................................... 69
1.9.2 What is Responsible Travel and Tourism? ..................................................................70
1.9.3 Promoters of Responsible Travel and Tourism............................................................72
1.9.4 Unit Summary ............................................................................................................ 77
Module Summary ........................................................................................................................ 78
Review Questions ....................................................................................................................... 79
Glossary ...................................................................................................................................... 84
Answer Key ................................................................................................................................. 86
Module 2: Geography in Travel Planning........................................................................... 89
Module Introduction..................................................................................................................... 91
2.1 Marketing and Selling Travel with Geography .............................................................................93
2.1.0 Unit Overview .............................................................................................................. 93
2.1.1 Destination Geography................................................................................................93
2.1.2 Physical Geography .................................................................................................... 95
2.1.3 Cultural Geography ..................................................................................................... 97
2.1.4 Unit Summary ............................................................................................................ 98
2.2 Understanding and Reading Maps .............................................................................................. 99
2.2.0 Unit Overview .............................................................................................................. 99
2.2.1 The World's Continents ............................................................................................... 99
2.2.2 Longitude and Latitude of Map-Reading Skills ..........................................................101
2.2.3 Exploring the Earth's Countries .................................................................................102
2.2.4 Most Visited Cities in the World .................................................................................104
2.2.5 Unit Summary .......................................................................................................... 105
2.3 Three-Letter City Codes ............................................................................................................ 106
2.3.0 Unit Overview ............................................................................................................ 106
2.3.1 Three-Letter City Codes ............................................................................................106
2.3.2 Coding and De-Coding Three-Letter City and Airport Codes.....................................106
2.3.3 Unit Summary .......................................................................................................... 119
2.4 Planning Travel Itineraries......................................................................................................... 120
2.4.0 Unit Overview ............................................................................................................ 120
2.4.1 Qualifying the Customer ............................................................................................120
2.4.2 Planning Air Itineraries............................................................................................... 121
2.4.3 Resources for Research ............................................................................................130
2.4.4 Unit Summary .......................................................................................................... 132
2.5 World Time Zones and Elapsed Travel Times...........................................................................133
2.5.0 Unit Overview ............................................................................................................ 133
2.5.1 Examining the 24-Hour Time Clock ...........................................................................133
2.5.2 World Time Zones ..................................................................................................... 134
2.5.3 International Dateline................................................................................................. 148
2.5.4 Unit Summary .......................................................................................................... 155
2.6 Local Currencies Around the World...........................................................................................156
2.6.0 Unit Overview ............................................................................................................ 156
2.6.1 Understand Types of Local Currencies......................................................................156
2.6.2 Identify Different Local Currencies and Country Currency Codes .............................156
2.6.3 Unit Summary .......................................................................................................... 160
2.7 Modes of Transport Around the World.......................................................................................161
2.7.0 Unit Overview ............................................................................................................ 161
2.7.1 Development of World Transport Modes ...................................................................161
2.7.2 Transport in Europe ................................................................................................... 161
2.7.3 Transport in Asia........................................................................................................ 164
2.7.4 Transport in North America........................................................................................166
2.7.5 Transport in South America .......................................................................................168
2.7.6 Transport in Africa ..................................................................................................... 169
2.7.7 Transport in Australia.................................................................................................171
2.7.8 Future Trends in Intercontinental Transport...............................................................172
2.7.9 Unit Summary .......................................................................................................... 173
Module Summary ...................................................................................................................... 174
Review Questions ..................................................................................................................... 175
Appendix: Useful Web Sites ...................................................................................................... 177
Glossary .................................................................................................................................... 177
Recommended Videos .............................................................................................................. 178
References ................................................................................................................................ 178
Answer Key ............................................................................................................................... 179
Geography in Travel Planning Workbook ..................................................................................182
Module 3: Travel Formalities............................................................................................. 183

Module Introduction................................................................................................................... 185
3.1 Travel Documents ..................................................................................................................... 187
3.1.0 Unit Overview ............................................................................................................ 187
3.1.1 The Passport ............................................................................................................. 187
3.1.2 Types of Passports .................................................................................................... 190
3.1.3 The Visa .................................................................................................................... 191
3.1.4 Types of Visa ............................................................................................................ 192
3.1.5 Electronic Travel Authorizations ................................................................................193
3.1.6 Advanced Passenger Information System (APIS) .....................................................194
3.1.7 Obtaining Travel Documents .....................................................................................195
3.1.8 Unit Summary .......................................................................................................... 199
3.2 Health & Preventative Measures for Travelers ..........................................................................200
3.2.0 Unit Overview ............................................................................................................ 200
3.2.1 Health ........................................................................................................................ 200
3.2.2 General Preventative Measures ................................................................................202
3.2.3 Unit Summary .......................................................................................................... 205
3.3 Taxes, Customs, and Currencies ..............................................................................................206
3.3.0 Unit Overview ............................................................................................................ 206
3.3.1 Taxes......................................................................................................................... 206
3.3.2 Customs .................................................................................................................... 206
3.3.3 Currency and Other Forms of Payment .....................................................................208
3.3.4 Unit Summary .......................................................................................................... 212
3.4 Timatic Solutions ....................................................................................................................... 213
3.4.0 Unit Overview ............................................................................................................ 213
3.4.1 Timatic Solutions ...................................................................................................... 213
3.4.2 Passport Section in Timatic .......................................................................................214
3.4.3 Visa Section in Timatic .............................................................................................. 222
3.4.4 Health Section in Timatic ...........................................................................................225
3.4.5 Taxes Section in Timatic............................................................................................228
3.4.6 Customs Section in Timatic .......................................................................................230
3.4.7 Currency Section in Timatic.......................................................................................233
3.4.8 Unit Summary .......................................................................................................... 237
3.5 Travel Insurance........................................................................................................................ 238
3.5.0 Unit Overview ............................................................................................................ 238
3.5.1 Types of Travel Insurance .........................................................................................238
3.5.2 Benefits for the Traveler ............................................................................................240
3.5.3 Travel Insurance by Jurisdiction ................................................................................241
3.5.4 Common Travel Emergencies ...................................................................................242
3.5.5 Where Travelers Can Buy Insurance.........................................................................243
3.5.6 Why Buy Insurance from a Travel Agent ...................................................................243
3.5.7 Why Travel Agents Should Sell Travel Insurance......................................................244
3.5.8 Travel Insurance Terminology ...................................................................................245
3.5.9 Standard Travel Insurance Coverage and Exclusions...............................................246
3.5.10 The Insurance Claim..................................................................................................248
3.5.11 Unit Summary .......................................................................................................... 252
Module Summary ...................................................................................................................... 253
Glossary .................................................................................................................................... 260
Answer Key ............................................................................................................................... 263
Module 4: Air Transport Essentials ..................................................................................265

4.1 The Airport................................................................................................................................. 269
4.1.0 Unit Overview ............................................................................................................ 269
4.1.1 Airport Terminals ....................................................................................................... 270
4.1.2 Departure Formalities ................................................................................................273
4.1.3 Transit Areas ............................................................................................................. 277
4.1.4 Arrival Formalities...................................................................................................... 279
4.1.5 Fast Travel................................................................................................................. 283
4.1.6 Smart Security ........................................................................................................... 284
4.1.7 Unit Summary .......................................................................................................... 289
4.2 Airline Products and Services Important to Passengers............................................................290
4.2.0 Unit Overview ............................................................................................................ 290
4.2.1 Airline Alliance Networks ...........................................................................................290
4.2.2 Airline Loyalty Programs............................................................................................293
4.2.3 Alliances and Frequent Flyer Programs.....................................................................295
4.2.4 Cabin Classes ........................................................................................................... 297
4.2.5 Booking Class Codes ................................................................................................300
4.2.6 Aircraft Seat Configuration and Seat Assignment......................................................301
4.2.7 Categories of Special Passengers Types ..................................................................308
4.2.8 Special Meals ............................................................................................................ 311
4.2.9 Wheelchairs............................................................................................................... 314
4.2.10 Pre-Flight and In-Flight Products and Services .........................................................316
4.2.11 Unit Summary .......................................................................................................... 317
4.3 Ancillaries .................................................................................................................................. 318
4.3.0 Unit Overview ............................................................................................................ 318
4.3.1 What Are Ancillaries? ................................................................................................318
4.3.2 Can Travel Agencies Sell Ancillaries? .......................................................................320
4.3.3 How Do Passengers, Travel Agents and Airlines Benefit from the Sale of
Ancillaries? ................................................................................................................ 321
4.3.4 Reserving Ancillaries in the GDS System..................................................................322
4.3.5 Unit Summary .......................................................................................................... 326
4.4 Baggage Allowance................................................................................................................... 327
4.4.0 Unit Overview ............................................................................................................ 327
4.4.1 Definition of Baggage ................................................................................................328
4.4.2 Unchecked Baggage Allowance ................................................................................329
4.4.3 Checked Baggage Allowances ..................................................................................332
4.4.4 Checked Baggage Allowance for Children/Infants.....................................................336
4.4.5 Assessing Baggage Rules for Interline Itineraries .....................................................336
4.4.6 Determining Baggage Allowance for Agency Customers ..........................................341
4.4.7 Excess Baggage........................................................................................................ 345
4.4.8 Special Provisions for Transporting Items other than Luggage as Checked
Baggage .................................................................................................................... 348
4.4.9 Transporting Pets as Accompanied Baggage............................................................350
4.4.10 Checking Baggage at the Airport ...............................................................................352
4.4.11 Safe Transportation of Checked Baggage.................................................................355
4.4.12 Shipping Luggage as an Alternative ..........................................................................359
4.4.13 Unit Summary .......................................................................................................... 361
4.5 Interpreting Flight Timetables .................................................................................................... 362
4.5.0 Unit Overview ............................................................................................................ 362
4.5.1 Flight Schedule Information Data ..............................................................................362
4.5.2 Steps Involved in Looking up Flight Schedule Information ........................................363
4.5.3 More about Aircraft Types ......................................................................................... 363
4.5.4 Online Web-based Timetables ..................................................................................367
4.5.5 Timetables Displayed in a GDS .................................................................................375
4.5.6 The Phonetic Alphabet .............................................................................................. 379
4.5.7 Unit Summary .......................................................................................................... 380
4.6 Industry Codes, Terminology, and Definitions ...........................................................................381
4.6.0 Unit Overview ............................................................................................................ 381
4.6.1 Industry Terminology and Definitions ........................................................................381
4.6.2 2-Character Airline Codes .........................................................................................385
4.6.3 Transmitting Reservation Information to Airlines .......................................................389
4.6.4 The Service Information Field....................................................................................392
4.6.5 Miscellaneous Abbreviations .....................................................................................398
4.6.6 Unit Summary .......................................................................................................... 400
4.7 International Air Transportation Regulations .............................................................................401
4.7.0 Unit Overview ............................................................................................................ 401
4.7.1 The Warsaw Convention ...........................................................................................401
4.7.2 The Montreal Convention .......................................................................................... 401
4.7.3 The Chicago Convention and ICAO...........................................................................403
4.7.4 Bilateral Agreements ................................................................................................. 403
4.7.5 Unit Summary .......................................................................................................... 404
Module Summary ...................................................................................................................... 405
Glossary .................................................................................................................................... 420
References ................................................................................................................................ 423
Answer Key ............................................................................................................................... 424
Module 5: Land Transport: Introduction to Passenger Rail ...........................................429

5.1 Why Take the Train? ................................................................................................................. 433
5.1.0 Unit Overview ............................................................................................................ 433
5.1.1 Railway Station or Airport? ........................................................................................433
5.1.2 A Comfortable Journey .............................................................................................. 434
5.1.3 Popularity of Rail Travel............................................................................................. 435
5.1.4 Environmental Concerns ...........................................................................................436
5.1.5 Unit Summary .......................................................................................................... 438
5.2 Rail Products Around the World ................................................................................................439
5.2.0 Unit Overview ............................................................................................................ 439
5.2.1 High-Speed Trains.....................................................................................................439
5.2.2 High-Speed Trains on Upgraded Lines......................................................................441
5.2.3 Long-Distance Trains ................................................................................................441
5.2.4 Eurocity, Nightjet and Intercity Trains ........................................................................442
5.2.5 Regional and Local Trains .........................................................................................443
5.2.6 Which Train is that? ................................................................................................... 444
5.2.7 Special Luxury Trains and Tourist Lines....................................................................445
5.2.8 Unit Summary .......................................................................................................... 446
5.3 Finding Train Times Online ....................................................................................................... 447
5.3.0 Unit Overview ............................................................................................................ 447
5.3.1 Using a Journey Planner ...........................................................................................447
5.3.2 The Results of a Timetable Query .............................................................................450
5.3.3 Interpreting the Train Details .....................................................................................451
5.3.4 Check the Journey on a Map .....................................................................................453
5.3.5 Useful Websites......................................................................................................... 454
5.3.6 Unit Summary .......................................................................................................... 455
5.4 On Board the Train .................................................................................................................... 456
5.4.0 Unit Overview ............................................................................................................ 456
5.4.1 Classes of Travel ....................................................................................................... 456
5.4.2 Sleeping Accommodation.......................................................................................... 457
5.4.3 ‘Through Cars’ for Different Destinations...................................................................458
5.4.4 Are there Meals on Board? ........................................................................................458
5.4.5 Special Facilities........................................................................................................ 459
5.4.6 Unit Summary .......................................................................................................... 460
5.5 More about Timetables.............................................................................................................. 461
5.5.0 Unit Overview ............................................................................................................ 461
5.5.1 An Amtrak Timetable ................................................................................................. 461
5.5.2 Journey Planner or Timetable?..................................................................................464
5.5.3 National Timetables................................................................................................... 465
5.5.4 Timetable Symbols .................................................................................................... 467
5.5.5 The European Rail Timetable ....................................................................................469
5.5.6 Unit Summary .......................................................................................................... 474
5.6 Fares and Tickets ...................................................................................................................... 475
5.6.0 Unit Overview ............................................................................................................ 475
5.6.1 Rail Fares Differentiated ............................................................................................475
5.6.2 Finding Rail Fares...................................................................................................... 476
5.6.3 Reservations.............................................................................................................. 477
5.6.4 Tickets and eTickets ..................................................................................................477
5.6.5 Rail Passes................................................................................................................ 479
5.6.6 The Specialized Travel Agent....................................................................................481
5.6.7 Conditions of Carriage ............................................................................................... 482
5.6.8 Unit Summary .......................................................................................................... 484
Module Summary ...................................................................................................................... 485
Useful Websites ........................................................................................................................ 491
Useful Videos ............................................................................................................................ 491
Glossary .................................................................................................................................... 492
Acknowledgements ................................................................................................................... 494
Answer Key ............................................................................................................................... 495
Module 6: Land Transport: Car and Camper ...................................................................499
6.1 The Car Rental Industry ............................................................................................................ 503
6.1.0 Unit Overview ............................................................................................................ 503
6.1.1 Global Car Rental: An Overview ................................................................................503
6.1.2 What is Included with a Car Rental? ..........................................................................505
6.1.3 How and Where Car Rental is Distributed .................................................................516
6.1.4 Unit Summary .......................................................................................................... 518
6.2 The Car Rental Procedures....................................................................................................... 519
6.2.0 Unit Overview ............................................................................................................ 519
6.2.1 Ask Questions ........................................................................................................... 519
6.2.2 Driver Qualifications ..................................................................................................521
6.2.3 Calculating Car Rental Costs.....................................................................................521
6.2.4 Car Rental Discount Schemes...................................................................................523
6.2.5 Deposits and Payments.............................................................................................524
6.2.6 At Last: The Booking Procedure ................................................................................525
6.2.7 Unit Summary .......................................................................................................... 527
6.3 Hints for Your Clients En Route................................................................................................. 528
6.3.0 Unit Overview ............................................................................................................ 528
6.3.1 Ahead of the Trip ....................................................................................................... 528
6.3.2 During the Journey .................................................................................................... 529
6.3.3 After the Trip .............................................................................................................. 529
6.3.4 Unit Summary .......................................................................................................... 530
6.4 Camper Van Rentals ................................................................................................................. 531
6.4.0 Unit Overview ............................................................................................................ 531
6.4.1 Why Camper Van Rentals are Different?...................................................................531
6.4.2 Where do Camper Van Holidays Happen?................................................................533
6.4.3 Who Goes for Camper Van Vacations?.....................................................................533
6.4.4 Knowing Before Booking ...........................................................................................534
6.4.5 From Pick-up to Drop-off: Requirements and Options ...............................................534
6.4.6 Helpful Hints for a Camper Van Holiday ....................................................................535
6.4.7 Unit Summary .......................................................................................................... 536
Module Summary ...................................................................................................................... 537
Other Resources and References ............................................................................................. 542
Glossary .................................................................................................................................... 542
References ................................................................................................................................ 542
Answer Key ............................................................................................................................... 543
Module 7: Hotels Products and Services .........................................................................545
7.1 Know Your Customers............................................................................................................... 549
7.1.0 Unit Overview ............................................................................................................ 549
7.1.1 Common Needs......................................................................................................... 549
7.1.2 Major Market Segments.............................................................................................553
7.1.3 Unit Summary .......................................................................................................... 559
7.2 Hotel Accommodations ............................................................................................................. 560
7.2.0 Unit Overview ............................................................................................................ 560
7.2.1 Hotel Types and Their Services.................................................................................560
7.2.2 Hotel Trends in Sustainability ....................................................................................565
7.2.3 Hotel Ratings, Classifications and Brands .................................................................566
7.2.4 Unit Summary .......................................................................................................... 576
7.3 The Language of Accommodation.............................................................................................577
7.3.0 Unit Overview ............................................................................................................ 577
7.3.1 Hotel Facilities & Services .........................................................................................577
7.3.2 Bedding Types .......................................................................................................... 581
7.3.3 Room Types .............................................................................................................. 582
7.3.4 Meal Plans................................................................................................................. 583
7.3.5 Unit Summary .......................................................................................................... 586
7.4 Sources of Hotel Information ..................................................................................................... 587
7.4.0 Unit Overview ............................................................................................................ 587
7.4.1 The GDS as a Resource............................................................................................587
7.4.2 Resource Websites ................................................................................................... 593
7.4.3 Review Resources.....................................................................................................596
7.4.4 Unit Summary .......................................................................................................... 599
7.5 Hotel Room Rates ..................................................................................................................... 600
7.5.0 Unit Overview ............................................................................................................ 600
7.5.1 Rate Structures.......................................................................................................... 600
7.5.2 Factors Affecting the Pricing of Hotel Rooms ............................................................602
7.5.3 Unit Summary .......................................................................................................... 607
7.6 Hotel Reservations and Payments ............................................................................................608
7.6.0 Unit Overview ............................................................................................................ 608
7.6.1 Reservations.............................................................................................................. 608
7.6.2 Sales and Payment Terms ........................................................................................617
7.6.3 Unit Summary .......................................................................................................... 620
7.7 Hotel Reservation Terms and Conditions ..................................................................................621
7.7.0 Unit Overview ............................................................................................................ 621
7.7.1 Terms and Conditions Related to Cancellations........................................................621
7.7.2 Currency Fluctuations................................................................................................622
7.7.3 Commission Policies .................................................................................................623
7.7.4 Unit Summary .......................................................................................................... 625
7.8 Hotel Guest Loyalty Programs................................................................................................... 626
7.8.0 Unit Overview ............................................................................................................ 626
7.8.1 Types of Hotel Loyalty Programs...............................................................................626
7.8.2 Terms of Membership................................................................................................628
7.8.3 Booking Rewards Travel............................................................................................629
7.8.4 Programs Overview ................................................................................................... 630
Module Summary ...................................................................................................................... 636
Glossary .................................................................................................................................... 644
Answer Key ............................................................................................................................... 652
Case Study Answer Key............................................................................................................ 655
References ................................................................................................................................ 658
Module 8: Water Transport: Ferries and Cruises ............................................................659

8.1 History and Types of Maritime Services ....................................................................................663
8.1.0 Unit Overview ............................................................................................................ 663
8.1.1 Water: Linking a World of Transport ..........................................................................663
8.1.2 History of Water Transportation.................................................................................663
8.1.3 Origins of Cruising .....................................................................................................665
8.1.4 Types of Ferries......................................................................................................... 666
8.1.5 Types of Cruise Ships................................................................................................667
8.1.6 Unit Summary .......................................................................................................... 669
8.2 Cruising: A Growth Industry....................................................................................................... 670
8.2.0 Unit Overview ............................................................................................................ 670
8.2.1 Expansion of the Cruise Industry ...............................................................................670
8.2.2 Introduction of the Mega Ships ..................................................................................670
8.2.3 Consolidation of the Cruise Lines ..............................................................................671
8.2.4 Unit Summary .......................................................................................................... 673
8.3 Cruises ...................................................................................................................................... 674
8.3.0 Unit Overview ............................................................................................................ 674
8.3.1 Transportation and Recreation ..................................................................................674
8.3.2 Unit Summary .......................................................................................................... 676
8.4 Structure of the Cruise Industry ................................................................................................. 677
8.4.0 Unit Overview ............................................................................................................ 677
8.4.1 Cruise Line Association .............................................................................................677
8.4.2 Main Cruise Lines and their Ships .............................................................................677
8.4.3 Cruise Classification ..................................................................................................678
8.4.4 Unit Summary .......................................................................................................... 679
8.5 Cruise Product Features............................................................................................................ 680
8.5.0 Unit Overview ............................................................................................................ 680
8.5.1 Itineraries................................................................................................................... 680
8.5.2 Length of a Cruise .....................................................................................................681
8.5.3 Specialty Cruises....................................................................................................... 681
8.5.4 Social Groupings ....................................................................................................... 682
8.5.5 Unit Summary .......................................................................................................... 683
8.6 Cruise Product Benefits............................................................................................................. 684
8.6.0 Unit Overview ............................................................................................................ 684
8.6.1 Passenger Benefits & Savings ..................................................................................684
8.6.2 Agency Benefits......................................................................................................... 684
8.6.3 Cruise Line Brochures ...............................................................................................685
8.7 Selling a Cruise ......................................................................................................................... 687
8.7.0 Unit Overview ............................................................................................................ 687
8.7.1 Choosing a Cruise .....................................................................................................687
8.7.2 Cruise Requirements.................................................................................................687
8.7.3 Booking a Cruise ....................................................................................................... 688
Module Summary ...................................................................................................................... 690
Answer Key ............................................................................................................................... 695
References ................................................................................................................................ 696
Glossary .................................................................................................................................... 696
Module 9: Tour Packages.................................................................................................. 697

9.1 Types of Tours and Tour Components ......................................................................................701
9.1.0 Unit Overview ............................................................................................................ 701
9.1.1 Definition, History, and Types of Tours......................................................................701
9.1.2 Pre-Packaged Tour Components ..............................................................................705
9.1.3 Advantages of Selling Tours......................................................................................710
9.1.4 Unit Summary .......................................................................................................... 713
9.2 Tour Brochures and Price Quotations .......................................................................................714
9.2.0 Unit Overview ............................................................................................................ 714
9.2.1 Key Aspects of a Tour Brochure ................................................................................714
9.2.2 Tour Brochure Price Quotation ..................................................................................717
9.2.3 Unit Summary .......................................................................................................... 719
9.3 Reservation and Accounting Procedures ..................................................................................720
9.3.0 Unit Overview ............................................................................................................ 720
9.3.1 Tour Reservation Procedures....................................................................................720
9.3.2 Tour Accounting Procedures .....................................................................................721
9.3.3 Unit Summary .......................................................................................................... 722
9.4 Tour Booking Conditions and Limitations of Liability .................................................................723
9.4.0 Unit Overview ............................................................................................................ 723
9.4.1 Tour Booking Conditions ...........................................................................................723
9.4.2 Limitations of Liability.................................................................................................726
9.4.3 Unit Summary .......................................................................................................... 727
Module Summary ...................................................................................................................... 728
Glossary .................................................................................................................................... 732
References ................................................................................................................................ 733
Answer Key ............................................................................................................................... 734
Module 10: Serving the Travel Customer.........................................................................735

10.1 Customer Service in the Travel Industry....................................................................................739
10.1.0 Unit Overview ............................................................................................................ 739
10.1.1 The Role of the Travel Professional...........................................................................739
10.1.2 The Needs and Expectations of the Travel Customer ...............................................740
10.1.3 What Customer Service Means .................................................................................742
10.1.4 Using the Internet to Serve Customers......................................................................744
10.1.5 Unit Summary .......................................................................................................... 747
10.2 Communicating with Customers................................................................................................748
10.2.0 Unit Overview ............................................................................................................ 748
10.2.1 Verbal Communication ..............................................................................................748
10.2.2 Non-Verbal Communication ......................................................................................752
10.2.3 Telephone and Text-Based Communication .............................................................754
10.2.4 Overcoming Language Barriers.................................................................................760
10.2.5 Unit Summary .......................................................................................................... 764
10.3 Customer Service and Technology ...........................................................................................767
10.3.0 Unit Overview ............................................................................................................ 767
10.3.1 Information Customers Expect ..................................................................................767
10.3.2 Available Modes of Communication ..........................................................................769
10.3.3 Automating Customer Communication ......................................................................770
10.3.4 Embracing Technology to Serve Travel Customers ..................................................773
10.3.5 Unit Summary .......................................................................................................... 784
10.4 Winning Customer Loyalty......................................................................................................... 785
10.4.0 Unit Overview ............................................................................................................ 785
10.4.1 Four Steps in Delivering Exceptional Service ............................................................785
10.4.2 Provide After Sales Service and Support...................................................................789
10.4.3 Protect Customer Interests ........................................................................................790
10.4.4 Maintaining Customer Loyalty ...................................................................................791
10.4.5 Unit Summary .......................................................................................................... 795
10.5 Handling Difficult Customer Service Situations .........................................................................796
10.5.0 Unit Overview ............................................................................................................ 796
10.5.1 Why Customers Get Upset ........................................................................................797
10.5.2 Responding to a Customer Who is Upset ..................................................................797
10.5.3 Calming Customers on the Telephone ......................................................................800
10.5.4 Calming the Customer: Do's and Don'ts ....................................................................800
10.5.5 Dealing with Customers' Challenging Requests ........................................................802
10.5.6 Keeping Self-Control .................................................................................................803
10.5.7 Unit Summary .......................................................................................................... 807
10.6 Coping with Work Stress ........................................................................................................... 808
10.6.0 Unit Overview ............................................................................................................ 808
10.6.1 Sources of Stress in the Workplace...........................................................................808
10.6.2 Coping with Stress..................................................................................................... 809
10.6.3 Unit Summary .......................................................................................................... 813
Module Summary ...................................................................................................................... 814
Glossary .................................................................................................................................... 815
References ................................................................................................................................ 818
Answer Key ............................................................................................................................... 827
Case Study Answer Key............................................................................................................ 830
Module 11: Electronic Booking Tools ..............................................................................833

Module 12: Fundamentals in Air Fares and Ticketing.....................................................837

Disclaimer.................................................................................................................................. 843
Fundamentals in Air Fares and Ticketing–Activity Workbook–Attachment E ............................844
Recommendations .................................................................................................................... 844
Symbols and Abbreviations ....................................................................................................... 845
12.1 The Fare Lookup Tool ............................................................................................................... 846
12.1.0 Unit Overview ............................................................................................................ 846
12.1.1 Access to the Fare Lookup Tool Online .....................................................................846
12.1.2 Fare Lookup Tool Contents .......................................................................................848
12.1.3 Coding and Decoding ................................................................................................849
12.1.4 Fares ......................................................................................................................... 850
12.1.5 Ticketed Point Mileages.............................................................................................853
12.1.6 Unit Summary .......................................................................................................... 857
12.2 Introduction to Essential Pricing Terms .....................................................................................859
12.2.0 Unit Overview ............................................................................................................ 859
12.2.1 Identifying Points in a Journey ...................................................................................859
12.2.2 Frequently Used Terms ............................................................................................. 864
12.2.3 Unit Summary .......................................................................................................... 875
12.3 Geography, Tariff Conference Areas and Global Indicators ......................................................877
12.3.0 Unit Overview ............................................................................................................ 877
12.3.1 IATA Areas of the World ............................................................................................ 877
12.3.2 Tariff Conference Subareas.......................................................................................879
12.3.3 Two TCs for Russia .................................................................................................. 889
12.3.4 IATA Global Indicators............................................................................................... 890
12.3.5 Unit Summary .......................................................................................................... 906
12.4 Journey and Pricing Unit Anatomy ............................................................................................908
12.4.0 Unit Overview ............................................................................................................ 908
12.4.1 Journey Types ........................................................................................................... 908
12.4.2 Pricing Unit (PU) ........................................................................................................ 915
12.4.3 Unit Summary .......................................................................................................... 934
12.5 Fare Basis Codes and Fare Types ............................................................................................935
12.5.0 Unit Overview ............................................................................................................ 935
12.5.1 Cabin Class versus Booking Class ............................................................................935
12.5.2 Booking Class Code Different from Prime Code........................................................937
12.5.3 Normal versus Special Fares.....................................................................................939
12.5.4 More about the Fare Basis Code ...............................................................................946
12.5.5 Unit Summary .......................................................................................................... 952
12.6 Currency Rules.......................................................................................................................... 953
12.6.0 Unit Overview ............................................................................................................ 953
12.6.1 Currency-Related Terms ...........................................................................................953
12.6.2 Establishing Local Currency Fares ............................................................................954
12.6.3 Neutral Unit of Construction (NUC)............................................................................956
12.6.4 IATA Rate of Exchange (IROE) .................................................................................957
12.6.5 Currency Rounding Rules..........................................................................................958
12.6.6 IATA Currency to Currency Exchange Rates ............................................................960
12.6.7 Unit Summary .......................................................................................................... 965
12.7 Carrier Mileage and Routing Fares............................................................................................966
12.7.0 Unit Overview ............................................................................................................ 966
12.7.1 Routing versus Mileage Fares ...................................................................................966
12.7.2 Routing Fares ............................................................................................................ 968
12.7.3 Mileage Fares............................................................................................................ 971
12.7.4 Unit Summary .......................................................................................................... 980
12.8 Q Surcharge .............................................................................................................................. 981
12.8.0 Unit Overview ............................................................................................................ 981
12.8.1 Define Q Surcharges ................................................................................................. 981
12.8.2 Sourcing and Interpreting Q Surcharge Provisions....................................................982
12.8.3 Unit Summary .......................................................................................................... 987
12.9 Taxes, Fees and Charges ......................................................................................................... 988
12.9.0 Unit Overview ............................................................................................................ 988
12.9.1 Types of TFCs ........................................................................................................... 988
12.9.2 Conversion of TFCs to Ticket Currency.....................................................................991
12.9.3 Taxes/Fees/Charges on Tickets ................................................................................993
12.9.4 Unit Summary .......................................................................................................... 997
12.10 The Ticket................................................................................................................................. 998
12.10.0 Unit Overview ............................................................................................................ 998
12.10.1 Ticketing .................................................................................................................... 998
12.10.2 Participating Airlines in the Ticketing Process ...........................................................999
12.10.3 Interline Tickets ......................................................................................................... 999
12.10.4 Passenger Data and Proof of Identity ......................................................................1000
12.10.5 Locating and Interpreting Ticket Data ......................................................................1001
12.10.6 More About Ticket Elements....................................................................................1006
12.10.7 Passenger Itinerary Receipt (ITR) ...........................................................................1009
12.10.8 Unit Summary ........................................................................................................ 1014
12.11 Upsell Fares ........................................................................................................................... 1015
12.11.0 Unit Overview .......................................................................................................... 1015
12.11.1 What are Traditional Fares? ....................................................................................1016
12.11.2 How to Search for Traditional Fares Online .............................................................1017
12.11.3 What Are Upsell Fares?...........................................................................................1018
12.11.4 How to Research Upsell Fares Online.....................................................................1021
12.11.5 How to search Upsell Products in the GDS .............................................................1024
12.11.6 Upsell (Fare Families) in Amadeus..........................................................................1026
12.11.7 Upsell (Branded) Fares in Sabre .............................................................................1032
12.11.8 Upsell (Branded) Fares in Travelport/Galileo...........................................................1039
12.11.9 Unit Summary ........................................................................................................ 1050
12.12 Credit Cards ........................................................................................................................... 1051
12.12.0 Unit Overview .......................................................................................................... 1051
12.12.1 Collect versus Pass-Through Model........................................................................1052
12.12.2 Key Card Payment Terms and Definitions...............................................................1053
12.12.3 International Credit Card Brands .............................................................................1056
12.12.4 Universal Air Travel Plan .........................................................................................1057
12.12.5 Card Payment Processing Methods ........................................................................1058
12.12.6 Guidelines for Airline Product Sales ........................................................................1060
12.12.7 Standard Credit Card Security Features..................................................................1061
12.12.8 Credit Card Fraud Prevention..................................................................................1063
12.12.9 Unit Summary ........................................................................................................ 1068
12.13 Children and Infant Fares ....................................................................................................... 1070
12.13.0 Unit Overview .......................................................................................................... 1070
12.13.1 Accompanied Minors ...............................................................................................1070
12.13.2 Rule category 19 of the Fare Rule ...........................................................................1070
12.13.3 Infants Turning Two Enroute ...................................................................................1074
12.13.4 Unaccompanied Minors...........................................................................................1074
12.13.5 Unit Summary ........................................................................................................ 1076
12.14 Restricted Fares and Conditions ............................................................................................1077
12.14.0 Unit Overview .......................................................................................................... 1077
12.14.1 What is a Restricted Fare? ......................................................................................1077
12.14.2 Excursion Fares....................................................................................................... 1078
12.14.3 Instant Purchase Excursion (PEX) Fare ..................................................................1086
12.14.4 Advance Purchase Excursion (APEX) Fare.............................................................1095
12.14.5 Unit Summary ........................................................................................................ 1105
12.15 Electronic Miscellaneous Documents .....................................................................................1106
12.15.0 Unit Overview .......................................................................................................... 1106
12.15.1 Participants in the EMD Process .............................................................................1106
12.15.2 EMD Reasons for Issuance Code (RFIC)................................................................1106
12.15.3 Reason for Issuance Sub-Code...............................................................................1107
12.15.4 Types of EMD .......................................................................................................... 1107
12.15.5 Unit Summary ........................................................................................................ 1118
12.16 Consolidator and Net Fares.................................................................................................... 1119
12.16.0 Unit Overview .......................................................................................................... 1119
12.16.1 IATA and Non-IATA Travel Agents ..........................................................................1119
12.16.2 Background to Consolidation...................................................................................1120
12.16.3 Consolidator (Net) Fares .........................................................................................1121
12.16.4 Net Remit................................................................................................................. 1123
12.16.5 Ticketing Private/Net Fares .....................................................................................1124
12.16.6 Net Ticket Refunds .................................................................................................. 1125
12.16.7 Unit Summary ........................................................................................................ 1126
Recommended Websites ........................................................................................................ 1127
References .............................................................................................................................. 1127
Recommended Videos ............................................................................................................ 1128
Module Summary .................................................................................................................... 1129
Review Questions ................................................................................................................... 1131
Answer Key ............................................................................................................................. 1135
Decodes .................................................................................................................................. 1142
Glossary .................................................................................................................................. 1146
Module 13: Technology in Travel: Distribution and Airline Retailing with NDC .........1153
Module Introduction................................................................................................................. 1155
Course Guide
International Travel and Tourism Training Program
Getting Better Acquainted
The Changing Environment of the Travel and Tourism

Industry
What will be the role of the Travel Agent in the future? The travel and tourism
industry sees the role of the travel professional as a consultancy-oriented one,
providing high product knowledge, accurate information, excellent customer
service and support, and creative thinking. Travel industry analysts and experts
believe that these new roles provide new opportunities for career success. This
training program reflects these changes and will prepare you for a successful
career as an international travel professional in a dynamic and exciting
industry.
Life-Long Learning
The IATA International Travel & Tourism Training Program is:
• ideally positioned at the center of the industry
• focused on industry priorities
• an opportunity for career development
• based on skill-building and career progression
• qualifications-based
• learner-friendly
Each level is comprised of various modules organized into themes:
• Environment
• Products
• Support Services
• Fares & Ticketing
• Strategy & Management
Industry Recognized Qualification

IATA is the International Air Transport Association (IATA) which represents
about 290 airlines comprising 85% of total air traffic. IATA also leads,
represents and serves the airline industry in general.
The value of an IATA qualification:
• industry leader in international travel professional training
• world-wide recognition and acceptance
• more than 30 years of training experience
Getting Better Acquainted 3

About IATA
The International Air Transport Association (IATA) is the trade association for
the world's airlines, representing some 280 airlines or 83% of total air traffic.
Learn more: www.iata.org
About IATA Training

• More than 1,000,000 students have chosen us!
• Each year, we train 100,000+ aviation professionals with a commitment to
developing careers and a workforce that makes our industry safe, secure,
and sustainable.
• Our 350+ courses are developed around IATA's areas of expertise and
commitment to promoting industry standards worldwide.
• We offer flexible training solutions in a classroom, self-study or in-house
format to meet all budgets and needs.
• Graduates receive IATA qualifications that are recognized and respected
worldwide!
Career Development with IATA Training

Aviation is big business! Not only does it span the globe, generating more than
$800 billion in revenues but also it covers a wide spectrum of careers.
Whether you already have your foot on the ladder or are just starting out, IATA
Training offers a course that will turn an opportunity into a successful career.
Once you start to work as a travel professional, it is recommended that you
begin the second level of the career-path, the Travel and Tourism Consultant
course (www.iata.org/training/courses/Pages/travel-tourism-consultanttttg09.
aspx). This will bring you to a solid level of understanding of the consultative
role of a travel professional and the practical skills associated with being a
successful “Travel Consultant”.
IATA encourages you to continue to study with IATA to earn the Diploma in
Travel Sales and Operations upon completion of the three travel and tourism
diploma courses. The IATA Diploma in Travel Sales and Operations awards
travel professionals with the highest IATA recognition.
IATA Training Partners

If you are studying on your own and need tutoring support, you are welcome to
take advantage of professional and qualified tutoring services offered by the
IATA Authorized Training Centre closest to you. Please see our website for a
list for these centers. Visit www.iata.org/training-atc
Get on the right career path with us! Learn more: www.iata.org/training
Contact us at: www.iata.org/training-contact
Follow us online!
www.facebook.com/training.iata
www.instagram.com/iata.training
www.linkedin.com/company/iata-training
4 Course Guide
So What Exactly is in this Course?

The Foundation in Travel & Tourism Course is the first of the three diploma
levels. By studying this course and successfully completing the examination,
you will be qualified with the Foundation in Travel and Tourism Diploma and
are entitled to use the letters DTTF (Diploma in Travel & Tourism Foundation)
after your name.
The various modules are arranged from simple to complex and are organized
by themes:
• Travel Environment
• Products & Services
• Fares/Ticketing and Technology
These are used globally in the travel industry. Moreover, travel agents must be
familiar with the services and facilities available to passengers before and
during their air travel.

e nt
nm
Env vel
Module
iro
Tra
1
Travel & Tourism Industry and the Travel
Professional
Get an introduction to the fast changing and
exciting world of travel and tourism.
ent
nm
Env vel
Module
iro
Tra
2
Geography in Travel Planning
Travel professionals use destination geography
every day. In this Module, learn to plan and arrange
itineraries for your customers.
ent
nm
Env vel
Module
iro
Tra
3 Travel Formalities
Provide accurate and timely advice on
visa/passport requirements, customs and
currency regulations.
ent
nm
Module
Env vel
iro
Tra
4
Air Transport Essentials
Recognize reservation elements, codes and important
terms to be able to plan itineraries.
rvi s &
Se duct
ces
Module
Pro
5
Land Transport - Introduction to Passenger Rail
Become familiar with various types of rail services
and train schedules when arranging intermodal
travel.
6 Course Guide
rvi s &
Se duct
ces
Module
Mo
Pro
6
Land Transport - Car and Camper
Appreciate the difference between car and camper
rentals. Help your client avoid nasty surprises
at the rental counter.
rvi s &
Se duct
ces
Mo
Module
Pro
7 Hotel Products and Services

Get tips on the types of hotel accommodations.
Manage customer expectations pertaining to
lodgings.
rvi s &
Se duct
Module
M od
ces
Pro
8
Water Transport - Cruise Products
Provide your clients the holiday choice to suit their
tastes, culture and price preference. Be familiar with
the type of cruises from contemporary, premium to
ultraluxury.
rvi s &
Se duct
ces
Module
M
Pro
9
Pre-Packaged Tour Products
Get insight on how to custom-design tours
and create tour brochures while keeping track
of important administrative information.
rvi s &
Se duct
ces
Module
Mo
Pro
Serving the Travel Customer
10 Win customer loyalty through positive customer

care even in the most challenging conditions.
Equip yourself with the skills and knowledge
to ensure that your frontline contact with the
customer is remarkable.

hno ting
y
Tec icke
log
and es /T
Module
Far
11
Electronic Booking Tools (GDS Functionality)
Access the EBT module online to learn practical
computer entries and interpret Global Distribution
(GDS) responses. Check out facsimiles of GDS
screen displays.
hno ting
y
Tec icke
log
and es /T
Module
Far
Fundamentals in Air Fares and Ticketing
12 Assess the fare for travel by air as provided by

automated pricing systems and interpret fare
conditions as well as data displayed on electronic
traffic documents.
hno ting
y
Tec icke
log
and es /T
Module
Far
13 Distribution and Airline Retailing with NDC

Learn the important role of information technology
in the travel industry. This module is accessible
only online and is valid only during your
enrollment period. The license is limited to one
user. To access, see instructions in Module 13.
Note: Modules 11 and 13 are online modules and not included in this textbook.
Module 11 Electronic Booking Tools (GDS Functionality Training)
This Module uses essential computer-based tools for booking; selling airline
flights plus other travel-related products such as hotel rooms and car rentals;
and for issuing associated travel documents.
The EBT module is accessible only online. It offers practical entry-level
technological skills designed to improve your career opportunities, by teaching
computer entries, the concepts behind them and the interpretation of GDS
responses. It is designed so that screens appear as true facsimiles of real GDS
screen displays. This simulation training is delivered in partnership with
VIASINC, developer of online training with expertise in GDS functionality.
You can choose to study only one GDS system (Sabre, Amadeus, Travelport
or Galileo). Each GDS will require approximately 30 hours of study time. Work
at your own pace, leaving and resuming the training program, as you need.
During the validity period of your course enrollment, you can work from any
computer which conforms to the operating requirements. For example, you
may work from one computer today, and continue your training from a different
computer tomorrow.
8 Course Guide
The four Quizzes and one Revision Test in this module are designed as study
aids. They will not be reflected on your examination grade for the Foundation in
Travel and Tourism Course Diploma.
Students who want to expand on their GDS skills will be interested in studying
our GDS Fares and Ticketing Course, focused on the use of GDSs to construct
simple and complex fare itineraries.
The validity of this online training is limited to your enrollment period for the
course, after which it expires, and for a maximum of 45 hours. This license is
limited to one user.
Course Attachments A/B/C/D/E

This course provides additional study content in the form of “Attachments”.
Each Attachment holds sample extracts or workbook content related to a
Module.
Attachment A: Geography in Travel Planning Workbook (Module 2)
Attachment B: TimaticWeb3 Case Studies (Module 3)
Attachment C: European Rail Timetable Extracts (Module 5)
Attachment D: Study Best Practices and GDS Format Guide (Module 11)
Attachment E: Fundamentals in Air Fares & Ticketing - Activity Workbook
(Module 12)
Access Instructions for Modules 11 and 13

Minimum PC System Requirements:
• Internet connection
• Google Chrome™ browser
• Minimum screen resolution of 1024 x 768
Instructions
1. From your Google Chrome™ browser, go to http://training.iata.org/signinup
2. Log-in with your IATA username and password

Navigation Instructions for Online Technology

Modules 11 and 13
In order to proceed smoothly through the online modules, you should
familiarize yourself with the clickable buttons which appear on the toolbar row
across the top and bottom of your screen. A typical screen image is shown
below, displaying the toolbar row at the top, the GDS training emulator window
in the middle, and the toolbar buttons at the bottom.
Table of Contents
In order to keep track of which lessons you have completed, click on the
“Contents” button at the bottom navigation panel. A complete list of lesson
numbers and titles will appear.
10 Course Guide
How the Lessons Work

On the title frame (screen) for lesson 1, the Instruction link opens a window
listing the navigational tools available.
Part 1 of Lesson 1 is dedicated to helping you learn how to navigate between

and within each online module. Each lesson is divided into “Parts”. Should you
want to return to a previous frame you must use the “Back” button at the bottom
of your screen. To scroll forward to the next frame, click on the “Next” button.
When an entry request is asked on screen, you must enter the correct
keystrokes to proceed to the next frame. This is how you will learn from this
training.
To exit from the online modules at any time, click on the “Logout” button at the
bottom of the frame. A pop-up window will appear called “Confirm Logout”. This
window advises you of the percentage of training you have completed. It also
asks you to confirm (Yes or No) whether you wish to log out. Click on YES to
exit from the online training.
If you have questions about the online module content, you may communicate
them by clicking on the “Email” button at the bottom of each frame.
Course Structure
Your IATA course contains all materials necessary for your learning. The
course is designed using a building block approach to facilitate your learning
and improve your skills. The structure and features are explained here to assist
your navigation through the course.
Module Prerequisites
Indicate the level of knowledge and skills you should have before studying the
Module.

Module Learning Objectives

Outline what you will be able to do after studying the Module.
Module Introduction
Explains the Module's subject matter, summarizing topics and the benefits or
rationale forstudying it.
Unit Learning Objectives

Each module is divided into Units and each unit defines learning objectives that
state what you will be able to do after studying the Unit.
Unit Overview
Introduces the Unit topic, explaining why it is important for you to know and
understand the topic.
Key Learning Points

Highlights the most important skills and knowledge from the unit in order to
meet the learning objectives.
Case Study
Represents a fictional or real situation that exemplifies a principle, best practice
or theory taught in the Unit.
Did You Know?

Identifies optional but interesting facts related to the Unit topic.
Important Note
Points out an essential and significant remark or mention.
Try Activity
Practice theory and skills through synchronized workbook activities. When
there is a related activity to practice what is learned, you will be directed to the
activity number.
Study Check
Assess whether you have fully grasped and understood the Unit content. If you
cannot confidently answer these learning assessment questions, study the Unit
again more carefully.
Apply Your Learning

Practical, but optional, projects and assignments illustrating how to apply the
Unit knowledge gained.
Module Summary
Summarizes overall knowledge, skills and competencies learned per Unit.
12 Course Guide
Unit Summary
Summarizes key knowledge, skills or competencies learned by the end of the
unit.
Review Questions
Assess your comprehension of the material presented in the Module. If you
cannot confidently answer these learning assessment questions, study the
Module again more carefully.
Glossary
Defines industry terms and acronyms.
Other Resources and References

Provide a list of resources and external references that may be helpful to
further expand your knowledge on the topic.
Answer Key
Answers to all learning assessment questions.
Accessing your IATA Training LMS User Account

• Internet connection
• Google Chrome™ browser
• Minimum screen resolution of 1024 × 768
Instructions
Always use the latest version of Google Chrome™ browser to access the IATA
LMS User Account.
1. From your Google Chrome™ browser, go to
https://training.iata.org/signinup
2. Enter your username and password to access your User Account

Study Tips
1. Study the Modules in any sequence, but start studying the Air Fares and
Ticketing module as soon as possible, as this is the most technical and
challenging content in the course. Do not skip any subject, even if you feel
that you are familiar with it.
2. Read all explanations carefully before working through the examples
and turn to the training editions and other reference books provided
whenever reference is made to these publications.
3. Complete the Study Checks and Reviews each time you are invited to
do so. Work carefully through each question and then compare your
answer with those contained in the Answer Key. If your answers are
incorrect, work through the exercise once again to find out where you went
wrong.
4. Based on experience, an average of 210 hours of self-directed study
are recommended to prepare for the examination. This figure may vary in
an IATA Authorized Training Center (ATC) instructor-led study environ-
ment.
5. If you are studying on your own and need tutoring support, you are
welcome to take advantage of professional and qualified tutoring services
offered by the IATA Authorized Training Center closest to you. Please see
our website for a list for these centers. See www.iata.org/training-atc.
Examinations
Please visit our online general information page for all exam related questions:
www.iata.org/training-exam-info
Examination Guidelines
This Course Guide has been developed in order to assist you in your studies.
Examination Guidelines will help you to prepare for the final examination.
Please review them carefully.
You are provided with access to an Online Practice Exam, as well as one
model paper-based exam. You will find both the Online Practice Exam and the
model paper-based exam which can be included in your studies.
Online Practice Exam

The Online Practice Exam presents you with a set of exam questions that are
similar to those that you will find on your actual course examination and based
on the same skills and knowledge that will be examined.
You will receive immediate online performance feedback and your grade. With
this performance feedback you will be able to identify strengths and weak-
nesses in your knowledge of course content.
The online practice exam examines your knowledge and skills in all modules
except for Module 11. You will require the use of your online access to the Fare
Lookup Tool to answer the questions related to Air Fares and Ticketing.
Practice exam questions for Module 11 are included in the separate Module 11
Electronic Booking Tools training. Therefore, the Online Practice Exam does
not include questions on the GDS training covered in Module 11.
14 Course Guide
IMPORTANT!
• Your Online Practice Exam is accessible starting one month before the
beginning of the Worldwide Examination Week. Access ends on the day
before the beginning of the Worldwide Examination Week. You will NOT be
able to access the Online Practice Exam before or after this time.
• Access to the Online Practice Exam is limited to eligible students enrolled
in the Course.
• Your personal computer (PC) must have an Internet connection.
You may access the Online Practice Exam multiple times. Once you have
begun an Online Practice Exam, it cannot be paused. You cannot exit (log out)
and re-enter (log back into) the same Online Practice Exam.
Each access to an Online Practice Exam allows three hours to complete, after
which the Online Practice Exam will automatically log out.
When completing your Online Practice Exam, have your Air Fares and
Ticketing course manual with you. In addition, it is recommended that you have
paper and a pen for note-taking, and a watch or clock to keep track of the time
remaining.
Online Practice Exams are not printable. We recommend you note on paper
the feedback that is received at the end of your online session.
No diploma or certificate is issued in conjunction with Online Practice Exams.
Online Practice Exam Access Instructions

1. From the Google Chrome™ browser, go to http://training.iata.org/signinup
2. Enter your username and password to access your User Account.

3. Once logged in, you will see a summary of your courses and exams.
4. To familiarize yourself with the online exam environment, you may access
the Tutorial as often as you like. The tutorial demonstrates an online exam
environment using example questions. Simply click on the Write exam button
next to the Tutorial title.
16 Course Guide
5. Once you're ready to start the Practice Exam, locate the “Practice Exam–
Foundation (ENG)” and click on the Write exam button.
6. You will then see the welcome screen of the Practice Exam. When you're
ready, click on the Start exam >> button.
7. You are now in the Practice Exam. Answer all questions.

8. Once you're done, click on the submit exam button.
9. After you've submitted your exam, you will see a summary of your result, as
well as details on every question to help you in your further preparations for the
actual exam.
18 Course Guide
Online Practice Exams are auto-corrected and they identify where errors are
made. Performance responses will provide the following information:
1. Your original response per question
2. A remark on whether the original response is correct or incorrect
3. The correct response
Technical questions during your Online Practice Exam
During your Online Practice Exam session, you may forward technical
questions or concerns about the Online Practice Exam to examstraining@
iata.org
Replies to these queries will be in English. For questions regarding Practice
Exam content, please contact an IATA Authorized Training Center.
Examination Coverage Information

The material that will be covered in the Foundation Travel and Tourism Course
examinations will cover all unit objectives, Key Learning Points and Glossary of
Terms.
Model Examination
To help familiarize you with the actual exam experience, IATA is pleased to
provide you with a model examination and an answer key. This is a sample
examination paper with questions similar to those that will be administered in
the course examination you will write. All content in this model exam paper are
presented for training purposes only.
All exam questions are in multiple-choice format. Exam questions in the official
examination may present an entirely different set and number of questions.
IATA reserves the right to modify the exam format and presentation at any
time. Changes to the exam format, if any, will be published on the IATA website
www.iata.org/training/Pages/distance-learning-faq.aspx.
The model exam paper can be accessed and downloaded from your User
Account. The model exam content provides examination preparation and
practice. The sample of model examination questions cover key modules in
Parts such as:
1. Air Fares and Ticketing case studies
2. General Knowledge
3. Electronic Booking Tools
Note that the item numbering is continuous from part to part. Moreover, the last
part on Electronic Booking Tools gives you a choice of Global Distribution
System. Be sure to only answer the set pertaining to your GDS choice.
An Answer Key is found on the last page of the model examination paper.

- Electronic Booking Tools (EBT)

- Fundamentals in Air Fares and Ticketing
- Distribution and Airline Retailing with NDC
For further information on this and other IATA training courses, visit our website
at www.iata.org/training/travel-tourism or contact:
20 Course Guide
Module 1:
The Travel and Tourism Industry and the
Travel Professional
Module Prerequisites • A good knowledge of English.

Before beginning this • An interest in a professional career in the travel and tourism industry.
Module, you should have:
• Describe the role of the travel industry professional in the Travel and
Tourism business environment, considering the needs of today's business
environment (Unit 1.1).
• Outline the business activities that generate income for a travel agency
(Unit 1.2).
Module Learning
Objectives • Describe the main business sectors of the Travel and Tourism industry
(Unit 1.2).
By completing this Module,
you will be able to: • Explain the basic 5 A's that are necessary for a successful destination to
offer (Unit 1.3).
• List business requirements and commercial skills necessary for a Travel
and Tourism business to operate efficiently (Unit 1.4).
• Explain the types of employment in the Travel and Tourism industry
(Unit 1.5).
• Appreciate the desirable characteristics, attributes, and skills that a
professional Travel and Tourism employee needs (Unit 1.6).
• Name the major international Travel and Tourism organizations and outline
their purposes (Unit 1.7).
• Describe the role that regional and national organizations play in the
Travel and Tourism industry (Unit 1.8).
• Define Corporate Social Responsibility and new trends in travel consumer
preferences for sustainable products and services to protect the planet's
environment and societies (Unit 1.9).
Module Introduction
The international Travel and Tourism industry is expected to more than double
in size in the next fifteen years, and this module will help you to understand its
dynamics and opportunities. The professional and creative skills you can learn
in this course will allow you to participate in and grow this key global industry.
That is what this module, and other modules in this course, are all about. Now,
let's get started.
Module Introduction 23
24 Module 1: The Travel and Tourism Industry and the Travel Professional
1.1 The Role of the Travel Industry Professional

in the Travel and Tourism Business
• Explain how selling travel is an art and a science and name key sectors of
the tourism industry (Section 1.1.1).
• Identify the growth potential of the industry (Section 1.1.2).
• List the benefits of aviation in tourism (Section 1.1.3).
Unit Learning • Describe how the travel industry has changed (Section 1.1.4).
Objectives
• Define the travel professional as a “specialist” (Section 1.1.4).
By completing this Unit,
you will be able to: • Explore the dynamics of products and customers (Section 1.1.5).
• Describe the main business components of the industry (Section 1.1.6).
1.1.0 Unit Overview

The Travel and Tourism industry offers many opportunities. Exciting desti-
nations, niche products, lifestyle brands, selling one of the most perishable
(see Glossary) commodities on the planet; these are all elements that require
the management and organizational skills of well-trained and enthusiastic
industry professionals. Your decision to begin a career in the industry is
therefore an excellent one indeed.
1.1.1 An Exciting Profession

There are few professions in the world today as exciting as selling travel.
Travel and tourism is an adventure, an education, and an experience all rolled
into one. It is a continuous learning experience. It is both a science and an
art—an “art” in terms of the creative way to sell destinations and cultural
experiences and a “science” in terms of managing the business side of it.
If you enjoy meeting people and being in touch with lifestyles and cultures in
different, exotic parts of the world, there is no better profession to be in.
The following are six reasons why travel professionals love the travel industry.
1. It is a happy business. Travel customers are generally happy. They talk
about their travel plans with excitement. Travel professionals are genuinely
passionate about travel. This recipe or combination makes it pleasant for
travel professionals and travel customers to interact. The travel business is
still very much one defined by personal relationships and the “human
touch” and attracts people who genuinely like to work with people. Travel
agents are motivated to help customers live an experience they will cherish
for a lifetime.
2. It is a helpful industry. Travel professionals provide good advice and share
their knowledge and experience with their customers.
3. Resources and tools are plentiful. Travel professionals do not need to look
hard to find resources to perform their job. There are travel industry forums
and associations that provide opportunities to network with other travel
professionals and new suppliers. Technology tools make it possible to sell
a vast number of products and services as well as sell to customers
anywhere in the world.
Unit 1.1: The Role of the Travel Industry Professional in the Travel and Tourism Business 25
4. Incentives and discounts are available. Few other industries offer the
opportunity to see the world at a discount. Travel industry suppliers who
truly support their travel agent distributors go out of their way to incentivize
the agencies and agents who sell them well.
5. Continuous learning and new education opportunities make work
interesting. It is not possible to visit, experience and explore every
destination of the world. But it is possible to learn about new destinations
through the experiences of colleagues, suppliers and even customers.
Travel industry suppliers and tourism offices make training accessible and
easy.
6. Travel suppliers and vendors are supportive. For the most part, travel
suppliers understand and appreciate that they need agents and agencies
to promote and sell their products and services.
Key Learning Point

Selling travel is both a science and an art—an “art” in terms of the creative way
to sell destinations and cultural experiences and a “science” in terms of
managing the business side of it.
The terms “Travel and Tourism industry” and “travel industry” are often used
interchangeably. For purposes of clarity, whenever possible this course uses
the term “Travel and Tourism industry”. Travel, the physical transportation of a
person from one point to another, is one sector of the tourism industry. It is
however, a very important sector, for without it the other sectors would most
likely not exist. For this reason, it is given its rightful place in the term “Travel
and Tourism industry”. Tourism is the activity of people traveling to, visiting
and/or staying in places outside their usual environments, for leisure, business
or other purposes.
The principal sectors of tourism, each with some examples given, are as
follows:
• Transportation (airlines, trains, cruise ships)
• Accommodation (hotels)
• Attractions (museums, cultural sites, theatres, sports and recreation
centers)
• Events and conferences (festivals, trade shows, the Olympic games)
• Food and beverage (restaurants)
• Tourism services centers (tourist information centers, tourism associations)
• Retail travel outlets (tour companies, travel agencies)
Key Learning Point

Travel and Tourism industry jobs are not boring or stereotypical. A travel
professional does not sell the same product day after day. This is a
sophisticated, specialized business that requires a mastery of everything from
product knowledge to selling skills to the complexities of digital systems.
1.1.2 Be a Part of the World's Largest Growth

Industry
Tourism is the world's fastest growing industry, experiencing many consecutive
years of continuous growth. It is also the fourth largest industry worldwide. The
number of international travelers (tourists traveling outside their home country)
has grown rapidly, with expectations for continuous growth in the upcoming
years.
Year Number of International Approximate change over previous

Tourist Arrivals year
2011 938 million + 6.5%
2012 980 million + 4.4 %
2013 1.087 billion + 5.0%
2014 1.138 billion + 4.5%
2015 1.184 billion + 4.4%
2016 1.235 billion + 4.3%
2017 1.322 billion + 7.0%
Table 1.1.1—World International Tourist Arrivals According to UNWTO
According to the long-term outlook of the United Nations World Tourism

Organization (UNWTO), international tourist arrivals worldwide will reach
1.8 billion by the year 2030 (www.unwto.org). The market share of emerging
economies, such as India, China and Russia, is expected to reach 57% by
2030. The WTO also forecasts that in this same period, Travel and Tourism
industry growth will benefit all regions worldwide. Many new destinations have
developed in untraditional regions of the world, such as in Latin America,
Eastern Europe, Asia, the Middle East and Africa. Figure 1.1.1 illustrates this
forecast growth by region.
Figure 1.1.1—International Tourist Arrivals (inbound) Forecast by 2030

Source: United Nations World Tourism Organization (Data from www.unwto.org)
Tourism is a very serious business. Many people do not understand the

importance of tourism to their community's overall economic well-being.
International tourism is the world's largest export earner and an important
factor in the balance of payments of many countries. Tourism is an “export” for
any country that hosts or receives foreign visitors. The country “exports”
memorable experiences for visitors who spend money in the country's
restaurants, hotels, attractions and on ground transportation such as taxi
service. They buy local souvenirs and goods that they take back home.
International tourists spend over 1 trillion US dollars on local airfares,
accommodation, meals, shopping, goods and attractions every year.
International and domestic tourism combine to generate up to 10% of the
world's Gross Domestic Product (GDP, see Glossary) and often a higher
percentage in many small nations and developing countries. Tourism is already
the largest foreign exchange earner in 46 of the 49 poorest countries in the
world, and it can truly provide benefits to development by creating employment,
empowering citizens and raising living standards. The travel and tourism
industry is here to stay. No matter what the economic conditions are, people
will continue to travel.
1.1.2.1 Jobs
The Travel and Tourism industry employs over 200 million people worldwide.
Many tourism jobs are in smaller or medium-sized, family-owned businesses.
Research shows that job creation in tourism is growing one-and-a-half times
faster than in any other industrial sector. Tourism jobs and businesses are
often created in the most underdeveloped regions of a country, helping to
balance economic opportunities. Travel agents or consultants no longer work
only in a travel agency. Companies, organizations, associations, educational
institutions and societies all need the knowledge and skills of professional
travel experts.
1.1.2.2 Infrastructure
The tourism industry stimulates governments and suppliers to invest in new
infrastructure, which improves the living conditions of local residents as well as
tourists. Tourism development projects build or improve airports, roads,
marinas, sewage systems, water treatment plants. They restore cultural
monuments, museums, and nature centers.
1.1.2.3 Tax Revenues

Tourism is a major economic generator because tourists pay sales and value
added taxes. The tourism industry provides governments with hundreds of
millions of dollars in tax revenues each year through accommodation and
restaurant taxes, airport users' fees, sales taxes, park entrance fees and
employee income tax.
Clearly, this industry offers plenty of opportunities for operating or working in a
successful travel consultancy.
Key Learning Point

Tourism is the world's largest growth industry with no signs of slowing down.
1.1.3 The Benefits of Aviation to the Tourism

Industry
Business and tourism depend heavily on air transportation. Without air
transportation, it would be difficult to meet with partners and customers, deliver
mail and other goods, explore geography and other cultures or visit friends and
family. No other mode of transportation can offer the same speed and reliability
over long distances. Air transport provides access to global markets and
connects people, countries and cultures.
The airline industry is dependent on external supplier services. Such supplier
services include airport security services, meal caterers, aircraft re-fueling,
maintenance, sales and distribution outlets, including travel agents and tour
operators, aircraft financing and more. These suppliers must all employ people
in order to deliver their services to airlines.
The travel industry's aviation sector contributes to global economies in an
important way through job creation and by generating tax revenues. In addition,
the aviation industry makes it possible for foreigners to visit and make local
purchases that support the local economy.
Airlines carry 2.8 billion passengers annually. The airline industry employs
55 million direct jobs. The air transport sector creates 95 million indirect jobs in
supply-chain businesses that sell their products and services to airlines and
airports. Air transport also contributes to the creation of 18 million indirect jobs
in tourism.
Key Learning Point

The air transportation industry facilitates global business growth, leading to
worldwide employment for more than 56 million direct and 95 million indirect
jobs, including supply-chain and tourism businesses. It also transports nearly
3 billion people annually.
1.1.4 The Evolution of Travel Sales

Sales processes within the Travel and Tourism industry continue to evolve.
Advancements in technology facilitate marketing alliances, data collection and
management, and communication with consumers. With technology and the
popular use of smartphones, agents are expected to provide customers
specific, real time, interactive information on airplane and local train/bus
timetables, hotels and key sites of interest near a traveler's location.
Product suppliers such as airlines and hotels have found other ways to sell
their products directly to the traveler.
These same technological advances present opportunities to retail and
wholesale travel professionals as well. Technology enables them to customize
travel by, creatively packaging trip components according to customer needs
and preferences. Technology also enables professionals to reach customers
via many channels and sell to a global marketplace. Essentially, travel
professionals have greater influence on the consumer's travel purchase
decision thanks to technology.
Key Learning Point

Technological advances, such as the Internet and mobile technology, have
changed the way the travel agents do business, not the agents themselves.
But some recent marketing surveys suggest that a good percentage of travel
consumers still prefer to buy travel from a traditional travel agent. These
consumers can buy products and services online but prefer the face-to-face
interaction with a professional travel agent. Travel agencies report that more
online customers are returning to the agency because they find it frustrating to
plan and book travel themselves. They find that the travel planning process is
more complicated because there are increasingly more options online. The
amount of information available online can be overwhelming to consumers who
already have too little free time to research and compare.
This means that traditional travel agencies can be successful and profitable if
they offer the right combination of product knowledge, experience, service and
value. Traditional agents are able to arrange complex trips and trips involving
multiple components and multiple travelers. Agents are better qualified to help
them choose travel options, particularly for destinations that are unknown to
those travelers. Finally, travel consumers are looking for value–not just price.
Travel agents help them recognize that value is not always “the best price”.
Sometimes the best value is received from a travel option's benefits, such as
room upgrades, free baggage allowance, a children's club or free meals.
1.1.5 Specialist, Not Generalist

A major change taking place is that the age of the “generalist” (one who sells
anything and everything) is being succeeded by the age of the specialist (one
who sells travel experiences that match specific interests and life-styles).
Today's travel agents are successful if they specialize in experiences or
destinations. There are important trends in travel suggesting that the role of the
travel professional is changing because of new consumer needs and lifestyles,
including:
• the growing popularity of less familiar destinations
• the decreasing time available for working and career individuals to plan a
special-interest trip
• an ageing population with more free time to travel and with special needs
• the recognition that travel agent support is needed when things go wrong
while traveling
If you, the travel agent, can bring more people to those creative places and
help the investors make money, you have every right to make money, too, for
helping both the visitors and the investors.
Agents now have an opportunity to sell niche products such as health holidays,
gourmet cooking tours, sports events, exotic railway journeys, adventure
travel—even whale- and bird-watching tours.
There is no shortage of things that one can become an expert on—ecotourism,
museums, art, culture, religious sites, national parks—everything that makes
the travel industry great.
Key Learning Point

A major change taking place is that the age of the generalist is being replaced
by the age of the specialist. Agents now have an opportunity to sell niche
products such as health holidays, culinary or grastronomical tours, sports
events, exotic railway journeys, adventure travel—even whale- and bird-
watching tours.
1.1.6 Look at What's Waiting to be Sold

The simple fact is that competition among travel industry suppliers is at an all-
time high, and it's increasing every day. Thousands of hotel rooms are opening
somewhere every day. Thousands of airline seats, hotel beds, cruise berths,
and tour-coach seats are all waiting to be sold, day after day. The travel
industry sells the world's most perishable products: An unsold seat or room is
revenue lost, forever.
The key is to sell those seats, berths, and beds—and to get paid for it.
The industry is very complex, though. Customers and travel industry
companies are very demanding. Expectations are rising as never before.
Everyone wants value for money: The highest quality, the highest standards,
and the highest professionalism at the lowest cost.
Products are becoming complex, too. Just keeping track of frequent-flyer
points, shifts in airline alliances, and the different offers from hotel groups can
make your head spin. There is more: new reservations systems, visa
regulations, fares, and terms and conditions (the fine print) attached to every
product.
Customers are not loyal. There are more suppliers to choose from, most just a
click away on the Internet. Consumers are constantly looking to try different
things, and they frequently change travel product sellers if they can find one
that offers them a lower price.
Things can, and do, go wrong. Weather conditions delay flights, or security
considerations require re-routing of a tour itinerary. Though these problems
seldom occur, sorting them out for demanding clients can take a significant
amount of time, money, and resources, particularly for small and medium-sized
travel and tourism businesses.
The professional skills that you can develop will assist you in being prepared to
handle such challenges.
On the business side, the financial pressures of being a small or medium-sized
business operation can be heavy. Many such businesses, unable to manage
the pace of change and unable to compete, are being purchased by larger
global chains, which are themselves joining forces with other chains in order to
improve their negotiating power with airline alliances and global hotel chains.
This is affecting medium-sized travel agencies most. While the giant agency
groups can negotiate the best prices and compete amongst themselves for
market share and volume, based largely on price and diversity of product, the
small agents continue to do business with a select clientele that likes
personalized service and does not mind paying for it.
Medium-sized agencies will have to decide in future which way they wish to
head.
1.1.7 Core Business Remains the Same

Regardless of the changes taking place in the travel industry, the core business
remains the same. Travel professionals still sell destinations and experiences,
transportation to those destinations; a place to stay and sleep; and things to do.
Selling travel products such as airline tickets, package holidays and travel
insurance in a competitive industry forces travel professionals to develop a
level of expertise that benefits travel customers. Such benefits must be
promoted to customers to gain their confidence and retain their business. Here
are four examples:
Pricing Skills
Consumer Protection
Trave
l Insur
ance
Up-to-date product knowledge: Colorful brochures and websites may

provide information but they certainly cannot respond to a customer's specific
destination, accommodation or excursion needs. A destination website cannot
address and overcome an objection or misunderstanding the customer may
have. The value of the travel consultant's personal recommendation based on
their travel product knowledge is priceless.
Pricing knowledge: Travel consultants who deal regularly with the same
suppliers and destinations are familiar with sales cycles, peak seasons and
pricing deadlines. A supplier website may offer the consumer what appears to
be a very good price, but will it be even lower tomorrow? Or more expensive?
Or sold out? Your knowledge, and ability to purchase on behalf of your client,
can be very reassuring to them.
Public Consumer Protection Laws: In most regulated markets, travel and

tourism sellers are certified and governed by laws and regulations that require
them to do business in the highest professional manner. Consumer protection
laws may require that travel agencies purchase special insurance so that their
travel customers can be refunded if a travel supplier goes out of business.
Travel purchases are often better protected when travelers choose to buy
from travel agencies instead of buying directly from airline and other suppliers
over the Internet, especially if the supplier is in a foreign country.
Travel Insurance: Often, travel consultants are able to sell short-term
insurance policies that meet the specific needs of their clients in terms of types
of products purchased, conditions of sale, destinations being visited and
clients' health situation. Consumers who purchase directly from suppliers may
be able to purchase travel insurance products, but they may purchase
unneeded insurance coverage, or else may not purchase enough medical
insurance to meet their needs while traveling. They will certainly miss out on
having an expert travel consultant to guide them in terms of their true insurance
needs. Travel insurance can also be an excellent source of income for the
travel professional.
In summary, as long as travel consultants can provide the highest standards of
service and the best possible products based on their knowledge, skills and
friendly advice, they should be able to more than keep and expand their
number of customers.
1.1.8 Useful Tips for Travel Agents

Here is a list of things that every agent can do to adapt to and thrive in today's
environment in which clients want personalized attention, good value and the
convenience of the internet.
1. Specialize
Resolve to be an expert in a few destinations or activities. Passengers
now have on-demand access to so much travel information via the
Internet that they have themselves become “generalist travel agents”.
When travelers seek help, they are seeking a true specialist.
2. Personalize
Differentiate yourself from do-it-yourself (DIY), self-service online sol-
utions. Instead give clients highly personalized service, recommen-
dations, etc., starting from your very first interaction with them—whether
online, by phone or in-person.
Many agents advertise deals on their website and send the message that
they can find the best deals. It is tough to beat deals on the Internet, and
will be even tougher going forward. Transform your business and your
message to sell expert advice and personalized service.
3. Develop a repertoire of unique experiences and special access
Offer a unique value to your services for a memorable selling experience.
The more access to special events or people that you can give clients, the
more differentiated you are.
4. Be complex
Travelers really need agents for complex trips (e.g. longer international
trips or cruises). Your energy and specialization should be on these
complex trips because passengers can easily book simple trips them-
selves (e.g. point-to-point trips such as London to Madrid).
5. Go upmarket
Segment the market into two traveler types: those with more money than
time, and those with more time than money. Agents can only compete for
the former segment's business. Travelers with more money than time give
more value to purchasing a travel agent's expertise and ability to handle
every aspect of the trip.
6. Work with net rates rather than take commission
Especially for custom tours, agents should consider getting net rates from
suppliers and marking them up rather than taking commission. This gives
pricing flexibility and better cash flow, and reduces the hassle of collecting
commission.
7. Do a self-check on whether or not you are delivering the best value
The market is dynamic and is constantly changing. Are you getting
competitive rates for all the products and services that you offer? Be sure
to have a variety of strategies to get your clients the most value.
8. Master your pitch
Have you perfected your sales pitch if clients ask: “Tell me about yourself
and your agency,” or “What makes you different from other agents?”
Memorize the top three messages in your pitch to sell your services.
9. Brush up on ‘trusted consultant’ sales skills
It is a consultative sales job. Most agents can sell a lot more if they can be
perceived as a trusted advisor. This means relationship-building and
trust-building skills are needed rather than pushy sales skills.
10. Have a good website
Agent websites need three key things: good design + compelling content
+ easy to maintain/update. If you do not have a good web developer, hire
an online graphic design agency that specializes in website design and
business branding.
11. Use a smartphone
Be extremely responsive through voice, email, and social media even
when you are not in the office by using a smartphone. Use online apps or
internet phones to have one number that rings you at your landline,
mobile, or any other number. You can make international and conference
calls and listen in on voicemails.
12. Improve knowledge and process efficiency
Take the opportunity to be more efficient in your operational processes.
For example, streamline the time to develop a custom itinerary, the time
to price a quote and study courses such as this module, etc.
This industry has changed tremendously and the pace of change will only
accelerate. Be a constant student of best practices and be ready to adapt
and adopt new ways of doing things....no matter how many years you
have been in the industry.
13. Engage with social media
Create a Facebook Page for your travel business. Get your clients to be
fans and post reviews of your services. Engage them with insights and
tips. A Facebook page is best used when it is less about selling and more
about engaging with fans and being helpful with your knowledge.
Get yourself or your agency written up in national media or at least your
local newspaper. Get clients to write you endorsements on LinkedIn or
travel blogs. Build your reputation with real traveler reviews on a referral
service.
14. Partner to get new leads

Be a good marketer but if you are not, hire a marketing agency to help
you. Or use a travel referral service for targeted, pre-qualified leads. Save
yourself the time and focus on the selling.
15. Improve your writing/email skills
Many clients prefer email communications. Good writing is a sales skill
that helps build trust and relationship with clients. Take a class to improve
this skill and you will also improve sales conversion.
16. Sharpen your first response to clients
Obsess over the quality of your first interaction with a new client, whether
it is a phone call or an email. Making a good first impression plays a major
role in sales conversion.
Apply Your Learning

Read national or regional travel trade websites or magazines and find
examples of airlines, wholesalers, cruise lines and other travel suppliers that
support travel agencies with marketing and education programs and financial
incentives. Identify what kind of support they give and see how these programs
support your professional development and business objectives.
Study Check 1.1
1. Which is the best example of an indirect supplier-chain job created by the

airline industry?
(a) Aircraft pilot
(b) Aircraft cleaner
(c) Aircraft mechanic
(d) Aircraft flight attendant
2. The air transport industry creates more indirect jobs than direct jobs.
TRUE or FALSE?
(a) True
(b) False
3. Airlines nearly 3 billion people annually.

(a) employ
(b) transport
(c) tax
4. Selling Travel and Tourism is no different from selling other products and
services. TRUE or FALSE?
(a) True
(b) False
5. Travel and Tourism employment impacts on over 200 million people

worldwide. TRUE or FALSE?
(a) True
(b) False
6. The same technological tools that allow suppliers to sell directly to

consumers can also be used to the travel agent's advantage. TRUE or
FALSE?
(a) True
(b) False
7. The Travel and Tourism industry is selling the world's most perishable
products. TRUE or FALSE?
(a) True
(b) False
1.1.9 Unit Summary

Selling travel is both an art and a science. As an art it is necessary to be
creative and innovative. As a science, it is important to master key terms and
principles (Section 1.1.1). Tourism is the world's largest growth industry
(Section 1.1.2). Aviation and air transport provides access to global markets
and connects people providing jobs and facilitates travel (Section 1.1.3). Its
dynamic nature has shown changes in the travel and tourism industry over the
years (Section 1.1.4). You have a choice of becoming a specialist versus a
generalist in this industry (Section 1.1.5). Competition is fierce. One way to
remain competitive is to be knowledgeable about the product and its complex
nature (Section 1.1.6). Regardless of the changes taking place, the core
business stays the same: sell destinations and experiences (Section 1.1.7).
The ability to adapt and thrive in today's environment is key. Clients want
personalized attention, good value and the convenience of the internet
(Section 1.1.8). The breadth, depth, and continuing growth of the industry
means that there are opportunities for everyone, provided they are willing to
raise standards, develop an expertise, and work hard.
1.2 Business Activities that Generate Income
• Identify the main business sectors of the industry (Section 1.2.1).

• State how travel agencies earn commissions today (Section 1.2.2).
• Identify niche players and new forms of income (Section 1.2.3).
• Explain how companies try to cut costs (Section 1.2.4).
Unit Learning
Objectives • Identify other related business sectors (Section 1.2.5).
By completing this Unit, • Explain the need to be selective (Section 1.2.6).
you will be able to:
1.2.0 Unit Overview

As it grows, the travel industry is looking for new ways to sell, new markets to
sell to, and new products to sell. This has meant increased competition to
generate sales by suppliers and the emergence of niche markets. Many new
businesses have entered the market. Your ability to sell their products is
restricted only by your own abilities and qualifications.
1.2.1 Main Business Sectors of Travel and

Tourism
Today, the top business sectors of the Travel and Tourism industry in terms of
volume are the airlines, hotels, and tour wholesalers.
A second level category includes car rental companies, cruises, railways, and
other means of transportation.
A third level category includes souvenir shops, restaurants, museums, art
galleries, and other such amenities and attractions.
All are connected because every travel itinerary has to include one or another
of these components. Selling the services provided by suppliers along every
link of the Travel and Tourism chain provides revenue-generating opportunities
for travel industry professionals.
Key Learning Point

Today, the main business sectors of the Travel and Tourism industry, in terms
of volume, are the airlines, hotels and tour wholesalers.
1.2.2 Past and Present

Before the Internet became widely available, the business sectors of the Travel
and Tourism industry that generated income for travel agencies were very
clearly defined. They were mainly airlines, followed by hotels and car rentals.
As recently as ten years ago, it was not unusual to see most agencies earning
up to 80% or more of their income from sales of airline seats.
Over the years, many agencies diversified into selling tours packaged by
wholesalers. As competition among wholesalers increased and profit margins
dropped, some agencies reduced their dependence on income from leisure
travel by selling corporate (business) travel, which could generally earn the
agency more income per ticket than leisure travel.
Unit 1.2: Business Activities that Generate Income 37

Today, travel agencies earn commissions from selling tours, cruises, travel
insurance, and MICE (meetings, incentives, conventions and exhibitions)
business, to name just a few. Most suppliers no longer pay fixed commissions,
but various forms of commission ‘incentives’ may be paid by preferred
suppliers when travel agencies meet agreed sales targets.
Key Learning Point

Some travel suppliers, such as airlines or hotels, pay negotiated commissions
through preferred supplier-agency agreements. Such commissions are typi-
cally paid only if the travel agency can sell the preferred supplier's products and
services, able to meet agreed minimum sales targets. Such negotiated
commissions can vary according to the volume by which target sales goals are
exceeded by the travel agency and can generate significant revenue for the
agency.
1.2.3 Niche Players and New Forms of Income

The different reasons for traveling can be classified into three main types:
• Leisure
• Business
• Other purposes, e.g. Visit Friends and Relatives (VFR), health and religion
According to UNWTO reports, tourist arrivals for the last (VFR, health religion
and other purposes) will grow slightly faster than arrivals for leisure or business
by 2030. In the meantime, leisure travel still stays at the top of the charts.
Figure 1.2.1—International Tourism by Purpose of Visit

Source: World Tourism Organization/UNWTO
As the industry grew, niche businesses entered the market especially in the
leisure category. Today agencies sell adventure travel, sports events, marine
tourism, spas and health resorts, ecotours, religious pilgrimages, museums
and art galleries, shopping tours, and much more. These niches require travel
professionals and other staff who can train to be (or are already) experts in
these areas.
Agencies can also earn income by arranging for travel visas, pre-trip health
services, foreign exchange transactions, and by selling overseas telephone
calling cards.
The trend is towards fee-based services, much like those charged by doctors
or lawyers for a consultation.
Such fee-based services are often collected from corporate clients who
need an experienced travel consultant to manage the travel plans of their
employees, keep track of expenses, negotiate rates, manage frequent flyer
program and most importantly, to reduce costs.
1.2.4 Make Money by Saving Money

Saving costs is very important, especially for large multinational companies.
For many medium-sized and large companies, travel and entertainment (T&E)
costs are often among the three highest categories of expense. These
companies are continuously looking to cut costs by renegotiating hotel rates,
air fares, and car rental charges and hire professional travel managers to help
them do that.
For every USD 10 that companies save in T&E costs, they are quite happy to
pay USD 3 of that in service fees to travel professionals who have the ability to
help them save the other USD 7.
Key Learning Point

Saving costs is very important, especially for large multinational corporations.
For many medium and large corporations, travel and entertainment costs are
often among the three highest categories of expenses.
1.2.5 Other Related Business Sectors

Underlying the main business sectors of the Travel and Tourism industry are
several other larger sectors on which Travel and Tourism depends. These
include financial services like charge cards and banking, insurance, telecom-
munications, the media, energy, and agriculture.
In one way or another, these business sectors are also capable of becoming
major business activities and major sources of income for the travel agency
community.
In view of the high purchasing power of travelers, each of the sectors is looking
to partner with the Travel and Tourism industry to help them generate income.
Media, insurance and telecommunications companies often exhibit at inter-
national Travel and Tourism trade fairs, to increase awareness of their
complementary products and services.

1.2.6 Be Selective
While all these business sectors and activities are capable of generating
considerable income for the travel agency, clearly agents have to be selective
about what they sell, depending on office space availability, as well as their
own personal expertise, knowledge, experience, contacts, client base, and
preferences. The key is to sell what you know best.
Apply Your Learning

Visit the website of the Australian Tourist Commission. Review the various
niche-market opportunities listed—from adventure tours to farm-host stays, to
wine tours, to travel for mature citizens. Familiarize yourself with some of the
opportunities.
Then, go to the website of the tourism organization/board of another country,
say New Zealand, and look at their product offering. Suppose you choose to
sell wine-tours. Combine the wine-tours of Australia and New Zealand, and see
how you can create a number of itineraries that you can market to your existing
customers who appreciate wines.
Do the same for other niche-market holidays that you think could sell well.
Study Check 1.2
Read each statement and answer TRUE or FALSE?
1. Overall, corporate travel can earn an agency more income per ticket than
leisure travel. TRUE or FALSE?
(a) True
(b) False
2. Technological changes have resulted in sources of income disappearing

for travel agencies. TRUE or FALSE?
(a) True
(b) False
3. Travel agencies can make money by saving money for their clients. TRUE
or FALSE?
(a) True
(b) False
1.2.7 Unit Summary

The Travel and Tourism industry offers many opportunities for generating
income for travel agencies. There is virtually no limit to creative ways of making
money in Travel and Tourism. The main business sectors of the industry in
terms of volume are the airlines, hotels and tour wholesalers. A second level
includes car rental companies, cruises, railways and other means of transpor-
tation. The third level includes shops, restaurants and other amenities and
attractions (Section 1.2.1). Travel agencies earn negotiated or preferred
supplier commissions (Section 1.2.2) from some of these businesses. Travel
agencies can focus on specific markets such as the business, leisure or other
niches. Agents can generate new forms of income by offering other travel
related services such as arranging travel documents, pre-trip medical check-
ups, etc. (Section 1.2.3). Many companies try to save costs by cutting down on
travel and entertainment expenses; hence, knowledge and skills can make a
big difference to stay ahead of the competition (Section 1.2.4). The travel and
tourism industry also rely on other sectors such as financial and telecommuni-
cation services in order to succeed (Section 1.2.5). With the wide range of
products available, it is necessary to be selective about what you sell. The key
is to sell what you know best (Section 1.2.6).

1.3 The 5 A's Essential to a Successful

Destination
• State the five essential requirements of a successful destination

(Section 1.3.1).
• Identify the necessary infrastructure standards and services
(Section 1.3.2).
Unit Learning
Objectives 1.3.0 Unit Overview
By completing this Unit, Destinations can only succeed in attracting visitors if they have a choice of
you will be able to: ways to get there, places to stay, and things to do. Successful destinations
meet five essential requirements. Destinations that do not meet these essential
requirements must develop them, often with financial help from the local
government or private companies. Destinations that attract visitors create sales
and revenue opportunities for travel agents.
1.3.1 Five Essential Elements

There must be a good mix and balance between the basic 5 A's that are
essential to a successful destination. These are illustrated below.
Figure 1.3.1—Five A's to a Successful Destination
People like to do different things when they travel. They come from different
cultures, have different likes and dislikes, and of course have different budgets.
Some like active holidays; others just want to sit on a hotel balcony enjoying a
good view or reading a book. Some may want to visit famous sites. Yet others
want to shop.
A destination has to cater in some shape or form to all these needs. Here are
some of the major aspects of each of these essential 5 A's:
1.3.1.1 Accommodation
Accommodation is about where travelers stay at destination. Traditionally a
hotel or inn, lodging types now also include cruise ship cabins, camper-vans,
accredited bed & breakfast private homes, hostels, and others. Recent trends
include the emergence of focused lifestyle brand hotels: Hotel chains that once
offered a single name and similar-type buildings at each location now offer a
range of brands, building types and services to suit their clients' varied
lifestyles. Chains of small city-center boutique hotels, or beach resorts with
family-oriented facilities constructed in the original design, are both examples
of this trend.
Long established in many markets, alcohol-free hotels are attracting invest-
ment from high-profile accommodation chains, which seek to reflect the values
of many current and future customers: This development focuses on a
permanent value rather than a mere lifestyle trend.
A new accommodation product now combines privately owned condominium
apartments with rental hotel rooms in one single building. This is sometimes
called hybrid lodging.
1.3.1.2 Accessibility
No destination can function well unless there is a means of getting there, such
as an airline, bus service, railway line or port. Lack of adequate accessibility is
frequently cited as one of the major obstacles to tourism development and
investment in a destination.
Key Learning Point

Lack of adequate accessibility is frequently cited as one of the major obstacles
to tourism development and investment in a destination.
1.3.1.3 Activities
Having reached the destination, what do you then do? Enjoy a game of golf?
Go scuba-diving? Take a jungle trek? A river cruise? Destinations are working
harder than ever to widen their range of activities in order to get people to stay
longer and spend more time and money in their localities. Again, this means
more competition and hence more opportunities for agents to sell products.
1.3.1.4 Amenities
Local cuisine is often one of the top attractions of a destination. Restaurants,
designer bars and shopping plazas always attract their fair share of visitors.
Having an active nightlife may add to the appeal. Travel agents who are
specialists in various destinations have to ensure that they remain constantly
updated on such amenities.
Unit 1.3: The 5 A's Essential to a Successful Destination 43

1.3.1.5 Attractions
What is there to see? Some like to go to the local museums or art galleries.
Others prefer the thrill of an amusement park, appealing for families with
children, one of the fastest growing holiday segments. If you are handling
special events like business meetings or conferences, you will also have to
focus on the facilities offered by the various hotels or conference venues to
ensure that they are up to standard and meet your client's requirements.
Key Learning Point

Destinations are working harder than ever to broaden their range of activities in
order to get people to stay longer and spend more in their localities.
1.3.2 Other Critical Requirements: Infrastructure

and Security
It has become critically important for destinations to ensure that their
infrastructure facilities are of high standard, such as offering telecommuni-
cations services, environmental management, health and sanitation, and
perhaps most critical, safety and security.
The travel industry has seen many examples of destinations losing both
business and their long-term reputation because they have failed to adequately
meet these standards. For tourism to prosper, a destination must be recog-
nized by the traveling public as a safe and secure destination.
The events happening in any nation, no matter who is responsible, will impact
its tourism industry. Tourism cannot afford a medical crisis or a food crisis, a
natural disaster or a political disaster, conventional wars or acts of terrorism or
crime. In a world that is interconnected through the Internet and twenty-four
hour news reporting, bad news travels quickly and everywhere. News coverage
of terrorism and crime events costs tourism millions of dollars in lost revenues.
Great attention has been given to airport and airline security, but there are
other areas of tourism that are also vulnerable, including attractions such as
shopping malls, sports events, parks and any place, gathering large numbers
of people. Terrorism is about creating surprises and travel and tourism leaders
need to work toward protecting the industry by expecting the unexpected.
In the end, tourists choose where to visit and when to visit, and travel
professionals must be able to react to world events by promoting those
destinations that offer maximum safety and security to their customers, using
creativity and innovation to reinvent what they sell, offering safer destinations.
Key Learning Point

The travel industry has seen many examples of destinations losing both
business and their long-term reputation because they have failed to adequately
provide high standards of infrastructure services and facilities.
Study Check 1.3
1. Destinations must have a good mix of products, amenities and attractions

in order to attract visitors. TRUE or FALSE?
(a) True
(b) False
2. Building an airport is an automatic way of ensuring a steady flow of visitor

arrivals. TRUE or FALSE?
(a) True
(b) False
3. Restaurants offering local dishes are closing because visitors only like
going to eat at fast-food outlets. TRUE or FALSE?
(a) True
(b) False
1.3.3 Unit Summary

There are various components that make a good holiday destination. The basic
5 A's that are essential to a successful destination include: Accommodation,
Accessibility, Activities, Amenities, and Attractions (Section 1.3.1). Those same
components are the ones that you will need to ensure they are well-suited to
your clients' needs when suggesting a tour or meetings venue. It is just as
important, and perhaps even more important, to ensure that the destination's
infrastructure standards are also adequate (Section 1.3.2).
Unit 1.3: The 5 A's Essential to a Successful Destination 45

1.4 Business Requirements and Commercial

Skills
• State the business requirements and commercial skills necessary for a

travel agency to operate efficiently (Section 1.4.1).
1.4.0 Unit Overview

Unit Learning Operating a professional and efficient travel agency requires a good mix of
Objectives qualifications and skills. Some are unchanged from the past; others are newer
By completing this Unit, and emerging. This means having a vision, sufficient cash flow and well-trained
you will be able to: staff, as well as being up to date with technology and having access to market
intelligence.
1.4.1 Fundamental Requirements

The growing complexity of the travel industry has changed many of the
business requirements and commercial skills necessary for a travel and
tourism business to operate efficiently. Today, there is a greater need for a
wide cross-section of management, marketing, financial and technological
skills that were perhaps less important ten or fifteen years ago.
While some basic needs are the same today, which apply as much to running a
travel and tourism business as to any other business, other new requirements
have emerged. It is critical to have a good mix and balance of the skills and
requirements of the past and of the future, as follows:
A Vision
Do you want to build a really good travel consultancy? Or an ordinary one?
Assuming that you want to build a really good travel consultancy, you will need
to be perfectly clear about where you are today and where you want to be in
ten years. This is where you will have to decide how best to develop and use
your skills, background and experience into creating an outstanding company.
Key Learning Point

Today, there is a greater need for a broad cross-section of management,
marketing, financial and technological skills that were perhaps less important
ten or fifteen years ago.
Enough Money
Having a vision is a good start, but suppliers will still ask you to “show me the
money”. Hence, perhaps the most important business requirement is to have
sufficient cash to support the volume of turnover. For example, in many
countries, airlines have to be paid weekly or even daily, under the Billing and
Settlement Plan (BSP).
But, if you are handling a large company's account which pays you only
monthly, you will need to have enough money to cover those weeks in
between. You also need to have enough to pay your fixed costs—such as staff
salaries, rent, utilities—for at least a year until you can get enough cash flow
moving through your agency.
Financial Competence
In addition to having enough money, it is important to know how to manage it.
You are often dealing simultaneously with airlines, hotels, wholesalers, credit
card companies, banks, corporate clients and your own customers. Airfares are
always going up and down. Currencies are fluctuating globally—the travel
industry is one of the first to feel the results of global financial instability.
Income has to be monitored. Of course, the need to keep costs down and know
the basic principles of accounting is very important.
Key Learning Point

Perhaps the most important business requirement is to have sufficient cash to
support the volume of turnover.
Well-Trained Staff
The second most important business requirement is to have well-trained staff.
Unlike the manufacturing business, which requires substantial financial invest-
ment, ours is a service business that is “friendliness-intensive”. Staff needs to
be well trained in all elements of the travel process, from product knowledge to
legal obligations. They should be able to sell travel products in a fun way, but
with full awareness of the business side. As the emphasis has shifted from
being merely an order-taker to being a sales generator, good training
substantially helps productivity and efficiency.
Staff Compensation
If you are a travel business owner, you do not want your trained staff to leave
and join the competition. While this is a perennial problem, it can be minimized
through a variety of bonus, incentive or equity schemes that help staff develop
a “sense of ownership” in the agency.
Key Learning Point

The second most important business requirement is to have well-trained staff.
Unlike the manufacturing business, which requires substantial financial invest-
ment, ours is a service business that is “friendliness-intensive”.
A Good Understanding of Information Technology Trends

and Issues
The travel and tourism industry would cease to exist without the technology
that drives it. The marketplace is flooded with various offers by vendors and
suppliers of hardware and software, all claiming to provide solutions for
everyone. As in any business, it is important that you acquire the most effective
technology to meet your needs. Will acquiring a new booking engine increase
your sales in new markets? Will this additional revenue be offset by additional
staffing costs? Will the software be compatible with new accounting software
that you also intend to purchase?
Key Learning Point

A good understanding of Technology trends and issues is imperative. The
travel business would cease to exist without the technology that drives it.
Unit 1.4: Business Requirements and Commercial Skills 47

A Smooth Internal Organization

Disorganized administrative structures, reporting systems and chains of
command can disrupt the functioning of even a small agency. Everyone must
know who is doing what. Good teamwork minimizes internal politics and
maximizes morale. In a highly competitive environment, it is not the biggest
team that wins but the most efficient. Keeping a good “back office” has
tremendous financial advantages: it ensures smoother billing and collection
processes and allows the financial data to be analyzed more effectively. This
helps you better service your major customers while thinking of ways to provide
new services to some of the less productive ones.
A well-trained staff and good teamwork are essential to a successful travel and
tourism business.
Key Learning Point

In a highly competitive environment, it is not the biggest team that wins but the
most efficient.
Good Negotiating Skills

Another critical requirement is to enhance the Unique Selling Proposition
(USP, see Glossary) of your travel business. You have to be able to secure the
best products at the best prices. You will also have to negotiate with staff and
sometimes with lawyers and complaining customers. This will also involve
having good interpersonal skills.
Market Information and Intelligence

Although this is not strictly a business requirement, you must keep up-to-date
on products, sales channels, pricing, company ownership, senior management
positions, changing laws and regulations, and many other issues affecting your
business environment, investors and suppliers. Being forewarned is being
forearmed. This will require you not just to read travel trade websites and
papers but also to get involved in industry associations and regularly attend
travel trade shows and conferences.
A Balanced Product Mix

Again, not technically a “business requirement” but good advice to keep in
mind: Never put all your eggs in one basket. Even if you specialize, make sure
that your product range is diversified enough to support your business in case
anything happens to affect any one sector of your markets. For example, in late
2004, any travel professional who relied solely or mostly on selling beach
holidays in Thailand and Sri Lanka would have seen their sales collapse after
the devastating tsunami. Similarly, a retail travel agent or tour company
focused on package holidays to New Orleans in the USA would have lost all
short to medium term business following the destruction left by 2005's
Hurricane Katrina.
Creativity
Last but not least, creativity is fundamental to keeping you ahead of the game.
This ranges from creativity in coming up with business solutions to knowing
when to apply that little extra touch that wins you a new account. It involves
being creative in the packaging of your products as well as creative in the way
you design and decorate your travel office or website. This is your edge, and
yours alone.
Study Check 1.4
1. Investing in staff training is a waste of time because employees have no

loyalty and will go off and join the competition. TRUE or FALSE?
(a) True
(b) False
2. If you run a small agency, you do not really need to set up a smooth
internal administrative system. TRUE or FALSE?
(a) True
(b) False
3. Keeping up with research and visitor arrival trends is not important for
agency management. TRUE or FALSE?
(a) True
(b) False
4. The best way of keeping up with Technology trends is simply to hire a

software vendor to take care of it. TRUE or FALSE?
(a) True
(b) False
Unit 1.4: Business Requirements and Commercial Skills 49

1.4.2 Unit Summary

Various business and commercial skills are needed for a well-trained staff to
operate an efficient travel agency. While some skills are fundamental to all
business operations, others are newer such as having a good understanding of
information technology and trends (Section 1.4.1). You need to have both. And
do not forget the creativity of that extra little touch.
1.5 Types of Employment in the Travel and

Tourism Industry
• Identify the employment opportunities in the Travel and Tourism industry

(Section 1.5.1).
• Describe the realities of employment in the Travel and Tourism industry
(Section 1.5.2).
Unit Learning
By completing this Unit, Because the Travel and Tourism industry is more of a “people” business than
you will be able to: any other, the same kind of jobs needed to service local citizens are also
necessary to service visitors. It does not matter what your formal educational
background is, you can always find some way to adapt it to find a job in the
travel industry.
1.5.1 A Wealth of Opportunities

The depth and breadth of the Travel and Tourism industry makes it open to a
tremendous diversity of employment opportunities. In addition to travel
consultants, the industry employs dozens of other specialists (e.g., hotel
concierges, airline pilots and researchers). You can do something as routine as
manning a hotel telephone switchboard or as sophisticated as guiding eco-
tours to the Amazon rainforest.
Hotels must hire food and beverage specialists. Airlines need engineers, cabin
crew, computer programmers and many more types of administrative and
technical professionals. The Meetings and Conventions business needs
experienced event managers. There is a need for specialists in human
resources, sales and marketing and information technology (IT).
Within the travel agency, too, there are opportunities. If you enjoy the selling
process and dealing with customers, you could become a sales consultant
working “front line” in direct contact with customers. Such front-line staff builds
a relationship and trust with their travel customers, making them successful at
selling the agency's products and services. Because front-line agency staff can
influence the destinations that travelers choose, they are sometimes invited to
participate in a familiarization trip hosted by travel suppliers for the purpose of
educating the front-line travel agent about a product or service.
If you like research and product development or the challenge of finding new
customers, then business development is an area in which you can specialize.
Financial and administrative skills apply to working in the agency's “back-office”
or accounting department. These jobs also need computer system and
software knowledge.
In addition, the growing specialization of the travel industry is opening up
opportunities for specialist professions, such as in consumer protection laws
applicable to Travel and Tourism, environmental issues, destination manage-
ment and safety & security, among others.
In other words, it does not matter if you are trained as a lawyer or a city
planner, a museum curator, an architect or a computer programmer. The
multidisciplinary nature of the Travel and Tourism industry offers job oppor-
tunities for everyone.
Unit 1.5: Types of Employment in the Travel and Tourism Industry 51

Key Learning Point

The depth and breadth of the Travel and Tourism industry makes it open to a
tremendous diversity of employment opportunities. In addition to travel
consultants, the industry employs dozens of other specialists (e.g. hotel
concierges, airline pilots and researchers).
1.5.2 Realities of Employment in the Travel and

Tourism Industry
The travel industry is a 24-hour-a-day industry. Working in it can be quite
challenging, especially for those in direct contact with customers. Each contact
with a customer is a “moment of truth”. Moments-of-truth occur millions of times
every day at hotel reception counters, at airport check-in desks, on tour
coaches, or over the telephone when customers call to make, cancel or change
reservations. Travel professionals must be alert and pleasant at all times.
It is also a seasonal industry, marked by busier, slower and in-between selling
periods. This is both a challenge and an opportunity. In low selling seasons,
travel consultants have time to improve knowledge and skills through training
so they can better sell and serve in the high season.
In a retail travel agency specifically, beginners may be discouraged by what
appears to be low starting salaries, but do not forget that there are a large
number of advantages and benefits that more than compensate. For example,
the reduced-rate travel benefits you may enjoy at no cost could themselves be
worth several weeks pay.
Moreover, as you become more skilled, experienced and professional, you
open up opportunities for increasing both the agency's revenue and market
position, and potentially greater rewards for yourself.
You may also wish, right from the beginning, to develop an expertise in dealing
with specific travel segments that can add value for the agency. This will allow
you to build loyal customers by becoming their preferred travel counsellor.
That, too, will gain you considerable leverage in negotiations regarding salary
or working conditions.
As in any industry, tourism business can be affected by large external forces.
Global economic downturns, inflation and currency fluctuations force
companies to cut travel costs and vacationers to travel closer to home. Disease
or viruses as well as political unrest will force governments to discourage travel
to infected areas. But if you trace the trends in Table 1.1.1 of this module, you
will see that while international travel drops in one year, it bounces back to
growth in the next. There will always be a need for people to travel for business
and leisure.
Key Learning Point

Travel and Tourism is a highly seasonal industry, marked by high-season
peaks and low-season valleys. However, this is a challenge and an opportunity
that allows travel consultants to use the low seasons to train and plan for the
high season to come.
Apply Your Learning

Develop a chart showing how the Travel and Tourism industry depends on
other sectors of the society, community and economy. Then identify the jobs
that can open up in each of those sectors.
For example, a hotel has to have engineers and electricians on hand to fix any
mechanical and power problems that may occur. It also needs to have a doctor
available. It also buys fruits and vegetables from the local markets. This means
jobs and income for engineers, electricians, doctors and farmers in this
example alone.
What kind of people does an airline need, across all its various departments?
Or an airport? Or a museum? Or man-made resort islands in the Arabian Gulf?
Or a cruise ship?
Look through website career pages and the classified section of newspapers
and see what kind of jobs various Travel and Tourism companies are
advertising for. You may be surprised at the range of requirements.
Study Check 1.5
1. You must have a university degree in Travel and Tourism in order to work
in the industry. TRUE or FALSE?
(a) True
(b) False
2. Professions, such as doctors and architects, have nothing to do with the

Travel and Tourism industry. TRUE or FALSE?
(a) True
(b) False
3. Working in a travel agency means low pay and no opportunities for

personal or professional growth. TRUE or FALSE?
(a) True
(b) False
1.5.3 Unit Summary

In this Unit you studied the types of employment available in the Travel and
Tourism industry. You learned that one does not have to look very far to find a
job in the Travel and Tourism industry suited to a wide range of qualifications
and skills (Section 1.5.1). Indeed, the opportunities for advancement in the
industry are quite good, and the industry is forecast to grow significantly in the
coming years (Section 1.5.2). Having learnt the various types of employment
available in the industry, you will learn in the following Unit 1.6 the various skills
and attributes you need to possess personally to work efficiently and
productively.
Unit 1.5: Types of Employment in the Travel and Tourism Industry 53

1.6 Characteristics, Attributes, and Skills
• Identify the desirable characteristics of a travel agent (Section 1.6.1).

• State the qualifications of a travel agent (Section 1.6.2).
• Explain how to become a successful travel agent (Section 1.6.3).
Unit Learning
By completing this Unit, Because of its highly service-oriented nature, the Travel and Tourism industry
you will be able to: requires those who work in it to have a broader variety of “high-touch”
(interpersonal) and advanced technology skills than other professions. This
means being both efficient and courteous, patient and resourceful. It also
means being creative and having some “finer points” that can make a lot of
difference in distinguishing you from others.
1.6.1 Desirable Characteristics

As in any industry, tourism business can be affected by large external forces.
Global economic downturns, inflation and currency fluctuations force
companies to cut travel costs and vacationers to travel closer to home. Disease
or viruses as well as political unrest will force governments to discourage travel
to infected areas. But if you trace the trends in Table 1.1.1 of this module, you
will see that while international travel drops in one year, it bounces back to
growth in the next. There will always be a need for people to travel for business
and leisure. The list of desirable characteristics is perhaps longer than the list
of business and commercial skills needed by the agency itself. Indeed, it is the
professional skills of the employee that make the company.
Before listing such characteristics, attributes and skills, it is important to see
what kind of services the employee is expected to provide.
Customers come to a travel consultant to get advice on where to go and what
to do. They want their travel plans booked and confirmed. Usually, they want
the best price. Often, they will modify their itineraries in order to obtain this
price.
They want all this done professionally, thoroughly and politely.
Key Learning Point

In the changing world of Travel and Tourism, a combination of “high-touch” and
high-tech skills are necessary to work productively and efficiently in the
industry.
To be able to deliver that service and finalize the sale then becomes your most
important function. In order to do that, you will need:
• Creativity: Look at the customer, analyze his or her needs, ask proper
questions and then make creative suggestions. Do not forget, that person
has come to you for something that he or she could not find by themselves,
whether on the Internet or elsewhere.
• A love for the job: If you enjoy what you are doing, your confidence will
increase. Customers are reassured by this.
• Communication and presentation skills: An ability to present information
about your products in a persuasive, courteous and pleasant manner.
• Service-mindedness: Never forget that what people are buying from you is
something they may have worked very hard to save up for. Some may be
first-time travelers. Others may be veterans. Either way, they expect you to
provide that service. The one thing that the Internet cannot provide is the
emotional link of eye contact, a pleasant smile and a warm handshake.
• Resourcefulness: Clients often ask difficult questions, and are certainly
going to shop around. If you do not have the information they want, you
need to know where and how to get it.
• Patience: Even after doing your best, you may lose the business. No one
can win all the time. You must be able to put these losses behind you, and
look forward to the next opportunity.
• A cool head: Handling customer complaints is an art in itself. Calming
dissatisfied clients, talking them through the issue and solving it, is a skill
worth its weight in gold. If you have a background or interest in psychology,
this could well be a good field to specialize in.
Key Learning Point

Never forget that what people are buying from you is something they may have
worked very hard to save up for.
1.6.2 Qualifications
Multi-Cultural Background
Exposure to different cultures, through schooling, community groups, personal
reading or travel, could be of great value.
Language Skills
The importance of these will rise significantly in the next few years. If everyone
speaks some English in a global world, your Unique Selling Proposition will lie
in your ability to communicate with people of different cultures also in their own
language.
Good Organizational Skills

The complexity of the Travel and Tourism industry requires a human touch able
to simplify and sort out complex matters. Being able to organize well is a major
asset in terms of increased productivity and low wastage of time and money.
Professional Integrity and Ethics

True in any profession, but especially in travel and tourism, as customers are
buying a product they may have neither seen nor experienced. The memories
of their trip are what they will keep. Are you offering them the best option?
It makes good business sense to practice ethical attitudes and behavior with
customers. As in any other service industry, agencies that benefit from long
term success are those which promote good values that build customer trust
and loyalty. Travel professionals play an important role in setting ethical
business standards that can benefit the entire industry. Important ethical
practices for travel sellers include:
• providing equal and fair service to all customers
• ensuring that the agency's information and services are complete and
accurate
Unit 1.6: Characteristics, Attributes, and Skills 55

• promoting products and services that customers can trust

• promoting sustainable travel products and destinations (see Unit 1.9)
• partnering with travel suppliers who have good ethics
Today, more tourism industry offices and ministries are mandating travel
agencies to train staff on ethics in order to retain the ability to operate a travel
business. Working ethically makes one feel confident and proud of the work
done.
Team Spirit
No company can survive without team spirit (also popularly known as “esprit de
corps”). Each member is part of a much bigger machine. If the parts fail to do
the job they are designed and programmed to do, the machine stops
functioning. It is as simple as that.
Patience and team spirit will help make a travel industry professional
successful.
Good Knowledge of Geography

What is the distance between Bangalore and Mangalore? Do Dubai and
Durban have similar climates? Where is Vilnius? How long is the Mekong
River? Even if you did not study it in school or college, there is no shortage of
tools to help you with geography, from websites to CD-ROM atlases to travel
guidebooks, magazines and television program.
Finance, Accounting, and Managerial Skills

These skills are critical for professional growth. To advance your career, you
need to be good at strategic planning and negotiating deals. Your persuasive
skills have to be outstanding.
Key Learning Point

If you have been exposed to different cultures, through schooling, community
groups, personal reading or travel, it could be a major asset.
1.6.3 The Finer Points

While skills and qualifications are important to build a successful career or a
profitable business, creativity and resourcefulness makes a travel agency
competitive and satisfies customers. Getting started is important to achieving
success, yes. Knowing how and when to do it can be equally critical.
Here are a few tips, which are in line with developments taking place in the
industry at large:
• Know your customer: Answer this basic question: What does this customer
or client want from me? How can I help them get it? Knowing your
customer has many advantages because it helps you better understand to
whom to sell, what to sell them, and when best to sell to them. You know
when people travel, where they went last time and where they might be
interested in going next.
• Know your product: If you know what you are selling, you can generally find
someone to sell it to. Let's say you decide to specialize in mountain-
climbing holidays. If you present yourself as a leading authority on this and
are quoted in media interviews, look at the free publicity you generate for
yourself.
• Focus on the Time & Money factor: In an era when time is money, saving
someone time can mean money. Saving a lot of people a lot of time can
mean a lot of money. Can you provide your customers with products that
can get them the best possible value for money in relation to the time they
have available?
• Balance your business: As mentioned earlier in Unit 1.4, do not over-
expose yourself to any one market segment, supplier or country. Establish
a good mix of each. This will protect you against unforeseen problems that
could affect any one of them.
• Do not forget about the little touches: Look after your customers with as
much care as you give to your family. For example, flowers sent on a
birthday, a greeting card, a gift of food. If you know your customers well,
there is no shortage of little touches you can impress them with.
• Focus on the advice factor: If you are going to ask your customers to pay
for advice, you will need to make sure that your advice will be the best
money can buy. Make sure you are fully updated—from changes in visa
regulations to the best way to get more frequent flyer points.
• Think small: Being big does not necessarily mean being successful. Small
companies can be relatively more successful, that is, they can make more
money from handling fewer people. Running small companies allows you
to provide more personalized customer service.
Key Learning Point

It takes more than skills and qualifications to build a successful career or a
profitable business. It also takes creativity. Getting started is important, yes.
Knowing how and when to do it can be equally critical to success.
Unit 1.6: Characteristics, Attributes, and Skills 57

Study Check 1.6
1. Customers come to an agency only to look for the best price. TRUE or
FALSE?
(a) True
(b) False
2. It helps to know several languages if you wish to work in Travel and

Tourism. TRUE or FALSE?
(a) True
(b) False
3. If you do your job well independently, it is not important to function well as a

team member. TRUE or FALSE?
(a) True
(b) False
1.6.4 Unit Summary

A broad range of skills and qualifications are needed to build a successful
travel career or a profitable business. It also takes a lot of “associated” talents
like creativity and patience (Section 1.6.1). While an ability to speak several
languages is a bonus, what is important is to be comfortable with different
cultures to be able to understand customers who come from diverse back-
grounds (Section 1.6.2). Travel and tourism industry professionals should
focus on acquiring a broad variety of skills to survive in a competitive
environment (Section 1.6.3).
1.7 Major International Travel and Tourism

Organizations
• Describe the function of international Travel and Tourism organizations

(Section 1.7.1).
• Identify the purpose and goals of various individual international Travel
and Tourism organizations (Sections 1.7.2–1.7.10).
Unit Learning
By completing this Unit, The Travel and Tourism industry has many sectors, each with different
you will be able to: interests. Grouping such sectors into organizations and associations allows
them to focus on common issues and undertake a range of activities to develop
industry professionalism and defend their interests against external interests.
The efforts of these players collectively serve to enhance the industry, paving
the way for future development.
1.7.1 Travel and Tourism Organizations

International Travel and Tourism organizations play a major role in advancing
the interests of the industry. They provide forums for discussions of common
issues, lobby for industry causes, especially those which promote the industry's
interests, and allow members from different parts of the world to network and
learn from one another. Nearly all organizations are involved in doing research,
providing marketing services and training schemes that are most cost effective
when done jointly under an umbrella organization.
Such organizations are formed because interested members have a common
interest or because they operate in the same geographical region. Some, such
as the International Federation of Women's Travel Professionals or the
International Federation of Youth Travel Organizations, are even more
specialized. Others are formed because they specialize in incentive travel, or
sales and marketing, or education and ecotourism, or exhibition and conven-
tion business.
In addition to the large number of global associations and organizations, many
others represent regional, national or even provincial interests and issues.
Associations have the common goal of identifying the needs of their members
and working to meet them. They provide a common forum for people in similar
lines of work to get together to discuss common issues. Well-organized and
clearly-focused international Travel and Tourism organizations play a major
role in upgrading industry standards.
The following are some of the major global Travel and Tourism organizations
providing channels of information on a large number of issues affecting Travel
and Tourism, from automation to taxation, from research to legal issues.
Unit 1.7: Major International Travel and Tourism Organizations 59

International Air Transport Association (IATA)

www.iata.org
IATA is the global representative of the international air transport industry. With
over 260 members, representing nearly 95 percent of international scheduled
air traffic, IATA represents its members' interests in promoting safe, reliable,
secure and economical air services.
IATA's current Simplifying the Business initiatives are designed to increase
efficiencies within the industry, through greater automation and fewer paper-
based processes. Airlines, passengers, airports, travel and freight agents—in
short, all major stakeholders—will benefit.
Founded in 1945, IATA was involved in establishing a sound technical and
legal framework for the operation of the world's airlines. It organized the first
worldwide Traffic Conference in 1947 which worked out agreements related to
fare construction rules for multi-sector trips, revenue allocation-prorating rules,
baggage allowances, ticket and air waybill design and agency appointment
procedures. IATA is also the co-ordinator of Multilateral Interline Traffic
Agreements that allows member airlines around the world to accept each
other's tickets and air waybills—and thus their passenger and cargo traffic—on
a reciprocal basis.
In 1952, the pattern for airline-travel agent relations was set with the
introduction of the Standard Passenger Sales Agency Agreement.
In the early 1970s, as a result of increasing fare calculation complexities, and
recognizing the need for globally standardized travel agent training, IATA
introduced the beginnings of today's Travel and Tourism Training Program.
Over the past thirty years, some 300,000 students, yourself included, have
enrolled and studied in this training program. IATA supports two head-offices:
one in Geneva, Switzerland, and another in Montreal, Canada.
United Federation of Travel Agents' Associations (UFTAA)

www.uftaa.org
UFTAA represents national travel agents' associations in a significant number

of countries. It remains the most prominent body representing the interests of
travel agents worldwide and enjoys consultative status with the United Nations.
The UFTAA Secretariat consists of its Secretary General and a small team,
based in Monaco, which is directed by an elected Board of Directors composed
of a cross-section of travel agents from around the world.
Its membership also includes a large group of Travel Partners, including major
airlines, hotels, tourism boards, shipping companies, car rental companies and
many other operators allied to the tourist industry. UFTAA also lobbies to
oppose legislation directly harmful to tourism and free circulation for citizens of
any country. Its primary goal is to develop, promote and assist in the
professional training of travel agents.
UFTAA headquarters is in the Principality of Monaco. www.uftaa.org
United Nations World Tourism Organization (UNWTO)

http://unwto.org
UNWTO, not to be confused with the World Trade Organization, serves as a

global forum for tourism policy issues and a practical source of tourism know-
how.
Based in Madrid, UNWTO is entrusted by the United Nations to help countries
maximize the positive impacts of tourism, such as job creation, infrastructure
development and foreign exchange earnings, while at the same time minimiz-
ing negative environmental or social impacts. Representatives covering Africa,
the Americas, East Asia and the Pacific, Europe, the Middle East and South
Asia are responsible for overseeing specific projects and working with tourism
officials in various countries to analyze problems and seek solutions. The
transfer of tourism know-how to developing countries is one of its fundamental
tasks. As an executing agency of the UN Development Program, UNWTO
contributes to the sustainable development goals of nations. Acting on
requests from member governments, UNWTO secures financing, locates
experts, and carries out all types of tourism development projects.
WTO's Tourism Towards 2030 document is an important benchmark of
industry activity and direction. Balancing periods of greater and lesser growth,
it confidently forecasts that on a worldwide basis, international tourism arrivals
will increase by an average of 43 million arrivals every year.
UNWTO is the only inter-governmental organization that offers membership to
the operating sector and in this way becomes a unique contact point for
discussion between government officials and industry leaders. The UNWTO
headquarter building is in Madrid, Spain.
World Travel and Tourism Council (WTTC)

www.wttc.org
Founded in 1990 with support from American Express, WTTC is a high-level

private sector-only lobbying group whose membership comprises Chief Execu-
tives of multinational accommodation, catering, cruises, entertainment, rec-
reation, transportation and other travel-related companies. WTTC's mission is
to raise awareness of the full economic impact of the Travel and Tourism
industry. It lobbies for open markets, relaxation of border controls, and
development of infrastructure. Its recent Blueprint for New Tourism encourages
governments to adopt policies favoring sustainable tourism, which balances
economic growth with the protection of natural and cultural resources. The
WTTC is headquartered in London, UK with an office in Gurgaon, India.

International Hotel and Restaurant Association (IH&RA)

www.ih-ra.com
Officially recognized by the United Nations, IH&RA represents the interests of

the world's hotels and restaurants. Members include hotel and restaurant
operators, corporate hotel executives, national hospitality associations, hotel
schools and suppliers to the hospitality industry. The association is responsible
for lobbying international policy-making bodies to resist regulations that could
damage their business, estimated to comprise 300,000 hotels and 8 million
restaurants. The International Hotel & Restaurant Association is headquartered
in Lausanne, Switzerland.
American Society of Travel Agents (ASTA)

www.asta.org
Based in the United States of America, ASTA describes itself as the world's
largest association of travel professionals. It has more than 20,000 members,
the majority of them in the United States of America. The majority of ASTA's
members are travel agencies. However, travel suppliers, such as airlines,
hotels, car rental firms, cruise lines, and tour operators also join. The society
has separate membership categories for students, travel schools, retired travel
professionals, retail travel sellers, and others. Members are provided with
education and information resources to help them boost their professional
services to clients. ASTA members uphold a strict code of ethics, the pledge on
which members stake their reputation. The ASTA office is located in Virginia,
USA.
European Travel Agents and Tour Operators Associations

(ECTAA)
ECTAA represents the national associations of travel agents and tour

operators of 27 EU Member States, 2 EU accession countries as well as
Switzerland, Norway and 3 international members (Tunisia, Morocco and
Israel). It actively cooperates with EU institutions and international organiza-
tions to ensure that their interests and special requirements are taken into
consideration.
Pacific Area Travel Association (PATA)

www.pata.org
Founded in 1951, PATA is the dominant industry association in one of the

world's most popular Travel and Tourism regions. Based in Bangkok, its
membership includes nearly 100 government, state and city tourism bodies,
76 airlines and cruise lines, some 2,000 companies and organizations, and
17,000 individuals in 78 Chapters worldwide. Its programs are designed to help
members enhance their competitive edge through research and marketing
services, product development and educational seminars and workshops. It
also produces a number of statistical and research reports feeling the pulse of
the region. PATA is a strong supporter of sustainable tourism. PATA
headquarters are in Bangkok, Thailand.
International Airline Passenger Association (IAPA)

www.iapa.com
With over 400,000 members around the world, IAPA's main goal is to represent
the views of travelers who fly often, by speaking out on safety and health
issues related to flying. One area in which IAPA has made efforts is the
improvement of aircraft cabin air quality. It also offers members discounts on
hotels worldwide, savings on car rental, comprehensive travel insurance, and
other benefits. IAPA continues to exert pressure for an active and capable
aviation regulatory system to bridge national regulatory boundaries. The
International Airline Passenger Association is headquartered in San Antonio,
Texas.
International Congress and Convention Association

(ICCA)
www.icca.nl
ICCA members, numbering over 700 in almost 80 countries, represent the

world's leading specialists in managing, accommodating and transporting
international conferences and events. The group focuses on business matters
such as marketing, market research and education. One of its major efforts has
been to enhance co-operation for the concerted promotion of regions as an
attractive destination for international meetings. The ICCA head office is based
in Amsterdam, The Netherlands.

Source: Les organisations internationales du voyage et du tourisme proposent des forums de

discussions et donnent l'occasion aux membres de différentes parties du monde de créer des liens
et d'apprendre les uns des autres.
International Travel and Tourism organizations provide forums for discussion,

and allow members from different parts of the world to network and learn from
one another.
Apply Your Learning

Do an Internet search for the many dozens of international Travel and Tourism
organizations, aside from those listed above. Jot down how you think they can
be of help to you in terms of market research, the development of new travel
and tourism products and services, and keeping in touch with industry trends.
Study Check 1.7
1. International Travel and Tourism organizations are ineffective groups of

appointed executives doing nothing. TRUE or FALSE?
(a) True
(b) False
2. The main function of international Travel and Tourism organizations is to

defend the interests of their members. TRUE or FALSE?
(a) True
(b) False
3. Most international Travel and Tourism organizations are focused only on

reducing government and industry regulation. TRUE or FALSE?
(a) True
(b) False
1.7.2 Unit Summary

In this Unit you studied the role of International Travel and Tourism associ-
ations and organizations. You learned that they are good sources of infor-
mation on global trends, statistics, research and other forms of information
(Section 1.7.1). They play an important role in defending the interests of both
the industry at large as well as their own specific sectors. They are also
important points of contact for networking and broadening your list of global
associates. Finally, you learned about specific organizations and their roles
(Section 1.7.2).

1.8 Regional and National Travel and Tourism

Organizations
• State the importance of regional and national Travel and Tourism

organizations (Section 1.8.1).
1.8.0 Unit Overview

Unit Learning While the international Travel and Tourism organizations “think global”, the job
Objectives of the regional and national Travel and Tourism organizations is to “think local”.
By completing this Unit, Both have their unique roles to play in improving the product quality of
you will be able to: destinations and helping to market them better.
1.8.1 The Role of Regional and National Tourism

Organizations
Regional and national tourism organizations play an important role in the
Travel and Tourism industry. Many are members of the bigger international
Travel and Tourism organizations listed in Unit 1.7 and use their resources to
organize conferences, gather research and keep informed about global travel
trends. Such resources would be very expensive for the regional and national
tourism organizations to develop on their own.
The main function of the regional and national Travel and Tourism organiza-
tions is to provide infrastructure support within the industry to ensure that a)
tourists are encouraged to travel to their regions or countries; and b) that
sellers of travel and tourism products have all possible information related to
any questions consumers may ask about their destinations.
Key Learning Point

Regional and national Travel and Tourism organizations have to provide
infrastructure support within the industry.
They also have to actively sell their respective regions and destinations
abroad. That paves the way for the private sector to then build upon that broad
effort to market their individual hotels, tour services, convention facilities, etc.
The tourism organizations do this in several ways, many of them targeted at
travel agents. For example, they set up overseas offices and marketing
representatives whose main duties are to:
• Organize the private sector's participation in global and regional travel
trade fairs—Important industry events include World Travel Market (WTM),
European Incentive & Business Travel & Meetings exhibition (EIBTM),
Internationale Tourismus Börse (ITB), Feria Internacional de Turismo
(FITUR), Arabian Travel Market (ATM), PATAmart, INDABA and many
more.
• Undertake advertising campaigns, usually in cooperation with the private
sector or airlines.
• Work with the travel trade, in countries from which their visitors originate, to
include greater content for their destinations in tour wholesalers' bro-
chures.
• Answer queries related to safety, security, visas, facilities, etc.
• Do research on behalf of the private sector, which can include airlines,
hotel chains and non-government organizations.
At the head office level, they have to:

○ Provide support for the marketing activities of the overseas offices.
○ Keep track of vital statistics to indicate market trends.
○ Manage product development at home.
○ Organize training courses and other human resources development
activities.
○ Organize trade fairs back home.
One recent trend, especially in developing nations, has been for many
provincial, state or city destinations to set up their own tourism offices, in order
to highlight their own unique selling propositions.
Key Learning Point

One recent trend, especially in developing nations, has been for many
provincial, state or city destinations to start setting up their own tourism offices.
In some countries, national tourism organizations are full-scale ministries,
acting either as single-portfolio ministries or in conjunction with others like
culture, transportation, sports. Ministries usually have a higher level of
development or regulatory role to play, i.e., they are more closely involved in
executing master plans for tourism development or enforcing laws related to
hotels, tour operators, guides, etc.
In recent years, many tourism organizations have been facing budgetary
constraints and are being restructured to include private sector participation.
Many are being chaired by private sector executives. This is also making them
more efficient and accountable in terms of how they spend their money.
National tourism organizations also work closely with the private-sector trade
associations, such as those grouping the local hotels, travel agents, guides,
souvenir shops, etc. Such associations are smaller versions of the larger
international Travel and Tourism organizations and work to achieve the same
results: defending their members' interests against excessive regulation and
taxation, organizing marketing forums, conducting research and training
courses.
Apply Your Learning

There are one hundred or so national associations of travel agents. You should
familiarize yourself with the national association and national tourism organiza-
tion in your country or region.
Learn more by visiting their websites or by contacting their offices; Study a
copy of their annual report; find out how they are structured and what each of
their departments does; ask how you can get access to research and statistical
information. Find out about their education programs. Ask how you can be
enrolled in a program to become a “destination specialist”.
Unit 1.8: Regional and National Travel and Tourism Organizations 67

Study Check 1.8
1. Many regional and national tourism organizations are able to benefit from
conferences and research that would be too costly for them to develop on
their own. TRUE or FALSE?
(a) True
(b) False
2. Government domination of such regional tourism organizations is de-

creasing; the private sector is now getting increasingly involved. TRUE or
FALSE?
(a) True
(b) False
3. Marketing and promoting their regions in foreign countries is often the most
important function of such organizations. TRUE or FALSE?
(a) True
(b) False
1.8.2 Unit Summary

Various regional and national Travel and Tourism organizations play a major
role in marketing destinations and managing a country's tourism industry
(Section 1.8.1). They are critical to ensuring that the destination is putting the
right product in the right market. Though they operate at a national level, many
states, provinces, regions and cities have set up marketing organizations for
their own areas. They are very important points of contact for travel agents.
1.9 Responsible Travel and Tourism
• Explain trends in responsible travel and tourism (Unit 1.9.1).

• Define Corporate Social Responsibility (CSR) (Unit 1.9.1).
• Explain the main behaviors of responsible travel and tourism (Unit 1.9.2).
• Identify principal international agencies promoting responsible travel and
Unit Learning tourism (Unit 1.9.3).
Objectives
you will be able to: 1.9.0 Unit Overview
Travel professionals must be aware of trends that influence and change what
customers need and want. Responsible travel and tourism is an important
travel trend today. Both the travel and tourism industry and travelers worldwide
are focused on doing as little damage as possible to the planet. Travel
professionals should know about responsible travel and tourism, how it affects
the products and services they sell and the how it influences the decisions
made by today's business and leisure customers.
1.9.1 An Important Trend

Behaving in an environment friendly way is now part of our daily habits at home
and in the work place.
Climate change, air and water pollution and the decrease of the diversity of
vegetation and wildlife are often discussed topics. Ecology and Environment
are subjects taught and studied in schools and reported on by television and
newspaper media. The documentary film An Inconvenient Truth raised public
concern about the consequences of climate change. The success of Earth
Day, celebrated on April 22nd every year, is proof that there is a world wide
movement, to live a “greener” lifestyle. To help keep the planet livable for future
generations behave in conscious ways through recycling, composting, traveling
by bicycle and using energy efficient light bulbs and kitchen appliances, to
mention a few.
Industries are also changing the way they work to minimize any damage to the
environment. Many of them are forced to do so by government legislation.
Corporate social responsibility (CSR) is now known as a voluntary business
management approach that promotes good citizenship through positive econ-
omic, social and environmental practices. This approach is based on the
concept of Sustainable Development introduced by the United Nations (UN).
The concept means “environmental, economic and social well-being for today
and tomorrow” (www.iisd.org). Over the years, the UN has brought together
governments, organizations and experts to discuss global warming. Climate
change is the most important challenge the world faces today. Global warming
causes drastic climate changes that disturb the world's ecosystems and our
own health and way of life.
Many international organizations such as the UNWTO and the GSTC (Global
Sustainable Tourism Council www.new.gstcouncil.org) are focusing on sustain-
able tourism. In addition, travel and tourism professionals have participated in
the elaboration of declarations (Cape Town, Lusaka, and San Salvador) on
how to implement responsible tourism. As a result, smart travel and tourism
businesses now practice CSR by creating and promoting products and
services that support destinations: their environment, cultures and their people.
Today's travel customers would not want to buy travel products or services that
knowingly harm a destination's natural environment and people.
Unit 1.9: Responsible Travel and Tourism 69

Apply Your Learning

The idea and acceptance of Earth Day has caught
on. In 1970, the year of the first Earth Day, the
movement gave voice to an emerging conscious-
ness toward environmental issues. Forty-six years
later, it continues to lead with ground-breaking
ideas and the power of example. Earth Day is more
than just a single day–April 22. Attend the Earth
Day rally and take a stand. Reduce the use of fossil
fuels and make cities 100% renewable by planting
a tree.
Take the momentum from the Paris Climate Summit and build on it. Check out
the map in www.google.com/maps/d/viewer?mid=zClNjYr-OyQE.kRmd-
WG6PK5o to see what events are lined up for your country.
Key Learning Point

Educational institutions, governments, the media and international organiza-
tions like the United Nations actively report on the state of the planet and have
created a sense of urgency in many people around the world to do their part to
protect the planet and its peoples, locally and internationally.
1.9.2 What is Responsible Travel and Tourism?

Travelers, although greatly appreciated for the revenues they bring to the
destinations they visit, may also unintentionally create a negative impact.
Travelers can create waste or pollution by:
• using forms of transportation that consume high energy
• leaving garbage behind in places visited
• purchasing prohibited souvenirs
An increase in the number of travelers visiting a destination may also:
• create overcrowding
• anger or offend local residents
• bring crime to the destination
• use foreign services that do not create local jobs for local people
Responsible travel and tourism is based on the concept of preservation,
including green and sustainable tourism. Green tourism is about choosing
products and activities that are friendly to the destination's ecosystem and
natural environment. Becoming “green” in the travel products sold and in the
way we work is the focus for many travel related companies. Here are some
examples:
• Aircraft manufacturers are building new aircraft that pollute less
• New hotels are safely built according to a “green” building code
• Travel suppliers reduce paper consumption by producing electronic of
digital flyers and advertisements
Responsible travel and tourism is also based on the principle of sustainable
tourism. Sustainable tourism is more than choosing environment friendly
products and services. Planeterra (www.planeterra.org) is a non-profit organ-
ization dedicated to promoting sustainable tourism. Planeterra defines sustain-
able tourism as activities that respect the destination's people and cultures and
bring economic benefits to the businesses and communities of the destination.
Sustainable tourism motivates visitors to respect local people and cultures. It
creates economic benefit for the destination's local businesses and communi-
ties. And sustainable tourism practices discourage tourist behaviors that can
potentially bring crime, abuse and poverty to a destination.
Responsible travel and tourism guidelines promote travel itineraries, packages,
tours and tourist activities that create positive outcomes on the destination and
its people. It also leaves visitors with a memorable experience.
Responsible travelers are respectful of the host country: its history, its cultural
and its natural environment and resources. They avoid activities that negatively
impact local economies, cultures and environment. They use small-scale or
locally owned accommodations instead of international foreign hotel chains.
They try to use local ground transportation such as a train or electric busses to
tour the destination; they support locally-owned businesses by shopping in
local shops, eating in local restaurants and buying locally made handicrafts and
souvenirs. They use local tour guides. Through organizations such as
Planeterra (www.planeterra.org), responsible travelers also volunteer to partici-
pate in a community-based ecotourism project as part of a tour.
Responsible travel and tourism suppliers improve the environment, culture,
aesthetics, heritage, and well-being of a destination and its residents. They
improve life for residents of a destination. For example, large hotel companies
practice responsible tourism when they build a new hotel using local non-toxic
materials and hiring local builders and employees.
Responsible travel agents and tour operators are knowledgeable about travel
services, packages, tours, and activities that are destination friendly, respect-
ing a destination's environment and communities. Responsible travel pro-
fessionals educate their customers about the importance of respecting the
destinations they visit. In other words, today's challenge for the travel agent is
to identify the availability and quality of responsible travel products and
services that can be offered and sold to their customers.
Practicing responsible travel and tourism as a travel agent means that you:
1. are knowledgeable about travel services, packages, tours, and activities
that are destination friendly, respecting a destination's environment and
communities
2. Educate customers about the importance of respecting the destinations
they visit
In other words, today's challenge for the travel agent is to identify the
availability and quality of responsible travel products and services that can be
offered and sold to their customers.
Apply Your Learning

Research the UNWTO, GSTC web pages on sustainable tourism and discuss
at work in what way your Travel Agency is already practicing or should practice
responsible tourism in the near future.

Key Learning Point

Tourism can bring as much disadvantage to a destination as it brings benefits.
Responsible tourism is a combination of conservation and preservation
guidelines. It is about conserving the destination's natural environment (green
tourism) and about respecting the destination's local people and cultures
(sustainable tourism).
Tourism promotes travel products and services that preserve local culture and
generate tourism revenue and local jobs. The infographic from the UNWTO
shows why it matters.
Source: UNWTO infographics
1.9.3 Promoters of Responsible Travel and

Tourism
While many governments of tourist destinations support the concept of
sustainable tourism, several international organizations actively promote and
facilitate responsible travel and tourism.
The Global Sustainable Tourism Council (GSTC)
new.gstcouncil.org
A global initiative dedicated to promoting sustainable tourism practices around
the world. The GSTC serves as the international body for promoting the
increased knowledge, understanding and adoption of sustainable tourism
practices. The GSTC fosters sustainable tourism through the adoption of
universal sustainable tourism principles; compiling, adapting and creating the
tools and training to engage in sustainable tourism practices; and increasing
the demand for sustainable tourism products and services.
At the heart of this work are the Global Sustainable Tourism Criteria, the
minimum requirements that any tourism business should aspire to reach in
order to protect and sustain the world's natural and cultural resources while
ensuring tourism meets its potential as a tool for conservation and poverty
alleviation (Copyright © 2011 Global Sustainable Tourism Council).
The United Nations' World Tourism Organization (UNWTO)
www.unwto.org
The UNWTO is an agency of the United Nations and an authority on tourism
development and know-how. It works with governments and provides guidance
and support to countries that wish to develop or build a tourism industry,

especially in developing regions. In 1999, the UNWTO established a Global
Code of Ethics for Tourism, a list of ten moral principles that promote positive
experiences and benefits through tourism. They include respect for people and
societies, contribution to job creation and economic growth, respect for workers
and responsibilities of tourism industry suppliers. The UNWTO recommends
the adoption of these principles by travelers, destinations and travel busi-
nesses.
Source: UNWTO http://ethics.unwto.org
Most UNWTO activities and projects are linked to tourism education and
development and the creation of a tourism industry to help reduce poverty.
UNWTO is active in working with governments on solutions to protecting the
environment and preventing damaging climate change. In 2016, the UNWTO

reported that countries with a more open and sustainable tourism sector tend to
be more peaceful. Its research looks at the links between tourism and peace.
Source: www.wttc.org/research/other-research/tourism-as-a-driver-of-peace
The United Nations Education Scientific and Culture Organization

(UNESCO)
www.unesco.org
UNESCO is also an agency of the United Nations. It works to promote peace,
human rights, acceptance of all cultures and races and interaction between
them, literacy and education. The program labels destinations and sites of
cultural and natural interest to travelers as “UNESCO sites”. These are
landmarks or places such as buildings, statues, nature areas, or cities that
have a special cultural or physical significance. The UNESCO label helps
attract tourism to UNESCO heritage sites and encourages the site home
country to preserve its cultural and environmental characteristics.
UNESCO promotes the conservation of biodiversity. Biodiversity conservation
is the protection of the many different species of wildlife, plants and
ecosystems so that they do not become extinct. UNESCO encourages visitors
to World Heritage Sites to “Visit responsibly” by referring to responsible tourism
habits.
The International Ecotourism Society (TIES)
www.ecotourism.org
TIES, a non-profit organization, promotes ecotourism. Ecotourism is travel to
natural areas where visitors practice conservation behaviors.
TIES projects include “volontourism”, tourism activities that involve visitor
volunteers to work on environmental or cultural projects such as teaching a
second language in Cambodia or building an irrigation system in Costa Rica.
Volontourism provides travelers an authentic travel experience, an opportunity
to immerse oneself in a new culture, a unique education, some adventure and
the satisfaction of helping a disadvantaged community or environment.
Sustainable Travel International (STI)
www.sustainabletravelinternational.org
Sustainable Travel International is a non-profit organization that supports and
promotes ecotourism through education and outreach. STI is collaborating with
its partners to improve 10 million lives over the next 10 years through travel and
tourism. To help them reach their goal, visit http://sustainabletravel.org/get-
involved/10-million-better.
International Institute for Peace Through Tourism (IIPT)
The International Institute For Peace Through Tourism (IIPT) is a not for profit
organization dedicated to fostering and facilitating tourism initiatives which
contribute to international understanding and cooperation, an improved quality
of environment, the preservation of heritage, and through these initiatives,

helping to bring about a peaceful and sustainable world.
It is based on a vision of the world's largest industry, travel and tour-
ism–becoming the world's first global peace industry; and the belief that every
traveler is potentially an “Ambassador for Peace”.
A primary goal of IIPT is to mobilize the travel and tourism industry as a leading
force for poverty reduction. Its credo is echoed by various travel organizations
as an ethical philosophy. It emerged from an IIPT global event in 1988 that was
the inspiration of a very special person at the IIPT First Global Conference
called “Tourism–a Vital Force for Peace” held in Vancouver, Canada in 1988.
The author requested to remain anonymous and this request has been
respected to this day.
Source: International Institute for Peace Through Tourism
Key Learning Point

Key international tourism organizations are actively engaged in promoting
responsible travel and tourism via their programs, policies, projects, guidelines
and publications.

Study Check 1.9
1. Which of the following is generally considered to be a green habit?

(a) Leave the office lights on after work hours
(b) Travel by public bus instead of taxi
(c) Take more baths than showers
(d) Drink bottled water instead of tap water
2. Which would be the best practice of Corporate Social Responsibility in the

cruise industry?
(a) Dispose human and kitchen waste in the sea
(b) Designate smoking areas in the casino on board
(c) Stop at ports for passengers to disembark and visit
(d) Sell coral reef souvenirs to cruise passengers
3. Which global warming effect can possibly hurt travel destinations?

(a) The melting of glaciers in Alaska and Switzerland
(b) More days of hot tropical weather in tourist destinations
(c) Rising sea levels and deeper oceans due to more rainfall
(d) Stronger and plentiful growth of forests and plants
4. The tourism industry does not affect the natural environment. TRUE or
FALSE?
(a) True
(b) False
5. Sustainable tourism is about creating local jobs for local people. TRUE or
FALSE?
(a) True
(b) False
6. Responsible travel and tourism is practiced by travelers only. TRUE or

FALSE?
(a) True
(b) False
7. The travel agent's role is to inform customers on green travel. TRUE or

FALSE?
(a) True
(b) False
8. The Great Barrier Reef is an example of .

(a) volontourism
(b) a code of ethics
(c) a UNESCO World Heritage Site
(d) sustainable tourism
9. TIES is an organization that promotes .

(a) climate change
(b) tourism economics
(c) cultural sites
(d) ecotourism
1.9.4 Unit Summary

Today's media and schools increase awareness of existing threats to the well-
being of our planet's environment, natural resources and people. Private
businesses in every industry are setting policies and work processes to
minimize damage to the environment and raise corporate tolerance of different
cultures under the concept of Corporate Social Responsibility. Together with
the UN, governments are meeting to discuss and adopt standard measures
supporting sustainable development (section 1.9.1). As a result, travelers are
choosing products and services that are environment and destination friendly.
Hence, travel sellers must know whether the products and services they sell
are destination friendly. They must themselves promote responsible travel and
tourism practices and educate their travel customers about traveling respon-
sibly. Responsible travel and tourism incorporates sustainable development:
the preservation of the planet's natural resources, cultures and financial well-
being (section 1.9.2). There are several non-profit organizations that work at
promoting responsible travel and tourism. They educate travelers and travel
suppliers in sustainable development and make it possible for them to
participate in sustainable development projects in risk destinations
(section 1.9.3).

Module Summary
In this Module you studied the Travel and Tourism industry and the role of the
Travel Professional. You learned about the role of the travel agent in the ever-
changing dynamics of today's business environment (Unit 1.1). You read about
the business activities that generate income for a travel business (Unit 1.2).
You learned the main business sectors of the Travel and Tourism industry
(Unit 1.2). You studied the basic 5 A's that are essential to a successful
destination (accommodation, accessibility, activities, amenities, attractions)
(Unit 1.3). You learned the business requirements and commercial skills
necessary for a travel agency to operate efficiently (Unit 1.4). You read about
the types of employment in the Travel and Tourism industry (Unit 1.5). You
learned the desirable characteristics, attributes and skills needed by a
professional Travel and Tourism employee (Unit 1.6). You studied the major
international Travel and Tourism organizations and their purpose (Unit 1.7).
You learned the role that regional and national organizations play in the Travel
and Tourism industry (Unit 1.8). This Module 1 described a new travel trend,
where travelers are looking for destination friendly and conservation type travel
products and services, and travel sellers are becoming promoters of Respon-
sible Travel and Tourism.
Review Questions
Note: The correct answer may involve 1, 2 or all of the choices. Please weigh
all the options carefully before choosing.
Unit 1.1
1. In the changing world of travel, and thanks to technology, you can now
work:
(a) From home
(b) At the office
(c) On the road
(d) All of the above
2. The World Tourism Organization estimates that by the year 2030,

international visitor arrivals will top:
(a) 500 million
(b) 800 million
(c) One billion
(d) 1.8 billion
3. Some travel agents are trying to cope with the pressures of change by:
(a) Selling out to larger businesses
(b) Closing their companies and retiring
(c) Moving into niche markets
(d) Either/or one of the above, depending on their circumstances
Unit 1.2
1. The reduction of airline commissions is a:
(a) Threat
(b) Opportunity
(c) Both a and b
(d) Neither, just another step in the ever-changing world of business
2. Other industries like finance, telecommunications and agriculture are

looking to forge partnerships with the Travel and Tourism industry
because:
(a) It's fashionable to link up with tourism
(b) They are aware of the amount of money they can make from it
(c) They want to improve their image
(d) They can cross-train their staff and diversify their business
Review Questions 79
3. It is necessary to be selective about what products you sell because:

(a) There are simply too many products to sell
(b) Your staff will not be able to handle the pressure
(c) Small is beautiful
(d) You do not have enough office space
Unit 1.3
1. Families holidaying with children mostly like:
(a) Sitting around the hotel while the children swim in the pool
(b) Going to the local theme parks and attractions
(c) Leaving the children in the hands of the hotel's kiddie's corner while the
parents do their own thing
(d) Becoming adventurous and trying some local cuisine
2. Destinations are trying to broaden their activities for visitors because:

(a) They want to increase the visitor length of stay
(b) It makes the destination look good
(c) It attracts investment in the destination
(d) It creates jobs
3. In order to find the right product for the right customer, travel agencies
need to:
(a) Maintain a broad range of products in their portfolio
(b) Research their local neighborhoods and customer bases
(c) Conduct surveys and mail out questionnaires
(d) Become part of an agency chain
Unit 1.4
1. The best way to build a successful travel business is by:
(a) Having a vision of exactly where you want to be 10 years from now
(b) Borrowing a lot of money and starting with a very large office
(c) Vigorously undercutting the competition
(d) Hiring a consultant to come and show you how to
2. Good financial management of the company is important because:

(a) It helps keep costs down
(b) It allows you to survive downturns in the travel industry
(c) No agency would survive without it
3. Good negotiating skills will help your business:

(a) Deal with difficult situations
(b) Deal with complaining customers and lawyers
(c) Get the best possible products and prices
(d) Convince employees to give up a pay increase
Unit 1.5
1. Counter-staff at travel agencies are called gate-keepers because:
(a) All complaints have to go through them
(b) They can influence choice of destinations
(c) They answer the phones
(d) They control access to management
2. A “moment of truth” is:

(a) When you make a mistake in planning your client's itinerary
(b) Every point at which customers are dealt with, either face to face or
over the phone or other points of contact
(c) Being confronted by your boss about a problem
(d) Having to deal with a lawyer over a legal action
Unit 1.6
1. Setting up a website provides you with the advantage of:
(a) Being able to seek business opportunities in different parts of the world
(b) No longer having to worry about making eye contact with your
customers
(c) Marketing your products without worrying about huge costs
(d) Being able to do what everyone else is doing
2. When they walk into your travel business, customers expect to be:
(a) Left alone to check out the products on your shelves
(b) Attended to professionally and courteously
(c) Given a number and asked to wait their turn
(d) Handed a bunch of brochures listing the latest “special deals”
3. Having staff that are multi-cultural and speak several languages can help:
(a) Broaden the business base and attract new customers
(b) Gain more employment for minorities
(c) Increase business profitability
Review Questions 81
Unit 1.7
1. Through their websites, international Travel and Tourism organizations:
(a) Communicate their activities and policies
(b) Generate membership
(c) Communicate with the media
(d) Make themselves look modern and in line with the times
2. Many international Travel and Tourism organizations have recently been

restructured due to:
(a) Internal politics
(b) A need to make them more productive, focused and efficient
(c) Budgetary shortages
(d) Difficulty in finding staff
3. Having so many international Travel and Tourism organizations:

(a) Creates confusion in the industry about who wants to do what
(b) Leads to competition among them for domination
(c) Allows a broad range of views to be aired at different forums and at
different levels
(d) Ensures that principal issues are identified and addressed
Unit 1.8
1. Regional and national tourism organizations are set up mostly to:
(a) Provide infrastructure marketing and product development support for
the private sector to do business
(b) Deal with other branches of governments in solving industry problems
(c) Provide training and research
2. Having a Travel and Tourism ministry in a country is advantageous

because:
(a) It means high-level of contact and decision-making
(b) The industry gets taken more seriously than others
(c) It encourages politicians to better support the industry
3. Provinces, states and cities set up their own tourism promotion organiza-
tions because:
(a) The national tourism organizations are not doing a good job
(b) They can market their own destinations in a more focused manner
(c) They have plenty of money and do not know what else to do with it
(d) Everyone else is doing it
Unit 1.9
1. Which of the following practices supports the principle of Sustainable
Development?
(a) A resort hotel replacing unused guest towels daily
(b) A city raising the price of commuter bus tickets for non-residents
(c) A national park allowing unrestricted access to its nature reserve and
wildlife
(d) An airline replacing its fleets with energy-efficient aircraft.
2. Which is an example of responsible travel?

(a) Purchasing imported designer label clothes at a resort
(b) Renting a large jeep vehicle to tour a destination
(c) Staying at a locally owned inn
(d) Collecting local shell fish on the beach as souvenirs
3. What type of tourism behavior is displayed when a restaurant replaces its

disposable paper coffee cups with re-usable porcelain cups.
(a) Green
(b) High impact
(c) Volunteer
(d) Adventure
Review Questions 83
Glossary
Billing & settlement plan (BSP): Payment system set up by the International
Air Transport Association (IATA) worldwide to process, supervise and regulate
payments by travel agents to airlines.
Commission: Fee paid to an agent by a supplier for transacting a piece of
business or performing a service, usually expressed as a percentage of the
transaction value.
Computer reservation system (CRS): System set up by airlines to automate
bookings and reservations of airline seats and then “licensed” to a travel
agency or tour operator for use in-house.
Corporate Social Responsibility (CSR): The promotion of corporate good
citizenship when a private company or an industry sets policies that work to
prevent or minimize environmental damage and improves the economy and
well-being of people.
Ecotourism/ecotours: Tours designed to contribute to the conservation of the
sites visited. Ecotourism generally considers local opinion and tries to assist in
the preservation of local customs and ways of life.
Fee-based services: Services provided by travel intermediaries in exchange
for which the intermediary charges the buyer a fee rather than being
compensated by a commission from the supplier of the product sold.
Comparable to fees charged by other professionals for advice.
Frequent flyer program/points: Loyalty programs set up by airlines to reward
frequent flyers with “points” for repeated usage of their product. These “points”
can then be redeemed for additional travel at no further cost or other rewards
like hotel stays or car-rentals.
Global distribution system (GDS): What computer reservation systems
became after the airlines began making them available globally and also
included other features like hotels, car rentals and other products.
Gross domestic product (GDP): The market value of a country's output
attributable to factors of production located in the country's territory.
Incentives: Holidays given as a reward to company executives for meeting
sales or productivity targets. Usually require higher standards of services and
facilities than just regular tours available from travel agents.
Outbound tour operators: Companies which operate outbound tours from a
country; usually, are also wholesalers.
Perishable product: Product with a short lifespan. A vegetable or fruit may
last a day or two before “perishing”; in the travel industry, a seat that goes
unused today has “perished”; whereas a book or piece of equipment may
remain on the shelf for months before losing its value.
Prorating: Share proportionately according to an exactly calculable factor; to
divide to distribute or assess proportionately.
Product/commodity: Goods or services used to satisfy demand.
Sustainable tourism: Any initiative that aims to create employment and
income generation with the least harmful impact on natural ecosystems and
local cultures.
Tour wholesaler: Tour company that combines various components of the
travel industry such as hotels, airlines and local attractions, into a “package” for
sale by retailers.
Travel & entertainment costs: The costs incurred by company executives on

business trips for travel, accommodation, communication, and entertainment of
clients or customers.
Umbrella organization: An administrative and functional structure overseeing
a number of smaller administrative units.
Unique Selling Proposition: An element of a product or service that offers a
specific benefit, is unique to one supplier, and is able to attract and retain
customers.
Wholesaler: Merchant middleman who sells chiefly to retailers, other mer-
chants, etc. for resale or business use.
Glossary 85
Answer Key Study Check 1.3

Study Check 1.1 1. (a) True. People like to do different things when
they travel. They come from different back-
1. b grounds, have different likes and dislikes, and of
2. (a) True course different budgets.
3. b 2. (b) False. While building the airport is a start, it

has to be marketed as a means of accessibility. If
4. (b) False. Selling Travel and Tourism is totally airlines are not “sold” on the reasons why that
different from selling other products and services airport is good for them to fly to, they will ignore it.
because it involves convincing people to go to
places they have never seen nor experienced. 3. (b) False. Visitors like to do both. The two kinds of
They can only be shown videos or brochures, but outlets are totally different from each other and
they have to physically travel there to experience add to the appeal and attraction of a destination.
the destination themselves.
Study Check 1.4
5. (a) True. This employment is in both direct and
indirect tourism-related jobs, that is, people work 1. (b) False. If you invest in staff training, there is an
either directly in the tourist industry, or they supply even chance staff will be more loyal to you and
it with products and services, such as telecom- stay longer than if you do not invest at all.
munications, agriculture, construction, etc.
2. (b) False. Even if your agency comprises only you
6. (a) True. Travel agents can greatly benefit from and your spouse, you still need to ensure having a
database management and internet-based tools smooth internal administrative system so that you
to reach their customers. collect payments, pay proper taxes, deal with
customers and suppliers, and explore new busi-
7. (a) True. A bed, seat or berth that goes unsold ness opportunities.
today has “perished” without yielding any rev-
enue. That is lost income. 3. (b) False. On the contrary, research and visitor
arrivals in your key markets can provide you with
Study Check 1.2 major pointers on trends to capitalize on.
1. (a) True. Many company executives travel in the 4. (b) False. Probably the worst mistake you can
premium classes, want prompt and efficient ser- make. No one knows your business like you do.
vice, and no disruption of their very valuable time Technology is only a tool; if you yourself do not
schedules. They usually realize this means having understand its functions, advantages and cost-
to pay a premium, and they are often willing to do benefits, you will neither be able to apply it well,
it. nor select which one to apply.
2. (b) False. Exactly the opposite is happening.

Study Check 1.5
Technology is allowing agents to explore the
world and develop many new sources of income. 1. (b) False. A degree will help to some extent on the
theoretical side, but nothing beats the advantage
3. (a) True. Multinational companies look to cut of common sense, a flair for dealing with people
Travel & Entertainment costs and seek the ser- and hands-on experience.
vices of professional travel consultants to help
them do it. 2. (b) False. For example, doctors are involved in
giving advice about diseases that holiday-makers
should be careful of in say, tropical destinations.
Indeed, travel medicine is becoming a field of
specialization in itself. Architects are involved in
the careful and sensitive design of hotels and
resorts that meet the needs of the investors, the
market and the destination itself.
3. (b) False: There are excellent opportunities for
growth in terms of both professional advancement
and increasing earnings. All depends on your own
creativity and desire to work hard.
Study Check 1.6 Study Check 1.9

1. (b) False. They come for friendly advice, consul- 1. b. Traveling with others by public bus reduces
tations and an update on what holiday options are carbon emissions per person.
available to them that suit their budgets and time
2. c. Allowing passengers to stop and visit at ports
availability.
will encourage them to purchase local goods and
2. (a) True. It will help you deal better with customer services and to experience the local culture.
segments among those who speak a different
3. a. The ability to view glaciers draws tourism to
language as well as allow you to specialize in
Alaska and the Swiss Alps.
various destinations.
4. (b) False
3. (b) False. No man is an island. A company
comprises various departments and divisions. All 5. (a) True
have to work well, both independently, as well as
with one another—like a symphony orchestra. 6. (b) False
7. (a) True
Study Check 1.7 8. c
1. (b) False. That may have been the case once 9. d
upon a time, but no longer. Members are de-
manding increasing accountability and pro-
ductivity for their membership fees. Organizations
are having to deliver.
2. (a) True. Organizations can do much better collec-
tively than what companies can do individually. As
companies in any one sector of the Travel and
Tourism industry share common interests, it
makes sense to have one organization to uphold
those interests.
3. (b) False. They also do marketing, training and
research work, which is equally important to
develop industry standards and raise profession-
alism.
Study Check 1.8

1. (a) True. Smaller organizations generally have
fewer staff and fewer resources. In order to
benefit from the value of conferences and re-
search, they maintain membership in international
Travel and Tourism organizations.
2. (a) True. The private sector is known as the
“engine of growth” and has to constantly come up
with ways to be more productive and efficient.
This strength applies equally to the companies
that executives run as well as to the associations
they are brought in to supervise, if not necessarily
manage.
3. (a) True. Marketing means positioning that desti-
nation on the world stage, and creating a “brand”
for it. The cost of this is prohibitive for any
individual company; sharing of costs among a
collection of companies makes it much more
feasible.
Answer Key 87
Review Unit 1.9

Unit 1.1 1. d
1. d 2. c
2. d 3. a
3. d
Unit 1.2
1. c. It is a threat to those agencies that have grown
to depend on it over the years, but it is also an
opportunity to diversify into selling other sectors.
2. b and d. Visitors are all major purchasers of
products of other industries, with finance, tele-
communications and agriculture being among the
major beneficiaries.
3. All of the above.
Unit 1.3
1. b
2. All of the above.
3. a and b
Unit 1.4
1. a
2. d
3. c
Unit 1.5
1. b
2. b
Unit 1.6
1. a
2. b
3. d
Unit 1.7
1. All except d
2. b
3. c and d
Unit 1.8
1. d
2. d
3. b
Module 2:
Geography in Travel Planning
Module Prerequisites • Describe the main business sectors of the travel and tourism industry.
Before beginning this • Explain the business activities that generate income for the travel agency.
• Describe the role of the travel agent in the travel and tourism business
environment.
• List business requirements and commercial skills necessary for a travel
agency to operate efficiently.
• Read a map and understand the concepts of latitude and longitude.
• Understand the importance of geography to the travel agent (Unit 2.1).

• Read and utilize maps to locate continents, countries and cities (Unit 2.2).
• Code and decode 3-letter city and airport codes (Unit 2.3).
• Plan a basic trip itinerary in a logical geographic sequence (Unit 2.4).
Module Learning
Objectives • Identify time zones and calculate elapsed travel times (Unit 2.5).
By completing this Module, • Identify local currencies (Unit 2.6).
• Identify modes of transport in various regions of the world (Unit 2.7).
Module Introduction
In this Module you will learn about the basic elements of physical, cultural and
destination geography. Next, you will explore the world's seven continents,
learn about the concepts of longitude and latitude, and locate and learn about
major countries and major cities. Then, you will learn about the creation of city
codes and their importance in selling and booking travel arrangements. You
will also learn about coding and decoding city and airport codes.
You will learn about planning travel itineraries by following basic guidelines
such as pace, interests, details, energy and routing. You will also evaluate
resources for developing itineraries. You will then learn about world time zones
and how to calculate elapsed travel times between selected destinations. Next,
you will learn about currencies and learn about country codes. Finally, you will
learn about the history of world transport modes and examine and compare
transport modes in each of the inhabited continents.
This module is accompanied by Attachment A, a geography workbook with
additional mapping practice. You can download Attachment A from your IATA
LMS User Account.
92 Module 2: Geography in Travel Planning

2.1 Marketing and Selling Travel with

Geography
• Learn basic terms and concepts of destination geography (Section 2.1.1).

• Explore basic terms and concepts of physical geography (Section 2.1.2).
• Evaluate basic terms and concepts of cultural geography (Section 2.1.3).
Unit Learning
By completing this Unit, In this Unit you will learn about destination geography including factors that
you will be able to: determine a destination's appeal including attractions, accessibility, costs and
standards of living, culture and climate. Next you will explore concepts of
physical geography including continents and oceans. Finally you will learn
about cultural geography and patterns of tourism.
2.1.1 Destination Geography

If a customer wants to go snorkeling on a tropical reef or shopping for precious
gems in one of the world's major cities, where do you send them?
If friends tell you that the trip from Macchu Picchu to Cuzco is a simple four-
hour journey, how do you know whether they know what they are talking
about?
The answer lies in understanding destination geography, which is the study of
all of the properties and characteristics of a location that influence travel.
It may surprise you to learn as a student of travel, that not all places in the
world are considered travel destinations. A travel destination is a location that a
traveler chooses to visit. There are many factors that determine which locations
become tourist destinations. Some of these include the following:
• Attractions: Proximity or nearness to attractions is one of the major factors
that influence a tourist's travel decisions. Some attractions are natural,
such as the Grand Canyon in the United States or the Great Barrier Reef in
Australia. Other attractions are historical, such as the Great Wall in China
or the Coliseum in Rome. Still others are “created” attractions, such as
Disney World and the Epcot Center in Orlando, Florida.
• Accessibility: A location's geographical position, as well as the modes of
transport available to reach the location, plays a role in determining which
locations become destinations. For example, it takes as long to fly
6,800 kilometers from Nairobi, Kenya to London, England than it does to
drive the 550 kilometers from Kampala to the famous mountain gorilla
reserve in Bwindi Impenetrable National Park. Some travelers need
comfort and efficiency, while others enjoy the challenge of reaching a
remote or exotic location.
However, a balance between convenient geographical position and a
variety of available transport options will likely make a location a more
popular travel destination.
• Costs and Standards of Living: Standards of living and costs for basic
goods and services vary widely around the world. Some locations provide
excellent services and luxurious goods, while others provide only basic
services and simple goods. In general, those traveling to more remote
destinations can expect that goods and services which they are accus-
tomed to will be more expensive, less available and in some cases
completely absent.
Unit 2.1: Marketing and Selling Travel with Geography 93

• Culture: Just as the standard of living varies widely from one destination to
another, so do cultures. Culture is defined as the sum of characteristics of
a society, including its language, religion, politics, art, food, customs and
related elements that shape and distinguish it from other societies.
travelers will encounter a variety of cultures around the world and even
different cultures within the same geographic area. For example, eating
beef products is considered a delicacy in one culture; in another it is
considered sacrilegious. Having a basic understanding of different cul-
tures, and matching potential customer needs and desires with those
cultures, will help make you a more effective travel professional.
• Climate: Travelers often mention climate as one of the most important
reasons for selecting one destination over another. Many people use the
terms “weather” and “climate” as though they were the same. The terms,
however, are different. Weather is a condition that happens at a particular
time, whereas climate is the average weather over an extended period of
time. Knowing a destination's future weather on any given day is
impossible, but knowing something about a destination's climate is very
important for planning effective travel itineraries.
Today, several Internet websites provide accurate weather forecasts and
conditions for destinations worldwide and for a few weeks ahead.
Finally, there are some characteristics of destinations that can change rapidly.
Some of these may be disease outbreaks, political unrest or uncertainty,
natural disasters, strikes or other labor shortages, extreme currency fluctu-
ations or devaluations and changes in governmental travel policy. Ultimately,
however, what makes a destination is an ongoing demand by travelers to visit
an area. Table 2.1.1 outlines the seven most important characteristics cited by
travelers for choosing a destination.
CHARACTERISTIC PERCENTAGE
Weather 57%
Sightseeing 44%
Beaches 39%
Entertainment 30%
Language spoken 28%
Restaurants 28%
Expensiveness 28%
Table 2.1.1—Seven Most Important Characteristics Cited by Travelers for Choosing a
Destination
Source: Travel Agents Magazine. Duluth, MN: Advanstar Communications.
Key Learning Point

Destination geography is the study of all the properties and characteristics of a
location that influence travel.

Study Check 2.1.1
1. Nearly all places in the world are considered destinations. TRUE or

FALSE?
(a) True
(b) False
2. Which of the following factors determines which locations become travel

destinations?
(a) Accessibility
(b) Culture
(c) Climate
3. Which of the following is an example of a characteristic that can change

rapidly and also affects the desirability of a destination?
(a) Outbreaks of disease
(b) Currency devaluations
(c) Political unrest
2.1.2 Physical Geography

As you read this Section please refer to an up-to-date world atlas. Suggested
atlases can be found in the Appendix of this Module, or you may refer to the
map provided. Look at the appropriate areas of the atlas as you read and learn
about the continents, oceans, and mountains.
In the previous Unit you learned about the aspects of geography that influence
destination choices by travelers. In this Unit you will explore physical
geography, which can be defined as the study of the world's natural terrain and
features. A good understanding of physical geography is essential to you as a
travel professional as it allows you to know both the constraints and benefits of
the natural world as experienced by travelers.
The major land masses of the world are known as continents. Geographers
typically identify 7 continents, although some geographers group Asia and
Europe together as one continent, Eurasia. The 7 continents as typically
described by geographers are:
1. Europe
2. Asia
3. Africa
4. North America
5. South America
6. Australia
7. Antarctica

Some geographers also include sub-continents when describing world physical

geography. Subcontinents include Central America, Australasia and the Pacific
Islands, and the Middle East.
The importance of the continents in shaping both the history and culture of
geography cannot be underestimated. Because of their importance, the earth's
continents will be discussed in more detail in Unit 2.2.
Students of geography are often amazed to learn that 71% of the earth's
surface is actually covered by water. Bodies of water are extremely important in
the travel industry. Many travelers seek warm weather vacations that include
stays on tropical beaches. Water also offers a variety of adventure travel
opportunities, including white-water river rafting, parasailing, water-skiing and
snorkeling. Table 2.1.2 shows the size of four major oceans and the
percentage of the earth's water area they occupy.
Ocean Area (Sq Km) Area (Sq Mi) % of Earth's

Water Area
Pacific 166,241,000 64,169,026 46.0%
Atlantic 86,557,000 33,411,002 23.9%
Indian 73,427,000 28,342,822 20.3%
Arctic 9,485,000 3,661,210 2.6%
Table 2.1.2—Size of Four Major Oceans and Their Percentage of the Earth's Water
Area
Note: 1 square kilometer = 0.386 square miles
Key Learning Point

It is very important to understand the world's natural terrain and features
because this knowledge will aid you in developing effective travel plans for
customers.
Study Check 2.1.2
1. What percent of the earth's surface is covered with water?

(a) 63%
(b) 71%
(c) 28%
(d) 52%
2. Why is a good understanding of physical geography essential for travel

professionals?
(a) To be able to plan new routings and itineraries
(b) To match geographical locations with transportation options
(c) To understand the world's geographical constraints or limitations, as
experienced by travelers
(d) a and c

2.1.3 Cultural Geography

In the previous two Sections you learned about aspects of destination
geography and physical geography. In this section you get to explore cultural
geography, which is the study of how geography influences people's behavior,
customs and habits. Cultural geography is sometimes referred to as “human
geography” because of intensive focus on human behavior.
There are many components that make up cultural geography. Some of these
are religion, economics, food, art, architecture, language, national boundaries,
politics, agriculture and employment. All of these components affect patterns of
travel and tourism.
Travelers visit destinations for a variety of reasons. Many of these reasons
shape an area of cultural geography known as touristic patterns. Touristic
patterns may be defined as a predictable combination of characteristics and
qualities that describe why, how and when people travel.
When tourism is at its highest point, it is known as peak season. When tourism
is at its lowest point, it is called off or low season. Finally, travel professionals
refer to the times in between peak and off-season as shoulder seasons. Not
surprisingly, a traveler can expect to pay the most for travel during peak
seasons, the least during off-seasons and a price somewhere in the middle
during the shoulder season.
Apply Your Learning

Online maps have gained popularity due to the large amounts of useful
information they offer alongside a traditional paper map or plastic globe. Most
of these maps online are available free of charge such as those offered by
Bing, Google, Mappy, National Geographic, Wikimapia, etc.
Most online map websites offer several map views such as political maps,
street views or overlays that you can switch between depending on your needs.
Create custom maps for any itinerary, mark places, add place pins, lines and
shapes and save it to your account. Load the saved map at any time, print it out
for your reference and even share a link to it with others. This makes it fun to
locate continents, sub-continents and oceans described in this section.
Study Check 2.1.3
1. When tourism is at its highest point it is known as:

(a) Off season
(b) Shoulder season
(c) Peak season
2. Cultural geography is sometimes referred to as “human geography”

because of intensive focus on human behavior. TRUE or FALSE?
(a) True
(b) False

2.1.4 Unit Summary

Destination geography is the study of all the properties and characteristics of a
location that influence travel. Factors that determine a destination's appeal
include features such as attractions, accessibility, costs and standards of living,
culture and climate (Section 2.1.1). To understand a destination's appeal to
clients, it is necessary to be familiar with physical geography including location
of continents and oceans (Section 2.1.2). By contrast,cultural geography
focuses more on how geography influences people's behavior, customs and
how these impacts tourism patterns. Touristic patterns may be described as a
predictable combination of characteristics and qualities that describe why, how
and when people travel. A traveler can be expected to pay the most for travel
during peak seasons and the least during low seasons (Section 2.1.3).

2.2 Understanding and Reading Maps
• Identify and understand characteristics of the world's continents

(Section 2.2.1).
• Understand longitude and latitude and how to read a map (Section 2.2.2).
• Locate, learn, and quote major countries within the continents
Unit Learning (Section 2.2.3).
Objectives • Locate, learn, and quote key cities within selected countries
By completing this Unit, (Section 2.2.4).
2.2.0 Unit Overview

In this Unit you will identify and learn about characteristics of the world's seven
continents. You will then explore the concepts of longitude and latitude and
how to use these measurements to read a map. Next you will locate and learn
about major countries within the continents. Finally, you will learn and explore
major cities within selected countries. A geography workbook forms Attach-
ment A to support this module study with practice locating countries and cities
on blank maps. Attachment A can be downloaded from your IATA LMS user
account.
2.2.1 The World's Continents

In Unit 2.1 seven continents were identified as Europe, Asia, Africa, North
America, South America, Australia and Antarctica. The following is a more
detailed description of the continents and their associated boundaries. As you
read these Sections please refer to an up-to-date world atlas. Suggested
atlases can be found in the Appendix of this Module. Look at the appropriate
areas of the atlas as you read and learn about the continents, countries and
cities.
• EUROPE: The land mass west of the Bosporus Strait in Turkey and west of
the Ural Mountains in Russia, extending west to the Atlantic Ocean.
Europe also includes the island nations of Ireland, Iceland, Malta and the
United Kingdom.
• ASIA: The land mass east of the Suez Canal in Egypt, east of the
Bosporus Strait in Turkey and east of the Ural Mountains in Russia,
continuing east to the Pacific Ocean. Asia also includes the island nations
of Japan, Chinese Taipei, Indonesia, Philippines, Maldives, and Sri Lanka.
Note: Sub-continents include the Middle East.
• AFRICA: The land mass bordered by the Indian Ocean on the east, the
Red Sea and Suez Canal on the northeast, the Mediterranean Sea on the
north and the Atlantic Ocean on the west. It includes the island nations of
Comoros, Mauritius, Reunion, Sao Tome and Principe, Madagascar and
Cape Verde, Seychelles and the Canary Islands.
• NORTH AMERICA: The land mass bordered by the Pacific Ocean on the
west, the Arctic Ocean on the north, the Atlantic Ocean on the east and the
nation of Colombia on the South. It also includes Bermuda, the Bahamas,
Greenland and the island nations of the Caribbean Sea, also known as the
West Indies.
Note: Sub-continents include Central America.
Unit 2.2: Understanding and Reading Maps 99

• SOUTH AMERICA: The land mass bordered by the Atlantic Ocean on the
east, the Pacific Ocean on the west and the country of Panama on the
north. It also includes Galapagos Island and the Falkland Islands.
• AUSTRALIA: The land mass bordered by the Timor Sea, the Arufura Sea
and the Gulf of Carpentaria to the north, the Indian Ocean to the west,
south and northwest, the Coral Sea to the east and northeast and the
Tasman Sea to the southeast.
Note: Sub-continents include Oceania (Pacific Islands such as
New Zealand, Papua New Guinea, and tens of thousands of other Pacific
islands).
• ANTARCTICA: The southernmost land mass located almost entirely south
of the Antarctic Circle. It is bordered on the north by the Indian, Atlantic and
Pacific Oceans.
Continent Area in Square Area in Square Percentage of

Kilometers Miles Earth's Land
Asia 44,485,900 17,171,557 30.0%
Africa 30,269,680 11,684,096 20.4%
North America 24,235,280 9,354,818 16.3%
South America 17,820,770 6,878,817 12.0%
Antarctica 13,209,000 5,098,674 8.9%
Europe 10,530,750 4,064,870 7.1%
Australia 7,682,300 2,965,368 5.2%
Table 2.2.1—The Continents, Ranked by Area and Percent of the Earth's Surface
Source: www.worldatlas.com/aatlas/infopage/contnent.htm.
Note: 1 square kilometer = .386 square miles
Key Learning Point

A continent is defined as one of seven large land masses. In addition, there are
several other groupings of islands and land masses that are often referred to
as sub-continents. Geographers do not agree completely on how to group
these sub-continents and how certain countries fit into continents.
Study Check 2.2.1
1. The Coral Sea is associated with which continent?

(a) Africa
(b) South America
(c) Asia
(d) Australia
2. Which of the following continents is located farthest to the south?

(a) Australia
(b) Antarctica
(c) Asia
(d) Africa

3. North America covers what percent of the earth's land?

(a) 20.4
(b) 16.3
(c) 12.0
(d) 8.9
4. South America is larger, in terms of square kilometers, than North America.

TRUE or FALSE?
(a) True
(b) False
5. Which of the following islands is not associated with the continent of

Africa?
(a) Madagascar
(b) Comoros
(c) Mauritius
(d) Maldives
6. Which continent is described geographically by the landmass west of the

Bosporus Strait in Turkey and west of the Ural Mountains in Russia,
extending west to the Atlantic Ocean?
(a) Africa
(b) Asia
(c) Europe
(d) None of the above
2.2.2 Longitude and Latitude of Map-Reading

Skills
One way to locate continents, countries, cities, and other geographical features
is to use latitude and longitude. Often, indexes in atlases and references in
maps will be made using degrees of latitude and longitude.
Latitude is determined by a series of imaginary lines circling the globe in an
east/west direction (parallel to the Equator). A geographic feature's latitude is
expressed by the number of degrees that it is north or south of the Equator.
The climate is usually similar at latitudes that are an equal distance north or
south of the equator.
Longitude is a series of imaginary lines going in north/south (pole-to-pole)
direction, perpendicular to the Equator, at intervals of 15 degrees. A geo-
graphic feature's longitude is expressed by the number of degrees it is east or
west of the prime meridian, which runs through Greenwich, England. The
geographic feature's exact location on a map or globe can be determined by
knowing its longitude and latitude.

Key Learning Point

Using longitude and latitude is the most precise way to identify the location of
continents, countries, states, and cities.
Study Check 2.2.2
Using the map provided and/or an atlas answer the following questions:
1. What city is located at 0 degrees latitude and 100 degrees east longitude?
(a) Sydney
(b) Padang
(c) Tokyo
(d) Singapore
2. What country is located between 20 and 40 degrees south latitude and

between 20 and 40 degrees east longitude?
(a) Libya
(b) South Africa
(c) Malaysia
(d) Brazil
3. What city is located just south of latitude 20 degrees north and just east of
longitude 100 degrees west?
(a) New York
(b) Mumbai
(c) Mexico City
(d) Cabo San Lucas
2.2.3 Exploring the Earth's Countries

Continents are the largest geographical landmasses. Continental boundaries
tend to be defined mainly by natural geographical features, separated mainly
by bodies of water or mountain ranges. Countries, which are the next smallest
geographical unit, have boundaries that are often determined by political forces
as well as geographic features. There are presently 194 independent countries
in the world and this number changes with some frequency depending on
political and social forces.
All countries attract tourists and have a geography, history and culture worth
exploring. Countries in western Europe continue to receive the highest number
of international visitors.

Country Continent
France Europe
United States North America
Spain Europe
China Asia (Pacific)
Italy Europe
United Kingdom Europe
Germany Europe
Mexico North America
Thailand Asia
Turkey Asia
Table 2.2.2—World's Top Country Destinations with highest international visitors
Key Learning Point

It is important as a travel professional to know about major countries that are
popular with travelers in order to develop strategies to grow your travel
business, facilitate personalization with targeted marketing and therefore
increase revenues.
Study Check 2.2.3
Use Table 2.2.2 to answer the following questions:
1. How many of the top 10 visited countries are located in Western Europe?
(a) four
(b) three
(c) five
(d) six
2. How many of the top 10 visited countries are located in North America?
(a) One
(b) Two
(c) Three
(d) Four
3. Which European country has the most international tourist arrivals?

(a) France
(b) United Kingdom
(c) Spain
(d) Germany

4. How many Asian countries are included in the top 10 list?

(a) One
(b) Two
(c) Three
(d) Four
2.2.4 Most Visited Cities in the World

Since the beginning of civilization humans have gathered together in cities.
Cities are vibrant centers of culture and commerce. Today, half of the world's
population lives in cities.
As some of the worlds greatest tourism destinations, cities have always
captured the interest and attention of travelers. Many travelers seek the culture
and variety of cities and equate travel destinations with an opportunity to
explore the world's great cities. With this in mind, urban tourism plays a critical
role in the promotion of the cultural identity, economic development and
enrichment of cities around the world.
Tourism activity can be measured in terms of number of visitors. The UN World
Tourism Organization defines a visitor as follows:
A visitor is not any traveler but one who takes a tourism trip to a main
destination outside the usual environment, for less than a year, for any main
purpose (business, leisure or other personal purpose) other than to be
employed by a resident entity in the country or place visited. A visitor
(domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if
his/her trip includes an overnight stay, or as a same-day visitor (or excursionist)
otherwise.
Table 2.2.3 lists the most visited cities in the world, their country location and
official language spoken.
City Country Language

1. Hong Kong Special Administrative Mandarin
Region, China
2. London United Kingdom English
3. Singapore Singapore English
4. Bangkok Thailand Thai
5. Paris France French
6. Macao Macao Mandarin
7. Dubai United Arab Emirates Arabic
8. Shenzhen China Mandarin
9. New York City USA English
10. Istanbul Turkey Turkish
11. Kuala Lumpur Malaysia Malay/English
12. Antalya Turkey Turkish
13. Seoul South Korea Korean
14. Rome Italy Italian
15. Taipei Chinese Taipei Mandarin
16. Guangzhou China Mandarin
17. Phuket Thailand Thai
18. Miami USA English
19. Pattaya Thailand Thai

City Country Language

20. Shanghai China Mandarin
21. Prague Czech Republic Czech
22. Las Vegas USA English
23. Mecca Saudi Arabia Arabic
24. Milan Italy Italian
25. Tokyo Japan Japanese
Table 2.2.3—World's most visited cities
Key Learning Point

Cities are destinations that promote cultural identify and economic develop-
ment through tourism.
Apply Your Learning

Using a map provided in this course, prepare a detailed list of travel benefits to
the cities that are located in your region or in areas to which you will likely send
travelers.
In the accompanying Workbook, use the blank maps to practice locating
countries and cities. Try to locate the lakes, rivers, mountains and oceans
studied in this module.
2.2.5 Unit Summary

The world's seven continents each have their own characteristics
(Section 2.2.1). The concepts of longitude and latitude and how to use these
measurements are important when reading maps (Section 2.2.2) and locating
major countries within the continents (Section 2.2.3). Cities have always
captured the interest and attention of travelers. Each year the list of most
visited cities change depending on world events. It is important to keep up to
date to be able to give the right professional advice to customers
(Section 2.2.4).

2.3 Three-Letter City Codes
• Discuss the history and importance of city codes (Section 2.3.1).

• Code and de-code city and airport codes (Section 2.3.2).
2.3.0 Unit Overview

Unit Learning
Objectives In this Unit you will learn about the creation of city codes and their importance
in selling and booking travel arrangements. You will also learn to code and
By completing this Unit, de-code city and airport codes.
All cities with an airport have their own unique code. This code is essential for
various reasons:
• Cities with the same name do exist. For instance, there are three countries
with a city named London, two countries with a city named Paris and three
countries with a city named Sydney. In the USA, there are three cities
named Lewiston and four named Albany. There are cities with very similar
names such as Havre in the USA and Le Havre in France, or Macapa in
Brazil and Macara in Ecuador.
• A second reason for developing standard city and airport codes is to
facilitate ticketing. Using full city names on travel documents would
consume too much space. Therefore it is easier to display city or airport
codes on airline tickets and the travel industry developed a shorthand way
to identify cities and airports on travel documents.
2.3.1 Three-Letter City Codes

Three-letter city codes have existed for many years. When travel professionals
take notes and complete reservations they use these standard codes. These
codes are required by all automated reservation systems, airport check-in
systems and airport baggage tracking systems that ensure baggage is loaded
on correct flights.
As a travel professional, you will use three-letter city codes everywhere. Use of
these codes will save time when navigating GDS systems. When you learn to
use a computer reservations system to find information and generate an airline
ticket, three-letter city or airport codes will represent the destinations a
customer will be traveling to and from.
For a complete list of f three-letter city codes, refer to the Passenger Air Tariff
General Rules book that you can access through your IATA LMS account.
2.3.2 Coding and De-Coding Three-Letter City and

Airport Codes
For cities that have more than one airport, there will be more than one three-
letter airport code.
What is the difference between a city and an airport code? Well some cities
have more than one airport, so each airport gets its own code, and the city itself
gets a code too. For example, LON is the city code for London, whereas LHR is
the airport code for London Heathrow, and LGW is the airport code for London
Gatwick.

The coding and de-coding of three-letter city codes is often easy. Many city
codes simply represent the first three letter characters in the city name: DEL for
Delhi, ROM for Rome, FRA for Frankfurt, BAH for Bahrain, SAO for Sao Paulo,
BOG for Bogota, BRU for Brussels, MAN for Manchester and many others.
Sometimes the city code is composed of the first letter of multiple word names,
like initials: for example POS for Port of Spain, or PAP for Port au Prince. The
same goes for airport names: DFW is for Dallas Fort Worth Airport in Texas.
Sometimes it is more difficult: AGP represents Malaga, YMQ is for Montreal,
LAX for Los Angeles, DXB for Dubai and KWI for Kuwait.
On airline tickets, airport codes are always displayed alongside reserved
flights, although only city codes are used to request air fare calculations. After
all, it is important to know from which airport in New York a passenger is
departing or at which airport in London the passenger is arriving. The air fares
are published between cities, irrespective of the airport from which one departs
or arrives.
Some airport codes can be easier to decode if one knows the airport name.
One of Tokyo's airports is named Narita with the code NRT. LGW represents
London Gatwick Airport, LHR for London Heathrow Airport, CDG for Charles
de Gaulle Airport in Paris and JFK for John Fitzgerald Kennedy Airport in
New York City.
Normally, when a city is served by only one airport, the three-letter airport code
is the same as the city code.
Memorizing all three-letter city and airport codes will be helpful to you in
studying this course and when you work in the travel industry. Study the
following tables of city and airport codes for your course examination as you
will be expected to place countries and cities (as well as oceans) on a blank
map. For countries listing more than one city, the capital is marked with an
asterisk.
2.3.2.1 City and Airport Codes in Europe
Country City City Code Airport Name Airport Code

Austria Vienna* VIE
Innsbruck INN
Belarus Minsk MSQ
Belgium Brussels* BRU
Antwerp ANR
Bulgaria Sofia SOF
Cyprus Nicosia* NIC
Larnaca LCA
Czech Rep Prague PRG
Denmark Copenhagen CPH
Finland Helsinki HEL
France Paris* PAR Charles de CDG
Gaulle Orly ORY
Marseille MRS
Nice NCE
Lyon LYS
Unit 2.3: Three-Letter City Codes 107


Germany Berlin* BER Tegel TXL
Schoenenfeld SXF
Frankfurt FRA
Munich MUC
Hamburg HAM
Dusseldorf DUS
Greece Athens* ATH
Thessaloniki SKG
Hungary Budapest BUD
Iceland Reykjavik REK Keflavik Int'l KEF
Ireland Dublin DUB
Italy Rome* ROM Fiumicino FCO
Milan MIL Linate LIN
Malpensa MXP
Naples NAP
Venice VCE
Kosovo Pristina PRN
Montenegro Podgorica TGD
Malta Valletta MLA
Moldova Chisinau KIV
Netherlands Amsterdam* AMS
Rotterdam RTM
Norway Oslo OSL
Poland Warsaw WAW
Portugal Lisbon* LIS
Porto OPO
Faro FAO
Romania Bucharest BUH Henri Coanda OTP
Russia Moscow* MOW Sheremetyevo SVO
(West of the St. Petersburg LED
Urals)
Serbia Belgrade BEG
Slovakia Bratislava BTS
Slovenia Ljubljana LJU
Spain Madrid* MAD
Barcelona BCN
Malaga AGP
Sweden Stockholm STO Arlanda ARN
Switzerland Berne* BRN
Zurich ZRH
Geneva GVA
Basle BSL
Ukraine Kiev IEV


United London* LON Heathrow LHR
Kingdom (England) Gatwick LGW
London City LCY
Luton LTN
Southend SEN
Stansted STN
Manchester MAN
(England)
Birmingham BHX
(England)
Edinburgh EDI
(Scotland)
Glasgow GLA
(Scotland)
Belfast BFS
(Northern
Ireland)
Table 2.3.1—Three-Letter City and Airport Codes for Europe
Study Check 2.3.2.1
1. What is the city code for each of the following city names?
(a) Vienna
(b) Warsaw
(c) Edinburgh
(d) Larnaca
(e) Oslo
2. In which country are the following cities?

(a) Prague
(b) Brussels
(c) Bucharest
(d) Istanbul
(e) Helsinki

2.3.2.2 City and Airport Codes for Africa

Algeria Algiers ALG
Angola Luanda LAD
Benin Cotonou COO
Botswana Gaborone GBE
Cameroon Yaounde* YAO
Douala DLA
Congo Brazzaville BZV
Congo (Demo- Kinshasa FIH
cratic Republic
of)
Côte d'Ivoire Yamoussoukro* ASK
Abidjan ABJ
Djibouti Djibouti JIB
Egypt Cairo* CAI
Alexandria ALY
Equatorial Malabo SSG
Guinea
Eritrea Asmara ASM
Ethiopia Addis Ababa ADD
Gabon Libreville LBV
Gambia Banjul BJL
Guinea Conakry CKY
Kenya Nairobi* NBO
Mombasa MBA
Lesotho Maseru MSU
Liberia Monrovia MLW
Libya Tripoli TIP
Madagascar Antananarivo TNR
Mali Bamako BKO
Malawi Lilongwe LLW
Mauritania Nouakchott NKC
Mauritius Port Louis MRU
Morocco Casablanca CAS Mohammed V CMN
International
Rabat* RBA
Marrakech RAK
Mozambique Maputo MPM
Namibia Windhoek WDH
Niger Niamey NIM
Nigeria Lagos LOS
Abuja* ABV
Rwanda Kigali KGL
São Tomé and São Tomé TMS
Principe
Senegal Dakar DKR
Seychelles Victoria SEZ
Sierra Leone Freetown FNA
Somalia Mogadishu MGQ


South Africa Johannesburg JNB
Pretoria* PRY
Cape Town CPT
Sudan Khartoum KRT
Eswatini Manzini MTS
Tanzania Dodoma* DOD
Dar es Salaam DAR
Togo Lomé LFW
Tunisia Tunis TUN
Uganda Entebbe EBB
Zambia Lusaka LUN
Zimbabwe Harare HRE
Table 2.3.2—Three-Letter City and Airport Codes for Africa
Study Check 2.3.2.2
1. Identify the country in which each city is found.

(a) Addis Ababa
(b) Mombasa
(c) Tripoli
(d) Dakar
(e) Harare
2. What is the three-letter city code for the following cities?

(a) Freetown
(b) Lusaka
(c) Windhoek
(d) Casablanca
(e) Abidjan

2.3.2.3 City and Airport Codes for Asia

The following table shows the list of country/cities that are located in Asia which
includes geographical East Asia, South Asia, West Asia, Middle East and
Eurasia.

Afghanistan Kabul KBL
Armenia Yerevan EVN
Azerbaijan Baku BAK
Bahrain Manama BAH
Bangladesh Dhaka DAC
Bhutan Paro PBH
Brunei Bandar Seri BWN
Begawan
Cambodia Phnom Penh PNH
China Beijing* BJS Beijing Capital PEK
Shanghai SHA Pu Dong PVG
Hong Kong (SAR) HKG
Macao (SAR) MFM
Chinese Taipei Chinese Taipei TPE
India Delhi* DEL
Mumbai BOM
Chennai MAA
Hyderabad HYD
Kolkata CCU
Indonesia Jakarta* JKT Soekarno Hatta CGK
Denpasar-Bali DPS
Iran Tehran THR
Iraq Baghdad BGW
Israel Tel Aviv TLV
Jerusalem* JRS
Japan Tokyo* TYO Narita NRT
Haneda HND
Osaka OSA Kansai KIX
Nagoya NGO
Jordan Amman AMM
Kazakhstan Astana* TSE
Almaty ALA
Korea North Pyongyang FNJ
Korea South Seoul SEL Incheon ICN
International
Kuwait Kuwait KWI
Kyrgyzstan Bishkek FRU
Laos Vientiane VTE
Lebanon Beirut BEY
Malaysia Kuala Lumpur KUL
Maldives Male MLE
Mongolia Ulaanbaatar ULN
Myanmar Yangon RGN
Nepal Kathmandu KTM
Oman Muscat MCT
Pakistan Islamabad* ISB
Karachi KHI
Philippines Manila MNL


Qatar Doha DOH
Russia (East of Khabarovsk KHV
the Urals)
Saudi Arabia Riyadh* RUH
Jeddah JED
Singapore Singapore SIN
Sri Lanka Colombo CMB
Syria Damascus DAM
Tajikistan Dushanbe DYU
Thailand Bangkok BKK
Timor Leste Dili DIL
Turkey Istanbul IST
Ankara* ANK Esenboga ESB
Turkmenistan Ashgabad ASB
United Arab Abu Dhabi* AUH
Emirates Dubai DXB
Uzbekistan Tashkent TAS
Vietnam Ho Chi Minh City SGN
Hanoi* HAN
Yemen Sanaa SAH
Table 2.3.3—Three-Letter City and Airport Codes for Asia
Study Check 2.3.2.3
1. Identify the county where each city is found.

(a) Beijing
(b) Islamabad
(c) Manama
(d) Chennai

(a) Mumbai
(b) Dhaka
(c) Damascus
(d) Kathmandu

2.3.2.4 Australasia and Pacific

Australia Sydney SYD
Canberra* CBR
Melbourne MEL
Perth PER
Fiji Nadi NAN
French Tahiti PPT
Polynesia
Kiribati Tarawa TRW
Marshal Majuro MAJ
Islands
Nauru Island Nauru INU
New Zealand Auckland AKL
Wellington* WLG
Christchurch CHC
Palau Koror ROR
Papua New Port Moresby POM
Guinea
Samoa Apia APW
Solomon Honiara HIR
Islands
Tonga Nuku'Alofa TBU
Tuvalu Funafuti FUN
Vanuatu Port Vila VLI
Table 2.3.4—Three-Letter City and Airport Codes for Australasia and Pacific
Study Check 2.3.2.4
1. In which country are the following cities located?

(a) Nadi
(b) Tahiti
(c) Perth
(d) Wellington

(a) Port Moresby
(b) Christchurch
(c) Suva
(d) Melbourne

2.3.2.5 City and Airport Codes for North America
Country City City Code Airport Name Airport

Code
Antigua and St. John's ANU
Barbuda
Bahamas Nassau NAS
Barbados Bridgetown BGI
Bermuda Hamilton BDA
Canada Halifax YHZ
Ottawa* YOW
Montreal YMQ Pierre Elliott Trudeau YUL
Toronto YTO Pearson International YYZ
Calgary YYC
Vancouver YVR
Cuba Havana HAV
Dominica Dominica DOM
Dominican Santo Domingo SDQ
Republic
Greenland Nuuk GOH
Grenada Saint Georges GND
Haiti Port au Prince PAP
Jamaica Kingston KIN
Mexico Mexico City* MEX
Acapulco ACA
Puerto Rico San Juan SJU
St. Kits and Basseterre SKB
Nevis
Saint Lucia Castries SLU
St. Vincent Kingstown SVD
and the
Grenadines
Trinidad Port of Spain POS
& Tobago

Country City City Code Airport Name Airport

Code
United States Anchorage ANC
of America
Atlanta ATL
Boston BOS
Chicago CHI O'Hare ORD
Dallas DAL Dallas/Fort Worth DFW
International
Detroit DTT Wayne County DTW
Houston HOU Hobby HOU
George Bush IAH
Los Angeles LAX
Miami MIA
New Orleans MSY
New York City NYC John F Kennedy JFK
La Guardia LGA
Newark EWR
Orlando MCO
Salt Lake City SLC
San Francisco SFO
Washington D.C.* WAS Dulles International IAD
Ronald Reagan DCA
National
Table 2.3.5—Three-Letter City and Airport Codes for North America
Study Check 2.3.2.5
1. What is the airport code for the following?

(a) Montreal, Pierre Elliott Trudeau
(b) Washington, Dulles International
(c) New York, Newark
(d) Chicago, O'Hare
(e) Detroit Wayne County
(f) Houston, Hobby
(g) Toronto, Pearson
(h) Washington, Ronald Reagan National
2. Which group of airports is located on the North American west (Pacific)

coast?
(a) SFO, LGA, YVR
(b) BOS, MCO, MEX
(c) DCA, MSY, SLC
(d) HAV, BGI, NAS
(e) LAX, SFO, YVR
(f) YOW, YUL, YYZ

3. Which city is located on an island in the Caribbean Sea?

(a) SAL
(b) HAV
(c) BCV
(d) MEX
(e) BDA
2.3.2.6 City and Airport Codes for Central America

Belize Belmopan BCV
Costa Rica San Jose SJO
El Salvador San Salvador SAL
Guatemala Guatemala City GUA
Honduras Tegucigalpa TGU
Nicaragua Managua MGA
Panama Panama City PTY
Table 2.3.6—Three-Letter City and Airport Codes for Central America
Study Check 2.3.2.6
1. What is the 3-letter city code for the following cities?

(a) Managua
(b) Tegucigalpa
(c) San Jose
(d) Guatemala City

(a) Panama City
(b) Belmopan
(c) Managua
(d) San Salvador

2.3.2.7 City and Airport Codes for South America

Argentina Buenos Aires BUE Ezeiza Ministro EZE
Pistarini
Bolivia La Paz LPB
Brazil Brasilia* BSB
Rio de Janeiro RIO Galeão GIG
International
Sao Paulo SAO Guarulhos GRU
International
Chile Santiago de Chile SCL
Colombia Bogota BOG
Ecuador Quito* UIO
Guayaquil GYE
French Cayenne CAY
Guiana
Guyana Georgetown GEO
Paraguay Asunción ASU
Peru Lima LIM
Suriname Paramaribo PBM
Uruguay Montevideo MVD
Venezuela Caracas CCS
Table 2.3.7—Three-Letter City and Airport Codes for South America
Study Check 2.3.2.7
1. What is the three-letter code of the airport of Ministro Pistarini in Buenos

Aires?
(a) EZE
(b) BZE
(c) BOG
(d) BUE
2. What is the three-letter code for the following cities?

(a) La Paz
(b) Bogota
(c) Quito
(d) Brasilia
(e) Santiago de Chile
(f) Lima
(g) Montevideo
(h) Caracas


(a) Paramaribo
(b) Asunción
(c) Montevideo
(d) Cayenne
(e) São Paulo
(f) Buenos Aires
(g) Bogota
(h) Guayaquil
4. Which city is located on South America's eastern (Atlantic) coast?

(a) Quito
(b) Rio de Janeiro
(c) Bogota
(d) Asunción
Key Learning Point

Three-letter city and airport codes make travel planning more efficient by
allowing the travel industry to have a short-hand system to identify cities and
airports.
Apply Your Learning

Keep in my mind that travel customers are often not familiar with city and
airport codes. Do not use code or travel jargon when communicating with
customers. By learning city/airport codes you will make travel bookings faster
and provide a higher level of customer service to your clients.
2.3.3 Unit Summary

Knowledge of city codes is necessary when selling and booking travel
arrangements (Section 2.3.1). Decoding city codes can be easy especially
when the code represents the first letters of the city name. However, other
codes may be more difficult to decipher. To be sure of their meaning, use
official references such as the extract shown in this Module or the full list in the
Passenger Air Tariff General Rules book (Section 2.3.2).

2.4 Planning Travel Itineraries
• Explain the basics of qualifying the customer (Section 2.4.1).

• Explain the basics of planning air itineraries (Section 2.4.2).
• Identify resources for developing travel itineraries (Section 2.4.3).
Unit Learning
By completing this Unit, In this Unit you will learn about planning travel itineraries by following basic
you will be able to: guidelines in five categories that include pace, interests, details, energy and
routing. You will also review resources for helping you develop travel
itineraries.
2.4.1 Qualifying the Customer

The process of qualifying the customer begins by determining if a prospect
customer has the ability and motivation to purchase travel services. Then the
travel agent needs a lot more information to make an offer.
This involves mapping out a route, establishing distances and travel times and
deciding which activities to recommend during your customer's journey.
Planning itineraries is an essential function for a professional travel agent and
is an effective way to gain customer trust. Once you have planned an effective
itinerary for a customer and the trip runs smoothly and according to plan, the
customer will be more likely to use your services in the future. Happy
customers are also more likely to refer you to their friends and business
associates, thereby generating additional revenue.
Here are some basic guidelines that can be broken down into five categories:
Pace, Interests, Details, Energy and Routing.
A detailed explanation of these categories is as follows:
• PACE: Pacing refers to the speed of the activities in an itinerary. Providing
a comfortable pace for customers is essential to their enjoyment of the trip.
Setting a pace that is too rapid can overburden customers and decrease
their enjoyment. A customer's age and health should also be considered.
Generally younger and healthier customers can move at a faster pace.
Finally, any disabilities need to be evaluated when determining an
itinerary's pace.
• INTERESTS: Add trip value by matching the client's interests with
corresponding activities and attractions along the way. To do this effec-
tively, talk to your customers and listen carefully to the types of activities
and the manner in which they describe their interests. It is helpful to
provide a balance by planning some variety into the trip. To do this,
schedule a mix of recreational activities, educational activities and “frivol-
ous activities” into the basic itinerary. Determining and matching interests
take practice and destination expertise, but the extra effort it takes to
practice and learn will be rewarded in the form of customer satisfaction.
• DETAILS: No matter how clever an itinerary you put together for your
customer, if you do not pay attention to the details, the itinerary may be a
failure. Details include checking to make sure attractions on your itinerary
are open when your customer arrives, reconfirming all ground handlers
and transport and even checking with your customers to make sure they
have made all necessary preparations including packing their passports
and filling all essential prescriptions. Paying attention to detail may seem

tedious, but imagine how embarrassing it would be to schedule a

customer's visit to the Louvre in Paris on Tuesday, only to learn that the
museum is closed on that day.
• ENERGY: Finally, matching the energy level of the customer with the
intensity and pace of the itinerary is another way to assure the overall
success of the trip. When considering this aspect, it is important to take
note of how much walking certain destinations require, whether or not the
customer is traveling alone or with a family that includes small children and
what type of travel experience the customer is looking for. A traveler in
search of a quiet beach vacation may not appreciate four scheduled
activities per day. Get a sense of your customers' energy level, listen to
what they tell you they want, and then match the itinerary based on your
observations and experience.
• ROUTING: Plan an interesting and efficient routing for your customer.
Ideally the route should be both scenic and practical. Whenever possible,
avoid back-tracking, doubling back or routing a customer in circles. This is
particularly important when arranging itineraries for corporate customers
because the routing should be built around the individual's business
appointments. It is important to listen carefully to customers' plans and help
them assess if the plan is realistic within the framework of geography.
Once a customer has been properly qualified, it is time to plan the customer's
travel itinerary. Part of this process involves:
• assessment of the most efficient routes to maximize time
• identification of destinations
• booking air and ground transportation
Key Learning Point

A good rule of thumb for determining pace for self-driving customers is not to
exceed 240 kilometers (150 miles) per day. Also, allowing for rest stops and
sightseeing along the way can improve the customer's enjoyment of the trip.
2.4.2 Planning Air Itineraries

The term “itinerary” may be defined as the line(s) of travel, linking points in a
passenger's journey, beginning with the point of departure, followed by those
points traversed in the journey itself and ending at the destination point.
Time spent on careful and detailed planning of an itinerary is never wasted.
You might have to plan a route that includes places unfamiliar to you, or take
into consideration the fact that certain passengers may not travel via some
countries, while yet others will want to reach their destination by a specific time.
Bear these in mind in order to produce the most practical itinerary in
accordance with the passenger's desires.
Unit 2.4: Planning Travel Itineraries 121

2.4.2.1 Basic Planning

When planning the itinerary for the passenger, remember always to observe
the following steps:
• Establish the places the passenger wishes to visit.
• Consider the customer's budget. How much money to spend influences not
only where to go but how many places to visit.
• Establish the order in which the passenger wishes to visit them.
• Link the cities in such a way as to avoid doubling back and zigzagging
(unless absolutely necessary) while at the same time meeting any special
request made by the passenger.
• Take account of political situations, geographical limitations and the
practicality of the transport options.
• Make certain that convenient air/sea/rail or road connections exist and,
where possible, choose the quickest.
• Plan your itinerary methodically, using a form such as the one shown on
the following page.
• Be prepared to provide alternatives in case the passenger changes his or
her mind or, when unexpected circumstances arise which will prevent the
itinerary proceeding as originally planned. Your initial notes and calcu-
lations can often help in this regard and should therefore always be
retained.
2.4.2.2 Creating a Travel Itinerary Dossier

Planning pro-forma entails supplying details about the itinerary in advance.
There are many apps and templates available online that allow you to keep the
many different and important trip details for your client in one place. Details like
confirmation numbers, frequent flyer number, flight times, meeting hours and
locations, car rental and hotel locations, and more.

It is organized in a way that flows nicely with the actual trip: leaving on a flight,
renting a car once the passenger arrives, checking in at hotels, meetings and
events and then flying back home. It is an effective tool when planning a trip for
the client.
Figure 2.4.1—Trip details viewed on mobile device after completion of the online
form (Source: www.tripit.com)
Form Completion
There are many templates available in Word or Excel where aside from travel
details, hyperlinks can be added so you can provide a link to maps, weather
forecast or the flight's check-in page. After preparing, you can send the file to
the client who can save the spreadsheet or document into a mobile device so
that they can access it easily. Alternatively, you may also want to print a paper
copy just in case.
On the following page you will find a blank sample template that can be in
paper or electronic format. Note that this form contains several areas of
information that will be covered in other Modules of this course.
Here is a sample of how a form can be completed (in italic characters) for the
example case of Mr. J. Golay, a Swiss citizen, who is leaving Geneva for Los
Angeles and will be flying via London and New York. He will be staying two
nights in London and one night in New York. He will be returning to Zurich.
Geneva-London will be flown on 14 August, London-New York on
16 August, New York-Los Angeles on 17 August, and Los Angeles-Zurich
on 29 August.
When completing an itinerary Pro-Forma, take care not to use industry codes
or abbreviations that travel customers may not know. Include all details in the
clearest possible manner. This will greatly assist any other agency colleague
who may have to service the customer at a later date and it will be user-friendly

to the customer if the agency policy is to give a copy of the itinerary to the
customer.
In cases where the complete itinerary cannot be described in one customer
Pro-Forma, use another Pro-Forma for the additional information.
ITINERARY FOR Prepared by:

MR/MRS/MISS ABC TRAVEL CO.
2 PLACE VERMONT
ADDRESS 1202 GENEVA
POSTAL CODE TEL. NO. 737.13.71

CITY
TELEPHONE HOME WORLD-WIDE
BUSINESS TRAVEL EXPERTS
DATE OF BOOKING 1st CONTACT DATE METHOD: PHONE, PERSONAL VISIT,
LETTER, EMAIL, OTHER:
FROM DAY DATE LOCAL FLIGHT CLASS REMARKS/HOTELS

CITY/AIRPORT TIME NO. CONTACTS, ETC.
DEP
TO
ARR
DEP
TO
ARR
DEP
TO
ARR
DEP
TO
ARR
DEP
VALID PASSPORT FARE
ENTRY VISA/RE-ENTRY PERMIT
TRANSIT VISA FOR
OTHER DOCUMENTS TICKET/VOUCHER NUMBERS
REQUIRED VACCINATIONS O CHOLERA PAYMENT DETAILS

O YELLOW FEVER
RECOMMENDED PREVENTIVE TREATMENT
TAX(ES)
PNR AIRPORT TAX(ES)
Figure 2.4.2—Sample Pro-Forma (Blank)

ITINERARY FOR Mr Jean GOLAY Prepared by:

MR/MRS/MISS ABC TRAVEL CO.
2 PLACE VERMONT
ADDRESS 18, avenue Neuve 1202 GENEVA
CAROUGE
POSTAL CODE 1227 TEL. NO. 737.13.71
CITY GENEVA
TELEPHONE HOME 725 25 96 WORLD-WIDE
BUSINESS 379 42 42 TRAVEL EXPERTS
DATE OF BOOKING 1st CONTACT DATE METHOD: PHONE, PERSONAL VISIT,
LETTER, EMAIL, OTHER:
14 JUL PHONE
FROM (CITY/AIRPORT) DAY DATE LOCAL FLIGHT CLASS REMARKS/HOTELS
TIME NO. CONTACTS, ETC.
GENEVA DEP SAT 14AUG 0750 BA2735 C
TO LONDON
GATWICK ARR SAT 14AUG 0820 GATWICK HILTON
HEATH- DEP MON 16AUG 0905 VS003 F
ROW
TO NEW YORK
J F KEN- ARR MON 16AUG 1405 MARRIOT NEWARK
NEDY
NEWARK DEP TUE 17AUG 1000 UA333 F
TO LOS ANGELES
ARR TUE 17AUG 1259 DOWNTOWN HILTON
DEP SUN 29AUG 2050 LX 41 F
TO ZURICH
ARR MON 30AUG 1655
DEP
VALID PASSPORT YES, EXPIRES DEC FARE
GVA-LON-LAX-ZRH
ENTRY VISA/RE-ENTRY PERMIT US VISA NEEDED - OK VALID F RT
TRANSIT VISA FOR NONE
OTHER DOCUMENTS NONE TICKET/VOUCHER NUMBERS
REQUIRED VACCINATIONS O CHOLERA PAYMENT DETAILS

O YELLOW FEVER
RECOMMENDED PREVENTIVE TREATMENT NONE
TAX(ES)
PNR Q5NV85 AIRPORT TAX(ES)
Figure 2.4.3—Sample Pro Forma (Completed)

2.4.2.3 Examples of Itineraries

Below you will find two sample itineraries intended to demonstrate the logic to
be used in itinerary planning.
Example 1:
Imagine that your customer is planning a trip from Caracas (CCS) to the cities
listed here in alphabetical order and back to Caracas:
• BSB Brasilia
• BUE Buenos Aires
• LIM Lima
• MAO Manaus
• REC Recife
• RIO Rio de Janeiro
• SCL Santiago
Here are two possible approaches, in which the flights may be planned in any
direction:
Figure 2.4.4
Example 2:
Plot the routing for the following journey on the map below presuming all flights
to be direct:
Departure from and return to Paris. Cities, in alphabetical order, to be visited:
• ATH (Athens)
• BEG (Belgrade)
• GVA (Geneva)
• LON (London)
• MAD (Madrid)
• OSL (Oslo)

• STO (Stockholm)
• VIE (Vienna)
Figure 2.4.5
Both the following solutions are possible. You should compare these with your
own ideas.

Figure 2.4.6
Figure 2.4.7

Key Learning Point

Time spent on careful and detailed planning of an itinerary is essential to
ensure the most practical itinerary in accordance with the customer's needs.
Study Check 2.4.2
1. An itinerary may be defined as:

(a) A passenger's meal requirements.
(b) A passenger's frequent flyer record.
(c) A passenger's line(s) of travel beginning with a point of departure and
ending at the destination point.
(d) A passenger's entertainment preferences.
2. When planning an itinerary for a passenger, which of the following is not a

step in the process?
(a) Establish the places the passenger wishes to visit.
(b) Establish the order in which the passenger wishes to visit them.
(c) Link the cities in such a way as to ensure doubling back and
zigzagging.
(d) Plan the itinerary methodically.
3. When completing an itinerary Pro-Forma, avoid using codes and abbrevi-

ations. TRUE or FALSE?
(a) True
(b) False
4. In the sample itinerary for figures 2.4.5 and 2.4.6, which of the following is
another routing option?
(a) PAR, MAD, GVA, ATH, OSL, BEG, VIE, STO, LON, PAR
(b) PAR, MAD, GVA, ATH, BEG, VIE, STO, OSL, LON, PAR
(c) PAR, VIE, STO, OSL, BEG, ATH, LON, MAD, GVA, PAR
(d) PAR, VIE, OSL, ATH, STO, LON, MAD, GVA, BEG, PAR
Apply Your Learning

Practice charting itineraries by selecting 10 different cities. Use a map and a
pencil to experiment with line-drawing different itineraries. Frequent practice
with the development of itineraries will increase your skills.

2.4.3 Resources for Research

Planning an itinerary is actually quite simple.
The first resource is the theme of this Module—a thorough understanding of
travel geography.
Of course the best way to gain knowledge of travel itineraries is to travel to the
destination. Unfortunately, there is simply no way to visit every possible
destination that your customers may travel to. But then there are great
resources available for travelers online, in the internet, in bookstores, and even
on television. A guide book will help enormously with itinerary planning (more
info on choosing a good guide book will come later).
By doing some research, you can find out not only what the interesting things
are to see in a city, but also the transportation connections, hotel costs, border
crossings, and other need-to-know information. LonelyPlanet.com, Trip Advisor
and travel blogs are one of the many online resources that you can check.
Consider searching for traveler's blogs that often provide insight into specific
locations. Blogs are particularly helpful when traveling off the beaten path to a
destination that is not as popular. A number of useful Internet sites can be
found in the Appendix of this Module.
Therefore, consider using the following resources:
• CUSTOMERS: Follow up with your current customers and find out how
their trips were. Feedback, both positive and negative, can be a valuable
source of information. Consider developing a database of customers and
making notes about their experiences in the database.
• TRAVEL GUIDEBOOKS: Libraries and bookstores carry large numbers of
travel guidebooks. Many of these guidebooks are quite helpful to travel
agents. Some guides to consider are Michelin, Fielding, Fodor, Frommer,
Birnbaum, Lonely Planet and the Blue Guides.
• NATIONAL & REGIONAL TOURIST BOARDS: Governmental tourist
boards and offices offer a tremendous variety of useful information to the
travel agent. You will be able to gather information about the history,
culture, geography, transport system, lodging, museums, special events
and local currency. Many of these boards will send you professional
brochures, posters, videos etc. that can be used in your sales process.
• TRAVEL MAGAZINES and SPECIALTY JOURNALS: Subscribe to or use
local libraries to locate interesting travel articles. There are dozens of
excellent publications, including Conde Nast traveler, National Geographic,
Travel and Leisure and Travel Holiday. In addition, there are a number of
excellent specialty magazines that focus on a particular aspect of travel
such as scuba diving, skiing or boating.
For example, Museum News published an entire issue devoted to cultural
tourism.
• TRAVEL INDUSTRY ORGANIZATIONS: Industry organizations are
extremely useful sources of information to the professional travel agent.
Examples of these include CLIA (Cruise Line International Association)
PSA, ASTA, ARTA, ICTA, the Travel and Tourism Research Association,
Adventure Travel Society, Ecotourism Society, Dive Travel Industries
Association and the Fishing Travel Industry Association.

• TRAVEL TRADE JOURNALS: Publications including Travel Weekly,

Travel Agent and Travel Age are designed specifically for the professional
travel agent. Consider subscribing to a national travel industry trade
publication.
• WHOLESALE TRAVEL SUPPLIERS: Many tour and ground operators
offer publications for specific destinations and countries that describe land
services, rates for accommodations, sightseeing and excursions, transfers,
meals and other items.
Study Check 2.4.3
1. Planning itineraries is an essential function for a professional travel agent

and is an effective way to gain customer trust. TRUE or FALSE?
(a) True
(b) False
2. A good rule of thumb for determining the pace of self-driving customers is

not to exceed the following number of miles per day:
(a) 225
(b) 150
(c) 175
(d) 75
3. Ideally when planning a customer's itinerary, the route should be both:

(a) Interesting and efficient
(b) Scenic and practical
(c) Both a and b
4. Which of the following categories should be considered when planning a

travel itinerary for a customer?
(a) Interests
(b) Details
(c) Energy
5. Paying attention to details is important when it comes to planning a

customer's itinerary. The following are examples of these types of details:
(a) Reconfirming ground handlers
(b) Checking availability of attractions
(c) Checking with customers to make sure they have their passports

Apply Your Learning

You will want to start practicing how to ask questions to get valuable
information from potential travel customers. Pick two or three close friends or
business colleagues and ask them about their past vacations and travels.
2.4.4 Unit Summary

Planning travel itineraries is made easy by following basic guidelines in five
categories, which include pace, interests, details, energy, and routing
(Section 2.4.1). The term «itinerary» means the line(s) of travel, linking points
in a passenger's journey. It starts with the point of departure followed by those
points traversed in the journey itself (Section 2.4.2). There are many resources
to help you develop travel itineraries but an overarching knowledge of
geography remains key (Section 2.4.3).

2.5 World Time Zones and Elapsed Travel Times
• Learn about the 24-hour clock (Section 2.5.1).

• Understand the importance of world time zones (Section 2.5.2).
• Learn about the International Dateline and how to calculate elapsed travel
times between selected destinations (Section 2.5.3).
Unit Learning
Objectives
2.5.0 Unit Overview
you will be able to: In this unit, you will learn about the 24-hour clock and its importance in planning
travel itineraries. You will learn to understand the importance of world time
zones when planning itineraries and how to calculate time differences around
the world. You will read several examples that illustrate how to calculate time
differences and elapsed travel times between countries. Finally, you will learn
about the International Dateline and how it affects time differences.
2.5.1 Examining the 24-Hour Time Clock

The conventional time clock expresses time as a function of 12-hour intervals
with corresponding a.m. and p.m. designations. Although this method of telling
time is used commonly throughout the world, it has significant shortcomings,
particularly when applied to travel itineraries.
As a result, the travel industry uses a 24-hour time clock to eliminate confusion
over a.m. and p.m. distinctions and to facilitate easier calculation of elapsed
travel times, which will be discussed in the following Units.
The 24-hour clock begins each day at 00:00 (midnight) and progresses through
each hour of the day from 01:00 (1:00 a.m.) to 23:00 (11:00 p.m.).
The first two digits (before the colon) give the hour and the last two digits (after
the colon) give the minutes. For example, 03:30 corresponds to 3:30 a.m. by
the standard time clock, and 18:30 corresponds to 6:30 p.m. by the standard
time clock.
Figure 2.5.1—24-Hour Clock System vs. the 12-Hour System
Unit 2.5: World Time Zones and Elapsed Travel Times 133
2.5.2 World Time Zones

In 1884, the world's major nations agreed to create a series of standardised
time zones. The world is now divided into 24 time zones, beginning with the
prime meridian in Greenwich, England. The prime meridian is an imaginary line
running through Greenwich that connects the north and south poles. The time
at Greenwich and all other countries in this zone is called Greenwich Mean
Time (GMT) and is also referred to as Universal Time Coordinated (UTC).

Figure 2.5.2—Time Zones of the World
The time in all other zones can be expressed by referring to Greenwich Mean
Time or Universal Time Coordinated. The sign + (for plus) and - (for minus) are
used in this context having the following application:
• GMT + 1 (or UTC + 1) = 1 hour ahead of GMT/UTC
• GMT - 1 (or UTC - 1) = 1 hour behind of GMT/UTC
Up to GMT/UTC + 12 and GMT/UTC - 12.
This diagram illustrates a scale of hours relative to GMT/UTC.
Figure 2.5.3—Scale of Hours
Each of the blocks represents one hour. When trying to work out the difference
between two points on the scale, count the number of hours between them.
This theoretical system has had to be adapted, in certain cases, in order to
maintain the same local time with national boundaries or groups of islands.
Such local time, fixed by law, is called Standard Clock Time or Standard Time.
Certain countries modify their standard time during the summer by advancing
one hour (or a fraction of an hour in some areas). This temporary change is
called Daylight Saving Time (DST).
An international time chart is provided in this unit to help you assess time
conversion between different time zones.
It lists all countries, with an indication against each country of its standard time
in relation to GMT/UTC.
In countries where Daylight Saving Time applies during certain periods of the
year, such time is specified together with the periods during which it applies.
Standard Clock Time is expressed in hours fast (+) or slow (-) of GMT/UTC.
All examples and exercises in this Unit are based on these extracts.
The following examples illustrate this time system:
Example 1
What is the local time in Addis Ababa (ADD), Ethiopia when it is 12:00 hours
GMT?
In Ethiopia the standard time is GMT + 3 all year round. This means that the
local time is 3 hours ahead of GMT. The local time in Addis Ababa is
15:00 hours when it is 12:00 hours GMT.
Figure 2.5.4

Example 2
What is the local time in Caracas (CCS), Venezuela on 1st August when it is
12:00 hours GMT?
The chart indicates that in Venezuela the standard time of GMT - 4:30 applies
all year. Local time on 1st August is 4 hours behind GMT and it is therefore,
07:30 hours in Caracas when it is 12:00 hours GMT.
Figure 2.5.5


Figure 2.5.6—Time Conversion Chart
Example 3
What is the local time in Bucharest (BUH), Romania on 10th July when it is
12:00 hours GMT?
Here, it is indicated that in Romania the daylight saving time of GMT + 3
applies during the period from 1st April to 30th September. Therefore, the local
time is 3 hours ahead of GMT, meaning that it is 15:00 hours in Bucharest
when it is 12:00 hours GMT.
Figure 2.5.7
Example 4
In everyday work, it is often necessary to determine time differences between
two places neither of which is on GMT.
For instance, what is the local time in Frankfurt (FRA), Germany when it is
15:00 hours local time in Tokyo (TYO), Japan on 20th March?
In Germany, on 20th March the local time corresponds with standard time, that
is GMT + 1.
In Japan, the local time is GMT + 9.
This means that the local time in Frankfurt is 8 hours (9 minus 1 = 8) behind
that of Tokyo and it is, therefore, necessary to subtract 8 hours from the local
time in Tokyo (15:00 hours) to arrive at the local time in Frankfurt, that is,
07:00 hours on the same day.
Figure 2.5.8
Example 5
What is the local time in Rome (ROM), Italy when it is 02:00 in La Paz (LPB),
Bolivia on 24th March?
On that date, the local time in Italy is GMT + 1 (standard time).
In Bolivia the local time is GMT - 4.
This means that the local time in Italy is 5 hours (1 plus 4 = 5) ahead of that of
Bolivia. It is therefore necessary to add 5 hours to the local time in La Paz
(02:00) to arrive at the local time in Rome, that is, 07:00 on the same day.

Figure 2.5.9
Example 6
What would the local time in Rome be on 15th June when it is 02:00 in La Paz?
On that date, the local time in Italy is GMT + 2, since daylight saving time
applies from 31st March to 26th October.
The local time in Bolivia remains at GMT - 4.
This means that the local time in Italy would be 6 hours (2 plus 4 = 6) ahead of
that of Bolivia. It is therefore necessary to add 6 hours to the local time in La
Paz (02:00) to arrive at the local time in Rome, that is 08:00 on the same day.
Figure 2.5.10
In very large countries where territories spread over several time zones, such
as Australia, Brazil, Canada, Greenland, Indonesia, the Russian Federation,
and the USA, several different standard times have been established for
application in determined areas or states. The names of these multi-time zone
countries are followed in the time conversion chart by two asterisks (**).
Example 7
In the USA the standard time is GMT - 5 in the Eastern Time Zone, whereas it
is GMT - 8 in the Pacific Time Zone.
Figure 2.5.11
http://hawaii.hawaii.edu/math/Courses/Math100/Chapter3/Notes/
TimeZonesUSA.htm
The same variations generally apply with respect to the daylight saving time, if
any.

North American time zones from Some major destination cities

east to west
Atlantic Halifax (YHZ)
Charlottetown (YYG)
San Juan (SJU)
Eastern Atlanta (ATL)
Boston (BOS)
Detroit (DTT)
Kingston (KIN)
Miami (MIA)
Montreal (YMQ)
Nassau (NAS)
New York City (NYC)
Orlando (MCO)
Ottawa (YOW)
Toronto (YTO)
Washington DC (WAS)
Central Acapulco (ACA)
Chicago (CHI)
Dallas (DAL)
Houston (HOU)
Mexico City (MEX)
New Orleans (MSY)
Mountain Calgary (YYC)
Salt Lake City (SLC)
Pacific Los Angeles (LAX)
San Diego (SAN)
San Francisco (SFO)
Vancouver (YVR)
Note: Airlines' schedules are always published in Local Time. The time
variation from GMT/UTC of each city is specified in airline timetables.
Figure 2.5.12
The time difference between two points can be determined as follows:

(a) If the local time at both points is ahead of GMT (GMT +) or behind GMT
(GMT -), deduct the smaller from the larger figure.
Example 8
GMT + 2 and GMT + 10
10 minus 2 = 8 hours time difference
Figure 2.5.13
(b) If the local time is ahead of GMT (GMT +) at one point and behind GMT
(GMT -) at the other, add both figures together.
Example 9
GMT + 2 and GMT - 5
2 plus 5 = 7 hours time difference
Figure 2.5.14
Example 10
The local time in Tokyo (TYO), Japan is 18:30 hours on the 1st of March. What
is the local time and date in Sydney (SYD), NS, Australia?
TYO GMT + 9
SYD New South Wales GMT + 11 (Daylight Saving
Time)
As the local time at both points is ahead of GMT (GMT +) deduct the smaller
from the larger figure.
SYD GMT + 11
TYO GMT + 9
Difference: 2 hours
The local time in Sydney is 2 hours ahead (+) of Tokyo.
18:30 hours + 2 hours = 20:30 hours on the same day (1st March).

Figure 2.5.15
Example 11
The local time in Buenos Aires (BUE), Argentina is 15:25 hours on 22nd May.
What is the local time and date in Honolulu (HNL), Hawaiian Islands, USA?
BUE GMT - 3
HNL Hawaiian Islands GMT - 10 (Standard Clock Time)
As the local time at both points is behind GMT (GMT -), deduct the smaller from
the larger figure.
HNL GMT - 10
BUE GMT - 3
Difference: 7 hours
The local time in Honolulu is 7 hours behind (-) Buenos Aires.
15:25 hours - 7 hours = 08:25 hours on the same day (22nd May).
Figure 2.5.16
Example 12
The local time in Madrid (MAD), Spain is 05:00 hours on 30 November. What is
the local time and date in Vancouver (YVR), BC, Canada?
MAD GMT + 1
YVR Pacific Time GMT - 8
As the local time is ahead of GMT (GMT +) at one point and behind GMT
MAD GMT + 1
YVR GMT - 8
Difference: 9 hours
The local time in Vancouver is 9 hours behind (-) Madrid.
05:00 hours - 9 hours = 20:00 hours on the previous day (November 29th).
Figure 2.5.17
Example 13
The local time in Santiago (SCL), Chile is 20:25 hours on 15th February. What
is the local time and date in Karachi (KHI), Pakistan?
SCL GMT - 3 (Daylight Saving Time)
KHI GMT + 5
SCL GMT - 3
KHI GMT + 5
Difference: 8 hours
The local time in Karachi is 8 hours ahead of (+) Santiago.
20:25 hours + 8 hours = 04:25 hours on the next day (16th February).
Figure 2.5.18
2.5.3 International Dateline

Crossing the International Dateline makes the calculation of time differences
between countries more complicated, because travelers either gain or lose a
day during the process. When a customer crosses the International Dateline
traveling west, the day changes to the following day—Wednesday would
immediately becomes Thursday. Traveling the opposite direction has the
opposite effect. So a customer crossing the International Dateline going east
gains a day—in other words, Thursday becomes Wednesday. It should be
noted that the time of day (except at midnight) means nothing. A customer
could cross the dateline at 15:00 or 02:00 and it has no effect on time of day.
The only difference is the date—the hour remains the same.
The International Dateline is an imaginary north-south line through the Pacific
Ocean, east and west of which the date differs (east being one day earlier).

Figure 2.5.19—International Date Line
Figure 2.5.20
The International Dateline must be considered as a wall which cannot be

crossed when calculating time differences. All calculation must always be done
by using the GMT/UTC Time Zone as the reference.
The following example should help clarify matters. If your customers depart on
Tuesday morning and travel from Honolulu to Tokyo, they would arrive after a
nine-hour flight. But it would be Wednesday in Tokyo because they crossed the
International Dateline. Conversely, if they leave from Tokyo on Sunday
morning and return to Honolulu, they will arrive on Saturday because now they
crossed the dateline traveling west to east.
However, if customers depart later in the day and cross the dateline, matters
can be trickier. For example if customers leave Honolulu at 23:00 for Tokyo on
Thursday it becomes Friday one hour after departure from Honolulu (23:00,
Thursday plus one hour flying time = midnight which changes Thursday to
Friday), and they have not even crossed the dateline yet. Later on the flight, on
Friday, they cross the dateline and instantaneously it becomes Saturday! So
the customers who left Honolulu mid-week (Thursday) arrive Tokyo on the
weekend (Saturday) after a 9-hour flight. These types of time change
considerations are particularly important to the business traveler who must do
business during normal business hours.
Although these types of calculations can be complicated, most airline sched-
ules give arrival times that are already adjusted for time-zone crossings and
gained or lost days. Also a travel agent's computerized reservation system
(GDS) will list the elapsed flying times of scheduled flights as do many online
flight schedules displayed on the Internet.
Read the following examples. They will give you a better understanding of
calculating time differences involving the International Dateline.

Example 1
The distance between Nadi (NAN), Fiji and Honolulu (HNL) United States
5,111 km, but when it is Monday in Nadi, it is Sunday in Honolulu. The time
difference between these two islands is 22 hours.
NAN GMT + 12
HNL GMT -10
Difference: 22 hours
The local time in Nadi is 22 hours ahead of Honolulu
Figure 2.5.21
When the local time in Nadi, is 03:00 on Monday, the local time in Honolulu is
02:00 on the previous day, that is, Sunday.
Nadi and Honolulu are separated by the International Dateline. When
calculating the time difference between these two cities, the International
Dateline cannot be crossed. The calculation must be done using GMT/UTC.
When the dateline is crossed eastbound, for example from Nadi to Honolulu on
Monday, a day is “gained” as the arrival in Honolulu will take place on Sunday.
Thus aircraft crossing the International Dateline while flying eastbound over the
Pacific Ocean could reach their destination on the day before their departure:
For example, the flight Air Pacific FJ 820 has an effective flying time of 6 hours
30 minutes and with a departure from Nadi (NAN), Fiji on Sunday at 15:10
produces an arrival in Honolulu (HNL) United States on Sunday at 00:40.
Trans-Pacific flights leaving Japan or New Zealand in the evening arrive on the
West Coast of the United States on the afternoon of the same day:
For example, flight Japan Airlines JL 064 on 21st May has an effective flying
time of 9 hours 45 minutes with a departure from Tokyo (NRT), Japan on
Thursday at 21:30 hours, which produces an arrival in Los Angeles (LAX), USA
on Thursday at 15:15 hours.
Example 2
Although Tahiti (PPT) is not very far from Auckland (AKL), New Zealand, there
is a time difference of 22 hours, in July for example:
PPT GMT - 10
AKL GMT + 12 (Standard Time)
PPT GMT - 10
AKL GMT + 12
Difference: 22 hours
The local time in Tahiti is 10:00 hours on Monday; the local time in Auckland is
08:00 hours on Tuesday.
Figure 2.5.22
Tahiti and Auckland are separated by the International Dateline.
Key Learning Point

When calculating the time difference between two cities, the International
Dateline cannot be crossed. The calculation must be done using GMT/UTC.
When the International Dateline is crossed westbound, for example from Tahiti
to Auckland on Monday, a day is “lost” as the arrival date in New Zealand will
be on Tuesday:
The flight Air New Zealand NZ 005 on 17th July (effective flying time 5 hours
45 minutes) departs from Tahiti (PPT) on Tuesday at 02:30 hours and arrives
in Auckland (AKL), New Zealand on Wednesday at 06:15 hours.
The fact that a flight arrives at its destination on the day before or after is
highlighted in airline timetables by means of a special sign printed next to the
time of arrival at destination.
The transport time is the number of hours and minutes from the time of
departure at the airport of origin until the time of arrival at the airport of final
destination. This includes eventual transit and/or transfer times.
In airline timetables, departure and arrival times are always expressed in local
time. Time differences must, therefore, always be taken into account when
calculating the total transport time.

Example 3
Flight AF 033 leaves Paris at 12:30 on Tuesday, 12th December and arrives in
Montreal at 13:55 on the same day. What is the total transport time? Montreal
is situated in the Eastern Time zone of Canada.
The calculation should be made as follows:
• First Step: Ascertain the local time applicable at departure and arrival
cities.
PAR = GMT + 1 (Standard Clock Time)
YMQ = GMT - 5 (Standard Clock Time)
• Second Step: Convert arrival and departure times to GMT.
To convert departure and arrival times to GMT:
• Deduct the number of hours from the local time when it is ahead of
GMT (+)
• Add the number of hours to the local time when it is behind
GMT (-)
PAR 12:30 TUE at GMT + 1 = 11:30 GMT Tuesday
YMQ 13:55 TUE at GMT - 5 = 18:55 GMT Tuesday
• Third Step: Now that a common denominator has been found, namely
GMT, calculate the difference between the departure and arrival times. The
result will give the total transport time, that is, 7 hours 25 minutes.
Example 4
What is the total transport time for a journey leaving Lusaka (Zambia) at 0910
on Friday, 6th January, and arriving in Hong Kong on Saturday, 7th January, at
1450? This trip includes several connections.
The method of calculation used in the first example can also be applied to this
one, as follows:
• First Step: Determine the local time at departure and arrival points:
LUN = GMT + 2
HKG = GMT + 8
• Second Step: Convert departure and arrival times to GMT:
LUN 09:10 FRI = 07:10 GMT Friday
HKG 14:50 SAT = 06:50 GMT Saturday
• Third Step: Calculate the difference:
From 07:10 GMT FRI
To 06:50 GMT SAT
Total transport time: 23 hours 40 minutes
Key Learning Point

“Jet lag” can be defined as the fatigue and related symptoms travelers
experience when taking long airline trips and crossing multiple time zones. The
reason a traveler experiences jet lag is because the travelers' “internal clock”
becomes “confused” when they change time zones rapidly. For example, when
travelers fly from San Francisco to Rome, which is nine times zones ahead,
their bodies are still working on San Francisco time, which is nine hours
behind. Consequently, travelers may wake up in the middle of the night
because their bodies are telling them that it is the middle of the day! A good
rule of thumb for overcoming jet lag is that it takes 1 day to recover fully from
each time zone crossed. In the case of the San Francisco travelers, they can
expect to feel some jet lag for approximately nine days.
Study Check 2.5.3
1. The travel industry uses the 24-hour time clock to eliminate confusion over
a.m. and p.m. distinctions and to facilitate easier calculation of elapsed
travel times. TRUE or FALSE?
(a) True
(b) False
2. Jet lag can be defined as the time differences a traveler experiences when
taking long airline trips and crossing multiple time zones. TRUE or FALSE?
(a) True
(b) False
3. The world is divided into which of the following number of time zones:
(a) 12
(b) 24
(c) 18
4. If a customer boards a plane in Los Angeles, California at 18:30 and

arrives in San Diego, California at 19:40 the elapsed travel time is:
(a) 1 hour and 20 minutes
(b) 2 hours and 10 minutes
(c) 1 hour and 10 minutes
(d) 50 minutes
5. When a customer crosses the International Dateline traveling west, which

of the following statements is true?
(a) The customer loses a day
(b) The customer gains a day
(c) A change in time depends upon the type of flight
(d) The customer loses two days

6. What would be the local time in Rome on the 15th of June when it is 02:00
in Caracas, Venezuela?
(a) 08:30
(b) 09:30
(c) 10:30
(d) 11:30
7. What would the local time be in Zurich, Switzerland on the 15th of June
when it is 2:00 a.m. in Chicago, Illinois?
(a) 10:00
(b) 09:00
(c) 08:00
(d) 02:00
8. The local time in Delhi, India is 2:45 on May 15th. What is the local time in
London, England?
(a) 23:15
(b) 22:15
(c) 22:00
(d) 22:30
9. The local time in Bogota, Colombia is 15:25 hours on 22nd May. What is the
local time in Los Angeles, California, USA?
(a) 13:25
(b) 01:25
(c) 14:25
(d) 16:25
2.5.4 Unit Summary

In this Unit, you examined the 24-hour clock and how it is useful when planning
travel itineraries and calculating time differences (Section 2.5.1). You learned
about world time zones and how to calculate the time differences using a time
conversion chart (Section 2.5.2). And finally you learned about the International
Dateline and examined the time difference, by way of example, between Fiji
and Honolulu (Section 2.5.3). You may find it helpful to re-read this Unit and
work through the examples again to be sure that you understand how to
calculate time differences between destinations and elapsed travel times.
2.6 Local Currencies Around the World
• Understand types of local currencies (Section 2.6.1).

• Identify different local currencies, country and currency codes
(Section 2.6.2).
Unit Learning 2.6.0 Unit Overview

Objectives
In this Unit you will learn about the role of currency in local and world
By completing this Unit, economies. You will also identify different currencies and learn about country
you will be able to: currency codes.
2.6.1 Understand Types of Local Currencies

With the growth of international travel and the world global economy, it is very
important that you understand and identify different types of currency. As a
travel agent, you will need a basic understanding of local currencies. It is likely
that you will provide information to your customers about the different foreign
currencies and their rates of exchange.
2.6.2 Identify Different Local Currencies and

Country Currency Codes
In this Section, you will learn to identify different local currencies and country
currency codes. Table 2.6.1 highlights currencies at the 50 top tourism
destinations. As you study the table, notice that each country has a
corresponding two-letter country code, a name for the local currency, and a
three-letter code for the currency. The currency code is composed of the
country code with the first letter of the currency name. For example, Great
Britain's currency code is derived by adding GB + P = GBP. The GB is the
country code and P represents Pound Sterling. It is important to note that
countries have different forms of coins and notes for their currency. Study and
memorize the country codes as well as the currency names and codes in
table 2.6.1.
Country Country Code Currency Name Currency

Code
Argentina AR Argentine Peso ARS
Australia AU Australian Dollar AUD
Austria AT Euro EUR
Belgium BE Euro EUR
Brazil BR Brazilian Real BRL
Bulgaria BG Lev BGN
Canada CA Canadian Dollar CAD
Chile CL Chilean Peso CLP
China CN Yuan Renminbi CNY
China, Hong Kong HK Hong Kong Dollar HKD
(SAR)
Chinese Taipei TW New TWD
Taiwan Dollar
Croatia HR Kuna HRK
Czech Republic CZ Koruna CZK

Country Country Code Currency Name Currency

Code
Denmark DK Danish Krone DKK
Dominican Republic DO Dominican Peso DOP
France FR Euro EUR
Germany DE Euro EUR
Greece GR Euro EUR
Hungary HU Forint HUF
India IN Rupee INR
Indonesia ID Rupiah IDR
Ireland IE Euro EUR
Italy IT Euro EUR
Japan JP Yen JPY
Macao MO Pataca MOP
Malaysia MY Ringgit MYR
Mexico MX Mexican Peso MXN
Morocco MA Dirham MAD
Netherlands NL Euro EUR
Norway NO Norwegian Krone NOK
Philippines PH Philippine Piso PHP
Poland PL Zloty PLN
Portugal PT Euro EUR
Russia RU Ruble RUB
Saudi Arabia SA Saudi Rial SAR
Singapore SG Singapore Dollar SGD
Slovakia SK Euro EUR
South Africa ZA Rand ZAR
South Korea KR Won KRW
Spain ES Euro EUR
Sweden SE Swedish Krona SEK
Switzerland CH Swiss Franc CHF
Thailand TH Baht THB
Tunisia TN Dinar TND
Turkey TK Turkish Lira TRY
Ukraine UA Hryvnia UAH
United Arab Emirates AE Dirham AED
United Kingdom GB Pound GBP
USA US US Dollar USD
Vietnam VN Dong VND
Table 2.6.1—Currencies of the 50 Major Destination Countries
Unit 2.6: Local Currencies Around the World 157

2.6.2.1 The Euro (EUR)

In 1992 a treaty between several European countries was signed, agreeing to
form a single market which would simplify trading between participating
member countries.
Six European Union countries founded the European Monetary Union (com-
monly known as the eurozone), agreeing to establish one common currency:
the euro (EUR). Its purpose is to facilitate the ease of business transactions
within and beyond member countries. With the euro as a single currency,
travelers can compare prices of goods sold in different EU countries that use it.
Trading between euro countries is simplified because there is no need to
change money from the currency of one EU country using the euro to that of
another.
The euro is the currency used by 19 out of 28 EU countries so far. The
remaining EU countries of Bulgaria, Croatia, Czech Republic, Denmark,
Hungary, Poland, Romania, Sweden and the United Kingdom have not
adopted the euro and continue to maintain their own national currencies.
Other countries, such as Andorra, Monaco, San Marino and the Vatican are not
EU members, yet these countries use the euro as their official currency.
In March 2019, The United Kingdom will leave the European Union and
27 countries will remain within the EU.
2.6.2.2 The European Union Flag
Against the blue sky of the Western world, the 12 gold stars in a circle
symbolize the ideals of unity, solidarity and harmony among the peoples of
Europe. Source: http://europa.eu/index_en.htm
Key Learning Point

Currency codes allow you to save time by having a short-hand way to identify
currencies from different countries.

Study Check 2.6.2
1. What is the local currency for France?

(a) Euro
(b) Dirham
(c) Lira
(d) Dollar
2. What is the currency code for the Japanese Yen?

(a) JPO
(b) JPY
(c) JP
(d) KRW
3. All currency codes have two letters. TRUE or FALSE?

(a) True
(b) False
4. What is the local currency for Singapore?

(a) Dollar
(b) Rupiah
(c) Ringgit
(d) Pound
5. Which country's currency is the Forint?

(a) France
(b) Hungary
(c) Italy
(d) Switzerland
6. Which country's currency is the Rand?

(a) Australia
(b) South Africa
(c) Indonesia
(d) Russia
Unit 2.6: Local Currencies Around the World 159

7. Which country's currency is the Zloty?

(a) Russia
(b) Hungary
(c) Poland
(d) Czech Republic
8. Which of the following EU countries does not participate in the euro?

(a) Sweden
(b) Luxembourg
(c) Netherlands
(d) France
9. Which country's currency code is MAD?

(a) Morocco
(b) Macao
(c) South Africa
(d) Mexico
10. The currency code CHF corresponds to which currency?

(a) Hungarian Forint
(b) Russian Ruble
(c) Swiss Franc
(d) Thai Baht
Apply Your Learning

Learn to identify different forms of coins and notes for different country
currencies by asking more experienced travel agents and friends who travel to
keep and show you currency notes and coins from the countries to which they
have travelled. Visit a local coin/currency collector's shop to view and become
familiar with the appearance of different types of coins and notes.
2.6.3 Unit Summary

Currency plays an important role in local and world economies (Section 2.6.1).
Each currency has its own currency code which is ultimately used when pricing
tickets (Section 2.6.2).

2.7 Modes of Transport Around the World
• Discuss how modes of transport have changed over the course of history
(Section 2.7.1).
• Describe a variety of modes of transport in Europe (Section 2.7.2).
• Identify a variety of modes of transport in Asia (Section 2.7.3).
Unit Learning • Identify a variety of modes of transport in North America (Section 2.7.4).
Objectives
• Identify a variety of modes of transport in South America (Section 2.7.5).
you will be able to: • Identify a variety of modes of transport in Africa (Section 2.7.6).
• Identify a variety of modes of transport in Australia (Section 2.7.7).
• Take stock of future trends in improving transport (Section 2.7.8).
2.7.0 Unit Overview

In this Unit you will learn about the history of world transport modes and how
these modes influenced modern transport. You will then explore and compare
modes of transport in Europe, Asia, North America, South America, Africa and
Australia.
2.7.1 Development of World Transport Modes

Centuries before the wheel was invented or animals were domesticated
humans had invented primitive boats for crossing bodies of water. 71% of the
earth's surface is covered with water, a means of transport across these bodies
of water was essential for human exploration and development. Perhaps the
single biggest transport development, since the wheel, was the development of
the power engine.
It is hard to fully appreciate the importance the engine has had on human
transport. But life today would not be possible without this amazing invention.
Virtually all modern forms of transport including cars, cruise ships, airplanes,
and trains are powered by engines. The engine has made rapid transport from
one side of the globe to the other, not only possible, but fortunately for the
travel industry, affordable.
Key Learning Point

Improved technology has resulted in more efficient and cost-effective means of
transport.
2.7.2 Transport in Europe

The history of transport in Europe is long and complex. In 1883, the Orient
Express train began its first transcontinental service, carrying passengers from
Paris to Constantinople (now Istanbul).
Today there are high speed trains such as those listed below:
• AGV Italo (Italy)
• Alfa Pendular (Portugal)
• Altaria, Alvia, AVE and Euromed (Spain)
• Eurostar (Belgium - France - Great Britain)
Unit 2.7: Modes of Transport Around the World 161

• InterCity Express or ICE (Belgium - Netherlands - Germany - Switzerland -

Denmark - France)
• La Frecce (formerly Eurostar Italia)
• Railjet (Austria - Germany - Switzerland - Hungary)
• Renfe-SNCF (Spain - France)
• SJ (Sweden - Denmark)
• SuperCity (Czech Republic)
• Talgo (Spain)
• Tres Grand Vitesse or TGV (Belgium - Italy - Germany - Spain -
Switzerland - Luxembourg - France)
• TGV Lyria (Switzerland - France)
• Thalys (Belgium - the Netherlands - Germany - France)
• Velaro E (Spain)
Italy's AVG Italo is the fastest operating train in Europe with a maximum
operational speed of 360 kmph.
Figure 2.7.1—Italy's “Ferrari on rails”: the high-speed Italo train with speeds of up
to 360 km/hr (223 mph)
The Channel Tunnel is a tunnel that carries high-speed Eurostar passenger

trains, the Eurotunnel Shuttle for road vehicles and is the largest such transport
in the world. It is beneath the English Channel (Strait of Dover) that stretches
for 50.5 kilometers linking Folkestone, Kent in the UK with Coquelles near
Calais in northern France. The speed limit in the tunnel is 160 kph. (99 mph).

Figure 2.7.2—Channel Tunnel (shortened to ‘Chunnel’)
The steam locomotive greatly influenced Europe's transport history when it was
first introduced in the 1800's, as many European countries border either the
Atlantic Ocean or one of several seas, water transport remains extremely
important in most of Europe. Barges, ferries, passenger ships and other ocean-
going vessels are vital, not only to the transport of goods and raw materials, but
also to millions of traveling and commuting passengers.
Inland waterway transport using rivers and their tributaries are also being
strongly promoted in the European Union to relieve heavily congested car
transportation corridors.
Figure 2.7.3—European river cruise

Key Learning Point

Due to deregulation and improved technology, air transport is growing rapidly
as the most convenient form of transport in Europe.
Study Check 2.7.2
1. Travel by rail in Europe is not popular today. TRUE or FALSE?

(a) True
(b) False
2. The European highway system is one of the seven wonders of the modern
world. TRUE or FALSE?
(a) True
(b) False
2.7.3 Transport in Asia

From the nomad riding a camel in the Gobi Desert to the business commuter
riding the 275-kilometer-per-hour bullet train in Japan, Asia demonstrates the
transport extremes possible in the modern world.
Because of Asia's huge population, every conceivable transport mode can be
found in Asia. The most basic forms include animals such as camels, yaks,
elephants and water buffaloes. But buses, trains, lorries (trucks), cars, ferries,
bicycles, motorcycles and scooters are all an integral part of the Asian
transport system.
Even with the broad range of transport options a, great inconsistencies exist
between regions in terms of adequacy and efficiency in the transport system.
For example, only one third of India's villages are accessible by paved roads,
and animal-drawn carts still outnumber motor vehicles. The country's railway
system, however, is one of the most extensive in the world.
The countries of Nepal and Bhutan have huge mountain ranges, which present
an obstacle to land-based transport. In Bangladesh, the primary obstacle to
effective transportation is the nation's poverty.
In contrast, Japan has one of the most efficient public transport systems in the
world. Japan's popular Shinkansen bullet train service plans to introduce to the
fleet, the new maglev bullet trains by 2027. After recent test runs, it has
proved to be the fastest in the world with a speed of 603 kph (374 mph). The
term ‘maglev’ is derived from magnetic levitation which is the transport method
to move the train without touching the ground. With maglev, the carriages travel
along a guideway using magnets to both lift and propel, thus reducing friction.

Figure 2.7.4—Fastest train in the world: Japanese maglev bullet train
China is not far behind with the Shanghai Maglev Train also known as the
Transrapid with a maximum operating speed of 431 kph. The line connects
Shanghai Pudong International Airport to the outskirts of central Shanghai. It
covers a distance of 30.5 km in 8 minutes.
The Great Asia Highway is a cooperative project among countries in Asia and
the United Nations Economic and Social Commission for Asia and the Pacific
(ESCAP). It improves the highway systems in Asia by using a numbering
system for roads. The network is numbered from AH1 up and its roads cross
national borders Asian Highway 1 (AH1) is the longest route of the Asian
Highway Network running 20,557 km (12,774 miles) from Tokyo to the border
between Turkey and Bulgaria west of Istanbul where it joins end-on with
European route E80. It passes via Koreas, China, Hong Kong, Southeast Asia,
Bangladesh, India, Pakistan, Afghanistan and Iran.
Figure 2.7.5—The Great Asia Highway: Asian Highway 1 (AH1)

Key Learning Point

The large population and size of Asia makes transportation a priority with the
development of new infrastructures such as high speed rail lines and the
extensive AH1 highway, especially in the more developed and emerging
countries.
Study Check 2.7.3
1. Which of the following is not a form of transport found in Asia?

(a) Yaks
(b) llamas
(c) Cars
(d) Elephants
2. What is the name of the longest route in Asia?

(a) The India-Russia Project
(b) The South Asian Project
(c) The Great Asian Highway
(d) The ESCAP Highway
2.7.4 Transport in North America

North America contains a varied transportation system. The quality of its
motorways are more on par with its European counterpart.
By the early 1800's man-made canals linked the St. Lawrence-Great Lakes
waterway to the Mississippi-Ohio river system. Today, this water system still
serves as an important transport corridor linking many of the important
economic centers of the continent.

Figure 2.7.6—Paddle Steamer on the Sacramento River in the USA
Railways also played a significant part in the development of North America,

particularly the United States. The first transcontinental railway was completed
in 1869 across the mid-section of the United States. By the 1920's cars gained
popularity and so an extensive system of motorways connected the major
metropolitan areas.
Alaska is currently not connected to the North American rail network. However,
there are scenic tours out of Skagway to the Canadian Yukon but no
connection to the Alaska Railroad.
In the early 1970's commercial jet aircraft became widely available and popular
as a form of both commercial and personal transport. Currently there are more
than 2000 commercial airports in the United States, which serve over
500 million passengers annually—approximately half of the world's total flights.
This staggering figure signals not only the importance of commercial jet aircraft
to transport in the United States, but also the potential difficulties including
increased air congestion and noise and air pollution.
In the countries to the south of the United States—Mexico and Central
America—the transport systems are less developed and reliable. Several
natural, geographic and cultural factors including dense jungles, political
instability and poverty have hindered development of transport systems in
much of the region. Nevertheless, in recent years economic progress and
regional stability has resulted in the development of a new and effective
transport infrastructure.
With increasing pressure on the continent's road and airport capacity, North
America is evaluating development of magnetic levitation—high-speed train
transport—to complement existing means of transport.
Key Learning Point

Although water, rail and car transportation made significant contributions to the
development and of North America, transportation by air is widely popular and
affordable today.

Study Check 2.7.4
1. The first transcontinental railway in the United States was completed in

what year:
(a) 1869
(b) 1871
(c) 1896
2. Which of the following factors hinder the development of transport systems

in Central America:
(a) Poverty
(b) Dense Jungles
(c) Political Instability
(d) All of the Above
(e) A & C only
2.7.5 Transport in South America

Transport in South America, both from the standpoint of development and
infrastructure, is similar to that in southern North America (i.e. Mexico and
Central America), except that the continent's vast size and large natural
barriers make transport more difficult here than for its neighbors to the north.
There are vast expanses in South America, such as that of the Amazon basin,
that are connected only by waterways and air transport. The rugged and
massive Andes mountain range, which runs down South America like a
geological spine, also creates transport barriers that can be overcome only by
air transport.
Figure 2.7.7—Amazon river boat
In certain mountainous regions of some countries, such as Peru and Bolivia,

the only effective means of transport are walking and using domesticated
animals such as burros and llamas. In other parts of South America, such as
Brazil, waterways are the only effective way of reaching the outside world.
Railways are well developed in southern Brazil and Argentina, but in many

areas their efficiency is limited by varying sizes of tracks and the prevalence of
single-track systems, which do not permit bi-directional traffic flow.
In land-locked South American countries and regions, geography presents real
challenges to commerce. For example, Bolivia must export sugar via Chile, and
Paraguay must send its cotton by way of Argentina. Land-locked Bolivia sends
natural gas by way of pipeline to Argentina, and the city of Iquitos, located in
the jungles of Peru, sends oil to Brazil via barge on inland waterways.
Key Learning Point

Transportation in South America is largely challenged by its landscape
comprising of waterways in vast forests and jungles as well as high elevation
mountains. Travel by air is the most convenient form of transportation on this
continent.
Study Check 2.7.5
1. Railways are well developed in southern Brazil and Argentina, but in many
areas their efficiency is limited by a single size of track and the prevalence
of bi-directional track systems. TRUE or FALSE?
(a) True
(b) False
2. The rugged and massive Rocky Mountain range, which runs down South
America like a geological spine, also creates transport barriers that can be
overcome only by air transport. TRUE or FALSE?
(a) True
(b) False
2.7.6 Transport in Africa

Africa is a very large continent. African tourism enjoys a diversified and
attractive heritage, culture and natural landscapes. It has an expansive
coastline covering 26,000 km (16,000miles) providing opportunities for sea-
based tourism products including cruises and water sports. The continent hosts
important sporting events such as the African Cup of Nations. The travel and
tourism industry is vital to the African economy. Just over a billion tourists cross
Africa’s borders every year, over half arriving by air. When compared to road,
rail or water transportation, aviation is really most convenient way to get
around. This is because many countries in Africa are land-locked, surrounded
on all sides by other country borders.
Africa’s air services are not as well connected as those on other continents. A
journey from one African country to another may cross multiple borders.
Sometimes, the only way to get from one country in Africa to another is via
another continent or via a longer connection. Improved air routes within Africa
facilitates business and trade, enables tourism, connects friends, families and
cultures, and promotes the exchange of knowledge and ideas.

The African Union Agenda 2063 is a plan focused on continued economic

improvement in all African states. One of the plan’s projects, named the Single
African Air Transport Market (SAATM), is working to unify Africa’s air transport
market and improve intra-Africa market access. The SAATM is:
• increasing air connectivity across the continent
• reducing the air passenger’s journey and waiting time
• decreasing the cost of air transportation
• creating more tourism jobs.
Other initiatives enhancing travel within Africa are:

• eliminating visa requirements for African Union citizens
• reducing ticket taxes and airport charges
• coordinating tourist events promoting multicity vacations.
The implementation of the African Union Agenda 2063 will be key for tourism
growth in Africa. The outlook for African tourism is positive due to a growing,
youthful population coupled with a quickly-growing middle-income class with
the desire to travel.
In Africa, air transport supports 6.2 million jobs & $55.8 billion of GDP. Aviation
is an important tool for development and, as on any continent, can improve
economic and social benefits across Africa.
Key Learning Point

The greatest challenge to transportation in Africa is lack of infrastructure, and
high cost. By significantly improving Africa's transportation system, tourism can
continue to grow and contribute to Africa's economic status.
Study Check 2.7.6
1. Travel by air is the most suitable and convenient type of transportation for
Africa's size and landscape. TRUE or FALSE?
(a) True
(b) False
2. The Trans-Central African highway system links Mombasa on the east

coast with which of the following cities on the west coast?
(a) Luanda
(b) Lagos
(c) Accra
(d) Freetown

2.7.7 Transport in Australia

Australia is the least populous of the inhabited continents. Nevertheless,
Australia covers a large geographic area. The continent's overall size, coupled
with distances between metropolitan areas and outlying farm settlements and
mining towns, make transport challenging.
A 16,000-kilometer national main road system connects all of the major
metropolitan areas of the continent. Over 70 percent of all domestic passenger
movements within Australia occur on roads. Driving remains by far the
preferred means of transport within cities and for trips up to 400 kilometers.
Based on current trends, congestion will increase, imposing burdens on those
living in cities and to the Australian economy.
Source: Australian Department of Infrastructure and Regional Development
Maritime activity grew strongly in the decade to 2011-12. The number of cruise
vessels operating in Australia continues to increase. Australian cruise passen-
ger numbers more than doubled, with New South Wales and Queensland
accounting for two thirds of Australian cruise passengers.
Public transport use has been increasing in all capital cities since 2004.
Currently, one in six people in the capital cities uses mass transit for daily
commuting.
In addition to sea and car travel, railways now link most major Australian cities.
Passenger rail is generally given priority over freight services in cities. Rail
makes up a very small portion of passenger kilometers, but it has been growing
faster than either passenger car or bus transport.
Aviation contributes over $32 billion to Australia's GDP. It directly employs
149,000 people and over 160,000 people indirectly. Continued passenger
growth at major airports is already testing the capacity of airport infrastructure,
particularly during peak periods. International air travel will grow strongly to

2030, with both domestic and international passenger movements through

capital cities almost doubling.
Key Learning Point

The internet, radio frequency tags, remote sensors barcodes, 2D scans and
‘just in time’ production , have all increased the pressure for the transport
sector to respond to rich data regarding the movement of people and goods.
Study Check 2.7.7
1. Australia is one of the most motorised countries in the world. TRUE or

FALSE?
(a) True
(b) False
2. Transportation in Australia is challenging due to the very hot climate and

lack of good roads. TRUE or FALSE?
(a) True
(b) False
Apply Your Learning

Research the future development of transport in the region in which you live.
Evaluate how future trends and development will affect the modes of transport
in your area. Keep a close watch on these trends and take advantage of the
changes as you work in the rapidly growing, dynamic travel industry.
2.7.8 Future Trends in Intercontinental Transport

Looking to the future, there is the Moscow-Kazan High-Speed Railway. The
track is a joint project of Moscow and Beijing. It is a 770 kilometer long high-
speed railway line connecting the two major cities of Moscow and Kazan in the
Russian Federation. The project is expected to be completed by 2020. It is
slated to be the first phase of an ambitious transnational high-speed railway set
to connect Beijing and Moscow over a distance of over 7,000 km. China is
developing a new generation of trains capable of reaching speeds of 400 km/hr
for use in this railway. Presently, the journey from Moscow to Kazan takes
12 hours but with this new railway, it will be reduced to just 3.5 hours.
The Moscow-Kazan route may become part of a US$ 100 billion high-speed
railway between Moscow and Beijing. The railway may also be connected to
Beijing's New Silk Road project, which will link China to markets in Europe and
the Middle East.

Figure 2.7.8—China-Russia-Canada-United States proposed Railway through the

Bering Strait
2.7.9 Unit Summary

In this Unit you learned about the history of world transport modes and how
these modes influenced modern transport (Section 2.7.1). You then explored
and compared modes of transport in Europe, Asia, North America, South
America, Africa and Australia (Sections 2.7.2 through 2.7.7). Intercontinental
transport continues to evolve. An example is the proposed construction of the
Moscow-Kazan highspeed railway line that forms the first segment that will
connect Moscow and Beijing (Section 2.7.8).

Module Summary
In this Module you learned about the basic elements of physical, cultural and
destination geography (Unit 2.1). Next you explored the world's seven
continents, learned about the concepts of longitude and latitude, and located
and learned about major countries and major cities (Unit 2.2). You learned also
about the creation of city codes and their importance in selling and booking
travel arrangements (Unit 2.3). You also learned about coding and de-coding
city and airport codes (Unit 2.3). You then learned about planning travel
itineraries by following basic guidelines such as pace, interests, details, energy
and routing (Unit 2.4). You also evaluated resources for developing itineraries
(Unit 2.4). You then learned about world time zones and how to calculate
elapsed travel times between selected destinations (Unit 2.5). Next, you
learned about currencies and learned about country currency codes (Unit 2.6).
Finally, you learned about the history of world transport modes (Unit 2.7). You
then examined and compared transport modes in each of the inhabited
continents (Unit 2.7).

Review Questions
1. Destination Geography is the study of all of the properties and character-
istics of a location that influence travel. TRUE or FALSE?
(a) True
(b) False
2. In what year was the Australian airline industry de-regulated?

(a) 1995
(b) 1991
(c) 1985
(d) 1990
3. When a customer crosses the international dateline traveling east, which of

the following statements is true:
(a) The customer loses a day
(b) The customer gains a day
(c) A change in time depends upon the type of flight
4. The official language in Buenos Aires, Argentina is Spanish. TRUE or

FALSE?
(a) True
(b) False
5. The official currency of Russia is which of the following:

(a) Real
(b) Ruble
(c) Lira
(d) Euro
6. Touristic patterns can be defined as an unpredictable combination of

characteristics and qualities that describe why, how and when people
travel. TRUE or FALSE?
(a) True
(b) False
7. North America's Eastern Standard Time Zone (EST) is 75 degrees west of

Greenwich, which means that EST is how many hours earlier than GMT:
(a) 7 hours
(b) 6 hours
(c) 12 hours
(d) 5 hours
Review Questions 175

8. Greenwich Mean Time is also known as:

(a) UTC
(b) GMT
(c) Universal Time Coordinated
(d) All of the Above
9. Countries modify their standard time during the summer by advancing one
hour. This temporary change is called:
(a) Night Time Saving Time (NST)
(b) Daylight Advancing Time (DAT)
(c) Daylight Saving Time (DST)
(d) Night Shortening Time (NST)
10. 1:00 p.m. can also be expressed as:

(a) 13:00
(b) Noon
(c) 18:00
(d) 1:00 a.m.
11. When calculating the time difference between two cities the International
Dateline cannot be crossed. TRUE or FALSE?
(a) True
(b) False
12. Which of the following countries has the fourth largest population in the
world?
(a) United States
(b) Brazil
(c) Indonesia
(d) India
13. Innovation in technology has improved transportation efficiency, but

increased the cost of travel. TRUE or FALSE?
(a) True
(b) False

Appendix: Useful Web Sites

www.oanda.com
Currency conversion and rates Web site.
http://www.x-rates.com
Currency conversion and rates Web site.
http://www.weather.com
Good weather site.
http://www.timezoneconverter.com/
Time zone conversion Web sites.
http://www.ceoexpress.com/
Excellent Web site for business travelers.
http://www.geography.com/
Web site devoted to information about geography.
http://www.worldclimate.com/
Web site devoted to information about world climates.
https://youtu.be/aaExiKsvt9A
– a video suggesting a destination to complete the traveler's inner journey
The Future of Rail:
https://www.youtube.com/watch?v=8GHz-stzCso
Glossary
Climate: the average weather over an extended period of time.
Continental drift: the lateral movement of continents resulting from motion of
the earth's crustal plates.
Continents: the major land masses of the world.
Cultural geography: the study of how geography influences people's
behavior, customs and habits.
Culture: the characteristics of a society including its language, religion, politics,
art, food, customs and related elements that shape and distinguish it from other
societies.
Daylight saving time: a time of year in certain regions in the world when
clocks are set forward to extend daylight into evening hours.
Destination: a location that a traveler chooses to visit.
Destination geography: the study of all of the properties and characteristics
of a location that influence travel.
Elapsed travel time: the actual time spent traveling from one destination to
another.
Greenwich mean time (GMT): the time at Greenwich, England.
International dateline: an imaginary line that is both 12 hours ahead of and
12 hours behind GMT.
Low season: the period during which tourism is at its lowest level.
Peak season: the period during which tourism is at its highest level.
Physical geography: the study of the world's natural terrain and features.
Prime meridian: an imaginary line running through Greenwich, England that
connects the north and south poles.
Glossary 177
Shoulder season: the period during which tourism is between low season and
peak season.
Touristic patterns: a predictable combination of characteristics and qualities
that describe why, how and when people travel.
Universal time coordinated (UTC): another term for Greenwich Mean Time.
Recommended Videos
• National Geographic Documentary 2015 - Future of Transport:
https://www.youtube.com/watch?v=vKLEPWayPs8
• Top 10 Longest Canals in the World 2015:
https://www.youtube.com/watch?v=uK6nQ8fq6CU
• The Longest Tunnels in the World 2015:
https://www.youtube.com/watch?v=_Jgv0XXr8iE
• World's longest underwater tunnel:
https://www.youtube.com/watch?v=L7GFFntXi8I
• National Geographic Traveler - https://www.youtube.com/watch?v=E-cuz-
dUli7M&list=PLC9064F5153DA1D79
References
National Geographic Society. World Atlas, 8th Edition. Washington, DC: 2005.
Travel Agents Magazine. Duluth, MN: Advanstar Communications.
U.S. Department of Commerce, Bureau of the Census. Time Almanac. Boston,
MA: 1999.
World Tourism Organization.

Answer Key Study Check 2.3.2.1

Study Check 2.1.1 1.
1. (b) False (a) VIE
2. d (b) WAW
3. d (c) EDI
(d) LCA
Study Check 2.1.2 (e) OSL
1. b 2.
2. c (a) Czech Republic
Study Check 2.1.3 (b) Belgium
1. c (c) Romania
2. (a) True (d) Turkey

(e) Finland
Study Check 2.2.1
1. d Study Check 2.3.2.2
2. b 1.
3. b (a) Ethiopia
4. (b) False (b) Kenya
5. d (c) Libya
6. c (d) Senegal
(e) Zimbabwe
Study Check 2.2.2 2.
1. b (a) FNA
2. b (b) LUN
3. c (c) WDH
(d) CAS
Study Check 2.2.3
(e) ABJ
1. c (France, Spain, Italy, United Kingdom and
Germany)
Study Check 2.3.2.3
2. b (USA and Mexico)
1.
3. a
(a) China
4. c (China, Thailand and Turkey)
(b) Pakistan
(c) Bahrain
(d) India
2.
(a) BOM
(b) DAC
(c) DAM
(d) KTM
Answer Key 179

Study Check 2.3.2.4 Study Check 2.3.2.7

1. 1. a
(a) Fiji 2.
(b) French Polynesia (a) LPB
(c) Australia (b) BOG
(d) New Zealand (c) UIO
2. (d) BSB
(a) POM (e) SCL
(b) CHC (f) LIM
(c) SUV (g) MVD
(d) MEL (h) CCS
3.
Study Check 2.3.2.5
(a) Suriname
1.
(b) Paraguay
(a) YUL
(c) Uruguay
(b) IAD
(d) French Guiana
(c) EWR
(e) Brazil
(d) ORD
(f) Argentina
(e) DTW
(g) Colombia
(f) HOU
(h) Ecuador
(g) YYZ
4. b
(h) DCA
2. e Study Check 2.4.2
3. b 1. c
2. c
Study Check 2.3.2.6
3. (a) True
1.
4. b
(a) MGA
(b) TGU Study Check 2.4.3
(c) SJO 1. (a) True
(d) GUA 2. b
2. 3. c
(a) Panama 4. d
(b) Belize 5. d
(c) Nicaragua
(d) El Salvador

Study Check 2.5.3 Study Check 2.7.5

1. (a) True 1. (b) False. Bi-directional track systems are not
prevalent.
2. (b) False
2. (b) False. The Andes mountain chain runs down
3. b South America.
4. c
5. a Study Check 2.7.6
6. a 1. a
7. b 2. b
8. b
Study Check 2.7.7
9. a
1. (a) True
Study Check 2.6.2 2. (b) False
1. a
Review
2. b
1. (a) True
3. (b) False
2. d
4. a
3. b
5. b
4. (a) True
6. b
5. b
7. c
6. (b) False
8. a
7. d
9. a
8. d
10. c
9. c
Study Check 2.7.2 10. a
1. (b) False 11. (a) True
2. (b) False. The Channel Tunnel is a wonder of the 12. c

modern world 13. (b) False
Study Check 2.7.3

1. b
2. c
Study Check 2.7.4

1. a
2. d
Answer Key 181

Geography in Travel Planning Workbook

See Attachment A Geography in Travel Planning Workbook

Module 3:
Travel Formalities
Module Prerequisites • Know the role, responsibilities, knowledge and skills necessary to sell
travel effectively
Before beginning this
Module, you should: • Know the top tourist destinations and their attractions
• Plan a simple trip itinerary
• Distinguish between various types of passports, visas and other travel

documents and how to obtain them (Unit 3.1).
• Describe health requirements and preventative measures for travelers
(Unit 3.2).
Module Learning • Identify the types of airport taxes relating to travel, customs and currency
Objectives restrictions for customers (Unit 3.3).
By completing this Module, • Evaluate and advise on the use of different forms of payment for
you will be able to: international travelers (Unit 3.3).
• Highlight the value of purchasing travel insurance and the essential
elements of the contract (Unit 3.4).
• Provide the latest travel documentation requirements to customers using
Timatic solutions (Unit 3.5).
Module Introduction
This Module studies the various types of travel documents and procedures
required for travel.
You will learn how to access information on documents needed when traveling
internationally. This Module will emphasize the need for accuracy when
supplying information on visa, passport and health requirements as well as
customs and currency regulations.
IATA's Timatic solutions are widely used in the travel industry as an official
resource for government travel regulations for air travel.
You will gain information relating to other travel formalities such as taxes to be
paid by travelers, either on departure or arrival, different forms of payment
options when traveling, health matters and why travelers should be made
aware of the need for travel insurance.
All of these topics are considered fundamental to the service provided by travel
professionals to their customers.
This module includes examples of Timatic information in various formats.
Attachment B supports this module study with several case studies supported
by TimaticWeb2 extracts.

186 Module 3: Travel Formalities

3.1 Travel Documents
• Define and identify key elements of a passport (Unit 3.1.1 and 3.1.2).
• Define and distinguish between the various types of visas (Units 3.1.3
and 3.1.4).
• Explain the purpose of Electronic Travel Authorizations (ETAs)
Unit Learning (Unit 3.1.5).
Objectives • Describe the Advance Passenger Information System (APIS) and data
By completing this Unit, transmitted to immigration (Unit 3.1.6).
you will be able to: • Follow best practices in providing advice on how to obtain travel
documents (Unit 3.1.7).
3.1.0 Unit Overview

This Module looks at the various types of travel documents, when they are
required, how to obtain them and other information for travelers.
3.1.1 The Passport

A passport can be defined as “an official document issued by a competent
public authority to nationals or to alien residents of the issuing country”.
A passport serves two purposes: first as a document that allows entry to
another country; second, as the most official form of identification.
Travel agents should ensure that the traveler's passport is valid as required by
the destination country. Most countries require that a visitor's passport be valid
for a specified period of time beyond the visitor's stay. For example, a
destination country may require that a visitor's passport be valid for up to six
months beyond his/her stay.
An agent will encounter passports issued by various countries. The information
that agents need to refer to might be located in different places. There are
some standard passport features. These include:
• A passport is normally valid for either five or ten years, depending on the
country issuing the document.
• A passport is normally valid for all destinations unless exceptions are
noted.
• A passport that is no longer valid (beyond date of expiration shown on the
bio-data page or that has no further room for visas or entry/exit stamps) is
generally not accepted by immigration authorities and must be replaced by
a new one.
• Children over the age of sixteen must hold a valid passport issued in their
own name.
• A passport remains the property of the issuing authority and can be
withdrawn at any time.
Unit 3.1: Travel Documents 187

All passports generally contain similar information. This includes:

• Family name; • Date of issue;
• Given names; • Authority;
• Nationality; • Date of expiry;
• Date of birth; • Observations;
• Children; • Holder's signature;
• Sex; • Holder's photograph.
• Place of birth;
Observations may contain no information or may for example state something
like the following:
“This passport is issued in replacement of passport no. L8765876R dated
3 June 20XX reported lost”.
Joint Passports
There are a few countries that issue or accept a single passport shared by two
or more people such as a parent and child (minor) or a husband and wife. This
type of passport is called a joint passport.
People who travel on a joint passport must travel together for the complete
journey. The parent passport holder may travel alone, using the joint passport
without being accompanied by the child included on the passport. However, a
child that is included in a joint passport cannot travel without the parent. In
many cases though, children will require their own passport especially where
biometric passports are required. This is because the biometric chip contained
in biometric passports can only hold the data of one person.
Here is sample advice from a country that accepts foreigners traveling on joint
passports: Minors up to and including 16 years old, traveling together with
parent(s), who are registered in a parent's passport, do not need a separate
passport. If the passport does not include a photo of the minor, a birth
certificate of the minor is also required. Minors who are travelling unaccompan-
ied or are over 16 years of age must hold their own separate passport.
This next example relates to a mother and child traveling from their home
country, France, to Morocco on a joint passport. The mother would not be able
to return to France, leaving her child in Morocco with no proof of legal entry into
Morocco. The child would not be able to leave Morocco without the mother.
Machine-Readable Passports
All passports must be machine-readable. The two lines of coded data at the
bottom of the bio-data page in machine-readable passports contain the
passport holder's personal information. This is the same information printed on
the same passport page. Border and departure airport agents scan the coded
information to quickly and accurately collect passenger data that is transmitted
(sent) to arrival airport authorities in advance of the passport holder's arrival.

Figure 3.1.1—Specimen of machine readable passport
Biometric Passports (E-Passports)

Biometric passports offer higher security. They have an electronic chip
embedded in the passport book. The chip holds a hidden photo of the passport
holder that can only be seen under a scanner's ultraviolet light. It also contains
a country-specific signature that proves the passport is authentic and govern-
ment issued.
Biometric passports also transmit passport data to destination authorities, just
as machine-readable passports do. The addition of the electronic chip to
e-passports will increase security, provide greater protection against altering
passport information and reduce the risk of fraud by adding additional layers of
identity checks within the passport, all of which must match.
If border or airport authorities are not equipped with a scanner to read the
electronic chip, the passport will still be valid. It will still contain all the security
features of the current machine-readable passports.
Figure 3.1.2—Specimen of biometric passport using fingerprint

Key Learning Point

The passport is accepted worldwide as the official form of personal identifi-
cation and features an expiry date. A machine-readable or biometric passport
digitally stores the holder's personal information.
3.1.2 Types of Passports
States can issue different types of passports.
Normal Passport
Most countries issue normal passports to their citizens/nationals, which comply
with the definition in the previous section. The front cover bears the issuing
country's name in native language and often in English. However, China
(People's Rep.) issues different passports for those from the Special Adminis-
trative Regions of Hong Kong and Macao. The United Kingdom issues different
passports depending on national status.
Emergency Passport and Temporary Passport

These are issued in cases where urgent travel is required or to replace lost or
stolen passports. They have a limited validity period and, in some cases, may
be only valid for a simple journey. Not all countries issue or accept Emergency
Passports and Temporary Passports.
Alien's Passport
This type of passport may be issued to individuals living in a country, even
though they are not citizens or nationals of that country.
Diplomatic or Consular Passport

Issued to diplomatic, consular and other government officials on missions
entitling the bearer to diplomatic or consular status under international law and
custom. In most cases, these passports are only permitted to be used when on
duty and not when the individual is traveling for leisure purposes.
Key Learning Point

The most common type of passport is the normal passport issued for a period
of validity by the holder's citizenship country.

3.1.3 The Visa

A visa is a permit allowing a citizen of one country to enter or transit through
another country. It is an entry in a passport made by the receiving country's
government office, indicating that the visa holder is permitted to enter or re-
enter the country concerned. A visa usually specifies the authorized length of
stay, the period of validity and the number of entries allowed during that period.
Countries may restrict entry to certain nationals.
Most countries require citizens of other designated countries to apply for a visa
prior to traveling to their country. The best practice is to apply for visas as far in
advance as possible as it can sometimes take months to obtain a visa. A few
countries can issue a visa at the arrival airport for visitors. Therefore, you
should know the passport citizenship of your customers and the visa
requirements, if any, of the countries they intend to travel to or through.
The purpose of a visa system is to assist immigration authorities in recording
who and how many visitors are likely to arrive and from which countries. Visa
regulations are usually established between two countries as a bilateral or
reciprocal agreement. But countries can also set visa requirements unilaterally
(without discussion and agreement with other countries).
Airlines may refuse to transport a passenger if the passenger lacks proper
documentation for the country of destination.
Under normal circumstances, once a visa has been issued, then entry into the
country should be granted. However, even if the passenger has the correct
documents to enter the country, the immigration officer at the destination
airport can refuse entry.
The responsibility of travel agents is to supply up-to-date and accurate
information. Travel customers will act on the visa requirement advice travel
professionals provide. Some agents offer a visa service, in which case the
agency will facilitate the visa application process for a service fee.
Agents need the following information from the customer to research and
advise visa requirements:
• Country of origin (where journey begins)
• Any stopover or transfer countries on route
• Country of final destination (e.g., will the traveler return to the country of
origin where a re-entry permit might be needed?)
• What type of passport the customer holds, since requirements may vary
according to the type of passport (e.g. normal, diplomatic, alien passport).
• Customer's nationality or citizenship
Entry versus Transit Visa

An entry visa (also sometimes referred to as a visitor visa) allows the arrival
visitor to exit the arrival airport. It is the more common type of visa requirement
worldwide. Normally, arrival passengers must remain in the airport transit area
and cannot exit the airport if they do not hold the required entry visa.
Passengers entering a country for the purpose of connecting from one flight to
another (without leaving the airport) do not require an entry visa. However, the
connecting passenger may need a transit visa. Rules regarding an airport
transit often differ from those related to a stopover where the passenger exits
the airport.
Generally, a “transit” represents an intermediate point between the passenger's
origin and final destination where a short period of time is spent to make a flight

connection. There is no standard transit time (the time permitted between

arrival and departure) as each country sets its own rule. If the customer's
transfer is longer than the transit time allowed, then an entry visa must be
applied for instead of a transit visa.
Key Learning Point

The final decision regarding entry into any country remains with the immi-
gration officials at the entry point who can deny entry to an arriving passenger,
even if holding the required passport and entry or transit visa documents.
3.1.4 Types of Visa

The type of visa a passenger needs to have is defined by a country's
immigration law and relates to the purpose and type of transportation used.
Visas are issued by embassies or their consulates. Some countries even
accept and grant applications online. Here are a list of common visa types:
Visa Type Explanation

Visitor visa Also referred to as: entry permit, entry visa, business visa
or travel pass. It provides right of entry to another country,
subject to satisfying immigration authorities at the point of
entry.
The usual conditions for obtaining a visitor's visa include:
proof of holding sufficient funds for the length of stay and
proof of prepaid onward travel. Some countries ask for
proof of funds and onward tickets before issuing the visa.
The agent can provide a letter stating what travel arrange-
ments have been reserved.
Transit visa Provides right of entry into another country, or to transit
through specific airport, purely for the purpose of making
travel connections onward to a third country. Regulations
related to transit vary from country to country and should
be checked. For example, one country may stipulate that
passengers who transit within twenty four hours, for
example, do not need a visa. Whereas another country
may require a passenger to obtain a transit visa even if
they arrive and leave all within a twelve-hour period.
The rule for agents is simply this; always check transit
regulations.
Transit without Some countries allow visa-required travelers to transit at
visa (TWOV) an airport in their country without a visa.
Travelers holding a TWOV must:
• Stay in the airport transit area
• travel to a third country within a maximum allowed
transit time
• Hold confirmed onward flight reservations and travel
documents to enter the next country
Immigrant visa This is a document issued by a country to allow travel to
that country and apply for admission as a legal permanent
resident.

Visa Type Explanation

Official visa This is a visa granted to foreign government employees,
diplomats and employees of international organizations
(such as the United Nations) traveling on official business.
Visa-on-arrival Where visa-on-arrival is available, passengers can apply
for and receive the visa at the port of entry.
Work visa Work visas are temporary and can range from domestic
workers in a private household, representative of an
overseas business, entrepreneur visa, exceptional talent
visa, graduate entrepreneur, investor visa, intra-company
transfer, minister of religion, sportsperson, priority service,
charity worker, creative and sporting worker, government-
authorized exchange visa to youth mobility scheme visas.
Schengen visa To enable people to travel more freely, some European
countries are part of a borderless region called the
“Schengen area”. Within the Schengen area travelers can
travel freely from one Schengen country to another
Schengen country without any border controls for pass-
ports and visas. Travel documents are only checked by
immigration when crossing the external border of the
Schengen area. In cases of heightened security, it is
possible for Schengen countries to reinstate internal
border controls for a temporary period.
Schengen area countries are: Austria, Belgium, Czech
Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein,
Lithuania, Luxembourg, Malta, Netherlands, Norway,
Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and
Switzerland.
Table 3.1.1—What Types of Visas Exist?
Key Learning Point

A Schengen visa may be required to enter the Schengen Area of borderless
countries in Europe. One Schengen visa allows free travel between partici-
pating Schengen countries
3.1.5 Electronic Travel Authorizations

In some cases travelers may not require a visa to enter a country but they still
require authorization to travel to a country and register their travel plans. This is
in the form of electronic travel authorizations (ETAs).
As its name implies, an electronic travel authorization provides official
permission to travel to a country. Because it is issued electronically, there is no
physical evidence of it in the passport. An electronic authorization is verified
electronically by airlines prior to boarding. Passengers in possession of a valid
electronic authorization are not required to obtain a visa. Australia, Canada and
the United States are examples of countries requiring such electronic author-
izations for all incoming visitors.

US Electronic System for Travel Authorization (ESTA)

The US Visa Waiver Program is a program of the United States Government
which allows citizens of specific countries to travel to the United States without
a visa for tourism, business, or to transit. Visa exempt visitors must obtain an
ESTA before traveling to the United States. Eligible ESTA travelers must:
• be a national of a US Visa Waiver Program (VWP) country
• have a biometric passport
• travel for less than 90 days, as tourists or on business
• hold proof of paid return or onward transportation
The ESTA requirement does not apply to travelers that hold a valid US visa or
who are legal residents of the United States. Applications and more information
about ESTA can be found in the U.S. Customs and Border Protection website:
https://esta.cbp.dhs.gov.
Australia's Electronic Travel Authority (ETA)

Australian ETA program applies to visitors with short stays as tourists or on
business. ETAs must be issued prior to arrival in Australia. An application is
available:
• online (www.eta.immi.gov.au),
• through a travel agent or airline,
• at Australian visa office.
Canada's Electronic Travel Authorization (eTA)

An Electronic Travel Authorization (eTA) is mandatory for visitors to Canada
who do not need a visa to enter. Therefore, every visitor to Canada must hold a
visa or an eTA. Only U.S. nationals are exempt. An eTA can be applied for at
www.cic.gc.ca/english/visit/eta.asp.
Key Learning Point

Australia, Canada and the USA require a form of electronic travel authorization
from visitors who do not need an entry visa.
3.1.6 Advanced Passenger Information System

(APIS)
In an effort to increase security in international air travel, many countries have
instituted an Advanced Passenger Information System (APIS) that affects all
flights into, and in some cases, out of the country imposing the requirement.
APIS is a government-run system capable of performing database queries on
air passengers prior to their arrival or departure. Airlines must electronically
submit a complete manifest (list) of passenger and crew data in advance of all
flights landing at or departing from an airport that mandates APIS.
Carriers that do not comply with APIS data provision requirements for flights to
and from the United States may pay significant penalties and their passengers
subjected to increased and more time-consuming Immigration or Customs
inspections.
The data is collected by the air carrier from the passenger reservation data and
during the airport check-in process and then transmitted electronically to

customs prior to the passengers' arrival at their destination (or departure).

Therefore, for all passengers booked on flights to such countries, the following
information will be collected and transmitted through reservation and check in
procedures:
• Complete name;
• Date of Birth;
• Citizenship;
• Gender;
• Travel Document issuing country;
• Travel Document Type;
• Travel Document number;
• Travel Document date of expiration;
• Address where visitor will stay on first night of the intended visit.
Prior to arriving at the destination airport, visitors must provide the full address
(including zip code) where they will stay while in the country. If airline
passengers are connecting with a cruise ship, they must name the cruise ship
and city/state point of embarkation.
Key Learning Point

Some countries mandate the Advanced Passenger Information System (APIS),
obliging airlines to electronically transmit personal passenger data collected
from reservation information and during the check-in process per arrival and
departure flight.
3.1.7 Obtaining Travel Documents

It is always the customers' responsibility to obtain the necessary documents
(passports, visas) for their journey. The agent's responsibility is to supply their
customers with accurate and up-to-date information, thereby enabling them to
enjoy trouble-free international travel.

Some travel agents offer a visa service for a service fee to their customers.
Whether the traveler applies for the visa directly or an agent applies on the
customers' behalf, the procedure is the same.
Passport Check-List Visa Check-List

 Carefully read and complete an  Complete an application form,
application form. Passport appli- which can be obtained from the
cations are generally available at destination country's consulate or
a home country's post office or embassy.
passport office, or from the
country's foreign embassy orcon-
sulate.
 Photographs are normally re-  Some visas require a photograph
quired; details of how many, what with specific dimensions.
photo size and what color will be  A fee is payable for many types of
explained on the application form. visas.
Some countries require a third  Verify the application form for de-
party (who has known the appli- tails on how long the visa appli-
cant for a minimum period of time) cation procedure will take. Some
to sign the back of the applicant's agents may be able to process a
photograph(s) in order to confirm visa application faster than an in-
the applicant's identity. dividual posting an application.
 Check that all essential elements  Submit a visa application as far in
are included: photograph(s) com- advance as possible. Customers
pleted form and payment. Submit may find it quicker and safer to
the completed application form to deliver visa applications in person
the passport issuing office as far or via courier delivery services.
out in advance of travel. Passports sent by post should
always be sent via a secure or
registered form of mail. Visas can
take several weeks, even months
to issue; travelers should apply
well in advance of the planned
travel date.
Table 3.1.2—Passport and visa document checklists for travelers
Key Learning Point

Passports should be applied for in advance of any visa, because often when
applying for a visa to visit another country, the application form needs to be
sent away with the traveler's passport as evidence of nationality.

Study Check 3.1
Select the best answer.
1. Which is an official form of personal identification?

(a) APIS
(b) Passport
(c) Visa
(d) ICVP
2. Country of origin is a term used to describe where a journey ends. TRUE or

FALSE?
(a) True
(b) False
3. Passports are normally valid for more than ten years. TRUE or FALSE?
(a) True
(b) False
4. Which document is equivalent to an entry visa?

(a) A passport
(b) A health certificate
(c) An electronic travel authorization
5. Which is a feature of a machine-readable passport?

(a) An electronic chip with the holder's personal data
(b) The issuing country's electronic signature
(c) Hard-coded data about the holder
(d) An image of the holder's finger prints
6. Which travel document must be issued by an immigration office?

(a) Passport
(b) Visa
(c) Vaccination Certificate
(d) Electronic Travel Authorization
7. The traveler must first secure a valid passport before applying for an entry
visa. TRUE or FALSE?
(a) True
(b) False

8. TWOV (Transit Without Visa) is the term used to refer to those passengers
who are permitted to make a flight connection at an airport without having
to obtain a visa. TRUE or FALSE?
(a) True
(b) False
9. Which is always TRUE about Electronic Travel Authorizations (ETAs)?

(a) Holders require a visa for transit purposes only
(b) They are issued by a visa office
(c) Holders do not need to travel with a passport
(d) They permit the holder to enter an ETA country
10. A Schengen visa allows passport free travel between which participating
countries in which region?
(a) Asia
(b) North America
(c) Africa
(d) Europe
Apply Your Learning

Look again at checklists included in this unit. Use them to help you create your
own more effective lists.
This list details the type of basic information that you would need from the
traveler to accurately check visa requirements:
1. Country of origin (where journey begins)
2. Any stopover or transfer points on route
3. Country of destination
4. Country of final destination (will the traveler return to the country of origin if
so, does the traveler need a re-entry permit?)
5. What passport is the customer traveling on i.e. what is the traveler's
citizenship?
Alternatively, you could create a questionnaire for all customers to complete.
The form simply asks the customer to supply the relevant information about
their intended journey and citizenship. With the completed form the agent can
then check which visas/permits if any, the passenger will need. This could
become part of the passengers booking file and record of the information given.

3.1.8 Unit Summary

Having studied this Unit you should now be able to:
• Define a passport and its various types (Units 3.1.0 and 3.1.1).
• Distinguish between the various types of visas (Units 3.1.2 and 3.1.3).
• Describe the procedure to obtaining travel documents (Unit 3.1.4).
• Explain what international health certificates are and how they are obtained
(Unit 3.1.5).

3.2 Health & Preventative Measures for

Travelers
• Determine health requirements for destination countries visited and

transited by customers (Unit 3.2.1).
• Give advice on preventative measures that can help the traveler reduce
the risk of illness (Unit 3.2.2).
Unit Learning
By completing this Unit, The key to successful international travel is making sure all travel documents
you will be able to: are secured, but another element of hassle-free travel is taking precautions
while away. This Unit takes a closer look at the inevitable health risks that
travelers are exposed to, especially when time is spent in tropical regions.
The spread of infectious diseases is controlled through vaccination programs
and better sanitation. But in rural areas sanitation is poor and the chances of
contracting infections of various sorts are much higher than at home. This Unit
explains some basic rules travelers can follow to prepare and enjoy the time
spent traveling abroad.
The World Health Organization (WHO) collects and publishes individual
country health requirements on its website.
3.2.1 Health
General health information is another travel formality that agents offer advice
on. Travel health depends on pre-departure preparations, day-to-day health
care while traveling, and how one handles any medical problem or emergency.
While the list of potential dangers can seem frightening, with some basic
precautions and adequate information, travelers should experience a problem-
free visit abroad.
Travel agents include health advice with the final documentation. They direct
their customers to official websites or publications published by health
authorities. The best advice to travelers comes from a medical doctor or a
travel clinic.
It is necessary to check the health regulations of:
• The country of destination
• The country of origin or departure
• Any transit countries
• Any country visited in the previous 6 days before arrival
Travel outside urban areas may present risks different from those encountered
in cities. Agents should check for any compulsory and recommended vacci-
nations required to protect against disease and infection while traveling,
especially when travel is to tropical regions in Asia, Africa and South America.
And finally, agents should recommend a travel insurance policy to cover the
cost of medical treatment at destination should they fall ill or have an accident.

Key Learning Point

Health requirements are determined by the destination country, and influenced
by where the visitor came from and the destinations recently visited before
arrival.
3.2.1.1 Health Preparations

There are several ways in which travelers can prepare to travel healthy. Firstly,
they should buy health travel insurance. A visit to the dentist just before
departure is a good idea. If travelers wear eye glasses or contact lenses, they
should carry an extra pair with them or a prescription from the eye doctor.
Travel clinics and pharmacies sell conveniently packaged sterile syringes,
needles, gloves and more for traveler use.
Similar rules apply to medical supplies or medicines. Customers must carry an
adequate supply of required medicines and a prescription in case the traveler
must buy more medicine at destination.
Travelers should check the expiry date of drugs taken along and those bought
overseas. Some drugs, especially vaccines and antibiotics, expire more quickly
in tropical conditions. Travelers should carry with them a prescription, written in
two languages if possible, to show that they can legally use the medication.
Sometimes over-the-counter drugs from one country may need a prescription
in another.
Key Learning Point

Travelers should bring a good medical kit and prescriptions for all medicines
taken into another country.
3.2.1.2 Immunizations
Vaccinations provide protection against diseases the traveler might meet along
the way. Vaccination is normally required only when the visitor is arriving from
another country with risk of yellow fever transmission. Yellow fever vaccination
is the only vaccination required by the International Health Regulations of the
World Health Organization.
As a general rule, there are no vaccinations required for passengers transiting
infected countries if they remain in the transit area and therefore do not pass
the immigration control.
A vaccination against yellow fever is more often recommended than it is
compulsory, depending on whether the visitor intends to travel outside urban
areas (or has traveled to rural areas in infected countries).
When travelers are required to be vaccinated against yellow fever, an
internationally recognized ICVP (International Certificate of Vaccination or
Prophylaxis) is issued. The holder is required to produce this document at the
point of entry into the country at risk for yellow fever or into any country after
visiting a country at risk.
All vaccinations should be planned for. Some must be obtained up to a month
before departing on an overseas trip. Individuals should keep a record of which
vaccinations they have had, with the date. The period of protection offered by
vaccinations differs widely, so keeping a record is useful for subsequent trips
abroad, to know when a booster is required. Pregnant women cannot be given
certain immunizations and are also vulnerable to malaria.
Unit 3.2: Health & Preventative Measures for Travelers 201

Key Learning Point

People traveling to destinations requiring a vaccination against yellow fever
must carry a certificate of vaccination (ICVP) as proof to immigration authorities
at entry.
3.2.2 General Preventative Measures

Being careful of what you eat and drink is the most important health rule. Some
travelers experience stomach upsets, although most of these occurrences will
be relatively minor. Agents should be aware of some basic rules and
preventative measures that travelers can take. But remember to be sensitive in
describing the risks to customers. After all, trying the local food is part of the
travel experience.
3.2.2.1 Water and Drinks

Bottled mineral water is available everywhere. Most travelers drink this rather
than risk what comes out of the tap. If tap water is used, the simplest way of
purifying water is to boil it thoroughly for 10 minutes. Remember that at high
altitudes water boils at lower temperature, so germs are less likely to be killed.
Alternatively, water can be chemically treated with chlorine tablets, but iodine is
more effective in purifying water. Tincture of iodine, iodine tablets or crystals
can be used, although care should be taken to follow the instructions, as too
much iodine can be harmful. Treated water should be left to stand for
30 minutes before drinking.
Travelers should be wary of fruit juices, particularly if water has been added
and with drinks that contain ice. Make sure that fresh milk has been
pasteurized and that dried milk has been made up with boiled water.
Key Learning Point

It is generally safer to drink bottled or boiled beverages. Avoid drinking tap
water.
3.2.2.2 Foods
Travelers must be careful about what they eat. The main points of hygiene are:
• Salads and fruit should be washed with purified water or peeled
• Thoroughly cooked foods is safest but not if it has been left to cool or if it
has been reheated
• Raw shellfish or fish are often hazardous to health
If an eating-place looks clean and well run and if the vendor also looks clean
and healthy, then the food is probably safe. In general, places full of customers
should be fine.
3.2.2.3 Nutrition
Overseas travelers on long trips and in rural area should make sure their diet is
well balanced. Eggs, beans, lentils, rice and nuts are all safe ways to get
protein. Fruit that can be peeled is a good source of vitamins. If food is limited
or poor, it may be a good idea to carry vitamin or iron tablets to supplement
one's diet.

In hot weather the tourist must make sure to drink enough—one should not rely
on feeling thirsty to indicate when to drink. Not needing to urinate or very dark
yellow urine is a danger sign. The traveler should always carry a water bottle
on long trips.
3.2.2.4 Health Warning Signs

The normal body temperature is 98.6°F or 37°C. More than 2°C higher is a high
fever. One should know how to take a temperature and a pulse rate. As a
general rule, the pulse increases about 20 beats per minute for each degree C
rise in fever.
Respiration (breathing) rate is also an indicator of illness. Count the number of
breaths per minute: between 12 and 20 is normal for adults and older children
(up to 30 for younger children, 40 for babies). People with a high fever or
serious respiratory illness breathe more quickly than normal.
Potential medical problems that travelers are exposed to can be broken down
into three areas:
1. Climatic and geographical considerations—problems caused by extremes
of temperature, altitude or motion
2. Diseases and illnesses caused by unsanitary conditions, insect bites and
stings, and animal or human contact
3. Simple cuts or scratches
Many health problems can be avoided by taking care of oneself. Wash hands
frequently, clean teeth with purified water rather than with tap water. Avoid
potential diseases by dressing sensibly. It is possible to get worm infections by
walking barefoot; walking over coral without shoes can cause dangerous cuts.
One can avoid insect bites by covering bare skin when insects are around, by
screening windows and beds or by using insect repellent.
Key Learning Point

Avoid many health problems by regularly washing hands, drinking only bottled
mineral or purified water and using insect repellent.
Study Check 3.2
1. Travelers should always drink tap water. TRUE or FALSE?

(a) True
(b) False
2. Pregnant women are vulnerable to diseases like malaria and cannot be

given certain immunizations. TRUE or FALSE?
(a) True
(b) False
3. A normal body temperature is 98.6°F or 37°C. TRUE or FALSE?

(a) True
(b) False

4. Good health and medical kits should contain which of the following:
(a) A sewing kit
(b) An eye glass prescription
(c) Sterile syringes
5. Vaccinations should be planned for, since some must be given up to one

before departure.
(a) Week
(b) Year
(c) Month
6. Which is a basic rule for keeping healthy while traveling?

(a) Eat and drink whatever you like
(b) Take your own food
(c) Visit the dentist
7. A vaccine may be recommended or required to protect travelers from

which contagious disease?
(a) Malaria
(b) Cholera
(c) Ebola
(d) Yellow fever
8. How do travelers become sick with yellow fever?

(a) From drinks with ice cubes
(b) From mosquito bites
(c) From eating eggs
(d) From unwashed salad
Apply Your Learning

A good way to refresh your knowledge while teaching others at the same time
is to give presentations to colleagues during weekly training sessions.
You and your colleagues could research different countries' travel formalities
and then present your findings to the group. Other information can be added to
make the presentation more interesting.
For example, you are given details of the top ten destinations sold out of your
agency. You will need to research the various travel requirements to visit these
countries. To do this, you may want to contact the local government offices in
these countries and the national carrier for more information. You will often find
out much more than you expected.
Remember to ask the organizations to send leaflets and relevant information to
support your presentation. Then, put together a brief training session ex-
plaining your findings. Everyone in your agency will benefit from being updated
with current regulations.

Group presentations are also a good way to ensure that everyone in the office
is giving the same information to their customers.
3.2.3 Unit Summary

In this Unit you learned that:
• health requirements are determined by the destination country to be visited
and transited, and influenced by the country where the visitor originated
and those recently visited before arrival (Unit 3.2.1).
• travelers should pack a good medical kit and prescriptions for medicines
taken into another country (Unit 3.2.1).
• visitors requiring a vaccination against yellow fever must carry a vacci-
nation certificate (ICVP) as proof of vaccination for the immigration
authorities at entry (Unit 3.2.2).
• travelers can follow preventative measures to reduce the risk of illness
such as drinking bottled or boiled water, washing hands frequently or use
insect repellent (Unit 3.2.2).

3.3 Taxes, Customs, and Currencies
• Differentiate between taxes collected by agents versus those collected by

airports (Unit 3.3.1).
• Explain customs import and export regulations and when duties are
charged (Unit 3.3.2).
Unit Learning • Identify and evaluate the various forms of payment for travelers
Objectives (Unit 3.3.3).
The previous Units dealt with the document and health preparations necessary
to ensure an enjoyable visit to a foreign destination. This Unit will discuss
additional formalities relating to taxes, import and export restrictions on arriving
and departing passengers and why these regulations are imposed. Finally,
issues related to currency restrictions, changing money and alternative ways of
paying for purchases and services abroad will be discussed.
3.3.1 Taxes
Many countries levy (charge) various types of taxes on travelers. Payment is
collected on hotel bills, car rentals, as port charges on cruises and other
services. A departure tax is often charged when travelers leave the country.
Various transport or airport facility taxes are normally collected by travel agents
upon sale of a ticket.
Taxes relating to air travel, collected by travel agents, may be a percentage of
the air fare or a fixed amount as decided by the collecting country ticket price.
Any tax collected by agents must be recorded on the ticket coupon to show
how much and what type of tax has been collected.
Tax information can be obtained from the Global Distribution Systems (GDS).
Often the tax amount collected by agents is significant, sometimes as much as
a third of the fare. Always remember to quote the tax costs to customers at the
same time as the ticket cost. In some jurisdictions it is legally required for
agents and airlines to quote inclusive prices (fare plus all ticket taxes).
Taxes are sometimes levied for arriving, departing (or embarkation) or
transiting a particular country or airport and are a direct source of revenue for
the government. Other taxes are collected for airport security procedures,
noise pollution etc.
Customers should be informed of taxes that they are expected to pay.
Sometimes, taxes collected by the airport (and not on the ticket) must be paid
in local currency. This means that customers traveling to, from or via such
airports must carry some local currency bank notes (cash) for this purpose.
Key Learning Point

There are two types of airport taxes: those taxes collected from passengers at
airports, and those collected by travel agents together with the sale of a ticket.
3.3.2 Customs
Customs regulations govern the transport of personal articles, currency,
weapons for sport and animals or plants from one country to another. In other
words, every country sets regulations on what visitors can bring into (import) or

out of the country (export), and under what conditions. The regulations may
protect the country's population from the spread of dangerous infectious
diseases. Also, there are regulations that protect endangered animals and
plants. These are protected by the Convention of International Trade in
Endangered Species of Wild Fauna and Flora (CITES).
A country's customs office defines the goods or animals that can be imported
(brought into the country) or exported (taken out of the country) by visitors.
Some goods may be prohibited and are never allowed in or out. Others are
permitted, like tobacco, alcohol and perfume, as long as the established
maximum quantity is respected. When visitors attempt to import or export
goods in quantity that exceeds customs limits, a duty (like a tax) must be paid.
The duty collected by customs officials is another direct source of revenue for
governments.
Most countries allow concessions on certain items. Personal effects, such as
clothes, jewelry, cosmetics, a camera or laptop computer, etc., are not normally
subject to restrictions, because they are for personal use.
Customs also establishes currency import and export limits, requiring visitors to
declare the amount of local or foreign currency they carry into or out of the
country.
Unit 3.3: Taxes, Customs, and Currencies 207

Key Learning Point

Duty is similar to a tax and charged to persons by customs officials for entering
or exiting a country with goods in excess of permitted quantities.
3.3.3 Currency and Other Forms of Payment

Travel agents are often faced with questions from customers about exchanging
foreign currency, how much cash to take or what other form of payment to
travel with. Often the answer to customers' questions depends on many
different factors, including where they are traveling to, for how long, whether
they are traveling alone or in a group, in cities or in rural areas, etc.
Ultimately, it is the traveler's personal responsibility to decide how to finance
the trip. But travel agents may share best practices to help the customer keep
their funds safe while overseas. There are various options and forms of
payment available to the traveler.
Cash
In certain countries, the amount of currency that may be imported or exported
is limited. However, these limits are usually set high enough so as not affect the
average traveler.
Cash is the easiest form of payment, but it carries the most risk. Cash lost or
stolen cannot be replaced without insurance and now more and more travel
insurance policies are excluding cash from their coverage. Perhaps the best
advice is never to carry cash over the limit stipulated in your insurance policy.
Some cash is necessary, as certain items such as local transport cannot be
paid for in any other way. Good advice is to carry local currency cash in small
denominations unless travelers cannot get local currency. Then U.S. dollars
(USD) or English pounds (GBP) are best alternatives.

Key Learning Point

Travelers should know that some travel insurance policies limit the amount of
coverage for loss of cash and others do not cover loss of cash at all. The basic
rule is to discourage customers from carrying large sums of cash overseas.
Prepaid Travel Cards

Prepaid travel cards provide more security than cash because they can be
replaced by the card provider (usually within 24 hours) if lost or stolen. They
cannot be used without the correct PIN number. Credit Card companies and
foreign exchange companies offer travel cards that work like credit cards for
purchases and ATM withdrawals.
Here are some features and benefits of prepaid travel cards:
• They can be loaded with funds in several foreign currencies so travelers do
not need to carry cash in a bunch of different bank notes.
• They record each purchase transaction so that the traveler can budget
travel costs and record balances.
• These cards are not tied to a bank account, thereby reducing risk of identity
and financial fraud and preventing the traveler from creating debt and avoid
interest charges.
• The holder can withdraw cash money in a loaded currency when payment
by card is not accepted, such as public transportation train stations.
• Funds can be reloaded onto cards at any time if the run out of funds.
The prepaid travel cards apply fees in the form of activation fees, charges for
reloading the card, ATM charges or inactivity fees.

Key Learning Point

Prepaid travel cards are safer and more convenient than carrying cash
because if lost or stolen they can be replaced quickly and they record all
purchase transactions so that the holder can budget travel spend.
Credit Cards and ATMs

Today's travelers are much more likely to rely on credit cards and ATM
withdrawals, which usually offer better exchange rates and lower fees.
Using a credit card can limit or even remove the need to carry cash. Not only
can one pay for many goods and services by card, but they can also be used to
get cash advances at most banks and larger hotels.
The biggest advantage to using credit cards while traveling overseas is that
credit card purchases are exchanged at the interbank exchange rate. This is
usually the best rate that you can get for the currency exchange. While most
credit card issuers charge currency conversion fees each time you make a
purchase in a foreign currency, these fees are typically lower than those the
traveler would pay to convert their own currency at a foreign exchange bureau.
There are also a few cards that do not charge any foreign transaction fee at all.
Some merchants (particularly in Europe) offer dynamic currency conversion.
This means that the merchants will charge in the currency of the traveler's
home country rather than the local currency of sale. Keep in mind that the
traveler will almost always pay a conversion fee from the merchant (sometimes
up to 5 percent). Hence, the purchase transaction could cost the card holder
more than purchasing in the destination's local currency at the current
exchange rate. To get the best exchange rate and reduce the cost of
transaction, travelers are best advised to choose the local currency of sale
rather than their home currency.
Travelers should not rely solely on credit cards, as acceptability can vary
depending on how fast the credit card company is paying its bills. Travelers are
best advised to take another form of payment as a backup.
Key Learning Point

For travelers, credit card purchases charged in the local currency of sale
generally costs less in exchange rate than purchases processed in the
traveler's home currency.

Study Check 3.3
Choose the best answer.
1. All taxes relating to air travel are collected at airports. TRUE or FALSE?
(a) True
(b) False
2. All taxes relating to air travel collected by travel agents are recorded on the
passenger's .
(a) receipt
(b) ticket
(c) insurance policy
3. Import and export regulations are established and monitored by the state's
“Customs” office. TRUE or FALSE?
(a) True
(b) False
4. When is duty charged to travelers?

(a) On goods purchased in duty free airport shops while in transit between
flights
(b) On goods purchased and paid for in a foreign currency using an
exchange rate
(c) When a traveler exits or enters a country with an excess quantity of
goods
(d) When paying for store merchandise or goods with a prepaid travel card
5. Which is TRUE?
(a) Insurance replaces prepaid travel cards if they are stolen or lost
(b) Airport taxes are normally charged and paid in the local currency
(c) Credit cards do not apply an exchange rate on purchases made in
foreign currency
Apply Your Learning

Why not create a travel information website for customers and refer them to
popular websites such as Lonely Planet, TripAdvisor, World Travel Guide or
National Geographic which always provide updated information?
Subscribe to travel magazines and place brochures in your offices for
customers to read while waiting for their turn to be served.

3.3.4 Unit Summary

Having studied the topics in this Unit you should now be able to:
• Anticipate that the customer may pay taxes collected together with the sale
of a ticket and those collected by airports on departure (called embarkation
taxes), arrival or transit (Unit 3.3.1).
• Besides personal items like clothing, jewelry, cosmetics and electronic
equipment for personal use, the customs office of a state regulates what
visitors can import and export as well as quantities. Duties are charged to
visitors who import goods in excess of the maximum allowed, like a tax
(Unit 3.3.2).
• Most travelers visiting a new destination have questions about local
currency and how much to carry. Cash is the easiest but most risky form of
payment because if cash is lost or stolen there is no way to stop the finder
from spending it. Prepaid travel cards are safer and more convenient
because they can be loaded with multiple currencies and can be quickly
replaced if lost or stolen. Personal credit cards offer the most competitive
exchange rates when paying for merchandise in the local currency of sale
(Unit 3.3.3).

3.4 Timatic Solutions
• Describe what type of information can be found in all Timatic solutions

(Unit 3.4.1).
• Use TIMATIC solutions to determine traveler passport requirements (Unit
3.4.2).
Unit Learning • Use TIMATIC solutions to determine traveler visa requirements (Unit
Objectives 3.4.3).
By completing this Unit, • Use TIMATIC solutions to determine traveler health requirements (Unit
you will be able to: 3.4.4).
• Use TIMATIC solutions to determine applicable airport taxes (Unit 3.4.5).
• Use TIMATIC solutions to determine customs restrictions and allowances
per destination (Unit 3.4.6).
• Use TIMATIC solutions to search information on destination currency use
(Unit 3.4.7).
3.4.0 Unit Overview

Timatic solutions provide reliable and efficient information on travel require-
ments. In this Unit you will learn to find and interpret information on passports,
visas, health, customs and currency regulations in order to correctly advise
travelers.
3.4.1 Timatic Solutions

Timatic solutions display accurate information on travel formalities within
seconds. Users efficiently provide customers with reliable advice. There are
two types of solutions for different access to information: Timatic Mainframe
and TimaticWeb 2.
Timatic (Mainframe) is the electronic tool used mostly by airport check-in
agents to verify passenger travel documents. It is accessible through airline
check-in systems and in all major Departure Control Systems (DCS) at the
airport.
TimaticWeb 2, on the otherhand, is a web based tool designed for travel agent
use. This solution provides personalized advice on regulations and is easy to
use. More information and trial access can be found on the website
www.TimaticWeb 2.com.
Whether electronic or web-based, Timatic solutions provide advice based on a
traveler's profile and itinerary.
It is important to remember that Timatic supplies information for passengers
traveling by air. Different regulations may apply to passengers traveling and
arriving in a country overland or by sea. It is therefore, advisable to check those
regulations with the embassy or consulate of the traveler's destination.
Key Learning Point

Timatic describes travel formalities affecting international travelers traveling by
air. These include requirements for passports, visas, health, airport taxes,
customs imports and currency restrictions.
Unit 3.4: Timatic Solutions 213

3.4.2 Passport Section in Timatic

Ensure that customers understand that it is their responsibility to obtain all
documentation required for their journey. All passport requirements can be
found under the Passport Section. The Passport Section details three types of
information:
• Exemptions: persons who do not need a passport;
• Validity: how long the passport must be valid;
• Warnings: other requirements or condition for the traveler.
To research passport requirements, Timatic Mainframe and TimaticWeb 2
solutions require the following information about the traveler and the journey.
1. The traveler's passport nationality.
2. The traveler's country of permanent residence as some travelers do not
live in the country of passport nationality.
3. The passport's expiry date - it is essential that the passport meets the
requirement of validity for each country visited on the trip.
4. List all countries to be visited or transited as well as countries previously
visited prior to departure.
Passport Exemptions
Every passenger must hold a passport, unless they are in possession of a
document listed under “Passport Exemptions”. Passport exemptions list
nationals who do not need a passport to enter a country, but may need another
type of document.
Timatic (Mainframe):
TimaticWeb 2:
Figure 3.4.1—Sample Display of Passport Exemptions for entry to Algeria

In Figure 3.4.1, Timatic Mainframe and TimaticWeb 2 explain that passengers

arriving in Algeria need a passport, unless the passenger is a national (citizen)
of Algeria. The passenger who is an Algerian national without a passport must
present a national ID card to prove his/her Algerian nationality.
Document Validity
Travel documents must comply with the validity requirement of the country of
destination. Each country determines for how long travel documents held by
international passengers must be valid.
Timatic Mainframe (full text request):
Timatic Mainframe (specific entry):
TimaticWeb 2 (specific entry):
Figure 3.4.2—Sample Displays of Document Validity Rules

Figure 3.4.3, states that if a traveler holds a Laissez-Passer issued by the

United Nations then this traveler will not, in addition, require a passport to enter
Cape Verde.
Timatic Mainframe (full text request):
Figure 3.4.3—Passport Regulations for Entry into Cape Verde
Notice also the validity requirement in this example for Cape Verde states that
passports and other documents accepted for entry must be valid for the period
of the intended stay. This applies to Laissez-Passers issued by the United
Nations.
Let's examine some examples using the Timatic Mainframe and Timaticweb2
tools to request passport requirements for a variety of journeys.

Example 1:
Timatic Mainframe (specific entry):
Figure 3.4.4—Passport Regulations for Nationals of the United States Traveling to

Ecuador
Notice that the validity requirement for a national of the US who does not reside
in Ecuador is different from the validity requirement for a national of US who
resides in Ecuador.
Moreover, above entries show that a resident of Ecuador with a national ID
card issued to alien residents of Ecuador is allowed entry without a passport.
This does not apply to a nationals of the US who does not reside in Ecuador.
These are clear examples of how country of residence can make a big
difference in entry requirements.
Also worth noticing is that in both scenarios temporary passports are accepted.

Example 2:
Timatic (Mainframe) specific entry:
Figure 3.4.5—Passport Regulations for Entry into Brazil
Among the requirements listed under Passports is a section called “Admission

and Transit Restrictions” which may contain additional requirements and
overriding conditions.
In this example; a national of Iraq, with a passport valid for the period of
intended stay is allowed to enter Brazil, only if the passport is not a “S” series
passport.

WARNINGS AND ADDITIONAL NOTES

Moreover the following can also be found in the Passport section:
• Warnings: crucial information that when not complied entry/transit could be
denied.
Example 3:
TimaticWeb 2:
Figure 3.4.6—Passport Regulations for Entry into South Africa
• Additional information: provides relevant notes relating to the laws of the

country concerned.

Example 4:
Timatic-3
TimaticWeb 2:
Figure 3.4.7—Passport and visa regulations for entry into Norway for Canadian nationals
It is essential that the entire section be read through carefully. This ensures
that there are no special clauses overlooked that relate to your customer.
Some points to remember:
• If your customer is making any transit stops, then the Visa exemptions as
well as the Transit Without a Visa (TWOV) information of that country must
be checked. Problems have often been caused because agents have
failed to check visa requirements of transit countries.
• Minors: occasionally country information details regulations relating to
minors traveling in and out of the country.

Example 5:
Timatic Mainframe
TimaticWeb 2:
Figure 3.4.8—Passport regulations for entry into Chile for minors

3.4.3 Visa Section in Timatic

Travel sellers are responsible for providing advice on obtaining a visa.
Checking visa requirements is a process similar to that for passports. Timatic's
visa information should be read in its entirety.
The visa section assumes that all nationals need visas except for those listed
either under Visa Exemptions or under Visa Issuance if all described
requirements have been met.
It must be assumed that any passenger may be denied entry into any countries
where they arrive without the required travel documents. Airline check-in
personnel are tasked with verifying that passengers hold a visa for their
destination, and any transit points, when required. Unless visas can be granted
upon arrival at their destination, passengers without the necessary visas will
not be boarded.

Example 6:
Timatic Mainframe
Figure 3.4.9—Visa Regulations for Travel to Afghanistan
In this example all travelers except those listed under visa exemptions require
a visa for entry into Afghanistan.
The abbreviation TWOV stands for transit without a visa. Since Afghanistan
does not have transit facilities at the airport, passengers must have documents
for entry into Afghanistan.

Passengers listed under “Visa Issuance” (UN and Interpol officials) require a
visa and can obtain one on arrival in Afghanistan.
Note the dress recommendations for women visiting Afghanistan.
Example 7:
Figure 3.4.10—Warning for Travel to Costa Rica
The Warning requires travelers to hold onward or return tickets. This must be
adhered to.
Example 8:
Here is an example of passport and visa requirements for entry into the
Bahamas, as displayed in Timatic (Mainframe):
Figure 3.4.11—Passport and Visa Requirements for the Bahamas
Visas are obviously extremely important documents and therefore agents

should refrain from making travel arrangements, which include a penalty for
cancelling, until a visa has been granted. Alternatively, customers must be
advised of any cancellation fees in advance.

3.4.4 Health Section in Timatic

As a resource for health requirements, Timatic aims to describe exactly what is
happening at airports.
To check your passenger's health requirements:
• identify all countries to be visited and/or transited
• establish all countries which have been visited 6 days prior to arrival
• establish the order in which countries will be visited
• check the individual country listings under the heading “3. Health”
An example of this type of information is shown in the TimaticWeb 2 extract
below that displays health regulations for Tanzania and then for Denmark.
Example 9:

TimaticWeb 2:
Figure 3.4.12—Health Regulations for Tanzania

Example 10:
TimaticWeb 2:
Figure 3.4.13—Health Entry for Denmark

Timatic provides recommendations for yellow fever vaccinations and malaria

prophylaxis. Two types of immunization are described in Timatic: compulsory
Yellow Fever vaccinations and recommended immunizations. Only certain
countries require compulsory Yellow Fever vaccinations, whereas many more
may recommend certain immunizations especially if travelers are traveling
outside of urban areas. Agents should also refer customers to their family
doctor or a travel clinic.
In addition to health information listed under each country, a general health
information section of Timatic indicates different areas of the world where
infectious diseases such as cholera and yellow fever exist. If there are any
outbreaks (e.g. Ebola virus) resulting in immigration restrictions and require-
ments these will be published in the NEWS section as well as in the respective
country page.
3.4.5 Taxes Section in Timatic

In Timatic you will find information relating to the collection of airport taxes (also
see Unit 3.3.1 for more information on taxes).
The following extracts, of tax information on Brunei, Mexico and Finland,
demonstrate the various types of entry applicable in the section of Timatic.
Example 11:

TimaticWeb 2:
Figure 3.4.14—Tax Information Listed for Brunei Darussalam
Example 12:
Timatic Mainframe:
TimaticWeb 2:
Figure 3.4.15—Tax Information for Mexico

Example 13:
Timatic Mainframe:
TimaticWeb 2:
Figure 3.4.16—Tax Information for Finland
3.4.6 Customs Section in Timatic

The Customs section of Timatic describes regulations relating to:
• Duty free import and export
• Arms and Ammunition
• Wild flora and fauna
• Crew members
• Pets
• Baggage clearance
Customs regulations describe what passengers and airlines are allowed to
carry as duty free luggage and transport into and out of countries. There are
rules covering a large variety of items. And there are general principles, which
apply to many countries.
Key Learning Point

The term Customs refers to regulations governing the duty free import and
export of articles, carried as luggage or cargo by passengers and airlines.
Timatic's Customs regulations stipulate, for each country listed, what items are
permitted or prohibited.
All holiday purchases and gifts are subject to Customs regulation.

3.4.6.1 Pets
A final word on customs regulations concerning pets. For the purposes of
Timatic, pets are considered to be cats, dogs or pet birds. The regulations
apply to pets only if they are:
• Accompanied by a passenger as personal baggage either in the cabin
(if allowed) or in the hold of the aircraft
• Not destined for commercial purposes
If a passenger intends to transport a pet, the agent must consult the carrier and
enquire if this is permitted.
Most authorities require vaccination certificates for cats and dogs, as well as a
veterinarian's health certificate issued at the point of departure. Some countries
also insist on an import permit and, in certain cases, animals have to undergo a
period of quarantine.
Restrictions may also apply to transiting pets. Indeed, import or transit of
certain dog breeds may be prohibited altogether. Check the applicable
regulations before making any travel arrangements.
It is also necessary to consult the airline, as they may have their own
regulations concerning the transport of pets.
A country's customs information as described in Timatic may be lengthy and
span several pages. However, the information is quite simple to follow and
needs to be checked carefully to ensure that your passengers are aware of the
regulations.
Finally, read through Figure 3.4.17, which shows Ecuador customs regulations.

Example 14:
Ecuador
The following extract is from TimaticWeb 2 showing customs, currency and
airport tax requirements.
Figure 3.4.17—TimaticWeb 2 Customs Regulations for Ecuador

Apply Your Learning

A passenger is traveling from Amsterdam back to London having spent a
weekend visiting the famous flower and plant markets. Check the customs
regulations for the United Kingdom to discover whether plants and/or flowers
can be imported into the UK.
Now compare the regulations on the import of plants into the UK to those of the
Netherlands and see how they differ.
A good way of familiarizing yourself with the type of customs regulations is to
compare one country's rules with those of another.
3.4.7 Currency Section in Timatic

Currency information in Timatic is comprised of the following elements:
• Name of the country's currency and its three-letter abbreviation
• Limitation, if any, on local and foreign currency that an individual is allowed
to import and export. These limits may differ between non-residents and
residents
• Conditions applicable to import and export of stated limits (if any)
• Restrictions again, if any, applying to imports of precious metals such as
gold and silver
Travelers should be aware of the penalties for not complying with the
regulations. These range from heavy fines to imprisonment in some countries.

Example 15:
Canada
Figure 3.4.18—Currency Declarations for Canada using TimaticWeb 2
The individual country restrictions concerning the import and export of

currencies appear under the Canada Customs, Currency & Airport tax
regulations tab.
Key Learning Point

The Currency section of Timatic shows a country's currency and its three-letter
code.
Study Check 3.4
1. The information in Timatic's passport section describes the following for

each country listed: which citizens require a passport; who is exempt; how
long a passport must be valid; passport regulations relating to children;
warnings of citizens who may be refused entry; any other related matters.
TRUE or FALSE?
(a) True
(b) False
2. Timatic's health section describes only compulsory vaccinations. TRUE or

FALSE?
(a) True
(b) False

3. Timatic's entry for the health regulations for Denmark states: “No vacci-
nations are required to enter Denmark from any country”. TRUE or
FALSE?
(a) True
(b) False
4. The Brunei Darussalam tax referred to in Figure 3.4.14 is described in

Timatic as:
(a) An airport improvement fee
(b) A security fee
(c) A Passenger Service Charge
5. The tax amount referred to in Figure 3.4.14 and charged to passengers

departing from Brunei International Airport to Sydney, Australia is:
(a) Five Brunei Dollars (BND 5.)
(b) Twelve Brunei Dollars (BND 12.)
(c) The tax does not apply.
6. In Figure 3.4.15, which one of the following groups is NOT exempt from
Mexico's International Airport Departure Tax/Tourism Tax?
(a) Children under two years
(b) Nationals of Ecuador holding a diplomatic passport
(c) Nationals of Canada holding a diplomatic passport
7. Nigeria's local currency is known as the Naira (NGN). TRUE or FALSE?

Currency rules
Currency Import regulations
Local currency (Nigerian Naira-NGN) up to NGN 5,000.- in banknotes and
if declared upon arrival.
Foreign currencies for an unlimited amount, if declared upon arrival.
Currency Export regulations
Residents local currency (Nigerian Naira-NGN) up to NGN 5,000.- in
banknotes. Foreign currencies up to USD 5,000.-. Exceeding amounts
must be declared upon departure.
Non-residents local currency up to NGN 5,000.- in banknotes if declared
upon departure. foreign currencies up to the amounts imported and
declared on arrival.
(a) True
(b) False

8. All foreign currency taken into Gabon must be declared to the Customs
authorities. TRUE or FALSE?
Currency rules
Local currency (CFA Franc-XAF) and foreign currencies no restrictions if
declared on arrival.
Residents
– Tourist trips local currency (CFA Franc-XAF) and foreign currencies up
to XAF 200,000.- or equivalent.
– Business trips local currency or foreign currencies XAF 25,000.- per
day with a maximum of XAF 500,000.-, or equivalent.
Non-residents
– Local currency and foreign currencies up to XAF 200,000.- or equivalent,
or up to the amounts imported and declared.
(a) True
(b) False
9. India's local currency is the U.S. Dollar. TRUE or FALSE?

Currency rules
1. Local currency (Indian Rupee-INR) up to max. INR 25,000.-.
a. not allowed for nationals of Bangladesh or Pakistan residing outside
India;
b. if arriving from Bhutan or Nepal, only currency notes in denominations of
max. INR 100,- are allowed.
2. Foreign currencies unlimited. However, amounts exceeding USD 5,000.-
(or equivalent) in cash, or USD 10,000.- (or equivalent) in traveler's
cheques must be declared.
Foreign currencies include currency notes, traveler's cheques, cheques,
drafts etc. (Re)exchange only through banks and authorized money
exchange points.
1. Local currency (Indian Rupee-INR) up to max. INR 25,000.-.
2. Foreign currencies up to the amount imported and declared.
Foreign currencies include currency notes, traveler's cheques, cheques,
drafts etc. (Re)exchange only through banks and authorized money
exchange points.
(a) True
(b) False

3.4.8 Unit Summary

• The Travel Information Manual is the traditional printed version that
provides advice on travel documentation and requirements on a monthly
basis. However, it is better to use the electronic and web versions to better
cope with dynamic changes on a daily basis (Unit 3.4.1).
• The Passport Section of Timatic provides relevant information concerning:
○ Passport exemptions which list those nationals exempt from needing a
passport to gain entry into a country
○ Validity which shows the time period for which a passport and other
documents accepted for entry must be valid
○ Admission and Transit Restrictions which detail circumstances and
persons who will be refused either entry or transit through a country
○ Warnings which if left unheeded would mean that entry or transit can
be denied (Unit 3.4.3)
• Timatic solutions also show invaluable information pertaining to travel
requirements such as visa, health, taxes, customs and currency
(Units 3.4.3 to 3.4.7).

3.5 Travel Insurance
• Describe the travel insurance product (Unit 3.5.1).

• Describe the benefits of travel insurance products for travelers
(Unit 3.5.2).
• Explain how travel insurance is covered by laws and regulations in almost
Unit Learning all countries and that these differ from place to place (Unit 3.5.3).
Objectives • Identify common traveler emergencies (Unit 3.5.4).
By completing this Unit, • Identify the normal ways travelers can purchase travel insurance
you will be able to: (Unit 3.5.5).
• Explain why it is important for travel professionals to sell travel insurance
(Units 3.5.6 and 3.5.7).
• Interpret and use common travel insurance terminology (Unit 3.5.8).
• Explain standard travel insurance coverage and exclusions (Unit 3.5.9).
• State key issues affecting insurance claims (Unit 3.5.10).
3.5.0 Unit Overview

Murphy's law is an adage that says that if anything can go wrong, it will. No one
wants to think about all the things that can go wrong on a trip, but these things
can and do happen. Hence, it is important for you to sell travel insurance to
your customers for protection and peace of mind.
This Unit describes the benefits of travel insurance, the various types of travel
insurance available, the travel insurance policy and the issues affecting an
insurance claim.
Government and private health insurance do not pay for all of the costs related
to illness and injury when traveling. To protect themselves against theft of
personal property, delays to flights, trip cancellation and even bankruptcy of
key providers such as airlines, cruise lines or hotels, passengers also need
travel insurance, not just regular health or medical insurance.
3.5.1 Types of Travel Insurance

Selling travel insurance requires familiarity with your customer's needs.
Travelers with questionable health or who have a loved one at home in poor
health needs extra travel insurance. Travel insurance comes in many varieties.
Let's learn about popular forms of travel coverage.
3.5.1.1 Vacation Plan

The Vacation or Leisure Plan is by far the most common type of travel
insurance and the type of travel insurance most likely to be offered by and
purchased through a travel agent. Travel Insurance Review found at
www.travelinsurancereview.net estimates that over 90% of all travel insurance
policies sold are of this type. Travel agents should therefore make the effort to
read and understand the policy or policies which they offer to customers and if
anything is not clear they should contact the relevant insurance company to get
clarification. A Vacation Plan (also frequently known as Holiday Insurance,
Package Plan or Trip Insurance) is a single trip policy bought to cover a single
specific vacation. Vacation plans almost always include coverage for at least
the following:

• Trip cancellation, delay or interruption

• Medical/dental emergencies
• Emergency evacuation
• Baggage or personal effects
• Cancellation waivers
• 24/7 Assistance
Every travel agent should familiarize themselves fully with this type of policy,
including policy wording, exclusions and claims handling procedures.
3.5.1.2 Travel Medical Plan

Medical insurance is a less expensive alternative for travelers who just want to
be sure their medical expenses will be covered if they get sick or hurt on a trip.
Premiums are based on age, destination and the length of stay.
For example, a 50-year old traveling for 2 weeks might pay around $35 to $65
for a $50,000 medical coverage while a 65-year old might be charged around
$60.
This type of policy primarily covers:
• Medical expenses
• Emergency evacuations
Medical travel insurance should be highly recommended if traveling to
destinations where there is a risk of infection from diseases.
Most travel insurance plans work by reimbursement. Hence, remind your
customers to keep copies of all their medical documents and invoices prior to
leaving a treating facility such as a clinic or hospital. This will help submit a
claim when they return home.
3.5.1.3 Medical Evacuation (Medevac) Plan

This coverage is often included in a medical insurance policy but you can sell it
separately if that is the only protection that the consumer wants. This type of
travel insurance can be important if the passenger will be vacationing in an
area not known for quality health care. A typical medical airlift home can be in
the hundreds of thousands of dollars, an expense the traveler can avoid with
this type of plan. This plan focuses on emergency evacuation to take the
traveler to the nearest hospital or, if necessary, return home accompanied by a
qualified doctor or health care professional. It will not provide normal travel
medical insurance coverage.
3.5.1.4 Multi-trip or Annual Plan

This type of plan offers coverage similar to the Vacation Plan, but will cover
multiple trips throughout the period of the policy (usually one year). Depending
on the policy, trips may be domestic as well as international and the maximum
length of each single trip can vary in length according to the particular policy,
but is usually in the range of 30 to 90 days.
This type of policy is particularly suited to frequent travelers, including business
people.
Unit 3.5: Travel Insurance 239

3.5.1.5 Explorer or Adventure Plan

This plan, sometimes also known as Backpacker Plan, was designed initially
for young people heading off on long travels and were often bought by parents
for their own peace of mind.
Generally, it had a relatively young maximum age. However in recent years
with the growing trend for people of all ages heading off on long travels, the
age limit became less restricted and is often much the same as normal
insurance age limits.
In policies of this type, there is usually a minimum trip length (often 90 days) as
well as a maximum length which can be 365 days, but there are policies
available which cover longer periods, say up to 550 days.
These policies will often provide coverage for a wider range of sporting
activities than would be typical in a Vacation Plan.
3.5.1.6 Study Abroad Plan

Designed to cover students studying outside their home country, this type of
policy can also include coverage for internships in other countries.
3.5.1.7 Specialty Plans

Meant to cover one-off needs, these are ideal for travelers who have specific
concerns:
• Corporate kidnap, ransom and extortion coverage
• Car rental collision and road trip coverage
• Life insurance coverage
• Flight insurance (plays on traveler's fear of crashes)
Key Learning Point

There are many different types of travel insurance available. However, the
travel agent will most frequently deal with Vacation Plan insurance and
sometimes with Annual/Multi-trip policies. Travel agents should be fully familiar
with these types of policy. Travel agents should also have some knowledge of
other types of policies available and be aware that in particular cases, the
customer who will pay for the insurance product may be a protective parent, or
a company, not the traveler.
3.5.2 Benefits for the Traveler

Travel insurance protects the traveler's financial investment in the purchase of
transportation, accommodation and nonrefundable event tickets. Travel in-
surance pays for misfortunes that the traveler might have before and while
traveling. Depending on details of the coverage, it can pay for a range of
circumstances such as unplanned medical costs, delayed flights, replacement
of lost or damaged baggage or for new reservations due to involuntary
cancellation or because travel suppliers go out of business–in other words,
events ranging from inconveniences to calamities. In addition to offering
financial protection, travel insurance also provides specific extra services, in
particular 24-hour general or emergency assistance in the traveler's own
language.

Travelers who invest in travel insurance can protect themselves against risks
such as:
• Accidents, before or during a journey
• Trip interruptions due to cancelled services
• Cancellation or curtailment of journey due to illness of the traveler, his
companion or a close family member who is not traveling with the customer
• Theft of luggage and personal effects
• Health or loss of life
• Failure of service providers (bankruptcies)
Travelers who purchase insurance generally do so for these reasons:
1. To avoid having to pay the high cost of charges for medical treatment or
professional help when traveling.
2. To secure the safety of family members who are traveling.
3. To protect the money invested in the purchase of travel products and
services that are cancelled for reasons that are not in the traveler's control
or power.
4. To have access to a 24/7 global emergency and advice helpline in their
own language.
Key Learning Point

An experienced traveler knows that there are unplanned risks that can ruin
even the best-planned vacations. An experienced travel agent can help the
inexperienced traveler to understand this.
3.5.3 Travel Insurance by Jurisdiction

Travel insurance, as with other insurance products, is covered by various laws,
regulations and consumer protection provisions. These vary from country to
country, and even within a single country. For example, the laws and
regulations are not the same for every state in the USA so ‘jurisdiction’ must be
considered carefully.
In some jurisdictions, travel agents may be permitted to sell travel insurance. In
others, they may be permitted only to recommend travel insurance. They may
be permitted to sell travel insurance but only to customers who live within the
boundaries of their own jurisdiction. In some jurisdictions, it may be compulsory
to offer travel insurance, in others there may be no compulsion.
It is therefore essential that travel agents know the specific rules and laws for
their own jurisdiction and also that they update their knowledge regularly.
Travel trade organizations, conferences, training courses and newsletters are
generally good sources of updates, as are consumer organizations. It is the
responsibility of the travel agent to keep up to date and to comply with the laws
and regulations.

While there are countries that require agents to offer travel insurance, there are
some that have strict guidelines on how to sell travel insurance over the web.
For example, upon accessing a web-based travel service, consumers could
search flights by selecting a destination and dates of travel. Consumers next
had the option of adding a hotel or continuing with the flight only. After making
a selection, consumers then had to review a summary of the items ticked but
which included the purchase of travel insurance. In order to book the flight
without purchasing such insurance, the consumer was required to affirmatively
opt out of the purchase of travel insurance. Those who did not opt out, i.e. did
not de-select the travel insurance, were automatically enrolled and the cost of
the insurance was included in the total purchase price.
Many countries have concluded that this opt-out sale process is an unfair
method of competition and a deceptive trade practice. Hence, be sure to also
check your local competition laws to avoid paying hefty fines.
Key Learning Point

A travel agent must know which jurisdiction he or she is in. A travel agent must
know which laws and regulations apply in that jurisdiction to the sale of travel
insurance. A travel agent must keep up to date with changes in laws and
regulations.
Apply Your Learning

Discover whether there are any laws or industry regulations in your jurisdiction
that require travel professionals to include travel insurance as part of travel
product offering to all customers, or limit travel agents from selling insurance
directly to their travel customers.
Identify means to keep your knowledge of laws and regulations up to date.
3.5.4 Common Travel Emergencies

Standard travel insurance products cover the most common emergencies.
Travel insurance absorbs all or part of the cost for emergencies. The following
table describes the most common emergencies experienced by travelers. If the
traveler must be hospitalized at destination, and perhaps ultimately require
medical evacuation to their own country, then the cost for medical services
increases substantially to many tens of thousands of dollars or more. Without
travel insurance, the traveler would have to absorb the entire emergency cost.

The following table, which is by no means exhaustive, sets out some typical
emergencies experienced by travelers:
Common Travel Emergencies

Accident or sudden illness By far the most expensive cost a traveler may incur unless adequate
insurance coverage is held, especially if hospitalization and/or medical
evacuation is required. A 24/7 emergency helpline will assist in finding a
doctor or hospital where the traveler's language is spoken. Extra cover may
be purchased to include repatriation back to one's home country if needed.
Animal or Insect Bites This can range from something very minor to treatment for malaria, dengue
fever or rabies. In extreme cases, hospitalization may be required.
Cancellation of connecting Traveler arrives late at night from one flight to find their connecting flight is
flight cancelled. There are no further flights until the next day. Costs incurred can
include hotel, re-arranged flights and other items.
Loss or delay of baggage This can be relatively trivial–a delay of a few hours in a bag arriving. On the
other hand, it can be significant if a bag is lost or if the delays or missing bag
contains essential medication such as insulin.
Stolen wallet, passport, credit It is unlikely that a traveler in a foreign country will know where and how to
cards replace these items quickly, how to get emergency cash and how to make
the necessary police reports. A 24/7 emergency helpline will guide the
traveler through the process in their own language.
Bankruptcy of key service A cruise line, airline, tour operator or hotel goes bankrupt. Who will pay for
provider the traveler's non-refundable deposits and expenses if the traveler does not
have insurance? A 24/7 helpline will assist in getting traveler's to their
destination or to return home if the bankruptcy happens mid-trip.
Key Learning Point

Travel insurance offers travelers the opportunity to protect themselves
financially from the most common types of emergencies. Travel insurance can
also provide helpful services including a helpline, often 24 hours a day, 7 days
per week, offering general assistance and emergency travel assistance in the
traveler's own language.
3.5.5 Where Travelers Can Buy Insurance

Travelers have many options for purchasing a variety of travel insurance these
days, including a variety of online sources. They can buy insurance from:
• a travel agency
• a tour operator or cruise line
• an airline website
• a travel insurance “click and quote” website
• a bank
• a credit card company
• an insurance retailer at an airport
3.5.6 Why Buy Insurance from a Travel Agent

The travel agent knows the customer and knows the details of the trip which
has been booked. Most often, the travel agent will have met the customer face
to face and indeed may have booked the traveler's vacation and other travel
needs over several years.

The travel agent is thus uniquely placed to understand the exact needs and
concerns of the customer thus ensuring that the customer pays for the
coverage they require, but not for anything which that particular customer might
not need.
Some cruise lines and tour operators offer travel insurance as an extra option
to purchasing a package. Therefore, when selling a cruise, coach or package
tour product, the travel agent may find it easiest to offer the supplier's
insurance coverage. Unfortunately a tour operator's or cruise line's insurance
product rarely offers financial coverage should the tour operator or cruise line
go out of business.
The value of medical expense coverage purchased as a package option will
likely also be lower than in a travel insurance product sourced by the travel
agent directly from an insurance company.
In addition, some travel suppliers' or wholesalers insurance policies do not
refund money that the traveler may have had to spend out of pocket. Instead,
they reimburse the traveler in the form of a credit for a future trip, which is not
always convenient for the travel customer.
Key Learning Point

Travel insurance sold by a tour operator such as a packaged holiday company
or a cruise line tends to be less inclusive than individual and packaged travel
insurance sold by travel agencies or by travel insurance companies.
It is the travel professional's duty to help the customer explore the reasons for
traveling, to identify potential risks and to offer a travel insurance product to
protect the travel customer from such risks.
3.5.7 Why Travel Agents Should Sell Travel

Insurance
There are three main reasons why travel professionals sell travel insurance:
1. They want to deliver a high level of service and genuinely care that
customers are protected. Informing customers of travel insurance products
and services is part of delivering good customer service.
2. Depending on jurisdiction, travel professionals may also be required to
offer travel insurance as a result of local industry laws or regulations.
3. The agency generates commission income. Travel insurance can be a
profitable travel product for travel agencies.
If travel insurance is not offered to the customer and the customer travels
without travel insurance coverage, the outcome may be tragic. The customer
could suffer extreme financial loss. Customers' lives may be at risk due to lack
of medical intervention if they become ill far away from home.
Depending on the jurisdiction, the travel agency may also face prosecution or
risk being sued for negligence for not offering travel insurance in the first place.

Key Learning Point

Travel professionals should offer travel insurance to customers because it
helps the customer, the law may require it in the relevant jurisdiction and
because travel insurance products generate commission revenues.
Apply Your Learning

Research and list travel insurance suppliers in your market.
Compare prices as well as coverage of key items such as medical expense
coverage, medical evacuation expense, cash refunds or credits/vouchers for
trip cancellation.
3.5.8 Travel Insurance Terminology

Terminology or wording in insurance policies will vary from policy to policy and
from jurisdiction to jurisdiction. However, there are some common words which
it is helpful to understand and which the travel agent may have to explain to a
customer.
Term Definition
Beneficiary The insured person may name a beneficiary person or a group that will
receive insured benefits (or policy proceeds), especially in the case of death
to the insured person while traveling. If a beneficiary is not named in the
insurance policy, then in case of death to the insured, all benefits are paid to
the insured's estate.
Benefits The amount paid by the insurance company to the insured customer or
beneficiary, as agreed and stated in the insurance policy.
Claim A request for payment or refund by the insured customer for protection or
coverage included in the insurance policy.
Coverage also called The description of losses that will be paid by the insurance company and the
“inclusions” amount to be paid to the insured person or beneficiary for such losses.
Deductible also called “excess” The amount the insured customer must pay for a loss before the travel
insurance company starts paying. The insurance company is only respon-
sible to pay for losses that exceed a base amount. The deductible amount is
specified in the insurance policy.
Exclusions A description of specific losses not covered in an insurance policy. The
insured traveler cannot claim these exclusions, as the insurance company
will not pay for them. The customer may have to purchase additional
insurance to cover such exclusions.
Limitations The maximum amount of money the insurance company will pay on any
claim for losses, as stated on the insurance policy.
Pre-existing conditions It is important to understand coverage for pre-existing conditions. Many
insurance plans will not cover any illness treated or diagnosed before leaving
one's country. If the traveler has a serious medical problem before traveling,
the insurance company may consider the traveler to be too high of a risk to
insure. Some travelers with a pre-existing illness can buy special coverage. It
might take longer to purchase as the risk to the insurer must be assessed by
a qualified expert at the insurance company. This type of coverage is more
expensive but will protect the traveler if necessary.

Term Definition
Policy A policy is a written document or certificate issued in the travel customer's
name stating that the customer agrees to accept insurance coverage. The
policy is issued by the insurance company or by the travel professional. A
policy number appears on each insurance certificate. The insurance policy is
a contract between the insurance company and the party or person insured.
The insurance policy describes the insurance type purchased and the
compensation to be paid for specific losses. It is recommended to make a
copy of the insurance policy and safely store it with family or friends.
Public Transport Any publicly licensed aircraft, sea vessel, train or coach on which the
customer is booked to travel.
Premium A premium is the insurance cost or the amount paid by the traveler for
insurance coverage or protection for specific risks and for a specified period
of time.
Rider also called An insured traveler may wish to add an extra and optional coverage to an
“endorsements” insurance policy that is not included in the standard insurance policy or
program. There are additional premiums to pay for riders. For example, a
War & Terrorism Rider is an optional coverage that is not part of a basic
travel insurance policy.
Key Learning Point

An insurance policy certificate is an important document and the traveler
should keep this in a safe place. The traveler should also leave a copy of the
policy and related documents with a responsible person who is not going on
the trip.
It is important to understand travel insurance terms and definitions in order to
explain them to the travel customer. It is also important to ensure that the travel
customer's probable risks are insured.
3.5.9 Standard Travel Insurance Coverage and

Exclusions
The following table describes some of the common risks covered by standard
travel insurance policies. It may be possible to purchase additional insurance to
cover some exclusions.
Common Risks Protected By Standard Travel Insurance (Coverage)

• Medical expenses of an emergency nature
• Emergency evacuation/repatriation
• Overseas funeral expenses
• Accidental death, injury, dismemberment or disablement benefit
• Cancellation
• Delayed departure
• Loss, theft or damage to personal possessions and money (including
travel documents)

Common Risks or Conditions Not Protected By Travel Insurance

(Exclusions)
• Pre-existing medical conditions
• War or terrorism–(some specialist travel insurance plans may cover this
risk)
• Pregnancy-related risks–insurance is not generally available after
30 weeks of pregnancy
• Injury or illness caused by the used of or incurred when under the
influence of alcohol or drug use
• Travel by motorcycle (although low powered motor cycles are often
included)
• Medical procedures or treatments related to medical travel
Travel Insurance Add-On Options (Riders) Can Protect Against Specific
Risks
• Pre-existing medical conditions (e.g. asthma, diabetes)
• High-risk sports (e.g. skiing, scuba-diving, mountain climbing)
• Travel to high-risk countries (e.g. due to war or natural disasters or acts of
terrorism)
• War and terrorism travel insurance: new to the industry and can be
purchased as an add-on or extra to the main travel insurance policy. Not
all travel insurance companies have this product or coverage available
• Pet travel insurance: some policies include trip cancellation coverage for
pets if the pet owners remain with their pets who need urgent treatment or
are very ill
Key Learning Point

Travel agents should emphasize the need for customers to make honest and
full declarations of all health and other matters which might give rise to the
insurer rejecting a later claim. It is false to secure a cheaper premium but then
find that a substantial claim is rejected because of something the customer
should have disclosed to the insurer.
Apply Your Learning

Take the time to investigate how much it would cost for a visitor without travel
insurance coverage to be hospitalized in your city and also in one or two of the
most common travel destinations of your customers. Find out what the cost of a
bed would be in the emergency ward. This can range from the equivalent of a
few hundred US dollars per day to several thousand US dollars per day, plus
doctor's fees and treatment costs. Imagine the traveler being hospitalized for
10 days and what they would have to pay if they were not covered by travel
insurance.

3.5.10 The Insurance Claim

If disaster strikes while travelers are on holiday–or even before they leave–they
will likely have to make a travel insurance claim. This can be a difficult process,
especially if the customer is already in distress. The travel agent is not usually
involved in the claims process but should be aware of the most important
issues.
Key instructions and advice to tell your travel customer include:
Insurance documents
Travelers should take their insurance documents with them as well as leaving a
copy safe with someone responsible at home. The policy documents will give
not only the details of the coverage but also the policy number and the phone
number of the claims line. It will also give a number for a 24 hour helpline
service if this is part of the insurance package.
Call the insurer promptly
Although most policies will give a maximum period of as long as 30 to 90 days
to submit a claim, a customer should contact the insurance company as soon
as they think a claim is possible. Remember too that if the customer needs
medical treatment while they are traveling, they may first need to seek
authorization from the insurance company.
Contact the police
Anyone who is a victim of theft or other crime while they are on holiday should
contact the police, preferably within 24 hours of the incident. The insurer will
almost certainly request a police report or crime reference number before
approving a claim. The insurance company helpline should be able to give
information about the process in a foreign country.
Supply evidence
The insurer will want evidence to support your claim. If a customer has to
cancel a holiday due to ill health, their doctor will have to complete a medical
form. And if personal belongings are lost or stolen, the customer might need to
supply receipts as proof of value and ownership.
Lost baggage is a common problem, particularly with certain airlines. If it
happens, the customer should report to the airline baggage desk and complete
and take a copy of a ‘property irregularity form’ at the airport.
Tell the truth
Avoid the temptation to make a fictitious or exaggerated insurance claim. It is
not ultimately a victimless crime as it pushes up premiums for everyone. It is
also a criminal offence and people have been fined or imprisoned for doing
this.
Know your limits
A travel insurance policy will only pay out up to a certain amount in the event of
a claim–and the amount could vary according to the type of claim. The details
of all the claim limits will be in the policy documents.
Also, bear in mind exclusions. For example, if an injury has happened while the
traveler is drunk or engaging in a hazardous sport, the claim might not be
covered.
Remember the excess
The policy excess is the amount the traveler has to pay towards each claim.
So, if the excess is $100 and the claim is for $500, the insurer will pay $400.

Key Learning Point

The travel agency is not involved in the insured's claim other than to offer
advice and direction. The most important advice is that the traveler should
make contact with the insurer immediately. In case of accident or medical
emergency it is essential to contact the insurance company immediately as
prior authorization will almost certainly be required in advance from the
insurance company before the cost of any medical treatment will be covered.
In order to sell insurance it is important to find out if the customer already has
some form of insurance.
If they have a homeowner insurance that covers the loss/theft of electronic
equipment, then they might not welcome an aggressive push to purchase
insurance for lost baggage or personal effects.
Some credit cards also reimburse the card holder for lost or delayed luggage.
The credit card used to buy the ticket or tour may pay up if the airline or tour
operator goes bankrupt before a trip.
An airline also compensates for lost luggage as shown in each airline's
conditions of carriage for passengers and baggage. For example, if an airline
loses the luggage, the passenger can be compensated up to $3,000 for a
domestic flight; $1,500 for an international journey. Amounts reimbursed for
domestic travel vary depending on local laws where the airline is registered.
This also depends on international treaties like the Warsaw Convention of 1929
as amended by the Montreal Convention of 1999.
But airlines base their reimbursement on what the items were worth at the time,
not what it costs to buy new ones. Generally, cash, jewelry and furs are
excluded.
Often you will find that customers do not understand the risks they may
encounter when traveling or that certain insurance they already hold (such as
on a credit card) may not provide enough protection.
Apply Your Learning

Ask a travel insurance company to give you a sample policy. Identify and
interpret the most important clauses.

Study Check 3.5
1. Travel insurance will reduce the traveler's risk.

(a) health
(b) financial
(c) safety
(d) cancellation
2. Which medical service is normally most expensive?

(a) Medication or drugs
(b) Ambulance transportation
(c) Hospitalization
(d) Examination by a doctor
3. A cruise line's insurance product normally offers better cover age than an
independent travel insurance company. TRUE or FALSE?
(a) True
(b) False
4. Travel insurance is purchased to .

(a) eliminate the need for a visa to enter a foreign country
(b) avoid the risk of absorbing high medical costs when traveling
(c) reduce the cancellation penalty on restrictive air fares
(d) pay for the cost of the trip and personal needs while traveling
5. Which is true in every jurisdiction?

(a) Travel agencies cannot sell travel insurance products to their cus-
tomers.
(b) Travel agency customers cannot buy travel services without insurance.
(c) Travel agencies must include insurance in every travel product sold.
(d) Travel professionals must describe the benefit of travel insurance to
customers.
(e) The travel agent must comply with the relevant laws and regulations in
their jurisdiction regarding sale of travel insurance.
6. A deductible or excess is .
(a) a loss or risk not covered by the travel insurance policy
(b) a risk that is included for coverage in the insurance policy
(c) the maximum paid by the insurance company for a loss
(d) the amount of expenses that must be paid out of pocket by the
customer before an insurer will pay any further expenses

7. The payment made by the customer for insurance coverage is known as:
(a) A benefit
(b) A claim
(c) A premium
(d) A rider
8. What is a pre-existing condition?

(a) The deadline for submitting an insurance claim
(b) The addition of a new insurance benefit to a policy
(c) A health problem existing before buying insurance
(d) A description of insurance coverage in a policy
9. Which is normally not covered by standard travel insurance plans?

(a) Medical coverage
(b) War or terrorism coverage
(c) Cancellation coverage
(d) Loss or delay of baggage
10. Which is a feature of Trip Cancellation Insurance?

(a) Coverage for interruptions due to a flight cancellation
(b) Coverage for emergency medical care expenses
(c) Coverage for cancellation penalties due to illness
(d) Coverage for elderly persons over 79 years
11. Persons aged between years are eligible for explorer or backpacker
insurance.
(a) 18 and 55
(b) 25 and 81
(c) 18 and 35
(d) 18 and 30
(e) Age limits vary from insurer to insurer
12. The insurance claim process is between the insurance company and
the .
(a) travel agent professional
(b) insured traveler
(c) transportation company
(d) traveler's lawyer

13. When customers decline to purchase insurance, what form is signed?

(a) booking form
(b) customs declaration
(c) check
(d) waiver
3.5.11 Unit Summary

In this Unit we started by understanding what travel insurance is, why travelers
should purchase it and why travel professionals should sell it. A travel
insurance policy is a legally binding contract between the insurer and the
insured. It is as important to read the terms and conditions of the insurance
policy as for any other contract. Ignoring the statutory conditions of an
insurance policy can result in the cancellation of the insurance policy and
denied claims.
In some jurisdictions, travel professionals are obliged to offer travel insurance
to every customer, because it may be legally required and also because they
care about their customers.
A travel professional must understand insurance terminology in order to explain
the terms to the travel customers.
This unit discussed the various types of insurance coverage that protects the
customer from unplanned emergencies.
Finally, key issues relating to travel insurance claims were reviewed.

Module Summary
In this Module you have learned about:
• the various types of passports, visas, and other travel documents and how
to advise customers to obtain the documents necessary for their travels
(Unit 3.1).
• health requirements and preventative measures for travelers (Unit 3.2).
• the collection of taxes relating to travel. And interpret customs and
currency information for customers (Unit 3.3).
• the use of different forms of payment for international travelers (Unit 3.3).
• responsiblities relating to travel documentation and providing correct and
up-to-date information to customers (Unit 3.4).
• various information supplied by Timatic relating to regulations for
passports, visas, health, airport tax, customs and currency (Unit 3.4).
• the value of purchasing travel insurance and explain the essential
elements of the contract (Unit 3.5).
In essence, this Module explained how and why you should supply customers
with accurate, up-to-date information on various formalities governing inter-
national travel.
Module Summary 253

Review Questions
Unit 3.1
1. A passport is an official document that may (under certain conditions) allow
citizens of one country legal entry into another. TRUE or FALSE?
(a) True
(b) False
2. Joint passports are issued for friends traveling together. TRUE or FALSE?
(a) True
(b) False
3. Schengen area is founded on an agreement by a group of European

countries that abolished passport and immigration controls for travel within
and between these countries. TRUE or FALSE?
(a) True
(b) False
4. A passport is normally valid for:

(a) 4 years
(b) 10 years
(c) 20 years
5. Other travel documents that can be used instead of passports are:

(a) Identification cards
(b) Visas
(c) Health certificates
6. Which is required before applying for a visitor visa?

(a) An interview with the issuing office
(b) An electronic travel authorization
(c) A valid passport

Unit 3.2
1. Yellow fever vaccination is specifically required in normal travel and is only
necessary for certain countries. TRUE or FALSE?
(a) True
(b) False
2. Travelers are exposed to potential medical problems due to extremes of

temperature, altitude or motion; diseases and illnesses caused by unsani-
tary conditions; simple cuts, bites or scratches. TRUE or FALSE?
(a) True
(b) False
3. In hot weather travelers should take care to drink plenty of water. TRUE or
FALSE?
(a) True
(b) False
4. At high altitudes water boils:

(a) In 10 minutes
(b) At a lower temperature
(c) At a higher temperature
5. Failure to obtain a required compulsory vaccination and health certificate

before traveling to another country may result in a passenger:
(a) Being deported or quarantined
(b) Needing to pay a fine
(c) Having to remain at the arrival airport
Unit 3.3
1. Which form of payment records and controls spending?
(a) Prepaid travel cards
(b) Credit cards
(c) Cash
2. When paying by credit card abroad, it is best to pay for merchandise in the
home currency. TRUE or FALSE?
(a) True
(b) False

3. Which state or country agency regulates what travelers can bring into or
out of a country?
(a) Customs
(b) Duty free shops
(c) Immigration
4. Duties collected at the airport are a direct source of revenue

for .
(a) governments
(b) airports
(c) airlines
5. Which is a feature of prepaid travel cards?

(a) It can covers purchases made in one currency
(b) It debits the holder's bank account per purchase
(c) It allows the holder to withdraw cash
(d) It expires when funds are totally consumed
Unit 3.4
1. The agent must explain all travel document requirements to each passen-
ger. TRUE or FALSE?
(a) True
(b) False
2. Timatic only supplies information for international passengers traveling by

air. TRUE or FALSE?
(a) True
(b) False
3. Passport exemptions list that do not need to show a

passport to enter a country.
(a) Nationals
(b) Airlines
(c) Travel documents
4. Which information must be provided to determine health requirements for

entry to a destination country?
(a) Visitor passport nationality
(b) Intermediate connecting cities before arrival at the destination
(c) Delivering airline and flight information

5. For international travel to Rome with a same-day connection in Milan,

baggage must be cleared in Rome. TRUE or FALSE?
(a) True
(b) False
6. Timatic describes the country's regulations governing the following docu-

ments and formalities: passports; visas; health; airport tax; customs and
currency. TRUE or FALSE?
(a) True
(b) False
7. In addition to country listings, Timatic provides travel agents and airline

staff with up-to-date general information relating to:
(a) The twenty most popular destinations
(b) Climate
(c) International health regulations and general health information
8. What information is found in the passport section of TIMATIC?

(a) Which citizens, intending to travel to another specified country, do or
do not require a passport or other equivalent identity document
(b) The amount of foreign currency a traveler is permitted import
(c) The cost of obtaining a passport
9. What information is found in the visa section of TIMATIC?

(a) The cost (if any) of the visa
(b) Nationals who do not require a visa to enter a particular country
(c) Visa requirements for merchant seamen
10. What information is found in the health section of TIMATIC?

(a) Vaccinations that are either required or recommended before traveling
to a particular country
(b) The nearest travel clinic offering a vaccination service
(c) General travel advice

Unit 3.5
1. Why should travel professionals sell travel insurance to their customers?
(a) Insurance reduces the risk of accident for travelers
(b) Insurance protects travelers from unplanned emergencies
(c) Insurance covers every risk or loss while traveling
(d) Insurance allows travelers to change their travel plans
2. What type of medical treatment has the highest cost?

(a) Air ambulance service
(b) Hospitalization
(c) Flu medication
(d) Gastrointestinal treatment
3. A claim should be submitted within .

(a) 90 days of leaving home
(b) 90 days of an accident
(c) 90 days of returning home
(d) 90 days of leaving a hospital
4. Travel insurance plans sold by tour operators normally do not include

insurance coverage.
(a) Hospital Medical
(b) Trip Cancellation
(c) Third Party Cancellation
(d) Baggage loss
5. Which document confirms that a travel agency customer has refused to

buy travel insurance?
(a) An insurance application form
(b) An insurance policy
(c) An insurance declaration form
(d) An insurance claim form
6. What documents must be submitted together with the insurance policy

when making an insurance claim?
(a) Receipts for emergency purchases
(b) Copies of travel reservations
(c) A passport and destination visa
(d) A confirmation of coverage form

7. Insurance companies pay commission to travel agencies that sell their

insurance products. TRUE or FALSE?
(a) True
(b) False
8. Medical Hospital insurance coverage includes treatment for injuries caused

by bungee jumping and deep sea diving. TRUE or FALSE?
(a) True
(b) False
9. What reference number is quoted in all correspondence between the

insured customer and the insurance company?
(a) The credit card number
(b) The passport number
(c) The reservation booking number
(d) The insurance policy number

Glossary
Accidental Death Benefit: An amount of insurance, stated in the policy, that is
payable when the proximate cause of death is accidental in nature, e.g. death
by heart failure resulting from an automobile accident would be considered an
accidental death.
Age Limits: Minimum or maximum ages established by insurers for eligibility
for certain kinds of insurance offered, typically life, health and disability
insurance.
Alien Residents: Nationals who have taken up official residence (permanent
or temporary) in a country other than that of their nationality. There are
instances when the country of residence may alter entry requirements.
Application: A request for insurance. This may be done verbally, in writing or
by using a printed form and becomes part of the insurance contract.
Baggage and Personal Effects Insurance: Insures against loss of the
insured's luggage and personal effects. Often forms part of a travel insurance
package policy where coverage is excess over that provided by others.
Beneficiary: The person designated by the insured to receive policy proceeds,
in the event of the death of the insured.
Benefits: The amount payable to the insured person by the insurance
company as described in the insurance policy.
Bilateral agreement: An agreement between two countries or states.
Booster: A further injection after the initial vaccination and that extends the
period that an individual remains immune against the disease.
Cabin: The part of an aircraft in which passengers are seated.
Cancellation Penalty: A non-refundable amount charged to the traveler for
cancelling the trip prior to the origin departure date. This penalty is insurable by
trip cancellation insurance if the trip is cancelled for reasons listed in the
insurance policy, e.g. the insured traveler is sick or a close family member has
died.
Check-in: A procedure that all passengers go through before receiving a
boarding card and being permitted to go into the departure lounge and wait to
board a flight. Check-in involves an examination of documents (passport, ticket
and visa), issuance of a boarding card and acceptance of luggage by the
airline.
Claim: A request for payment by an insured person according to the insurance
policy.
Claimant: An insured person who makes a claim after suffering a loss.
Conditions of an Insurance Policy: The general conditions or requirements
for insurance, including how the policy can be cancelled and what the insured
should do in the event of a loss.
Contract of Insurance: There are 6 essential elements: (1) offer and
acceptance, (2) consideration, (3) legal object, i.e. purpose of the insurance
must not be illegal, (4) parties to the contract must be legally capable of
contracting, (5) insurable interest, and (6) utmost good faith.
Coverage: Amount of protection purchased.

Crew Members: Airline personnel (pilots or flight attendants) traveling on duty

in a commercial aircraft. They can be operational crew who are assigned to
operate on a flight, or a deadheading crew who are being positioned by the
airline to operate on a different flight.
Declarations: Statements, signed by the insured, promising that information
given by him is true.
Deductible: The amount paid by the insured customer when submitting a
claim.
Deported: This means being refused entry. Deportation results when an
individual arrives at a port of a country that he/she is not eligible to enter. The
individual may not possess the valid documents such as visas or health
certificates. Deportation may occur after entering a country if the visitor violates
local laws or the conditions of his/her visa.
Duty-free: Refers to goods sold at airports, on which customs duty is not
levied.
Effective Date: The start date of an insurance policy, or the date that
additional coverage begins.
Eligible Expense: Expenses that can be claimed from (and paid by) the
insurer.
Endorsement: A document that changes part of an insurance policy/
contract.
Exclusions: Risks and emergencies not covered and paid by the insurance
policy.
Expatriates: Individuals not living in their original homeland.
Expiry Date: In relation to travel documents, the date on which a document
(e.g. passport) is no longer valid.
Government Advisories: Warnings posted by governments to their citizens
about traveling to specific destinations, usually in the aftermath of political
problems, weather disturbances or health-scares.
Hold: The part of an aircraft in which luggage and cargo is transported.
Infected area: Refers to a country or area within a country where infectious
diseases such as yellow fever or cholera exist or have recently existed.
Injury: Any accidental bodily injury.
Insurance: A contract in which the insurer agrees to reimburse the insured for
loss caused by specified risks.
Insured: The person or group being protected by an insurance policy.
Insurer: The insurance company providing insurance coverage.
Laissez-passer: A document allowing the holder to pass; safe conduct.
Limitations: A maximum amount of money the insurance company will pay on
a permitted claim.
Long-haul: Term referring to longer flight journeys (lasting six or more hours).
Minors: The age at which a person is defined as a minor varies per country. If
no age is specified, a minor is defined as a person under the age of 18 years.
Nationality: Can be established under “nationality” or “national status” on the
personal data page of a passport. Some countries issue passports to other
nationalities.
Glossary 261
Permanent Disability Benefit: This coverage is for severe injuries received

while traveling–such as a loss of limbs or damage to eyes.
Policy: A legal contract that includes details of the insurance coverage
including all clauses, riders, endorsements and renewals.
Pre-existing Condition: A medical condition that exists prior to traveling and
may limit or deny insurance coverage.
Premium: The amount paid by the insured for coverage under an insurance
contract for a specified period of time.
Quarantine: Isolation imposed to prevent infection.
Reconfirmation: Passengers are normally required to telephone carrier and
(re)confirm their intention to fly.
Refugees and Stateless Persons: Those granted asylum or those without
nationality or citizenship holding travel documents issued to non-nationals.
These may be referred to as Travel Documents, Certificates of Identity,
Document of Identity, Titre de Voyage, Laissez-Passer, Alien's Passport, or
even “Passports”.
Renewal: The extension of an insurance policy for another term.
Rider: A benefit not included in the standard insurance plan, but can be added
by paying an additional premium.
Risk: A potential for loss.
Schengen Agreement: Agreement to remove immigration controls for travel
within the collective territory of the Schengen Member States, creating a
“borderless” region known as “Schengen area”.
Short-haul: A term that refers to short flights (up to three hours)–usually
domestic flights and flights between neighboring countries.
Statutory Conditions: Standard legal conditions in an insurance policy.
Stopover: A term that refers to an intermediate destination visited between the
city of origin and the ultimate destination.
Transit: An intermediary stop en route between the passenger's origin and
ultimate destination.
TWOV (Transit Without Visa): Passing through an international transit area of
an airport in order to board a connecting (or to proceed by the same) flight,
without entering the country (i.e. clearing the immigration).
Travel Insurance Application: The printed or online form provided by a Travel
Agent confirming the purchase of travel insurance.
Trip Interruption Insurance: Provides coverage from the time travel com-
mences until the return home. This insurance reimburses losses caused by
returning earlier or later than planned for reasons allowed by the insurance
policy (e.g. a traveling companion falls sick).
Waiver: Written confirmation that one intentionally refused to purchase travel
insurance.


Study Check 3.1 1. (a) True
1. b 2. (b) False. Timatic also indicates any rec-

ommended vaccinations.
2. b
3. (a) True. See Figure 3.4.13.
3. b
4. c
4. d
5. b
5. c
6. b
6. b
7. (a) True
7. a
8. (b) False. No limits exist on the import into Gabon
8. a of foreign currency. But all foreign currencies
9. d imported must be declared on arrival.
10. d 9. (b) False. It's the Indian Rupee.

1. (b) False. Travelers should drink bottled mineral 1. b
water or purified water only. 2. c
2. (a) True 3. (b) False
3. (a) True 4. b
4. c 5. d
5. c 6. d
6. c 7. c
7. d 8. c
8. b 9. b
10. c
Study Check 3.3
11. c
1. (b) False. Only some are collected at airports.
12. b
2. (b)
13. d
3. (a) True
4. b
5. b
Answer Key 263

Review Unit 3.4

Unit 3.1 1. (a) True. A receipt may further clarify booking
conditions.
1. (a) True. A passport is also used as a means of
identification. 2. (a) True
2. (b) False. Joint passports are only issued to family 3. a
members. 4. b
3. (a) True. The member countries are: Austria, 5. (a) True
Belgium, Czech Republic, Denmark, France,
Estonia, Finland, France, Germany, Greece, 6. (a) True
Hungary, Iceland, Italy, Latvia, Lithuania,
7. c
Luxembourg, Malta, Netherlands, Norway,
Poland, Portugal, Slovakia, Slovenia, Spain, 8. a
Sweden, Switzerland and Liechtenstein.
9. b
4. b
10. a
5. a
Unit 3.5
6. c
1. b
Unit 3.2 2. a
1. (a) True. Other recommended vaccinations in- 3. c

clude those for infectious diseases such as Hepa- 4. c
titis and Poliomyelitis, but do not require the issue
of a health certificate. 5. c
2. (a) True 6. a
3. (a) True. It can be dangerous for a traveler to 7. (a) True

become dehydrated. 8. (b) False
4. b 9. d
5. a
Unit 3.3
1. (a) True
2. (b)
3. (a) True
4. a
5. c

Module 4:
Air Transport Essentials
Module Prerequisites • Completed the Module 1 about The Travel and Tourism Industry and the
Travel Professional and Module 2 Geography in Travel Planning
• Name the busiest airports and describe airport facilities for departing,
arriving, and transit/transfer passengers (Unit 4.1).
• Define pre-flight and in-flight products and services available to passen-
gers with various needs and preferences, and interpret class of service
and seating plans (Unit 4.2).
Module Learning
Objectives • Describe ancillaries (Unit 4.3).
By completing this Module, • Outline the relevant rules and procedures for the carriage of checked and
you will be able to: unchecked baggage, and domestic pets (Unit 4.4).
• Demonstrate correct usage of printed, online and GDS airline schedules
(Unit 4.5).
• Recognize and describe the main aircraft types (Unit 4.5).
• Define, decode and encode airline industry terminology and codes used
to make flight reservations (Unit 4.6).
• Explain international regulations pertaining to international air transpor-
tation (Unit 4.7).
Module Introduction
This Module introduces the many elements involved in making international air
travel arrangements.
The agent's primary function is to help make travel arrangements for their
customers. Therefore, the main goal of this Module is to introduce you to the
industry's common reference guides and how to access information relating to
flight schedules and other services. In addition, you will look at and be able to
describe the services and facilities available to passengers both before and
during travel.
In this Module you will look at standard codes that are universally recognized
throughout the air transport industry. Airlines and travel agents use codes to
facilitate booking procedures. By working with this Module you will also
become familiar with other abbreviations, terms, and definitions that are in
general use within the travel industry.
Finally, we will look at the international regulations applying to the transport of
passengers and cargo for all international air transportation.

268 Module 4: Air Transport Essentials

4.1 The Airport
• Identify the world's busiest airports (Unit 4.1.0).

• Describe the basic layout of airports and their terminals (Unit 4.1.1).
• Describe the departure formalities through which all departing passengers
proceed (Unit 4.1.2).
Unit Learning • Define checked baggage and describe the baggage check process
By completing this Unit, • Explain transit areas and identify minimum connecting times required
you will be able to: between flights (Unit 4.1.3).
• Describe the arrival formalities through which all arriving passengers
proceed (Unit 4.1.4).
• Satisfy customer demand for self-service options using the IATA Fast
Travel initiative (Unit 4.1.4).
• Describe the enhanced security and risk assessment tool using the IATA
Smart Security tools (Unit 4.1.5).
4.1.0 Unit Overview

Airports are constantly changing in an attempt to offer better services to both
passengers and visitors. Cities with several airports e.g. London, England or
Tokyo, Japan compete vigorously for new traffic and more passengers. Also
many airports position themselves as regional hubs, creating competition
between airports in a region. To attract new business, both in terms of more
carriers, new routes, and passengers, airports around the world strive to
improve the level and range of airport facilities. Offering additional services
within its terminals to passengers is increasingly becoming a way for airports to
distinguish themselves and gain a competitive advantage.
The largest airports have become mini-cities, offering first-class shopping,
restaurants, in-terminal hotels, leisure facilities and a range of transportation
options. Table 4.1.1 identifies the volume of passengers traveling through the
largest airports each year. These numbers reflect the key role of airports in
national and local economies. It is important to know these airport locations,
names and three-letter codes.
Unit 4.1: The Airport 269

Rank Airport Name City Airport Passengers

Code
1 Hartsfield-Jackson Atlanta International Airport Atlanta, US (ATL) 101,491,106
2 Beijing Capital International Airport Beijing, CN, US (PEK) 90,203,000
3 Dubai International Airport Dubai, AE (DXB) 78,014,838
4 O'Hare International Airport Chicago, US (ORD) 76,949,336
5 Tokyo Haneda Airport Tokyo, JP (HND) 75,300,000
6 London Heathrow Airport London, UK (LHR) 74,954,289
7 Los Angeles International Airport Los Angeles, US (LAX) 74,936,256
8 Hong Kong International Airport Chek Lap Kok, Hong (HKG) 68,488,000
Kong
9 Paris-Charles de Gaulle Airport Paris, FR (CDG) 65,766,986
10 Dallas/Fort Worth International Airport Dallas, US (DFW) 64,174,163
Table 4.1.1—The world's busiest passenger airports.
Source: Airports Council International (ACI) www.aci.aero
4.1.1 Airport Terminals

Departing passengers arrive at the airport and check in at the departure
terminal. Many of the larger airports have more than one terminal building, so it
is important to communicate information about check-in terminal numbers to
traveling customers, especially if they have to change terminals during their
journey. Departure terminals are normally numbered at multi-terminal airports.
This information should be included in the passenger's copy of the trip itinerary.
In larger, multi-terminal airports (such as Heathrow), each terminal usually has
both a departure and an arrival area. Arrival areas are often located on the
lower terminal level while departure areas are on the upper level.

Heathrow is one of the largest and busiest airport hubs in the world; it has four
functioning terminals. In general, one terminal is home to the national airline.
For example, most British Airways flights arrive and depart at Heathrow
Airport's terminal 5. Terminal 2 (Queen's Terminal) is the most recently
renovated terminal which was opened in while terminal 1 was closed on
June 29, 2015. Its demolition enabled construction of the second phase of
Terminal 2. Each airport has its own website with information about each
terminal and airlines served.
Heathrow Airport Terminal (LHR) Carriers

Terminal 2 4U, A3, AC, AV, BR, CA, EI, ET, EW,
FI, LH, LO, LX, MS, NH, OU, OS, OZ,
SA, SK, SN, SQ, TK, TP, TG, UA, NZ
Terminal 3 AA, AY, BA, CX, DL, EK, GA, IR, JL,
ME, MS, PK, PZ, QF, RJ, SK, SQ, TK,
UL, US, VS, VY, WY
Terminal 4 9W, AF, AI, AM, AT, AZ, BG, CZ, DL,
EY, FB, GF, HY, J2, JU, KC, KE, KL,
KM, KQ, KU, LN, LY, MH, MK, MU,
PR, QR, RB, RO, SU, SV, T5, TU, VN,
W3
Terminal 5 BA, IB, I2
Table 4.1.2—Terminal Information for Heathrow Airport
Figure 4.1.1—Illustration of Heathrow's five terminals

(www.heathrow.com/airport-guide/getting-around-heathrow/airport-maps)

Airports serving international departures and arrivals differ in size, design and
facilities. However, they all share common processes. The end-to-end airport
experience for passengers does not simply begin at the airport itself, but from
the moment a booking is made. As a travel agent it is important to help prepare
your customer with all the necessary information, in order to ensure a smooth
journey. Find out more about departure and arrival formalities in the next units.
Online check in
Customs clearance Airport kiosk

document scanning
1
10 2
Baggage claim Authorization to proceed

9 3 with boarding card
Passenger Experience
Process Steps
8 4
Immigration Baggage tagging

entry control and baggage drop off
7 5
6
Flight emplaning Security screening

and deplaning and control
Gate boarding
Figure 4.1.2—The airport and the passenger experience
Key Learning Point

Many airports have more than one airport terminal. Each terminal serves
different airlines. The airport website or a reservation system advises terminal
numbers for flight arrivals and departures.

Study Check 4.1.1
Refer to Table 4.1.2 to answer questions 1 and 2:
1. American Airlines (AA) flights depart from and arrive at

terminal .
(a) 3 and 5
(b) 1 only
(c) 3 only
(d) 1 and 3
2. Korean Air Lines (KE) flights depart from and arrive at

terminal .
(a) 1
(b) 4
(c) 3
(d) 5
4.1.2 Departure Formalities

When a passenger arrives at the airport for their flight, there are four main
formalities to complete for departure.
Figure 4.1.3—Departure formalities
Check-in
Having arrived at the correct terminal, all passengers proceed through check-in
formalities. With the increased availability of the internet and mobile solutions,
around 90% of passengers around the world will be offered the opportunity to
check-in on-line or using an airline's mobile application. Additionally many
airports provide kiosks at the airport where check-in can be performed. If
passengers prefer, check-in can usually also be done with the airline's check-in
staff. Check-in is where passengers present their electronic ticket
(e-ticket) reservation code and passport/ID to the airline check-in staff.
Documents and luggage are verified and luggage is also checked-in where
necessary, and a “boarding pass” is given to the passenger to board a flight.
Checked baggage is baggage that will be loaded into the cargo hold of the
aircraft.

An increasing trend at airports is the rise of fully automated bag drops. Here the
passenger will be given the opportunity to check-in and hand over their luggage
to the airline, without the need of an airline representative assisting.
Figure 4.1.4—Check-in counters
The Internet allows passengers to print their own boarding pass from their
home or office, simply by accessing an airline website and entering their
e-ticket reservation code. Many airlines have moved to issuing electronic
boarding passes, whereby the passenger checks in either online or on a mobile
device. The boarding pass is then sent to the mobile device as a SMS (Short
Messaging Service) or e-mail. The customer can request a mobile boarding
pass by accessing his or her reservation on the airline website.
Figure 4.1.5—A boarding pass can be received via mobile telephone

Short Messaging Service (SMS)

Each airline has the final responsibility to the immigration authorities for
ensuring that all passengers are holding valid passports and visas to enter
another country. Heavy fines are imposed on airlines for passengers who
arrive at their destination without the correct entry permits. This, however,
should rarely occur if check-in procedures are performed correctly. Passengers
may fly via different countries to reach their final destination and the passport
and visa requirements can be complex. Systems such as Timatic are used to
keep track of the latest visa requirements so travel agents and airlines alike
can inform the passenger before they fly if they need to organize a visa.
Passport Control and Security Checks

After completing all check-in and baggage handling formalities, all passengers
proceed to the airport passport control and security checkpoint. The airport is
responsible for ensuring that only passengers holding a boarding pass enter
the transit area where they wait to board their flight. Increasingly around the
world, automated pre-security gates can be found. Here passengers need to
pass through an automated gate where only passengers with a valid boarding
token can proceed towards security. The security checkpoint is staffed by
airport personnel who are responsible to perform the following checks:
• The passenger is holding a boarding pass for a valid flight departure
• The passenger's passport name matches with the name printed on the
boarding pass
• The passenger and his/her personal belongings are manually checked or
x-rayed to ensure that they do not carry restricted or dangerous articles.
Transit Area
The transit area is also called the airport concourse. Here departing passen-
gers wait to board their flight. They can take advantage of airport facilities such
as duty-free shops and restaurants.
Boarding
The next step is “boarding.” At the boarding gate each passenger's passport
and boarding pass must be presented. This is the last check before being
allowed on the aircraft.
Key Learning Point

All passengers need a valid ticket, passport, and visa (if required) for their
journey before they may proceed through check-in. Airline representatives will
check this necessary documentation during the boarding process.

Study Check 4.1.2
For questions 1 to 4, identify the correct order for departure formalities by

marking each one as step 1, 2, 3 or 4.
1. Boarding is step in departure formalities.

(a) 1
(b) 2
(c) 3
(d) 4
2. Sitting in the transit area is step in departure formalities.

(a) 1
(b) 2
(c) 3
(d) 4
3. Checking-in is step in departure formalities.

(a) 1
(b) 2
(c) 3
(d) 4
4. Passport Control and Security Checks is step in departure

formalities.
(a) 1
(b) 2
(c) 3
(d) 4
5. It is the airline's responsibility to ensure that travelers are holding valid

passports for the country they are entering. TRUE or FALSE?
(a) True
(b) False

6. At check-in, passenger documents are checked, baggage is weighed and

tagged, and a boarding card is issued. TRUE or FALSE?
(a) True
(b) False
4.1.3 Transit Areas

Often, passengers arriving at an airport have not yet reached their final
destination and must transfer to a connecting flight. These passengers wait for
the next flight in the transit area or concourse.
Figure 4.1.6—Passengers in the Airport Transit Area
Passengers in transit do not generally go through customs and immigration

formalities. Baggage is usually transferred from the arrival flight to the next
departing flight by the airport baggage handlers.
Minimum Connecting Time

A minimum connection time (MCT) is the minimum time needed for passengers
and baggage to transfer between two flights. Four types of connection exist:
1. The international connection: between two international flights
2. The domestic connection: between two flights within the same country
3. The international to domestic: between an arriving international flight
and a departing domestic flight
4. The domestic to international connection: the reverse of the previous
example
Key Learning Point

The average Minimum Connecting Time (MCT) for connecting between two
international flights at the same airport is 2 hours.

DMATH/08JUL
ATH STANDARD MINIMUM CONNECTING TIMES
ATH-ATH FROM - TO D/D D/I I/D I/I
CC FLTN-FLTR ORGN EQPTM-CC FLTR-FLTR DEST EQPTM HMM HMM HMM HMM
045 045 055 045
Figure 4.1.7—Minimum Connecting Times in Athens
I/I: The international connection: between two international flights,

45 minutes
D/D: The domestic connection: between two flights within the same
country, 45 minutes
I/D: The international to domestic: between an arriving international flight
and a departing domestic flight, 55 minutes
D/I: The domestic to international connection: the reverse of the previous
example, 45 minutes.
You can find this information for the national airport on the airport's main
website.
Apply Your Learning

It is extremely important that agents take the MCT into consideration when
booking flights. And remember that this is a minimum time. If possible, extra
time should be allowed. MCTs can be checked using the GDS.
Key Learning Point

Consider extra connecting time. Many flight routes experience delays. Con-
necting flights may be between different airports within the same city.
Passengers may need to travel to another terminal.
Study Check 4.1.3
For items 1 to 4, match a definition with a type of connection.

1. The international connec- (a) between an arriving dom-
tion estic flight and a departing
international flight
2. The domestic connection (b) between two international
flights
3. The international to (c) between two flights within
domestic the same country
4. The domestic to inter- (d) between an arriving inter-
national connection national flight and a de-
parting domestic flight
5. MCT means Minimum Connecting Time. TRUE or FALSE?

(a) True
(b) False
6. Passengers who are in transit do not generally go through customs.

TRUE or FALSE?
(a) True
(b) False

Refer to the following information to answer questions 7 and 8

DMATH/08JUL
ATH STANDARD MINIMUM CONNECTING TIMES
ATH-ATH FROM - TO D/D D/I I/D I/I
CC FLTN-FLTR ORGN EQPTM-CC FLTR-FLTR DEST EQPTM HMM HMM HMM HMM
045 045 055 045
7. A passenger is traveling from Delhi via Athens to Copenhagen.

What is the MCT in Athens?
(a) 1 hour
(b) 35 minutes
(c) 45 minutes
(d) 55 minutes
8. A passenger is traveling from Cairo via Athens to Thessaloniki.

What is the MCT in Athens?
(a) 1 hour
(b) 35 minutes
(c) 45 minutes
(d) 55 minutes
4.1.4 Arrival Formalities

Upon arrival at the destination airport, all passengers experience the same
formalities.
Figure 4.1.8—Arrival formalities at an airport
Immigration and Passport Control

All arriving passengers are checked to determine whether they are authorized
to enter the country. In addition, if applicable, passengers are subject to a
health inspection, which is a procedure to check for the International
Vaccination Certificate. Some countries issue visas on arrival to nationals from
specific countries.

Baggage Claim
The passenger will pick up his checked baggage at destination in the arrival
hall. All checked baggage is delivered to the baggage claim area of the airport
where passengers can reclaim their luggage. The international baggage claim
area is located after immigration and passport control but prior to customs
control. Many baggage claim areas also provide currency exchange facilities.
Figure 4.1.9—Directions to the baggage claim area for arrival passengers and
baggage deposited on a carrousel for pick up
Customs
After reclaiming their baggage, passengers will be required to clear customs.
Duty-free and tax-free allowances are often indicated in the customs hall and
import declaration forms are distributed on the arrival flight for completion by
each passenger before landing.
Figure 4.1.10—Directions to the customs clearance area in the arrival level of the
airport

Passengers arriving at an airport in the European Union may be offered three

choices at the customs inspection point. These are normally defined as follows:
1. The Red Channel: If passengers have goods or currency to declare,
where a duty or tax is voluntarily paid for imported goods.
Example: When goods purchased in another country exceed the personal
duty-free allowance.
2. The Green Channel: For passengers who bring personal effects and
goods that are not intended for commercial purposes, and which do not
exceed the duty-free allowance. Duty-free allowances, restrictions, and
lists of prohibited articles can be found in the TIM–the Travel Information
Manual.
3. The Blue Channel: When traveling within the European Union (EU),
passengers may use the blue channel. Customs officers will monitor this
area and spot checks are possible.

Figure 4.1.11—Member States of the EU
If a passenger is transiting a country it may be possible to deposit goods or

baggage not destined for the transit country in the transit customs area. On
departure, the goods are reclaimed and sent on to the passenger's destination.
Key Learning Point

Duty-free and tax-free allowances are listed in the TIM manual, and frequently
in the customs hall.

Study Check 4.1.4
1. The Green Channel is for passengers arriving with non-commercial and

duty-free goods which do not need to be declared to customs representa-
tives at the arrival airport. TRUE or FALSE?
(a) True
(b) False
2. For international arrivals at the airport, passengers normally claim their

checked baggage after an Immigration and Passport Control check. TRUE
or FALSE?
(a) True
(b) False
3. The Blue Channel may be used when traveling between which two
countries?
(a) Russia and Poland
(b) France and Switzerland
(c) China and Ireland
(d) Portugal and Finland
4. The customs area is where passengers reclaim their luggage. TRUE or

FALSE?
(a) True
(b) False
4.1.5 Fast Travel

As customer demand for self-service options keeps evolving as technology
progresses, airlines need to reduce the cost of operations while improving
service to passengers. IATA's Fast Travel responds to consumer demand for
greater convenience as well as offering lower costs for the industry. It consists
of six projects to offer a range of self-service options that give passengers
more control over their journey:
• Check-In: allowing passengers to receive their boarding pass via self-
service channels (web, kiosk, mobile phone or automated), avoiding long
lines at check-in desks.
• Bags Ready-to-Go: enabling passengers to deliver their bags tagged and
ready for acceptance. This self-tagging could be done at kiosks, through
Home Printed Bag Tags or Electronic Bag Tags. Baggage would then be
accepted by an airline representative or a self-service bag drop.
• Document Check: allowing passengers to scan their travel documents at
kiosks for data verification and compliance with destination and transit
requirements.
• Flight Rebooking: allowing passengers to get proactively rebooked and
obtain their new boarding pass via a self-service channel such as kiosks,
web or mobile device in case of delays or cancellations and so avoiding
long lines.

• Self-boarding: allowing passengers to self-scan their boarding token to

gain entry to the aircraft, potentially using automated boarding gates
similar to a train or metro station.
• Bag Recovery: enabling passengers to report a missing bag via a self-
service channel instead of waiting in line at a baggage claim service
counter.
4.1.6 Smart Security

Today's passenger and cabin baggage security screening works, but at great
cost to the aviation industry, to authorities and to passengers. Given the
predicted growth in air travel, continuously evolving threats, and passengers
becoming increasingly dissatisfied with queues and intrusive measures,
today's model is no longer sustainable.
The solution is to deploy Smart Security measures that employ innovative
processes such as the ones listed below:
• Innovative lane configurations that will allow passengers to prepare
themselves and their carry-on luggage more efficiently, and lane auto-
mation that will speed up the process and allow officers to focus on their
core security tasks.
• Security scanners can be used as a primary measure to replace WTMD
as the primary screening device. They may also be used as a secondary
measure to screen those travelers who set off the WTMD alarm or are
selected for additional screening. The latter configuration is expected to be
the most common in the near future.
• Advanced cabin baggage screening technologies that will allow for
effective threat detection while reducing the burden on passengers to
unpack items, and centralized image processing that allows to assess
X-ray images more efficiently by breaking to one-to-one link between the
operator and the machine.
• Risk-based approaches combined with biometric and communication
technologies that can be adopted seamlessly in screening that includes:
○ identity management
○ data-driven risk assessment
○ rule-based risk assessment
○ behavior detection
Benefits of Smart Security:
• Passengers benefit through faster, more convenient, and less intrusive
security screening.
• Airports benefit through greater operational efficiencies and increased
revenue opportunities.
• Airlines benefit through higher customer satisfaction and fewer departure
delays.
• Governments benefit through an improved ability to counter threats, to
focus resources where risk is greatest, and to leverage innovations in
technology.
Smart security offers a flexible, modular approach from passenger screening to
checkpoint management in order to support airports make the pace from curb
to airside more secure.

4.1.6.1 Passenger Screening

Passenger screening refers to the security procedures that inspect individuals
for prohibited items prior to allowing them entry into a security-restricted area to
board their flight. Passenger screening should provide effective security while
making the experience as pleasant as possible for the traveler.
Traditionally, passenger screening processes focused mostly on the detection
of metallic threats using walk-through metal detectors (WTMDs) supplemented
by manual pat-downs. Today, security scanners can address the threat of
explosives and other non-metallic threats in a single process while better
respecting the privacy of passengers thanks to the anonymized format of
images and advanced detection capabilities, reducing the need of full body pat-
downs.
Did You Know?

Smart Security has demonstrated that an airport using a WTMD and a security
scanner as a secondary screening device can process over 800 passengers
per hour on a dual lane.
4.1.6.2 Cabin Baggage Screening

Conventional stand-alone, single-view X-ray equipment has been the standard
for a long time, being highly dependent on the X-ray operators' training and
experience for detection. This results in:
• Extra passenger divestment requirements (laptops and liquids, aerosols
and gels, or LAGs).
• A higher number of images to be viewed.
• Challenges detecting prohibited items from a single view image.
• A high proportion of bags sent to an unassisted secondary search.
• Greater reliance on the screeners' abilities.
Advanced screening technologies allow for effective threat detection while
reducing the burden for passengers with items to divest. Technologies such as
Computed Tomography (CT) and X-ray Diffraction (XRD), which have been
successfully used in hold baggage screening, are now making their way into
the checkpoint, and will effectively enable more items such as laptops and
liquids to be left in passengers' bags during the screening process.
Figure 4.1.12—Computed Tomography (CT) image of a carry-on bag

4.1.6.3 Alternative Detection Methods and

Unpredictability
The application of alternative screening methods can enhance deterrence and
the overall effectiveness of the security checkpoint, while at the same time
supporting operational efficiency and an improved passenger experience.
Alternative methods include:
• Explosive trace detection (ETD).
• Explosive detection dogs (EDD).
• Unpredictable approaches.
Explosive trace detection: Residue left from the manufacturing, handling or
transporting of explosives is hard to remove. ETD equipment provides an
effective means of detecting trace amounts of explosives on a person, their
clothes or their belongings. The detection capabilities of ETD are well
recognized and a variety of solutions are available. The portability of these,
together with the unobtrusiveness of the process, makes ETD an efficient and
passenger friendly way to resolve alarms and/or introduce unpredictability
across the checkpoint.
Explosive detection dogs: Dogs are already deployed in a range of transport
settings and are used to identify passengers who may be carrying, or have
recently been in contact with, explosive materials. With the ability to easily
move about the terminal while assessing a large number of passengers in a
short space of time, dogs offer greater operational flexibility than fixed
screening equipment. The main limitation with using explosive detection dogs
is the length of time that they can maintain effective detection capabilities.
Passengers generally respond well to dogs and their use is seen as fairly
unobtrusive compared with other checkpoint measures.
Unpredictable approaches: The role of unpredictability is important as
checkpoints become increasingly constrained and new threats emerge. Unpre-
dictability can be applied to primary screening equipment through the use of
algorithms and standard operating procedures for manual processes. It can
also be applied to the selection methods and application of alternative
measures such as ETD.
Alternative screening measures will likely have the most value when im-
plemented in an unpredictable way, and in coordination with other primary
screening approaches.
The combination of measures applied should ensure that the checkpoint
remains as predictable as possible from a passenger's perspective, but
unpredictable to those with ill intent.

4.1.6.4 Checkpoint Environment and Management

Due to the growing number of passengers, additional security requirements,
and increasing capacity constraints, airports are considering innovative ways to
keep passengers moving through the checkpoint and to optimize their resource
utilization. Improvements in the checkpoint environment are an important
element of Smart Security as they could contribute to:
• Improving the passenger experience through a faster flow and clearer
communication.
• Increasing operational efficiency through greater automation and resource
optimization.
• Strengthening security by enabling the introduction of new screening
technologies and methodologies.
Coupled with advanced checkpoint environment solutions, dynamic IT infra-
structure (also known as a Checkpoint Management System, or CMS) could
help better coordinate and share information, monitor performance, and enable
the technical integration of all checkpoint elements.
4.1.6.5 Centralized Image Processing (CIP)

In the traditional checkpoint process, every open security lane requires an
X-ray operator at the same location to scan and assess the contents of hand
luggage and other items as they pass through the machine. Often, however,
the machine is not working to its full capacity, resulting in sub-optimal lane
throughput.
CIP allows all X-ray machines to be networked to provide airports with an
enhanced ability to ensure the X-ray machine and the X-ray operators viewing
the images are working to their full capacity. This makes cabin baggage
screening more efficient and cost effective.
In practice, the X-ray image is collected, queued, and presented by an image
processing system to the next available officer who is stationed away from the
lane in a centralized location (landside or airside). Depending on the X-ray
operator's decision, the tray will either be allowed back to the passenger for
reconciliation, or diverted to a bag search point.
A significant number of airports have now deployed CIP in accordance with
their operational and regulatory requirements.
4.1.6.6 Risk-based Differentiation

Today's threat and mitigation measures have evolved, and so must the
approach to aviation security.
Risk-based security is the concept of applying different measures depending
on the assessed level of risk. In the context of the passenger screening
checkpoint, this may mean varying the way that passengers are screened
based on a number of factors.
Risk-based security initiatives will transition aviation security from a somewhat
predictable model to a more flexible and targeted concept that will enable
screening resources to adapt to changing threats. Retaining elements of
unpredictability will enhance this approach to maximize the security outcome.
Risk-based threat detection: As the primary threat to aviation has shifted
from metallic items, such as guns and knives, to non-metallic items, such as
solid and liquid explosives, advanced detection technologies should be
integrated within the checkpoint.

Risk-based passenger differentiation: To balance the effective use of

resources, different security measures can be applied to passengers at the
checkpoint. Risk assessment may be achieved through behavior analysis and
questioning techniques, ticket purchase characteristics or the flight routing.
Per-passenger pre-screening analysis may also help to categorize passengers
according to risk, either through use of passenger data, or through membership
in a known traveler program. A combination of the most appropriate methods
for the risk and regulatory environments can greatly contribute to the
sustainability of the entire security system.
Known-traveler programs are key elements of the Smart Security program.
Such programs allow for a concentration of resources where risk is greater,
with low-risk passengers receiving streamlined processing with shorter queuing
times.
Known-traveler programs have proliferated with respect to border controls such
as the Global Entry Trusted Traveler Program of the US Department of
Homeland Security. This program is for travelers that fly within the US and
internationally.
The US Transportation Security Administration's “Pre-Check” is one of the
pioneers in the known-traveler programs. It expedites traveler screening
through TSA security checkpoints.
For a video, see
www.youtube.com/watch?time_continue=27&v=mD3KfxZMlpU.
Figure 4.1.13—Amsterdam Schiphol Airport baggage screening belt

Study Check 4.1.6
TRUE or FALSE?
1. Smart Security is a joint initiative of the International Air Transport

Association and ICAO. TRUE or FALSE?
(a) True
(b) False
2. Majority of passenger screening lanes use walk-through metal detectors

(WTMDs). TRUE or FALSE?
(a) True
(b) False
3. Explosive trace detection (ETD) is an alternative detection method that

deploys dogs to sniff out passengers who may be carrying explosive
materials. TRUE or FALSE?
(a) True
(b) False
4. IATA's Smart Security process is designed to reduce passenger queues

and inconvenient waiting times. TRUE or FALSE?
(a) True
(b) False
Apply Your Learning

If passengers are in any doubt over whether or not they have something to
declare to customs, they should go through the Red Channel.
Most airports publish information guides that provide useful information on all
the topics discussed in this unit, as well as information about facilities such as:
parking, transport to/from the airport, car hire, and Internet services. Visit the
website of your local airport to find out the information described above.
4.1.7 Unit Summary

In this Unit you have learned the top 10 busiest airports the world. Airports
have different layouts, but all have departure and arrivals areas and larger
airports have several terminals. Regardless of the airport, passengers must
proceed through the same departure formalities: check-in, passport control/
security checks, waiting in the transit area, and boarding. When checking-in,
passengers may also choose to check luggage for the flight which must be
carefully packed and must not contain hazardous items. Passengers who
transit at an airport must connect to their next flight. It is important to be aware
of the Minimum Connection Times for different types of flights for the transit
airport in question. Upon arrival at their destination all passengers must
experience the same arrival formalities: immigration and passport control,
baggage claim, and customs. Finally, you learned about IATA's Fast Travel
and Smart Security initiatives which will improve the travel experience for all
passengers.

4.2 Airline Products and Services Important to

Passengers
• Define an airline alliance and describe the benefits for airlines and
passengers (Unit 4.2.1).
• Name major airline loyalty programs and describe the different member-
ship levels and benefits (Unit 4.2.2).
Unit Learning • List three principal airline alliance frequent flyer programs and describe
Objectives their member benefits (Unit 4.2.3).
By completing this Unit, • Explain airline classes of service and describe the services received in
you will be able to: each (Unit 4.2.4).
• Demonstrate how to interpret booking class codes (Unit 4.2.5).
• Interpret aircraft seating plans (Unit 4.2.6).
• Describe categories of passengers requiring assistance (Unit 4.2.7).
• List and define special meal codes (Unit 4.2.8).
• Define three types of wheelchair services and their reservation codes
(Unit 4.2.9).
• List pre-flight and in-flight services and products offered by airlines
(Unit 4.2.10).
4.2.0 Unit Overview

It is important for travel professionals to know about the types of tickets and
services available to their customers who travel by air. The process of making
travel arrangements includes offering these services. This unit will look at
loyalty programs for airlines and airline alliance networks as well as the
different classes of service that can be purchased. Finally this unit will look at
the different services that are offered to passengers with special requirements
such as assistance boarding, special meals, and wheel chairs.
4.2.1 Airline Alliance Networks

An airline alliance is an agreement between several airlines to cooperate on a
marketing level. These groups of partner airlines are called “alliance networks”.
The first airline alliance was established in 1989, when Northwest Airlines and
KLM Royal Dutch Airlines agreed to code share flights on a larger scale. The
Netherlands and the United States of America (USA) signed the first open sky
agreement to allow both carriers unrestricted landing rights in each other's
countries. Landing rights are generally negotiated between governments and
limit the number of flights per week that foreign airlines can operate to a
destination. The USA Department of Transport granted the first antitrust
immunity to the Northwest-KLM alliance. This meant that both airlines no
longer needed permission from either government to fly passengers between
points in the U.S. and the Netherlands at any fare. Today, Northwest Airlines
no longer exists and KLM has joined the SkyTeam alliance.
The three largest airline alliance networks are Star Alliance, Oneworld, and
SkyTeam. As many airlines have joined one of these three airline alliances,
there are far too many participating airlines in each alliance to memorize.
However, you should be able to name at least the major or founding airline
members of each of the three largest alliances.

www.staralliance.com www.oneworld.com www.skyteam.com

Year founded 1997 1999 2000
Air Canada American Airlines Aeromexico
Lufthansa British Airways Air France
Founding airlines Scandinavian Airlines Cathay Pacific Delta Airlines
Thai Airways Japan Airlines KLM Royal Dutch Airlines
United Airlines Qantas Korean Air
Table 4.2.1—Three major airline alliance groups and their founding airline members
Key Learning Point

Most airlines have joined one of the three major airline alliances: Star Alliance,
Oneworld and SkyTeam.
There are two important reasons why airline alliances were established:
1. To extend system networks:
Alliance networks provide passengers the convenience of more connection
options. Alliance partners typically code share their flights. Code sharing
between alliance partners allows the airlines to sell travel to destinations
they do not serve. In other words, through code sharing, one alliance
airline is able to market and sell flights to destinations served by an alliance
partner to its customers–without having to operate the aircraft to the
destination. Code share flights are listed in the code share airline's
timetable with its own flight number and two-letter code, although the flight
is operated (flown) by another airline. Most alliances are based strictly on
code sharing agreements between alliance partners.
2. To reduce costs:
Alliance partners reduce their costs by sharing expenses associated with:
• sales office rental and personnel
• airport maintenance hangars and mechanics
• operational facilities such as catering or systems
• operational staff such as ground handling and customer service
personnel
• investments and purchases
Unit 4.2: Airline Products and Services Important to Passengers 291

Alliance Features Benefits for Airlines Benefits for Passengers

Shared operations and resources, • reduced costs • more amenities and services such as
including: airport lounges
• improved service
• staff
• lower air fares
• more products
• aircraft maintenance
• airport lounges
Increased negotiation or bargaining • reduced costs • lower air fares
power with suppliers such as:
• aircraft manufacturers
• fuel providers
• third party service providers
such as airport ground handling
Code sharing flights and combining • more destinations served • more destinations in easy reach
networks without operating more
• better schedules and more
aircrafts
frequent departures
• shorter connecting times
• reciprocal frequent flyer programs to
collect miles/points and privileges
Table 4.2.2—Benefits of airline alliances for airlines and passengers
Key Learning Point

Airline alliances exist mainly to reduce operational costs and to extend a
member airline's network without having to fly their own aircraft. Airline
alliances bring value to travelers by increasing the number of flight options and
connection networks.
Study Check 4.2.1
1. An airline alliance is an agreement between several airlines to cooperate

on a marketing level. TRUE or FALSE?
(a) True
(b) False
2. Which is a direct benefit of an airline alliance for passengers?

(a) more destinations to visit
(b) reduced operating costs
(c) lower air fares
(d) more supplier options
3. Which is a direct benefit of an airline alliance for airlines?

(a) reduced operating costs
(b) shared frequent flyer programs
(c) more frequent departures
(d) lower air fares

4.2.2 Airline Loyalty Programs

Most airlines offer a loyalty program, also referred to as a frequent flyer
program (FFP). These programs are meant to encourage passengers to fly
with them again. Passengers must enroll to become members of an airline's
loyalty program. Normally there are no membership application or renewal fees
for travelers. By becoming a member, passengers are eligible to earn points
that can be used or redeemed for free transportation or other types of rewards
also called “perks”. Points are earned based on the number of miles flown on
each flight paid. The further members fly, the more points they earn. The airline
issues a frequent flyer membership card with a unique account number to each
member. Many airline loyalty programs allow members to accumulate points
when they purchase products and services of the airline's partners, including
alliance airlines, car rental companies, insurance companies and hotels.
Whenever a passenger makes a purchase with a program's partner, including
airlines, car rental companies, hotels, etc., points are “rewarded” or credited to
the member's account. The more a member travels with the program's airline
and its partners, the more points he earns.
The loyalty program member redeems or uses the accumulated points to
purchase airline tickets or class upgrades (e.g., from economy class to
business class), hotel nights and car rentals.
Airline Frequent Flyer Program Name

American Airlines Advantage
British Airways Executive Club
Cathay Pacific Asia Miles
Delta Airlines SkyMiles
Emirates Skywards
KLM & Air France Flying Blue
Lufthansa Miles & More
Qantas Frequent Flyer
Singapore Airlines KrisFlyer
TAP Air Portugal Victoria
United Airlines Mileage Plus
Table 4.2.3—Examples of airline frequent flyer program names
Some programs have established several membership tiers or levels (such as

bronze, silver, gold, and platinum) based on the number of points accumulated.
A basic level member will simply be able to accumulate points for eligible
journeys and use the points to purchase future travel. When a member has
accumulated an established minimum number of points, he automatically
moves up to the next membership tier. It is faster to accumulate points at
higher membership tiers because higher levels offer the ability to earn regular
and bonus points. So a member at an intermediate tier can earn 50% more
points than a member with a lower level membership for the same journey
travelled. More privileges are also available to higher level program members.
Loyalty programs entitle their highest level members to privileges such as
priority flight check-in and boarding where program members can jump long
queues at the airport counters and gates. Other privileges include access to
airport lounges, upgrades to travel in a higher cabin class, as well as extra
baggage allowances.

Rewards and Privileges Basic Intermediate High

Earn and redeem points for travel on partner flights X X X
Register seating and meal preferences X X X
Receive promotional discounts X X X
Earn and collect extra bonus points X X
Access to priority check-in X X
Free seat selection X X
Access to airport lounges X X
Extra baggage allowance X X
Access to special reservation services X X
Access to first class check-in and airport lounges X
No fees on reward flights X
Complimentary gifts and services X
Table 4.2.4—Common rewards and privileges of loyalty programs
For example, British Airways' Executive Club Program offers four membership
levels:
• Blue (basic level)
• Bronze (basic intermediate level)
• Silver (advanced intermediate level)
• Gold (highest level)
Rewards and Privileges Blue Bronze Silver Gold

Earn and redeem points for travel on BA and partner flights X X X X
Register seating and meal preferences X X X X
Collect bonus points X X X
Priority check-in X X X
Free seat selection within 7 days of departure X X X
Free seat selection at any time X X
Free access to airport lounges worldwide X X
Access to first class check-in and airport lounges X
Free spa services at large hub airports X
No fees on reward flights X
Table 4.2.5—British Airways' Executive Club Program rewards by level
Airline loyalty programs are valued by members. As a travel professional, you

will want to keep a record of your travel customer's loyalty program account
numbers. In order for members to earn points on the flights they travel, their
frequent flyer account number must be included in the reservation in the form
of an SSR entry.
To redeem points and make a flight reservation paid with points, the
reservation must be made directly with the alliance program and cannot
normally be reserved in the GDS system. This is because the member's
account is managed solely by the alliance program. Only the program can debit
points in a member's account to purchase travel.

Key Learning Point

An airline loyalty or frequent flyer program allows enrolled customers to
accumulate points equivalent to air miles flown on the airline and its partners.
Points can be redeemed for free air travel, upgrades or complimentary
privileges such as increased baggage allowance, airport lounge access or
priority bookings and boarding. In order to earn points on travel purchased
through a travel agency, the travel agent must include the customer's
membership account number in the reservation record.
Apply Your Learning

Find the name of the national carrier's loyalty program. List the partners
participating in the national carrier's program. How many program levels are
available? What are the rewards and privileges available at each level?
Study Check 4.2.2
1. Loyalty programs offer the same privileges at each membership tier. TRUE
or FALSE?
(a) True
(b) False
2. Travel agents communicate their customers' frequent flyer account number

to booked airlines by .
(a) telephone
(b) courier or messenger delivery
(c) PNR SSR entry
(d) email
3. Which is an example of a term used to define a high membership tier?

(a) bonus
(b) redeem
(c) intermediate
(d) gold
4.2.3 Alliances and Frequent Flyer Programs

Each airline partner in an alliance manages its own independent frequent flyer
program (FFP). In general, customers of an airline's FFP can earn points when
traveling on flights operated by the airline's alliance partners. Only one airline
FFP membership is required to take advantage of privileges on alliance
partners. It is recommended to apply for a FFP account with an airline within an
alliance which the customer flies most often. The points accumulated in one
airline's program can be used to purchase travel on any alliance airline. There
is no need to join the FFP program of more than one airline alliance in an
alliance.

Alliances also offer an alliance FFP. An alliance FFP is linked to the FFP of
alliance airline partners. Alliance FFPs are status programs only and do not
track points like independent airline programs do. However, they grant
privileges similar to independent airline frequent flyer programs, although not
necessarily the same. Unlike airline programs, there is no card or account
number issued for alliance frequent flyer programs. Alliance programs are
structured in tiers or levels. Each alliance assigns a name to FFP status levels.
Oneworld SkyTeam Star Alliance

Status level 1 Ruby Status level 1 Elite Status level 1 Silver
Status level 2 Sapphire Status level 2 Elite Plus Status level 2 Gold
Status level 3 Emerald
Table 4.2.6—Alliance frequent flyer programs and levels
The cards held by members of alliance airline FFPs display the airline FFP
account number as well as the alliance FFP status level–both on one card.
Travelers must first be an airline frequent flyer member to join its alliance
frequent flyer program. Membership in an alliance FFP is automatic when the
customer's airline FFP status is equivalent to a level of its alliance FFP. For
example, at the basic level of an airline FFP, there is no equivalence to any
level of the alliance program. It may take some time for new airline FFP
members to advance to a status level equivalent to the alliance program.
Each alliance FFP status level grants different privileges that apply to all
alliance airlines. The most generous privileges reserved for members with the
highest status.
Alliance Frequent Flyer Program Privileges

Privileges common to lower status Privileges common to higher status
levels levels
Priority for confirming waitlisted flights Guaranteed confirmation on sold out

flights
Preferred seat selection Reserved check-in desks
Extra baggage allowance at no cost Priority boarding at the flight gate
Access to airport lounges worldwide
priority baggage handling (baggage is
first to be offloaded at the destination)
Table 4.2.7—Alliance Frequent Flyer Program benefits per level vary
Key Learning Point

Alliance frequent flyer programs are status programs that offer the same
privileges as an airline frequent flyer program, except that they do not track
miles (points) flown for the purpose of redeeming them for reward travel.

Study Check 4.2.3
1. An alliance frequent flyer program offers all the same benefits and
advantages as an independent airline frequent flyer program. TRUE or
FALSE?
(a) True
(b) False
2. Every new airline frequent flyer member automatically becomes a member

of an alliance frequent flyer program. TRUE or FALSE?
(a) True
(b) False
3. Points earned on one alliance airline's frequent flyer program cannot be

used to purchase travel on another airline member within the same
alliance. TRUE or FALSE?
(a) True
(b) False
4.2.4 Cabin Classes

Clients can pay for different levels of service and fare flexibility. Basically, the
more one pays the more one receives in return. The different classes are as
follows, from the most expensive and flexible to the least expensive and most
restrictive: First, Business and Economy.
4.2.4.1 First Class

First class is the highest class of service on the aircraft. The purchaser of a first
class ticket is able to alter plans at any time, even changing the route and
carrier, without incurring a penalty (although a change in airline or routing may
affect the journey fare). First class passengers may also take advantage of
other complimentary services and facilities available before, during, and after
their flight.
Key Learning Point

First class tickets are flexible–if passengers do not travel according to the
original journey booked, they simply re-book for a different day or routing, or
they can decide not to travel and receive a full refund of the original cost of the
ticket.
4.2.4.2 Business Class

Business class is the second most expensive. It offers similar features to first
class, but not quite the same level of luxury as first class. Several international
airlines only operate a business class cabin with no first class. Fares in this
class, however, are generally just as flexible; flight dates can be changed and
tickets are refundable at any time. Therefore, profit margins are higher.
However, like first class ticket sales, airlines and travel agents cannot
accurately project the exact revenue from the sale of seats in this class in
advance.

The following table displays a selection of services and facilities available to

first and business class passengers:
First Class Business Class

Free chauffeur-driven limousine service from the passenger's X
home to the airport
Late check-in, and separate check-in counters that avoid the need X X
to queue (though online check-in facilities do not require counter,
Prior to nor kiosk check-in for any passenger)
Boarding
Private airline or airport waiting lounges that provide free food and X X
drink, showers, TV, newspapers, magazines, and Wi-Fi Internet
access to work while waiting to board the flight
Priority and/or late boarding facilities X
Larger seats which also recline into beds X X
Personalized cabin service that includes addressing the passen- X X
ger by name
Champagne reception X X
Better quality food and drink available throughout the flight X X
In-Flight
Food service on superior china with silver cutlery rather than X X
plastic containers and cutlery
High quality amenities kit X X
Wider choice of entertainment X X
Priority when disembarking from the aircraft on arrival X X
Priority baggage collection X X
Shower facilities and private rooms available to freshen up or rest X X
On Arrival
between flights
Use of arrival lounges X X
Table 4.2.8—Sample services for first and business classes
Attracting first and business class passengers is highly competitive. Airlines are
constantly devising more creative ways to retain their passengers' loyalty and
discourage them from buying these higher yielding fares from other carriers.
Key Learning Point

Business class tickets allow passengers to change their minds, cancel a flight,
and simply re-book for a later time or date. Business class tickets are usually
fully refundable if not used.
4.2.4.3 Premium Economy Class

To accommodate passengers who have paid full normal economy fare, an
extra tier has been added that is situated between business class and regular
economy cabins. These distinctions facilitate easier upgrades in case of mixed
class journeys largely through the assessment of class differentials.
Premium Economy is found mostly on international flights. Compared to
regular Economy, it offers about 5 to 7 inches of extra legroom as well as
additional amenities such as:
• 1–2 extra inches of seat width
• 2–3 extra inches of seat recline
• Adjustable headrests, legrests or lumbar support
• Larger personal TV screens

• Laptop power ports

• Premium food service
Compared to Business class, Premium Economy class is around 65% less
expensive. So in terms of space and amenities, Business class offers up to
50% more legroom with significantly greater recline, more substantial legrest
and headrest plus superior food and wine offerings.
4.2.4.4 Economy Class

Profitability is not based on the sale of higher class fares alone. Airlines and
agencies must also concentrate on selling less expensive but more restrictive
non-refundable economy class tickets. Most seats on any aircraft are allocated
to economy class passengers. Often some 200–300 economy seats are
available for sale on a regular international flight. There is a wide choice of fare
levels for travel in economy class. Although full economy fares are refundable,
many lower priced economy class fares are non-changeable and non-
refundable. This reduces the revenue risk for airlines and travel agencies
because many of these fares require advance purchase. No matter what
economy class fare level is paid, the service level and amenities are identical
for all passengers sitting in economy class.
Aside from a standard meal service on long haul flights, often served with
plastic containers and utensils, and access to in-flight entertainment, a journey
in economy class is quite standard.
Key Learning Point

The majority of seats on any flight are sold to economy (or coach) class
passengers. Various types of economy class fares exist. These range from full
economy which offer passengers the flexibility to change dates and even to
receive a refund if they do not travel, to discounted economy tickets which are
generally more restrictive.
Study Check 4.2.4
1. Which service generally applies to travel in first class only?

(a) champagne reception
(b) free chauffeur-driven limousine service to the airport
(c) drink service
(d) late check-in and separate check-in counters to avoid the queues
2. Which class of service is typically the most expensive?

(a) Business Class
(b) Economy
(c) First Class
(d) Intermediate Class

4.2.5 Booking Class Codes

Although airlines display cabin class codes in their printed, digital and online
timetables, GDS and CRS reservation systems display booking class codes.
Cabin classes refer to the three classes of service: First Class, Business Class,
and Economy class. Each cabin class comes with different amenities and level
of service. In order to reserve a seat in the right cabin class and at the right fare
for a traveler, the reservation agent must select a booking class code. Although
a flight may operate a maximum of four cabin classes of service (first,
business, premium economy and economy/coach), there may be a string of
reservations booking class designators (RBDs) available for each cabin class,
simply because there are a variety of air fares offered for travel in each cabin
class. Each cabin class code represents where the passenger will sit on board
while each booking class code is linked to a published fare.
In order to reserve a seat in the right cabin class and for the right fare, it is
necessary to interpret booking class codes displayed per flight in travel agency
and airline reservation systems. Table 4.2.9 displays a list of standard booking
class codes adopted by most airlines.
Code Class
P First class premium
F First class
A First class discounted
J Business class premium
C Business class
D Business class discounted
I Business class discounted
Z Business class discounted
W Premium Economy
E Premium Economy class
discounted
S Economy/coach
Y Economy/coach
B Economy/coach discounted
H Economy/coach discounted
K Economy/coach discounted
L Economy/coach discounted
M Economy/coach discounted
Q Economy/coach discounted
T Economy/coach discounted
V Economy/coach discounted
X Economy/coach discounted
Table 4.2.9—Booking class codes displayed in GDS/CRS systems
You will notice in the table that there are several booking class codes for first,
business, premium economy and economy cabin classes. The standard
booking class codes are F, C, W, and Y. Aside from premium economy, an
airline may offer a separate seating section in first or business class cabin also
called “premium class”. Premium type seats are limited and offer extra comfort
in terms of seat width and legroom. In other words, a seat in premium first or
premium business class will be larger and more comfortable, but it will cost a
little more than a regular cabin seat.

Booking class codes are set by the fares published by each airline and each
one represents a discount level on the full fare. For example, an airline may
use code B for 30% discounted fares, code H for 40% discounted fares, and
code K for 50% discounted fares.
Key Learning Point

There are multiple booking class codes used to represent different classes of
service offered on flights and the different fares available within each class.
Study Check 4.2.5
1. Booking class codes represent the same airfare discount for all airlines.
TRUE or FALSE?
(a) True
(b) False
2. What does the term “premium class” mean?

(a) travel in first class only
(b) travel on a discounted fare
(c) travel on a wide-body aircraft type
(d) travel in a more comfortable seat
4.2.6 Aircraft Seat Configuration and Seat

Assignment
All commercial aircrafts have a seating plan, also referred to as the seat
configuration. There are four different types of seats on an aircraft if the flight
offers four classes of service. Aircraft seats are labeled by row number and
seat letter. For example, seat 5B is a seat in row 5 and in B position next to
seat A in the same row.
4.2.6.1 Rows
The aircraft image in Figure 4.2.1 is one of a Boeing 777 extended range
aircraft type. This is a wide-body aircraft with a four-class configuration having
a total of 275 seats.The number of seats actually varies according to each
individual airline's requirements.
Figure 4.2.1—Sample seat configuration of a Boeing 777-300ER (Extended Range)

Specific row numbers are assigned in each class of service. The first row is
always at the front of the aircraft, and the last row with the highest row number
is always at the back. Rows in between are described as rows in front of, on or
behind the aircraft wings.
But there are larger aircrafts that have two decks such as the Airbus A380. The
upper deck, reserved for economy class seating, is the same full length of the
aircraft as the lower deck. On its lower deck, a galley, two lavatories (toilets)
and the stairs leading to the upper deck occupy rows 6 to 10.
4.2.6.2 Aisles
Narrow body aircrafts have one aisle as shown in Figure 4.2.2 and wide body
aircrafts have two aisles. In Figure 4.2.1, there are two aisles in this aircraft.
Aisle seats are often preferred by passengers who want the freedom to leave
their seats to go to the lavatory without disturbing other passengers.
Figure 4.2.2—Narrow body aircraft cabin with one aisle
4.2.6.3 Galley
The galley is the small kitchen on board aircrafts. Flight attendants work in the
galley to prepare food and drinks to be served. Figure 4.2.1 displays four
galleys in the aircraft configuration: the first galley is at the very front before the
first class compartment; the second is between first and business class cabins;
the third is right after the premium economy class cabin; a fourth is found at the
back after the regular economy cabin. Passengers normally prefer to sit away
from the galley to avoid being disturbed by the noise of clanging galley
equipment such as trays, carts, dishes, and glassware.

Figure 4.2.3—Typical aircraft galley
4.2.6.4 Lavatory
Lavatories are small toilets which are not segregated accord-
ing to gender. Men and women must use the same lavatory
facility on board. There is at least one lavatory located in each
cabin class on an aircraft. As such, business class passen-
gers can use the lavatory located in the business class
section. Seats located near a lavatory are likely the least
desirable seats. Passengers often request a seat assignment
away from a lavatory because they are disturbed by the back-
and-forth movement of passengers from their seats to the
lavatory.
4.2.6.5 Exit Doors

Exit doors are located on both sides of any aircraft on the lower or main deck.
There are more than one set of exit doors. Sometimes a row of seats is located
just beside or behind the aircraft exit doors. For example, in Figure 4.2.1, 31A
and C are exit row seats. There is no seat 31H or 31K on this aircraft because
of the exit doors. Because the exit doors of the aircraft cannot be blocked by
passenger seats, exit row seats offer more legroom. However, only fully-mobile
adults of fifteen years or more can sit in an exit row seat. Exit row seats may
only be assigned by the airline at check-in time. The airline reserves the right to
decide which passengers can sit in exit row seats. Children, elderly and
incapacitated or handicapped passengers cannot sit in exit row seats. In these
seats, passengers must agree to assist the flight attendants in evacuating the
aircraft in case of emergencies. Other exit doors are located right through the
first business and economy class galleys and at the back of the plane.

4.2.6.6 Seats
Business and first class seats are larger, deeper, and more comfortable than
those in economy class. In first and business class cabins of long haul flights,
seats can be converted into flat beds. As the seat configuration shows, first
class accommodation is always located at the front of the plane, or sometimes
on a separate upper deck, where traveling is quieter. There might be up to
three different types of seat on one aircraft, depending on the classes of
service available. The type and size of seat to which a passenger is assigned is
dependent mainly on the class of service reserved.
Seats are positioned as window, center and aisle seats. Window seats are
seats between the aircraft window and another seat. Aisle seats are seats
between the aisle and another seat. A center seat is a seat between two other
seats. Refer to Table 4.2.6 displaying a sample seat row arrangement and a
description of each seat number.
Window seat Aisle seats Center seat on the left

Figure 4.2.4—Types of seats
A panel normally separates the different cabin classes. Seats facing cabin
walls are called “bulkhead” seats. They do not always provide more legroom
than other rows. Some passengers request to be seated in bulkhead seats
because they prefer to face a cabin wall than face a row of seats in front of
them. Seat numbers 39A/C, 39D/E/F/G and 40H/J/K in Figure 4.2.1 are
bulkhead seats. Additionally, 39A/C and 40H/J/K are ideal for setting up baby
bassinets.
Figure 4.2.5—Bulkhead seat with baby bassinet

Figure 4.2.6—Example of seat numbers in one row
Seat Number Seat Description

8A Window seat
8B Center seat
8C Aisle seat
8D Aisle seat
8E Center seat
8F Center seat
8G Aisle seat
8H Aisle seat
8J Center seat
8K Window seat
Table 4.2.10—Description of seat numbers
The seat pitch defines the amount of legroom available when sitting in the
seat. Seat pitch varies between classes of service.
Seat pitch is measured as the space or distance between one seatback and
the seatback of the seat directly in the row ahead, often measured in inches.
The standard pitch size in economy class is 30 to 32 inches (76 to 81 cm).
Seat width is the distance from armrest to armrest. In economy class, the
standard seat width is typically around 43 to 46 centimeters (17 to 18 inches).
Figure 4.2.7—Measurement of seat pitch and seat width

4.2.6.7 Seat Assignment

Specific seat assignments can be made by a travel agent on their client's
behalf up to one day before the flight departure. Beyond that time, remaining
seats are assigned at check-in on a first-come, first-served basis. It is normally
possible to request a certain type of seat assignment and block a seat number
on confirmed flights, although there may be a charge for seat assignment on
some airlines. Most seat assignments are done directly in the GDS reservation
system where the travel agent can access a map of available seats to assign.
Available seat numbers can also be viewed and blocked by the passenger
himself through the airline website.
To request any seat in advance, a row number and seat letter must be
specified. While the row number identifies exactly where a passenger wishes to
sit in the aircraft, the letter represents the exact location of the seat. For
example, in figure 4.2.1, seat 43C is a request for an aisle seat in the economy
section.
If you book a passenger to travel on a flight that does not allow access to a seat
map, then there is a way to communicate the passenger's seating preference
to the airline booked. A Special Service Request element in the GDS
reservation allows you to request an aisle, center or window seat. This way,
when the airline assigns seats on the flight, it would know what the passenger's
seat preference is. The airline would then provide you with a seat, anywhere on
the aircraft, which conforms to your request.
Apply Your Learning

Airline seating plans are published on airline websites. Computerized seat
maps can also be accessed through a GDS. Find a seat map for an aircraft
type that the national airline uses, or research it at www.seatguru.com.

Study Check 4.2.6
Study the seat configuration and answer TRUE or FALSE to questions

1 through 3.
1. There are 14 first class seats allocated on this Boeing 747-400 aircraft.
TRUE or FALSE?
(a) True
(b) False
2. The economy class seats start at row 39. TRUE or FALSE?

(a) True
(b) False
3. There is in front of seat number 41G.

(a) another seat
(b) a cabin wall
(c) a lavatory
(d) a galley
4. Specific economy seats can only be requested as late as 3 days before the
flight's departure date. TRUE or FALSE?
(a) True
(b) False
5. Seat ‘A’ is always a .

(a) window seat
(b) center seat
(c) aisle seat
(d) emergency row seat

6. The galley is where .

(a) the toilets are located
(b) where food is prepared
(c) where cabin crew rest
(d) where the flight crew sit
4.2.7 Categories of Special Passengers Types

Airlines extend assistance to passengers who have special requests and
needs. Normal requests range from passengers wishing to travel with a pet to
others with special meal requirements. Some passengers may require assist-
ance to board a plane and get seated due to a medical problem. Young
passengers might require escorting around the airport or while on board,
especially if they are traveling for the first time and are unfamiliar with
procedures.
Such requests are made through automated messages generated by an
automated reservation system in the form of a special service request (SSR)
entry. As airlines are on the receiving end of such messages, they read them
and respond by confirming or rejecting the request.
It is the travel agent's responsibility to relay their customer's special service
requests to airlines and almost always through the customer's GDS reser-
vation. In very complex situations, such as when customers have serious
medical conditions, the travel agent may be required to deal directly with the
airline by telephone on the customer's behalf, making unusual arrangements
for the passenger's comfort and safety.
For more complicated requests, an agent may have to telephone the airline
and talk directly to airline reservations staff. Some special passenger catego-
ries are described below.

Unaccompanied minor
In the airline industry, passengers are categorized as infants when under
2 years of age, as children when they are from 2 years to less than 12 years of
age, and as adults when 12 years or older. All children's ages must be advised
to transporting airlines in the GDS reservation. This is done via an Other
Service Request entry using the standard code CHD.
Some airlines allow children between 5 and 11 years old to travel alone
(without an adult escort). Such passengers are referred to as “unaccompanied
minors”. Conditions for transporting unaccompanied minors vary between
carriers. Often they can only travel on direct non-stop flights between their
origin and destinations–connecting flights would not accept unaccompanied
minors. There is a limit on the number of unaccompanied minors that a flight
can accept. A request must be made in advance of departure for such
unaccompanied minors and the transporting airline must reply to the request.
The request for permission for a child to travel unaccompanied must be made
through a Special Service Request (SSR) entry in the reservation with
standard 4-letter code UMNR, followed by the age of the child in free text.
Unaccompanied minors must be escorted by a parent or legal guardian to the
airline's airport check-in counter. A special UM form is completed and it
accompanies the child through the journey in a pouch or envelope worn on a
string. This provides the carrier with the name, guardian signature and contact
information of the adult collecting the child at the destination airport. A
member of either the airport ground staff or the crew stays with the child. In
flight, the cabin crew is responsible for the well-being of the child until arrival at
destination where a ground passenger agent collects and escorts the child
though immigration and exit. This agent signs the UNMR form to confirm that
the airline is no longer responsible for the child.
Expectant mothers Expecting (or pregnant) women are advised to consult their doctor before
traveling. A doctor's letter may be required by some airlines. Traveling in the
early stages of a normal pregnancy is usually fine, but carriers should be
consulted as regulations for individual carriers may vary. The number of
weeks of pregnancy must be advised to the airline via an Other Service
Request entry using the OTHS code.

Infants/babies
An infant is defined by most airlines as a child who has not yet had a second
birthday.
Babies are not always entitled to a seat, and must be accompanied by an
adult.
If two children under the age of two are traveling, it is generally necessary to
buy a seat at infant rate.
Most airlines will arrange for infant baskets to be available, especially on
longer flights, but should be arranged in advance. Infant food can also be
ordered in advance. A request to transport the infant car seat or a carry cot in
the cabin is possible. Special life jackets and safety belts for infants are
available on board each aircraft. The infant's date of birth must be advised to
transporting airlines via an Other Service Request entry in the GDS
reservation with standard code INF.
Medical Passengers Many airlines are able and willing to transport passengers with serious
medical conditions. However, a request to transport passengers with medical
needs must be requested via a Special Service Request entry. The 4-letter
code used is MEDA, followed by a brief explanation of the passenger's
medical condition and any requirements, such as “passenger in right leg cast”,
or “passenger with emphysema”. Normally, travelers with medical needs will
require at least one other Special Service Request entry to request an extra
service such as a wheelchair. Some medical passengers require oxygen on
board which the airline would supply. The 4-letter standard code to request
oxygen on board is OXYG.
Some medical passengers are immobile and must be transported by stretcher
case. The 4-letter Special Service Request code STCR is used to request
acceptance of a passenger traveling on a stretcher.
Key Learning Point

Children, infants, expecting, and medical passengers are special types of
passengers that every transporting airline must be aware of so that boarding,
deplaning and on-board assistance can be offered if needed.

Study Check 4.2.7
1. All pregnant passengers must have a doctor's note to travel by air. TRUE
or FALSE?
(a) True
(b) False
2. An infant is defined as a child under the age of 2. TRUE or FALSE?

(a) True
(b) False
3. Children under the age of traveling alone are classified as

unaccompanied minors.
(a) 14
(b) 16
(c) 12
(d) 13
4.2.8 Special Meals

It is possible to arrange special meals for your passenger's journey.
Many commercial airlines can serve standard special meals for the benefit,
comfort and safety of passengers, or due to special diet needs. These may be
related to medical conditions such as diabetes (DBML diabetic meal), high
blood pressure (LSML low salt meal), high cholesterol (LFML low fat meal) or
food allergies (NLML no lactose or GFML gluten free meal). Other special diet
needs are related to lifestyle, cultural or religious reasons (VGML vegetarian
meal or KSML kosher meal).
Requests for specially-prepared meals must be made by the agent on behalf of
the passenger well in advance of the flight, usually with more than a 48-hour
notice.
For reservations made in a GDS system, requests for special meals are
transmitted to booked airlines in a field called Special Service Request (SSR).
You will learn more about the SSR field in GDS reservations. Such SSR entries
require the use of a standard 4-letter code representing the special meal type.
You must understand and remember the most common special meal codes.
Keep in mind that not all airlines offer all of the following special meal types. As
there is no standard special meal code for passengers with allergies to nuts
and seafood, most airlines recommend that passengers with such allergies
bring their own food on board for consumption.

Code Meal Category Meal Type Explanation

AVML Lifestyle (including ASIAN VEGETARIAN MEAL A spicy meal with no fish, shellfish and meat
religious/cultural) products
BBML Passenger type BABY MEAL A meal for infants including milk and baby foods
BLML Medical condition BLAND MEAL A meal that excludes all spices (no salt, pepper,
garlic, mustard, butter, oil)
CHML Passenger type CHILD MEAL A meal with fun food for children
DBML Medical condition DIABETIC MEAL A meal excluding sugar and other sweet ingredi-
ents for passengers who need to manage the
level of blood sugar
FPML Lifestyle (including FRUIT PLATTER MEAL A meal with only fresh fruit as an ingredient.
religious/cultural)
GFML Allergy GLUTEN INTOLERANT A meal for passengers allergic to wheat and other
MEAL grains
HNML Lifestyle (including HINDU MEAL A meal with no beef, veal and pork but may
religious/cultural) contain other meats
KSML Lifestyle (including KOSHER MEAL A meal prepared under the supervision of a
religious/cultural) Jewish rabbi
LCML Lifestyle (including LOW CALORIE MEAL A meal low in fat and sugar
religious/cultural)
LFML Lifestyle (including LOW FAT MEAL A meal with high fiber ingredients prepared in low
religious/cultural) amounts of fat
LSML Lifestyle (including LOW SALT MEAL A meal prepared with natural herbs and spices
religious/cultural) and lacks salt content–normally for passengers
with high blood pressure problems
MOML Lifestyle (including MUSLIM MEAL A meal with no pork or alcohol (spirits) and
religious/cultural) prepared with ritually slaughtered meats
NLML Allergy NO LACTOSE MEAL A meal prepared with no cheese, milk or other
dairy products, usually for passengers allergic to
dairy ingredients
SPML Any SPECIAL MEAL, SPECIFY This is a code used to request a non-standard
FOOD meal type. The SPML request must explain
exactly what the passenger requires in a special
meal. Non-standard SPML meal requests have a
high chance of being denied.
VGML Lifestyle (including VEGETARIAN VEGAN Contains none of the following ingredients: meat,
religious/cultural) MEAL fish or seafood, eggs, cheese, milk or other dairy
products
VLML Lifestyle (including VEGETARIAN LACTO-OVO Contains no meat, fish or seafood, but may
religious/cultural) MEAL contain dairy ingredients such as eggs, cheese
and milk
Table 4.2.11—Standard special meal request codes

Study Check 4.2.8
1. How far in advance of your flight must you request a special meal?
(a) at the time of booking
(b) 24 hours in advance
(c) 1 week before
(d) 48 hours in advance
2. Which 4-letter SSR code is used to request a meal prepared according to

religious or cultural requirements?
(a) LCML
(b) VGML
(c) MOML
(d) BLML
3. Which 4-letter SSR code represents a meal for passengers with a food
allergy?
(a) KSML
(b) AVML
(c) DBML
(d) GFML
4. Which 4-letter special meal code is for a passenger with a medical

condition?
(a) DBML
(b) VLML
(c) CHML
(d) HNML

4.2.9 Wheelchairs
Elderly and physically incapacitated passengers

often require wheelchair assistance to travel from
the check-in counter to the flight departure gate,
and sometimes even to their assigned seat on
board the aircraft. Airlines provide this service on
demand and are equipped with a variety of wheel-
chair types. A passenger who must be wheeled to
the aircraft seat will need two types of wheelchairs:
a regular wheelchair pushed by an airline or airport
passenger service agent will take the passenger
from the counter to the flight gate. The passenger
must then be transferred to a narrower wheelchair
that can navigate down the aircraft aisle to the
passenger's seat. Wheelchair service must be
made in advance via a special service request
entry. There are three standard wheelchair request
codes:
WCHR A wheelchair is required for airport use to travel to or from the flight
gate. The passenger can ascend and descend stairs and walk
to/from the assigned seat on board.
WCHC A wheelchair is required to transport the passenger to and from the
assigned aircraft seat and must be carried up/down stairs or
transported up to the aircraft door with a lift.
WCHS A wheelchair is required to transport the passenger to the gate and
up or down stairs. The passenger is able to walk the distance from
the aircraft door to the assigned seat.
Table 4.2.12—Standard SSR wheelchair codes
Passengers may also own a wheelchair that must be transported. Wheelchairs

must travel as checked baggage and a request for the transportation of
passenger wheelchairs must be made in advance via a special service request
entry. Because wheelchairs are large and fragile, the airline must make
advance arrangements to accommodate such an item in the aircraft hold.
Furthermore, battery-operated wheelchairs may pose a danger or risk to the
aircraft if they are not properly packaged and stored in the hold. The most
common codes used to request the acceptance of passenger-owned wheel-
chairs are as follows:
Code Explanation
WCMP Request to check in a manually-operated wheelchair
WCBD Request to check in a wheelchair with a dry cell battery
WCBW Request to check in a wheelchair with a wet cell battery
WCHC Request for a wheelchair to carry the passenger on and off the
aircraft
WCHR Request for a wheelchair to carry the passenger to the gate ramp
and aircraft door

Code Explanation
WCHS Request for a wheelchair to carry the passenger up and down
aircraft steps
WCOB Request for an on-board wheelchair to carry the passenger to and
from an aircraft seat
Table 4.2.13—Codes for wheelchair requests in SSR entries
Key Learning Point

A request can be made via an SSR entry for airport passenger wheelchair
service or for the transportation of a customer's own wheelchair. Due to
limitations on the availability of ground passenger service agents to push
wheelchairs and limitations on storage space on board an aircraft, such
requests must be made in advance.
Study Check 4.2.9
1. Which code would you use to request a wheelchair for a passenger who
has difficulty walking long distances, but who can ascend and descend
stairs and walk to/from their assigned seat on the aircraft?
(a) WCHC
(b) WCHR
(c) WCHS
2. WCHS is a standard code used to request assistance for a passenger

who .
(a) is not mobile and cannot walk at all
(b) cannot walk long distances in airports but can climb and descend stairs
(c) cannot walk long distances and cannot climb or descend stairs

4.2.10 Pre-Flight and In-Flight Products and

Services
At the airport, one of the services that passengers may purchase is access to
an airport lounge, found in most large airport transit areas. A lounge is a closed
area which is accessible only to privileged passengers, set up as quiet waiting
areas for passenger use.
Figure 4.2.8—CX lounge at Hong Kong Airport
They offer the following complimentary services and amenities:

• computer workstations with Wi-Fi access
• television, newspapers and magazines
• complimentary beverages, snacks and sometimes hot meals served in
buffet (self-service) style
• showers
Lounges are owned by airlines or airline alliances. Airlines normally offer
privileged lounge access to their first and business class passengers or highest
tier frequent flyer customers on a complimentary basis. There is a reception
desk at the entrance of every airport lounge to check passenger documents
and their validity for lounge access. Some airlines sell access to their lounges
to any of their passengers who do not qualify for the privileged access.
Once on board, regardless of the class travelled, other products and services
are available to passengers. On some flights, such products and services are
free or included in the ticket price. Conversely, some airlines charge a fee for
these products and services that can be reserved by the travel agent and
prepaid as an “ancillary” service. Such ancillary products or services are:
• regular meals, beverages, and snacks
• toys for children
• pillows and blankets
• in-flight entertainment including movies and headsets

• duty-free shopping (on international routes only)

• Wi-Fi connection
You will learn more about ancillary services in the next unit.
Study Check 4.2.10
1. In-flight products and services can either be included in the ticket price or
they can be purchased individually for a fee. TRUE or FALSE?
(a) True
(b) False
2. Airlines control passenger access to which airport transit area facility?

(a) a passport control/security checkpoint
(b) an airport lounge
(c) a duty free shop
(d) a check-in counter
4.2.11 Unit Summary

This Unit introduced the subject of airline alliances and explained their
advantages for member airlines and passengers. There are loyalty programs
offered by airlines and their alliances that benefit frequent flyers. You learned
about the four main classes of service (First, Business, Premium Economy and
Economy) and the services offered in each compartment. This unit described
the difference between a cabin class code and a booking class code.
Interpreting symbols and codes in an aircraft seat map is also key to seat
selection. You studied some standard airline services and products offering
convenience to passengers, such as airport lounges, special meals and
wheelchairs.

4.3 Ancillaries
• Define ancillaries and list examples of ancillary amenities and services

(Unit 4.3.1).
• Describe how passengers, airlines, and travel agents benefit from
ancillaries (Unit 4.3.2).
Unit Learning • Explain the role of the travel agent and the GDS in reserving and collecting
Objectives payment for ancillaries (Unit 4.3.3).
By completing this Unit, • Describe how ancillaries are displayed and reserved in GDS systems
4.3.0 Unit Overview

Many airlines are moving away from all-inclusive airfares to a model where pre-
flight and in-flight/post-flight services are charged separately from air fares. The
concept of “unbundling” will be made clear to you. This unit explains how the
sale of ancillary services assists in creating revenue opportunities for airlines.
Full service airlines have traditionally offered air fares that bundle transpor-
tation together with amenities and services. Increasing operational costs, such
as jet fuel, security and airport fees have created financial challenges. As a
result, more airlines are charging for air fares and amenities separately,
offering à la carte products and services. Baggage, meals, pillows and
blankets, upgrades and seat selection in addition to those included in the basic
air fare are examples of what used to be “free”. Charging for these services
means new revenue for the airline industry. To minimize travel costs, travelers
must evaluate these optional services and their fees and decide which ones
they really need and want to pay for.
4.3.1 What Are Ancillaries?

Some air fares are all-inclusive, covering the cost of air transportation as well
as extras, such as meals, seat selection and baggage at no additional charge.
Other air fares only provide transportation. Ancillaries, also known as optional
amenities, are extras not included in the air fare. Ancillary revenue represents
non-ticket sources of revenue for airlines. Ancillary revenue is the income
received from the sale of optional ancillary services.
Several airlines offer a menu of optional ancillary services such as:
• priority check-in and • in-flight Internet • preferential seat
security screening (Wi-Fi) access assignments
• in-flight entertainment • cabin pillows and • assistance to unaccom-
blankets panied minors
• travel insurance • meals and beverages • airport lounge access
• transportation of pets
Many airlines generate ancillary revenue by “unbundling” the air transportation

from services such as checked baggage and meals or beverages served
onboard, and charging separately for them. A list of ancillaries and their fees
are normally published on each airline's website.

Figure 4.3.1—Sample airline website selling in-flight meals and snacks
Unit 4.3: Ancillaries 319

Key Learning Point

Ancillaries are optional amenities, products, and services sold by the airline,
separately from the air fare.
Study Check 4.3.1
1. Ancillaries are extra services that are not included in the cost of the air fare.
TRUE or FALSE?
(a) True
(b) False
2. Which would not be sold as an in-flight ancillary?

(a) a headset
(b) a boarding pass
(c) a meal
(d) a seat with extra legroom
3. Refer to Figure 4.3.1. Snacks are sold on this airline in which class of
service?
(a) First class
(b) Business class
(c) Economy class
(d) Premium class
4.3.2 Can Travel Agencies Sell Ancillaries?

Passengers can pay a basic price for the flight itself and then choose from a
range of ancillary services. The traveler decides which ancillaries, if any, to
purchase together with the air fare purchased. Allowing passengers to
purchase ancillary services they value empowers them to pay for the products
and service level that they want and need. For example, a family of four may
opt to pay extra for in-flight entertainment and checked baggage, while the
business traveler may choose to pay for pre-flight lounge and in-flight Wi-Fi
access.
At least 50% of the world's flights continue to be sold through travel agencies
who rely on Global Distribution Systems (GDSs) to display airline products.
The travel agent using the GDS system is an important distribution channel for
the airline industry. The airline industry can attract billions in revenue by
offering a full suite of ancillaries accessible to travel agents through the GDS
systems they use.
GDS suppliers are working to improve their technology to handle the rapidly
increasing number of airline ancillary options. Today, unbundled product
options are readily available to agents and passengers who book directly on
airline websites. GDS systems are evolving to offer the same ancillaries as do
airline CRS systems. The new automated platforms enable travel agents to
offer their customers choice and a high degree of personalization.

Through their GDS reservation systems, travel agents can:

• price airline ancillaries
• reserve ancillaries through a series of command entries
Key Learning Point

GDS technology is evolving to allow travel agents to offer ancillary services by
airline, book, collect payment and issue the Electronic Miscellaneous Docu-
ment (EMD) as proof of purchase for the ancillary services sold.
Study Check 4.3.2
1. How do travel agents book and sell ancillary services to customers?

(a) Through the airline website
(b) Through the GDS system
(c) Through the Air Extras system
(d) Through the airline call center
2. For each ancillary service sold to a customer, an EMD is issued as a proof

of purchase. TRUE or FALSE?
(a) True
(b) False
4.3.3 How Do Passengers, Travel Agents and

Airlines Benefit from the Sale of Ancillaries?
Benefits for Travelers
The major benefit to consumers is that they can personalize their travel
experience and as consequence reduce travel costs to a minimum. The
unbundling of air transportation from the ancillary services is appreciated by
travel consumers who are very price sensitive. Consumers benefit from a
menu-based approach where they can reduce the cost of travel with only a
minimum level of service. For example, passengers bring only hand luggage
and carry their own food and drink. For travelers who appreciate the extras, the
travel experience becomes more personal and enjoyable when they pay for
only those services they want.
Benefits for Travel Agents

Travelers want a seamless travel experience. They expect their travel agent to
simplify the process of making travel arrangements and provide convenience.
Travel agents provide extra value and convenience to their travel customers by
offering airline ancillaries. Agents did not always have the capability to sell
ancillaries through the GDS. It is therefore a benefit to offer a complete service
and book seats together with optional ancillaries in the same transaction. By
offering a convenient one-stop shopping capability, long queues at the airport
counter to pay for some optional services can be reduced. For travel agencies
with corporate customers, the ability to manage all aspects of the travel
experience including ancillaries, makes it easier to track and report air fare and
ancillary purchases to customers.

Benefits for Airlines

The major benefits for airlines are the extra revenue sources and the ability to
remain competitive on the air fares they sell. The sale of ancillaries generates
new revenue income for airlines. For some airlines, ancillary revenue now
represents between 15% and 30% of their total revenue. Every type of airline,
from large network carriers to small regional ones, values the opportunity to
generate ancillary revenues.
Key Learning Point

The sale of ancillaries gives passengers options to reduce the cost of travel by
air or increase personal choice and convenience. The sale of ancillaries
represents new revenue opportunities for airlines. Travel agents benefit by
providing opportunities to save on air fares and the convenience for their
customers to purchase customized services.
Study Check 4.3.3
1. What type of airline sells ancillaries?

(a) all airlines
(b) only small, low cost airlines
(c) only large international airlines
(d) only unprofitable airlines
2. Which is an example of the benefits of ancillaries to airlines?

(a) increased choices
(b) more personalized travel experience
(c) lower travel costs
(d) increased revenue income
3. Which statement is true?

(a) Ancillaries are optional and free of charge.
(b) Ancillaries can be pre-purchased by travelers.
(c) Ancillaries make air fares more expensive.
(d) Ancillaries are only available on low-cost airlines.
4.3.4 Reserving Ancillaries in the GDS System

The GDS system displays ancillaries available on booked flights when the
itinerary is priced. When an itinerary is priced by the GDS system, an alert
message is displayed indicating that optional ancillaries, or “extras”, are
available. For example, the alert message in the Sabre GDS system is
displayed as “AIR EXTRAS AVAILABLE-SEE WP*AE”.

A simple entry will display each ancillary available for each confirmed flight.
03SEP DEPARTURE DATE-----LAST DAY TO PURCHASE 14AUG/1552

BASE FARE TAXES TOTAL
1- CAD4851.00 416.52XT CAD5267.52ADT
XT 25.91CA 1.25XG 0.52RC 29.00SQ
2.23XQ 26.32YR 302.40YQ 13.23CN
15.66HK
4851.00 416.52 5267.52TTL
ADT-01 ZWCNTT C1OW D7XCGT
YMQ AC X/YVR AC BJS Q15.34 1836.05ZWCNTT CA HKG708.49C1OW AC
X/YTO Q4.24AC YMQ M2397.60D7XCGT NUC4961.72END ROE0.97764
REFUNDABLE/CXLFEE/CHGFEE
VALIDATING CARRIER - AC
AIR EXTRAS
ML-MEAL/BEVERAGE CXR SEG/CPA FEE
-- ADT-STANDARD MEAL AC 1-YULYVR 3.00
-- ADT-STANDARD MEAL AC 2-YVRPEK 3.00
-- ADT-STANDARD MEAL AC 4-HKGYYZ 3.00
-- ADT-STANDARD MEAL AC 5-YYZYUL 3.00
SA-PRE-RESERVED SEAT ASSIGNMENT CXR SEG/CPA FEE
-- ADT-SEAT ASSIGNMENT AC 1-YULYVR 15.00
-- ADT-SEAT ASSIGNMENT AC 2-YVRPEK 22.00
-- ADT-SEAT ASSIGNMENT AC 4-HKGYYZ 22.00 ‡
-- ADT-SEAT ASSIGNMENT AC 5-YYZYUL 15.00 ‡
Figure 4.3.2—Sample ancillaries displayed in a PNR fare quote
The screen displays chargeable and non-chargeable amenities. In

Figure 4.3.2, the GDS system displays a menu of extra services including
meals and seat assignment; all are chargeable in this example. The fee for
meals is set at CAD3.00 per flight. The fee for special seat assignment varies
per flight from CAD15.00 for domestic flights within Canada to CAD22.00 for
overseas flights.
The process for reserving an ancillary begins with a Special Service Request
(SSR) entry in the customer's reservation created in the GDS system. All SSR
entries use 4-character service codes. Without a confirmation of the service, it
would not be possible to process the sale and issue an EMD.

EMD-1058266400573 TYPE-A SYS-1A LOC-5KQNVS

INT-1 FCI-1 2 POI-MOW DOI-04JAN IOI-91496716
PAX- ALASSAD/BASHAR MR ADT
RFIC-C BAGGAGE
REMARKS-APRVD BY US
CPN-1 RFISC-OAA AY LHRHEL S-F SAC-016JKRIHFDKFF VALUE-4300
DESCRIPTION-EXCESS BAGGAGE
NON-REFUNDABLE
NON-EXCHNAGEABLE
PRESENT TO-FINNAIR
PRESENT AT-SVX
ICW-1052100660063C1
EXCESS BAGGAGE- 20 K RATE PER UNIT-EUR 5
SERVICE REMARKS-FRAGILE
CPN-2 RFISC-OAA 6X HELSVX S-O VALUE-2150
DESCRIPTION-FOLDABLE BICYCLE
PRESENT TO-FINNAIR
PRESENT AT-HEL
ICW-1722100660063C2
EXCESS BAGGAGE- 1 N RATE PER UNIT-EUR 50
SERVICE REMARKS-VERY EXPENSIVE BIKE
FARE F 150.00
EUR
EQUIV RUB 6450 BR 43
EXCH VAL RUB 6600 RFND VAL RUB 6600
TAX-01 X YQ 100 TAX-02 O YR 50
TOTAL RUB 6600
/FC 04JAN SVX AY HEL 20 5.00 HEL AY SVX 1 50.00 EUR150.00
FE AY ONLY
FO 105-2737420255SVX28DEC /92210016/105-2737420255
FP CASH
FT ARABTOUR
FOID
*TRN*
>
Figure 4.3.3—Sample EMD issued in AMADEUS for collection of prepaid baggage

SABRE ELECTRONIC MISCELLANEOUS DOCUMENT RECORD

INV:0111132 PNR IGVJHK
CUST:1234567890
EMD: 0861820006021 ISSUED:07MAY PCC:31D1 IATA:24393655
AKL
NAME: MATHESON/PETER MR FF: 1234567890123
NAME REF: 1234567890123456789 TOUR ID: 123456789012
FOP:CHECK
CPN A/L BRDOFF DATE QTY AIR EXTRA STAT
1 NZ AKLLAX N/A 1 BAGGAGE OPEN
BASE AMOUNT USD15.00 EMD TTL NZD20.00
EQUIV AMT NZD20.00
COMM:0
AKL NZ LAX 20.00 END
RFIC - C
ENDORSEMENTS/RESTRICTIONS - REFUNDABLE
EMD TYPE - ASSOCIATED
ASSOCIATED ELECTRONIC TICKET NUM: 0862845751955
Figure 4.3.4—Sample EMD issued in SABRE for collection of baggage fees
Key Learning Point

Travel agents provide a valuable service and convenience to customers when
they research, reserve and collect payment for ancillary services through the
GDS system.
Study Check 4.3.4
1. Ancillaries are displayed by the GDS system when you begin the search
for fares. TRUE or FALSE?
(a) True
(b) False
2. All amenities displayed in the GDS are chargeable. TRUE or FALSE?

(a) True
(b) False
3. Refer to Figure 4.3.3. What is the EMD value for the transportation of the
passenger's bicycle?
(a) EUR 20.00
(b) EUR 6600
(c) RUB 6600
(d) EUR 150.00

4. Refer to Figure 4.3.4. An ancillary fee of NZD20.00 is collected for what

service?
(a) a headset and blanket
(b) a special meal
(c) a checked bag
(d) access to an airport lounge
4.3.5 Unit Summary

Ancillaries, also known as optional amenities, are extras not included in the air
fare. Ancillary revenue represents non-ticket sources of revenue for airlines.
This unit also discussed the benefits of ancillaries and “unbundled air fare” for
passengers, travel agents, and airlines. You later learned how a travel agent
books ancillaries and can assist customers in booking the right services for
them. Lastly, you learned how the GDS system presents ancillaries for
purchase when booking a flight for a customer.

4.4 Baggage Allowance
• Define baggage and baggage allowance terminology (Unit 4.4.1).

• Explain general requirements and allowances for unchecked baggage
(Unit 4.4.2).
• Determine checked baggage allowances for different airlines, routes, and
Unit Learning classes of travel (Unit 4.4.3).
Objectives • Describe checked baggage allowances for children and infants
By completing this Unit, (Unit 4.4.4).
you will be able to: • Apply the Most Significant Carrier rule in determining checked baggage
allowance for interline journeys (Unit 4.4.5).
• Interpret the free baggage allowance for agency customers displayed in
GDS systems (Unit 4.4.6).
• Explain the concept of excess baggage and determine if excess baggage
charges apply (Unit 4.4.7).
• List examples of items that may be transported as checked baggage and
describe how to determine what items are allowed as checked baggage
(Unit 4.4.8).
• Describe the regulations for transporting pets as accompanied or checked
baggage (Unit 4.4.9).
• Explain baggage check-in procedures at airport counters and self-service
kiosks (Unit 4.4.10).
• Advise customers on how to minimize damage and loss to checked
baggage (Unit 4.4.11).
• List types of prohibited and restricted checked baggage items
(Unit 4.4.11).
• Offer luggage alternatives to travelers with lots of bags (Unit 4.4.12).
4.4.0 Unit Overview

Airlines are unbundling airfares and selling traditional products and services as
optional extras called ancillaries. These include seat selection, in-flight meals,
beverages and entertainment, and many more. The sale of ancillaries
generates important revenue for the airlines and helps them remain competi-
tive by keeping air fares as low as possible. The transportation of checked
baggage is an ancillary for some airlines while others offer limited free
transportation of checked baggage. In this unit, you will learn how travel
professionals research baggage allowance rules per airline and how free
baggage allowance is determined. The concepts of checked and unchecked
baggage will be defined. You will learn about baggage limits in terms of
maximum baggage weight, dimensions, and/or the number of pieces that each
passenger is allowed to carry. You will also learn about the charges that apply
when free baggage allowance is exceeded. In addition, this unit will outline the
rules concerning traveling with pets, guidelines for minimizing damage to
baggage as well as identifying prohibited articles. Finally, you will also get to
examine airport baggage security procedures.
Unit 4.4: Baggage Allowance 327

4.4.1 Definition of Baggage

The procedures for transporting, handling, and clearing passenger baggage
are not internationally standardized. Airlines set their own free baggage
allowances and charges based on commercial considerations. Except for
dangerous goods, the way baggage is handled, what articles are permitted,
and the amount of luggage allowed may differ from country to country, airline to
airline, class to class and between international and domestic routes.
Therefore, the information presented in this unit is a guide for travel
professionals and their customers traveling on flights operated by most
international airlines.
IATA defines baggage as “articles, effects and other
personal belongings of passengers destined to be
wor or used by them or necessary for their comfort
or convenience during the journey”.
Passenger baggage is transported in two ways: as unchecked baggage stored

by the passenger in the aircraft cabin; or as checked baggage which is
registered at check-in and stored by airport baggage handlers in the aircraft
hold. Each airline applies its own baggage allowance rules.
Key Learning Point

Every airline establishes its own rules on what personal items passengers are
permitted to travel with. Airlines also establish the number of baggage pieces,
size and weight that can be carried free of charge. Every airline can set its own
baggage allowances and fees, although many apply the same or similar
allowance policies and rules for competitive reasons.
Study Check 4.4.1
1. Which passenger baggage characteristic is not restricted for transportation

by an airline?
(a) dimensions
(b) model or brand
(c) quantities
(d) weight

2. Complete the definition of baggage: A passenger's personal belongings

intended to be worn or used by the passenger during their .
(a) flight
(b) check-in
(c) airport transit
(d) journey
3. Unchecked baggage is defined as baggage that .

(a) exceeds the limits of free allowances
(b) is transported in the cabin
(c) is only permitted in economy class
(d) belong to infants and children only
4. Baggage is best defined as a passenger's belongings.

(a) commercial
(b) required
(c) personal
(d) professional
4.4.2 Unchecked Baggage Allowance

In addition to the checked baggage allowance, airlines may allow passengers
to hand-carry baggage small enough for storage in the aircraft's overhead
compartments (above the passenger seat) or under a passenger seat.
Figure 4.4.1—Baggage overhead compartment in aircraft cabin

Also referred to as cabin, carry-on or hand baggage, unchecked baggage

remains with the passenger during the flight. Unchecked baggage is accepted
without charge, but there are limits to the quantity, dimensions, weight and
contents of unchecked baggage for every cabin class, subject to each airline's
own policies.
The generally accepted dimensions for carry-on baggage are a maximum
length 56 centimeters-cm (equivalent 22 inches-in), width 45 cm (18 in), depth
25 cm (10 in). The sum of the 3 dimensions of each carry-on bag should not
exceed 115 cm (45 in) including wheels, handles and side pockets. Baggage in
excess of these measurements must be transported as checked baggage in
the aircraft hold.
Figure 4.4.2—Generally accepted dimensions for carry-on baggage
The weight limits for carry-on baggage also vary considerably from one airline
to the next from 6 kg up to 23 kg. The actual weight is seldom verified, although
some airlines are now starting to check both the dimensions and the weight of
carry on luggage. Passengers traveling in higher classes may be allowed
heavier carry-on bags. It is important to check with the particular airline to know
what baggage allowances are offered to passengers.
An airline's primary concern is to ensure a high level of customer safety and
comfort on board its flights. There are strict limits on what can be transported in
unchecked baggage.

Figure 4.4.3—Unchecked (carry-on) baggage checked at the airport's security

checkpoint
There are limitations on the amount of liquid, creams, aerosols and gels that
can be carried on board to a maximum of 100 ml per container. All containers
must fit into a one-liter plastic bag. Just before approaching the security
screening point at an airport, passengers carrying containers of liquids, creams
aerosols and gels must remove them from their personal carry-on baggage.
They must be presented in one clear transparent re-sealable plastic bag
(measuring no more than one liter). These must be carried separately from
other carry-on items for presentation at airport security screening checkpoints
before entering the airport departure area.
Space on any aircraft is limited. There may be occasions when there is still not
enough room even after having met the size limitations. It is therefore wise to
advise customers to only pack items required during the flight in their carry-on
baggage.
Key Learning Point

Unchecked or carry-on baggage remains with the passenger and must be
stored in overhead compartments or under passenger seats on board the
aircraft. Only one carry-on bag is permitted per passenger. The size of a carry-
on bag is limited to a maximum weight and size. Furthermore, a limited amount
of liquids, creams, aerosols, and gels is permitted in unchecked baggage.

Study Check 4.4.2
1. Which is another common industry term for unchecked baggage?

(a) cabin baggage
(b) compartment baggage
(c) cargo baggage
(d) small baggage
2. Which is true of unchecked baggage?

(a) There are no weight and size restrictions for travel in business class.
(b) Some airlines collect ancillary fees to transport unchecked baggage.
(c) An unopened 300-milliliter bottle of water is not permitted.
(d) It is stored in the aircraft cabin galley compartments.
4.4.3 Checked Baggage Allowances

Checked baggage is baggage too large to store in the aircraft cabin; hence,
transported in the aircraft hold or plane's underbelly. The airline is responsible
for the safe transportation of checked passenger baggage.
Figure 4.4.4—Checked baggage is stored in the aircraft hold, a storage area in the
belly of the aircraft

Each airline sets its checked baggage allowance rules, including the maximum
number, weight, and size of checked bags they will accept. In the airline
industry, the number of checked bags is expressed as “pieces,” and so an
airline that permits passengers to check 2 bags expresses this allowance as
“2 pieces.” A bag's size is expressed as the total sum of the bag length, width,
and height. A checked bag that measures 55 cm in length, 35 cm in width and
22 cm in height is said to have total dimensions of 112 cm (55+35+22).
Each airline publishes what is not permitted (prohibited) in checked baggage,
as well as a list of items that can substitute for a checked bag. These items
consist of various sports equipment and musical instruments. One airline may
accept ski equipment as free checked baggage while another may refuse to
accept it as free checked baggage.
The fees for extra bags or bags that exceed the weight and size limitations vary
by airline. There are restrictions imposed by all airlines on the weight, length,
width, and height per bag. Extra bags or larger, heavier bags will either be
refused or accepted with a fee. It is necessary to verify checked baggage
allowances with each airline.
The price of an airline ticket includes the transportation of the passenger. It
sometimes includes the transportation of the passenger's checked baggage. It
is increasingly commonplace for a fee to be charged for the transportation of
checked baggage. Free baggage allowance also varies by airline, routing and
class of fare paid. Members of airline loyalty or frequent flyer programs may be
granted the privilege of extra baggage allowances without fees. Airlines set
their own passenger baggage transportation policies on their services, deciding
their own allowances and charges. It is critical to check with individual airlines
for accurate and up-to-date information. All airlines publish their baggage
allowance rules and policies on their website and in GDS systems.
Alternatively, you may also refer to the Passenger Air Tariff General Rules 3.5
which also publishes various carrier baggage rules. An extract is shown below.
Figure 4.4.5—Sample of carrier free baggage allowance published in the

Passenger Air Tariff General Rules 3.5

Figure 4.4.6—Sample of excess baggage table from the Passenger Air Tariff
General Rules book
Quote excess baggages charges in CAD when exiting (ex) Canada, USD for ex
USA, GBP for ex UK and EUR for ex Europe.
Although airlines competing on high traffic routes tend to have the same or
similar baggage allowance rules, they cannot be generalized. Each airline
publishes its baggage allowances per routing, based on the passenger's origin
and destination countries. An airline can restrict free baggage allowance to a
number of pieces, or to a maximum weight and size, or a combination of both.
Different baggage allowance limitations for travel on Trans-Atlantic, Trans-
Pacific, intercontinental, intra-continental, and domestic routes may also vary
by airline. It is necessary to research each airline's baggage allowance
information to accurately advise a travel customer on baggage allowance.
Key Learning Point

There are no standard rules for the transportation of checked baggage
accompanying a passenger. Free baggage allowances vary by airline. They
also set their own baggage fees when free checked baggage allowances are
exceeded. For competitive reasons, airlines operating flights on the same
routings tend to grant the same free baggage allowances, though they are not
required to do so.

Study Check 4.4.3
1. Which is true?
(a) Every airline sets its own checked baggage allowance limitations and
fees.
(b) Standard baggage limitations apply for travel in any class per routing.
(c) Checked baggage accepted free of charge must be stored in the
aircraft cabin.
(d) Airlines are not responsible for damage or loss of checked passenger
baggage.
2. When the baggage allowance set by an airline limits the number of

checked bags, there is no maximum weight restriction per bag. TRUE or
FALSE?
(a) True
(b) False
3. Consider an adult passenger traveling on Iberian Airlines from New York

(NYC) to Madrid (MAD) on an economy class ticket. What is the
passenger's free checked baggage allowance according to Figure 4.4.5?
(a) Two bags with maximum combined weight of 20 kg and measuring
less than 203 cm per bag
(b) Maximum combined baggage weight of 20 kg, each bag measuring no
more than 203 cm
(c) Two bags, each weighing maximum 23 kg and each measuring
maximum 158 cm
(d) One bag weighing a maximum 20 kg, measuring between 158 and
203 cm
4. Refer to Figure 4.4.5. What is the baggage allowance policy for a

passenger traveling in Prestige class on KE from Paris to Seoul (SEL)?
(a) Two pieces weighing up to 32 kg each
(b) One piece weighing 23 kg or less
(c) One piece measuring exactly 158 cm
(d) One piece weighing a maximum of 20 kg
5. Refer to Figure 4.4.6. How much is the excess baggage charge from Miami
to Madrid on AA for an economy class passenger traveling with 2
suitcases?
(a) There are no fees to pay.
(b) USD 135.00
(c) USD 200.00
(d) USD 100.00

4.4.4 Checked Baggage Allowance for

Children/Infants
The free baggage allowance for accompanied and unaccompanied children is
normally the same as the allowance for adults.
Infants traveling for free and not occupying a seat are normally entitled to
checked baggage. Infant checked baggage allowance generally permits:
• one bag (piece) with maximum dimensions of 115 cm (45 in) and a
maximum weight of 10 kg (22 lb)
• one checked or carry-on fully collapsible stroller/pushchair, infants carrying
basket, or infant's car seat, which may be carried in the passenger cabin,
subject to the availability of space
These are general guidelines; it is advisable to consult the airline website to
determine baggage allowances for children and infants.
Key Learning Point

Children are entitled to the same free checked baggage allowances as adults.
Infants traveling for free may also be allowed to check a bag as well as other
items required by infants.
Study Check 4.4.4
1. For infants, one collapsible infant stroller is accepted as free baggage on

condition that there is no checked bag. TRUE or FALSE?
(a) True
(b) False
4.4.5 Assessing Baggage Rules for Interline

Itineraries
Consider an online journey such as SYD QF SIN QF X/BNE QF SYD. All flights
are booked on the same airline “QF”. The booking agent can find the QF
baggage provisions (allowance rules and charges) in the GDS system or on the
Qantas Airlines website.
But what happens when the journey requires interline travel involving multiple
airlines on a single ticket purchased in a single transaction? Must the
passenger obey the baggage provisions for each transporting airline per flight
flown? That could be very inconvenient for the passenger and would make
interline travel confusing.
IATA's Resolution 302 defines a methodology to determine which transporting
airline's baggage provisions apply to an interline itinerary. IATA has estab-
lished a formula for determining baggage allowances and charges applicable to
interline portions of journeys. Resolution 302 ensures passengers that when
they travel interline, at a through fare, they are not subject to multiple baggage
allowance rules per checked-in portion. A checked-in portion of an itinerary is
the portion flown from the point where passenger baggage is checked-in, to the
next stopover point where the baggage is off-loaded and collected by the
passenger.

When the baggage provisions of interlining airlines do not match, then

Resolution 302 guidelines will determine which Marketing Carrier's provisions
apply for each check-in portion of the journey. The airline designated as the
one whose baggage provisions apply is referred to as the most significant
carrier or MSC.
Most Significant Carrier (MSC)

Before determining the MSC (also known as Baggage Determining Carrier) in
an interline portion of an itinerary, it is necessary to understand IATA areas.
IATA divides the world into three Traffic Conference (TC) Areas:
TC1–TC2–TC3.
Figure 4.4.7—IATA Traffic Conference Areas for MSC baggage purposes
Each area is further divided into sub-areas.
IATA Traffic Conference/ IATA Sub-area

Area
TC/Area 1: North America, USA, Canada, Mexico Caribbean Central
Central and South America South America (Brazil, etc.)
America, Hawaii, etc.
TC/Area 2: Europe, Middle Europe Middle East (UAE, etc.) Africa
East, Africa, etc.
TC/Area 3: Asia, Guam, Japan, Korea South East Asia (China, Taiwan,
South West Pacific, etc. Indonesia, Malaysia, Philippines, Singapore,
Vietnam, Guam etc.) South Asian Subcontinent
(India, etc.) South West Pacific (Australia, New
Zealand, Tahiti, etc.)
Table 4.4.1—IATA Areas and corresponding sub-areas

The IATA Traffic Conference Area map shown above outlines each sub-area in
detail. It will be helpful for you to refer to the map as you study this unit.
Understanding these IATA TC Areas is important because it helps us to
determine which airline to designate as the MSC in an interline portion of the
journey. When doing so, take note of the four different crossings.
1. For travel between two TC Areas, the airline transporting the passenger on
the first sector that crosses from one area to another is considered the
MSC.
For journeys crossing all three TC Areas, the first airline to transport the
passenger from one Area to another is the MSC.
2. For travel entirely within one Area, crossing multiple sub-areas, the first
airline to cross from one sub-area to another sub-area is the MSC.
3. For travel entirely within a sub-area, the airline transporting the passenger
on the first international sector is the MSC.
4. For journeys entirely within one country, the MSC is the first airline
checking-in the passenger's bags.
Note that in case of code share flights, the marketing airline's baggage
provisions apply, unless that airline publishes a rule stating that the operating
airline's provisions apply.
With a firm understanding of IATA TC areas and how to designate a MSC, you
can now determine which baggage provisions in which to implement for a
journey.
Baggage Provisions
Baggage provisions are defined as baggage allowance rules and charges. How
can baggage allowance rules and charges for interline portions of journeys be
established where flights are booked on multiple airlines? For example,
consider the following interline journey in economy class from Lagos to Cairo:
LOS ET X/ACC MS CAI GF X/KWI KU LOS
An “X/” appearing before a city code at an intermediate point means that the
point is a connection between two flights - the passenger does not stop at this
point.
How do you determine how many bags or how much baggage weight the
passenger can check in Lagos and in Cairo? What baggage charges would be
collected, if any? For interline portions of journeys, there are four conditions to
determining baggage provisions.
Condition 1: All interline carriers share identical baggage provisions.
If the published baggage provisions among all interlining carriers are the same;
these provisions will apply. If the baggage provisions (allowances and charges)
for ET, MS, GF and KU are identical, then there is no need to identify an MSC.
Suppose that each carrier's baggage provisions for the journey are:
Egyptair 1 piece; maximum 23 kgs

Gulf Air 1 piece; maximum 30 kgs
Kuwait Airways 1 piece; maximum 20 kgs
Ethiopian Airlines 1 piece; maximum 23 kgs
Table 4.4.2—Baggage provisions by interline carrier

Only ET and MS provisions match. These airlines will transport the passenger
from Lagos (LOS–baggage check-in point) to Cairo (CAI-next stopover and
baggage collection point). Hence, the passenger can check in 1 bag weighing
no more than 23 kg.
However, for the check-in portion from Cairo to Lagos, the transporting airlines
GF and KU do not apply identical baggage provisions. Consequently, another
methodology applies to determine the baggage provisions for the return portion
of the journey.
Condition 2: Interlining airlines partly share common baggage pro-
visions.
Where one or more published baggage provisions differ between interlining
airlines, first apply common provisions, if they exist. For example, Ethiopian
Airlines and Egyptair publish the same checked baggage provisions with 1 bag
weighing no more than 23 kg. However, these airlines differ in hand luggage
requirements. Ethiopian Airlines allows one 118 cm (23 x 40 x 55 cm) carry-on
bag weighing no more than 7 kgs, while Egyptair allows one 158 cm bag
weighing no more than 8 kgs.
Then determine and apply the published baggage provisions of the MSC.
Since travel is between Africa-Middle East sub-areas, and MS is the airline that
crosses from Africa to the Middle East, MS is the MSC. MS baggage provisions
apply to the outbound portion from LOS to ACC to CAI.
Condition 3: The MSC does not publish baggage provisions.
If the MSC does not publish baggage provisions for the journey, apply the
published baggage provisions of the carrier accepting the baggage at check-in.
But what if there are no provisions published by the check-in airline?
Condition 4: The check-in airline does not publish baggage provisions.
If the airline accepting the baggage at check-in does not publish baggage
provisions, apply the published baggage provisions of each operating airline
sector-by-sector.
Canada/USA exception
For passengers whose ultimate ticketed origin or destination is a point in the
USA or Canada, apply the baggage provisions (allowances and charges) of the
first Marketing Carrier for the entire journey.
Apply the formula for Most Significant Carrier to the sample interline journey
portions. Baggage check-in points are highlighted in bold typeface:
Example 1: AMS LH X/FRA AI DEL AI AMS
In this journey, travel is from TC 2 to TC 3. AI (Air India) is the MSC outbound
and inbound and the baggage provisions for AI will apply to the entire journey.
Example 2: YVR AC X/YTO KL X/AMS KL SEL KE YVR
For travel originating in Canada, the baggage rules of the first Marketing
Carrier (AC) applies to the entire journey.
Example 3: MIA AA MEX AM BUE AR MIA
This journey originates in the USA which applies the First Marketing Carrier
rule, i.e. AA baggage rules apply throughout the entire journey. The
baggage–provisions for AA apply to all flights in this journey.

Example 4: HKG CX X/SIN SQ KUL

The baggage is through checked from HKG to KUL. Travel is within the
Southeast Asia sub-area. Therefore CX (Cathay Pacific) is the MSC as it is the
first airline to perform international transportation. Baggage provisions for CX
will apply to the HKG-SIN and SIN-KUL segments of this journey. If SIN were a
stopover point, then two baggage check-in portions would exist; where CX
provisions apply to HKG-SIN and SQ provisions apply to SIN-KUL.
Key Learning Point

For each check-in portion of interline journeys, the baggage provisions
published by the Most Significant Carrier (MSC) will apply to the check-in
portion. For journeys from or to a point in Canada/USA, the first marketing
carrier provisions apply to the entire journey.
Study Check 4.4.5
Consult the map above to answer the questions below. Bolded city codes are
check-in points in each journey.
1. Determine the MSC for the first check-in portion:

ATH–TU–X/ROM–AZ–AMM–KQ–NBO
(a) Alitalia
(b) Tunisair
(c) Kenya Airways
(d) Air New Zealand
2. Determine the MSC for the last check-in portion:

LON–BA–X/TPE–CX–ICN–CX–X/HKG–SQ–SIN–SQ–X/DEL–AI–LON
(a) Air India
(b) Cathay Pacific
(c) Singapore Airlines
(d) British Airways

MEX–AM–X/MIA–IB–X/MAD–IB–FRA–JL–TYO–UA–X/LAX–AM–MEX
(a) Aeromexico
(b) United Airlines
(c) JAL
(d) Iberia


MBA–KQ–X/NBO–ET–X/DAR–MS–HRE–SA–JNB–SA–X/ADD–ET–NBO
(a) Kenya Airways
(b) Egyptair
(c) South African Airways
(d) Ethiopian Airlines

PAR–AF–X/NYC–DL–LAX–UA–HRE–SA–JNB–SA–X/LON–BA–PAR
(a) United Airlines
(b) Delta Air Lines
(c) Air France
(d) British Airways
4.4.6 Determining Baggage Allowance for Agency

Customers
In most GDS systems, when a confirmed itinerary is priced, the system
responds with the applicable air fare and free baggage allowance for the
journey. The GDS system automatically inserts a baggage allowance code in
the passenger ticket as well:
“PC” or “P” is used when the allowance is limited to a total number of bags
(however, each bag is subject to a maximum weight and dimensions).
“KG” of “K” is used when the allowance is limited to a total baggage weight.
FARE NOT GUARANTEED UNTIL TICKETED
BASE FARE EQUIV AMT TAXES TOTAL

EUR1260.00 CAD1802.00 320.79XT CAD2122.79ADT
XT 200.16YR 9.35DE 38.73RA 35.75OY
14.30TR 21.09AE 1.41TP
FRA TK X/IST TK AUH919.15 TK X/IST TK FRA919.15C NUC1838.30END
ROE0.685142
VALIDATING CARRIER SPECIFIED - TK
NONEND/TK ONLY
01 O FRA TK 1592C 16OCT 310P 16OCT30K
02 X IST TK 868C 16OCT 825P 16OCT30K
03 O AUH TK 869C 21OCT 245A 16OCT30K
04 X IST TK 1587C 21OCT 820A 16OCT30K
FRA
COMM PCT 0 ‡
Figure 4.4.8—GDS stored fare identifies baggage allowance for the journey as
maximum weight

There may be times when the GDS system cannot provide the baggage
allowance information for a priced or ticketed journey. In such cases, the
booking agent must check with the airline (referring to the airline website or
telephoning the airline) to determine the baggage allowance, if any.
FQ1 - S1 30MAY AB/AG

P1 PADIMA/YALMR G 05JUN * AUD 748.40
SYD NZ AKL 273.70YLPX30A NZ SYD 273.70YLPX30A NUC 547.40 END
ROE1.311647
FARE AUD 718.00 TAX 27.00AU TAX 3.40QK TOT AUD 748.40
S1 FB-YLPX30A
BG-CHK
LAST DATE TO PURCHASE TICKET: 31MAY
T S1
Figure 4.4.9—GDS stored fare advises to “check” with the airline for baggage
allowance information
TKT-0017883411342 RCI- 1A LOC-728BXU

OD-LHRLHR FCMI-0 POI-YUL DOI-11AUG 1 IOI-10000111
1.BERMAN/ANN MS ADT ST
1 OLHR AA 131 G 23AUG 0900 OK GLXAP6M O 23AUG23AUG 2PC
2 OJFK AA 100 G 01SEP 1335 OK GLXAP6M O 01SEP01SEP 2PC
LHR
FARE F GBP 350.00
TAX GBP 20.00GB
TAX GBP 16.14US
TAX GBP 11.58XT
TOTAL GBP 397.71
/FC LON AA NYC334.05GLXAP6M AA LON33ob4.05GLXAP6M NUC668.11END ROE
0.523869 XT3.67XY 2.62YC 2.36XF 1.62XA 1.31AY XF JFK4.5
Figure 4.4.10—GDS electronic ticket record displays baggage allowance for the
journey as maximum number of pieces
GDSs make it possible for travel agencies to collect pre-paid excess baggage
fees. The ability to pay for the air fare together with airline baggage fees is a
valuable service and convenience to travelers. It eliminates the need for
agency customers to line up at the departure check-in counter to pay baggage
fees. Agencies serving business travel customers can accurately report the
cost of baggage fees to their corporate customers and provide the inclusive
cost for air travel.
Key Learning Point

The GDS will display the baggage allowance for a journey as a maximum
number of pieces or maximum weight when the itinerary is priced or the
e-ticket is issued. When the baggage allowance is expressed as a number of
pieces, each bag is limited to a maximum weight and size.

Study Check 4.4.6
1. Baggage allowance for a flight is displayed to a travel agent when a

reservation is priced. TRUE or FALSE?
(a) True
(b) False
2. Refer to the PNR stored pricing image below. What is the checked
baggage allowance for this journey?
01 JEFERSEN/AND*
LAST TKT DTE 07JUN - DATE OF ORIGIN
---------------------------------------------------------------------------------
AL FLGT BK DATE TIME FARE BASIS NVB NVA BG
CDG
SFO AF 80 Y 07JUN 1130 YLWE 1P
CDG AF 81 Y 14JUN 1530 YLWE 1P
EUR 542.00 07JUN PAR AF SFO 356.31YLWE AF PAR 356.
31YLWE NUC712.62END ROE0.760570 XT 3.80Y
EUR 23.43US C 3.42XF 2.36XA 1.90AY XF SFO4.5
EUR 5.32XY
EUR 11.48XT
EUR 582.23
(a) 2 bags free of charge
(b) 1 bag free of charge
(c) any number of bags with total weight of 23 kg
(d) no checked baggage is allowed free of charge
3. Refer to the image of a stored fare below. What is the checked baggage
allowance for this journey?
FQ1 - S1-2 30MAY AB/AG

P1 KHOO/JAMESMR G 05JUN * SGD 2872
SIN SQ SFO 312.00 SQ SIN 312.00NUC 624.00 END ROE1.407000
FARE SGD 878 TAX 43US TAX 17XF TAX 11AY TAX 10XY TAX 7YC TAX 4 XA
TOT SGD 970
S1 FB-YLMEZ
BG-20K
S2 FB-YLMEZ
BG-20K
(a) 32 kilograms
(b) 40 kilograms
(c) 20 kilograms
(d) 23 kilograms

4. Refer to the electronic ticket image below. Identify the baggage allowance
for the journey.
TKT-0013600036797 RCI- 1A LOC-728BXU

OD-LHRLHR SI- FCMI-0 POI-YUL DOI-30MAY IOI-987654321
1 LHR AA 131 G 11SEP1600 OK GLXAP6M O 0PC
2 OJFK AA 100 G 20SEP1820 OK GLXAP6M O 0PC
LHR
FARE F GBP 452.00
TOTALTAX GBP 55.91
TOTAL GBP 507.91
/FC 30MAY LON AA NYC 332.90GLXAP6M AA LON 332.90GLXAP6M NUC665
.80END ROE0.6789 XFJFK4.5
FP CCVI4207807113242347/0914
FOR TAX/FEE DETAILS USE TWD/TAX
FREQUENT FLYER AA395V470
(a) 30 kg of free baggage is allowed.
(b) 2 checked bags are allowed free of charge.
(c) 1 checked bag is allowed free of charge.
(d) No checked bags are allowed free of charge.
5. Refer to the electronic ticket image below. Identify the baggage allowance
for the journey.
TKT-1253600036806 RCI- 1A LOC-D7NE82

3.WOLFE/JAMES MSTR CNN ST
1 LHR BA 215 J 15SEP1550 OK J1CH O 2PC
2 OBOS BA 214 J 29SEP2010 OK J1CH O 2PC
LHR
FARE F GBP 1984.00
TOTALTAX GBP 54.89
TOTAL GBP 2038.89
/FC 30MAY LON BA BOS 1461.22J1CH BA LON 1461.22J1CH NUC2922.43
END ROE0.6789 XFBOS3
FP CCVI4082849571539611/0614
(a) 1 bag free of charge
(b) 2 bags free of charge
(c) any number of bags with total weight of 23 kg
(d) no checked baggage is allowed free of charge

4.4.7 Excess Baggage

There will be charges for checked baggage that exceed the allowed number,
weight and size. Each airline imposes a maximum of excess baggage that
passengers can check in. The formula and rates for calculating excess
baggage charges are determined by each airline. Additional checked pieces
may be accepted with a fee depending on the availability of space on the
aircraft.
Example 1
Journey SYD–QF–LAX
Fare class Business class
Loyalty program None
membership
Bags to check 4 bags weighing 30 kg each and measuring 45 cm x
60 cm x 20 cm each
Free allowance 3 pieces; maximum weight 32 kg per bag; maximum
dimensions 158 cm
Excess baggage 1 piece weighing 30 kg and measuring 45 cm x 60 cm
x 20 cm
Figure 4.4.11—Baggage allowance for travel from Australia to the Americas

Can the passenger check in the fourth bag? If so, will the passenger have to
pay a fee for it? Let's look at Figure 4.4.11 displaying the airline's policies on
excess baggage to determine applicable baggage fees:
International - other than The Americas
Destination Cost for each kg (AUD)
International - between Australia and $15 per kg
New Zealand, New Caledonia and
Papua New Guinea
Asia
Dubai
South Africa, and Europe
International - The Americas^

Destination Charge in AUD
International - between Australia and $120 per extra piece $50 heavy
The Americas^ charge for each piece weighing over
23 kg#
Note: No single item of Checked Baggage may exceed 32 kg (70 lb).
^ The Americas means North and South America.
+ Charges are inclusive of GST for Australian Domestic and Regional
QantasLink flights.
# A heavy charge will apply at the airport if your allowance is 23 kg per piece
and any piece exceeds that weight. No single item of checked baggage may
exceed 32 kg.
Figure 4.4.12—Excess baggage fees for travel from Australia to the Americas
www.qantas.com.au/travel/airlines/prepaid-additional-baggage/global/
en#airport-excess-baggage-and-heavy-charges
Applicable excess baggage fee for example 1:

As the fourth bag is an extra piece above the free permitted, the extra piece
charge of AUD 120.00 applies. Additionally, because the forth bag weighs
30 kg (more than 23 kg) a fee of AUD 50.00 also applies. Therefore the
passenger must pay a total of AUD 170.00 to check in the fourth bag.
Example 2
Journey SYD–QF–NYC–AA–ATL–AA–NYC–SYD
Fare class Economy class
Loyalty program None
membership
Bags to check 1 bag weighing 32 kg measuring 45 cm x 70 cm x
30 cm and 1 bag weighing 20 kg, measuring 20 cm x
50 cm x 25 cm
dimensions 158 cm per bag
x 30 cm
As the first bag weighs more than the free allowance (weighing 32 kg which is
more than 23 kg), it is in excess of the free allowance. Although the passenger

does not check in more than the allowed two pieces, each bag must weigh a
maximum of 23 kg. Therefore, an excess baggage fee of AUD $50.00 must be
paid to check-in the bag.
Example 3
Journey SYD–QF–NYC–AA–ATL–AA–NYC–SYD
Fare class Economy class
Loyalty program Silver
membership
Bags to check 1 bag weighing 32 kg measuring 45 cm x 70 cm x
30 cm and 1 bag weighing 20 kg, measuring 20 cm x
50 cm x 25 cm
dimensions 158 cm per bag
x 20 cm
As the first bag weighs more than the free allowance (weighing 32 kg which is
more than 23 kg), it is in excess of the free allowance. Although the passenger
only checks in two bags (less than the allowed three pieces), each bag must
weigh a maximum of 23 kg. Therefore, an excess baggage fee of AUD $50.00
must be paid to check in the bag.
Key Learning Point

Excess baggage limits and charges are set by each airline per routing and fare
class paid.
Study Check 4.4.7
Answer the following questions based on the following scenario and infor-
mation.
Mr. Morena has purchased an economy class fare to travel from Rome, Italy to
Los Angeles, USA. He checks in two bags at the American Airlines airport
counter in Rome. Each of Mr. Morena's bags weighs less than 23 kg. The
dimension of the first bag totals 158 cm, while the second measures 148 cm.
The transporting airline publishes the following information on baggage
allowance:

1. How many bags is Mr. Morena allowed at no charge?

(a) 0
(b) 1
(c) 2
(d) 3
2. How much is Mr. Morena charged in total for checked baggage?

(a) no charge
(b) $60 USD
(c) $120 USD
(d) $180 USD
4.4.8 Special Provisions for Transporting Items

other than Luggage as Checked Baggage
Certain passenger categories are allowed to check in extra items, either carried
in the hold or in the cabin. For example, passengers dependent on a
wheelchair, crutches, braces, or other prosthetic devices can check them free
of charge, in addition to their free baggage allowance.
The following items may be accepted as a substitute for one piece of checked
baggage:
• Camping equipment (one sleeping bag or bedroll, one Rucksack/
Knapsack/Back pack/Tent sack)
• Snow-skiing equipment (one pair of snow skis with one pair of ski poles
and one pair of ski boots)
• One golf bag, golf clubs and pair of golf shoes
• Bowling equipment
• One suitably packed bicycle (non-motorized, single seat touring or racing
bicycle), provided the handlebars are fixed sideways and pedals are
removed.
• One pair of standard water skis or one slalom water ski.
• One suitably packed fishing equipment
• One surfboard within 108 inches in length
• Certain sporting firearms (subject to each airline's conditions of carriage)
• Any portable musical instrument not exceeding 100 cm (39 inches) in
length

Figure 4.4.13—Extract from PAT General Rules on baggage fees for certain
sporting equipment
Key Learning Point

Special charges may apply if passengers wish to transport large or fragile
articles such as sporting equipment or musical instruments.
Apply Your Learning

Look up the policies for your national airline. Are their restrictions as to what
can be checked in as part of your baggage allowance? If so, what are the
restrictions?
Study Check 4.4.8
1. Most sporting equipment can be substituted for luggage in the checked

baggage allowance. TRUE or FALSE?
(a) True
(b) False

4.4.9 Transporting Pets as Accompanied Baggage

Pets, usually limited to dogs, cats and household birds, may be accepted as
checked baggage when the transporting airline permits it. Like other check-in
items, airlines restrict the size of the container and the weight of the pet. All
passengers attempting to transport their pets should check with a veterinary
doctor before planning to travel. Dogs are only transported if they are
accompanied by valid health and rabies vaccination certificates. They must be
properly harnessed, muzzled and crated in a leak-proof container. Passengers
traveling with pets must make advance arrangements with the airlines to
transport them.
Figure 4.4.14—Airport baggage handlers loading pet kennels into the aircraft hold
If accepted as checked baggage, the pet, together with its container (kennel)
and food, will not be included in the free baggage allowance of the passenger.
Pet containers must be transported in the aircraft's hold compartment–the
same area where checked baggage is stored. Excess baggage charges apply.
Dogs accompanying sight- and hearing-impaired passengers (seeing-eye or
hearing-ear dogs) can be transported free of charge and may be allowed to
travel in the passenger cabin.
The transportation of pet dogs or cats in the passenger cabin is permitted by
some airlines provided that:
• the pet traveling in a kennel
• the kennel is small enough to fit under the passenger seat
• the combined weight of the animal and the container do not exceed 5 kg
• the pet kennel must provide sufficient space for the pet
• the pat vaccination and import documents are in order
Passengers are advised to check with the airline for further details. The
passenger owner assumes all risk of injury, sickness or death of the animal.
Entry permits and other documents are also required by countries of entry or
transit. As with passengers who are denied boarding by the airline if they do not

have proper passports and visas for their destinations, a pet may be denied
boarding if veterinary and other import documents are not in order. Moreover,
the airline is not responsible if the animal is refused entry into a foreign country
or passage through any country. Upon arrival in certain countries, animals may
be kept in quarantine for a period of time, sometimes up to 9 months, before
being allowed to live with their owner.
Figure 4.4.15—Sample airline website information for transporting pets with Air
Canada www.aircanada.com/en/travelinfo/airport/baggage/pets.html
Figure 4.4.16—Pet in Cabin

Key Learning Point

All necessary permits and vaccinations must be obtained before traveling with
pets.
Study Check 4.4.9
1. Pets can only be transported in the aircraft hold. TRUE or FALSE?

(a) True
(b) False
2. The airline must issue travel documents to enter or transit through a

country. TRUE or FALSE?
(a) True
(b) False
3. According to Figure 4.4.15, transportation of a pet in the passenger cabin

on Air Canada flights may be permitted if the pet and kennel weigh less
than .
(a) 2 kg
(b) 5 kg
(c) 7 kg
(d) 10 kg
4.4.10 Checking Baggage at the Airport

4.4.10.1 Checking in Baggage at the Service Counter
Check-in is normally the first procedure for departing passengers. Checked
baggage is baggage presented at the airport check-in counter at the time of
collecting boarding passes. Checked baggage is normally taken by the airline's
check-in agent who weighs each bag and produces a baggage tag which is
attached to each checked bag. The baggage tag displays the airline and flight
number the baggage will board, the passenger name and the next destination.
A reference number to this information is also barcoded on the baggage tag
and messages are sent from the DCS to other baggage systems that use this
same number.

Figure 4.4.17—Baggage weighed and tag printed at the service counter
The airport agent also produces a corresponding baggage receipt which is the
passenger's proof of the checked bag. The receipt is normally affixed to the
passenger boarding pass or passport back cover, but it may also be provided
on plain paper or electronically via e-mail or SMS. This receipt displays the
airline baggage tag number attached to each checked baggage. The receipt is
very important to have in case of lost baggage or for collecting it on arrival at
the destination.
Then the checked bag is loaded on a moving belt to the baggage sorting and
loading center. Machines located on the baggage belt read the bar coded
information on the baggage tag so that each bag is directed to the correct
aircraft. After check-in procedures are complete, checked baggage is not
accessible to the passenger between the time of airport check-in and arrival at
the baggage claim area of the destination airport.
Figure 4.4.18—Checking baggage at the service counter

4.4.10.2 Checking Baggage at a Self-Service Kiosk

In the same way that passengers can access their boarding passes at a
check-in counter or a self-service kiosk, the same applies to baggage. Upon
scanning the passenger's passport, the kiosk retrieves the passenger's
reservation. Seat numbers are assigned by the kiosk if they have not already
been assigned, and the passenger is asked whether there are baggages to be
checked-in. Once the passenger confirms the number of pieces, the machines
prints the necessary baggage tags and receipts. The passenger would then
attach a printed bag tag to each piece checked-in. In some airports, the kiosk
instructs the passenger to collect baggage tags from the agent supervising the
baggage drop-off counter. Instead of performing these baggage check-in
procedures, the counter agent simply checks that each bag is tagged and loads
the tagged baggage on a baggage belt.
Figure 4.4.19—Self-service kiosks at check-in
Key Learning Point

Checked baggage is handed over to the airport counter staff at the time of
check-in or at the baggage drop-off area if the passenger checks in at a self-
service kiosk. An airline agent weighs and labels each checked bag. Most
passengers do not see their luggage again until they collect it at the arrival
destination. If a passenger needs to connect between flights, there is normally
no need to collect luggage and re-check it onto another plane as long as the
connecting flights arrive and depart from the same terminal building.

Study Check 4.4.10
1. When passengers check in for flights at an airport counter they also check
their baggage. TRUE or FALSE?
(a) True
(b) False
2. Once baggage has been checked at the departure airport, passengers can
access it at each airport they stop at before reaching the destination
airport. TRUE or FALSE?
(a) True
(b) False
3. Passengers may check in bags either at the check-in counter or at

a .
(a) baggage claim belt
(b) kiosk
(c) security checkpoint
(d) transit hall
4. When checking in at an airport kiosk, the passenger prints their own

boarding pass and may be able to print their luggage tags and receipts.
TRUE or FALSE?
(a) True
(b) False
4.4.11 Safe Transportation of Checked Baggage

In an effort to minimize the risk of baggage loss and damage, the following
guidelines are recommended to the traveling public:
• Use good quality suitcases or bags to ensure safe carriage. Sufficiently
rigid luggage will not be damaged easily and will be resistant in loading and
handling conditions at airports.
• Write the family name and contact address at the destination on the
outside and inside of the baggage. Luggage occasionally does get lost,
and tags sometimes become detached. So, if a passenger's contact
information can be found inside a bag that is lost, it can be returned to the
owner much sooner.
• To help in identifying one's bag from others in baggage claim areas, use
stickers on it that will easily be recognized or wrap bags in belts/straps that
will help the baggage stand out from others.
• Lock the baggage or tie a strong strap around it, to keep it from opening up
and losing packed items.
• Remove all old destination tags before checking in for a next flight.

Items or documents of value such as passports, medical certificates, business

documents, money, jewelry or silverware should be carried only in hand
baggage.
Figure 4.4.20—Baggage tags and straps reduce the risk of losing a bag or its
contents
Key Learning Point

Well labeled and good quality bags reduce the risk of damage and loss of
checked baggage.
4.4.11.1 Dangerous Goods and Prohibited Items in

Checked and Unchecked Baggage
Every ticket purchase generates a passenger receipt with information defining
dangerous or offensive items that cannot be transported as baggage on an
aircraft. It is the ticketing agent's duty to deliver the passenger receipt to the
travel customer. The following types of materials cannot be transported in
checked or unchecked baggage as they present a danger such as explosion,
fire or corrosion:
• firearms and ammunition including guns and gunpowder (only hunting
weapons can be transported with advance airline clearance)
• flammable liquids such as rubbing alcohol, gasoline, paint, solvents,
bleach, drain cleaners, and adhesives
• flammable solids such as matches, lighters with lighter fuel, etc.
• flammable, non-flammable and poisonous compressed gases such as
camping gas, aerosol paint and propane
• explosive items such as fireworks
• corrosives such as acids, peroxide, lithium or wet batteries, thermometers
or blood pressure gauges with mercury

All sharp objects such as swords, scissors, box cutters, nail files, knives,
penknives, and razor blades can be carried in checked baggage only. These
items will be taken away at the airport security checkpoint if packed in
unchecked baggage.
Figure 4.4.21—Dangerous goods which should not be carried in passenger

baggage

Key Learning Point

The passenger receipt lists all items prohibited in baggage, including firearms,
flammable liquids, compressed gases and corrosives.
4.4.11.2 Electronic Goods in Checked and Unchecked

Baggage
Passengers should be advised not to pack electronic equipment in bags that
are to be checked-in. Certain electronic devices affect aircraft systems and
have been banned by Civil Aviation Authorities when an aircraft is in flight. The
following items may not be operated on board a flight:
• radio transmitters
• two-way paging devices
• some electronic toys
Mobile phones must always be turned off during take-off and landing. In flight,
they must be switched to “airplane” mode. Airplane mode disables the mobile
phone's transmitting device.
The following items may be used when the seat belt signs are off and their
wireless connection mode is turned off:
• video cameras
• hand-held computer games
• radio receivers
• laptop computers
Key Learning Point

Any mobile or electronic device with transmitting capability must be turned off
or switched to airline mode in-flight.
Apply Your Learning

Individual airlines often produce their own leaflets with information for
passengers about baggage allowances and items that can be transported. This
information is always available and up-to-date on the airline website. It is
helpful to build up a file of passenger baggage information for the preferred
airlines you sell. You will then be able to provide this information in printed or
electronic format to your travel customers, together with their travel documents.
Be careful to make sure that the information you provide is up-to-date.

Study Check 4.4.11
1. Which of the following statements is true?

(a) Electronic goods must be stored in checked baggage.
(b) Mobile phones must be turned off during take-off and landing.
(c) Sharp objects must be packed in unchecked baggage.
(d) Laptop computers are categorized as dangerous goods.
2. Which is a recommended practice to protect checked bags and their

contents?
(a) Write the owner's contact information inside the baggage only.
(b) Do not wrap a checked bag with a belt or strap.
(c) Remove any old airline baggage tags when checking in for a next
flight.
(d) Purchase soft quality bags or suitcases for the best protection.
3. Which item cannot be transported in checked baggage?

(a) scissors
(b) water
(c) dry batteries
(d) thermometers
4.4.12 Shipping Luggage as an Alternative

Multi-generational family trips or traveling in groups can involve a lot of
baggage. It is not just the cost of paying excess baggage fees that can take the
fun out of a trip but also the hassle of carrying them around.
To ease their luggage woes, consider using a door-to-door luggage shipping
service . Such companies offer a smarter way to travel by allowing the client to
use apps to make arrangements to travel light while keeping track of their bags.
Below is a comparison to the latest in luggage transport.
DUFL
As a travel valet service, DUFL is geared more for the business traveler and
people who regularly travel with sports gear. Clients can send clothes to the
DUFL storage and create a virtual closet to select the items to be taken on
each scheduled trip. Their clothes will be at their destination by the time they
arrive - professionally cleaned and packed in a DUFL suitcase.
Luggage Forward
With more than 10 years of experience in shipping clothes and sports gear like
skis door-to-door including cruise ships.
Clients pack their clothes in bags and then have Luggage Forward pick them
up.

Especially appealing for cruise lovers and those traveling internationally, its all-
inclusive pricing, including customs documentation, makes it easy to ship and
stick to a budget. Every bag is also guaranteed to arrive on time, or the client
gets a refund plus USD 500. To get the best prices, the client should ship about
a week or more in advance.
Send My Bag
Based in the United Kingdom, this luggage service has a pickup service
booked via SendMyBag.com that typcially takes place on weekdays between 9
AM and 6 PM. Travelers can choose from more than 5,000 drop-off locations.
Each bag is insured for $250 but clients can opt to purchase more insurance.
WeGoLook
This app has 20,000 nationwide “Lookers” (agents based in the U.S., Canada,
the United Kingdom and Australia) who can pick up luggage—or even
lost/forgotten items—and deliver it to a shipping service or a nearby location
like a hotel or residence. The company offers live assistance throughout the
process.
These are just a sampling of companies. Many others operate within the USA.
If the client opts to ship using these alternative luggage transport services or
even the airline's cargo services, advise them of potential pitfalls. A last minute
trip change could result in their luggage arriving in one place while they could
be in another.

4.4.13 Unit Summary

This Unit explained checked and carry-on baggage and the allowances for both
types. Other sources of baggage information include airline websites that list
specific baggage allowances for each airline and route. In an interline journey
involving two or more carriers, it is necessary determine which airline is the
Most Significant Carrier, i.e. the airline whose baggage allowance rules apply
to the checked baggage portion. In the case of journeys to/from Canada and
the USA, the MSC is the first Marketing Carrier. You also learned about special
types of baggage such as transporting sports equipment and pets. Knowing
how much baggage can be checked-in and carried on board can avoid
customer inconvenience at the airport counter or kiosk. There are also
recommended practicies in selecting and organizing luggage for check-in as
well as items which are prohibited or limited in checked and unchecked bags.
Optionally, for a passenger intending to carry a lot of baggage, instead of
checking them in, there are other alternatives such as luggage transport
services or airline cargo services available that can deliver the bags to the
passenger's destination.

4.5 Interpreting Flight Timetables
• List data available in flight schedules (Unit 4.5.1).

• Describe how to look up flight schedules (Unit 4.5.2).
• Explain how to find flight information on the Internet and interpret the
flight information (Unit 4.5.3).
Unit Learning • Identify the elements of a simple reservation made through a Global
Objectives Distribution System (GDS) (Unit 4.5.4).
By completing this Unit, • Communicate using the phonetic alphabet common to the travel industry
4.5.0 Unit Overview

Selling air transportation requires the ability to read flight timetables: inter-
preting details of flight departure and arrival times; checking classes of service,
aircraft type and number of stopovers.
Flight schedules or timetables are made available in a variety of formats. This
Unit compares timetables extracted from three major GDSs and airline
websites. You will learn to interpret the standard symbols, codes, and
information common to flight schedules displayed by Global Distribution
Systems and airline websites.
4.5.1 Flight Schedule Information Data

City-to-city flight schedules, whether reading from an online or a paper-based
source, provide the same information:
• the effective dates of flight service, with defined start and end dates
• days of operation
• departure and arrival times
• marketing airline and flight number
• aircraft type code
• cabin class
• non-stop/stop indicator
Key Learning Point

Consumers can find flight schedule information by searching airline, airport and
OTA websites. Travel professionals mostly rely on a GDS to plan travel for their
customers.

4.5.2 Steps Involved in Looking up Flight

Schedule Information
Let us look at several examples of flight schedule information as they appear
on airline websites and GDS system displays.
Step 1: Request the Departure City

Flight schedules indicate which flights are set to fly between two specified
cities, anywhere in the world.
Step 2: Request a Destination (“to”) City

If the desired destination is not listed, it means that there are neither direct
flights nor published connecting flights that operate between the city pair.
When there is no direct or indirect connecting service between a city pair, a
route must be constructed.
Step 3: Reading a City-to-City Schedule

Flight information is arranged in columns. Each timetable between a city pair is
split between direct flight and connecting flights. Direct flights between cities
are displayed first, in order of departure time. Scheduled connecting flights
appear in a separate section under direct flights.
Key Learning Point

Each GDS city-to-city schedule is laid out in the same way. So once you have
learned how to read the schedule information, you will be able to look up flight
information for any flight between any two cities, almost anywhere in the world.
Airline and airport websites will vary in their presentation format, but generally
provide the same details as can be found in the GDS.
4.5.3 More about Aircraft Types

Airline companies do not manufacture their own aircraft. Airlines purchase
aircraft from aircraft manufacturing companies. There are a few manufacturing
companies that specialize in building commercial aircraft. Boeing and Airbus
are the two major manufacturers of narrow and wide body aircraft. Bombardier
and Embraer are manufacturers of smaller regional jets. These four manufac-
turers supply aircraft for nearly all commercial airline fleets today.
Aircraft capacity (the number of passengers that each aircraft type can carry)
varies according to the aircraft type and seat configuration decided by the
operating airline. In general, larger aircraft carry more passengers. However,
the seat configuration on any size aircraft can further limit the number of
passengers that can be carried by any aircraft.
Aircraft type Average number of passenger Average flight

seats time
Regional jets 70 to 100 One to three hours
Narrow-body jets 130 to 250 Four to five hours
Wide-body jets 250 to 400+ Six hours and more
Table 4.5.1—Average seat capacity and hours flown
Unit 4.5: Interpreting Flight Timetables 363

The newest commercial aircraft model in the wide body category is the Airbus
A380. The Airbus A380 is designed with two decks (floors): a lower and an
upper deck. Each deck measures nearly 50 meters long.
While the A380 aircraft can transport over 800 passengers, airlines have not
configured their A380 aircraft with that many seats. Its average capacity ranges
from 407 to 644 seats. Passenger seats are located on both decks of the
aircraft. Two staircases link the lower and upper decks, one at the front of the
aircraft and another at the rear.
Source: http://commons.wikimedia.org/wiki/A380
Try to memorize the codes of some of the more common aircraft types.

Aircraft Manufacturers
Airbus Boeing
A320 737
narrow-body narrow-body
A340 747 (Jumbo

wide body jet) wide-body
A380-800 767 wide-body

wide-body
787
(Dreamliner)
wide-body
Embraer Bombardier
ERJ CRJ1
ER3 CRJ2
ER4
Table 4.5.2—Common aircraft manufacturers, types, and codes
Regional aircraft fly the shortest routes from one to three hours long and
generally transport passengers between small and major airport hubs. Re-
gional jet aircraft are often used for “commuter” transportation, flying passen-
gers back and forth daily between small or isolated airports that are unable to
support larger aircraft. Low-cost airlines typically operate regional jet aircraft
types.
The cabins of narrow-body aircraft generally have only one aisle between seat
rows and fly short-haul flights with three to five hours of flying time. Wide-body
aircraft cabins are largest and generally have two aisles separating seat rows,
flying international long-haul flights of six hours or more.

Wide body aircraft Narrow body aircraft
Figure 4.5.1—Cabin diagram for wide body and narrow body aircraft
Key Learning Point

A narrow-body airplane is configured with one aisle and flies shorter-haul
flights. A wide-body airplane is configured with two aisles and is used on long-
haul flights. Regional jet aircraft fly short routes and serve to transport
passengers from smaller airports to larger hub airports and vice versa.
Study Check 4.5.3
Choose the correct answer.
1. What type of aircraft does the aircraft type code “ERJ” represent?
(a) a narrow-body jet
(b) a wide-body jet
(c) a regional jet
(d) a long-body jet

2. What type of aircraft does the aircraft type code “A320” represent?
(a) a narrow-body jet
(b) a wide-body jet
(c) a regional jet
(d) a long-body jet
3. Which is true?
(a) The cabin of a wide-body aircraft is configured with one aisle.
(b) Lufthansa manufactures its own commercial aircraft.
(c) A commuter flight is a short flight operated on a regional jet.
(d) Embraer manufactures wide-body aircraft for long-haul flights.
4. A four-hour flight is considered to be a flight.

(a) short-haul
(b) regional
(c) long-haul
(d) near-haul
5. What is the aircraft code for the largest passenger capacity aircraft?
(a) CRJ2
(b) 737
(c) ER4
(d) A380
4.5.4 Online Web-based Timetables

Flight timetables and schedule information can also be found on the Internet.
This information can be retrieved from an airline, airport or OTA website.
The example in Figure 4.5.2 is taken from the Hamburg (Germany) airport
website. It illustrates connecting flights from Hamburg, Germany to Atlanta,
USA with no chosen travel date. It is possible to narrow a search by including a
travel date in the search request. The timetable is organized from the earliest to
latest departure time.

Figure 4.5.2—Timetable for flights from Hamburg to Atlanta on the Hamburg

Airport website www.airport.de/en/timetable.phtml
1 Dep Local departure time (24-hour clock)

2 Arr Local arrival time (24-hour clock)
3 Weekdays Days the flight operates
4 Flight Airline and flight number
5 Via Connecting airport code
6 Dur. Duration of the journey
7 Term. Terminal number at connecting airport
8 Type Aircraft type code
9 Valid Period during which the flight operates (day/month/year)
Table 4.5.3—Explanation of timetable fields for the Hamburg Airport website

A tip to help avoid making mistakes is to always give yourself time to read all
the information on the screen or printed page before recommending any
options to your customer. It is important to interpret every symbol or code in a
timetable display to avoid communicating the wrong information. Being able to
correctly read and explain flight schedule information will allow you to offer your
customer the right flight options. More importantly, when you combine flight
schedule knowledge with the various airfares, classes of service and routings
available, you will be able to match flight options with the customer's needs.
Figure 4.5.3 is a flight timetable from Delhi, India to Cochin, India. Flight
schedule information displayed on a website is continuously updated and
explains the services in plain language rather than codes and abbreviations.
They are normally printable on paper. Unlike the Hamburg Airport website, it is
necessary to enter a specific departure date before scheduled services are
displayed. The search results page displays basic information. Detailed
information about a flight is displayed by clicking on the “details” link.
Figure 4.5.3—Timetable for flights from New Delhi to Cochin, India on the Indira Ghandi International Airport
website

1 Departure airport code

2 Local departure time (24-hour clock)
3 Arrival airport code
4 Local arrival time (24-hour clock)
5 Number of connections
6 Duration of the journey
7 Airline
8 Flight number
9 Connecting airport
10 Cabin class
Table 4.5.4—Explanation of the timetable fields for the Indira Ghandi International
Airport website
In addition to airport websites, airline websites are another source of flight

timetables. Figure 4.5.4 displays a timetable on the Emirates Airline website.
Figure 4.5.4—Results of the timetable search on the Emirates Airline website for flights from Dubai, UAE to London,
UK www.emirates.com/ca/English/destinations_offers/timetables/FlightSchedule.aspx

The website visitor can display flight services by entering the city pairs,
departure date, and return date. Alternatively, flight schedules can be displayed
by week, as shown in Figure 4.5.4. The fields shown in the resulting search
are:
1 Flight number
2 Days the flight operates
3 Departure and arrival times (local time, 24-hour clock)
4 Departure and Arrival airports
5 Duration of the flight and the number of stops made
6 Cabin classes available on the flight
7 Aircraft type
Table 4.5.5—Explanation of the timetable fields for Emirates Airline
Now look at another online timetable in Figure 4.5.5. This Delta Airlines
schedule displays domestic flights between Atlanta (ATL) and Burlington (BTV)
in the USA. Although displayed differently, the same basic information is
provided.
Figure 4.5.5—Results of the timetable search on the Delta website for flights from
Atlanta to Burlington
www.delta.com/schedules/travel/reservations/flight_sched/index.jsp

1 Carrier and flight number

2 Local departure time (24-hour clock) and date
3 Departure airport code
4 Local arrival time (24-hour clock) and date
5 Arrival airport code
6 Type of equipment
7 First/Business Class in-flight services
8 Economy in-flight services
9 Stops
10 Total duration of journey
Table 4.5.6—Explanation of the timetable fields for Delta
This website allows you to search by time of day (e.g., early morning, early
afternoon, etc.) or by direct flight. More information about a flight is displayed
by clicking on the flight number.
More flights operate between two larger cities than smaller cities. If a customer
wishes to fly between any two countries' capital cities, then there will be many
flights and therefore lots of choice, whereas only a small number of flights may
operate between smaller cities that fewer people choose to visit. You should
always ensure that a passenger is aware of the route that the flight will take to
the destination. The term “direct” is often misunderstood. A “direct” flight is not
the same as a “non-stop flight”. The definition of a direct flight is one that has
the same flight number from origin to destination; a flight may stop once or
twice and still be a direct flight service.
All times indicated in online timetables are shown in local times, expressed in
four-digit numbers from 0001 to 2359 (2400 is not used), and sometimes
according to the “a.m./p.m.” system.
Key Learning Point

All flight departure and arrival times are expressed in the local time at each
airport.
Apply Your Learning

Look up your national airport website. Are there direct flights to London? If not,
where would you have to connect to fly to London?

Study Check 4.5.4
Refer to the image of Air New Zealand's webpage to answer questions 1 to 3.
1. How many flights operate on Sunday, June 30, from Auckland to Los
Angeles?
(a) 1
(b) 2
(c) 3
(d) 4
2. Departure and arrival times are displayed according to the 24-hour clock.
TRUE or FALSE?
(a) True
(b) False
3. How long is the flight from Auckland to Los Angeles?

(a) 12h55m
(b) 9h30m
(c) 12h15m
(d) 7h45m

Refer to Berlin Airport's website timetable for flights to Copenhagen to

answer questions 4 to 6. A dot represents a scheduled flight service for that
week day.
Departure Arrival Flight days Flugno.

Airport Time Airport Time Mo Tu We Th Fr Sa Su
Berlin Schönefeld 07:10 Copenhagen 08:20 • • • • • • U2 4553
Berlin Tegel 08:00 Copenhagen 09:00 • SK 1674
Berlin Tegel 12:35 Copenhagen 13:30 • • SK 1674
Berlin Schönefeld 15:10 Copenhagen 16:20 • • U2 4555
Berlin Schönefeld 16:05 Copenhagen 17:15 • U2 4555
Berlin Schönefeld 16:50 Copenhagen 17:50 • DY 3305
Berlin Schönefeld 19:55 Copenhagen 21:05 • • • • • U2 4557
Berlin Schönefeld 20:15 Copenhagen 21:25 • U2 4557
Berlin Tegel 21:10 Copenhagen 22:05 • • • SK 1678
Berlin Schönefeld 21:40 Copenhagen 22:40 • • • • • DY 3305
4. How many flight numbers operate daily from Berlin to Copenhagen?

(a) None
(b) 1
(c) 2
(d) 3
5. Which flight number operates only on Saturday?

(a) U2 4553
(b) SK 1674
(c) SK 1676
(d) DY 3305

6. What time does the last flight arrive in Copenhagen on Saturday?

(a) 16:20
(b) 22:40
(c) 21:25
(d) 14:45
4.5.5 Timetables Displayed in a GDS

Global Distribution Systems are used by most travel professionals to find flight
schedule information. The three major global GDSs which will be covered here
are Amadeus, Travelport Galileo, and Sabre.
Next, you will examine timetables for flights from London to Munich in
Amadeus, Travelport Galileo, and Sabre. Compare the three timetables to see
how they are similar and how they differ. Table 4.5.7 compares the fields of
data provided in each of the three GDS timetables. Although they display the
same key information, they do provide some different information as well.
1 2 3 4 5 6 7 8 9 10
TN19MAYLHRMUC
** AMADEUS TIMETABLE - TN ** MUC MUNICH.DE 19MAY 26MAY
1 LH2485 D LHR 1 MUC 2 645A 935A 0 31MAR 26OCT 319 1:50
2 LH2483 7 LHR 1 MUC 2 730A 1020A 0 31MAR 20OCT 320 1:50
3 LH2483 X7 LHR 1 MUC 2 730A 1020A 0 01APR 26OCT 321 1:50
4BA:QF3557 D LHR 5 MUC 1 755A 1045A 0 31MAR 25OCT 319 1:50
5BA:AA6542 D LHR 5 MUC 1 755A 1045A 0 31MAR 319 1:50
6BA:AA6036 D LHR 5 MUC 1 755A 1045A 0 19MAY 26MAY 319 1:50
7 BA 948 D LHR 5 MUC 1 755A 1045A 0 31MAR 17JUN 319 1:50
8 BA 950 X67 LHR 5 MUC 1 855A 1145A 0 01APR 25OCT 319 1:50
9BA:QF3565 X67 LHR 5 MUC 1 855A 1145A 0 01APR 25OCT 319 1:50
10BA:AA6038 X67 LHR 5 MUC 1 855A 1145A 0 20MAY 24MAY 319 1:50
11 LH2471 D LHR 1 MUC 2 930A 1220P 0 31MAR 26OCT 320 1:50
12 LH2473 6 LHR 1 MUC 2 1110A 200P 0 06APR 26OCT 320 1:50
Figure 4.5.6—London (LON) to Munich (MUC) flights displayed in Amadeus
timetable
Let's examine line 1 of Figure 4.5.6. This shows a Lufthansa flight (LH2482)
that departs daily (D) from London Heathrow Terminal 1 (LHR 1) to Munich
Airport Terminal 2 (MUC 2). The flight departs London at 6:45 a.m. (645A) and
lands in Munich at 9:35 a.m. (935A) with no stops (0). The flight operates from
31 March (31MAR) to 26 October (26OCT). The equipment used in an Airbus
aircraft (319) and the duration of the flight is 1 hour and 50 minutes (1:50). The
same flight displayed in Figures 4.5.7 and 4.5.8.

1 2 3 4 5 6 7
19MAY -15JUN MTWTFSS LONDON /MUNICH

1234567 LHR MUC 0645 0935 LH2485 319*C
......7 LHR MUC 0730 1020 LH2483 320*C
123456. LHR MUC 0730 1020 LH2483 321*C
1234567 LHR MUC 0755 1045 @QF3557 319*C
1234567 LHR MUC 0755 1045 @AA6036 319*C
1234567 LHR MUC 0755 1045 @AA6542 319*C
1234567 LHR MUC 0755 1045 BA 948 319*C
12345.. LHR MUC 0855 1145 @QF3565 319*C
12345.. LHR MUC 0855 1145 BA 950 319*C
12345.. LHR MUC 0855 1145 @AA6038 319*C
1234567 LHR MUC 0930 1220 LH2471 320*C
. . . . . . 6. LHR MUC 1110 1400 LH2473 320*C
Figure 4.5.7—London (LON) to Munich (MUC) flights displayed in Travelport
Galileo timetable
1 2 3 4 5 6 7 8 9 10 11
S19MAYLHRMUC
19MAY SUN LHR/Z.1 MUC/.1
1LH 2485 J C D R I Y *LHRMUC 645A 935A 319 M 0 DC /E
B H K M L V N Q
2LH 2483 J C D R I Y *LHRMUC 730A 1020A 320 M 0 DC /E
B H K M L V N Q
3BA/QF 3557 J C D Z P Y *LHRMUC 755A 1045A 319 S 0 DC /E
B M U H G Q V W
4BA/AA 6038 J C D Z P Y *LHRMUC 755A 1045A 319 S 0 DC /E
B M U H G Q V W
INTL ONLINE CONNEX/STPVR TFC ONLY
5BA 948 J C D Z P Y *LHRMUC 755A 1045A 319 S 0 DC /E
B M U H G Q V W
6BA 950 J C D Z P Y *LHRMUC 855A 1145A 319 0 DC /E
B M U H G Q V W
7BA/QF 3565 J C D Z P Y *LHRMUC 855A 1145A 319 0 DC /E
B M U H G Q V W
8LH 2471 J C D R I Y *LHRMUC 930A 1220P 320 0 DC /E
B H K M L V N Q
9LH 2473 J C D R I Y *LHRMUC 1110A 200P 320 M 0 DC /E
B H K M L V N Q
* - FOR ADDITIONAL CLASSES ENTER S*C
Figure 4.5.8—London (LON) to Munich (MUC) flights displayed in Sabre
timetable

Field Amadeus Travelport Galileo Sabre

Figure 4.5.6 Figure 4.5.7 Figure 4.5.8
Line number 1 Not displayed 1
Operating carrier 2 5 2
Flight number 3 5 3
Booking classes Not displayed Not displayed 4
Point of departure and arrival 5 3 5
Time of departure and arrival 6 4 6
Aircraft type 9 6 7
Meal type served Not displayed Not displayed 8
Number of stops 7 Not displayed 9
Type or level of connection or link with the airline Not displayed 7 10
Indication if the flight allows e-ticketing Not displayed Not displayed 11
Days of flight operation 4 2 Not displayed
Period of operation 8 1 Not displayed
Flying time 10 Not displayed Not displayed
Table 4.5.7—Comparison of the field values for Amadeus, Travelport Galileo and Sabre
GDSs
GDSs tend to display days of operation with numbers:

1 = Monday
2 = Tuesday
3 = Wednesday
4 = Thursday
5 = Friday
6 = Saturday
7 = Sunday
Other codes that appear for days of operation are:
D or Dly = Daily (every day)
X = Except
If Figure 4.5.7, the output from Travelport Galileo, shows that the 6:45 a.m.
flight to Munich operates every day (1234567) while the 8:55 a.m. flight only
operates weekdays (12345..).
Amadeus and Travelport Galileo do not display any cabin classes in their
timetables. However, Sabre timetables display booking class codes. Booking
class codes are linked to airfares. They represent seats in a cabin and a fare.
There can be several booking classes within a cabin class because an airline
may sell different fares to travel in the same cabin. Different airlines use
different letters to represent booking classes. Generally the letter F represents
first class, which is the most expensive class of seat available. However in
Figure 4.5.8, “J” would be the most expensive class of seat for travel on flight
LH 2485 because it is listed first, and “Q” would be the least expensive
economy class seat because it appears last. “J” itself is not always the most
expensive seat offered on a flight. The position of the booking class code in a
string of booking codes displayed for a scheduled flight indicates the most to
least expensive class of service. Thus the first letter in a series is the most
expensive booking class on a flight.

Key Learning Point

The display format of flight timetables may differ between GDSs, however the
information displayed is the same.
Apply Your Learning

What GDS does your travel agency use? Find out why they chose that system.
Study Check 4.5.5
1. Timetables displayed in different GDSs are identical. TRUE or FALSE?

(a) True
(b) False
2. Flight timetables in GDSs do not display .

(a) airport codes
(b) cabin classes
(c) days of operation
(d) aircraft types
3. In Figure 4.5.7, how many flights depart on a Saturday?

(a) 12
(b) 8
(c) 5
(d) 4
4. In Figure 4.5.6, which flight has equipment code 321?

(a) LH2483 on Mondays through Saturdays
(b) BA948 daily
(c) AA6038 on weekdays
(d) LH2473 on Saturdays
5. In Figure 4.5.8, which airline has a booking class N?

(a) BA
(b) QF
(c) LH

4.5.6 The Phonetic Alphabet

Airline personnel and travel agents use the phonetic alphabet to communicate
accurately. Names in reservations and on travel documents must be spelled
correctly. Reservation codes can be easily misunderstood, especially when
communicating by telephone. Spelling names and reservation codes by using
the phonetic alphabet reduces the risk of error. Various internationally
recognized phonetic alphabets exist; the following is just one example:
A ALPHA N NOVEMBER
B BRAVO O OSCAR
C CHARLIE P PAPA
D DELTA Q QUEBEC
E ECHO R ROMEO
F FOXTROT S SIERRA
G GOLF T TANGO
H HOTEL U UNIFORM
I INDIA V VICTOR
J JULIET W WHISKEY
K KILO X X-RAY
L LIMA Y YANKEE
M MIKE Z ZULU
Table 4.5.8—Sample Phonetic Alphabet
Study Check 4.5.6
1. Which of the following airport codes is represented by Lima Hotel Romeo?

(a) LHR
(b) LGW
(c) STN
(d) LON
2. How would you spell the name Marie using the phonetic alphabet?
(a) Mike Alpha Romeo Igloo Eggs
(b) Mambo Alpha Rock India Echo
(c) Mike Alpha Romeo India Echo
(d) Mambo Amy Rock Igloo Echo
3. Which code is described as Alpha, Zulu, Lima, Hotel, Tango, Yankee?

(a) QTIFBZ
(b) HJUTZE
(c) AZLHTY
(d) MIKEAZL

Apply Your Learning

Practice using the phonetic alphabet by spelling your first and family name.
Travel professionals use this method of communicating when quoting reser-
vation codes.
4.5.7 Unit Summary

In this unit you learned that there are two main sources of flight schedule
information: the Internet, and Global Distribution Systems (GDS). Most travel
professionals use the GDSs to access information about flight schedules. You
learned to recognize airport and aircraft information, and to interpret flight
timetable data. You understand that online timetables are less dependent on
codes in defining flight schedules. You also learned how to interpret a flight
timetable produced in a GDS. Finally, you learned why and how the travel
industry communicates names and reference codes by using the phonetic
alphabet.

4.6 Industry Codes, Terminology, and

Definitions
• Define and use common airline industry terms (Unit 4.6.1).

• Identify 2-character airline codes (Unit 4.6.2).
• Identify the top 25 airlines based on IATA World Air Transport Statistics
(Unit 4.6.2).
Unit Learning • Describe how GDSs transmit reservation information to airlines in coded
Objectives format (Unit 4.6.3).
By completing this Unit, • Interpret the message codes used for SSR and OSI fields in PNR entries
• Interpret commonly used airline industry abbreviations (Unit 4.6.5).
4.6.0 Unit Overview

Like other industries, the air transport industry has its own language with
particular terms and codes. In this unit, you will learn the specialized
terminology and abbreviations used by those who work within the airline
industry. You will also be introduced to airline industry codes. Communicating
with a set of standard codes speeds up the communication process and
ensures that communication is as clear as possible. Code must be interpreted
the same way across the industry.
There are types of codes for all services and facilities. Travel agents must be
proficient at using these codes to make reservations, to supply important
information to airlines and to request services for their customers. To give you
an idea of how widely codes are used within the industry, you should know that
there are codes for individual airlines, cities, airports, aircraft types, countries,
and currencies, as well as, for requesting special pre-flight and on-board
passenger services, equipment, meals and more.
4.6.1 Industry Terminology and Definitions

When working in the air transport industry, it is important to become familiar
with its specialized terminology and translate the industry terms to simple
language for the benefit of passenger customers. Using these terms correctly
is important to airline representatives and other industry professionals.
Table 4.6.1 lists the most commonly used terms and their definitions. Although
some of these terms have been defined earlier in the module, it is important to
be well versed with definitions of all of these terms. You must memorize the
terms and their definitions in this table.
Unit 4.6: Industry Codes, Terminology, and Definitions 381

Term Definition
Availability Term used to represent the number of seats remaining for purchase
Booking This is a selection of flights reserved with an airline, for a passenger's intended journey.
Equivalent terms include reservation and PNR (a computer record)
Booking form A form completed by a travel agent when a booking is create that records details of the
customer's name, contact address and telephone number, itinerary, payment details and
booking conditions
Baggage Personal items carried by a traveler, such as clothes, camera equipment and other articles
related to the journey
Baggage Refers to the amount of luggage each passenger is permitted to transport free of charge
allowance
Baggage tag 1. An ID tag with the owner's name and address that is attached to any piece of luggage as a
means of owner identification
2. A tag issued at airport check-in, bearing an airline issued tag number that is used to identify
checked baggage
Baggage An area in an airport where arriving passengers can collect their baggage
claim area
Billing and A reporting system for collecting ticket payments from agents and distributing the funds to the
Settlement appropriate airlines
Plan (BSP)
Boarding pass This is normally issued at check-in, in exchange for passenger's electronic ticket coupon. A
boarding pass or card that indicates the class and seat number allocated to a passenger.
Check-in Formalities undertaken by a passenger at an airport before departure, including the checking of
passenger documents, allocation of seats and issue of boarding pass and baggage tags
Cancellation A monetary penalty levied by airlines when a passenger fails to use a reservation
fee
Carrier A passenger or cargo airline
Charter This means to contract for the complete and exclusive use of an aircraft. The term often refers
(flights) to flights operated by tour companies to resort or popular holiday destinations during high
season.
Child A passenger between 2 and 12 years of age
Commission Amount of money earned from the sale of flights and other services; commission is usually a
percentage of the sale price
Code share This refers to a single flight on which space is shared and sold by two or more airlines. A ticket
may be issued under the code of either airline and the flight may have two or more flight
numbers
Computer res- This is a computerized system used to access information about schedules, availability, fares
ervations sys- and other travel formalities. A CRS is a means of communication between agents and airlines,
tem (CRS) through which reservations can be made and tickets and itineraries issued. Most CRS
information may be accessed through a GDS.
Conditions Conditions refer to a booking and the rules of contract between, e.g., an agent and his
customer. This relates to cancellation/administration charges, date change conditions, pass-
port, visa and health requirements–in addition, any other general terms and conditions
established by travel agencies or carriers.
Configuration This refers to the arrangement of seats on an aircraft.
Confirmed A definite booking, where seats are available and a reservation has been created under a
reservation passenger's name
Connecting A flight that requires the passenger to change aircraft as part of the itinerary and delivers a
flight passenger to another aircraft in another city
Customs The control and regulation of country imports and exports
Destination The place to which a passenger is going or stopping

Term Definition
Direct flight This is a flight which normally does not require passengers to change aircraft between the
starting point and destination. A direct flight operates under a single flight number (see
definition of flight number below). It may set down at an airport en route between the flight's
origin and final destination cities. At this stage, passengers who have not yet arrived at their
final destination will remain on board or leave the aircraft temporarily to wait in the airport transit
lounge The purpose of an intermediate stop or set down is to allow some passengers to
disembark and/or to pick up new passengers.
Downgrade This is to be moved to a lower class of service. It sometimes happens when a smaller aircraft is
used on a route normally served by a larger one, or in an overbooking situation. For example: a
business-class passenger may be downgraded to travel in the economy cabin because all
seats in business class have been assigned by the time he arrives to check-in at the airport.
Electronic This is a non-paper ticket allowing the passenger to check in with a confirmation code and
Ticket personal identification. A paper receipt may still be issued, but is not required for travel.
(E-Ticket)
Endorsement Authority for travel documents issued by one airline to be used for travel on another airline
Estimated ETA–time at which an aircraft is expected to arrive at its destination
time of arrival/
ETD–time at which an aircraft is expected to depart
departure
(ETA/ETD)
Excess This is a passenger's baggage presented at check-in that is in excess of the free allowance
baggage because it is oversize or overweight. A charge is payable for excess baggage.
Flight coupon The part of a ticket that displays the details of a reserved flight on which the named passenger
is entitled to travel
Flight number This is an alphanumeric code, made up of a 2-character airline code plus 1–4 numbers,
assigned to a particular route, e.g., LX352 refers to a Swiss International Airlines flight.
Gateway The international arrival/departure point in an airline's home country
GDS A GDS is a computerized system used to access information about schedules, availability,
fares, and other travel formalities, and to book airline seats, hotel rooms, and rental cars.
These systems are global in nature and are non-biased, representing all travel suppliers
equally.
Go-show A passenger who wishes to check-in for a flight without a reservation
Infant Passengers who have not yet reached their second (2nd) birthday
International This is the imaginary line at approximately 180° longitude in the Pacific ocean where, by
dateline international agreement, the earth's day begins. (See Geography in Travel Planning 1 Module
for more information on time zones.)
Issuing carrier This is the airline whose three-digit airline ticket designator is part of the ticket
number. For example, ticket number 074 4435 123 098 belongs to issuing airline KLM Royal
Dutch Airlines because the designator code “074” is unique to KLM.
Itinerary This is a description of a customer's travel plans according to all flights booked. Itineraries are
part of a reservation record in a booking system and also printed in the passenger itinerary
receipt coupon.
Here is a list of the information included in an itinerary:
• booked carrier name and flight numbers
• times of operation
• airport terminal details
• check-in times
• reconfirmation information
• details of any other travel formalities relevant to the passenger's journey

Term Definition
Minimum con- This refers to the shortest time interval necessary for transferring from one flight to another at
necting time an airport. Each airport publishes MCTs on their website. Reservation systems (GDS) are
(MCT) programmed with all MCTs and flight availability displays respect the MCT when constructing
an indirect itinerary.
Neutral unit of A unit of common international value, such as a currency, established by IATA to assess
construction international air fares and charges
(NUC)
No-show A passenger holding a flight reservation who fails to use and cancel it prior to the flight
departure
On request Defines the status of a flight seat request as “not yet confirmed”
Open ticket A ticket which has been issued for a set journey but for which a specific date has yet to be
booked and entered
Origin The starting point at which a journey commences
Overbooking A situation in which more seats have been sold than are available seats on an aircraft
Passenger A traveler on public transport
Passenger The portion of a passenger's ticket and baggage check issued by or on behalf of an airline,
coupon or which states the airline's contractual obligations to the passenger (contract of carriage).
receipt
Passenger A PNR is a unique computerized file reflecting a reservation for flights, hotel rooms, and car
name record rentals. A PNR is created by the booking agent and is used to communicate passenger details
(PNR) and intended flight itinerary as well as other requests and information relevant to the airline
(also referred to as a booking).
Reconfirma- This is the process of making sure that the originally booked flight number and departure time
tion have not changed. The process involves visiting the airline's website to check the flight number
and departure time. A passenger may also telephone the airline to verify the reservation and
departure time.
Refund Reimbursement to the purchaser of all, or a portion of a fare for an unused service
Revalidation The procedure to update an electronic ticket with the details of new flights reserved, replacing
originally reserved flights
Season This is the period during which a ticket is valid for travel, as determined by the fare that is paid.
High season applies to busy times of the year when lots of people choose to travel (e.g., school
holidays) causing ticket prices to be at their highest. Low season refers to periods when there
are fewer passengers traveling, when ticket prices for the same journey generally cost less.
Stand-by The term refers to a traveler who has no reservation but is prepared to travel on a fully booked
flight by waiting to see if a seat becomes available (no-show) at the last minute.
Stopover Deliberate interruption of a journey, planned by the passenger, at a place between the origin
and destination
Terminal The airport area where the formalities/procedures for departing and arriving passengers take
place
Transfer The process of transporting passengers from one airport terminal to another, or perhaps from
an airport terminal to a local hotel (usually by bus)
Transit pass- These are passengers who temporarily wait at an airport between their departure and
enger destination airports. They will be required to remain in a designated area of an airport called a
transit lounge. Passengers normally remain in transit for up to 24 hours. However, most
connecting flights depart within a couple of hours. On longer transits, passengers may be
transported to an airport hotel.
Unaccompan- This refers to a child up to the age of 12 who travels alone, not accompanied by an adult.
ied minor Airlines require travel agents to inform them of any unaccompanied minors reserved on flights
(UM) so that suitable arrangements to look after them in transit and on board can be made.
Occasionally, an airline may refuse to carry unaccompanied children of any age.
Waitlist Passengers awaiting confirmation of a requested flight(s) that is/are currently fully booked are
normally listed for their preferred flights and confirmed on a second choice in the event that the
airline cannot confirm them from a waitlist.
Table 4.6.1—Common terms and definitions used in air transport

Apply Your Learning

It is important to learn the correct terms and to be able to use them when
communicating with other professionals. But when talking with customers
these terms should be avoided and should be interpreted by the agent for the
customer's benefit. Always remember that an important part of a travel
professional's role is explaining to customers the main features and benefits of
recommended travel products. Try to use familiar, simple language when
explaining travel formalities, procedures and products. Avoid using industry
and technical terms, like those outlined in this section, that passengers may not
understand.
Here are some examples:
• Instead of saying “unaccompanied minor”, say “a child traveling alone.”
• Instead of saying “PNR”, say “reservation.”
• Instead of saying “special service request”, say “meal request.”
• Instead of saying “transfer/transit” say “changing plane/aircraft.”
Create your own list of 10 industry terms and how you can say them in simple
language so a passenger would understand.
Study Check 4.6.1
Match each term with a definition.

Term Answer Definition
1. Stopover (a) To be moved to a seat in a lower class of
service
2. Infant (b) Passengers awaiting confirmation of a
requested flight(s) that is/are currently
fully booked
3. Downgrade (c) The deliberate interruption of a journey,
planned by the passenger, at a place
between the origin and destination
4. Waitlist (d) A penalty levied by airlines when a pass-
enger fails to use a reservation
5. Cancellation (e) Passengers who have not yet reached
Fee their second (2nd) birthday
4.6.2 2-Character Airline Codes

When you sell air transportation, you will work with airline codes as well as
codes for cities and airports. The airline industry is highly dependent on the use
of codes.
This section lists airlines carrying the highest number of international passen-
gers. You will learn their names, 2-character carrier codes, where their
headquarters are, and what alliance (if any) they belong to (Table 4.6.2). A
comprehensive list of the world's airlines and their codes can be found in the
IATA Passenger Air Tariff (PAT) - General Rules section.

Airline name Airline code Headquarter Country Alliance

Ryanair FR Ireland -
easyJet U2 United Kingdom -
Emirates EK United Arab Emirates -
Lufthansa LH Germany STAR ALLIANCE
British Airways BA United Kingdom oneworld
Turkish Airlines TK Turkey STAR ALLIANCE
Air France AF France SKY TEAM
Qatar Airways QR Qatar oneworld
KLM KL Netherlands SKY TEAM
United Airlines UA United States STAR ALLIANCE
American Airlines AA United States oneworld
Delta Airlines DL United States SKY TEAM
Cathay Pacific Airways CX Hong Kong SAR oneworld
Wizzair W6 Hungary -
Norwegian DY Norway -
Singapore Airlines SQ Singapore STAR ALLIANCE
Korean Air KE South Korea SKY TEAM
Etihad Airways EY United Arab Emirates -
Qantas Airways QF Australia oneworld
Vueling VY Spain oneworld
Scandinavian Airlines SK Sweden STAR ALLIANCE
SWISS LX Switzerland STAR ALLIANCE
LATAM Airlines Group LA Chile oneworld
Aeroflot Russian Airlines SU Russian Federation SKY TEAM
Thai Airways International TG Thailand STAR ALLIANCE
Table 4.6.2—Major airlines of the world with international routes
Source: IATA Business Intelligence Services, WATS
For many airlines, airline codes are a logical abbreviation of the airline name.
For example, AF is the code for Air France and LA for LAN Airlines. Other
codes, however, are not so easily decoded, for instance, AY for Finnair and KA
for Dragonair are airline codes that do not provide immediate clues. SU is the
code for Aeroflot and is also a logical abbreviation for “Soviet Union”, the old
name for the Russian Republic which is the airline's national country. Some
2-character airline codes are alphanumeric, e.g., 9U for Air Moldova, or G9 for
Air Arabia. Figure 4.6.1 shows where you will see the 2-character airline code
in an Amadeus GDS reservation (PNR).

--- RLR ---

RP/SFOVS2020/SFOVS2020 RM/GS 16APR /1726Z 2LCAI8
1 AZCAR/ESTEBAN MR 2. AZCAR/MARY MRS

3 BA 286 F 20MAY 1 SFOLHR HK2 1830 1240+1 *1A/E*
4 BA 287 F 27JUL 6 LHRSFO HK2 1330 1625 *1A/E*
5 AP SFO 415 255 5539-H
6 TK TL 30APR/SFOVS2020
7 OSI BA VIP TOP ADVISER/P1
8 OSI BA REQUEST FOR EXTRA CHAMPAGNE
9 AM MR ESTEBAN AZCAR. 200 UNION ST. SF CA 94112
Figure 4.6.1—Amadeus GDS reservation displaying the carrier code for both
flight segments booked as BA–British Airways
Key Learning Point

A 2-character code represents an airline and a 3-letter code represents a city
or airport.
Apply Your Learning

List the names of national airlines for your country and their 2-character airline
codes.
Study Check 4.6.2
Refer to Table 4.6.2 to answer questions 1 to 5.
1. Lufthansa's 2-character airline code is LH. TRUE or FALSE?

(a) True
(b) False
2. 9X is the code for Air Canada. TRUE or FALSE?

(a) True
(b) False
3. SW is the code for SAS Scandinavian Airlines. TRUE or FALSE?

(a) True
(b) False
4. Which airline does code EK represent?

(a) KLM Royal Dutch Airlines
(b) Emirates
(c) AirTran Airways
(d) easyJet

5. Which is the airline code for SAS Scandinavian Airlines?

(a) SQ
(b) MS
(c) SK
(d) US
6. Which airline company's flights are booked in the PNR below?
Q8 01MN/DN PEROU Y2VSDN AG I1213975 21APR

1. 3BROUGHTON/ COLINMR/ HEATHERMRS/MARKMSTR
1. QF 642 Y 27MAY PERSYD HK3 1110 1715 O* MO
2. QF 503 Y 29MAY SYDCBR HK3 0820 0905 O* WE
3. QF 570 Y 01JUN CBRSYD HK3 0745 0835 O* SA
4. QF 23 Y 03JUN SYDPER HK3 0915 1200 O* MO
** VENDOR LOCATOR DATA EXISTS ** >*VL*
** SERVICE INFORMATION EXISTS ** >*SI*
FONE-PERT*09 747 7312
2. PERH*09 654 9889
** OTHER SUPPLEMENTARY INFORMATION **

CARRIER RELATED
1. QF 1 CHD AGE 4 BROUGHTON/MARKMSTR
(a) Qantas Airways
(b) Air France
(c) easyJet
(d) JetBlue
7. Which airline company is booked in the last flight segment in the PNR
below?
1.1GRIFFIN/SCOTT MR 2.1HADLEY/JASMINE MS
1 AA 64F 19MAY 7 JFKZRH HK2 1815 0805 20MAY 1 /DCAA*NBKMKL /E
2 LX 2144C 23MAY 4 ZRHGVA HK2 1745 1830 /DCLX*666543 /E
3 LX 2107C 27MAY 1 GVAZRH HK2 1910 2000 /DCLX*666543 /E
4 AA 65F 31MAY 5 ZRHJFK HK2 1115 1405 /DCAA*NBKMKL /E
TKT/TIME LIMIT
1. TAW24APR/
PHONES
1. JFK212-924-9849-A
2. JFK212-773-6372-H HADLEY
3. JFK212-849-8844-B HADLEY
AA FACTS Y
1. OSI PSGR IS AN AMERICAN DIPLOMAT
GENERAL FACTS
1. OSI LX PSGR IS AN AMERICAN DIPLOMAT
RECEIVED FROM - MS HADLEY
Y2VS.Y2VS*ARF 0200/22APR NBKMKL

(a) Air China

(b) AirTran Airways
(c) American Airlines
(d) United Airlines
Answer TRUE or FALSE to questions 8 to 10.
8. Airline codes assigned by IATA are always composed of two letters. TRUE
or FALSE?
(a) True
(b) False
9. City/airport codes are always composed of three letters. TRUE or FALSE?

(a) True
(b) False
10. Flight numbers are always composed of four characters. TRUE or FALSE?
(a) True
(b) False
4.6.3 Transmitting Reservation Information to

Airlines
Travel agents use systems called GDS's (Global Distribution Systems) to
research airline product information such as flight schedules and seat
availability. Reservations are made directly in the GDS and the reservation
records are known as Passenger Name Records (PNR). PNRs are also
sometimes referred to as booking files (BF). A typical GDS PNR is composed
of standard fields of information including:
PNR field Information displayed
Name field Passenger names
Itinerary field Flights reserved
Fone (phone) Telephone contact information for the travel agent and
field passengers
Supplementary Requests for preflight or in-flight products and services for
field the passenger
Advice about the passenger(s) that is helpful to the airline
Ticketing field The ticket numbers issued per passengers with airfare
information
Remarks field Information for the booking agent's use or reference
Reservation information is transmitted by the GDS to each airline booked
instantly in real-time. This section explains the codes used to request special
pre-flight and on-board services. In addition to flight information and bookings,
travel agents also use GDSs to look up information for accommodation, rail,
and car rental products.
There are several international companies that provide GDS systems to travel
agent subscribers. Some of the main companies are Sabre, Travelport Galileo,
and Amadeus. You will learn the functionalities in these systems. These

companies work closely with many airlines whose flight information can be
accessed by using the GDS.
All PNR information is organized and grouped into standard PNR fields that
can be easily interpreted by the receiving airline. When travel agents create a
PNR, they must add the names of all passengers who intend to travel. The
number of names will match the number of seats booked.
For example, when 3 seats are booked on a flight between SFO (San
Francisco) and JFK (New York), three passenger names must also be added in
the name field of the PNR. The number of names that appear in a PNR must
match the number of seats booked in all instances except for one, i.e., when
infants travel accompanied by an adult. Infants (between the ages of 0 and 2)
usually do not need a booked seat. Infants may pay less, or sometimes travel
free of charge, if they sit with an accompanying adult. The infant's name is
however always added to the adult's PNR, in order to inform the airline that the
infant is traveling. A ticket must be issued in the infant's name as well. In other
words, if two (2) adults and one (1) infant travel together from SFO to JFK, the
agent reserves two seats but shows three names (a special entry is used to
identify an infant name) in the PNR.
Figure 4.6.2 displays a sample PNR for 2 adults traveling with an infant. The
first passenger name field (labeled 1 and 2) holds the names of two adult
passengers while the second name field (labeled 3) indicates the infant (note
the “I” before the infant's name and the “MSTR” after the name). The booked
flight segments (labeled 4) show that two seats are reserved on each flight.
1 2 3
1.2CHIU/ERIC 2.I/1CHIU/SAMUEL MSTR
MR/GILLIAN MRS
1 UA 870Y 17MAY 5 SFOJFK HK2 1255 2146 /DCUA*RKS320 /E
2 AA 15Y 04JUN 2 JFKSFO HK2 1045 1355 /DCAA*RPNFFS /E
TKT/TIME LIMIT 4
1. TAW24APR/
PHONES
1. SFO415-443-8022-A
2. SFO604-453-2420-H
AA FACTS
1. OSI AA INF
GENERAL FACTS
1. SSR INFT UA NN1 SFOJFKO8 7OY1 7MAY/CHIU/SAMUEL MSTR/ 23JAN
REMARKS Y
Figure 4.6.2—Sample PNR from the Sabre GDS
It is important to note the following reservation status codes which are used in
these course and subsequently represented in the ticket as “OK”:
• HK means holding confirmed seat.
• DK also Direct Link confirmed which also means a confirmed seat as
bilaterally agreed between the carriers.
• RR means reconfirmed.
If the seat is waitlisted, the code HL (holding waitlist) is indicated in the PNR.
An electronic ticket is usually not issued until the PNR status is confirmed.

Key Learning Point

Every passenger must hold a ticket to travel by air, including infants. Although
an infant does not occupy a seat on board, the reservation must include the
infant's name so that a ticket can be issued.
Study Check 4.6.3
Refer to the PNR below to answer questions 1 to 5.
1.1GRIFFIN/SCOTT MR 2.1HADIEY/JASMINE MS
2 LX21 44C 23MAY 4 ZRHGVA HK2 1745 1830 /DCLX* 666543 /E
3 LX2107C 27MAY 1 GVAZRH HK2 1910 2000 /DCLX* 666543 /E
4 AA 65F 31MAY 5 ZRHCFK HK2 1115 1405 /DCAA* NBKMKL /E
TKT/TIME LIMIT
1. TAW24APR/
PHONES
1. JFK212-924-9849-A
2. JFK212-7 73-6372-H HADLEY
3. JFK212-849-8844-B HADLEY
AA FACTS Y
GENERAL FACTS
Y2VS.Y2VS*ARF 0200/22APR NBKMKL
1. How many passengers are booked in this PNR?
(a) 1
(b) 2
(c) 3
(d) 4
2. There are an equal number of seats and names booked. TRUE or FALSE?
(a) True
(b) False
3. The passengers booked for this journey are Mr. Scott Griffin and
Ms. Jasmine Hadley. TRUE or FALSE?
(a) True
(b) False

4. How many airlines are reserved?

(a) 1
(b) 2
(c) 3
(d) 4
5. How many flights are reserved?

(a) 1
(b) 2
(c) 3
(d) 4
4.6.4 The Service Information Field

The service information field of a reservation (PNR) is used to transmit two
types of messages to booked airlines:
• Special Service Request (SSR)
An SSR is a request for a special service or product to be provided to the
customer by the airlines booked, such as a special meal or wheelchair
service. Travel agents can request special services that are to be provided
for their customers while on board a flight. Perhaps a passenger is diabetic
and requires a diabetic meal. If so, the booking agent should be told so that
a request can be sent to carriers booked. Most carriers, given adequate
time, will do everything possible to provide a more enjoyable flight. Such
special service requests are part of a PNR and are transmitted to booked
airlines when the reservation is completed. In order to be sure that this
request is passed on to the relevant airline, the agent must add a special
service request to the passenger's electronic reservation or PNR in the
form of an SSR entry. The insertion of a special service request to a
passenger PNR requires a four-letter code representing the service
required.
• Other Service Information (OSI)
An advice about the passengers to the airlines booked, such as the ages of
child passengers or that a passenger is blind. In order to be sure that this
information is passed on to the relevant airline, the agent must add an
Other Service Information (OSI) entry to the passenger's electronic
reservation or PNR. The insertion of an OSI entry to a passenger PNR
requires a three-letter or four-letter code representing the service required.
Let's consider an example of how the service information field of a reservation
(PNR) is used. A couple books a flight from Singapore to New York to attend
their son's wedding. Both passengers are vegetarians and request that the
airline serves vegetarian meals for their long flight via an SSR entry.
Furthermore, the passengers are first time travelers by air and they are
unfamiliar with boarding, connection, and deplaning procedures. This could be
helpful information for the booked airlines to know. The information that they
are first time travelers is transmitted to the airlines in an OSI entry.

Key Learning Point

“Service Information” is a PNR field that makes it possible for travel agents to
transmit messages from passengers to the airlines booked. The type of
information includes passenger-related requests and information such as the
ages of child passengers, special meal requests, an indication that a
passenger is blind, or an indication that a passenger needs a wheelchair to
board a plane.
Two Types of Automated Messages

To clarify, there are two different types of messages. These are described as
either:
1) Special Service Requests (SSR)

SSRs are messages using a standard 4-letter code to send a request for a
specific service or facility. This type of message includes requests such as a
vegetarian meal (VGML), a wheelchair (WCHS), or a message advising that a
child is traveling unaccompanied by an adult (UMNR). SSR messages require
confirmation and preparation by the airline. These services can be requested
from any airline but are never guaranteed to the passenger unless a
confirmation reply is received from the airline(s) booked in the itinerary. When
an SSR entry with a request is added to a PNR, the request has a “request”
status, designated by the status code “NN”. If the airline receiving the request
accepts to provide the service requested, the SSR entry status will change
from “request” status (NN) to “confirmed” status (HK).
Figure 4.6.3 illustrates an example of an SSR entry indicating that the
passenger has requested a special meal, in this case a vegetarian meal, for
both flight segments of the journey (numbers 2 and 3). Table 4.6.3 provides a
list of commonly used codes and their meanings.
--- RLR ---

RP/SFOVS2020/SFOVS2020 RJ/GS 21APR /0343Z R89E30
1. HOFBURG/OSKAR MR
2 OS 527 Y 27MAY 1 VIEORD HK1 1125 1545 *1A/E*
3 OS 528 Y 02JUN 7 ORDVIE HK1 1840 1255+1 *1A/E*
4 AP VIE 01 3945110-VIENNA TRAVEL-A
5 AP VIE 01 3551243-H
6 TK TL26APR/SFOVS2020
1 7 SSR VGML OS NN1/S2
2 8 SSR VGML OS NN1/S3
Figure 4.6.3—SSR entry in a PNR booked in the Amadeus GDS on request (NN)
status
Transmitting Passenger Contact Information

Per resolution 830d, the airline industry requires all travel agencies to add
passenger contact information (mobile phone number and email address) to
PNRs with booked flights. The contact information is added via SSR codes
CTCM (contact mobile phone) and CTCE (contact email address).
Agents must proactively ask each passenger whether they wish to have their
contact details (mobile number and/or email) provided to airlines participating
in the booked itinerary. The passenger contact information helps airlines
provide timely advice to passengers should there be a flight be delayed or
canceled.

Due to data protection regulations, agents must specifically ask for thier
customers' permission to add thier contact Information to the PNR for the
purpose of sharing with airlines booked.
If the passenger refuses to provide contact information, the agent must advise
the airlines booked by entering SSR code CTCR, remarking that the passenger
refused.
Code Meaning
AVML Asian vegetarian meal
BSCT Baby cot/bassinet
BBML Baby meal
BULK Bulky baggage
BLND Blind passenger
CBBG Cabin baggage (for which extra seating has been purchased)
*Specify weight and size, if known.
CHML Child meal
CTCM Passenger's mobile phone number
CTCE Passenger's email address
CTCR Passenger refused to provide contact information
DEPA Deportee (accompanied by an escort)
DEPU Unaccompanied deportee
DEAF Deaf passenger
*Specify if passenger can lip-read.
DBML Diabetic meal
FQTV Frequent traveler information
FRAG Fragile baggage
*Specify number, weight, size, if known
LANG Language assistance required by passenger
*Specify language(s) spoken.
MAAS Meet and assist (perhaps an elderly passenger needing
support)
*Specify details.
NSSA Aisle seat request
NSSW Window seat request
PETC Passenger traveling with a pet in cabin
RQST Specific seat request
*Include a seat number preference.
STCR Stretcher passenger
SPML Special meal requested
*Specify type of food.
TWOV Passenger in transit without a visa
UMNR Unaccompanied minor (child under 12)
VGML Vegetarian meal requested
WCHR Wheelchair required for walking distances
WCHS Wheelchair required for climbing stairs
WCHC Wheelchair required from the aircraft door to aircraft seat
XBAG Excess baggage (Specify number, weight, size, if known)
Table 4.6.3—A selection of commonly used special service request (SSR) codes and
their meanings

Many of the codes listed above require further explanation. For example, it is
not enough to use the code SPML (special meal) without also describing the
type of meal the passenger has requested.
Key Learning Point

Travel agents can request special services that are to be provided for their
customers while on board a flight. This is done by adding a “special service
request (SSR)” to the PNR in the GDS.
A general information code (OTHS) can be used for any other request that
does not have its own 4-letter code. For instance, a passenger who does not
speak English may require translation services for on-board safety announce-
ments, or during transfer from one flight to another at a foreign airport. By itself,
the OTHS code does not mean anything to an airline. A free-form text remark
must follow the code, explaining what special service is requested. For
example:
OTHS PASSENGER SPEAKS PORTUGUESE ONLY
2) Other Service Information (OSI) Messages

An OSI message differs from an SSR in that it simply provides miscellaneous
information related to the passenger that may be of interest to the airline.
Therefore, no action or confirmation is required nor expected from the airline(s)
booked to transport the passengers.
OSIs, for instance, are used to inform an airline that a passenger is a VIP, such
as a commercially important person, a royal traveler, or some other famous
individual or dignitary. OSIs can also be used to inform the airline of the age of
a minor traveling with an adult as is the case in Figure 4.6.4. Label 1 indicates
that there is at least one OSI entry added to the PNR; label 2 states exactly the
OSI information that is supplied voluntarily to the airline. Although SSR codes
are always in a 4-character format, OSI codes can be either three or four
characters. Table 4.6.4 provides some commonly used codes and their
meanings.
Q801MN/DN PEROU Y2VSDN AG 11213975 21 APR

1.3BROUGHTON/COLINMR/HEATHERMRS/MARKMSTR
** VENDOR LOCATOR DATA EXISTS ** >*VL*
1 ** SERVICE INFORMATION EXISTS ** >*SI*
FONE-PERT*09 747 7312
2. PERH*09 654 9889

CARRIER RELATED
2 1. QF 1 CHD AGE 4 BROUGHTON/MARKMSTR
Figure 4.6.4—OSI entry in a PNR booked in the Travelport Galileo GDS

Code Meaning
ARR Arrival information
CONX Connection information
CTCA Contact address
CTCH Contact home telephone
PWCT Passenger will contact
CONT Continuing
CTC Contact information
CTCB Contact business telephone
CTCT Contact travel agent telephone
VIP Very important passenger
Table 4.6.4—Commonly used OSI codes
Key Learning Point

Travel agents should advise airlines of information about their booked
customers that can be helpful to know. This is done by adding an “other service
information (OSI)” entry to the PNR in the GDS.
Apply Your Learning

Find the best way to remind yourself to ask each customer if they have any
meal requirements or other special requests. The best time to do this is at the
time of making a reservation. Write a list of common passenger requests and
the standard codes needed to request them through a passenger's PNR. In
addition, make a checklist of questions and information needed from passen-
gers. Place the list in a convenient place on your desk or near your computer to
help you remember.

Study Check 4.6.4
1. In the PNR below, what information is voluntarily transmitted in the OSI

field?
1.1GRIFFIN/SCOTT MR 2.1HADLEY/JASMINE MS
2 LX 2144C 23MAY 4 ZRHGVA HK2 1745 1830 /DCLX*666543 /E
3 LX 2107C 27MAY 1 GVAZRH HK2 1910 2000 /DCLX*666543 /E
4 AA 65F 31MAY 5 ZRHJFK HK2 1115 1405 /DCAA*NBKMKL /E
TKT/TIME LIMIT
1.TAW24APR/
PHONES
1. JFK212-924-9849-A
2. JFK212-773-6372-H HADLEY
3. JFK212-849 - 8844--B HADLEY
AA FACTS Y
GENERAL FACTS
Y2VS.Y2VS* ARF 0200/22APR NBKMKL
(a) The passenger is in a wheelchair.
(b) The passengers is a 4-year-old child.
(c) The passenger is an American diplomat.
(d) The passenger is Mr. Griffin Scott.
2. In the PNR below, what information is transmitted in the SSR field?
--- RLR ---

RP/SFOVS2020/SFOVS2020 RJ/GS 21APR
/0343Z R89E30
1. HOFBURG/OSKAR MR
2 OS 527 Y 27MAY 1 VIEORD HK1 1125 1545 *1A/E*
3 OS 528 Y 02JUN 7 ORDVIE HK1 1840 1255+1 *1A/E*
4 AP VIE 01 3945110-VIENNA TRAVEL-A
5 AP VIE 01 3551243-H
6 TK TL26APR/SFOVS2020
7 SSR VGML OS NN1/S2
8 SSR VGML OS NN1/S3
(a) a request for a bassinet
(b) a request for a wheelchair
(c) a request for assistance to the gate
(d) a request for a vegetarian meal

4.6.5 Miscellaneous Abbreviations

The English language is used throughout the air transport industry, and
abbreviations are used in an effort to create a common standard to facilitate the
communication of requests and information. The abbreviations in Table 4.6.5
are standard AIRIMP codes (Airline Interline Reservations Message Pro-
cedures). These codes are the airline industry's shorthand. These abbrevi-
ations are commonly used in the remark or free text fields of GDS entries.
These are used to speed up and ensure accuracy of information exchanged.
However, if you are unsure of an abbreviation, it is better to write the full word
or term to avoid a misunderstanding.
Abbreviation Meaning
ADT Adult
ACK Acknowledge
ADV Advised, advising
AGT Agent, travel agent
ALTRN Alternative
ARR Arrive
ASAP As soon as possible
AUTH Authority, authorize, authorization
CHG Change
CHD Child
CFY Clarify
CONX Connection, connecting, connects
DEP Depart, departs, departed, departure
DAPO Do all possible
FRAV First available
INAD Inadmissible passenger
INF Infant
KK Confirm, confirmed
NN Need
NTBA Names to be advised
NOSH No show
ORIG Origin, originate, originating, originated
PSGR or PAX Passenger(s)
PNR Passenger name record
RPT Repeat, repeating, repeated
REQ Request, requests, requested
RESSASPO Reservation soon as possible
STVR Stopover
TKNO Ticket number
TRAV Traveling
UM Unaccompanied minor
VIP Very important passenger
WL Waitlist
Table 4.6.5—Commonly used air transport abbreviations and their meanings

Key Learning Point

Remember that if you are not sure of the abbreviation for a word, simply spell
out the word in full to avoid any misunderstanding.
Study Check 4.6.5
Refer to Table 4.6.5 to decode the following messages.
1. PLS DAPO TO KK WL THNX AGT ER

(a) Please do all possible to confirm (flights) from the waitlist. Thanks from
agent ER
(b) Please contact passenger directly. Thank you agent ER
(c) Please do all you can to add the passenger to the waiting list. Thank
you agent ER
(d) Please do all you can to confirm (flights) directly. Thank you agent ER
2. PAX REQ FRAV CONX FLT

(a) Passenger requires a special meal for connecting flight
(b) Passenger requires the first available connecting flight
(c) Passenger failed to check in for connecting flight
(d) Passenger failed to change please clarify
3. PLS ADV ALTRN STVR

(a) Please advise new schedule
(b) Please travel by train to terminal S
(c) Please advise alternative stopover
(d) Please request stopover
4. INF PSGR NTBA

(a) Unaccompanied infant (baby) passenger
(b) Infant passenger's name will be advised
(c) Infant passenger on board BA (British Airways)
(d) Unaccompanied infant on board
Apply Your Learning

It is important to be able to communicate efficiently with airlines and other
travel suppliers. Create a coded message using standard abbreviations. Ask
someone to decode the message in plain language to see if your coded
message is understandable.

4.6.6 Unit Summary

To be able to create and interpret reservations, it is important to be familiar with
proper reservations terminology and the 2-character airline codes particularly
those of major international airlines in a PNR. The Passenger Name Record
also contains additional information about the flight reservation details that are
transmitted as messages to other participating airlines and suppliers such as
Special Service Requests (SSR) and Other Service Information (OSI). SSR
entries require confirmation and action from the receiving airline; OSI entries
are for informational purposes only. The supplementary field of a PNR contains
these additional details using industry approved codes or abbreviations from
the AIRIMP.

4.7 International Air Transportation Regulations
• Explain an airline's legal responsibility for passengers, passenger bag-

gage and cargo goods (Unit 4.7.1).
• Define the maximum liability limits for airlines set by the Montreal
Convention (Unit 4.7.2).
Unit Learning • Identify the role of the International Civil Aviation Organization (Unit 4.7.3).
Objectives • Describe the objectives of bilateral agreements (Unit 4.7.4).
4.7.0 Unit Overview
This unit identifies the conventions and internationally recognized regulations
whose principles regulate the air transport industry.
4.7.1 The Warsaw Convention

The Warsaw Convention is an intergovernmental agreement that governs
airline liability in the event of harm (death, injury or loss) to passengers,
baggage and cargo. This Convention was originally signed in Warsaw in 1929.
It has since been amended twice: in the Hague in 1955 and in Guatemala City
in 1971.
The Warsaw Convention protects airline customers by defining the airline's
legal responsibilities. It also protects airlines by setting a limit on the amount
due to its customers in the event of death or injury to passengers, or for loss,
damage or delay of luggage. Information about actual limits is included on the
passenger receipt coupon generated by an electronic ticket. Additional
protection can be obtained by purchasing travel insurance. All international
passengers are advised to purchase adequate insurance for their journey.
Nevertheless, the Warsaw Convention does not deal with all aspects of the
legal relationship between airlines and their passengers. Specific contractual
provisions concerning liability not governed by the Convention are printed, in
brief, on the passenger's ticket receipt under the heading “Conditions of
Contract.” As the ticket receipt states, the full text is available upon request
from the issuing airline.
4.7.2 The Montreal Convention

The Montreal Convention is an international agreement that establishes liability
for international air transportation. It was adopted by ICAO member states in
1999.
The Montreal Convention updates and modernizes the rules governing airline
liability in the event of the death or injury of a passenger, loss of baggage or
cargo, or delay during international air transport, as contained in the Warsaw
Convention of 1929. It preserves many aspects of the Warsaw Convention but
features a two-level system of determining airline liability for the death or injury
of passengers should an accident occur. In the first level, airlines assume full
liability for claims up to 100,000 SDR*. In the second level, airlines can defend
themselves legally against any claim above 100,000 SDR. The Montreal
Convention also states that carriers must maintain adequate insurance to cover
any potential liability.
Unit 4.7: International Air Transportation Regulations 401

*SDRs (Special Drawing Rights)–A currency conversion measure used by the

International Monetary Fund (IMF), where one SDR is equivalent to approxi-
mately USD 0.50 (fifty cents).
Key Learning Point

Travel professionals should always ask their travel customers to read the
Conditions of Contract printed on the Passenger Receipt Coupon which must
be delivered to the customer after issuing any electronic airline ticket.
Especially in the case of first-time travelers, the travel agent plays an important
role in educating about passenger rights and airline responsibilities.
Apply Your Learning

If passengers are in any doubt over whether or not they are adequately insured
by the standard conditions as stated on their ticket, you should suggest that
they purchase personal travel insurance for additional protection.
What are three providers of personal travel insurance in your area?
The following type of notice is displayed on an e-ticket itinerary and/or receipt:
ALSO www.iatatravelcentre.com/e-ticket-notice/General/English
TRANSPORTATION AND OTHER SERVICES PROVIDED BY THE CAR-

RIER ARE SUBJECT TO CONDITIONS OF CONTRACT AND OTHER
IMPORTANT NOTICES WHICH ARE DELIVERED WITH THIS ITINERARY/
RECEIPT AND FORM PART OF THE CONTRACT OF CARRIAGE.
PLEASE ENSURE THAT YOU HAVE RECEIVED THESE NOTICES AND IF
NOT CONTACT THE NEAREST OFFICE OF THE ISSUING AIRLINE OR
TRAVEL AGENT TO OBTAIN A COPY PRIOR TO THE COMMENCEMENT
OF YOUR TRIP.
NOTICE
IF THE PASSENGER'S JOURNEY INVOLVES AN ULTIMATE DESTI-
NATION OR STOP IN A COUNTRY OTHER THAN THE COUNTRY OF
DEPARTURE, THE WARSAW CONVENTION MAY BE APPLICABLE AND
THE CONVENTION GOVERNS AND IN MOST CASES LIMITS THE LIAB-
ILITY OF CARRIERS FOR DEATH OR PERSONAL INJURY AND IN
RESPECT OF LOSS OR DAMAGE TO BAGGAGE.
Figure 4.7.1—Example of “Conditions of Contract,” E-Ticket version

4.7.3 The Chicago Convention and ICAO

The Chicago Convention on international civil aviation was concluded at a
meeting between governments in 1944. The Convention governs relations
between countries to encourage cooperation and peace between nations as
well as order and safety in the air. The convention sets the rules in commercial
air transportation for:
• flying over territory of contracting states
• recognizing the nationality of aircraft
• establishing official documents such as certificates and licenses
• applying international standards and practices, including those for carriage
of dangerous goods
• providing financial and technical assistance
In 1947, the Convention created a new agency of the United Nations
Organization with permanent international authority: the International Civil
Aviation Organization (ICAO). ICAO has its headquarters in Montreal, Canada.
ICAO's main objectives are to:
• Ensure safe and orderly growth of international civil aviation worldwide
• Encourage the art of aircraft design and operation for peaceful purposes
• Encourage development of airways, airports, and air navigation facilities
• Meet the needs of people for safe, regular, efficient, and economical air
transport
• Prevent economic waste caused by unreasonable competition
• Ensure that the rights of contracting states are fully respected, avoid
discrimination between contracting states, and ensure that every con-
tracting state has a fair opportunity to operate international airlines
• Promote safety of flights and the development of all aspects of international
civil aeronautics
4.7.4 Bilateral Agreements

These are agreements between two states/countries that specify the flying
rights of their designated carriers (national airlines) between their territories.
For example, one state's carriers may be permitted to import spare parts and
supplies into another state for the purpose of maintaining their aircraft without
charge.
The most important part of the bilateral agreements specifies the cities that
may be served by the designated airlines. These agreements often specify at
which points–whether intermediate or beyond the other country–the designated
carrier may exercise its traffic rights. Such rights, including the right to fly over
another country or to make technical stops, are known as the Freedoms of the
Air.
Unit 4.7: International Air Transportation Regulations 403

Study Check 4.7.4
1. The International Civil Aviation Organization (ICAO) was created by:

(a) the Warsaw Convention
(b) the Chicago Convention
(c) IATA member airlines
(d) the Montreal Convention
2. The Chicago Convention:

(a) decides which airlines are authorized to operate international air
services
(b) sets the rules on how air service rights may be granted by countries
(c) limits air carrier liability
(d) limits baggage liability
3. ICAO works to:

(a) set the principles and techniques of international air navigation
(b) govern carrier liability on behalf of passengers
(c) investigate claims for lost baggage
4.7.5 Unit Summary

There are three important international conventions that govern air travel
namely:
• The Warsaw Convention, the first convention to establish the liabilities of
carriers towards passengers.
• The Montreal Convention which built upon the Warsaw Convention.
• The Chicago Convention which establishes the provisions on how air
service rights are granted in addition to creating ICAO (International Civil
Aviation Organization).

Module Summary
This module provided a description of the following:
• Airport facilities for departing, arriving, and transit/transfer passengers
(Unit 4.1).
• The main aircraft types and understand the classes of service, seating
plans, and other in-flight services (Unit 4.2).
• Ancillary services and their benefits for passengers, airlines, and travel
agents (Unit 4.3).
• Relevant rules and procedures for the carriage of checked and unchecked
baggage, and domestic pets (Unit 4.4).
• Correct usage of airline timetables (Unit 4.5).
• Passenger facilitation and reservations (Unit 4.6).
• Coding and decoding of the listed 2-character airline designators (Unit 4.6).
• Key international regulations pertaining to international air transportation
(Unit 4.7).
Module Summary 405

Review Questions
Unit 4.1–The Airport

1. Which of the following is the busiest airport?
(a) John F Kennedy International Airport
(b) Hartsfield Jackson Atlanta International Airport
(c) Sydney Airport
(d) Toronto Pearson International Airport
2. If you are flying from Houston, to which terminal should you go if you are
flying with Air Canada?
(a) Terminal A
(b) Terminal B
(c) Terminal C
(d) Terminal D

3. Using the image above, if a passenger flies from Toronto to Houston on Air
Canada where they transfer to a flight to Paris on Air France, do they have
to change Terminals?
(a) Yes
(b) No
4. Passport control is the step in the
departure formalities.
(a) 1st
(b) 2nd
(c) 3rd
(d) 4th
5. A passenger is flying from New York to Los Angeles via Chicago. In which
column should you look to determine the minimum connection time in
Chicago?
(a) I/I
(b) I/D
(c) D/I
(d) D/D
6. Upon arrival in Sydney from Tokyo, the first arrival formality a passenger
experiences is:
(a) customs
(b) baggage claim
(c) immigration and passport control
(d) check-in
7. A passenger flies from Amsterdam to Berlin. Upon arrival in Berlin, through
which customs channel should he pass?
(a) Red
(b) Blue
(c) Green
(d) Yellow
Unit 4.2–Airline Products and Services

1. Airline alliances were created to:
(a) extend system networks and reduce costs
(b) extend system networks and increase costs
(c) minimize system networks and reduce costs
(d) minimize system networks and increase costs

2. Which of the following is a benefit of airline alliances for passengers?

(a) reduced staff
(b) reduced costs
(c) lower air fares
(d) shared aircraft maintenance
3. If a passenger who has an Aeroplan account with Air Canada books a flight
from Montreal to Miami via New York, and the second segment is flown on
United, will the passenger earn reward points for both legs?
(a) Yes
(b) No
4. The more a passenger flies with an airline the more points he accumulates
and the higher status he has. TRUE or FALSE?
(a) True
(b) False
5. Which service is available to first class passengers which is not available to
business class passengers?
(a) priority boarding
(b) free chauffeur-driven limousine service from the passenger's home to
the airport
(c) better quality food and drink available throughout the flight
(d) late check-in and separate check-in counters
6. If you book a seat for a passenger with a booking class code of D, in which
cabin class will they be sitting?
(a) First
(b) Premium
(c) Economy
(d) Business
7. Using the diagram below, answer the following question. A passenger
wishes to book a flight from Atlanta, Georgia, to Cape Town, South Africa.
They are booking an economy ticket and have the following requests for
their seat: aisle seat, as close to the front as possible, not next to a
lavatory, not over a wing. Which of the following would be the seat you
would propose to this passenger?
(a) 28A
(b) 37C
(c) 42H
(d) 49C

8. Which of the following best describes seat pitch?

(a) the amount of legroom available
(b) the amount of head-room
(c) the distance from armrest to armrest
(d) the angle of recline of the seat
9. Which of the following is a special passenger category?
(a) military personnel
(b) a doctor
(c) a child
(d) a vegetarian
10. A passenger flying from Amsterdam to New York City requests a Kosher
meal. Which meal code do you enter in the GDS?
(a) MOML
(b) KSML
(c) HNML
(d) NLML
11. Which code must be entered in the GDS when a passenger needs a
wheelchair only for airport use to travel to and from the gate?
(a) WCMP
(b) WCHS
(c) WCBW
(d) WCHR
Unit 4.3
1. Which of the following is considered an in-flight optional amenity?
(a) priority boarding
(b) internet access on board
(c) charges for lost tickets
(d) booking fees for telephone reservations

2. Which of the following is considered a pre-flight optional amenity?

(a) extra legroom
(b) in-flight internet access
(c) airport lounge access
(d) in-flight meals
3. A travel agent is booking a flight for a passenger from Vancouver to Tokyo.
The passenger is flying economy but wishes to have extra legroom for the
long flight. Does the travel agent need to purchase an ancillary service for
the customer in this case?
(a) Yes
(b) No
4. Which of the following is issued to the passenger as a receipt of each
ancillary service purchased?
(a) GDS
(b) PNR
(c) SSR
(d) EMD
5. Which of the following is a benefit of ancillary services for airlines?
(a) increased revenue
(b) cheaper flights
(c) greater personalization
(d) fewer flights
6. When making a reservation for an ancillary, the first step a travel agent
takes is:
(a) making an SSR entry
(b) issuing an EMD
(c) issuing a PNR
(d) editing the GDS
Unit 4.4
1. Hand baggage is always .
(a) carried in the hold
(b) subject to weight and size restrictions
(c) not allowed
(d) checked at the gate

2. A list of prohibited articles that cannot be carried by passengers in checked

and unchecked baggage is described on
the .
(a) electronic ticket record in the PNR of a GDS system
(b) Passenger Receipt Coupon issued by any ticket provider
(c) baggage tag printed by airline airport counters or kiosks
(d) passenger passport or other valid identification document
3. A passenger wishes to travel with her small dog. Her dog and its carrying
cage weigh a total of 7 kg. You tell the passenger that the dog will have to
travel in the .
(a) cargo hold
(b) cabin
(c) rear of the plane
(d) overhead compartment
Use the image below to answer questions 4 and 5.

4. A passenger is flying economy from Toronto, Canada to San Jose, Costa

Rica. The passenger plans to check 1 bag. How much must the passenger
pay?
(a) $75
(b) $40
(c) $0
(d) $25
5. A passenger is flying business class from Chicago, USA to Sao Paulo,
Brazil. He is checking 2 bags for the journey. How much must he pay in
excess baggage fees?
(a) $0
(b) $25
(c) $40
(d) $75
6. Which does not influence the baggage allowance entitlement for a
journey?
(a) Fare class travelled
(b) Golf equipment
(c) Wheelchair
(d) Baggage size and weight
7. In the following routing, which carrier is the Most Significant Carrier
determining the baggage provisions applicable to the whole journey?
LAX - DL - X/ATL - AF - CDG - KL - X/AMS - KE - SEL
(a) DL
(b) AF
(c) KL
(d) KE

8. How much baggage is the passenger allowed to check free of charge?
TKT-0013600036797 RCI- 1A LOC-728BXU

1 LHR AA 131 G 11SEP1600 OK GLXAP6M O 0PC
2 OJFK AA 100 G 20SEP1820 OK GLXAP6M O 0PC
LHR
FARE F GBP 452.00
TOTAL TAX GBP 55.91
TOTAL GBP 507.91
/FC 30MAY LON AA NYC 332.90GLXAP6M AA LON 332.90GLXAP6M NUC665
.80END ROE0.6789 XFJFK4.5
FP CCVI4207807113242347/0914
FREQUENT FLYER AA395V470
(a) 2 pieces
(b) 20 Kg
(c) 30 Kg
(d) 0 pieces
Using the table below, answer questions 9 and 10.

9. Mr. Lee is traveling from Berlin to Geneva in Economy class and checks in
a bag that is 22 kg and 168 cm. What excess baggage fees must Mr. Lee
pay?
(a) none
(b) 200 EUR
(c) 150 EUR
(d) 100 EUR
10. Ms. Montejo is traveling from Barcelona to Atlanta and wishes to check a
tandem bike in addition to her free baggage allowance. The bike weighs
28 kg and is 152 cm. How much must Ms. Montejo pay in excess baggage
fees?
(a) 50 EUR
(b) 100 EUR
(c) 300 EUR
(d) 200 EUR
11. Which of the following are prohibited in checked and carry-on baggage?
(a) fireworks
(b) a hair dryer
(c) 100 ml of shampoo
(d) MP3 player
Unit 4.5
1. Which of the following pieces of information are not included in flight
schedule information?
(a) days of operation
(b) aircraft type code
(c) meal code
(d) cabin class

Use the flight schedule below to answer questions 2 and 3.
2. The flight through LGA is a faster route. TRUE or FALSE?

(a) True
(b) False
3. If Mr. Warren needs to be in Burlington's city center for a 2 pm meeting,
which flight should he take considering he will have to claim checked
baggage on arrival?
(a) he should take a flight the day before
(b) he should take Delta 0690 and 3862
(c) he should take Delta 1686 and 4974
(d) he should take Delta 0690 and 4974

Use the timetable below to answer the following question.
TN19MAYLHRMUC
** AMADEUS TIMETABLE - TN ** MUC MUNICH.DE 19MAY 26MAY
1 LH2485 D LHR 1 MUC 2 645A 935A 0 31MAR 26OCT 319 1:50
2 LH2483 7 LHR 1 MUC 2 730A 1020A 0 31MAR 20OCT 320 1:50
3 LH2483 X7 LHR 1 MUC 2 730A 1020A 0 01APR 26OCT 321 1:50
4BA:QF3557 D LHR 5 MUC 1 755A 1045A 0 31MAR 25OCT 319 1:50
5BA:AA6542 D LHR 5 MUC 1 755A 1045A 0 31MAR 319 1:50
6BA:AA6036 D LHR 5 MUC 1 755A 1045A 0 19MAY 26MAY 319 1:50
7 BA 948 D LHR 5 MUC 1 755A 1045A 0 31MAR 17JUN 319 1:50
8 BA 950 X67 LHR 5 MUC 1 855A 1145A 0 01APR 25OCT 319 1:50
9BA:QF3565 X67 LHR 5 MUC 1 855A 1145A 0 01APR 25OCT 319 1:50
10BA:AA6038 X67 LHR 5 MUC 1 855A 1145A 0 20MAY 24MAY 319 1:50
11 LH2471 D LHR 1 MUC 2 930A 1220P 0 31MAR 26OCT 320 1:50
12 LH2473 6 LHR 1 MUC 2 1110A 200P 0 06APR 26OCT 320 1:50
4. Which flight operates on Saturday only?

(a) LH2485
(b) BA950
(c) LH2483
(d) LH2473
5. How would you spell the name John using the phonetic alphabet?
(a) January - Oscar - Hobo - November
(b) Juliet - Orchid - Hotel - Nancy
(c) Juliet - Oscar - Hotel - November
(d) January - Oscar - Hobo - Nancy
Unit 4.6
1. Which of the following best defines MCT?
(a) the shortest time interval necessary for transferring from one flight to
another at an airport
(b) a unit of common international value, such as a currency, established
by IATA to assess international air fares and charges
(c) time at which an aircraft is expected to arrive at its destination
(d) a computerized system used to access information about schedules,
availability, fares and other travel formalities.
2. A direct flight may stop at one or more airports between the origin and
destination airports to pick-up or drop-off some passengers. TRUE or
FALSE?
(a) True
(b) False

3. To which airline does the 2-character code U2 belong?

(a) United Airlines
(b) Emirates
(c) Lufthansa
(d) Easy Jet
4. What is the 2-character code for SWISS?
(a) LA
(b) LX
(c) SK
(d) SQ
Use the PNR below to answer questions 5–7.
Q801MN/DN PEROU Y2VSDN AG 11213975 21APR

1.3BROUGHTON/COLINMR/HEATHERMRS/MARKMSTR
** VENDOR LOCATOR DATA EXISTS >*VL*
** SERVICE INFORMATION EXISTS ** >*SI*
FONE-PERT*09 747 7312
2. PERH*09 654 9889

CARRIER RELATED
1. QF 1 CHD AGE 4 BROUGHTON/MARKMSTR
5. How many passengers are traveling?
(a) 1
(b) 2
(c) 3
(d) 4
6. Is one of the passengers a child?
(a) Yes
(b) No
7. How many seats are booked on each of the flights?
(a) 1
(b) 2
(c) 3
(d) 4

8. If a passenger were to request a vegetarian meal, what type of message

would be transmitted in the PNR?
(a) SSR
(b) OSI
9. The transmission of an OSI as part of a PNR requires confirmation from the
airline. TRUE or FALSE?
(a) True
(b) False
10. What does the following reservation coded message mean?
PAX REQ ALTRN CONX
(a) Passenger repeats train connection
(b) Passenger requests train connection
(c) Passenger requests alternative connection
(d) Passenger repeats alternative flight
Unit 4.7
1. The Warsaw Convention defines the carrier's legal responsibilities towards
its passengers. TRUE or FALSE?
(a) True
(b) False
2. The Montreal Convention is an international agreement that establishes
liability for international air transportation. TRUE or FALSE?
(a) True
(b) False
3. The Warsaw Convention covers all aspects of the legal relationship
between the airlines and passengers. TRUE or FALSE?
(a) True
(b) False
4. The airline's responsibility to transport the passenger is described
in the “conditions of contract” printed on the
passenger's .
(a) baggage tag
(b) ticket receipt
(c) passport
(d) boarding pass

5. Provisions in carrier liability which are not covered by the Warsaw

Convention can be found in the .
(a) Conditions of Contract
(b) Chicago Convention
(c) Montreal Convention
(d) government bilateral agreements
6. The Chicago Convention governs .
(a) loss of baggage
(b) liability of carriers on behalf of passengers
(c) relations between states on technical/commercial matters
(d) issuing of passports

Glossary
Ancillary services: Optional pre-flight and in-flight services available to
passengers for a fee and not included in the air fare.
Availability: Term used to represent the number of seats remaining for
purchase.
Booking form: A form completed by a travel agent when a booking is created.
The form records details of the customer's name, contact address and
telephone number, itinerary, payment details, and booking conditions.
Baggage: Personal items carried by a traveler, such as clothes, camera
equipment, and other articles related to the journey.
Baggage allowance: Refers to the amount of luggage each passenger is
permitted to transport free of charge.
Baggage tag: 1. A document noting the passenger's name and address that is
attached to luggage as a means of identification. 2. Tags issued at check-in
and used to identify checked baggage.
Baggage claim area: An area of an airport where arriving passengers can
collect their baggage.
Billing and settlement plan (BSP): A reporting system for collecting ticket
payments from agents and distributing the funds to the appropriate airlines.
Boarding pass: Normally issued at check-in, in exchange for passenger's
ticket coupon. A boarding pass or card indicates the class and seat number
allocated to a passenger.
Check-in: Formalities undertaken by a passenger at an airport before
departure. These include the checking of passenger documents, allocation of
seats, and issue of boarding cards and baggage tags.
Cancellation penalty: Penalty levied by airlines when a passenger fails to use
a reservation.
Carrier: 1. An airline. 2. A passenger or cargo transportation company.
Child: A passenger aged between 2 and 12 years of age.
Commission: Amount of money earned from the sale of flights and other
services. Commission is usually a percentage of the sale price.
Code share: A single flight on which space is shared and sold by two or more
airlines. A ticket may be issued under the code of either airline and the flight
may have two or more flight numbers.
Conditions: Refers to a booking and the rules of contract between, for
example: an agent and his client. Relates to cancellation/administration
charges, date change conditions, passport, visa, and health requirements. In
addition, any other general terms and conditions established by travel agencies
or carriers.
Configuration: Refers to the arrangement of seats on an aircraft.
Confirmed reservation: A definite booking, where seats are available and a
reservation has been created under a passenger's name.
Connecting flight: 1. A flight which delivers a passenger to another aircraft in
another city. 2. A flight that requires the passenger to change aircraft as part of
the itinerary.
Customs: The control and regulation of imports and exports.
Destination: The final stopping place: the place to which a passenger is going.

Direct flight: A flight which does not require passengers to change aircraft
between the starting point and destination.
Estimated time of arrival/departure (ETA/ETD): ETA—time at which an
aircraft is expected to arrive at its destination. ETD—time at which an aircraft is
expected to depart.
Excess baggage: A passenger's baggage presented at check-in that is in
excess (either in terms of weight or dimensions) of the free allowance.
Flight number: An alphanumeric code, made up of a 2-character airline code
plus between 1 and 4 numbers, assigned to a particular route.
Gateway: The international arrival/departure point in a carrier's home country.
Infant: Passengers who have not yet reached their second (2nd) birthday.
International Dateline: Imaginary line at approximately 180° longitude in the
Pacific Ocean where, by international agreement, the earth's day begins.
Issuing carrier: Airline whose ticket is issued or in whose name a ticket is
issued.
Itinerary: 1. A description of a customer's travel plans, including all flights
booked. 2. A paper document issued to customers with flight reservations and
all booked flight details.
Minimum connecting time (MCT): The shortest time interval necessary for
transferring from one flight to another.
Most Significant Carrier (MSC): The carrier for which baggage rules will
apply to an interline journey.
Neutral unit of construction (NUC): Unit of common international value, such
as a currency, established by IATA to calculate international air fares and
charges.
No-show: A passenger holding a flight reservation who fails to use it and
cancel it prior to the flight departure.
Origin: The starting point, or place at which a journey commences.
Overbooking: A situation in which more seats have been sold than are
available on an aircraft.
Passenger: A traveler on public transport.
Passenger coupon or receipt: Portion of the passenger's ticket and baggage
check issued by or on behalf of a carrier, which constitutes the passenger's
written evidence of the contract of carriage.
Passenger name record (PNR): A unique computerized file. A PNR is created
by the booking agent and is used to communicate passenger details and
intended flight itinerary as well as other requests and information relevant to
the carrier. Also referred to as a booking or reservation.
Reconfirmation: Procedure (normally a telephone call to the airline) by which
passengers confirm their intention to use the reserved seat booking. Alterna-
tively, reconfirmation of flight reservations is automatic when the passenger
performs online check-in.
Refund: Reimbursement to the purchaser of all, or a portion, of a fare for an
unused service.
Season: The period during which a ticket is valid for travel, as determined by
the fare that is paid.
Glossary 421
Stopover: Deliberate interruption of a journey, planned by the passenger, at a

place between the origin and destination.
Terminal: Area at an airport where the formalities for departing and arriving
passengers take place.
Transfer: Process for transporting passengers from one terminal to another, or
perhaps from an airport to a local hotel, usually by bus.
Transit: Passengers who are temporarily located at a point between their
departure and destination.
Unaccompanied minor (UM): A child, up to the age of 12, who travels alone,
not accompanied by an adult.
Waitlist: Passengers awaiting confirmation of a requested flight(s), that is/are
currently fully booked.

References
The IATA website (www.iata.org) is the best reference for industry standards
on airline ancillaries, checked baggage and air transport regulations.
Recommended Videos
• Most dangerous and strangest airports in the world Part 1:
https://www.youtube.com/watch?v=gPGc3CKxDHk
• Most dangerous and strangest airports in the world Part 2:
https://www.youtube.com/watch?v=WXkMznR0UkA
Recommended Videos 423

Answer Key Study Check 4.2.2

1. c 2. c
2. b 3. d

1. d 1. (b) False
2. c 2. (b) False
3. a 3. (b) False
4. b
Study Check 4.2.4
5. (b) False
1. b
6. (a) True
2. c
Study Check 4.1.3

Study Check 4.2.5
1. b
1. (b) False
2. c
2. d
3. d
5. (a) True 1. (a) True
7. c 3. a
8. d 4. (b) False
5. a
Study Check 4.1.4 6. b
1. (a) True
2. (a) True Study Check 4.2.7
3. d 1. (b) False
4. (b) False 2. (a) True
3. c
Study Check 4.1.6
1. (b) False Study Check 4.2.8
2. (a) True 1. d
3. (b) False 2. c
4. (a) True 3. d
4. a
Study Check 4.2.1
1. (a) True
2. c
3. a


1. b 1. a
2. c 2. (b) False
3. c
Study Check 4.2.10
4. a
1. (a) True
5. d
2. b
Study Check 4.4.4
Study Check 4.3.1
1. (b) False
1. (a) True
2. b Study Check 4.4.5
3. c 1. a
2. a
Study Check 4.3.2
3. d
1. b
4. a
2. (a) True
5. c
Study Check 4.3.3
Study Check 4.4.6
1. a
1. (a) True
2. d
2. b
3. b
3. c
Study Check 4.3.4 4. d
1. (b) False 5. b
2. (b) False
Study Check 4.4.7
3. c
1. b
4. c
2. b
Study Check 4.4.1
Study Check 4.4.8
1. b
1. (a) True
2. d
4. c 1. (b) False
2. (b) False
Study Check 4.4.2
3. d
1. a
2. c
Answer Key 425


1. (a) True 1. c
2. (b) False 2. e
3. b 3. a
4. (a) True 4. b
5. d
Study Check 4.4.11
2. c 1. (a) True
3. d 2. (b) False
3. (b) False
Study Check 4.5.3
4. b
1. c
5. c
2. a
6. a
3. c
7. c
4. a
8. (b) False
5. d
9. (a) True
1. b
Study Check 4.6.3
2. b
1. b
3. c
2. (a) True
4. a
3. (a) True
5. c
4. b
6. d
5. d
Study Check 4.5.5
Study Check 4.6.4
1. (b) False
1. c
2. b
2. d
3. b
5. c 1. a
2. b
Study Check 4.5.6
3. c
1. a
4. b
2. c
3. c Study Check 4.7.4
1. b
2. b
3. a

Review Unit 4.4

Unit 4.1 1. b
1. b 2. b
2. a 3. a
3. a 4. c
4. b 5. a
5. d 6. c
6. c 7. a
7. b 8. d
9. d
Unit 4.2 10. b
1. a 11. a
2. c
3. a Unit 4.5
4. (a) True 1. c
5. b 2. (a) True
6. d 3. b
7. c 4. d
8. a 5. c
9. c
Unit 4.6
10. b
1. a
11. b
2. (a) True
Unit 4.3 3. d
1. b 4. b
2. c 5. c
3. a 6. a
4. d 7. c
5. a 8. a
6. a 9. (b) False
10. c
Unit 4.7
1. (a) True
2. (a) True
3. (b) False
4. b
5. a
6. c
Answer Key 427


Module 5:
Land Transport: Introduction to
Passenger Rail
Module Prerequisites • Plan itineraries in a logical geographical manner.

• State why people choose to travel by train (Unit 5.1).

• Describe rail products from around the world (Unit 5.2).
• Recognize how to find rail timetables on the Internet (Unit 5.3).
• Give advice concerning types of accommodation on board the train
Module Learning (Unit 5.4).
Objectives
• Read a ‘tabular’ timetable (Unit 5.5).
you will be able to: • Locate basic information about rail fares, tickets and passes (Unit 5.6).
Module Introduction
Planning rail trips through Europe or any other part of the world is part of the
fun in creating interesting and memorable trips for your customers.
This Module provides insights into the needs of rail travelers and how to help
plan rail journeys by discussing:
• the different types of rail services on offer
• the choices that need to be made when traveling by train
• how to find and understand rail timetable information in various forms such
as using internet journey planners and traditional types of timetables.
Your knowledge of world geography comes in handy when planning rail
itineraries, and giving professional advice to rail customers.
For sample extracts from the European Rail Timetable, refer to Attachment D.
You can access and download Attachment D from your IATA LMS User
Account.

432 Module 5: Land Transport: Introduction to Passenger Rail

5.1 Why Take the Train?
• Explain the location advantages of railway stations (Unit 5.1.1).

• Advise customers on the features of travel by rail (Unit 5.1.2).
• Recognize the increased popularity of rail travel (Unit 5.1.3).
• Describe the passenger rail industry's impact on the environment com-
Unit Learning pared to other forms of transportation (Unit 5.1.4).
Objectives
Travel by train? Some may think that this is an outdated form of traveling. Why
might anyone prefer to travel between two points by rail than by any other
transportation mode? Common complaints from inexperienced rail travelers
are: “Train travel is expensive!” or “It takes too long!” “And what about traveling
with all my luggage?”
Millions of people worldwide rely entirely on trains for their daily journey from
home to their place of work. People who make a regular journey like this are
called commuters.
However, a customer is unlikely to visit a travel agent to discuss regular
commuting. The focus is with longer distance travel, and journeys taken on an
occasional basis. The train can often meet the needs of such travelers. Hence,
this unit examines the advantages of rail travel for these types of travelers and
why they choose to travel by train.
Have a look at some arguments to help convince customers who have not yet
decided to choose the train.
It is important to be aware that the customer may have more experience in rail
travel than you have. It is also very easy for them to find information online.
Therefore, your task will be to consolidate and give information that is more
detailed and complete.
5.1.1 Railway Station or Airport?

Most cities and towns have railway stations that are conveniently located close
to the city center. They were built at a time before cities began to spread into
the suburbs. Large stations are likely to be served by many train services and
other public transport, providing easy access from the surrounding area.
Figure 5.1.1—Stations big and small–railways cover the world
Unit 5.1: Why Take the Train? 433

Airports, however, require a lot of space and were built much later. Most are
located outside the city center. Some major airports are served by rail, whereas
others may only have a bus service. As well as the time taken to travel from the
city to the airport, the check-in process and security procedures may also
require a lot of time. Making the journey by rail, therefore, can often be quicker
and more convenient. Because rail travel is from city center to city center,
travel professionals generally consider that high-speed rail travel has the
advantage over air for journeys of up to four hours. In other words, it generally
takes longer to make the same journey by air. It does, of course, depend on the
particular journey.
There are many more railway stations than airports, and even small towns
often have a station. In Germany, there are over 5,000 railway stations, but
only about 60 passenger airports. Even if customers choose to make part of
the journey by air, using a train may be the best way to reach the airport or their
final destination. Some important airports like Frankfurt-am-Main in Germany,
Brussels in Belgium or Geneva in Switzerland have rail services to various
parts of the countries they serve, beyond the city served by the particular
airport.
Figure 5.1.2—Railway stations come in many shapes and sizes; rail stations in
Katowice (Poland), Cardiff (UK), and Merklin (Czech Republic)
In many areas of the world, like Europe or Japan, rail services are more
frequent than flights. Quite often trains do not need to be reserved in advance,
giving more flexibility for changing travel plans. Trains are also more reliable,
as they are less affected by bad weather and fog.
Key Learning Point

There are more railway stations than there are airports, so more places are
served by rail than by airline flights. In Europe and many other parts of the
world there are more rail services than there are flights.
5.1.2 A Comfortable Journey

For business people, traveling on a good-quality train has other advantages
too. It is possible to work comfortably on board. Wireless internet access
(Wi-Fi) is available on more and more trains (sometimes free of charge). There
may also be places to plug in chargers for laptop computers, phones and other
electronic devices. Colleagues can sit around a table, and in some trains there
is even a special conference compartment.

Figure 5.1.3—Seats in first-class: modern trains offer comfortable surroundings
Of course, these advantages also apply to leisure travelers. Families can sit
together and talk or play games. Sometimes there is even a special play area
for young children. There may be a restaurant car to have a leisurely meal or
somewhere to buy refreshments. The view out of the train window is also an
important consideration, especially if the traveler is visiting a destination for the
first time. Passengers often feel they are experiencing something of the culture
of a country when they travel by train. Although passengers must take their
luggage with them, there is more space available than on a plane, and
passengers can access their belongings during the journey.
Be very careful when advising your customers, however. It is important to
research the particular journey they intend to make. There are many different
types of trains. Some are well suited for businessmen and for comfortable
leisure journeys. Other trains may be quite basic with seats that are not very
comfortable. Unit 5.2 will provide more details at what to expect on different
types of train.
Key Learning Point

Today's modern trains offer all the passenger conveniences available to airline
passengers, including WI-FI and seats with extra space.
5.1.3 Popularity of Rail Travel

A high number of passengers travel by rail. According to research, in the
European Union alone there are around 9 billion passenger trips each year.
Indian Railways carries 23 million people a day on over 12,000 trains. East
Japan Railway, one of the seven major railway companies in Japan, carries
17 million passengers each day.
Railway companies in many countries are reporting an increase in the number
of passengers riding their trains. New high-speed lines reduce journey times
and provide more frequent services.
For example, the high-speed operator Thalys reports 50% more passengers on
its Paris to Amsterdam route since 2006. Eurostar, which operates through the
Channel Tunnel between Great Britain and France, reports a steady increase
in passengers each year. High-speed rail operators serving Rome to Milan in
Italy and Madrid to Barcelona in Spain have seen many thousands of
passengers switch from air to rail. There has been a corresponding reduction in
the number of airline flights offered on these routes. The CER report estimates
that passenger rail transport in Europe grew by 17% since year 2000.

Train ridership (i.e. the number of people using rail transport) is growing. In
Great Britain, passenger-kilometers (a measure of rail usage) doubled since
1982 to 60 billion per year. Amtrak, the operator of long-distance trains in the
USA, reports more passengers every year in recent years. Amtrak has seen a
big increase in passengers on its busy North East Corridor (Washington–New
York–Boston).
Rail's popularity compared with other modes of passenger transport (road and
air) varies widely. 90% of people traveling between Paris and Lyon in France
travel by train (a two-hour high-speed journey of 430 km). On the other hand,
on the USA's busiest air corridor between the San Francisco Bay area and Los
Angeles, there are hundreds of flights each day from several airports, but only
a small number of trains (and most require bus connections). Rail's share of all
passenger journeys (its ‘market share’) is less than 1% in the USA versus 7%
in Europe. The highest market share of all is found in China and Russia.
Most countries recognize that rail has a key role to play in helping economic
growth, offering new job opportunities, and improving personal mobility and
living conditions. Another important aspect is improving the environment (see
Unit 5.1.4). The future for rail travel is good.
Key Learning Point

Rail travel is increasingly popular and can offer significant advantages over
other modes of transport. However the availability of rail services varies from
area to area.
5.1.4 Environmental Concerns

Another reason for the increase in rail passengers is that people are more
aware of environmental issues. Traveling by train is more environmentally
friendly than traveling by air or by car. With increasing concern about climate
change, sustainable tourism, air quality, and other ‘green’ issues, more and
more people are taking these factors into consideration when choosing how to
travel.
If your customers ask how ‘green’ rail travel is, it is very difficult to give precise
figures, because there are a great many factors involved. Broadly speaking,
carbon dioxide emissions from rail journeys are considered to be about one
quarter to one third of those from equivalent road journeys. When compared
with air flights, rail does even better. When you search for rail journeys online,
many websites will now allow you to compare the estimated carbon emissions
of your journey with those of other modes of travel.
Modern trains are particularly energy efficient. Modern technology has greatly
advanced train construction, with the use of lighter materials and wind resistant
designs. Electric trains are particularly energy efficient, reducing the polluting
carbon emissions that cause global warming. Experts believe that in the year
2035 electric trains will be running at 400 kilometers per hour (km/h) but will
consume only half the energy of a typical high-speed train of today, running at
300 km/h.

Figure 5.1.4—Streamlined for speed and energy-efficiency: high speed trains in

Germany, Italy and Japan
Key Learning Point

Rail travel produces less pollution and is more energy efficient than other
modes of transport. Using the train is therefore an environmentally friendly way
of traveling.
Apply Your Learning

By closely listening to your customer, you can find ways to promote a train
journey. Your customers may have decided to travel a fixed route. Offering
these customers alternative rail routes can give you that extra advantage as a
travel professional. Remember that there is no need to always travel by train;
buses and planes have their advantages as well.
Study Check 5.1
1. All airports have a railway station. TRUE or FALSE?

(a) True
(b) False
2. There are more than 5,000 railway stations in Germany. TRUE or FALSE?
(a) True
(b) False
3. An increasing number of people are using Amtrak's ‘North East Corridor’

trains. TRUE or FALSE?
(a) True
(b) False

4. Which mode of transportation produces lower carbon emissions, therefore

reducing harm to the environment?
(a) Trains
(b) Cars
(c) Airplanes
(d) Buses
5. The Channel Tunnel links Great Britain with Norway. TRUE or FALSE?
(a) True
(b) False
5.1.5 Unit Summary

This unit explained that different travelers have different needs. These needs
can often be met by taking a train. It also looked at some differences between
train travel and other modes (Units 5.1.1 and 5.1.2). The reasons for the
increased popularity of rail travel were explained (Unit 5.1.3). Finally, you
learned that rail travel has a less harmful effect on the environment than some
other modes (Unit 5.1.4). Consequently, you can now highlight key advantages
of train travel to your customers.

5.2 Rail Products Around the World
• Identify different types of rail service.

• Identify several notable rail products throughout the world (Units 5.2.1 to
5.2.4).
• Differentiate between fast trains and local trains (Unit 5.2.5).
Unit Learning • Explain how trains are referred to by name or number (Unit 5.2.6).
Objectives
• Distinguish special trains from regular rail network trains (Unit 5.2.7).
5.2.0 Unit Overview
Since the 1980s there has been a new era of building railway lines, especially
high-speed lines. These are built for modern trains traveling at high speeds.
They are more direct, missing out smaller towns and only connecting large
cities. Many rail networks today consist of a mixture of older lines and modern
high-speed lines. However, just because a line is old does not mean it is
always slow. While dedicated high-speed lines allow speeds of 300 km/h
(186 mph) or more, many of the original lines have been modernized and
upgraded to allow conventional trains to travel at good speeds, perhaps even
200 km/h (125 mph) in areas where the track does not have to bend around
mountains or follow rivers.
People travel for many different reasons. There can be many different types of
rail services on these rail networks. These can range from a ‘local’ train
stopping every few minutes at small village stations, to high-speed trains
linking major cities and traveling non-stop for several hours. In between there
may be a variety of other train types. For example, ‘Intercity’ trains only
stopping at larger towns. Then there may be ‘regional’ or ‘inter-regional’ trains
providing a service for smaller places, but not stopping at every station. Every
country differs, and gives different names to the various types of railway
service that it provides. It is therefore important to research the information
thoroughly, relating to the particular journey being made.
It is not possible to look at every different type of rail service. However this unit
gives some examples and mentions some of the more well-known types of
trains. In this module, names which refer to a specific train (rather than a
category or type of train) are shown in italics.
5.2.1 High-Speed Trains

New high-speed lines make rail travel very popular, especially in Western
Europe, Japan, China, Korea and Chinese Taipei. France, Germany, Belgium,
Italy and Spain built many miles of new high-speed lines.
High-speed trains typically travel at 300 km/h (186 mph) on these lines.
However, some of the latest lines are built for 350 km/h (220 mph) and speeds
could be even higher in the future. There have been some remarkable cuts in
journey times, leading to more people using the trains. In some countries, such
as France and Germany, high-speed trains leave the dedicated high-speed
lines and run on older conventional tracks to serve towns and cities which are
not directly situated on the new lines. For part of their journey they may
therefore be running at quite low speeds, especially in hilly or mountainous
areas, or if the track has to follow the bends of a river. This way, many
additional towns can be part of the high-speed network, even if the highest
speeds are only achieved when the train is on the high-speed line.
Unit 5.2: Rail Products Around the World 439

Japan was the first country to build high-speed lines, and its ‘Shinkansen’
network now links most major cities in Japan. Shinkansen literally means “new
main line” but the name is often used to refer to the trains as well. Around the
world the trains are also known as ‘Bullet Trains’. The world's busiest high-
speed line is the Tokaido Shinkansen, linking Tokyo with Osaka. Before the
line was started in 1964, it took six hours and 40 minutes to travel by train
between the two cities. Today it takes two hours 40 minutes and the line carries
over 150 million passengers each year.
French Railways in France built its first high-speed line (TGV) between Paris
and Lyon in 1981. Its TGV trains now run on several high-speed lines. TGV
stands for “Train à Grande Vitesse”, meaning “high-speed train”. As well as
running on the new lines, TGV trains also run on regular lines to serve most
parts of France. They also run on international routes from France to Germany,
Switzerland and Spain. French Railways are slowly changing the name of TGV
trains to 'InOui'. Just as airline companies, it also created a network of low-cost
high-speed rail services marketed as 'Ouigo'.
Figure 5.2.1—Regular second class seats on high-speed trains in Japan, France

and Germany provide plenty of comfort
An important international high-speed line links London with Paris, Amsterdam

and Brussels through the Channel Tunnel. It takes only two hours and
15 minutes to travel between London and Paris. The trains are called ‘Eurostar’
trains after the company that runs them.
There is also a high-speed line from Paris to Brussels, continuing to
Amsterdam in the Netherlands and Cologne in Germany. The trains on this line
are known as ‘Thalys’ trains. Several international services in Europe have
special names like this; often they are operated by different companies to the
national services which only run in one country.
Germany is another European country where high-speed rail travel is very
important. The sleek Intercity-Express (ICE) trains link most of the major cities,
often using newly built high-speed lines. ICE operates a high speed train
between Berlin and Munich, traveling over 600 km in less than four hours.
In Italy, the fastest trains are called AV or Alta Velocità, which means “high-
speed”. Rome and Milan, Italy's two biggest cities are linked in just three hours
over a distance of nearly 600 km.
Spain's best high-speed trains are called AVE, which stands for “Alta Velocidad
Española” (Spanish high-speed). The first new line linked the capital Madrid
with Seville, but the most important line (completed in 2008) runs between
Madrid and the second largest city, Barcelona. The best trains take only two
hours 30 minutes for the 621 km journey. In 2010 a new line opened from
Madrid to València, cutting the journey time from three hours 30 minutes to just
one hour 35 minutes.

China's has the world's largest and longest high-speed network in the world,
with 25,000 km of new lines and a 2000 km service between Beijing and
Shenzhen, reducing travel time by more than 50%. A line extension to Hong
Kong is being built.
Key Learning Point

Many countries have invested in building new high-speed rail lines and trains to
reduce travel time and increase the demand for passenger rail services.
5.2.2 High-Speed Trains on Upgraded Lines

Many modern ‘high-speed’ trains do not run on newly built lines at all, but run at
good speeds on existing track. An example is the ‘Acela Express’ which is a
frequent service from Boston to Washington DC via New York running at
speeds of up to 240 km/h (150 mph).
An example in Europe is the ‘Railjet’, a type of high-speed train running on
regular track in Austria and the Czech Republic.
Several routes use tilting trains, often known as ‘Pendolino’ trains, from the
Italian word meaning to tilt. This enables them to go round corners at higher
speeds than conventional trains. Examples include the X2000 in Sweden, Alfa
Pendular (AP) in Portugal, and SuperCity (SC) in the Czech Republic.
Some railway organizations define high-speed trains as those which run at
200 km/h (125 mph) or more. By this definition it also includes the London to
Edinburgh line in the United Kingdom. This is the line of the famous ‘Flying
Scotsman’ train.
A new Florida (USA) high speed service named 'Brightline' will link Miami and
Orlando.
5.2.3 Long-Distance Trains

Some railway networks are very large. The Indian railway system, for example,
has over 64,000 km of track and over 7,000 stations. The best daytime trains
are known as ‘Shatabdi’ services, while ‘Rajdhani’ trains travel longer distances
overnight. There are several other train categories for slower services.
In Australia the Indian Pacific, which runs between Sydney and Perth, takes
more than two and a half days. It includes the longest stretch of railway without
a curve (478 km or 297 miles) as it crosses the Nullarbor Plain. Even longer is
a journey on the Trans-Siberian Railway, starting in Moscow and finishing in
Vladivostok. This takes eight days and covers 9,259 km. As well as high-speed
lines, China has also built a notable new line to Lhasa in Tibet, one of the
highest cities in the world, located at 3,600 metres above sea level. It is now
possible to catch through trains from both Beijing and Shanghai to Lhasa. The
3,757 km journey from Beijing takes around 41 hours.
To travel long distances in style, why not try the 4,500 km journey between
Toronto and Vancouver on the Canadian, which takes three days and four
nights. There are some famous long-distance trains in the USA as well;
including the Coast Starlight that operates the 2,200 km from Seattle to Los
Angeles along the west coast of America, or the Lake Shore Limited from New
York to Chicago.

Figure 5.2.2—Amtrak's New York to Chicago “Lake Shore Limited” train, with
traditional dining car
The most diverse services can certainly be found in Europe, where there is a
very dense network, even across international borders. In mountainous areas
such as the Alps, there are many scenic railway lines, and trains with names
like Glacier Express.
In countries with high-speed or upgraded rail lines, you may be presented with
a choice. As well as the high-speed route, there may be an alternative train
using a longer route. The slower route may allow the use of rail passes,
whereas the high-speed route may require a higher fare to be paid. In
mountainous areas high-speed lines tend to have many tunnels, so your
customer may prefer to travel on the slower route because it is more scenic.
On some routes, particularly in Europe, you may also have a choice of a day
train or a night train. Traveling overnight can save time. You can sleep while
you are traveling, arriving at your destination with the whole day ahead of you.
Of course, for very long journeys it will be necessary to travel overnight
anyway.
5.2.4 Eurocity, Nightjet and Intercity Trains

Having so many different types of train can be confusing. Generally each
country uses different names for each ‘category’ of train. However, Eurocity
(EC) and Nightjet are two categories of train used for international services in
several different European countries. Even though they run on conventional
lines rather than high-speed lines, they have to meet certain standards of
speed and comfort. For example, EC trains have food available on board for
most of the journey. Many international routes are now served by high-speed
trains, but there are still some important Eurocity routes, like
Berlin–Prague–Budapest, or Vienna–Zagreb.
Austrian Railways has a new network of night services called 'Nightjet', mainly
serving destinations in Austria, Germany, Italy and Switzerland
(www.nightjet.com).
Intercity (IC) is a train category used by many countries for good quality
domestic (non-international) trains running on conventional (not high-speed)
lines. Often the same type of train is used as on Eurocity services. The only
difference is that EC trains cross international borders.

Figure 5.2.3—Typical second class seating areas on Intercity trains
Key Learning Point

There is no need to always take a high-speed train or a train with a famous or
popular name. Plenty of ordinary trains also offer excellent service to the
customer.
5.2.5 Regional and Local Trains

On busy networks, such as those found in Europe, different categories of train
often run on the same lines. The terms local train, stopping train, or slow train
are often used for trains which call (stop) at smaller stations. Such trains may
nevertheless cover quite long distances, taking much longer to cover the
journey than the fast trains. Where there is a choice, take care to check the
overall journey time, as one train may be much slower than another. On minor
branch lines, it is likely that all trains will call at all stations.
Sometimes there are trains which do not call at every station, but which serve
more places than fast trains. Such trains are sometimes referred to as semi-
fast or regional trains. In some countries they are even given an official
category, for example IR in Switzerland (meaning InterRegio) or RE in
Germany (meaning Regional Express). Your customer may need to use this
type of train if the fast trains do not stop at their station, or if there is no fast
train at the required time. If it is not a major route, this type of train may be the
best available.
Trains which link a city with its surrounding area are often called suburban or
commuter trains. They are busiest at times when people are traveling to and
from work, known as rush-hour or peak-hour. Local rail systems in cities are
often partly underground, like the London Underground or Paris Metro. The
word ‘metro’ (from ‘metropolitan’ meaning a big city) is often used to describe
urban (city) rail systems. They are normally operated by different companies to
the long-distance services. Operators of urban rail services are often respon-
sible for local bus services too.
Travel agents are normally concerned with longer journeys. However, remem-
ber that even a passenger making a long journey may need to get to a different
part of the city after arrival. A local or metro train may be required for the
passenger to reach the city center or central business district from the long-
distance railway station. If there is more than one station serving long-distance
trains in the city, local transport between them may be required. Many airports
are served by metro or urban rail services.

Figure 5.2.4—Local trains–an important part of the railway system
Key Learning Point

To research a passenger's journey, it may be necessary to obtain information
from different sources, especially if part of the journey is within a large city.
5.2.6 Which Train is that?

Many popular and important trains have a ‘train name’. Another example is the
Metropol, the night train running between Prague and Budapest, linking the
capital cities of the Czech Republic and Hungary. The names always apply in
both directions, so it is still necessary to identify a specific departure. Each train
therefore has a train number. As the Metropol is a EuroNight service, the letters
EN appear as part of the train number (the Metropol is EN476 in one direction
and EN477 in the other).
Figure 5.2.5—A typical electronic station departure indicator, displaying train

category, train number, delays (“+10”) and platform numbers
Many trains require advance reservation of seats or sleeping accommodation.

Train numbers are therefore very important for making reservations. You will
see some of these train numbers when looking at timetables in Units 5.3 and
5.5. If reservations cannot be made (for example on a local train), then the train
number is not so important, and is often omitted in timetables.
A few countries do not use train numbers in timetables available to the public.
An example is Great Britain. Here trains are referred to by their departure
time, for example “the 17.00 hours departure from London Kings Cross to
Edinburgh”.

Key Learning Point

Even if a train has a name, the train number identifies the exact train. The train
number is especially important to make a seat reservation, or a reservation for
sleeping accommodation on a night train.
5.2.7 Special Luxury Trains and Tourist Lines

In this module the focus is on regular trains that appear in timetables and that
can be travelled on using normal tickets. Across the world there are a small
number of special luxury trains which provide a unique travel experience,
rather like a cruise on rails (they are sometimes called luxury cruise trains).
People travel on them for the experience rather than to reach a destination.
Traveling on them is often a once-in-a-lifetime experience, perhaps to
celebrate a special event. They may run as day excursion trains, or they may
run over several days with passengers sleeping in hotels or on the train. Such
trains are normally run by specialist operators, and of course normal rail tickets
cannot be used!
Although there are only a small number of such luxury trains, they have well-
known names like Venice Simplon-Orient Express, South Africa's Blue Train,
or India's Palace on Wheels.
There are many other railway services which do not form part of the normal
national rail networks. Some are heritage or museum lines, where rail
enthusiasts have reopened a former railway line to run trains for tourists,
sometimes with old fashioned steam trains. Other lines may be in mountainous
areas, such as the Washington Cog Railway in the USA or the ‘Mer de Glace’
mountain railway in France. For various reasons, these railways have
remained separate from the main railway networks. To find out more about
them, you would have to look at websites or brochures covering the individual
lines. There are also websites which specialize in describing such lines over a
whole region or country.
Car-carrying or ‘Motorail’ trains are another type of special train. Motor vehicles
are loaded onto special rail cars, and the passengers sleep on board the train.
Some passengers drop off their vehicle at the Motorail, ride a regular train to
their destination and pick up their motor vehicle at destination.
Key Learning Point

Special luxury and tourist trains are not part of the regular railway network,
although they sometimes travel the same routes as regular trains. Luxury
cruise trains are normally sold through specialist agents or directly with the
operator by telephone or on the Internet.
Apply Your Learning

It is important to find out what the customer is expecting from their journey. Do
they want to get to their destination as quickly as possible? Are they prepared
to pay more for a fast journey? Would they prefer a slower journey to see more
scenery? Also, if there is a choice, do they want to travel overnight or during
the day? By finding out the answers to these questions, you will be able to
suggest the most appropriate rail services to meet your customers' needs.

Study Check 5.2
This table lists the names of train services discussed in Units 5.2.1 to 5.2.3.
Complete the table by identifying the principal country where each train runs,
and the type of service it provides (high-speed or long distance).
Name of train service Country High-speed or long distance
1 Acela Express
2 Alfa Pendular
3 Alta Velocidad Española
4 Alta Velocità
5 Canadian
6 Coast Starlight
7 Glacier Express
8 Indian Pacific
9 Intercity-Express
10 Railjet
11 Rajdhani
12 Shatabdi
13 Shinkansen
14 SuperCity
15 TGV
16 Trans-Siberian
17 X2000
5.2.8 Unit Summary

This unit offered some basic information about different types of rail service
throughout the world. It introduced high-speed trains (Units 5.2.1 and 5.2.2)
and some well-known long-distance trains (Units 5.2.3 and 5.2.4). It also
described trains of a more local nature (Unit 5.2.5) and how different trains are
referred to by names and numbers (Unit 5.2.6). Finally it was pointed out that
there are some special types of train that do not form part of the normal railway
networks (Unit 5.2.7).

5.3 Finding Train Times Online
• Enter information into an Internet journey planner (Unit 5.3.1).

• Interpret journey planner search results (Unit 5.3.2).
• Find specific train details to meet a customer's needs (Unit 5.3.3).
• Define the limitations of using a journey planner (Unit 5.3.4).
Unit Learning
Objectives • Look for other useful information on the Internet (Unit 5.3.5).
When browsing the Internet, you could find just about everything there is to
know about railways and train journeys. There are photographs, maps, reviews
from passengers, rail enthusiast websites, and a huge amount of information
about timetables and fares. Information is not only online. At the railway station
or travel agency you may find timetable posters, leaflets, brochures, perhaps
even a whole book of timetables. So where do you start?
To find where trains run, and at what times, you need a timetable, most of
which can be found in journey planners on the Internet.
Journey planners are a computerized form of timetable found on most railway
company websites. They are a quick way to find specific journey details. The
passenger or agent types important details, like the start and end points, and
the date of the journey. The website looks at all the train times in its ‘database’
(its store of information on a computer system) and works out the best train
times to show.
Journey planners are not the only way of finding train times. In Unit 5.5 you find
more traditional forms of ‘tabular’ timetable, so called because they have rows
and columns laid out in a ‘table’ (hence the word ‘timetable’). These may be on
the Internet, or they may be in printed form.
5.3.1 Using a Journey Planner

Let's try a typical Internet journey planner to find information about a train
journey in Europe. This particular website is run by German Railways, also
known as Deutsche Bahn or just DB. Fortunately, it includes data for most
countries in Europe, not just Germany. It is widely regarded as a good online
resource for European train times. The web address www.bahn.de/en will take
you to the English version of the full journey planner, as shown in our
examples. DB's main website homepage www.bahn.de has a cut-down
version.
Take for example an international journey–Paris in France to Cologne in
Germany. The journey also runs through a third country, Belgium. Cologne is
the English name for the famous cathedral city of Köln. This journey planner
allows us to type in either the English name or the German name. Below look
at each step required to enter the information into the journey planner. Each
item has been tagged with numbers for easy identification.
With Internet access you can easily try it yourself. Experiment with as many
different journeys as you like. It will not cost anything, unless you enter
payment details and actually buy a ticket! You may not get the same results as
in these examples, as timetables change at least once a year. Also, many
trains run on certain days or dates only, and will only appear in the search
results if they run on the date you have selected.
Unit 5.3: Finding Train Times Online 447

Figure 5.3.1—DB journey planner–making a timetable enquiry
1. First enter the name of the station where the journey starts. When typing, a
list of suggested stations appear. Click on the one you need. Where there
is more than one station in a big city, there might be many stations listed. If
you do not know which one to choose, select the name of the city in
CAPITAL letters (like PARIS above). Later, upon clicking on ‘Search’, the
computer will select the most appropriate station automatically.
2. In the same way, enter the name of the destination station, where the
passenger is traveling to. Notice that for both the start and destination
stations, this system allows you to click on ‘Address’ instead of
‘Station/Stop’. That means you can enter a street address (at least for
German cities) and it will include details of local public transport. Even the
time taken to walk to a station may be included. The ‘POI’ option means
you may be able to select a ‘point of interest’, like the name of a sports
venue or famous building.
3. Clicking ‘Enter stopovers’ triggers another box to enter the name of a
station that the customer may want to visit (or travel through) before
reaching the destination. It is possible to add a second stopover place as
well. A box will appear to enter the length of a desired stopover in hours
and minutes. If left blank the system will assume that the passenger will
stay on the same train. This can be useful if you want a journey that goes
along a particular route.

4. A single (one-way) journey is selected automatically. Change this to

‘outward and return journey’ for an outbound and inbound (round trip)
journey.
5. The current date and time are initially displayed. Dates are in the standard
European format of day/month/year. In our example the digits showing the
year have been replaced with “xx”. Now you have several options. For the
date you can click on the calendar icon which appears between the date
and time, and select the date from the calendar. Alternatively you can
change the displayed date one day at a time by clicking on the arrows. The
time will similarly change one hour at a time. You can also click directly into
the date or time boxes to edit what is displayed. Have you noticed you can
change ‘departure’ to ‘arrival’? That means it will show trains which arrive
close to the selected time, rather than trains which depart close to that
time.
6. To refine our search, check further options. Because this particular journey
planner is produced by German Railways, it gives the option to omit the
more expensive German Intercity-Express (ICE) trains from the search by
clicking on ‘all without ICE’. The ‘advanced selection’ allows you to include
or exclude various types of train from the search (such as local ‘S-Bahn’
trains), and even buses and ferries.
7. The ‘duration of transfer’ applies only if a change of train is necessary
during the journey. As standard it will give the shortest allowable
connection time. However, it is often a good idea to give your customer a
longer time to change trains. This is especially true if they are infirm or
have a lot of luggage to carry. Or you could maybe give them time for a
coffee or a meal to break up a long journey. You can change the ‘duration
of transfer’ by clicking the arrow. There are options like ‘at least 10 minutes’
right up to ‘at least 45 minutes’.
8. Enter the number of travelers here. This is only important if you are
interested in fares or booking tickets. You can change the number of adults
and also add children. Where it says ‘no reduction’ you can change this if
the passenger already has a special discount card, such as the German
‘BahnCard’.
9. Second class is selected automatically, but you can change this to first
class. To find out more about classes of travel, see Unit 5.4.
10. Finally, click on ‘Search’ to find the results of your query. The next example
shows how that might look. To start all over again instead of seeing the
results click on ‘reset query’. In the example two further options that appear
on this website have not been shown. The first is ‘reservation for seat only’
for people who already have a ticket to travel but only want to make a seat
reservation. The final option is ‘only show connections that allow carriage
of bicycles’.
Key Learning Point

To obtain train times from an Internet journey planner, you need to select a
specific date and approximate time.

5.3.2 The Results of a Timetable Query

After clicking on “Search” the results of our timetable enquiry from Paris to
Cologne, using the DB journey planner are shown. (See Figure 5.3.2). The
computer has displayed a number of suitable trains which run on the date and
approximately at the time selected earlier. There is not much that can be
changed at this stage, but it gives basic information to help choose which
journey to select to find out more details.
Figure 5.3.2—DB journey planner–results of a timetable query
1. What can be changed, however, is the order in which the journeys are
presented. Normally these are listed in order of departure time. You can
click the arrow to see further options. ‘Arrival’ will put them in order of
arrival, and ‘Duration’ will put the fastest journey at the top. A further option
is ‘Changes’ which shows journeys with the least number of changes first.
2. If the suggested selection of trains is not to your satisfaction, you can click
on ‘Earlier’ or ‘Later’ to see if there are better journey options a little earlier
or later than the time originally selected.
3. Originally if you just entered ‘PARIS’ the computer knows that trains from
Paris to Cologne leave from the station Paris Nord, so the correct station
name is now shown here. The computer has also changed ‘COLOGNE’ to
the actual name of the railway station, Köln Hbf. ‘Hauptbahnhof’ (abbrevi-
ated to ‘Hbf’) means main station in German.
4. The column headed ‘Chg’ shows the number of times that the passenger
would have to change trains. You will notice that the journey at 17:55 from
Paris has ‘0’ changes, so it is a through train without the need to change
trains during the course of the journey.
5. This shows the journey time in hours and minutes (from start to finish). The
journey with no changes also happens to be the fastest in this particular
case.

6. This shows the type of train and reservation details. ‘THA’ is short for
‘Thalys’. More details will be found on the next screen upon choosing
preferred journey. All three of the displayed journeys have an ‘R’ in a circle
meaning that reservation is compulsory.
Figure 5.3.3—The Paris to Cologne ‘Thalys’ train, with second class and first
class seats
7. This journey planner will show a fare and allow the purchase of a ticket for
certain journeys. Notice that one of the journeys has the “Purchase” option
to buy a ticket. However, this is the journey planner of German Railways
(DB), and so it will only show fares if the journey is contained in DB's own
computerized booking system. For other journeys it will say ‘Fares not
available’. Finding a train time in Europe is much easier than finding a fare
or actually buying a ticket. If a fare is displayed, it will be the total fare for
the number of passengers selected earlier.
8. Having enough information for our customer you now know there is a
through train from Paris Nord to Köln Hbf at 17.55, which needs to be
reserved in advance. You can find out more information by clicking on the
arrow next to the journey. Clicking on as many of the arrows as you like
expands the information shown for individual journeys. If the customer
would prefer the earlier train at 16.52, you would definitely need to click on
the arrow to show more detail. That is because that particular journey
requires a change of train. The extra detail will show where to change
trains, and the arrival and departure times at the station where the change
takes place. Assuming that, the customer would like further details of the
through train at 17.55, you can click on the arrow next to that train.
Key Learning Point

The result of the timetable query may not give the best results for our customer.
Click on “Earlier” and “Later” to see if there are more suitable trains at a
different time.
5.3.3 Interpreting the Train Details

The 17.55 journey from Paris was selected, because it suits the customer's
wishes. More detail about that journey now appears on the screen, as shown in
Figure 5.3.4. Because it is a through train with no changes, only one train is
shown.

Figure 5.3.4—DB journey planner–individual journey details
1. For this example after clicking on ‘Show intermediate stops’ the ensuing
display includes the three stations between Paris and Cologne where the
train also calls. If you were now to click on ‘Hide intermediate stops’, only
the first and last stations would be shown (Paris and Köln).
2. Where platform (track) numbers are known, these are given as well. Note
that the platform number at Paris Nord is not shown, so you need to advise
the customer to check the departure board at the station to find the correct
platform. In any case, it is always good to check at the station itself, as
trains are sometimes directed to a different platform at the last minute,
especially if there are delays.
3. Here is the train number. Clicking on the train number gives the complete
schedule for that train from start to finish. For example, some trains from
Paris to Cologne continue to Essen. Clicking on the train number would
show the times of that particular train at every station that it calls at, right
through to Essen.
4. There is a lot of helpful information here. As well as getting advice that the
reservation is compulsory it says ‘Global price’. That means the train has a
special fare which includes the reservation fee. As Thalys trains cannot be
booked using this journey planner, it gives you a website and telephone
number for bookings.
5. These are the dates when these particular timings apply. The train might
run on other dates as well, but in different timings (timings can vary on
different days of the week, for example).
6. In its journey from France to Germany through Belgium, this train crosses
two international borders, and these are named here. Because all three
countries have signed an agreement called the ‘Schengen’ agreement,
there are no passport controls. Your customer is unlikely to even notice
when the train crosses these borders!
7. If you click on “At the train station” you can find all sorts of useful
information about facilities at the larger stations on the journey. For
example, it tells you the street address of the station Köln Hbf, and the
hours of opening of the travel center where you can buy tickets. It also tells

you that there are lockers for left luggage, bicycle parking spaces, and
much more. There is even a plan of the station and the telephone number
of a taxi company!
8. Clicking on “Show map” will display a very basic map of the journey.
Can you take a scenic route?
In Unit 5.3.2 it is mentioned that entering a ‘stopover’ station can be useful if
the passenger wants to take a particular route. Suppose that the passenger
wants to continue (on a different day) from Cologne to Frankfurt am Main, one
of Germany's biggest cities. The preference is to take a very scenic line that
follows the River Rhine. Looking at an atlas you see that the scenic line goes
through the city of Koblenz. Adding “Koblenz” as a stopover station means that
the passenger can get a through train to the destination via Koblenz. Without
the stopover station a quicker but much less scenic high-speed line will be
displayed. Remember that a ‘stopover’ does not mean the passenger has to
leave the train; it is simply treated as a point on the route.
You have now unlocked the key to finding information about thousands of
trains in Europe, and about the stations too.
Figure 5.3.5—The Köln Hauptbahnhof station in Cologne, its computerized left

luggage facility where passenger bags are stored underground, and the station
lounge for passengers with first class tickets
Most railway companies have their own journey planners. The general
principles are the same, even for rail services outside Europe. Once you have
mastered the DB journey planner you should be able to use most of the others
(some are listed in Unit 5.3.6). Many have the option to display in different
languages. Remember that the DB journey planner has most European train
times in it, so if you need train times for Europe it may be all you need.
Key Learning Point

Most railway company websites have journey planners. Take care to find out
what data it contains. It may be for one railway company, for a whole country,
or for several different countries.
5.3.4 Check the Journey on a Map

Can you be confident about the information you obtain from a journey planner?
Remember that the computer can only display the information it has in its
database. If that information is incomplete, you may get incorrect results. If you
are not familiar with the geography of the journey, it is a good idea to look at a
good map or atlas. If the journey seems indirect on the map, maybe there is a
better route for your customer.

Using the train for the whole journey from beginning to end may not be the best
solution. A quicker journey may be possible by using a bus or taxi for part of the
journey. The journey planner may not have details of buses or taxis (or even
some trains) and therefore may give you a longer journey than necessary.
Be aware that many place names have different spellings. The reason can be
that the place name in its original version is written with different letters or
symbols than the one used in the atlas. There are also different spellings in
different languages, although they use the same type of letters. Moreover
some editors use the original names while others may opt for, say, the English
version of a place name.
5.3.5 Useful Websites

Here are some other official railway company websites you can explore:
• Eurostar: www.eurostar.com
• Thalys: www.thalys.com
• French Railways: www.sncf.fr
• Indian Railways: www.indianrail.gov.in
• Amtrak (USA): www.amtrak.com
• VIA Rail (Canada): www.viarail.ca
• Great Southern Rail (Australia): www.railaustralia.com.au
• JR East (East Japan Railway Company): www.jreast.co.jp
The Eurail website (www.eurail.com) has a lot of useful information about trains
in Europe. Click on “Get Inspired” followed by “Trains in Europe” then on a train
type or individual country. Eurail passes are discussed in Unit 5.6.6.
An interesting unofficial website with a wealth of information and advice on rail
travel throughout the world is www.seat61.com. The author of this award
winning website has travelled extensively and passes on his knowledge
through the website to anyone wanting to find out about rail travel. You can find
many more websites containing rail information by using an Internet search
engine.
Key Learning Point

There are many useful websites available with a vast amount of different
information. It can be difficult to find the most appropriate website for the
information you require. It is helpful to also refer to a map when planning rail
journeys.
Apply Your Learning

Using an Internet journey planner can be a quick and easy way to find train
times. If the customer has not decided on an exact date of travel, you can only
give him approximate information, by choosing a random date. Using buses
and taxis for part of a trip can sometimes make a journey much shorter, so
understand the limitations of journey planners and always research the journey
using a map. The computer has a huge amount of information, but it is your job
to make sure that the answers it gives are sensible ones.

Study Check 5.3
1. Rail travel between Paris and Cologne always requires a change of train.
TRUE or FALSE?
(a) True
(b) False
2. Internet journey planners show train times for a specific date. TRUE or
FALSE?
(a) True
(b) False
3. Internet journey planners provide fares.

(a) always
(b) sometimes
(c) never
4. The BahnCard is a frequent traveler discount card offering reduced rail

fares to card holders. TRUE or FALSE?
(a) True
(b) False
5. Internet journey planners show the platform (track) number

that the train is scheduled to depart from.
(a) always
(b) sometimes
(c) never
5.3.6 Unit Summary

This unit describes a typical Internet journey planner to find details of a train
journey (Units 5.3.1 to 5.3.3). Journey planners do not always give the best
results if the journey is not checked on a map (Unit 5.3.4). Finally, there are
many other useful websites that offer interesting information on rail travel.
(Unit 5.3.5).

5.4 On Board the Train
• Provide basic information about classes of travel (Unit 5.4.1).

• Advise customers on sleeping accommodation on board night trains
(Unit 5.4.2).
• Identify trains that have through carriages to different destinations
Objectives • Identify different types of catering service on board trains (Unit 5.4.4).
By completing this Unit, • Look for other special facilities on board (Unit 5.4.5).
5.4.0 Unit Overview

So far you have looked at the advantages of train travel, different types of
trains, and how to find specific train times using an Internet journey planner.
When a particular train is decided, there are still other decisions to be made.
What sort of accommodation is there on the train? What sort of ticket will the
customer need? Will there be food and drink available? Your customer may be
an experienced traveler and may tell you his preferences. Other customers
may require your advice.
5.4.1 Classes of Travel

The majority of trains offer a choice of seat accommodations. Local or
suburban trains are an exception, but even these sometimes have two classes.
The normal and most common type of accommodation is called Second Class
(2nd) or Standard Class. In the USA it is called Coach Class, and in Russia it is
called kupé or Hard Class. Some other terms used are Tourist Class, Economy
Class and Ordinary Class.
First Class (1st) is for passengers who are prepared to pay more for their ticket
to get a more comfortable seat and extra amenities (services). It may also be
called Business or Premium Class. There is sometimes an additional class that
gives the extra comfort of First Class, but without some of the perks (such as a
full meal or the use of the First Class lounges found at some railway stations).
For example Eurostar trains have three classes: Standard, Standard Premier,
and Business Premier. Railjet trains have Economy, First, and Business, each
with different types of seat. In the USA some trains have Business class, which
is cheaper than First Class. In Russia first class is sometimes called Soft Class.
Figure 5.4.1—Railjet trains have three classes of travel: Economy, First and
Business
In some countries there may also be low-cost seating of a rather poor quality,
sometimes called Third Class. This is mainly used by the local population.
In extremely hot climates there may also be the option to pay more to travel in

air-conditioned carriages. Some trains offer a Luxury Class which provides an

even higher standard of service than First. Worldwide there are many more
options than what is mentioned here. In India, for example, there are eight
classes of travel including those available on overnight trains.
Key Learning Point

On most trains there are at least two classes, which offer different levels of
comfort. The fare for the journey depends on the chosen class of travel.
5.4.2 Sleeping Accommodation

Daytime trains usually offer more than one class of travel. Night trains also
offer different options. The most comfortable option is in a Sleeping compart-
ment (a ‘sleeper’), which offers something like a proper bed. In Europe there
may be one, two or three people in the compartment (some have four),
depending on how much the customer is prepared to pay. They are ideal for
family members traveling together. The best compartments have toilets and
showers, otherwise toilets are at the end of the rail car's corridor.
A less expensive option in Europe is a Couchette which is like a bunk bed: two
beds, one on top of the other. There are usually four or six people in a
compartment, and you will often be sharing with strangers (of both genders). A
bed sheet and a blanket are provided.
Outside Europe the types of sleeping accommodation available varies widely.
Sometimes there are separate compartments and sometimes the carriages are
open-plan, with bunks both sides of the corridor. They may be separated only
by curtains.
Reclining seats are another option on some night trains. Whatever option the
passenger chooses, there is an extra charge to pay called a supplement.
However, some night trains (for example in Eastern Europe) include ordinary
carriages with seats, for which no supplement is charged.
Figure 5.4.2—Night trains can save time, as passengers sleep while traveling
Unit 5.4: On Board the Train 457

5.4.3 ‘Through Cars’ for Different Destinations

A ‘through train’ is one which takes you to your destination without the need to
change at an intermediate station. Sometimes, a section of rail cars may be
detached or separated somewhere along the route and attached to a train
going somewhere else. These are known as ‘through carriages’ or ‘through
cars’. This happens a lot in Europe, particularly with night trains.
For example, consider the train named Slovakia just before it leaves Prague in
the Czech Republic. When walking along the platform carriages for three
different destinations in Slovakia and Poland can be seen. There are sleeping
cars going to all three destinations, plus couchette and ordinary seats cars for
two of the destinations. You know where each set of rail cars is going because
they carry a sign showing their origin and destination.
Sometimes trains traveling by day also have carriages for different desti-
nations. Passengers with advance reservations will be assigned seats in the
correct part of the train. Passengers without reservations need to make sure
they read the signs and travel in the correct rail car. Even modern high-speed
trains may go to two different destinations, dividing at a station along the route.
In France, for example, it is quite common for two TGV trains to be joined
together for part of the journey, and later separated, each going to a different
destination.
Key Learning Point

A through train is one that takes passengers from their origin to their
destination without changing trains in between. Sometimes, a section of the
train (a ‘through car’) will separate to join another train somewhere between the
origin and destination, but passengers do not themselves need to disembark
from the train.
5.4.4 Are there Meals on Board?

This is quite often a difficult question to answer. Most long-distance or better
quality trains will sell food or beverages, called “catering”. The traditional dining
car with waiter service is uncommon. Full meals may only be available to
people with First Class or Business tickets. More common are buffet cars,
bistros or bars where passengers buy snacks and drinks, and there may be a
limited choice of hot food. Sometimes there may just be a small shop or kiosk
(or even a vending machine) where passengers can purchase snacks to take
back to their seats. Also common are trolleys which are wheeled through the
train selling hot and cold drinks and a small range of snacks.
Looking at timetables in Unit 5.5 you will see that many railways use symbols in
their timetables to show which trains have food and drink. A symbol which
looks like a knife and fork means that hot food is available. A symbol that looks
like a glass or a cup means that snacks and refreshments are available, either
in a buffet or bar car, or from a trolley wheeled through the train. The type of
catering service available varies from one railway company to another.
Whatever sort of catering is offered, it may not be available throughout the
journey or on every day of the week. Many railways do not provide detailed
information and it is difficult to give the customer accurate advice. If in doubt,
suggest taking their own food and drink for the journey.

Figure 5.4.3—Bistro, buffet and bar cars in a German ICE, a Swedish X2000, and a
Polish Intercity train
5.4.5 Special Facilities

Some passengers may have special requirements, particularly if they are
elderly or disabled. Some trains have special places for passengers in
wheelchairs. These are often located close to toilets with wide doors for
wheelchair access. It may be necessary to book in advance if your passenger
is in a wheelchair. Many railway companies have special telephone numbers
for arranging assistance for disabled passengers. Railway staff will meet the
passenger and assist them on and off the train, using a wheelchair ramp.
Timetables often show which trains are accessible by wheelchairs.
Facilities for carrying bicycles are also sometimes found on trains. However,
many trains do not accept bicycles unless they are folded. A baggage car is
sometimes available. However it is more normal for luggage to be stored on
overhead racks above the seats, or in racks at the end of rail cars. Previously, it
was mentioned that some trains include special play areas for children and
even conference compartments for businessmen. Some trains to northern
Sweden even have a small cinema car for movie-watching while traveling.
Key Learning Point

The type of facilities on board a train can vary considerably from country to
country and train to train. It is important to find out specific details from the
timetable or railway company website.
Apply Your Learning

Many railway company websites and timetables have detailed information
about the accommodation on board their trains, often with photographs. The
Seat 61 website (www.seat61.com) has many photographs taken on board
different types of train.
Unit 5.4: On Board the Train 459

Study Check 5.4
1. Eurostar trains have three classes of travel. TRUE or FALSE?

(a) True
(b) False
2. ‘Couchette’ is the highest quality of sleeping car in Europe. TRUE or

FALSE?
(a) True
(b) False
3. In the USA, the most expensive class of travel is Business Class. TRUE or
FALSE?
(a) True
(b) False
4. Some trains have dedicated areas to transport people in wheelchairs.

TRUE or FALSE?
(a) True
(b) False
5. Bicycles are never allowed on trains. TRUE or FALSE?

(a) True
(b) False
5.4.6 Unit Summary

This unit looked at the different classes of accommodation available on board
daytime trains (Unit 5.4.1). Night trains also offer different types of service with
a variety of sleeping compartments with regular or bunk beds (couchettes) or
reclining seats that turn into beds (Unit 5.4.2). You learned to identify through
carriages where passengers travel from origin to destination without changing
trains en route (Unit 5.4.3). Catering is generally available on long-distance and
better quality trains and different types of snacks and beverages are sold on
most trains (Section 5.4.4). Many trains provide facilities for passengers with
special needs such as wheelchair spaces and accessible toilets. Some trains
offer additional facilities such as special baggage cars for transporting bicycles,
play areas for children and business conference compartments (Unit 5.4.5).

5.5 More about Timetables
• Interpret information in a ‘tabular’ timetable (Unit 5.5.1).

• Define the differences between a timetable and a journey planner
(Unit 5.5.2).
• Identify how national or system timetables can be used (Unit 5.5.3).
Unit Learning • Describe the meaning of common timetable symbols (Unit 5.5.4).
Objectives
• Use and interpret the European Rail Timetable (Unit 5.5.5).
5.5.0 Unit Overview
In Unit 5.3 you examined how to use a journey planner on the Internet. In this
unit the more traditional type of timetable is examined. Unlike a journey
planner, the ‘tabular’ timetable has rows and columns. Most people would
simply call it a timetable.
In a tabular timetable, each row shows a railway station and each column
shows a different train. The stations are listed in the order that they are served
by the trains. This is the traditional way that timetables have been laid out since
the very early days of the railways in the 19th century.
Timetables may be in printed form, perhaps in a timetable brochure or a whole
book of timetables. They are also found on the Internet, often in the form of
‘PDF’ files which can be viewed on a computer screen or mobile phone. Such
files can also be downloaded onto a computer to be kept for later or printed out.
5.5.1 An Amtrak Timetable

Amtrak is the company that runs all long-distance trains in the USA. Some
services run for thousands of kilometers with one daily departure. There are
also a small number of more populated areas where Amtrak runs frequent train
services. One of these areas (or ‘corridors’) is in the US state of California.
Amtrak calls it the ‘Capitol Corridor’ service. It links the state's capital city,
Sacramento, with San Jose, a destination famous for its high-tech ‘silicon
valley’ computer companies. On the way it serves Oakland, where bus
connections are available, crossing the Bay Bridge to San Francisco.
Have a look at the extract from the ‘Capitol Corridor’ timetable (Figure 5.5.1) to
learn the basic principles of reading a tabular timetable. You can find the
complete timetable on the Amtrak website (www.amtrak.com) listed under
‘Timetables’ or ‘Routes’. Clicking on ‘Capital Corridor’ will display the timetable
as a PDF file, and you can save it to your computer like any other PDF file.
Online timetables can be updated at any time and the latest version of this
timetable on the Amtrak website may be different to our extract.
The very same timetable is available as a printed leaflet, which you might see
at stations or in travel agencies. It also appears as part of the ‘system
timetable’, a printed book showing all Amtrak services, which is particularly
useful for railway staff and agents.
Unit 5.5: More about Timetables 461

Figure 5.5.1—Part of Amtrak's Capitol Corridor timetable
Our extract shows the last eight trains of the day in the southbound direction.
These are shown leaving Sacramento from 10.10 a.m. until the last train at
9.10 p.m. The earlier morning trains are in a separate section of the timetable,
which is not shown here. Northbound trains do not appear in our extract either.
The train times look odd!
When looking at journey planners in Unit 5.3 notice the use of the 24-hour
clock, where 1 p.m. is 13.00 and 11 p.m. is 23.00. Most timetables use this
24-hour system. In the USA, however, timetables generally use the 12-hour
clock, using a.m. (morning) and p.m. (afternoon). In this Amtrak timetable each
time has ‘A’ against it, meaning a.m., or ‘P’ meaning p.m. In the example
above, this is explained in the ‘Symbols Key’ to the right of the table. To further
help the reader, p.m. times are shown in bold (darker) type.
What do the different colors or shading mean?
The blue or darker shaded columns show bus connections. Amtrak calls these
‘Thruway’ bus connections, and they are normally operated by buses with the
‘Amtrak’ name on the side. They form part of the Amtrak network, so you can
buy through tickets which include a bus journey, as long as part of the journey
is on an Amtrak train. Many timetables show connecting trains or buses in italic
lettering.

How far is the journey?

Next to the station names you can see a column with distances in miles starting
at the place with a ‘0’. You could work out the distance from Sacramento to
San Jose, for example, by looking at the difference in the mileages (168 minus
35 equals 133 miles).
What does it tell me about the stations?
The column headed ‘Symbol’ next to the distance column describes facilities at
each station. In the Symbols Key on the right, a black circle indicates there is a
staffed ticket office and the wheelchair symbol means the station is wheelchair
accessible. This may be important information for your customer.
If you look at the table showing bus connections to San Francisco at the bottom
of the example, note that the Ferry Building is called the ‘Amtrak Station’. The
symbol tells you it has a staffed ticket office. Although it has no Amtrak trains,
only buses, it is the main Amtrak terminal in San Francisco (though a new
terminal is under construction). Look at the timetable to find where passengers
have to get off the train to catch the connecting bus to San Francisco.
So, each column of train times shows a particular train?
That's right. Timetables often have important information about each individual
train at the top of each column. Note that each train has a unique train number
at the very top of the column, for example “541”. This is important for the
passenger to be able to get on the right train. It is likely to appear on electronic
displays or boards in the station booking hall and on the platform. It may also
be important for making seat reservations. In the case of ‘Capitol Corridor’
trains, however, reservations are not required. The train offers unreserved
seating in ‘Coach’ class. A note at the bottom of the timetable extract tells us
that reservations are not required.
Do the trains run every day?
These particular trains run almost every day. Below the train numbers are
some holiday dates when the trains do not run. Many timetables use symbols
at the top of the column to indicate which days the train runs (see Unit 5.5.4).
Or there may be a footnote with a list of dates showing when the train runs or
does not run.
Can I get food and drink on board?
The final item at the top of the columns is labeled ‘On Board Service’. Notice
that two different symbols are used. These are explained elsewhere on the
timetable (not visible in the extract in Figure 5.5.1) but you might be able to
guess that the cup symbol refers to refreshments. Amtrak calls it a café,
serving sandwiches, snacks and beverages. The other symbol means that
Wi-Fi is available. This timetable provides useful information.
When is the next train?
Let's look at an actual train. Find train number 547–it leaves Sacramento at
5.40 p.m. and arrives in San Jose, the last call station, at 8.58 p.m. On the way
it calls at every station listed between Sacramento and San Jose. At Oakland it
gives both an arrival time (7.31 p.m.) and a departure time (7.33 p.m.). If only a
departure time is shown, you can assume that the arrival time is just a minute
or two before. Note that the 6.50 p.m. train from Sacramento (train 549) only
goes as far as Oakland Coliseum station (‘CA’ simply means California). From
Oakland there is a bus connection to San Jose arriving at 11.55 p.m. It is a bus
connection because of the green (darker) shading behind the time.

What about the small numbers in squares?

The 11.55 p.m. time at San Jose shown below train 549 is the bus connection.
Against it is the number ‘82’ in a small box. This refers you to another set of
footnotes (not shown in Figure 5.5.1). If you had the full timetable in front of
you, you would find that the explanation for code ‘82’ is that “buses depart two
minutes after the arrival of the train”. Code ‘81’ (shown against the bus
departure times from Emeryville in the lower table) has a similar meaning.
Small codes or footnotes like this are easy to miss, but they could be important.
For example the connecting train or bus might only run on certain days. Always
read the footnotes.
My customer does not know what time his meeting will finish.
Suppose a customer has a meeting in Sacramento that ends in the middle of
the afternoon to travel to Oakland afterwards. You can offer advise about
several trains available, leaving at 3.35, 4.40, 5.40 and 6.50 p.m. Advise that
the journey takes about two hours. If the customer wishes to stay late in
Sacramento, the last train back to Oakland is at 9.10 p.m. Because
reservations are not necessary, the ticket can be used for any seat on any of
these trains.
Figure 5.5.2—Emeryville station in California, where Amtrak passengers connect

to buses departing for San Francisco and a two-level Superliner rail car operating
in the Capitol Corridor
Try to find the full timetable on the Amtrak website (www.amtrak.com). You will
find all sorts of additional information, like a map, and details about baggage,
bicycles, quiet cars, connecting services, and the fact that smoking is
prohibited.
Key Learning Point

Timetables shown in ‘tabular’ form show the whole service from the beginning
of the day to the end of the day. It may be spread over several pages and
contain lots of additional information.
5.5.2 Journey Planner or Timetable?

If you tried to find the ‘Capitol Corridor’ timetable online, you may have noticed
that the Amtrak website also has a journey planner, like the Deutsche Bahn
example earlier. Like most railway websites, the journey planner is found on
the website's homepage or main page. A tabular style of timetable is shown for
the ‘Capital Corridor’ trains, but you can also find those same trains using
Amtrak's journey planner, similar to the European journey planner in Unit 5.3.

So why have two different ways to find the same information?

Think about the differences between using the journey planner and using the
tabular timetable. With the journey planner, a particular date and time need to
be specified. Only details of trains running on that specific date, and probably
only trains running for a certain period of time on that day can be seen. With the
tabular timetable, particularly with the whole printed leaflet or book available, a
great deal more information is presented all in one place. At a glance, you can
see how many trains run on the route, at what times, and on what days they do
or do not run. Immediately, the number of trains stopping at a particular station
and which have the best facilities (refreshments on board for example) become
obvious.
If you are referring to the timetable often, you become used to quickly finding
detailed information in it. To find all that information using the journey planner
would take numerous different searches. It is no coincidence that one of the
most popular timetable books in India, showing all the main trains in tabular
form, is called “Trains at a Glance” (it also appears on the Indian Railways
website).
What if you did not know about the Capitol Corridor trains?
Without knowing that the Amtrak service was called ‘Capitol Corridor’, more
time will be spent looking for the right leaflet or PDF file. In that case, it might
be quicker to start with the journey planner. After finding the name of the train
or service in an online journey planner, you then refer to the more detailed
leaflet, PDF or timetable book, to get an overall view of the services available.
Alternatively, the information from the journey planner might be all you need.
Many travel professionals like to use both types of information together. If both
sources agree (which they should), it confirms that the information is correct.
What if you do not even know what country the places are in?
A good atlas will help. There are also many online maps like Google maps or
OpenStreetMap (www.openstreetmap.org). Your favorite Internet search en-
gine can be most useful. When searching for “trains Sacramento to San
Francisco” you will soon find that the trains on this route are operated by
Amtrak in the USA and are called ‘Capitol Corridor’.
When else might a journey planner be more useful than a timetable?
There are other times when a journey planner is more useful. For example, the
journey planner may provide precise fares or sell tickets online. The infor-
mation in the journey planner could also be more up-to-date than other
sources. It may contain last minute changes to schedules due to diversions or
work being done on the track. This is another reason why travel professionals
use both types of timetable. Also, when schedules change, as they do at
certain times of year, a printed leaflet or book may not be as up-to-date as
Internet sources.
5.5.3 National Timetables

As aside from individual leaflets and PDF files, many countries produce a
complete book showing railway timetables for the whole country, or for a region
of the country. These are called national timetables or system timetables. As
well as timetables for the main national operator, they sometimes include other
local railway companies, perhaps even bus and ferry services too. Many
countries still produce these books in printed form, available to purchase from
main railway stations and sometimes bookshops. Smaller timetables may even
be free, and some may be obtainable by post.

Figure 5.5.3—A selection of national timetable books from Eastern Europe
Many national timetables are available to view online or download from the
railways' websites. This might be a single PDF file for a whole timetable book,
or it might be in smaller sections (or individual tables). Occasionally a railway
might have a printed book, but no facility to download its contents online.
How do I find the right table?
National timetables (whether printed or online) have features to help the reader
find the information they need. Each route is normally given a number called a
table number. There are usually maps, with the table numbers shown
alongside the routes. If you are familiar with the geography of a country, you
can quickly find the correct table by studying the maps.
Another useful feature is the ‘Index of Places’, which is placed at the front of
most timetable books. Places (cities or stations) are listed in alphabetical order,
with table numbers against each place name. The numbers show the tables
where you will find that particular station. If you are traveling between two
places, you can look them both up in the index. If the same number appears
against both places, you know there is a table showing the service between
them. It is often useful to look at the smaller place first, as larger cities may
have many different table numbers listed. If your journey requires more than
one table, the maps are usually the easiest way to find what you need.

Figure 5.5.4—Hungarian Railways Timetable book–extract from index and map
This extract from the timetable for Hungary shows an example. When looking
up Kaposvar in the index of places, you will see three table numbers listed
against it (35, 36 and 41). With this map, you find the same three numbers
along the lines on the map leading to Kaposvar. You can also see exactly
where each line is going. For train times from Kaposvar to Siofok, you can
consult table number 35 in the timetable book.
5.5.4 Timetable Symbols

You interpreted symbols in the Amtrak timetable, learning that there is a café
on board the train. Many timetables, particularly in Europe, use a common set
of symbols. These were first created by the International Union of Railways
(UIC) who recommended their use in timetables. As a result, they are used in
many different countries, but may vary slightly in how they appear. Figure 5.5.5
shows the most common symbols.

Figure 5.5.5—Common timetable symbols
The ‘weekdays’ symbol represents working tools. Beware of using the word
‘weekdays’ as it can mean different things. This symbol usually means
Mondays to Saturdays (except holidays), but in some timetables Saturdays is
not included in the definition of weekdays. ‘Weekdays’ in a North American
timetable generally means Mondays to Fridays.
The symbol for Sundays and holidays is a cross. Note the letters in circles
meaning different groups of days like ‘Mondays to Fridays’. Individual days of
the week are shown as numbers in circles, starting with 1 for Monday through
to 7 for Sunday.
Where are these explained in a typical timetable?
In any timetable, standard symbols with the same meaning are listed and
explained on a special page. It may be called ‘key to symbols’ or ‘explanation of
signs’. If it is a timetable book, this will be near the beginning. Make sure you
look for this page, as some railways may use different symbols. Symbols and
codes which are not standard with a different meaning appear on individual
pages or in the tables themselves. These might take the form of letters,
numbers or symbols. You saw an example in the Amtrak ‘Capitol Corridor’
timetable (Figure 5.5.1) where the numbers 81 and 82 were found in square
boxes.
Is a restaurant car always available?
Catering on board trains was discussed in Unit 5.4. Figure 5.5.3 lists the two
most common symbols showing that food and drink is available. The ‘knife and
fork’ symbol always indicates that some hot food is available. This is generally
in a separate carriage of the train called a restaurant car, buffet car, or
sometimes a bistro or bar. The ‘wineglass’ symbol may also indicate a buffet
car, or it may be a food cart or trolley wheeled through the train. Other symbols
are sometimes used, like the ‘cup’ symbol in the Amtrak timetable to indicate a
catering car, which they call a café.

Figure 5.5.6—When hot food is available, it is generally of good quality
What about the other symbols?

The next two symbols in the list are used in timetables to show Sleeping and
Couchette cars, that were described in Unit 5.4.2. The ‘railway carriage’ symbol
that represents a ‘through car’, as explained in Unit 5.4.3. If you see this
symbol in a timetable, look for the separate list of trains with the destination of
each carriage on the train.
Are seat reservations needed?
The symbols relating to reservations are, of course, important. A railway might
use more than one symbol to indicate that reservations are compulsory. For
example, one symbol might show that reservations are required if the
passenger is making an international journey on the train, but not if they are
making a domestic journey (a journey wholly in one country). Be sure to read
how the symbols are defined by each railway. A simple ‘R’, not in a box or
circle, generally means that it is possible to reserve a seat on the train if the
passenger desires, but it is not compulsory. Reservations will be discussed in
more detail in Unit 5.6.
Key Learning Point

Some timetable symbols are used by many different railways, but some
railways use their own unique symbols. Check to make sure you understand
the meaning of each symbol.
5.5.5 The European Rail Timetable

A description of timetable books showing all railway services in a particular
country was discussed previously. In contrast, the European Rail Timetable
(www.europeanrailtimetable.eu) is an online timetable publication showing
timetables throughout Europe. Certain editions include rail timetables for the
whole world. Due to book size limitations, it does not show every train.
Nevertheless, it features the most important stations and railway services.
Sample pages from this resource are included as training extracts in
Attachment D.

Figure 5.5.7—Extract from Table 600 of the European Rail Timetable
This extract from the European Rail Timetable shows the high-speed line which
runs from northern to southern Italy. The trains are frequent, so this part of the
table just shows the last trains of the day. You must read this table as a
‘tabular’ timetable.
This table is different from the Amtrak timetable because trains in this table
start at different places. Some start from Venezia, some start from Torino and
others from Milano. There are also two trains starting from Verona, even
though Verona is not on the high-speed part of the line. You will notice the
Italian names are used here for Venice, Turin and Milan, because it is the
Italian names which appear on station signs and on tickets. Where a train does
not stop at a station, no time is shown.
At the top of each column is the train category, FA for Frecciargento and FR for
Frecciarossa, which are both high-speed trains. In the European Rail Time-
table, these train types in Italy are explained at the beginning of the Italian
section. At the very top of the table, a note warns that all trains in this table
need advance reservations. The numbers below the train category are train
numbers, used to make reservations.
Notice that some trains do not run every day. Check in Figure 5.5.5 to see what
the ‘B’ in a circle means. When does the 19.05 train from Milano to Roma run?
The ‘5’ in a circle means it only runs on Friday. But note the letter ‘n’ next to it,
which is explained in the footnotes below the table. You will see there are two
Fridays when it does not run (January 2nd and May 1st), which could be public
holidays. But it runs on April 30 which is not a Friday–there would be no need
to mention a date in footnotes if it is a Friday when regular service operates.
There are also some other codes in the table (B, N and Y) which inform the
reader that these trains start in places which are shown in other tables.
This timetable uses the 24-hour clock. The two columns of kilometer distances
on the left side of this timetable show the distance from the first station (shown
as 0 km) and the other stations in the table.
The next extract displays all high-speed train services between Paris and the
city of Lille in northern France. The top half of the table describes services from
Paris. The bottom half is for services to Paris.

Figure 5.5.8—Extract from Table 250 of the European Rail Timetable
Some trains continue the short distance to Tourcoing near the Belgian border.
Number 415 shown against stations between Lille and Tourcoing indicates that
additional trains between these points can be found in Table 415. All are TGV
trains as shown at the top of each column.
Notice that there are two stations in Lille: Lille Europe and Lille Flandres. Lille
Europe is on the high-speed line and is used by trains continuing to other
destinations on the coast. Lille Flandres is the city's traditional terminal station.
For simplicity, the final destination for the trains displayed is not shown in this
table, as indicated by the reference to Table 250 at the top.
A number of trains, such as those with note ‘J’, do not run for several weeks
during July and August as there are fewer commuters and business travelers
during this holiday period. Note J in the footnotes indicates that these trains run
until July 4 and again from August 31. Look at footnotes B, E, F and G; you will
notice that these trains run on fewer days of the week during the summer
holiday (trains E, F and G only run on Fridays in this period).
A customer wishes to travel from Lille to Paris at about 17.30 hours on a
Monday in August.
Find trains from Lille to Paris in Figure 5.5.8. As there are two stations in Lille,
you need to look for trains from both stations. There is a 17.41 train from Lille
Flandres to Paris, but does it run on Mondays in August? Note F shows that the
train normally runs on Mondays to Fridays, but between July 10 and August 28
it only runs on Fridays, as shown by 5 in a circle. This train therefore does not
meet the needs of the customer. However, you can mention that there is a daily
train at 18.10 from Lille Flandres, arriving Paris Nord at 19.17. If the departure

from Lille is a little earlier, there is a train from Lille Europe station. In the table it
is shown at 17.09, but take care to read the footnote for this train. It says that
from July 11 the train is rescheduled to leave at 17.13. In the European Rail
Timetable “d.” means depart and “a.” means arrive.
Key Learning Point

When no dates or days of running are shown, the train runs every day.
However, look for the validity of the whole timetable. There may be separate
sections of the timetable for Mondays to Fridays and weekends. There may
also be a general note that no trains run on certain dates, for example on public
holidays.
Apply Your Learning

You should now have the ability to read almost any timetable, whether it is
printed or on the Internet. Look at as many different timetables as you can and
practice making itineraries.
Study Check 5.5
Refer to Figure 5.5.1 to answer questions 1 and 2.
1. Amtrak's Capitol Corridor trains run every day of the year. TRUE or
FALSE?
(a) True
(b) False
2. The last train from Sacramento to Oakland is at 20.10. TRUE or FALSE?

(a) True
(b) False
3. Timings for Amtrak trains are only shown in ‘tabular’ timetables. TRUE or
FALSE?
(a) True
(b) False

Refer to Figure 5.5.7 to answer questions 4 to 6.
4. The fastest trains from Milan to Rome take 2 hours 55 minutes. TRUE or
FALSE?
(a) True
(b) False
5. What time is the last train of the day from Turin to Florence on a Saturday?
(a) 1750
(b) 1802
(c) 1902
(d) 1950
6. The 1850 train from Verona to Firenze arrives at Firenze SMN station.
TRUE or FALSE?
(a) True
(b) False
Refer to Figure 5.5.8 to answer questions 7 to 9.
7. On a Sunday morning the first train from Lille to Paris leaves from Lille
Flandres station. TRUE or FALSE?
(a) True
(b) False
8. How many TGV trains run from Paris to Lille after 19.00 on a Saturday
evening?
(a) 2
(b) 3
(c) 4
(d) 5
9. After 15.00 on a Thursday, the first available train from Paris to Lille arrives
at Lille Europe station. TRUE or FALSE?
(a) True
(b) False
10. Which standard timetable symbol indicates that a train service operates
only on Saturdays, Sundays and holidays?
(a) The number 6 in a circle
(b) A cross
(c) The letter C in a circle
(d) The image of a knife/fork

5.5.6 Unit Summary

In this unit you read timetables that are presented in the traditional ‘tabular’
format (whole Unit). You started with an Amtrak timetable (Unit 5.5.1) and then
discussed how regular timetables differ from online journey planners
(Unit 5.5.2). You briefly examined the use of national timetables (Unit 5.5.3).
Commonly used timetable symbols (Unit 5.5.4) were also defined and later
supplemented with sample tables from the European Rail Timetable
(Unit 5.5.5).

5.6 Fares and Tickets
• Describe various types of tickets and rail fares (Unit 5.6.1).

• Find fares for your customers (Unit 5.6.2).
• Determine when reservations are required (Unit 5.6.3).
• Explain the different ways in which tickets are issued (Unit 5.6.4).
Unit Learning
Objectives • List the differences between rail passes and point-to-point tickets
(Unit 5.6.5).
you will be able to: • Define the role of the travel agent who specializes in selling rail
transportation (Unit 5.6.6).
• Apply and explain the rail ticket's conditions of travel (Unit 5.6.7).
5.6.0 Unit Overview

Although it is not possible to provide a thorough description of all the different
types of rail fares and tickets that exist, this unit describes how you can
efficiently secure rail tickets for your customer. You will learn about different
categories of rail tickets. You will learn of the different ticket distribution
channels, such as the Internet and specialized agents and operators, through
which you can purchase rail tickets on behalf of your customer. However, you
need to be aware of the legal implications of each transaction.
5.6.1 Rail Fares Differentiated

Each individual railway company decides on the fares to be charged for its
services. Many fares are simply based on distance, often with a higher level of
fares for express or high-speed trains. If there are two or more railway
companies running on the same route it is likely that fares will be different for
each company.
Railway companies encourage passengers to book online using a computer,
because this means they can employ less staff in station ticket offices or in
telephone call centers. There is often a discount (a cheaper fare) for tickets
bought online before the day of travel. Sometimes the online fares are not
fixed, but vary according to the time of booking and the number of seats still
available on the particular train. Many airlines use a similar ‘yield management’
system. Early booking usually gets the cheapest fares (but not too early, as the
cheaper fares may not yet be loaded onto the computer system). There can be
a large difference in fares between those booked in advance on the internet
and those bought from the station on the day of travel.
Passengers traveling to work every day (commuters) can buy ‘season’ tickets
for set periods (one month for example) reducing the cost of their daily travel.
For other passengers it may be much more expensive to travel at these busy
‘peak’ times when people are going to and from work. In the United Kingdom
for example, very large numbers of people commute by train to the country's
capital city, London. Fares to London for travel at peak times can be four or five
times more expensive than fares at ‘off-peak’ times or at weekends. In some
countries, fares may be higher on certain days of the week. For example in
France the busiest times for long-distance rail travel are Friday afternoons and
Sunday evenings, and fares are higher at these times.
Unit 5.6: Fares and Tickets 475

As well as the days and times of travel, there are other important pieces of
information you will need in order to give information on rail fares:
• Is it a single (one-way) journey or a return (round-trip) journey?
• Are the dates of travel fixed or is flexibility required?
• What class of travel is preferred (for example, second class or first class)?
• How many people are traveling? There may be a group discount.
• What are the ages of the passengers? Children usually travel at half fare
but ages vary from country to country. There may also be discounts for
young adults or senior citizens.
• Is a supplement payable, for example for a high-speed or express train?
• Is it an overnight journey? If so, is sleeping accommodation required?
• Is a seat reservation required? It may be compulsory on a particular train.
• Would a rail pass be better than a regular ticket (see Unit 5.6.5).
You can see that an agent who issues a wide range of rail tickets has to have
specialized knowledge and training. There are very many different fares with
names like ‘second class off-peak day return’ or ‘Overnighter’, each with
different conditions or restrictions. This unit provides a general overview.
In addition to ordinary tickets, you also have to be familiar with tickets for
special trains, such as luxury cruise trains, car-carrying trains, day excursion
trains, and heritage tourist lines.
Key Learning Point

To give accurate information on rail fares it is important to gather a lot of
information about the passenger and his journey. The actual day and time of
travel may be required, even if the passenger is not yet ready to commit to
booking a ticket.
5.6.2 Finding Rail Fares

In Unit 5.3, you saw that many journey planners on the Internet will give
specific fares for a journey, once details about the journey and the number and
type of passengers have been identified. As well as giving information about
fares, many will also allow tickets to be purchased online. To proceed to that
stage, payment details, such as a credit card number need to be entered.
There are many other sources of information for fares. Websites often have
lists of them. Sometimes you may have to look up the distance for a journey
from a timetable, and then find the fare for that distance on a ‘fare chart’. The
Rail Europe website is useful for finding approximate fares
(www.raileurope.com). Most railway company websites quote fares for their
own services. They may also quote selected fares in printed brochures or
manuals. Another useful website is www.seat61.com.
Specialized agents will have access to railway company booking systems, or
other specialist agents, so will obtain fares from these sources. You will
examine the role of the specialist agent in Unit 5.6.6.

Key Learning Point

An approximate fare may be sufficient for the customer to make up his mind
about whether to take a rail journey. The exact fare can be confirmed when the
passenger has decided to buy a ticket.
5.6.3 Reservations
It is a modern day trend that more and more trains need to be reserved in
advance, often called “compulsory reservation”. The passenger has to decide
on a specific train and reserve a seat. Some countries, like France, Spain and
Italy, require compulsory reservation on most of their long-distance trains.
Other countries, like Germany, do not require it.
The travel ticket and the reservation are often two separate documents and can
be purchased at different times. The reservation fee will be quoted separately
from the fare for the journey. However, some high-quality trains have a ‘global
price’ where the fare includes the reservation fee (see the Thalys train in
Unit 5.3). On global price trains, the ticket is only valid on the chosen train. In
some countries, like Great Britain, the best value ‘advance purchase’ fares are
restricted to the chosen train (there is no separate reservation fee) whereas
more expensive ‘full fare’ tickets give the passenger the flexibility to travel on
any train.
Reserving in advance does not always mean that it has to be weeks or days
before travel. Provided there is space on the train, reservations can often be
obtained just a short time before the train's departure. However, knowing
whether there is likely to be space on a train is difficult to predict, even for an
expert! Overnight accommodation on a train, in sleeping or couchette
carriages, always requires advance reservation.
5.6.4 Tickets and eTickets

Once you select train times and locate the fare that best suits the passenger,
you are at last ready to make the booking and buy a ticket on the passenger's
behalf. A ticket is required for the passenger to take on the journey, to show
entitlement to travel and as proof that the appropriate fare has been paid.
Railway staff may need to see it at the station or on the train. It may also be
required to open automatic barriers at the station. The ticket will have details of
the fare paid, the points between which it is valid, and the date or period of
validity. If the ticket is for a specified train, those details will also appear on the
ticket, or the reservation details may be separate.
Traditionally, rail tickets have been printed onto paper or card and issued by
ticket offices, rail agents, or ticket machines at stations. In some countries such
paper tickets are still in use. Even journeys purchased online may be issued
with a regular paper ticket. For example, there may be an option to have the
ticket sent by post, or the passenger may be given a code at the time of
booking. Before getting on the train this code is entered into a ticket machine
which issues the paper ticket. This is known as ‘ticket on departure’ (TOD).
Paper tickets, however, are increasingly being replaced by various types of
electronic ticket. The term ‘eTicket’ is often used for these, where the ‘e’ means
electronic. A common form of eTicket is where the ticket is downloaded from
the Internet or sent by email to the customer. The customer is able to print the
ticket at home on an ordinary computer printer. Often the printout is not
necessary, as long as the passenger can display the ticket on the screen of a
smartphone or tablet computer. The ticket contains machine-readable codes
(such as a barcode or ‘QR’ code) which can be read by barriers at stations and
by devices carried by railway staff.

Figure 5.6.1—Print-at-home eTicket, including journey details and seat

reservation
In urban areas, regular passengers often use plastic cards called smartcards
which have a computer chip inside them. Using vending machines, passengers
can add an amount of money to the card for future use. This is called a stored
value card and schemes are given different names like ‘Oyster Card’ in London
or ‘MetroCard’ in New York. When the passenger makes a journey, special
card readers at the railway stations (and on other forms of public transport)
work out the fare for the journey automatically and take the amount away from
the stored value on the card.
In some places ordinary contactless credit or debit cards can be used in a
similar way, and the fare is deducted overnight from the cardholder's bank
account. Visitors and tourists may still be able to buy paper tickets, or special
smartcards designed for short periods may be available. To encourage the use
of smartcards, fares are usually a little cheaper for people using them.
These ‘smart ticketing’ systems started in urban areas but are gradually
extending to whole countries. The Netherlands was the first to use smartcards
for its whole network with the ‘OV-chipkaart’. One advantage is that they can
be used on other forms of public transport, such as metro trains, trams and
buses. Denmark has also introduced contactless smartcards on a national
scale.
Another form of electronic ticketing being developed is mobile ticketing
(sometimes called ‘mTicketing’). Not only can passengers use their mobile
phone or smartphone to buy tickets, but the ticket is delivered to the phone in
the form of an SMS message or picture message. Eventually, these electronic
or virtual forms of rail tickets will replace today's paper ticket.
Some railways (or their appointed agents) prefer not to supply other agents
with actual tickets to sell to their customers, but instead they supply vouchers
which the customer can exchange for a ticket later. They do this because a

voucher is a simple document, whereas a ticket is often more complex with

features such as a magnetic strip or barcode. A voucher can be a printed
document or it can be sent electronically by email. Once the voucher has been
issued to the customer it shows details of the relevant journey or rail pass and
provides proof that the customer has paid the agent. When the customer
arrives in the country where the journey is to take place, the voucher can be
exchanged in the railway station for an actual ticket or pass, without further
payment.
One example is Japanese rail passes, which must be purchased before arrival
in Japan. At the time of purchase outside Japan, the rail agent issues a
voucher (sometimes called an exchange order). It is a printed document rather
like a ticket, but it must be exchanged for an actual pass in Japan before rail
travel commences. An advantage for the customer is that the travel start date
for the pass is only added when the voucher is exchanged.
Key Learning Point

Tickets come in many forms. Paper tickets are still issued by many rail
companies and stations. Eventually the paper ticket will be replaced by virtual
or electronic tickets. Travel agents generally do not issue rail tickets them-
selves unless they have a specific arrangement with a railway company.
5.6.5 Rail Passes

Rail passes are special tickets which give much more flexibility than regular
point-to-point tickets. They are not just for travel between two places but allow
travel on a whole network of railway lines for a certain period of time. The
network may be a whole country, or even several different countries like the
popular Eurail and Interrail tickets in Europe. Other passes may cover smaller
areas or regions. Some may be restricted to the services of one operator, while
others may include many different operators (perhaps buses and ferries too).
For those who want to do a lot of travel within a certain number of days, a pass
can be ideal and can save money over buying regular tickets. The passenger
does not have to decide where to go until the last minute. “It is sunny
today–let's get the train to the beach!” Passes are therefore often used by
tourists who are on holiday or who want to explore an area. However, even
businessmen visiting three or four locations may find that a pass is more
suitable than individual tickets, as it gives them the flexibility they require to
change travel plans.
Just like regular tickets there are choices to be made when buying passes. The
main decision is how long you want the pass to last, and each pass has a
different range of options. In urban areas and smaller countries there may even
be passes valid for just one day. Be careful to read and understand any special
conditions relating to the particular pass scheme. Some passes may not be
valid on particular trains or at certain times of day. Particularly important is that
many national passes are restricted to those living outside the country or
countries concerned.
Where trains require advance reservation, pass holders are usually required to
reserve a seat and pay the relevant supplements. This can reduce the
usefulness of a pass in countries where most long-distance trains require
reservation. On some high-speed international services, like Eurostar and
Thalys, passes will only give the holder a discount off the normal fare. Some
passes, like the Amtrak pass for the USA, only allow a certain number of
journeys.

Rail passes are important to the travel agent because they are normally
purchased in advance in the passenger's own country. They are much easier
to issue than regular tickets, and the higher value often means better
commission for the agent. For some countries (like Japan) they may be the
only sort of ticket that can be issued outside the country concerned.
What about Eurail and Interrail Passes?
Europe is the region of the rail pass, and these two well-known pass schemes
give many thousands of people each year the freedom to roam the railways of
Europe! The national railways of most European countries have clubbed
together to provide these special multi-country passes, available to people of
any age. Eurail is for people who are normally resident outside Europe. About
50% of Eurail customers are North Americans. Interrail is only for European
residents, although it is not available for travel in the pass holder's own country.
In both cases the most popular option is the Global pass, which gives the best
value for money for travelers who want to explore as much of Europe as
possible. The options available for both passes have recently increased, with a
wide range of validity periods offered.
The Eurail Global Pass (for non-European residents) is valid in 28 European
countries. Passes are available for 15 days, 22 days, or one, two or three
months. For those who do not want to travel every day of the trip, there is a
‘flexi’ version, which is valid for 5 or 7 days within a period of one month, or 10
or 15 days travel within two months. Passengers write the date in special boxes
on the pass. Eurail passes are available in both 1st and 2nd class versions.
The Interrail Global Pass (for European residents) gives first or second-class
travel in 30 countries of Europe. The options are 15 days, 22 days, or one
month, and ‘flexi’ versions are for 5 days within 15 days, or 7, 10 or 15 days
within one month. There are discounts for Youth aged 12 to 27 or under and
Seniors aged 60+.
Figure 5.6.2—Cover of Interrail Global Pass ticket
A ‘day’ starts at midnight and ends the following midnight. There is, though, the
famous ‘7 p.m.’ rule that applies to overnight trains. The rule means that once a
traveler starts an overnight journey after 7 p.m., the next day's date must be
entered on the pass.

I only want to visit a few countries!

The Eurail scheme includes a whole variety of passes covering smaller
regions of Europe. These range from the Select Pass, covering two, three or
four adjoining countries, to One Country Passes covering just a single country
(or sometimes a group of small countries, such as the Benelux or Scandinavia
passes). Interrail has fewer options but One Country Interrail passes are
available for most European countries. Many countries also offer their own
pass schemes.
Full details of the Eurail and Interrail passes can be found at www.eurail.com
and www.interrail.eu. Other useful passes for Europe include BritRail for Great
Britain, while different areas of Eastern Europe are covered by the Balkan
Flexipass or the European East Pass. Popular passes outside Europe include
the USA Rail Pass, the California Rail Pass, and the Canrailpass for Canada,
the Japan Rail Pass, and the Indrail Pass for India. You can easily find
information about particular passes online by putting the name of the pass into
an internet search engine. The monthly European Rail Timetable also includes
details of the main passes.
Key Learning Point

Passes give the passenger more flexibility than point-to-point tickets and may
save them money. Deciding on the best option requires detailed research.
5.6.6 The Specialized Travel Agent

Selling rail tickets can be complicated and requires specialist knowledge. So it
is not surprising to find that many travel agents prefer to concentrate on selling
airline tickets, tour package holidays and hotels.
Why would a travel agent want to sell rail tickets anyway? After all,
knowledgeable customers are able to make their own bookings at home or at
the railway station. Agents who sell rail provide full service to their customers,
especially if they can sell tickets for rail transportation outside their own
country. The rail journey may be part of a longer itinerary, perhaps including a
flight and hotels which the agent can also arrange. Or perhaps the customer
simply wants an expert to help him make his rail travel arrangements.
A travel agent who decides to sell rail tickets can usually make an arrangement
with the national rail operator in their own country to become an official
appointed agent. Today, railway companies establish contractual agreements
with travel agencies, permitting them password-protected, private access to
their website to make rail reservations. The agent may require training on how
to use the particular booking system.
What about selling rail transportation in other countries?
Of course, things get much more difficult if a passenger is traveling to a
different country or has complex requirements. The booking system available
to the agent may be able to book a range of journeys including some
international ones. A good agent, however, will have an arrangement with one
or more specialized rail agents or railway companies, either to fulfill all rail
ticket requirements, or just ones that the agent is unable to issue.
Specialized rail agents often have agreements with many different railway
companies in different countries, and have access to multiple booking systems
and ticket types. Their staff often has many years' experience. Their main
business might be providing rail tickets for other agents, and meeting the
business travel requirements of large companies. They are also likely to sell
directly to the public through website and telephone bookings. Tickets can be

sent either to the agent who is dealing with the customer or directly to the
customer by post or as an eTicket.
Some rail agents may specialize in one particular country. For example one
agent in London concentrates on obtaining tickets and passes for Indian
Railways, for any agent or member of the public who requires them. Some
specialized rail agents are also able to customize rail itineraries for travel agent
customers, as well as hotels and other services. Using their expertise they
provide the most suitable rail tickets for the passenger's needs and prefer-
ences. This might be a business trip or a holiday by rail. Some agents, on the
other hand, may concentrate on selling a range of rail passes for different
countries. Agents often charge a service fee as not all railways pay commission
to agents, or the commission may be very low.
Global Distribution Systems (GDSs)
In the future it is likely that non-specialized agents will find it easier to issue rail
tickets because the agency's reservation system will be able to manage seat
inventory and pricing for rail products. Amadeus, a GDS used by agents to
book air tickets, has added rail inventory to its system.
What of the travel agent who has made no special arrangements with railway
companies or specialized rail agents? A solution is to book online in the same
way that a traveler does or go to the railway station to buy a ticket for a valued
customer. Any financial compensation for the agent would be in the form of a
service fee charge. However, in most cases, if you purchase tickets for a
customer over the Internet, you are legally considered to be the customer. So
make sure you are aware of the cancellation conditions before you place an
order. You can of course purchase the required tickets in your customer's
name and pay with his credit card. This may, in certain countries, help you to
avoid any liability.
Key Learning Point

If you purchase a rail ticket or a voucher for your customer, make sure you
know who is legally considered the railway company's customer. In the event of
subsequent irregularities it is important to know this in advance.
5.6.7 Conditions of Carriage

The conditions of carriage are the legal basis for the relationship between the
railway and the passenger. They may state, for example, the amount of
baggage that a passenger is entitled to take with him. The most important
aspect of the conditions of carriage concerns what happens when there are
delays or breakdowns, or even accidents.
Perhaps your passenger has missed the last train of the day because an earlier
train was late. Is the passenger entitled to compensation? Will the railway
company pay for a hotel? Will the ticket be valid the next day on a different
train? It is important to know the answers to these questions.
In Europe most railways have adopted the ‘CIV’ conditions of carriage. If a
passenger's journey involves two or more different operators, the CIV applies
to the whole journey. The letters CIV should appear on his tickets. Let's say
that a train operated by the first railway company is delayed. That causes the
passenger to miss his next train, operated by a different company. Under the
CIV conditions, the second company will have to accept the passenger on a
later train, even if booked on an earlier one. They may even have to shoulder
hotel expenses if an overnight stay is required.

You cannot assume that such arrangements exist outside Europe. However, if
a passenger's journey is all on one railway company, that company will be
responsible for getting the passenger to the final destination stated on the
ticket. In the event of a delay, advise your customers to seek out railway staff
and ask them to sign the back of the ticket. This will indicate to other railway
staff further along the route that there was a problem caused by the railway
company, and was not the fault of the passenger.
Apply Your Learning

Different fare and ticket types have complex conditions, and travelers may
have difficulty finding information such as the period of validity. To make
matters even more complicated there are tickets that do not allow the
passenger to stop along the way. In other cases the passenger may stop as
many times as required, and still others where the ticket is only valid on the
trains of a particular operator or at certain times of the day. Some tickets also
combine the right to travel with a reservation for a specific train.
The Internet makes things easier. If you buy tickets online (or through a
computerized booking system), and you specify a specific train on a specific
date, you can be sure that the computer will only offer you fares and ticket
types suitable for the particular journey being made.
Study Check 5.6
1. Rail fares are based only on the dis-

tance travelled.
(a) always
(b) sometimes
(c) never
2. ‘Thalys’ trains have to be reserved in advance. TRUE or FALSE?

(a) True
(b) False
3. People resident in France can buy Eurail passes. TRUE or FALSE?

(a) True
(b) False
4. The Balkan Flexipass is a rail pass for .

(a) North America
(b) Japan
(c) Eastern Europe.

5. The ‘Amadeus’ booking system can book airline and hotel products but not
trains. TRUE or FALSE?
(a) True
(b) False
5.6.8 Unit Summary

There are many different types of rail fares and tickets for travel everywhere in
the world, each with their own conditions and restrictions. Therefore, it is
important to be thorough and have all the correct information when calculating
the exact cost of a ticket.
In this unit you have learned about different categories of rail fares (Unit 5.6.1)
and how to find information about them (Unit 5.6.2). You also looked at making
reservations (Unit 5.6.3) and examined different ways in which tickets are
issued (Unit 5.6.4). You learned about the general features and limitations of
popular rail passes (Unit 5.6.5) as an alternative to point-to-point tickets. The
unit also discussed the role of the travel agent and the importance of providing
full service to customers who want to travel by rail (Unit 5.6.6). The ability to
anticipate travel conditions help prevent unpleasant surprises and disappoint-
ment for the rail traveler (Unit 5.6.7).

Module Summary
In this module, you learned about the needs of rail travelers and the
advantages of rail travel (Unit 5.1). You looked at different types of train
services, including the most popular ones around the world (Unit 5.2).
Using an online journey planner to find detailed information about specific
journeys also proved useful (Unit 5.3). Because trains often have different
types of accommodation, it is important to check classes of travel, sleepers and
couchettes for overnight travel, and different kinds of catering on board the
train (Unit 5.4). Interpreting timetables in ‘tabular’ format is key to good
planning (Unit 5.5). In that unit you also looked at commonly used timetable
symbols and saw some examples in an extract from the European Rail
Timetable.
The last unit helped you examine the complex area of fares, tickets and rail
passes, including the role of the specialized rail agent and the conditions of
carriage that apply to rail travel (Unit 5.6).
Module Summary 485

Review Questions
Unit 5.1
1. Which is the best reason for a business person to travel by train?
(a) Trains offer more room than planes
(b) Trains are more punctual than planes
(c) Trains are friendlier to the environment than planes
(d) High-speed trains are faster than planes for journeys of up to four
hours
2. Wireless internet access is available on .
(a) all trains
(b) high-speed trains
(c) some long-distance trains
3. The number of passengers traveling by rail in India
is .
(a) increasing
(b) decreasing
(c) not changing
Unit 5.2
1. Which train travels the longest stretch without a curve?
(a) The Canadian
(b) The Trans-Siberian Railway
(c) The Indian Pacific
(d) The Blue Train
2. The ‘Shinkansen’ train in Japan is popularly categorized as a
train.
(a) commuter
(b) car-carrying
(c) high-speed
(d) scenic
3. ‘Eurostar’ trains operate between .
(a) Paris and Amsterdam
(b) London and Paris or Brussels
(c) Madrid and Barcelona
(d) Paris to Germany and Switzerland

Unit 5.3
1. The ‘Deutsche Bahn’ journey planner shows trains
for .
(a) Australia
(b) USA
(c) Europe
(d) the whole world
2. When choosing a train I should look for .
(a) the fastest journey
(b) the journey requiring the least number of changes
(c) a journey along a scenic route
(d) a journey which meets the customer's wishes
3. To check that a journey planner is showing a direct route I
should .
(a) check the journey in an atlas or map
(b) check the journey in another journey planner
(c) check the journey in printed timetables
Unit 5.4
1. The most comfortable class of service offered on trains
is .
(a) First Class
(b) Coach class
(c) Tourist class
(d) Hard class
2. Night trains have sleeping-cars only. TRUE or FALSE?
(a) True
(b) False
3. Night trains often have ‘through cars’ going to different destinations. TRUE
or FALSE?
(a) True
(b) False

Unit 5.5
1. Reservations are compulsory on Amtrak's Capitol Corridor trains. TRUE or
FALSE?
(a) True
(b) False
2. Using Figure 5.5.1, the distance between Sacramento and Oakland is
miles.
(a) 80
(b) 90
(c) 100
3. Timetables (particularly in Europe) commonly use letter ‘B’ in a circle to
mean .
(a) reservation is compulsory
(b) runs only on Fridays
(c) runs daily except Saturdays
(d) runs on Mondays to Fridays
Unit 5.6
1. Child fares are less than adult fares. TRUE or FALSE?
(a) True
(b) False
2. Global Interrail passes are valid for one month. TRUE or FALSE?
(a) True
(b) False
3. Travel agents earn commission when
they sell a rail ticket.
(a) always
(b) normally
(c) never

Review Questions: Practice with the Training Extract

The Training Extract in Attachment D contains a variety of timetables from
around the world. Included in it is the 12-page “Beyond Europe–India” section
from the European Rail Timetable (Tables 5000+). This is a self-contained
section with its own map and index. This Attachment can be downloaded from
your IATA LMS User Account. Only the most important or useful trains are
shown. Answering the following questions will give you useful practice at
finding the correct table (using the index and map) and reading the timetables.
1. Your customer wishes to travel from Kolkata to Delhi, leaving on Thursday
morning. What train would you recommend? What time is the train
scheduled to arrive into Delhi, and on what day? What is the name of the
railway station in Delhi where your customer will arrive?
2. How long does it take to travel from Ahmedabad to Mumbai on the fastest
overnight service? Which station does it arrive at in Mumbai?
3. Your customer wishes to travel from Jaipur to Mumbai on Friday afternoon.
Can you advise a suitable train?
4. Find a train from Villupuram to Chennai leaving in the afternoon or evening
on a Monday.
5. Your customer wishes to travel from Amritsar to Delhi to arrive by 8 a.m.
the following morning. What are his options? Include the train number.
The Training Extract also contains selected pages from the European Rail
Timetable for Russia, China and Japan. Use them to answer the following
questions.
6. After midday, what time does the first Sapsan high-speed train from St.
Petersburg arrive into Moscow? Use Table 1900 (Moscow is shown as
Moskva in the tables).
7. How frequent is the rail service from Moskva Sheremetyevo Airport to
Moscow, and how late does it run? You will need Table 1901.
8. A customer wishes to travel from Khabarovsk to Vladivostok (Table 1990)
but does not yet know what is the of travel. Is there a daily train you can
recommend?
9. Your customer has asked for a good-quality afternoon train from Chang-
chun to Beijing. What would you recommend? The index to the China
section is included in Attachment D, as well as the map of China.
10. Trains from Shenyang to Harbin leave from two different stations in
Shenyang. What are they called?
11. Another journey in China–how long does it take to travel from Xi'an to
Baoji?
12. The index and map for Japan are included in Attachment D. To arrive in
Tokyo by 11.00, what time would a customer need to leave Nagoya, using
a high-speed train?
13. What time is the last Shinkansen train from Sendai to Hakata?
14. To arrive in Nagano by mid-day, what time would a customer need to leave
Tokyo?

Review Questions: Practice with a Journey Planner

If you have Internet access, use the Deutsche Bahn journey planner that was
used in Unit 5.3.1 (www.bahn.de/en). Answer the following questions:
1. Find trains from Prague to Vienna. What type of train runs on this route?
Remember to look for journeys that do not require a change of train.
2. Is it possible to travel from Berlin to Hamburg in under two hours? Can you
buy tickets on this route using this journey planner?
3. Find trains from London to Edinburgh. What station beginning with the
letter ‘Y’ do these trains call at on the way to Edinburgh.
4. How frequently do IC (Intercity) trains run from Brussels Zuid to
Amsterdam Central?
5. Are there any through trains from Nice to Nantes?

Useful Websites
If you have access to the Internet, try a search with “railways” and “timetables”,
and you will get an astonishing diversity of timetables from all over the world.
There are also many maps showing railway services. Most railway companies
produce detailed printed maps and also have basic maps on their websites.
The Eurail and Interrail websites (www.eurail.com and www.interrail.eu) offer
an interactive railway map showing journey times and a Rail Planner App,
which works offline. This tool shows departure and arrival times for European
trains. These are found in the "Plan Your Trip" tab.
The Seat 61 website (www.seat61.com) has a huge amount of information
about rail journeys all over the world, including different types of ticket and
accommodation on the train (often with photographs).
The European Rail Timetable contains maps and timetables for Europe
(plus a ‘Beyond Europe’ section each month). Special Summer and Winter
editions include all Beyond Europe sections. It can be ordered from European
Rail Timetable Ltd, 28 Monson Way, Oundle, PE8 4QG, United Kingdom.
Website: www.europeanrailtimetable.eu.
Useful Videos
• Modern Trains of the 21st Century
https://www.youtube.com/watch?v=osiX_vwCnX4
• India's Frontier Railways - Episode 1
https://www.youtube.com/watch?v=i8hs24tvR_8
• Japan New Bullet Train - https://www.youtube.com/watch?v=8L9o6Di9ok8
• 25 Extreme Railways in the World Part 2 -
https://www.youtube.com/watch?v=UbwUFp7wndk
Useful Videos 491

Glossary
Baggage car: A type of carriage often forming part of a passenger train and
used to carry passengers' checked baggage and larger items such as bicycles
or skis.
Carbon dioxide emission: Environmental emission of carbon dioxide from
burning of fossil fuels.
Commuters: People who travel regularly between the same two points by rail.
Conditions of Carriage: The legal basis for the relationship between the
railway and the passenger.
Connecting train: A train on which the passenger can continue his journey
after disembarking from another train.
Connection time: The period of time between disembarking one train and
boarding the next.
Couchette compartment: A carriage compartment with bunk beds.
EuroCity: A category of International rail services common in Europe using
conventional (not high-speed) trains.
Global Distribution System: A booking system used by travel personnel to
book airline and train tickets.
High-speed trains: Trains which typically travel at 300 km/h (186 mph) or
more.
High-speed lines: Rail tracks on which high-speed trains must ride.
Intercity: A category of domestic high-quality rail services found in many
European countries and some countries outside Europe.
Journey planner: A specialized electronic search engine used to find the best
journey options between two points.
Leg of the journey: segment of the journey.
Local trains: A train category for trains that call (or stop) at smaller places
which are not major rail destinations.
Long-distance trains: A train category for trains that travel long distances
between destinations, sometimes overnight or over a few days.
Luxury train: A train that offers a traveling experience that includes fine meals,
exclusive facilities, and an exceptional standard of service.
Motorail: A train equipped with special wagons to carry cars and motorcycles.
Pendolino train: A type of tilting train built to go round corners at higher
speeds than regular trains.
Rail pass: A type of ticket that allows unlimited travel within a particular
country or area for a specified period of time.
Rail (railway) station: A central terminal building where trains board or unload
passengers.
Reservation system: A computerized system used to store and retrieve
information and conduct transactions related to travel.
Scenic train: A train whose route and destination are chosen to offer its
passengers an opportunity to watch the outdoor scenery in comfort.
Sleeping car/sleeper: A train car with facilities for sleeping.
Sleeping compartment: A carriage compartment with sleeping bed(s).

Suburban train: A passenger train that operates primarily between a city

center and its suburbs.
Through car: A train carriage that is detached somewhere along the route
from one train and attached to a train going somewhere else.
Through Train: A train which travels between two destinations without the
need for a change of trains.
Urban rail systems: Transportation systems by rail within cities, including
underground systems such as subways/metros/tubes or above ground such as
trams.
Voucher: A bond which is worth a certain monetary value and can be
exchanged for rail tickets or services.
Yield management system: A system of pricing airline or railway tickets
where prices are constantly changing in order to fill empty seats and maximize
the ticket revenue for a particular flight or train.
Glossary 493
Acknowledgements
Most photographs in this Module are kindly provided by Mark Smith of Seat 61
website (www.seat61.com) and Brendan Fox.

Answer Key
Study Check 5.1
1. (b) False. Some airports do not have a rail station
and are served by bus.
2. (a) True. In fact there are about 5,400 railway
stations in Germany.
3. (a) True. This is Amtrak's most popular route.
4. a. Trains are the most environmentally friendly.
5. (b) False. The Channel Tunnel links Great Britain
with France.
Study Check 5.2

Name of train service Country High-speed or long distance
1 Acela Express USA high-speed
2 Alfa Pendular Portugal high-speed
3 Alta Velocidad Española Spain high-speed
4 Alta Velocità Italy high-speed
5 Canadian Canada long distance
6 Coast Starlight USA long distance
7 Glacier Express Switzerland long distance
8 Indian Pacific Australia long distance
9 Intercity-Express Germany high-speed
10 Railjet Austria high-speed
11 Rajdhani India long distance
12 Shatabdi India long distance
13 Shinkansen Japan high-speed
14 SuperCity Czech Republic high-speed
15 TGV France high-speed
16 Trans-Siberian Russia long distance
17 X2000 Sweden high-speed

1. (b) False. The journey planner example in Unit 5.3 1. (a) True. Eurostar trains have Standard, Standard
gave us a journey without a change of train. Premier and Business Premier.
2. (a) True. It is always necessary to enter a date 2. (b) False. Couchette carriages offer four or six
and approximate time of travel. berths at night, while the compartment is a regular
first or second class seating compartment during
3. b. Fares are sometimes shown. If you enter a date the day. Only basic bedding is provided.
a long time in advance, timings may be available,
but not fares. 3. (b) False. First Class is more expensive than
Business Class in the USA.
4. (a) True. Many countries have discount cards for
rail travel. 4. (a) True. Sometimes they have to be reserved in
advance.
5. Sometimes. Platform numbers may not be avail-
able in all countries. 5. (b) False. Some trains have special places for
bicycles.
Answer Key 495

Study Check 5.5 Review

1. (b) False. There are a few holiday dates when the Unit 5.1
trains do not run.
1. All are basically correct, although there may be
2. (b) False. The last train is at 9.10 pm, which in the exceptions to each of the points.
24-hour clock is 21.10.
2. The availability of wireless internet access varies
3. (b) False. You can also find them in the journey between different railway companies and types of
planner on Amtrak's website. train.
4. (a) True. In Figure 5.5.7 there are three trains 3. a.
which run non-stop from Milan to Rome taking
Unit 5.2
2 hours 55 minutes.
1. c. (The Indian Pacific runs between Perth and
5. b. The 1750 train from Turin (local name Torino)
Sydney, Australia).
does not call at Florence (local name Firenze).
The 1902 train does not run on Saturdays and the 2. c
1950 train only runs on Sundays. The last train on
a Saturday is at 1802. 3. b (through the Channel Tunnel).
6. (b) False. Footnote c shows it arriving at Firenze Unit 5.3

Campo di Marte station. 1. c. It shows trains for most countries in Europe.
7. (b) False. It leaves from Lille Europe at 0813. 2. d. The customer's preference may be for (a), (b)
8. b. There are three trains (1943, 2046 and 2218). or (c).
9. (a) True. It arrives there at 1646. 3. a. A map or atlas will show if an alternative route
might be possible, requiring further research.
10. c. The letter C in a circle Printed timetables may also help, if you have the
correct ones available.
Study Check 5.6 Unit 5.4
1. b. Many fares are based on distance, but some- 1. a. There are a lot of other names used as well,
times fares vary depending on the time of day and depending on the country, the railway company
even the number of seats available on the train. and the type of train.
2. (a) True. Thalys trains are ‘global price’ trains 2. (b) False. Apart from ordinary cars (with seats)
where tickets are for specific departures. The fare they may also have so-called couchette cars, with
includes the reservation fee. four or six beds per compartment that are made
3. (b) False. Eurail passes are for people resident up by changing the seats into berths.
outside Europe. Residents of Europe can buy 3. (a) True. This is sometimes true of trains traveling
Interrail passes. by day as well.
4. c. The Balkan Fleixipass is valid in eight countries Unit 5.5
situated in Eastern Europe.
1. (b) False
5. (b) False. Trains for some countries can be
booked on the Amadeus global distribution sys- 2. b. The distance from the station marked ‘0’ is
tem. Further countries are being added. 35 miles to Sacramento and 125 miles to
Oakland. The distance from Sacramento to
Oakland is the difference between these two
figures (90 miles).
3. c.

Unit 5.6 Journey Planner Answers

1. (a) True. The child fare is often half of the adult 1. Railjet, often abbreviated to RJ.
fare. Child fares apply to children of different ages
2. Yes, Intercity-Express (ICE) trains on this route
in different countries, for example ages 5 to 15, or
take less than two hours. Tickets can be pur-
6 to 14.
chased using the journey planner.
2. (b) False. There are a range of options.
3. They call at York.
3. b. It depends on the arrangements the travel
4. Hourly.
agent has with railway companies or specialized
rail agents. 5. No. Every journey requires at least one change of
train.
Training Extract Answers
1. Table 5050. Depart Kolkata Howrah at 0815,
arrive Delhi 0600 next day, at the station called
New Delhi.
2. Table 5150. The fastest overnight train leaves at
2345, arriving 0600 at Mumbai Central station.
The journey therefore takes 6 hours 15 minutes.
3. Table 5130. Train number 12956 leaving Jaipur at
1400, arriving Mumbai Central next day at 0740.
4. Table 5310. Departs Villupuram at 1720, arriving
Chennai at 2115.
5. Table 5000. The traveler should leave Amritsar at
2125 on train 12904, arriving Delhi (Hazrat Niza-
muddin station) at 0705.
6. 1800. The train leaves St. Petersburg at 1330.
7. Every 30 minutes. Last train departs at 0030.
8. The only daily train between these points is at
1410 (it starts at Khabarovsk).
9. Table 7015. There is a good afternoon train
leaving at 1548.
10. The two stations are called Shenyang bei (bei
means north) and Shenyang.
11. Table 7040. Most trains take 65 minutes.
12. Table 8005. Train 112 departs Nagoya at 0903,
arriving Tokyo at 1043.
13. Table 8000. Train 414 at 2233 from Sendai,
arriving Hakata at 2355.
14. Table 8010. Train 515 arrives Nagano at 1150.
Departure from Tokyo is 1024.
Answer Key 497


Module 6:
Land Transport: Car and Camper
Module Prerequisites • A basic knowledge of how the Travel industry is organized and how it
operates.
Module, you should have: • A copy of a worldwide directory of one of the globally operating car rental
companies. For camper van rental there is no such worldwide information
and reservation tool available. You may have to procure yourself a copy of
the current handbook of one of the larger U.S. or Australian camper van
companies. They are either represented in your country by a tour operator
or may be contacted at their respective headquarters.
• Access to a Global Distribution System. This is not a prerequisite for this
Module but may certainly simplify its comprehension.
• Describe how the car rental industry is organized and how it operates
(Unit 6.1).
• Assemble the information required to make a car rental reservation
(Unit 6.2).
Module Learning • Assist your car rental clients with helpful hints (Unit 6.3).
Objectives • Describe how the camper van industry operates (Unit 6.4).
Module Introduction
This Module looks at the needs and wishes of different travelers intending to
rent cars and camper vans. You will learn how to give adequate advice and
how to book vehicles. You will appreciate how car and camper van rentals can
enhance your overall business results by serving your customers and thus
making it more profitable.
The first three Units address all aspects of car rental. Unit 6.4 specifies the
differences between car and camper van rentals and provides you with details
on how to rent camper vans for your clients. Cars are basically vehicles to
move from one location to another while camper vans allow, in addition to
traveling, overnight stays aboard.

502 Module 6: Land Transport: Car and Camper

6.1 The Car Rental Industry
• State basic knowledge of the global car rental industry (Section 6.1.1).
• Understand the different market segments of car rental (Section 6.1.1).
• Identify information about vehicles and what goes with their rental
(Section 6.1.2).
Unit Learning • Discuss the distribution systems used in the car rental industry
Objectives (Section 6.1.3).
6.1.0 Unit Overview
Customers rent for business, pleasure and car-replacement reasons.
The car rental industry is dominated by fewer than 10 big global players. They
operate large and varied fleets of cars in thousands of locations. However,
there are also many local rental companies operating within their own
countries.
Car rental includes more than just a vehicle. Amenities, insurance and
maintenance form an integral part of any rental.
Distribution of information to the travel trade and channels of reservations uses
all means of modern communication.
6.1.1 Global Car Rental: An Overview

6.1.1.1 Why Car Rental?
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The above scenarios show three main reasons for renting a car:
• commercial/business
• leisure/social
• replacement
A fourth and less frequent reason is the rental of vans for moving furniture and
other heavy goods.
Car rental is the right means of getting around:
• with lots of luggage
• with small children
• with animals
• when wishing to visit many different places in a given area within a short
period of time
• when intending to discover the countryside and meet local people
Unit 6.1: The Car Rental Industry 503

Arranging a rental car is one solution to get your clients to their destination as
soon as possible so that they can explore at their leisure.
If the itinerary involves considerable in-car time, find a make and model that will
accommodate the number of persons traveling together. For example for family
travel, suggest a car that is a bit roomier, especially for the kids. You will not get
rich from the additional commission but you may enrich their experience and
ensure they will come back to you to book their next trip.
Moreover, since leisurely self-drive vacations usually start in one place, a rental
car may again be the preferred option, as companies can offer one-way rental
options, so your clients can choose to fly back home from the last stop on their
itinerary.
However, car rental may not be the right choice for point-to-point trips, e.g.
from inner city to inner city. For estimated car travel times of more than
four hours a close look at alternatives such as rail and/or air travel is highly
advisable. Distance is not a good guide when considering a different means of
transport, as terrain, road conditions and traffic flows heavily influence the
speed that cars can make.
6.1.1.2 The Key Market

The car rental industry is huge: Carmaster, Travelport Galileo's car rental
program for instance, lists 44 companies with over 14,000 rental locations
worldwide.
There are fewer than ten globally operating companies including Alamo, Avis,
Budget, Dollar, Europcar, Hertz, National and Thrifty. The largest, by number of
locations, are Hertz, Budget and Avis.
Globally operating car rental companies sell their services directly to:
• The public
• Travel agents (individual and chains)
• Tour operators
• Airlines
• Specialized car rental brokers.
6.1.1.3 Choosing a Car

Many car rental companies offer eco-friendly cars that reduce fuel consump-
tion. For example, some cars use alternative fuels such as ethanol. Others
offer hybrid cars that partially run on electricity. Hybrid cars help reduce
greenhouse gas emissions.
The brokers resell back to the travel trade. The legal contract however remains
between the client and the car rental company. Broker and travel trade act only
as intermediaries.
Key Learning Point

There are two main markets for car rental: business and leisure. As a travel
agent you have four main partners: car rental companies, tour operators, car
rental brokers and airlines.

Study Check 6.1.1
1. A family wants to visit friends and do some sightseeing in the central city
area. Do you recommend the rental of a car?
(a) Yes
(b) No
2. A business man inquires about the best method to visit potential clients
along the U.S. West Coast. Do you recommend car rental?
(a) Yes
(b) No
6.1.2 What is Included with a Car Rental?
The basis of car rental is obviously the use of a vehicle. However the client also
gets:
• Amenities and services
• Insurance
• Maintenance
Let us look at the various elements that are contained in a rental procedure.

6.1.2.1 Vehicles and Vehicle Matrix Codes

To make it easy for booking agents to define the vehicle requested by each
customer, there is the Vehicle Matrix Code as approved by the Air Transport
Association of America and outlined in the Trade Practice Standard Interline
Passenger Procedures (SIPP).
Figure 6.1.1—Vehicle Matrix Codes
Any car can be described by a combination of four letters. This matrix is an

International Standard and is universally used by all Computer Reservation
Systems (CRS) and Global Distribution Systems (GDS) as well as in car rental
documents such as vouchers.

6.1.2.2 Extra Amenities

Cars can be equipped according to your client's particular needs or for
particular road conditions in certain areas with, for instance:
• Toddler and baby car seats
• Roof luggage racks
• Ski/winter equipment, including ski rack, ice scrapers, all-weather or snow
tires and/or snow chains
• On-board navigation system
• Mobile telephone
Note: This list is not exhaustive.
Figure 6.1.2—Special Equipment Codes
For physically challenged or handicapped drivers, services such as designated

parking at car rental stations and easy-access transfer buses in airport
locations are provided. Special reservation codes apply. Special equipment is
usually available on request for particular passenger requirements.

Chauffeur-driven vehicles are recommended in difficult terrain, in countries

where people drive on the other side of the road than at home and in countries
whose language differs from that of the visitor. It is also a relaxing way of
traveling. Business clients can use their time on the road for discussions with
fellow passengers, reading or preparing for meetings. Leisure travellers can
fully relax and enjoy the scenery. Chauffeurs often serve also as tour guide and
aides in difficult situations. Costs vary from country to country according to
general salary levels. It is usually worth the extra expense unless one has a
strong desire to drive.
6.1.2.3 Car Rental Insurance

Travel customers who buy an out-of-country vacation with a car rental product
depend on their travel professional to provide the necessary arrangements and
important advice for:
• the type of car to rent
• road and driving conditions in the destination visited
• car (auto) insurance
The travel professional selling car rental products must fully understand and
explain the advantages and disadvantages of car rental insurance.
Many customers believe that because they have personal car insurance they
are covered for insurance on a car rental or covered because their credit card
company offers some insurance. It is the travel professional's responsibility to
ensure that the customer understands that:
• some coverage options from a personal policy are not transferable to a
rental car–for example any damage the renter causes to a rental car–as
coverages are always specific to one car
• if they cause damage to a rental car their personal premium will increase
for their regular car insurance
• credit card coverage is only applicable if that card is used to pay for the car
rental–so for example in the case of a business traveler where the rental
costs may be billed to a company account the credit card insurance offered
is invalid since it is not being used to pay the rental charges
• some credit card rental car insurance plans cover accidents only if the
cardholder is driving, not the cardholder's spouse or other drivers named in
the policy
Car Rental Insurance Needs

There are two types of car rental customers with different needs for insurance
coverage: leisure and corporate. Insurance plans for local, domestic or
overseas car rental vary significantly. Insurance coverage generally depends
on the customer type, the model and make of the rental car, the car rental
destination, personal car insurance plans and credit card membership benefits.
Therefore, it is important for the travel professional to assess the travel
customer's needs when selling a car rental product. Travel professionals are
compensated for the sale of car rental insurance with commissions. With all the
risks covered by car rental insurance protection, the driver can concentrate on
driving and enjoying the trip.
Customer Type
The driver's age and the number of drivers per rental car will influence the car
insurance coverage required. Many corporate customers have a corporate
account or membership with a preferred car rental company. Corporate

membership plans may offer benefits that include some car insurance
coverage for frequent renters.
Car Rental Destination

The insurance rules and regulations of the country in which the car is rented
may influence the amount and type of coverage.
Personal Car Insurance Plans

The rental customer's own personal car insurance policy may cover rental cars.
It is important to know what coverage is offered by the customer's own plan to
ensure that the car rental customer is neither over insured nor under insured.
No one wants to be under insured in the event of a car accident.
Credit Card Coverage

Some credit card companies offer car rental insurance, sometimes at no extra
cost. It is important to ask the customer about his/her credit card benefits.
Sometimes, companies provide corporate car insurance coverage for their
traveling employees. Credit card companies do not provide insurance cover-
age for more expensive rentals such as sport utility vehicles (SUV's), luxury
cars, exotic cars and vans.
Key Learning Point

It is important to check the customer's personal insurance coverage so that
they are not over or under insured when renting a car.
Car Rental Insurance Terms

The insurance rules and regulations of the country in which the car is rented
may influence the amount and type of coverage.
Liability–If the renter is liable for an accident it means that it was their fault.
The liability coverage on the policy is separated into bodily injury liability and
property damage liability. If the renter is at fault for an accident these are the
amounts the policy will pay someone else on the renter's behalf.
Limits–The limit is the most the policy will pay. If the renter is at fault in an
accident and what you owe is more than the limit on the policy, they will have to
pay the rest of the money out-of-pocket.
Premium–The premium is how much the policy costs.
Deductible or Excess–In reference to collision or comprehensive coverage on
the policy, the deductible is the amount the renter pays before the insurance
company pays the rest. It is similar to a co-pay on health insurance. In your
policy, you determine the amount of the car insurance deductibles you pay in
the event of a claim against your auto insurance. A renter may choose a
different deductible amount for the collision coverage and the comprehensive
coverage. If the renter can afford to make a higher out-of-pocket payment in
the event of a claim, then they should choose a higher deductible. They will
therefore pay a lower premium as a result.
Effective dates–The date the coverage begins and the date the current policy
ends.
Principal Driver–the person who drives the insured car the most. Private
passenger vehicles included in the principal driver list include ordinary cars,
station wagons and jeeps, pick-ups, trucks, vans, and trailers designed to be
pulled by a passenger car.

Exclusions: The car insurance policy lists items, situations, and circumstances
that are NOT insured.
Examples of auto insurance Exclusions include:
• A loss that occurs when someone not insured by the car insurance is at
fault;
• A loss that is deliberately caused;
• A loss that occurs as the result of war, civil unrest, rebellion, or revolution.
Types of Car Rental Insurance Plans

The sale of car rental insurance is connected to the sale of the car rental. Car
insurance must be purchased together with the car rental. Car insurance
terminology, products and conditions vary considerably from one car rental
market to the next. In general, car rental products do not include car rental
insurance. There are three types of car rental insurance coverage: exclusive,
partially exclusive or inclusive. Each type of coverage has a different cost. Car
rental insurance premiums (cost) depend on the type of insurance coverage
desired and premiums are dependent on the car rental rate paid.
Exclusive Coverage
The least amount of coverage is offered in an exclusive insurance coverage
plan. An exclusive plan includes only the coverage required by national or state
law. This insurance coverage is compulsory by law and the car rental
transaction cannot be completed without it. This is obviously the cheapest
offer, but the car rental customer must accept responsibility for all the voluntary
insurance risks. This plan is sometimes called a basic rate, the renter choosing
to be covered under his or her credit card or personal vehicle insurance
coverage. In some countries it is mandatory to take the inclusive rate due to the
lack of support by credit cards or high-risk locations.
Inclusive (or “full”) Coverage

An inclusive insurance coverage plan is the most expensive. Here the rental
company is supplying the insurance. Car rental customers who want the
maximum coverage and safety will purchase all insurance options available for
the car rental. This plan offers the most complete coverage including
emergency medical and hospital, baggage and personal effects, accident and
injury liability, etc. This type of coverage may already be included in the renter's
travel health insurance policies, and therefore may not be necessary for the
renter to purchase for the rented vehicle.
Partially Exclusive Coverage

A partial insurance coverage plan includes mandatory insurance as decided by
local law and one or more voluntary options. When a car rental customer is
privately insured at home, options such as insurance against theft of luggage
from a locked vehicle may not be necessary.
Multiple Vehicle Drivers

Additional drivers must be named in the car rental contract for insurance
purposes. In some countries an additional fee applies to the car rental rate for
extra drivers. Travel professionals can research up-to-date car rental company
rules on additional drivers and insurance by consulting car rental company
websites, directories and the GDS system.

Apply Your Learning

As a travel professional, create a checklist that will help sell and organize car
rental insurance for travel customers. The checklist should help the travel
professional ask relevant questions before making the car rental reservation in
the GDS system or before phoning, faxing or emailing the car rental and
insurance sale to the car rental company. Remember to include key questions
in the checklist such as customer address, number of passengers and drivers,
driver passport number and nationality, rental car pick up and drop off points
and dates, car rental type/category, credit card company and number, a list of
car insurance options and premiums and the car rental rate.
Car Rental Coverage, Terms and Conditions

There are four standard car rental options. They must be purchased at the time
of renting a vehicle. Renters may be covered by their personal auto insurance
policy, by their credit card company or by the company they work for. It is very
important that car rental customers understand their coverage limit and
conditions. The following information has been collected from various car rental
insurance companies from Australasia to North America.
CDW (Collision Damage Waiver) and LDW (Loss Damage Waiver)

Collision Damage or Loss Damage Waiver limits the renter's responsibility for
damage (by fire, vandalism or accident collision) or loss of a rented vehicle.
Without insurance, the renter is responsible for the total value or replacement
of the damaged rental car. Travel professionals must explain these risks well if
they do not want their car rental customers to pay for repairs to a damaged
vehicle or replace a stolen one that is not theirs. CDW and LDW prevent the
rental car company from charging the renter for damage or theft of the rented
vehicle. However, damage caused to someone else's car by the rented vehicle
(third party damages) is not covered under this insurance option. Personal or
business car insurance normally covers third party damages when renting a
car. The CDW coverage may be void/cancelled if the renter causes an accident
by driving above the speed limit, by driving on unpaved roads or by driving
while intoxicated by alcohol or drugs. This coverage is normally not expensive
for the average rental and generally costs between USD $10 and $20 a day. If
a renter already has personal comprehensive and collision travel insurance,
they may not need to purchase CDW/LDW coverage.
The term CDW is the international version of the LDW used in the United
States.
Note: The benefit to the purchase of CDW or LDW is that any claims made will
not affect the renter's own insurance premiums.
Liability
This type of insurance protects the renter from damage to third parties (other
vehicles or persons outside the rented vehicle). In many countries, especially in
Europe, this insurance coverage is compulsory. Car renters must understand
that rental vehicles may damage property or injure other persons. Since most
people cannot pay for such damages, governments require car rental
companies to provide liability insurance.
Liability insurance pays excess liability coverage for the time the car is rented.
Rental companies are required by law to offer a minimum level of liability travel
insurance for the countries in which the rental car is driven. Generally, the
minimum liability coverage does not offer enough protection in a serious
accident. With liability insurance coverage, if there is an accident involving the
rental car, the insurance company will pay for damage or medical bills if
someone is injured. The insurance company will cover expenses, up to a

maximum limit purchased by the rental customer. When renting a car in a

foreign country it is better for the renter to purchase a higher or the maximum
liability travel insurance available. Rental car companies will hold the driver
totally responsible for damage to the rental vehicle and if it is stolen.
PAI (Personal Accident Insurance)
Personal Accident Insurance covers some medical emergency costs to the
renter and to the passengers entering, riding in or exiting the rental vehicle. PAI
pays benefits to the renter or a passenger in case of death or injury from a car
accident. PAI provides medical protection for the driver and the rental vehicle
passengers, reimbursing medical/ambulance costs. This type of coverage may
already be included in the renter's personal auto or health insurance policies,
and therefore may not be necessary for the renter to purchase for the rented
vehicle.
PEC (Personal Effects Coverage or Theft Protection)
This insurance is normally sold together with PAI. Theft Protection insurance
for the rented vehicle and personal belongings is mandatory in Italy and some
Eastern European countries where the incidence of vehicle theft is high. PEC
provides coverage for the theft or damage of personal items owned by the
renter, the renter's immediate family that permanently resides with the renter
and any business associates that are traveling in the rental car at the time the
theft/damage occurs. This coverage is effective while traveling or in any hotel
or building during the trip that the rental car was used to transport the renter to.
If the renter has a homeowner's or renter's travel insurance, they may be
covered for items stolen from the rented car. In most cases, a police report
must be filed within 24 hours of the vehicle theft and the rental company must
be notified immediately. Some rental car companies combine personal
accident and personal effects coverage together as one type of travel
insurance, while others sell it separately. There are some exclusions to the
coverage including such items as: animals, currency, tickets, documents and
perishables.
Key Learning Point

The cost of travel insurance at the rental car counter varies depending on the
rental car company, location of the rented vehicle and the type of car rented.
Some rental car companies check for credit and driving history and may deny
coverage.

Figure 6.1.3—Sample Car Rental Record
This is a sample summary of a Hertz Rental Record. This car rental record
displays the premium cost for LDW (Loss Damage Waiver) at $29 per day and
P&P (Personal & Property/Personal Accident) insurance at $7.95 per day.
Additional Drivers
The renter may wish other members of their party to drive the vehicle they have
hired. For insurance reasons the car rental company must be aware of these
people.
Car Rental Policies

Each car rental company will have certain rules and regulations that influence
the conditions surrounding the vehicle rental. However, certain general
guidelines such as: who is eligible to rent a vehicle, who may drive it, when the
rental vehicle may be driven and when/how it should be returned are usually
noted. An overview of the most common conditions found in rental car polices
includes:
Accidents–the procedures to follow if the rental vehicle is in an accident or if
the renter receives a traffic violation.
Additional Drivers–there may be age restrictions or insurance restrictions for
additional drivers.
After Hours Returns–the procedures to follow when a vehicle rental will be
returned after hours.
Agreements/Contracts–this includes all the terms and conditions of the
vehicle rental.
Border Crossings–some car rental policies have restrictions about taking the
rental vehicle into another country/state or province.
Cancellations/No Show Fees–what fees will be applicable in the event of a
cancellation or no show of a vehicle rental reservation.

Credit Identification–car rental companies will often require payment by credit

card so that in the event of damage to a rental vehicle or fines/fees incurred by
the renter during the rental period that are not disclosed at the time of the
return of the vehicle, the rental agency may claim for these costs on the credit
card.
Deposits–sometimes a rental agency will hold a deposit on the credit card at
the beginning of the rental period to ensure payment may be processed and
accepted by the credit card company when the vehicle is returned.
Disabilities or Special Needs–this information will cover any changes to the
basic rental policy and special equipment programs for renters with special
needs.
Driver's License–renters must have a valid driver's license and in some cases
an international driver's permit may be required.
Fuel–outlines the charges that will be incurred if the vehicle is not returned full
or gas or what “fuel purchase options” are available.
Minimum Age–how old must the renter be to rent a vehicle. Some rental
companies have a minimum age requirement or charge higher fees for younger
drivers. Or there may be age restrictions on the make/model of the vehicle
being rented.
One-way Rentals/Drop Off Charges–outlines if one-way rentals are permiss-
ible and if so what drop-off charges are applicable.
Pets–whether or not pets are allowed in the vehicle and what condition the
vehicle must be returned in.
Pick Up Service–whether the rental agency offers a free pick up service and if
so from what “local” area.
Rental Extension–what needs to be done if the return date on the rental
needs to be changed?
Taxes/Surcharges–this is a list of all taxes, surcharges and additional fees
that may be applicable for the vehicle rental.
Towing–outlines if the rental vehicle may be used to tow a boat or trailer.
Maintenance
The major car rental companies operate fleet quality programs. They check
their vehicles after each rental.
Normal wear and tear is included in the rental fees. However petrol is the
client's concern. Three ways of handling petrol costs have evolved over the last
few years and clients usually have a choice of scheme at the pick-up rental
location:
• Bring the tank back full
• Leave the filling up to the rental company and pay heavy extras (up to
100% more than the official petrol price) for the fuel required to refill the car
and for the convenience of this service
• Buy a tankful of petrol at a relatively low rate from the car rental company
at the beginning of the rental; what is left at the end of the contract belongs
to the car rental company

The client has to pay dearly for petrol service provided by the car rental firm.
However, he may not find a petrol station shortly before returning the car or
simply has no time to do so before his flight leaves. It may be equally difficult to
estimate how much petrol remains in the tank and avoid running out of fuel
short of the final destination. In view of the fierce competition on rental fees, car
rental companies just have to make some money selling insurance and
refueling services.
Key Learning Point

To rent a car is more than just to arrange for a vehicle at a given place and time
for your customer: you have to check his or her credentials, consider special
requests regarding equipment and services, inquire about insurance needs
and point out how to handle the maintenance of the car.
Study Check 6.1.2
1. You arrange a rental in Russia. Do you recommend a Collision Damage

Waiver (CDW)?
(a) Yes
(b) No
2. Upon return, one of your customers complains that he did not get a refund
for the petrol left in his car at the end of the rental. Should he expect a
refund?
(a) Yes
(b) No
3. It is not necessary to advise the car rental company how many people will
be driving the rented car. TRUE or FALSE?
(a) True
(b) False
4. CDW stands for .

(a) Complete Driving Waiver
(b) Collision Damage Waiver
(c) Collective Driving Waiver
(d) Car Damage Waiver

5. To truly enjoy a driving holiday the customer should .

(a) avoid buying any car rental insurance
(b) buy more insurance than is necessary
(c) purchase PEI and CDW insurance only
(d) buy insurance options to cover all risks
6. Which insurance coverage pays benefits in the case of death or injury to

others or damage to another persons' property?
(a) Third-party Liability Insurance
(b) Personal Accident Insurance
(c) Collision Damage Waiver
(d) Loss Damage Waiver
7. Insurance that protects rental vehicle passengers and the driver for
medical costs due to injury from an accident is
called .
(a) Third-party Liability Insurance
(b) Personal Accident Insurance
(c) Collision Damage Waiver
(d) Loss Damage Waiver
6.1.3 How and Where Car Rental is Distributed

Rental cars can be booked through several ways:
• travel agents
• airline offices
• car rental offices and their Web sites
• mobile apps
Direct customers can book their cars directly by walking in at rental locations,
calling the reservation center or now, increasingly often, through online car
rental sites or downloadable mobile apps.
Travel agents use specific regional or national “toll-free” numbers provided by
car rental companies, Airline Computer Reservation Systems (CRS) and
Global Distribution Systems (GDS) featuring car rental.
When car rental is part of a package deal, bookings will be made by the tour
operator for the client and the retail travel agent acts as an intermediary only.
Car rental offices serve both the walk-in client without a reservation as well as
customers with firm bookings.

Car rental offices are located at all international and most regional airports
throughout the world as well as in city center locations. In a number of
countries, particularly in Europe (e.g. Germany, Great Britain and Switzerland),
rail-drive offices or counters are part of many major railway stations. Large city
hotels and big holiday resorts feature car rental desks manned at certain hours
of the day and or certain days of the week.
Booking is made even easier through mobile apps that can be downloaded
from major car company websites and allow member clients the ability to see
real-time inventory available at select airport locations, then choose and
reserve the specific car they wish to drive. The use of the mobile app expedites
the rental process by offering counter bypass and access to an exclusive
section of the car lot where member clients can select any vehicle that is a
mid-size car.
Some mobile apps include the following extra features:

• rental tracking,
• profile management,
• rental facility locator,
• single location for travelers to manage their rentals.
Key Learning Point

As an agent you have two direct links to your car rental partners: “toll-free”
numbers and computerized systems for inquiries, quotes and bookings. Car
rental as part of a package is usually offered by tour operators.

Apply Your Learning

Next time your clients wish to book a flight only, enquire how they will travel
from their homes to the airport and from the airport of arrival to the final
destination. If applicable, propose car rental for one or both portions of their
trips.
One-way car rentals from provincial towns to major airports are common and
often a bargain for the client. Firstly, the car rental companies will get their cars
cheaply back to the most frequent pick-up point (the airport). Secondly, your
client will not have to pay the often expensive parking fees at the airport. And
thirdly, the family who stayed home will still have use of the family car during
the client's absence.
6.1.4 Unit Summary

Car rental agencies primarily serve customers who require a temporary vehicle
for a variety of reasons–from travelers from out of town seeking adventure to
those passengers who need to visit places where no air transportation is
available. Cars come in a wide variety and with lots of different amenities to
serve the needs of your clients (Section 6.1.1). If you want to fulfil these needs,
ask pertinent questions before contacting the car rental firm through the
various communication channels available (Section 6.1.2). This procedure
assures your client the correct type of car at the right place and time
(Section 6.1.3).

6.2 The Car Rental Procedures
• Ask the right questions when advising a customer on car rental

(Sections 6.2.1 and 6.2.2).
• Identify the correct price for rental, insurance and other amenities
(Sections 6.2.3 through 6.2.5).
Unit Learning • Identify the necessary information to initiate a car rental booking
Customers using the services of a travel agent are usually looking for advice.
Asking the right questions forms the sound basis for an efficient booking
procedure and a happy client.
Car rental as part of many business and leisure trips can respond like no other
means of transport to very individual needs. A detailed analysis of the
customer's wishes is therefore essential for good service. However, the client
has to qualify for car rental and to pay for the car as well as the services. To
quote a correct price may be tricky given all the extras that might apply on top
of the rental prices quoted in advertisements and brochures. In this highly
competitive business car rental companies have devised a number of fidelity
and discount programs to gain repeat clients. The forms of payments may vary,
however; an international credit card is essential for carefree rentals and may
come in handy to guarantee bookings.
6.2.1 Ask Questions

When clients indicate a need for renting a car, the first step is to have them
specify whether this is for business or leisure travel.
6.2.1.1 Business Travel

• Is your customer a member of a car rental company fidelity or membership
program?
These programs include benefits such as Special Rate Programs, In-
surance Benefits or Personalized Rental Profiles.
• Does the company of your customer have a corporate agreement with a
rental company?
Usually, there will be a membership number or an account code that you
must include in the reservation record to trigger these special benefits.
After this you may proceed to find a solution for the individual's requirements:
• What distances will you cover?
The longer the drive, the higher should be the level of comfort of the car.
• Will you carry heavy bags or samples?
The answer determines the size of boot or choice of station wagon.
• Does prestige play a vital role?
Depending on the answer, there is a wide choice of make, appearance,
size and even color of vehicle.
Unit 6.2: The Car Rental Procedures 519

Other points to ask include amenities, extras and comfort on board:

• Do you want a car with air conditioning?
This is particularly recommended in countries with a hot and humid climate.
• Would an automatic drive make your trip easier?
An automatic drive relieves the driver from shifting gears and thus enables
him or her to concentrate on traffic and signposts. It is also recommended
when the client is not used to driving on the other side of the road.
• Is a car phone of help?
Although many business travellers may possess a hand-held telephone, it
is not necessarily compatible with the foreign country's network.
Note: This list is by no means exhaustive. Check your manual or the CRS/GDS
for all possible extras available.
Key Learning Point

Advice on car rental for business travellers considers comfort, convenience
and prestige.
6.2.1.2 Leisure Travel

• How many persons will travel with you?
This will suggest the size and comfort of the car to chose.
• How much luggage will you carry?
This gives an indication of the size of boot needed and may indicate the
need for a station wagon or van instead.
• How big is your budget for travel?
Lots of money can be saved by cleverly applying discounts for pick-up/set-
down of car at the same location, selecting a fixed rental period, looking
into the availability of package deals offered by a tour operator and
choosing vehicles with fewer amenities.
• Do you have a need for special equipment?
This may include children's seats, roof racks for sports equipment (skis,
boards etc.) and winter equipment (snow tires or chains).
• Would an automatic drive make the holiday for the driver more relaxing?
Note: This list is not exhaustive. Check your manual or the CRS/GDS for a list
of all possible extras available.
Key Learning Point

Advice on car rental for leisure purposes considers size of vehicle, ease of
travel for all on board, price and special equipment.

6.2.2 Driver Qualifications

The following qualifications have to be met by your client before you can
proceed to a booking:
• The client has to be 25 years of age (there are some exceptions where
drivers aged 21 plus are allowed against a daily surcharge of about USD15
and a few where drivers over 75 years are excluded from rentals).
• The client must have a valid driving license. Car rental companies
recommend that their clients also obtain an International Driving Licence.
This is not really a license but a document that translates the driver's
license into several languages. It is normally issued free or for a nominal
fee by the client's national automobile association.
• The client should have passed the driving test at least one year or more
before the start of the rental.
• The client should be in possession of a valid international credit card. A
credit card guarantees the car rental company the payment of any damage
not covered by insurance. It also covers any extra costs such as petrol that
are not covered by prepaid vouchers issued by the travel agent or tour
operator.
Key Learning Point

There is a minimum and a maximum age for car rental. Your client should
always hold a credit card to secure costs that cannot be covered at the time of
the reservation and the issuing of a voucher.
6.2.3 Calculating Car Rental Costs

Car rentals are calculated on the basis of length of rental and distance driven.
6.2.3.1 Time Patterns

• Daily: A daily rental is considered a period of 24 hours, e.g. 11:00 hrs. of
day one to 11:00 hrs. of day two.
• Weekends usually extend from Friday afternoon/evening to Monday
morning.
• Weekly rentals are considered by a number of companies as a 5 to 7 day
rental. An early return is usually not eligible for a discount on the weekly
rental charge.
• Monthly rentals are considered by a number of companies as a 25 to
31 day rental. An early return is normally subject to re-pricing at a weekly
and/or daily charge.
• Package: This is usually an all-inclusive rate that cannot be broken down
into day charges.

Apply Your Learning

Compare daily and weekly rates for your most popular car rental destination
and work out the discount for reservations of five, six and seven day rentals
when taking advantage of a fixed weekly rate. Find out whether there are car
rental offers by tour operators that match the car rental company's prices or are
lower. Work out what you will offer your next client bound for this destination
who wishes to rent a car for one, three or seven days.
6.2.3.2 Distance Patterns

Car rentals are furthermore calculated on the basis of driven mileage, usually
offering these options:
• Every mile/kilometer has to be paid for in addition to the time element
mentioned above.
• A fixed number of miles/kilometers is included with the booked time span
(e.g. 200 miles for the total duration of the rental or 100 miles per day of
rental; however there will be no deduction in the rental fee if the agreed
“free” mileage is not used).
• Unlimited mileage/kilometers is/are included in the rental agreement.
The cost of rental per day decreases as the length of the rental period
increases. One-way rentals (picking the car up at one location and handing it
back at another) often have an extra fee.
Note: There may be a difference in costs for a car in the same category
depending on its transmission type, i.e. automatic or manual. In Europe,
manual is standard for most vehicles, therefore an automatic car is more
expensive; in North America most cars have automatic transmission.
The following costs (which might occur during a trip and have to be paid by the
customer on the spot) are not part of the car rental contract:
• toll fees for bridges, privately operated roads and ferry crossings
• parking charges
• trans-border crossing fees
Fines for speeding or other traffic violations, particularly illegal parking, are to
be paid by the customer.
Key Learning Point

Car rental tariffs are based on 24-hour and longer rentals. All extras incur
additional costs.
Study Check 6.2.3
1. Your client wants a car for six days and will return it to the same location.
Which rate do you suggest?
(a) 6 consecutive days
(b) A weekly rate
(c) A package rate

6.2.4 Car Rental Discount Schemes

There are many discount, fidelity and membership schemes in the car rental
industry.
Note: Only one form of discount is normally applicable to a rental. Some
promotional schemes exclude other discounts.
6.2.4.1 Corporate Discounts

Large firms and corporations often have bulk agreements with car rental
companies and therefore enjoy discounted corporate rates. A Corporate
Discount (CD) number is used to access the details in the reservation system.
The number has to be mentioned by the client when booking a car. Corporate
negotiated rates often include hidden benefits such as free upgrades or free
delivery. It is therefore in the customer's interest to use this corporate
negotiated rate rather than shop around for a cheaper rate, as the cheaper one
may not include such benefits.
6.2.4.2 Memberships
Members of Frequent Traveler Programs sometimes enjoy special rates and/or
other benefits. Their membership card bears the required access code.
Members of clubs such as the American Automobile Association (AAA) and its
partners worldwide receive discounted rental fees. Details are stored in the
CRS and GDS.
6.2.4.3 Partnerships
Car rental companies and airlines—in some countries railways, too—join up in
special deals to give reductions on the car rental, provided the client picks up a
car directly following a flight or a train journey.
6.2.4.4 Upgrades
Car rental companies themselves offer branded products to the business
traveler at standard rates. These offers usually include special features such as
upgrades or free days. These deals are usually part of a contract negotiated
directly with companies whose employees rent cars frequently.
6.2.4.5 Bulk Discounts

In the field of leisure travel tour operators have bulk agreements with car rental
companies. It may be worthwhile to check their selling rates even for business
clients (unless they benefit from corporate negotiated rates as explained
above). In the case of rentals of three and more days and a car return at the
pick-up point, the leisure option may be cheaper than any other discount.
6.2.4.6 Restricted Offers

Car rental companies offer branded products through tour operators for
individual leisure travellers at reduced rates. They often are based on weekly
rental periods and contain a number of restrictions (e.g. no one-way rentals,
limited availability, early booking required).

6.2.4.7 Qualifiers for Discounts

CRS and GDS display standard and promotional rates (and the same applies
to printed material and rates quoted by calling “toll-free” numbers, if available)
unless you request another rate type. Here is a summary of these rate types,
which often require “qualifiers” that you have to check before booking:
Rate Type Qualifications

Credential Airline Ticket or Coupon
Business Evidence of employment at a company with a corporate
agreement applicable to pleasure travel
Corporate Evidence of employment
Industry Rates available to members of the travel industry such as
travel agents and airline personnel
Standard General public rate
Promotional Seasonal and/or product related
Package Available in conjunction with other travel products such as
hotel stay and/or cruise
Government Available to employees of or people related to govern-
mental agencies
Association Restricted to Automobile Association members only
Convention Available to members/attendees of conventions
Table 6.2.1—Rate Types
Note: It is important that you be aware of the fact that all these discounted
fares still qualify for travel agent commission (logically with the exception of the
Industry ones).
Apply Your Learning

Note down your regular customer's memberships or other reasons justifying
car rental discounts. This will save you asking the same administrative
questions over and over and make certain that you will not forget it when
making a reservation.
Key Learning Point

There are three main reasons for tariffs cheaper than the published rack rates:
bulk agreements, membership in particular associations and employees of
specific organizations.
6.2.5 Deposits and Payments

Car rental requires the possession of an international credit card. This will
cover all rental costs and be debited at the end of the rental to the client's credit
card account.
Prepaid Vouchers (see further down) alone are not sufficient for payment. They
cannot cover extra costs or damages not covered by insurance that may occur
during the rental.
By prior agreement some car rental companies will accept deposits and
payments in the form of traveller's checks or cash. But these forms of settling
the charges are less and less popular and no longer recommended to use.

6.2.6 At Last: The Booking Procedure

The reservation procedure consists of three steps:
6.2.6.1 Get the Information

Before you call the car rental company's “toll-free” number or you access the
CRS/GDS, request from the customer the following information, which will also
be used for the voucher (see Figure 6.2.1):
1. Customers membership number (if applicable)
2. Corporate Agreement number (if applicable)
3. Family name and given name of renter
4. Rental location
5. Return date
6. Rental length expressed in days
7. Return location
8. Special remarks (for instance, baby seat)
9. Car group
10. Your IATA or Travel Agent Identification number
Furthermore, you need to enquire how the payment will be made:
1. Customer's credit card (you then need a referral to receive your com-
mission)
2. You pay for the rental (you need a voucher)
Figure 6.2.1—Car Rental Voucher
6.2.6.2 Reserve the Car

Make the reservation with the car rental company through the CRS/GDS or a
phone call to the specific “toll-free” number.
6.2.6.3 Issue the Voucher

Fill-in the voucher, hand it over to the client and have him pay the appropriate
value
You are now responsible for all car rental fees for up to 30 days of rental, if you
establish a full value voucher for your customer.

There are various types of voucher values, which are detailed in Table 6.2.2.
Voucher Type Voucher Specification

Full Credit You as the issuer of the voucher will accept all
charges for the rental (i.e. you will charge your client
only after receipt of the car rental company bill has
arrived)
Nil Value The Renter must pay locally all charges for the rental
(and you will subsequently be credited with your
commission)
GBP 75.00 You may enter any specific value (and currency) that
has been paid by the renter to you. Renter must then
pay locally all charges above this value.
Group/Days For Tour Programs only: Renter must pay locally all
charges in excess of group/days/services booked.
Table 6.2.2—Examples of Voucher Values
Note: Should your client want a reservation only (and makes no prepay-
ment/deposit), there exists an industry-wide Rent-a-Car Referral. For an online
sample referral form, see www.enterprisecarsales.com/referral.
6.2.6.4 Your Commission

As a referral agent, your job is simply to refer potential customers to the
sponsoring rental agency. Get clients to call a toll-free number where the
company's inside agents take care of closing the sale and handling the
booking. In exchange for providing this referral, you receive a portion of the
commission earned by the agency.
With your agent number in the relevant box of the Rent-a-Car Referral the
rental company can trace you and retroactively credit you with the commission
due to you.
At the end of all rentals (with the exception of a “Full Credit” Voucher as
mentioned above) the customer settles all his extra costs directly with the rental
company (usually by international credit card). Following the total settlement of
the rental, you will receive your commission by the agreed method (bank
payment, check, etc.) from the car rental company.
For a sample application form online, see
www.royalrentacar.com/Partner_SignUp_TravelAgent.aspx
Key Learning Point

Knowing your customer's needs is the prerequisite for an efficient booking. You
always get your commission when you provide your client's referral with your
agent number.

Apply Your Learning

Work out which fly-drive arrangement will earn more commission for you:
• Selling a weekly rate from the car rental firm and a flight from an airline or
• Selling a weekly rate offered by a tour operator as part of a fly-drive
package.
Which one will you offer to your customer?
Provided that both offers are comparable (i.e. same type of car, same flights) or
at least similar and to the liking of the customer, you may suggest the less
expensive package to the client. As a good sales person, however, you may
suggest the one with the higher overall commission, and this particularly when
both offers are equally priced. In most cases, the commission paid by the tour
operator will be higher than the combined commissions of the car rental
company and the airline.
6.2.7 Unit Summary

You have learned to ask your client all relevant questions for processing a car
rental reservation for both, business and leisure travel (Sections 6.2.1 and
6.2.2). Car rental costs are based on length and distance (Section 6.2.3). There
are lots of membership schemes possibly qualifying your client for discounts
(Section 6.2.4). Deposits and payments should be covered by vouchers and/or
international credit cards (Section 6.2.5). For your work you are eligible for a
commission (Section 6.2.6).

6.3 Hints for Your Clients En Route
• Pass along advice to your client before (Section 6.3.1), during

(Section 6.3.2), and after (Section 6.3.3) a trip in a rented car.
6.3.0 Unit Overview

Unit Learning In the course of using a rental car there are three distinct stages:
Objectives
• before departure
you will be able to: • during the journey
• after the trip
6.3.1 Ahead of the Trip

Here is some advice to pass along to first-time clients or to customers who may
ask you specific questions and will feel at ease if you answer them properly.
6.3.1.1 Picking-up the Car

Picking-up (and returning) cars at large airports can be tricky and time-
consuming. “Free Shuttle” buses usually take clients to and from the car
compound located outside the airport limits. The process may take up to two
hours in either direction.
Members of car rental “Loyalty Programs” may go through the process speedily
by reducing or eliminating the need to fill in forms and by not having to wait for
the final bill. However, the transfer time from airport terminal to rental location
and back remains the same.
Advise clients to allow for this processing time, particularly on the return leg
when this has to be added to the usual check-in time requested by the airline
and airport authority.
When picking-up the vehicle, the renter has to present an identity document.
Abroad, usually the passport will do. Within one's own country, the driving
license is good enough.
6.3.1.2 Car Delivery

Cars may be delivered to a client's hotel or office within a certain radius around
a car rental location. However, this service must be arranged at the time of
reservation and may be subject to an extra charge.
6.3.1.3 Preparing for Setting-off

Car rental companies provide area maps and basic country maps, usually free.
Sophisticated companies feature Computerized Driving Directions at major
locations with helpful printouts. Some cars in North America are already
equipped with Global Positioning Systems (GPS) providing turn-by-turn driving
directions for an additional fee.
Note: Only a few car rental locations run a 24-hour service. Make the customer
aware of the opening times and if needed, arrange a pick-up and return outside
official hours.

6.3.2 During the Journey

Driving very long distances may be tiring and/or boring. However, there are a
few ways to get around this.
6.3.2.1 Car Trains

In North America and Europe, including Great Britain, overnight car trains (and
a few day ones) exist, with sleeper/couchette/seating accommodations and
covering 600 to 1000 kilometers in one trip and thus easing the burden of
traveling on often heavily congested motorways and roads. For details refer to
the Rail sections in this course.
6.3.2.2 Car Ferries and Car Shuttles

Car ferries exist over waters (see Ferry chapters) and car shuttle trains cross
mountains in tunnels particularly in the European Alps. Clients wishing to take
a car across The Channel from Great Britain to the Continent or vice-versa
have the choice of ferries and the Channel Tunnel “Le Shuttle” car trains.
However, advise your clients that driving in the U.K. is on the left and on the
Continent, driving is on the right. It is safer to drop off the rental car on one side
of the Channel and pick up another car on the other side. This will allow the
driver to have the steering wheel on the correct side in both places.
6.3.2.3 Emergencies and Accidents

An emergency 24-hour “toll-free” number is usually provided by the globally
operating companies for immediate help. The customer finds the details on a
sticker on the windscreen and/or in the glove compartment and certainly on the
rental papers. Most companies are members of the respective national
Automobile Association, which in turn will send a mechanic for breakdowns.
Police must be called to accidents even if no one is physically harmed.
6.3.3 After the Trip

It is often possible to return a car during closing hours by noting date, time,
mileage, petrol gauge reading and fuel purchase on the rental folder and
depositing it together with the car keys in the return boxes provided. However,
this applies only to customers who have agreed to pay all charges by
international credit card and do not need an immediate receipt.
Key Learning Point

To pick-up and return a rental car is a time-consuming process. Advise your
customers accordingly and help them to plan adequate travel timings.
Unit 6.3: Hints for Your Clients En Route 529

Study Check 6.3.3
1. The flight of your customer will depart from Kuala Lumpur at 18:30. At what
time should he or she plan to arrive with the rental car at the perimeter of
the airport assuming a check-in time of 60 minutes?
(a) 12:30 hours
(b) 15:00 hours
(c) 16:30 hours
6.3.4 Unit Summary

In this Unit you have learnt how important it is to guide your customer through
the three stages of car rental. Picking up the vehicle may be a time consuming
affair as much as bringing it back (Section 6.3.1). When driving, there are
possibilities to ease the stress of travel by putting the car on trains and ferries
(Section 6.3.2). Finally returning the car is easier if you have prearranged
payment by an international credit card (Section 6.3.3).

6.4 Camper Van Rentals
• Describe the advantages and disadvantages of camper van holidays

compared to fly-drive packages (Section 6.4.1).
• Advise clients when choosing a camper van holiday (Sections 6.4.2
through 6.4.4).
Unit Learning • Initiate bookings with tour operators and camper van companies
Camper van rentals vary in many aspects from car rentals. This chapter is
based on what you have learned about car rental and points out the many
differences between car and camper van rentals.
6.4.1 Why Camper Van Rentals are Different?

Camper van rental requires timely and intensive counselling and advice. It is
rewarded with a considerable commission, and therefore, is worthwhile.
However, why does camper van rental vastly differ from car rental?
6.4.1.1 No Global Player—No Direct Rentals

The first indication that camper van rentals must widely differ from Car Rental
is that none of the globally operating car rental companies offer camper vans!
Not surprisingly, there is no global player in the camper van trade.
There is no camper van offer in any CRS or GDS (other than in the form of
packages put together by tour operators).
All rentals outside the camper van company's home territory, therefore, are
done through designated agents and tour operators. They, in turn, often have
free-sale agreements, where the agent may sell without to have to check the
availability first. On-line bookings between representatives and the camper van
headquarters are rare, as only a few representatives are linked up by modems
with the rental firm's own in-house computer reservation system. In many
cases, the tour operators and representatives still communicate by fax and
more recently by e-mail with the van rental companies.
Note: Information on camper vans can be found on the Internet, but there is no
direct sale to the customer through this medium yet. (Keep checking. This will
change sooner or later…).
Unit 6.4: Camper Van Rentals 531

Figure 6.4.1—Sample of Backpacker Camper Van Hire
6.4.1.2 Different Pricing

There is no last minute business and therefore no price dumping. However
there are huge seasonal differences in price peaking during the summer
periods. Note that Northern and Southern Hemisphere peak seasons do not
coincide!
Early reservations (about six months ahead of pick-up) can qualify for a
considerable reduction in price. They usually guarantee the availability of the
chosen van type.
Price comparisons between different camper van companies are worthwhile
and may save the customer a considerable amount of money.
Older vehicles are less expensive to rent than new ones.
Long-term rentals often qualify for discounts, additional free miles or reduced
extra miles.
Camper vans guzzle up petrol in large quantities: 30 to 35 liters per
100 kilometers are normal. This adds to the total costs, given the long
distances, but is partly counterbalanced by relatively low petrol prices in
several typical camper van countries.
6.4.1.3 Different Qualifications

Surprisingly the minimum age for camper van rental is only 21 years (against
usually 25 for car hire) The rental period is often counted by calendar days:
pick-up and drop-off days count as full rental days. Watch out for this, as some
companies in North America may use the system used in car rental.
Basic collision and damage insurance is always included, however, with a large
excess of up to USD3000. For a fee, it can be reduced but usually only to
USD100 to 200 (and not to nil).
Roof and undercarriage damages have to be insured separately.
Camper vans are not allowed off road, and some roads may be out of bounds
during certain periods (e.g. Death Valley during July and August). Four-wheel
drive camper vans exist in Australia and Southern Africa. They may be driven
off-road on designated tracks.
Travel from the U.S. over the Mexican border is possible with some rental
companies provided one is willing to pay extra insurance.

Key Learning Point

Camper van hire differs widely from car rental. Attention to details is necessary
as your client will travel and live in the vehicle during his or her vacation.
Particular consideration has to be given to space on board and finding the right
price for the customer's budget.
6.4.2 Where do Camper Van Holidays Happen?

Where is camper van rental most popular? It is in North America, Australia,
New Zealand and more recently in South Africa and its neighboring countries.
In Europe, Scandinavia leads. Why these continents, regions and countries?
They are all spacious. Even in town centers parking is basically no problem.
Roads are wide and the car is the major mean of transport for the locals! And:
infrastructure in the form of large and well-equipped camping grounds is
abundantly available.
Most camper vans need to “fully hook-up” for electricity, fresh water and
sewage. Many of these campgrounds offer fire-places for barbecues and
provide wooden tables and benches, sanitary facilities, self-service washing
machines, some sort of shopping for daily needs and a swimming pool.
Note: In North America, camper vans are often called “RV”s, meaning
Recreational Vehicles.
Figure 6.4.2—Scene from a Typical RV Park
6.4.3 Who Goes for Camper Van Vacations?

“You either like it or not—there is no in-between”, claims the expert. Families
with children and younger couples tend to be the typical camper van renter.
And anyone who likes the outdoors and is not keen on the “pack-unpack”
challenges of the traditional driving holiday.
Key Learning Point

Camper van rentals are for mobile and flexible people who like easy-going
holidays mainly in the outdoors.

6.4.4 Knowing Before Booking

The number of people traveling together determines the size of the camper to
choose. As a rule, there should be two berths more than there are passengers.
This is for the sake of some freedom to move around. More than six people to a
camper van should be discouraged as it gets too cramped. To increase comfort
and space overnight, bringing a tent may prove to be a valid proposition.
Clients can furthermore gain extra space by cleverly packing the luggage at
home including soft bags that can easily be stowed away. If the renter is to
return the camper van to the pick-up location, suitcases may be left there for
storage during the holiday.
All camper van sizes can be driven with a normal driving licence. They all have
power steering and automatic transmission. However one has to be aware of
the length, width and particularly the height of the van, which might be unusual
for most of the first-time drivers. Driving down long and steep gradients may
lead to overheated brakes. In these situations, it is therefore recommended to
drive in low gears.
Apply Your Learning

Next time a client shows up and seeks advice on how to best explore one of the
typical camper van destinations, propose a camper van holiday instead of a fly-
drive package. Your client may never have heard about the advantages of this
way to experience countryside and local people.
Key Learning Point

Camper vans can be driven by all driving license holders. However, particular
attention has to be paid to the size and weight of the vehicle.
Study Check 6.4.4
1. You have a family of six (three adults, two children and one toddler) who
eagerly want to rent a camper van for two weeks in South Africa. What size
camper van do you recommend?
(a) A van with 8 berths
(b) Two vans with 4 to 6 berths each
(c) A van with 7 berths
(d) A van with 8 berths and a tent for 2 to 3 persons
6.4.5 From Pick-up to Drop-off: Requirements and

Options
Camper vans are usually picked up during fixed hours, which are often shorter
than local office opening times. Some locations may even be closed on
weekends. The pick-up procedure including personal instructions and individ-
ual van checks lasts up to two hours. In high season and on particularly busy
days some additional time for waiting has to be added. As a rule camper vans
are picked up the day after one's arrival; a night at a local hotel is standard.
When actually picking up the vehicle, it is important to carefully check the body
for damages and have them registered. Otherwise the client is liable for all
damages and losses at the end of the rent.

To fully equip a van, the customer has to purchase a mandatory Starter Kit
which includes:
• The preparation and hand-over fee
• Transfers from the hotel to the van compound at the beginning and back to
the hotel at the end of the rental
• A full bottle of Propane gas for hot water and heating
• Chemicals for the toilet
• Pots and pans
• First Aid Kit
The charge for a starter kit is USD50–80 per vehicle.
In addition there is an option for a Convenience Kit, including items such as
bed linen, towels, dishes and cutlery. This kit comes at USD30–35 per person.
Additional equipment for outdoors use such as chairs, tables, sunshades and
on-board equipment such as irons and toasters can be rented at an additional
fee. These items should be booked with the vehicle. However, some firms will
not guarantee their availability.
Upon pick-up a deposit has to be left with the rental company for possible
damages and extra costs. This can be done by leaving an imprint of your
customer's credit card. The level of the deposit can be reduced by buying
additional insurance to minimize the insurance excess.
Camper vans have to be returned on time and cleaned (including the emptying
of the sewage water tank) at the prearranged location. The petrol tank should
be full.
Some rental companies run courtesy transport back to the nearest airport or
hotels in the neighbourhood.
Study Check 6.4.5
1. What is the optional household kit called?

(a) Pots and Pans Kit
(b) Convenience Kit
(c) Household Helpers
6.4.6 Helpful Hints for a Camper Van Holiday

One-way rentals exist but, with the exception of Australia, are penalized with a
heavy fee.
Camper vans are normally equipped with powerful engines and therefore daily
overland driving distances can be calculated similarly to car travel.
In city centers, however, it can get tricky and it is advised to leave the van on
the outskirts and use public transport for sightseeing.
Campgrounds with full hook-ups are very popular. Early arrival (before
16:00 hrs.) is advised and where possible advance reservations are rec-
ommended. This can either be done through advance bookings by the tour
operator or individually when en route and will then only be guaranteed against
a credit card number.

Typical nightly fees for a camper van are calculated according to the services
used. The basic fee includes the parking of a vehicle including two adults,
water and electricity. A link to a sewer is extra. Additional passengers are
charged a small fee and there is usually a differentiation between children and
adults. Some sites—depending on their geographic location and opening
periods—rent air conditioning and/or heating equipment.
Figure 6.4.3—Water, Sewer, Electric and Cable Connection
Key Learning Point

There is less flexibility with camper van rental than with Car Hire. It is important
to follow the routine of the camper van company, to book equipment in time
and fully check it when taking the vehicle over.
Study Check 6.4.6
1. In which areas is it not recommended to drive camper vans?

(a) On Motorways
(b) On off-road terrain
(c) In inner cities
(d) On mountain roads
(e) In one-way systems
6.4.7 Unit Summary

In this Unit you discovered the differences between car rental and Camper Van
rental—and the main difference is that you are renting not only transport but
also accommodation. There is a handful of mainly regional or national rental
firms not linked to any CRS or GDS (Section 6.4.1). Distribution is therefore
mainly through agents and tour operators. Qualifications for drivers and pricing
again are different and so are the pick-up and drop-off procedures, because of
the extra equipment to be checked out and returned (Sections 6.4.1 through
6.4.5).

Module Summary
In this Module you have learnt about the importance of car rental and camper
van rental to the economic well-being of a travel agent (Units 6.1 through 6.4).
You now understand the differences between the two modes of vehicle rental.
You should be able to listen to your customer, ask specific questions, advise on
the right mode of travel and the vehicle suiting his or her needs best. You can
call up any car rental and camper van reservation office through the
appropriate telecommunications and electronic means to book a car or van and
get it confirmed properly. You are aware of the complex process of pricing,
discounts and local payments by the client and of the commission you can
earn.
Module Summary 537

Review Questions
1. When is car rental the right means of transport?
(a) When the client is over 75 years of age
(b) When there is a lot of luggage to transport
(c) When the customer wants to explore a city
(d) When a client needs to travel 1200 kilometers a day
(e) When the client plans to visit many places in a given area or along a
certain route
2. Buyers of bulk rentals who resell to the individual travel agent are called:
(a) Tour Operators
(b) Brokers
(c) Bulkers
3. What does basic car rental include?

(a) A spare tire and a full petrol tank
(b) Amenities and services, insurance and maintenance
(c) Air conditioning and mobile phone
(d) Radio and TV
(e) Experienced driver, full bar and insurance
4. What is the Vehicle Matrix Code?

(a) A combination of the length, width and height of a car
(b) An abbreviation describing the acceleration and top speed of a car
(c) A combination of four letters describing specific car types so that they
can be booked worldwide
(d) The numeric combination of a digital car lock
5. Which one of the following insurance schemes does not exist?

(a) Collision or Loss Damage Waiver
(b) Theft Protection
(c) Drunken Driving Liability
(d) Personal Insurance
6. Why should your client attempt to bring a car back with a full tank?
(a) To speed up administration
(b) To save money
(c) To reduce the queue at the petrol pump of the rental office
(d) b and c only

7. Where will your client not find a car rental office?

(a) Regional airports
(b) Railway Stations
(c) City center hotels
(d) Zoos
(e) Football Stadiums
(f) Holiday Resorts
8. What are business travelers looking for in a car?

(a) Top speed
(b) Comfort and ease
(c) Roof racks
(d) Baby seats
(e) Prestige
(f) Automatic drive
9. Which combination of the following three qualifications is required for a car

rental?
(a) Valid driving license, 25 years of age, 165 cm in height
(b) Valid international credit card, valid driving license, age under 75 years
of age
(c) Have passed the driving test at least one year or more before the
beginning of the rental, be 25 years or older, hold a valid driving
license
(d) International Driving License, 25 years or over, valid international
credit card
10. Which of the following costs are included in the rental?

(a) Parking charges
(b) Normal wear and tear
(c) Petrol
(d) Toll fees
(e) Emergency services
(f) Membership of a national Automobile Association
(g) Parking fines

11. Which of the following rate types does not pay you a commission?
(a) Package
(b) Corporate
(c) Convention
(d) Industry
(e) Promotional
(f) Standard
12. For how many days are you responsible for the payment of a rental after
having issued a full value voucher?
(a) One week
(b) 30 days
(c) One calendar month
(d) One year
13. When your client has an accident without injuries, does he or she have to
inform the police?
(a) No
(b) Yes
(c) It depends on the size of the damage
14. Which three countries are typical camper van destinations?

(a) Switzerland, Austria and Croatia
(b) Costa Rica, Belize and Brazil
(c) USA, Sweden and Australia
(d) India, Indonesia and Malaysia
(e) Japan, New Zealand and Mexico
15. Which insurance coverage waives a car rental company's right to charge
the rental client for damages in the case of an accident?
(a) PAI
(b) TP
(c) CDW
(d) LDW

16. If involved in a collision while renting a car, the predetermined amount of

money a car renter must pay for collision repairs is called
a .
(a) liability
(b) refund
(c) waiver
(d) deductible


There are many books and brochures written about camper van holidays by
travelers giving individual advice on how to be organized and what to do during
the journey. They, however, reflect primarily personal experiences and may be
misleading when quoted to clients. Camper van holidays always bring to our
over-organized lives a grain of adventure and there is no reason not to keep it
this way!
Glossary
Insurance Excess: In the event of an accident, or damage to the vehicle, the
renter will be expected to pay a certain amount towards the total repair cost.
This is the renter's car insurance excess. The excess on the rental will depend
on the local supplier.
Liability: A type of insurance that covers the renter of a vehicle in the event
that damage or bodily harm is inflicted to persons or property outside of the
rental vehicle. Most liability insurances are rendered void in the case of driver
negligence, such as operating under the influence of alcohol or drugs.
Rental Agreement: The contract that is signed by the renter once the rental
counter is reached. Typically this contract is in both English and the native
language of the country and deals with requisites such as insurance coverage,
dates, car size and type, etc.
References
The best references for car rental are the Worldwide Directories published
annually by the global car rental corporations such as Avis, Budget, Europcar,
Hertz, National and a few others. They are free and full of the necessary details
for correct and efficient service to clients and prompt bookings with the firms.
The same information is contained in all the Global Distribution Systems and
can be viewed on screen or printed out.
Camper van rental being more regionally or nationally organized does not have
any global source of information. A fine tool for exploring camper van holidays
in general and in North America in particular is the annual KOA Kampgrounds
Directory including Road Atlas and Camping Guide. It can be ordered through
the Internet at www.koakampgrounds.com.


Study Check 6.1.1 1. c
1. b. Central city areas are normally well served by

public transport; traffic is very heavy and parking Study Check 6.4.5
everywhere difficult. 1. b. The Convenience Kit includes all the items that
make your client's camper van his or her home for
2. a. The road system is excellent, distances be-
the next few days or weeks.
tween major towns are reasonable and picking-up
as well as returning cars is easy given the high
number of rental locations between San Diego Study Check 6.4.6
and Portland. 1. c. It is advisable to leave camper vans at the
outskirts of large cities and use local public
Study Check 6.1.2 transport for sightseeing.
1. a. CDW is strongly recommended when renting a
car in Eastern Europe, and in some countries it is
compulsory, given road and social conditions.
Travel agent must always verify the exact rental
conditions either through CRS or with car rental
company directly.
2. b. None of the car rental schemes allows for
refunds on petrol left in the tank at the end of the
rental.
3. (b) False
4. b
5. d
6. a
7. b
Study Check 6.2.3

1. a or b. Check the weekly rate first with your
preferred car rental company and then shop
around in tour operator brochures to find out
whether there is a package that will suit your
clients needs and is cheaper than the weekly rate.
Study Check 6.3.3

1. b. It may well take the customer up to half an hour
to find the car rental compound, spend another
quarter of an hour to receive the receipt, wait ten
minutes for the courtesy shuttle bus which in turn
needs fifteen minutes to arrive at the right ter-
minal. That just leaves your client with a few
minutes before his or her check-in time for an
international flight.
Answer Key 543

Review 13. b. Your client always has to produce an accident

report signed by the local police so that the
1. Answers b and e are correct as no other means of insurance company will pay for the damages.
transport (i.e. trains and planes) offers the same
flexibility. 14. Answer c certainly is correct; the three countries
mentioned here are the traditional destinations.
2. b. Brokers buy in bulk from car rental firms and However, e is acceptable too as in these three
reprice the rentals according to demand by the countries there is a growing number of hook-up
retail agents and/or tour operators. campgrounds being built for camper van holidays.
3. a. Clients should check the petrol gauge and the 15. c
fully inflated spare tire in the boot.
16. d
4. c
5. c. Drunken driving or driving under the influence
of drugs invalidates most insurance covers.
6. d. Answers b and c are the right answers unless
the client has chosen the “Buy a tank full of petrol
and bring the tank back empty” scheme.
7. Answers d and e are highly likely to be correct.
However, most regional airports have a car rental
station, which might not be staffed around the
clock but cars will be ready if pre-booked. In
Switzerland, Great Britain and France, many rail-
way stations offer seamless train-rental car travel
connections.
8. Answers c and d are highly unlikely. The other
points may apply, but you better check individually
with each and every business traveler paying your
agency a visit.
9. Answer c is the only correct answer. a valid
international credit card is highly recommended
but not compulsory. An international driving
license alone is not good enough; it has to be
backed by the national driving licence.
10. Answers b, e, and f are correct. Usually emerg-
ency services are provided by one of the national
automobile associations and therefore car rental
companies are members and their fleets benefit
from the member-ship services.
11. Answer d is the right answer, but you as an agent
get a discount when renting a car for your
personal use.
12. b is correct.

Module 7:
Hotels Products and Services
Module Prerequisites • An understanding of the role of the travel agent in the travel and tourism
business environment.
Module, you should have: • Knowledge of the business activities that generate income for travel
agencies.
• Knowledge of the main business sectors of the travel and tourism industry.
• An understanding of the basic “5 A's” essential to a successful destination
(Accommodation, Accessibility, Activities, Amenities, Attractions).
• Identify accommodation needs and preferences expressed by different

types of travelers (Unit 7.1).
• Describe types of hotel products (Unit 7.2).
• Recommend hotel products to meet customer needs (Unit 7.2).
Module Learning • Utilize common travel and accommodation industry terms in hotel-related
Objectives conversations (Unit 7.3).
By completing this Module, • Interpret hotel information retrieved from printed and electronic resources
you will be able to: (Unit 7.4).
• Quote room rates from publications based on various rate structures
(Unit 7.5).
• Follow a five-step approach to making a hotel reservation (Unit 7.6).
• Explain common terms and conditions associated with booking hotel
rooms (Unit 7.7).
• Describe the different ways hotels encourage guests to keep returning to
their chain or brand (Unit 7.8).
Module Introduction
For travelers, accommodation or lodging is as important as transportation.
Every traveler arriving at a destination will need a place to sleep. In this
module, you will explore the many aspects of selling traditional hotel products.
Knowing the hotel product options available for your customers will make your
job easier. To do this, you must book the right type of accommodation to satisfy
customer needs. Exceeding the needs and expectations of your customers
promotes long-term loyalty and repeat business for your agency.
You will almost always book overnight accommodations for your customers.
We will concentrate on traditional hotel accommodations in this Module through
the following Units:
• Unit 7.1 examines the common accommodation needs expressed by
travelers and market segments.
• Unit 7.2 presents the types of hotel accommodations available by rating
and branding.
• Unit 7.3 provides an orientation to frequently used terms when making
reservations.
• Unit 7.4 outlines types of travel trade publications and other resources for
gathering hotel product information.
• Unit 7.5 discusses hotel rates and the factors that can affect price.
• Unit 7.6 explains the room reservation process.

• Unit 7.7 examines common conditions that hotel suppliers impose on

bookings. Communicating these terms and conditions to your customers
will help avoid unexpected problems when traveling.
• Unit 7.8 explains how loyalty programs work and how to maximize on their
benefits.
548 Module 7: Hotels Products and Services

7.1 Know Your Customers
• Describe the accommodation needs of all travelers (Unit 7.1.1).

• Compare accommodation needs for business and leisure travelers
(Unit 7.1.2).

Objectives
Most travelers share common accommodation needs. To help define travel
By completing this Unit, customer needs and offer the right products and services, we group people
you will be able to: together with similar needs and interests. This is called defining market
segments. People grouped in the same market segment share the same
perceptions of quality and value and tend to demand similar products.1 There
are thousands of market segments in the travel industry. For this Unit, we
classify travelers in two major market segments: business and leisure travelers.
You will learn to recommend different hotel products to customers within these
two segments.
7.1.1 Common Needs

Cleanliness and safety rank highly for all travelers. Other common require-
ments are:
• safe or convenient property location
• good value for price
• acceptable room quality
• suitable room type options
• attentive customer service
• convenient check-in and checkout
• facilities and services such as restaurants, internet access, fitness equip-
ment, swimming pools, business center, meeting rooms, etc.
• positive reviews from past guests
These requirements are not listed in order of importance. The importance will
vary according to the type of traveler. For example, business travelers may
choose a hotel based on the facilities and services available, while leisure
travelers may consider price more important.
Unit 7.1: Know Your Customers 549

Location All travelers want to be conveniently located for

the purpose of their visit. Business travelers will want a
location that is convenient for both them and their cus-
tomers, such as near the office, factory, or meeting place
where they will conduct business. Or they may travel to an
event such as a convention or training, and their accom-
modations must be conveniently close by.
Leisure travelers will want to be near major attractions

such as museums, shopping, theme parks, beaches,
mountains, etc. Your customer may be attending an event,
such as a family gathering and will need accommodations
nearby.
Price/Value Relationship The room rate must be fair and

match with the services available and the room quality.
Leisure travelers tend to worry about price and value for
money. It can be the same for some business travelers.
Company travel budgets are smaller than they used to be
and there are more small-business travelers who are price
sensitive. But customers may accept to pay more for an
extra service, convenience or experience. For example,
hotels succeed in selling high-priced suites by promoting
the additional value of premium services or luxury. A
leisure traveler may accept to pay more for a hotel room in
a premium location because they can walk to attractions
and save car rental or taxi costs.
Room Quality Travelers care about the condition of the

room they pay for as well as the availability of amenities.
The room facilities must be clean. Rooms should regularly
be updated and tastefully renovated. In today's hotel
market, it is rare to find a room without a telephone,
television, or Internet access. They may expect bathrobes,
hair dryers, high quality soaps, lotions and shampoos, and
complimentary tea/coffee in the room in a high-end hotel.
Some other qualities room guests value can be:
• adjustable room temperature
• a sound proof room
• ample closet and drawer space for clothes
• rust-free bathroom tub, sink and toilet
• extra pillows and blankets

Room Type Options Business and leisure customers may

need specific room options. Families or travelers sharing a
room may request accommodations with two beds. Cus-
tomers traveling for a special occasion, such as a wedding
or a concert, may want more room space and reserve
suites or larger rooms.
Attentive Customer Service Customers demand excellent

customer service today. Many hotel properties adopt a
customer-centric approach and train employees to antici-
pate customer needs. This way, employees are prepared
to ask the right questions, offer information and solve
problems.
Convenient Check-in and Checkout The traditional check-

in and checkout method for guests is a visit to the front
desk to register for a room on arrival and pay the hotel bill
when departing. The check-in and checkout processes
should be quick and take no more than a few minutes.
Many hotels offer express check-in and checkout options.
Phone apps are now available for some hotels offering the
ability to check-in online, 24 hours in advance, similar to
airlines. Most require the guest to pick up the room key at
the front desk. Some will turn the phone into the room key,
allowing the guest to bypass the front desk completely.
Likewise, there are different express checkout options:

• Phone App: Guests can checkout online the same
way they check-in online. The hotel statement with a
list of charges is then sent to them by email.
• Drop-off box: Guests place their room keys in a box
located in the hotel lobby upon leaving the hotel. The
hotel statement with a list of charges is then sent to
them by mail or email.
• Hotel TV: Guests can check out on the guest room
television that provides an interactive checkout
process.
• Printed Folio: A full list of hotel charges is printed and
slipped under the guest's room door the night before
they check-out. The hotel guest has time to review the
charges before checking out, saving time at the front
desk.

• Smart card: A smart card contains the customer's

entire information on a microchip. Most credit cards
have chips. The guest simply inserts their credit card
or other type of smart card into a machine in the hotel
lobby. The machine encodes the card as a “key” and
assigns a room to the customer. The customer then
uses the card as a key for the electronic door lock and
all billing is automatically charged to the credit card.
Not all customers want to use express checkout systems.

Some prefer to queue up and check out at the front desk
because they may:
• be nervous about using unfamiliar, high-tech systems;
• have new charges such as breakfast or telephone calls
just before check out;
• want to be sure their hotel charges are up-to-date and
accurate;
• want to review some billed item with a member of the
hotel staff;
• want to leave with a printed receipt in hand for their
business expense report.
Facilities and Services Meeting rooms, restaurants, fitness

and business centers, spas and swimming pools are just
some of the many facilities that your customer may
request. There are many hotels offering some or all of
these facilities. Traditional hotel properties offer WIFI
Internet access. Most travelers carry laptop computers,
tablets and smartphones that allow them to connect to the
Internet wirelessly. Many guest rooms have proper desks,
with good lighting and adjustable chairs for working.
Sometimes, Internet access is built into smart
TV/entertainment systems. In this case, the customer can
connect to the Internet using the TV in the room as
opposed to using their personal computer.
Peer reviews by past guests Customers traveling to new

destinations research hotel options on travel websites.
Many customers find value in using websites like Trip
Advisor and others to review comments posted by guests
who stayed at a specific hotel. This information is quite
useful to assess the level of service offered and the overall
quality of a hotel.

Key Learning Point

When choosing a hotel product, most customers express eight common
requirements. They are:
• convenient location
• good value for the price
• room quality
• room type option
• attentive customer service
• efficient check-in/checkout
• recreational and business facilities
• positive past guest reviews
Their order of importance may differ according to the type of traveler, but all are
essential.
7.1.2 Major Market Segments

Market segments are groups of consumers with one or more common
characteristics. Each segment has similar needs, demanding similar products
and services. Examples of characteristics used to identify market segments in
the travel industry are:
• gender (male-female)
• age
• country of origin
• size of household2
• income
• price
• interests or reason for travel
Travel market segments also group consumers according to their perceptions
of quality and value. Segments such as luxury, corporate, or budget travelers
can be matched with suitable types of hotel properties. But your customer will
rarely fit into only one market segment because most people have more than
one interest. For example, many people would like to stay in a luxurious room
and pay a low price. They would like to try local food while traveling and want
familiar food to be available as well.
Within the business and leisure travel markets, there are many sub-segments.
Let us look at a few examples.
7.1.2.1 The Business Segment

When a company pays for an employee to travel for business reasons, the
location, business facilities, and image of a particular hotel may decide which
hotel to reserve. A business travel customer is often limited by a budget. So the
skill of keeping booking costs within a budget is important. Business travelers
travel alone or in small groups, and will meet with colleagues, customers,
suppliers or partners at their destination. In many cases, they want to create or
maintain a certain image for the company and themselves which is reflected in
the type of property they choose.

Business or corporate travelers

They work for large corporations or companies. They usually require full-
service business hotels offering guest rooms equipped with a desk, wireless
Internet, and easy access to power outlets (to charge devices). If they plan to
entertain, they may possibly need concierge (special guest) services to secure
access to better restaurants and exclusive events. They may also need
business facilities and services, to hold meetings, make copies, print docu-
ments and materials and help with other administrative details.
Small-business entrepreneurs
These travelers will have many of the same needs as business travelers, but
with a smaller budget. They may compromise on the hotel location and facilities
in order to save. Those who are not limited to a budget may ask for luxury or
smaller boutique hotels that offer unique, personalized services. They may
prefer non-traditional accommodations such as private homes or apartments.
Customers in this sub-segment may also wish to combine business with
pleasure and prefer to stay at a location close to recreational activities such as
theaters, museums, golfing, fishing, or local attractions.
Transferees
When companies transfer employees to a new location, they often book
accommodation for a month or two in the new city until the employee moves to
a more permanent apartment or house. Transferees usually require extra
space and a sense of “home” with a living area, bedroom, bathroom, and small
kitchen. While extended stay hotels are more expensive than renting an
apartment or house, the daily rate is usually lower than a hotel.
Key Learning Point

Most business travelers require accommodations that allow them to work while
traveling. Depending on the company budget and their length of stay, they may
require apartment-like features, such as living rooms and small kitchens.

7.1.2.2 The Leisure Segment

Leisure travelers pay for their own travel expenses, so they tend to be more
price-conscious. But many are willing to pay more when a room provides extra
value or services. Regardless of the price paid, leisure travelers still expect
quality services and facilities. When price is the most important criteria, there
are options available, but you must be careful to accurately describe the
location, service, and facilities to expect.
It is important not to assume that because customers are paying for their own
travel arrangements, you should automatically suggest the lowest price
accommodation. The type of accommodation booked largely influences the
traveler's entire travel experience. People are often willing to reduce spending
in some elements of the trip itinerary in order to spend more on accommo-
dations. Leisure travelers often travel in groups with family members or friends,
and some may have children. Customers in this segment may express an
interest in non-traditional, non-hotel options. Alternative accommodations in the
form of home stays and apartment or house rentals are widely accepted today
and are available via many online providers. Some of these providers may pay
commissions as hotels do.
Luxury travelers
Wealthier travelers often want to be pampered with same level of personalized
service and luxury they experience at home. For others, a trip may be a once-
in-a-lifetime dream or a reward for hard work and achievement. These travelers
are willing to spend more to get what they want. They appreciate pleasant
surprises such as having a bottle of champagne waiting in the hotel room when
they check in, or perhaps a bouquet of flowers delivered as a “welcome” gift.
They are often “influencers” in their communities who can create a positive or
negative reputation for your services as a valued resource for travel information
and assistance.

There are many luxury hotels and resorts ready to deliver more extravagant
services. Many of the best luxury hotels are independently owned and
managed. Some are part of membership organizations, allowing independent
luxury hotels to market their accommodations globally under their brand. These
membership companies offer independent hotels the convenience of a chain
branding without owning them.
Mid-market travelers
These customers may want to enjoy some of the comforts of the luxury
traveler, but their budget is smaller. You can usually help them by booking
average quality accommodations for most of their itinerary. You may suggest
ending their trip with a two-night stay at a luxury property so they will end their
journey on a high note. It is not recommended to book a luxury hotel at the
beginning of an itinerary as the mid-level accommodations will appear as a
downgrade after experiencing luxury accommodation.
Budget travelers
Price is a strong factor in decisions about accommodation in this segment, but
there are options to choose from. Hotel brands in mid-level and low-price
categories provide consistency, predictability, and simple accommodation in a
wide variety of locations. Another option to consider is extended stay hotels
that provide accommodations with kitchen facilities and other options to keep
travel costs such as meals down.
“Home-away-from-home” travelers
Familiar food and the comfort of one's own culture help reduce some of the
stress of travel. Customers in this segment may ask if the hotel staff speaks
their native language, or if there are restaurants in the destination or near the
hotel that offer familiar food. Informing your customers of options connected to
their culture and place of origin helps them choose the right accommodation
property.
Culture-oriented travelers
These customers travel to learn about the people of the country they are
visiting and their lifestyles. They like the experience of living like the local
people, shop in their local markets and eat in their local restaurants. Some may
be interested in staying in rural locations or in exploring the cultural activities
and entertainment options offered in large, multicultural cities. Non-traditional
accommodations such as renting a private home or apartment through a
sharing service may attract these travelers.
Ecotourists
People are becoming more sensitive to the health of our planet. Like culture-
oriented travelers, ecotourists want to learn about the local people who live in
the countries they visit but are aware of the environmental impact their visit
might have. They prefer to stay in environmentally conscious accommodations.
These include hotels with energy efficient programs, farm-to-table food meals
and programs to reduce waste. Most hotels practice environmentally friendly or
green programs and are members of tourism organizations promoting sustain-
ability.

Key Learning Point

The general characteristics and needs of leisure travelers differ from those of
business travelers. Both demand the best quality and value for money they
have to spend. It is important to accurately describe the accommodation type,
location, services and facilities to customers that fit into their budget and needs.
Study Check 7.1
1. If travelers value location most, which is important to them?
(a) The room cost balances with available facilities

(b) Shortest distance to places they need to visit
(c) The type and size of the room booked for them
(d) The hotel offers restaurants and exercise facilities
2. Which is a room type option?
(a) A smart television

(b) A butler service
(c) A desk and WIFI
(d) A suite for six persons
3. Which is NOT a form of express room check out?
(a) Phone app checkout

(b) Front desk checkout
(c) Key drop off box checkout
(d) Hotel TV checkout
4. Which is TRUE?
(a) Online travel sites display the opinions of hotel guests

(b) A printed folio opens electronic locks on room doors
(c) Departing hotel guests cannot check out at the front desk
(d) Customer-centric service is limited to luxury hotels
5. Small-business travelers are NOT price sensitive because their travel is

paid by the company they work for. TRUE or FALSE?
(a) True
(b) False

6. Most travelers are defined by one single market segment. TRUE or

FALSE?
(a) True
(b) False
7. Which type of business traveler chooses extended stay accommodations?
(a) Small-business travelers

(b) Transferees
(c) Large-business travelers
(d) Mid-market travelers
8. Which type of leisure traveler wants to experience the destination's

traditions and customs as a priority?
(a) Budget
(b) Culture-oriented
(c) Luxury
(d) Ecotourist
Match the terms in Column A with the corresponding characteristic in

Column B.
Column A Column B
9. Business traveler a. Wireless Internet access
10. Cleanliness b. Energy-conserving hotels
11. Drop-off box and smart cards c. Defined travel budgets and
expense reports
12. Luxury traveler d. Usually travels with family and
friends
13. Laptops and smartphones e. Common need demanded by all
travelers
14. Ecotourist f. Express check-in and checkout
15. Leisure traveler g. Influencer
9. 10. 11. 12. 13. 14. 15.

Apply Your Learning

Speak with business and leisure travelers. Ask specific questions and record
their answers:
• What do they look for when they stay at a hotel?
• What would prompt them not to return to a hotel?
• What types of services are absolutely essential for their stay? (especially
for business travelers)
• What hotels have they stayed in the past and what do they like or dislike
about them?
As you receive answers you may find that additional questions come to mind.
Ask them additional questions as the conversation develops to increase the
information you collect. Document the information received to create a typical
traveler profile for each major market segment. Categorize the information
based on their general characteristics and preferences. Use and frequently
update these profiles every time a customer returns from a trip. Create a
checklist to help you better match your customers' travel needs with the hotel
options available.
A convenient way to gather this information is to create a short survey and
distribute it electronically. You can call your customers after you receive their
responses to ask follow-up questions. Doing this when you first begin working
with a customer is a very good business practice and lets your customers know
that you really care about their experiences. After their return from a trip, it is
recommended to follow up with them to get their feedback as well. This builds
customer trust and loyalty and encourages them to tell others about your
excellent service and skills; this is free advertising for you and your agency.
These exercises also help you create a reference for your future use of which
hotels your customers liked, disliked for their different types of stays. This
becomes your personal collection of information to match customers with
hotels and the types of services offered that match up with customers'
requirements.
7.1.3 Unit Summary

Travelers see you as the expert. They expect you to offer the best options
based on the information they share with you.
Most travelers share common needs (Unit 7.1.1). The purpose of the
customer's trip will be your first guideline in determining the market segment
and what kind of accommodation to recommend. Other factors such as budget,
travel companions, and length of stay will then influence the decision about
which accommodation options will be most suitable (Unit 7.1.2). It is your task
to listen to your customer to determine as many of these options, factors and
preferences as possible before making your accommodation recommendation.

7.2 Hotel Accommodations
• Name the main types of hotels and describe their benefits (Unit 7.2.1).
• Explain how hotels are becoming sustainable and environment friendly
(Unit 7.2.2).
• Identify the advantages and limitations of hotel rating resources and user-
Unit Learning generated reviews (Unit 7.2.3).
Objectives • Name and define characteristics of the four standard hotel classes
you will be able to: • Name major hotel parent companies and their hotel brands (Unit 7.2.3).
• Explain why independent hotels partner with soft brand companies
(Unit 7.2.3).
7.2.0 Unit Overview

This Unit examines the most easily accessible and used type of accommo-
dation, namely hotels. There are many different types of hotel properties, from
small, family-run hotels to major international chains. They cover the whole
spectrum of services and are offered in a wide range of prices. The hotel
industry provides property ratings to help travel professionals match the right
hotel product with a customer's needs and preferences. The hotel property you
book for your customers will be their “home-away-from-home”. It is extremely
important to research a hotel product's value before offering it to customers.
7.2.1 Hotel Types and Their Services

Hotels are mainly full-service or limited-service hotels. The difference between
full and limited-service is the level of cosmetic (decorative), budgetary and
amenity-related features.
Limited-service hotels generally offer few services. They usually have the
lowest operating costs due to their lack of extras provided to guests. Room
rates are typically lower and cater to budget-conscious travelers.
Full-service hotels need a larger staff to support larger facilities that accommo-
date guests with more luxurious amenities. Sufficient staff is needed to deliver
more attentive services such as bed turn-down, newspaper delivery, security
guards, wake-up calls, room service and a shuttle to and from an airport or
other nearby attractions.
A hotel's primary mission is to offer a comfortable room in which to sleep. A
hotel provides other services to meet a guest's needs, such as meals or
recreation. Depending on the hotel type or class, these services can be very
simple or quite fancy. Some properties may offer sleeping rooms, but their
primary objective is different, such as casino hotels for gambling or spa hotels
for health and rejuvenation. There are a variety of full and limited service hotel
types, each serving a different purpose:
• Airport Hotels
• All-suites Hotels
• Boutique Hotels
• Conference Centers
• Convention Centers

• Destination and Resort Hotels

• Extended-Stay Hotels
• Luxury Hotels
• Motels
• Spas
Airport Hotels
Airport hotels are conveniently located close to an airport. Leisure and
business travelers choose to stay at airport hotels for many reasons:
• Early morning flight departure–staying at an airport hotel reduces the risk
of missing an early morning departure, especially if the traveler is far from
the airport or if there is a risk of road traffic or road closures due to bad
weather.
• Long wait between flights–transfer passengers with a long wait between
connecting flights at an airport or who experience a flight cancelation and
other departure delays. Airport hotels offer room prices for “day
use”–usually blocks of 4 to 8 hours–so that travelers can relax or take a
nap while they wait for their next flight.
• Business meetings, training and conferences–companies choose airport
hotels to conduct business events because they are convenient for
participants flying in from different locations.
All-Suites Hotels
Like small apartments, all-suite hotels include a bedroom and living room and
sometimes offer limited kitchen facilities such as microwaves, coffee makers
and a small refrigerator or bar. The living rooms will usually include a pullout
sofa for sleeping and a desk. This type of hotel can be full or limited-service
and priced on a per night stay with no minimum stay requirement. They attract
the business traveler whose stay is a week or more and families or other
groups who would like to share accommodations in one unit.
Unit 7.2: Hotel Accommodations 561

Boutique Hotels
Located in both urban and rural settings, boutique hotels are smaller with less
than 100 rooms and offer unique, personalized and often luxury services.
Customers who enjoy boutique hotels usually want a travel experience in an
intimate and more locally authentic hotel setting where they interact more with
key staff members.2
Conference Center Hotels

Conference center hotels are full-service, first-class properties and generally
cater to corporate customer meetings and events. The meeting rooms are
designed to accommodate large groups. They provide business facilities for
corporate customers, including meeting and work spaces. Work spaces come
with computers and printers. They also tend to offer a range of leisure
activities3 so that meeting organizers can arrange social activities for their
attendees. Most conference center hotels are located in major cities and in
suburban areas near corporate business complexes (office buildings, industrial
areas). Conference center hotels also attract non-business events such as
weddings, anniversaries, family reunions and important birthday celebrations.

Convention Center Hotels

These full-service, five-star or luxury hotels may be part of, or located very
close to city convention centers. City convention centers have much larger
meeting facilities and exhibition halls than conference centers.
Destination and Resort Hotels

A destination or resort hotel is more than just a convenient place to stay while
traveling or visiting. Its location and features make the property itself a
destination for tourists. Examples include ice hotels, theme park (Disney)
hotels, casino hotels, and mountain or beach resorts.4
Most destination resort properties are luxurious. Hotels like this attract
independent vacationers, family events (reunions and weddings) as well as
business meetings and conferences. They offer multiple food and beverage
outlets, fitness facilities, recreational and sports activities, parking and enter-
tainment. Those catering to families usually have a kids club so that children
can be occupied by hotel staff who organize children-only activities while the
parents relax and enjoy the facilities. Destination and resort hotel guests
normally do not leave the property during their stay, except for organized tour
excursions. Many offer all-inclusive pricing so guests do not pay extra for food,
beverages, facilities and some activities. All-inclusive pricing attracts leisure
and business travelers on a budget as they know exactly what the hotel stay is
going to cost.

Extended-Stay Hotels
Extended-stay hotels are gaining popularity. Extended-stay properties can be
full or limited service hotels. They accommodate many business travelers on a
long-term work assignment. Extended-stay hotels provide accommodations
that are more home-like, including a fully equipped kitchen with appliances for
cooking. Sometimes they have a separate living room for business meetings or
work interviews, but can also be one-room studios. There is often a minimum
stay requirement from 3-nights to 3-months, depending on the location and
hotel rules. In some cases, family members accompany and stay with the
business traveler.
Extended-stay hotels may be located in resort areas and cater to international
travelers and seniors who require more than a standard hotel room for several
weeks or months. Extended-stay hotel guests benefit from long duration stays
with the conveniences of home, at a lower cost than standard hotel rates.
Motels
These properties are generally smaller and cater to people traveling by car.
Motels are generally located outside of urban centers, in suburban or rural
areas. They are lower in price as they are considered limited service hotels.
The properties have one, two or three floors. Rooms are normally accessed
from an outdoor walkway. They may or may not have a food and beverage
outlet on property, but will often be next door to a budget or chain restaurant
that offers breakfast, lunch, and dinner. The front desk handles all basic guest
services. Self-service luggage carts are usually provided for guests to roll
baggage to their rooms.

Spas
These are full service hotels offering health, physical fitness and nutritional
advice, or just plain pampering and relaxing spa treatments. They often also
have tennis courts, swimming pools, fitness classes, salons, and many offer
specially prepared healthy meal options. Some also organize hiking, yoga,
meditation and other well-being activities and attractions for guests.
Key Learning Point

Each hotel type serves the primary need for a room to sleep in. They also serve
secondary needs with features and services that appeal to specific market
segments. Airport, all-suite, boutique, conference, convention, resort,
extended-stay, limited-service, motels and spas meet the different needs of
travelers. Understanding the needs and wants of the customer will allow you to
recommend the best hotel type for their travel needs.
7.2.2 Hotel Trends in Sustainability

The services a hotel offers is determined by the needs and expectations of its
main market segment. As customer expectations and demands change over
time, so must the hotel's services. Travelers have become more environmen-
tally conscious and choose to stay at properties that have incorporated
sustainable practices into their daily operations. Many hotels now promote
themselves as being “green” or environmentally friendly. “Green hotels” apply
various methods to reduce energy and waste while continuing to provide a
positive experience for their guests. Some examples include:
• Reusing towels and other linens to reduce the hotel's laundry, saving
electricity and water
• Reducing energy usage with systems that activate electricity and air
conditioning only when the guest room key is used
• Recycling and composting waste
• Using green cleaning supplies (biodegradable detergents)

• Offering/organic, locally grown food options on menus

• Providing/fresh air ventilation control in guest rooms
Key Learning Point

Many hotels practice sustainable operations that minimize environmental
damage, conserve water and electricity, recycle waste and supporting local
agriculture.
7.2.3 Hotel Ratings, Classifications and Brands

It is a standard practice in the hotel industry to rate each hotel property to make
it easier to identify the quality and level of service its guests should expect.
Travel professionals rely on hotel ratings to match a hotel product with the
travel customer's needs. There are many professional inspection companies
that evaluate and rate hotels and classify them into standard categories. They
include:
• Michelin Guide
• Forbes Travel Guide
• AAA Approved and AAA Diamond Rating5
• Green Key Global Program6
• Tourism Grading Council of South Africa7
• HORESTA8
• European Hotelstars Union9
• Accessibility Standards Rating System10
• Caribbean Tourism Organization11
In addition to professional reviews and ratings, guest reviews and ratings are
also available on hotel websites and on sites such as TripAdvisor.
7.2.3.1 Hotel Ratings

A hotel's rating is an assessment of its service levels plus the quality and
number of its facilities and amenities. However, standards may differ between
rating companies. They usually do not consider guest reviews. Individual
countries may also have their own government rating systems. For example,
Malaysia's tourism rating system may differ from Belgium's. To determine the
rating of a hotel property, or to compare the ratings between hotel properties or
chains, it is best to reference more than one rating company. This is done by
collecting each company's rating for the property and looking for consistency
across the ratings. Often, collecting more than one rating for a hotel property,
plus guest reviews, will provide enough information to effectively recommend
or disqualify hotel options to your customers. For this reason, it is important to
understand the difference between a classification rating and a user generated
rating.
Classification Rating
A hotel classification system is used in travel publications and found on
accommodation-related websites. These established systems commonly rate
hotels from one to five stars. Although the star rating method is the one used
most throughout the world, other symbols are also used (diamonds, crowns,
keys, etc.), sometimes even in combination. A one-star rating would indicate a

modest hotel classification with very basic facilities and perhaps some service
deficits. A five-star rating would classify a luxurious, full-service hotel with
excellent customer service and facilities. In some markets, a hotel property
itself may claim itself to be a higher rating, such as 7-star. These self-assigned
ratings are unofficial and used as a promotional strategy to compete in a
market with a high number of highly rated hotels. The ratings used to classify a
hotel are quite subjective and should be used as a comparative guideline only,
not as a quality guarantee of any specific facilities or services.
Major tour operators often rate and classify hotels according to their own
criteria while ratings displayed in electronic distribution channels (e.g., GDS)
are typically created to benefit travel agents. In all cases, hotels are evaluated
for classification on an annual basis–or sometimes less frequently. In this case
the evaluation process takes place over a 1–2 day hotel stay and is completed
by an inspector using a detailed checklist. This kind of evaluation has
limitations due to the brief time period of the inspector's stay and often does not
reflect an ongoing review of the property's performance throughout the year.
User-Generated Hotel Reviews and Ratings

Online travel sites are another resource to help determine the quality of a
hotel's accommodations and services. Past guests are encouraged to give a
review of a hotel based on their experience as a guest. Often this information is
extremely detailed. What is most useful with these reviews is that they are
usually posted online shortly after a guest departs the hotel, providing travel
professionals and consumers more frequent feedback than the once per year
inspections performed by many of the rating companies.
Verified user content can be found on a hotel's website and on travel sites like
TripAdvisor. These reviews usually include an overall rating. It is important to
note that this rating is a guest's personal assessment of how well they liked
their stay, not a professional evaluation of the hotel classification. Therefore, it
is not unusual to see a hotel classified as a 2 or 3-star property receive a 5-star
user rating. Both are valid for different purposes, but it is important to
understand the difference between the 5-star classification and the 5-star user
review.
Figure 7.2.1—Sample user-generated hotel review

Key Learning Point

Because rating standards are not identical across all rating companies, it is
best to compare hotels using the ratings published by more than one rating
company and finding consistencies across the different ratings. Customer
reviews are subjective, reflecting their opinion of their hotel stay. Often more
than one rating together with user generated reviews will provide the
information needed to effectively recommend or disqualify hotel options to your
customers.
7.2.3.2 Classifications
Luxury Hotels
Luxury hotels are full-service properties, mostly located in urban (city) centers
and resort destinations. As more luxury hotels are built to serve wealthier and
more demanding travelers, they are increasing their services and amenities.
They offer restaurants, bar service, laundry service, in-room dining, business
centers, concierges, spas, health clubs, shops and often much more. The hotel
staff is sometimes multi-lingual, well-educated and trained to deliver customer
service excellence. Guests are constantly assisted, from the time they check-in
until they checkout. Some luxury hotels provide a personal butler who does
everything for the guest, including unpacking suitcases.
From the hotel doorman and bellmen and who assist with luggage, to the
housekeeping services offered at least two times per day, guests never have to
worry about their belongings and cleaning up after themselves. The hotel
concierge is an expert on everything there is to do and see at the destination
and assists in planning everything from airport car transfers, to site-seeing
excursions and dinner reservations both in and outside the hotel.
An increasing number of ultra-luxury hotels provide highly authentic destination
experiences and access to exclusive activities that other hotels do not provide.
They cater to jet-setters and custom tour guests who want to experience local
traditions and activities which are not accessible to the typical traveler.
Depending on the destination, ultra-luxury hotels give guests behind the
scenes access to the fashion design houses, the opera, museums, the theater,
restaurant chefs and other famous local attractions. These hotels create
enriching experiences, combining enjoyment with education.
Source: Soneva Jani, Maldives Luxury Resorts

Upscale Hotels
Upscale hotels generally cater to business travelers. They are sometimes
called Superior or First Class. Many of the same services available in luxury
hotels are offered in upscale hotels. In smaller cities where there is no demand
for a luxury hotel, the best properties will be upscale hotels. While room rates
reflect the upscale hotel level, the services may be almost equal to services
delivered by luxury hotels located in major cities.
Local competition with other hotels determines the type of product upscale
hotels deliver. Business amenities are standard in the upscale market, with
many hotels offering full business services in the guestrooms. These services
may differ depending on hotel size, location, and whether it is in an urban,
suburban or airport location. Like luxury hotels, the staff is usually well-trained
and competent, available to assist guests. The concierge is a useful resource
who can coordinate activities for guests that make their stay more enjoyable.
Mid-Range Hotel
Mid-range hotels can be found in any geographic area, although there may be
more in major urban center locations than suburban or leisure destinations.
Many offer some of the services found at upscale or luxury hotels but less
personal. These services include access to a business center, where the guest
can print their own documents, and casual dining options. Room decoration is
basic and amenities simple, meeting the needs of the average traveler. Mid-
range hotels do not usually have a concierge service, but the front desk staff
can provide information and advice on local attractions.
Budget/Economy Hotels
This is a growing segment in hotel development as hotel companies address
the needs of travelers who are not able to afford the more expensive hotel
options. The goal of these hotels is to offer a clean, safe and comfortable room
with limited service. There are usually no hotel-managed restaurants on site,
although there may be a casual dining restaurant next door. In many cases,
Wi-Fi and a complimentary buffet breakfast is included in the room rate at
budget/economy hotels.

Concierge and
Classification/ Guest room décor Business travel Recreational Other Support
rating & amenities Dining facilities services facilities Services Brand Examples
Luxury Hotels Luxurious, 24-hour in-room Full-service High quality Expert level Four Seasons
(5 stars) spacious, comfort- dining service business center fitness facilities concierge Hotels & Resorts
able and elegant plus a variety of services. The Luxury
interior design with restaurants offer- Collection
high attention to ing international Nightly house- Fairmont Hotels
detail. cuisines with keeping turndown Ritz Carlton
highly technical services. JW Marriott
Guest rooms skills
equipped with Laundry and dry- Bulgari Hotels
luxury amenities cleaning services Mandarin Oriental
Park Hyatt
like: mini bars, Full-service busi- LHW
smart TV’s, wire- ness center Preferred Hotels
less internet, mul- & Resorts
tiple telephones, Oberoi
work desks, bath- Banyon Tree
robes and slippers. GLM
Beds have triple Small Luxury
sheeting with high- Hotels
quality linens, The Peninsula
down feather pil- Hotels
lows and duvet Conrad Hotels
covers. Raffles Hotels
and Resorts
Soneva
Upscale Hotels Large guest rooms 24-hour in-room Full-service Quality fitness Concierge ser- Crowne Plaza
(4 or 5 stars) with a degree of dining service business center facilities vices Nightly Renaissance
luxury and quality and one or more house=keeping Hotels & Resorts
in the well- international turndown ser- Westin
designed and restaurants onsite vices Laundry, Sofitel
coordinated to dine in and dry-cleaning. Pullman
furnishings and Hilton Hotels
décor. Full-service InterContinental
business center. Hotels & Resorts
Guest rooms ap- Kimpton Hotels
pointed equipped
with luxury ameni-
ties like: mini bars,
smart TVs, wire-
less Internet, mul-
tiple telephones,
work desk, bath-
robes and hair
dryers.
Mid-Range Hotels Private guest In-room dining Business “do-it- Basic fitness Front desk Holiday Inn
(2 or 3 stars) rooms with basic service is some- yourself” facilities facilities assists with all Hotel & Resorts
comfort and times available are usually guest requests Four Points
amenities for the with a casual available Sheraton
average traveler. restaurant on the Novotel Court-
property to dine in yard by Marriott
Guest rooms Ace Hotels
equipped with ba- Moxy
sic amenities: wire- NH
less Internet, cable Doubletree
TV, telephones, Residence Inn by
work desk, hair Marriott
dryers.

Concierge and
Classification/ Guest room décor Business travel Recreational Other Support
rating & amenities Dining facilities services facilities Services Brand Examples
Budget/Economy Clean, safe and No hotel man- Business center Basic fitness Front desk Ibis
Hotels (1 or 2 comfortable rooms aged restaurants kiosk for do-it- facilities assists with all Travelodge
stars) with limited- on site but these yourself needs guest requests Fairfield Inn by
services and hotels are located Marriott
amenities. next door to an Motel 6
independent, Holiday Inn
Guest rooms casual restaurant Express
equipped with which is often part TownPlace Suites
amenities like: of a restaurant Hampton Inn
wireless internet, chain
cable TV, tele-
phones, work desk,
hair dryers.
Table 7.2.1—Summary of hotel classifications and ratings
Key Learning Point

Hotels are classified based on the ratings of the features, services, and
amenities offered. Each classification caters to the needs and preferences of
travelers from different market segments. Higher hotel classifications indicate
levels of luxury that offer more services.
7.2.3.3 Hotel Groups and Brands

Major hotel parent companies have a variety of hotel brands in their family.
There are a number of hotel parent companies. Each hotel parent company
owns or manages a family of hotel brands with a variety of classifications. By
being able to offer a range of hotel classifications, they can market their “family”
of hotels to all traveler markets. With hotels in the luxury, upscale, mid-range
and budget classifications, the parent company can build loyalty with a wide
variety of guests by offering a variety of hotel styles and classifications. Each
brand targets one type of traveler. For example, a hotel brand attracts
millennial travelers by promoting a less luxurious property with modern guest
room and lobby décor and high-tech amenities. On the other hand, a 60-year-
old professional might appreciate a more traditional luxury hotel brand.
The hotel brand name represents a specific style of hotel and the quality and
experience guests can expect from the brand each time they are a guest. A
hotel brand may represent a chain of hotels either owned or managed by the
brand. A hotel brand is not a specific properties, but a group of properties carry
the brand's name, sign and flag. The hotel name is the brand associated with a
level of quality and other services. This also allows them to offer new brands to
guests when they visit a city where their preferred hotel may not have a
presence. If another brand in their preferred hotel “family” is there, they can still
get loyal service with the new brand. This is important to guests motivated to
earn frequent guest points with the hotel parent company (explained in
Unit 7.8). Examples of parent hotel companies and their “family” of brands are
listed in the Table 7.2.2. For example, Accor Hotels is a parent company that
owns or manages the chain of Raffles hotels. The Raffles brand of hotels
represents only luxury class properties. Le Royal Monceau is a luxury class
hotel and a Raffles brand hotel property in Paris. You are not required to
memorize the list of hotel brands per parent company for this course
examination purposes.

Parent Company Flag Brand

Accor Hotels Raffles
Fairmont
Sofitel Legend
SO
Sofitel
M Gallery
Pullman
Swissotel
Adagio Premier
Grand Mercure
The Sebel
Novotel
Mecure
Mama Hostel
Adagio
Ibis
Hotel F1
Thalassa
Best Western Best Western
Vib
Best Western Premier
Executive Residency
Best Western Plus
BW Premier Collection
GLo
InterContinental Hotel Group® Holiday Inn Crowne Plaza
Holiday Inn Hotels & Resorts
Holiday Inn Express
Kimpton Hotels & Resorts
Hualuxe
Staybridge Suites
Candlewood Suites
Hotel Indigo
Even Hotels
InterContinental Hotels & Resorts
Marriott International, Inc.® Marriott Hotels, Resorts & Suites
The Ritz-Carlton
Edition
Autograph Collection Hotels
Renaissance Hotels & Resorts
Delta Hotels
Courtyard by Marriott
Residence Inn by Marriott
Fairfield Inn by Marriott
Marriott Conference Centers
Marriott Executive Apartments
ExecuStay by Marriott
TownePlace Suites by Marriott
SpringHill Suites
Marriott Vacation Club International (villa rentals)
Gaylord Hotels
AC Hotels
Protea Hotels
Moxy Hotels
The Luxury Collection
Sheraton
Westin
W Hotels

Parent Company Flag Brand

Melia Hotels International ME
Paradisus
Melia Hotels & Resorts
Innside by Melia
Tryp
Gran Melia Hotels & Resorts
Sol by Melia
Table 7.2.2—Sample hotel parent companies and their brands
Key Learning Point

Hotel parent companies own or manage a family of hotel brands or chains by
name. There are a number of hotel brands within their portfolio that offer
numerous options to travelers. Guests become familiar with these brands and
learn that they represent a specific level of quality and experience that they can
find at every brand location.
7.2.3.4 Hotel “Soft Brands”

Not every hotel is owned or managed by a parent company. Some hotels are
independently owned and operated and are not part of a hotel family. Some
independently owned hotels partner with soft brand companies. This partner-
ship allows independent hotels to benefit from the collective strength of a global
hotel brand and still retain their individual character and name, without
attaching a brand label to it.
Soft brands companies are like associations that provide their hotel members
with sales, marketing and distribution support to their independently-owned
hotels with negotiation power that they cannot get as a single hotel. They
provide a marketing platform for hotel owners and operators to gain exposure
for their hotels in a global way, benefitting from:
1. the reputation of the “soft brand” and
2. the association with a group of other reputable hotel partners
These independent hotel owners enjoy working with soft brand partners as it
allows them to maintain their unique history and services, while being part of a
club with other hotels at an equally high standard of service and reputation.
This creates a network or team feeling with marketing support.
Like parent hotels groups, some soft brand companies also offer different
brands in order to appeal to different guest types and budgets.
Table 7.2.3 lists examples of Soft Brand companies and their brand hotel
names. It is not necessary to memorize details of the brand hotel name or soft
brand global size.
Soft Brand Flag Brand Global reach

The Leading Hotels of the World No other brand extensions 375 hotels in 75 countries
Preferred Hotels & Resorts Legend 600 hotels in 85 countries
LVX
Lifestyle
Connect
Preferred Residences
Serviced Residences
Small Luxury Hotels of the World No other brand extensions 520 hotels in 80 countries
Table 7.2.3—Sample list of Soft-brands

Key Learning Point

Independently owned hotels benefit from soft brand marketing where they
promote their reputation in partnership with the soft brand and by associating
with a group of other independent hotels.
Study Check 7.2
1. Which is TRUE about full-service hotels?
(a) They are generally smaller properties

(b) They attract low budget travelers
(c) They employ more people
(d) They have the lowest operating costs
2. Which would a limited-service hotel offer?
(a) A business center

(b) Banquet and restaurant facilities
(c) A concierge service
(d) Conference facilities
Match the hotel types in Column A with the correct, corresponding traveler
requirements in Column B. Enter your answers in the space provided
below, numbered 3 to 8.
Column A Column B
3. Airport Hotels a. Business traveler staying 2
weeks
4. Destination and Resort Hotels b. Corporate board meeting
5. Extended-Stay Hotels c. Overnight layover between
flights
6. Conference centers d. Traveler likes to have a personal-
ized and authentic experience
7. Convention centers e. Traveler who doesn't want to
take out his wallet while on va-
cation
8. Boutique Hotels f. Traveler is attending a trade
show
3. 4. 5. 6. 7. 8.
9. User generated reviews are useful because they capture more frequent
feedback than inspections completed by many of the rating companies.
TRUE or FALSE?
(a) True
(b) False

10. Hotel classification systems rate hotels between 1 and 7 stars. TRUE or
FALSE?
(a) True
(b) False
11. Why should hotel ratings only be used as a guide for comparison?
(a) The ratings change every month

(b) They incorporate customer reviews
(c) Standards vary from system to system
(d) They guarantee specific facilities or services
12. Your customer recently scheduled a three-day business trip. He has a

moderate but limited expense budget. He will not require full business
services, but will require guest service assistance for dining and car
rental. Which of the following hotel classifications would be the best
recommendation?
(a) Budget/Economy
(b) Mid-Range
(c) Upscale
(d) Luxury
13. What does a hotel brand represent?
(a) A hotel company's logo

(b) A hotel company's slogan
(c) The quality and experience the guest can expect
(d) The hotels corporate image
Case Study Unit 7.2

Mr. James is a business traveler who would like to combine a business trip with
a family vacation. He is scheduled for 3 days of meetings in Orlando, Florida
and would like to have his wife and 2 children (8 years and 10 years) join him
after his business meetings for one week.
Suggest the hotel type options suitable to offer for this combined business and
leisure trip. Explain why.

Apply Your Learning

When communicating with your customers, consider not only their needs and
preferences, but also the features and amenities offered in different hotels. For
example, a customer may not be aware that many upscale hotels offer similar
services found in luxury hotels but at a lower price.
Identify a few hotel brands and conduct the following exercise:
1. Call to inquire about their features and services before making recommen-
dations to your customers.
2. Ask the sales staff how you could best sell their properties–what is their
“value proposition” and who do they consider to be their competition? They
may give you some very valuable sales tools, as well as inform you of
unique aspects of their hotels that customers may find appealing. You may
discover that a lower priced option meets your customer's needs, while
providing better value for money without sacrificing quality.
3. Take a look at their branded website. View the images and marketing
content they use to describe their hotels. Seeing pictures can be extremely
useful in helping you learning more about a hotel and its features and
amenities.
4. Look them up on Trip Advisor and other online travel sites to see what
recent guests have posted about them.
7.2.4 Unit Summary

There are many types of hotel accommodation options available. A hotel’s goal
is to first offer a room for sleeping and added services valued by travelers.
Hotels are generally categorized as full-service or limited-service. Limited-
service hotels generally offer fewer services and amenities. They cater to the
budget travel market with more affordable room rates. Properties such as spas,
airport hotels, casinos and conference hotels serve other purposes as well
(Unit 7.2.1).
In keeping with current consumer trends and demands, most hotels are
environmentally conscious and incorporate “green” practices into their daily
operations (Unit 7.2.2).
Large hotel parent companies have created various hotel brands, recognized
by hotel name, which are classified and rated in relationship to the features,
services, and amenities they offer. Even independently owned hotels have
discovered the benefit of partnering with soft brands for marketing and sales
purposes (Unit 7.2.3). Becoming knowledgeable about hotel brands and their
services will assist you in making informed recommendations to your cus-
tomers.

7.3 The Language of Accommodation
• Interpret and use common industry terms in hotel-related conversations

related to facilities (Unit 7.3.1).
• List hotel room bedding types and identify the number of people each can
sleep (Unit 7.3.2).
Unit Learning • Name standard and miscellaneous hotel room types and define each one
By completing this Unit, • Identify optional hotel meal plans and explain their inclusions (Unit 7.3.4).
7.3.0 Unit Overview

Every industry uses its own special terminology. The people who work within
those industries should know the terms and words that are important for
transacting business. In your role as a travel professional you will use hotel-
related vocabulary frequently, in both written and spoken communications. By
understanding these terms, you will be able to access information much more
quickly and accurately. In this Unit, you will learn the terms used for facilities
and services, room and bedding types, as well as meal plans mostly included
in tour packages.
7.3.1 Hotel Facilities & Services

This Unit lists and defines essential hotel features and guest services.
Accessible facilities: In some countries, the law requires
hotels and other public buildings to make all areas
accessible for persons with disabilities.12 Special equip-
ment, room configurations, or amenities that assist per-
sons with disabilities. Some examples include wheelchair
accessible ramps, elevators and door frames, low bath-
room sinks, adjustable shower heads and grab bars; text
telephones (TTY), Braille signage, and visual and audio
alarm systems.
Amenities: Small complimentary items given to guests in

the room. They can be tangible or intangible. They
contribute to guests' comfort and convenience. Examples
include toiletries such as soap and shaving items, bath-
robes for use during the stay or a weighing scale and
sweets on the night table at turndown. In some luxury and
upscale hotels more substantial amenities are given to
guests like a gift of fresh fruit, wine, and bottled water to
welcome them upon arrival.
Back of the house: The area of the hotel not accessible to

the public. This includes accounting, sales, kitchens,
personnel, housekeeping, and engineering areas.
Unit 7.3: The Language of Accommodation 577

Bellman: A staff member who usually supervises luggage

handling.
Business center: A facility or area of the hotel that

provides business services such as Internet access, photo-
copying, and meeting rooms for guests.
Butler Service: This is a personal service provided by

some luxury hotels. A butler will be accessible 24 hours a
day, and will take care of every need the guest might have
from unpacking suitcases to coordinating with every de-
partment in the hotel to ensure all the guest's immediate
and future needs are met.
Check-in: Process of registration upon arrival at a hotel.

Check-in time: The designated hour in which hotels
receive new guests into a room.
Checkout: Process of payment upon departure from the
hotel.
Checkout time: The designated hour at which hotels
expect guests to vacate their rooms.
Checked luggage: Suitcases and other guest belongings
left with the bell or doorman when a guest has arrived early
and their room is not ready, or has checked out and
departing the hotel at a later time.
Concierge: A staff member who provides assistance to

guests such as help in obtaining theatre tickets, restaurant
reservations, a rental car, car hire (private transfers),
arranging sightseeing, sending flowers, etc. In some
countries, the Hall Porter performs this role.
Doormen: A staff member posted at the front of a hotel

who usually supervises luggage handling upon arrival and
departure.
Food and beverage (F&B) outlets: Another word for
eating and drinking establishments. They can include fine
dining as well as a small café.
Front desk: Reception area where guests check in and

out. In some countries this is also referred to as Reception.
Front of the house: The area of the hotel accessible to
the public. This includes the front door, front desk, lobby,
F&B outlets and sleeping rooms.
Front office: The part of the hotel that includes the
Reception Desk, Concierge or Hall Porter or Guest Ser-
vices Desk, Hotel Reservations and Porter (Bell) services.

Gift shop: Sometimes called a “boutique”, is a store

located in the hotel that usually sells convenience items
such as snacks, sundries, and magazines, as well as items
suitable as gifts.13
Hall porter: A staff member who usually supervises

luggage handling but may also perform the services of a
Concierge.
Hall porter's desk or bell stand (USA): A portion of the

lobby set aside for receiving luggage before distributing it
to the rooms. Typically, porters or bell staff (USA) will
congregate in this area.
Health club: This may include fitness rooms, swimming

pool, sauna, and jacuzzi.
Housekeeping: The department that cleans, tidies, and

maintains the sleeping rooms and all public areas in the
hotel.
In-room Safe: A small vault located in each guest room

where a guest can securely store valuable items.
Mini-bar: Small refrigerator located in a guest room

stocked with sweets, snacks, and beverages. They are
priced per item and tallied daily by the staff.
Property: Another word for hotel or accommodation

facility.

Room service: Food and beverage served in the sleeping

rooms-also known as In-Room Dining.
Service Level: The number and quality of the services
offered by a hotel, including the way the staff interact with
the guest, the quality of the linens, cleanliness, food and
drink facilities, etc.
Services: The activities and facilities provided for guest
comfort, including the types of activities that housekeeping
performs in the guest room (clean the room, turndown the
bed, etc.) or what might be offered in a business center
(copies, access to a PC or printer, packaging and mailing,
etc.)
Shuttle service: Transport provided to guests for a fee to
transport them to-and-from the airport.
Turndown: Is a housekeeping service provided in the

evening at some hotels. This service includes removing
the bedspread, turning down the bed linens, fluffing the
pillows, tidying up the bathroom and replacing used towels,
drawing the curtains and often supplying a chocolate or
other sweet dessert item.
Valet: An employee of the hotel who performs special

services for guests. The service a valet provides differs
among countries. In the USA, a valet parks cars at the
hotel. In the UK, a valet cleans the clothes of guests
staying at the hotel.
Valet parking (USA): A service in which guests at a hotel

can have their cars parked by an employee for a fee that is
charged on a nightly basis (also called valet service).
Wireless Internet (WIFI): Networking technology that

uses radio waves to provide wireless high-speed Internet
and networking connections. Some hotels offer free wire-
less Internet access, and some charge a daily access fee.
Key Learning Point

Although the features and services offered will vary for each hotel, it is
important for you to describe these aspects to your customers accurately. For
example, not all hotels offer accessible facilities and services for persons with
disabilities. Becoming knowledgeable about the physical features, equipment,
and services available at various properties will assist in informing customers
who may have special needs or considerations while traveling.

7.3.2 Bedding Types

Bed sizes vary considerably around the world, with most countries having their
own standards and measurements. The most common bed types and
dimension include14:
Single: A bed designed for one person (also called a Twin bed). (30 in × 75 in /
76 cm × 191 cm).
Full/Double: A double sized bed designed for two people. (smaller that a
Queen) (54 in × 75 in / 137 cm × 191 cm).
Queen: An extra-large double bed (smaller than the King). (60 in × 80 in / 152
cm × 203 cm).
King: Largest size double bed (larger than the Queen). It is also referred to as
a standard king or eastern king. (76 in × 80 in / 193 cm × 203 cm).
Murphy: A bed that folds into the wall when not in use. These are especially
good when using the room to entertain or conduct business. These can be
found in twin, double and queen sizes.
California King: A bed that is longer yet slightly narrower that the
standard king mattress and is sometimes referred to as a western king.
(72 in × 84 in / 183 cm × 213 cm).
Japanese style or Tatami beds: Bedding is stored out of sight during daytime
and rolled out on the floor for sleeping. These are typically twin or double size.
Sometimes they are also offered in queen size.
Key Learning Point

Each hotel room bedding type name is linked to the number of people the bed
can comfortably sleep.

7.3.3 Room Types

There are several types of sleeping rooms. You will need to identify which of
the following would best suit your customers' needs. While the list below is
widely used, many hotels, chains and brands may use their own room type
names.
Standard: Often the starting or entry level sleeping room type in a hotels. It is
regular in size. The bedding might consist of one or two beds. This category
usually refers to the most basic room type offered by the hotel. It has basic,
standard amenities and furnishings. Standard rooms sometimes have no view
or a poor view.
Superior: Often defined by the location of the room. It may have a better view
and may be larger than the standard category room.
Deluxe: This category of room is typically larger than the standard and superior
categories, offers the best location, the best view, and the highest level of
comfort, furnishings, amenities, and décor. Bedding usually includes a queen-
size or king-size bed. In some countries, however, a superior room may be
considered a higher category than the deluxe room, so it's important to validate
your choice before booking.
Suite: In most cases suites consists of two or more rooms, or an extra-large
room divided into separate spaces. Those spaces or rooms typically include a
sleeping room and a separate living room or area featuring a sofa, chairs,
television. A suite may have more than one bedroom or extra rooms such as a
kitchenette, dining room or conference room. Some hotels use the word “suite”
to define any room with a sofa in it. Be sure to seek clarification if your
preference is two or more rooms separated by a door.
Miscellaneous Room Types

In addition to the above, you may also see these types of room type names.
Run of House: This room type is often used in corporate contracts to indicate
a room option that may vary due to the hotel's occupancy. As the inventory of
rooms is sold, different room types will be offered to arriving guests and booked
at this room type.
Executive: This is a smaller room equipped with features that would serve the
needs of a business traveler like a desk and small sitting area.
Classic: Often used to describe a standard or un-renovated room, this will
generally be the basic or most available room type.
Premier: Often used to describe a superior or better room.
Grand Deluxe: Often used to describe the best room type before suites.
Hotels do not always follow the same guidelines and may interpret room
descriptions differently. In all cases, it is important to read the room description
and review room images to be able to accurately select and inform your
customer of their choices.
Other useful vocabulary defining rooms includes:
Adjoining: Two or more bedrooms next to one another but not connected by a
common door.
Apartments: Accommodation including kitchen facilities. This could be used to
describe a studio where everything is in 1 open space, or a space with 1 or
more separate bedrooms plus a separate living room.
Connecting: Two or more sleeping rooms with a common door between them.

Double: Room with a double bed that can be used for either one or two people.
In some countries a queen size bed can be referred to as a “double”; it can be
useful to ask for the length and width dimensions of the bed.
Double/double: A room with two double or two queen size beds, a suitable
option for two friends or colleagues sharing a room as well as families with
small children.
Family room: These rooms typically have either one large space with multiple
beds (a king plus 1 or 2 twin beds and perhaps a sofa bed) or connecting
rooms with multiple bedding options.
Hospitality suite or one bedroom suite: A sitting room used to entertain
customers or guests. Usually has a sleeping room connected by a common
door and includes bathroom facilities in both rooms. Typically includes a wet
bar (a counter with a sink for rinsing glasses, some shelves or a cabinet to hold
glasses, bottles and other equipment), refrigerator and couches.
Junior suite: A large room with two areas, one for sleeping and the other for
sitting. It usually includes a couch, coffee table, and side chairs. Though a
single room, at times it may have a small divider separating the seating area
from the area that has the bed.
Penthouse suite: Located on the top floor of the hotel. It often contains two or
more guest rooms and a spacious living room and dining area for entertaining
or hosting small gatherings.
Show Room: Sometimes called a model room, it is used by the hotel sales
staff to display to agents. Show rooms are usually available during initial
construction, for use in pre-sales activities, or during a major renovation to
show what is coming.
Single: A room designed for one person. Rooms will have either one single
bed or one-double bed.
Smoking: Rooms where tobacco can be smoked. Non-smoking rooms prohibit
tobacco use.
Triple room: A room designated for three people. These rooms typically will
have either 3 single or twin beds, or one queen or king bed plus one twin bed.
This is suitable for a family.
Twin room: A room designed for two people with two single or ‘twin’ beds. This
is suitable for two people who want to share a room but not a bed.
Key Learning Point

There are several different room types and bed sizes to choose from
depending on your customers' preferences, where they are traveling and the
number of travel companions. It is best to use both the GDS and the hotel
website to accurately understand how the room type is configured.
7.3.4 Meal Plans

Most business hotels do not include meal plans, but it is common for leisure
hotels and wholesale packages to offer them. Here are some options:
European plan (EP): No meals included.
American plan (AP): Includes three meals a day. American plans are rarely
used anymore but may be offered in certain resorts or packages. Also referred
to as ‘Full Board’. Meals are served at specified times; sometimes specific
seating times are assigned. No between-meal snacks are served.

Modified American plan (MAP): Includes two full meals per day, usually
breakfast and dinner. Also referred to as ‘Half Board’.
All Inclusive: Includes all meals, snacks, and beverages (alcoholic and non-
alcoholic).
Bed and breakfast (B&B): Breakfast only included.
Continental breakfast (CB): Includes coffee, tea, juices, toast, rolls and
pastries and perhaps fruit.
English breakfast: Full breakfast of cereal, bacon, sausages, eggs, mush-
rooms, roasted tomatoes, toast, juice, tea and coffee.
American breakfast: Full breakfast that includes most or all of the following:
eggs, sliced bacon or sausages, pancakes (or waffles or French toast) with
syrup, cereal, coffee or tea, fruit juice.15
Japanese Breakfast: Includes miso soup, rice, cooked fish and pickles.
À la Carte: A menu in which each item is priced and charged separately.
Table d'hôte: A fixed price meal offered daily.
Buffet: A variety of dishes are presented on a counter for self-service by the
customer. These meals are typically “all-you-can-eat” which means the
customer can return to the counter multiple times to take more food until they
are finished eating.
Key Learning Point

Hotels may offer a number of meal and breakfast options. It is important to
understand the options that are offered to your customer as part of a room rate
and those meals that can be purchased separately at an additional cost.
Understanding each of the meal plan options and breakfast options offered at a
hotel will allow you to book a hotel that serves best the needs of your customer.
Study Check 7.3
1. Laws in all countries require that hotels have facilities that are accessible
for persons with disabilities. TRUE or FALSE?
(a) True
(b) False
2. King, Single, Queen and Murphy are examples of:
(a) Room types

(b) Bedding types
(c) Meal plans
(d) Amenities

Match the Hotel facilities and services in Column A with the correct,
corresponding definition in Column B. Enter your answers in the space
provided below, numbered 3 to 8.
Column A Column B
3. Checked Luggage a. Evening housekeeping services
4. Valet b. 24 hour guest server offered in
some luxury hotels
5. Amenities c. Personal items left at the hotel
when a guest is not checked-in
6. Turndown d. Area of the hotel accessible to
the public
7. Butler service e. Complimentary items given to
guests in the room
8. Front of the house f. Dry cleaning and laundry
services
3. 4. 5. 6. 7. 8.
9. Two single friends are traveling together. They would like to have some
meals included in their hotel stay. Which meal plan would provide only
two meals per day?
(a) All Inclusive

(b) American plan
(c) Modified American plan
(d) European plan
10. Place these bed types in size order, from smallest to largest:
(a) Full/Double
(b) California King
(c) King
(d) Twin
(e) Queen
Smallest Largest

Match the meal plans in column A to the corresponding definition in

column B.
Column A Column B
11. All Inclusive a. Includes miso soup, rice, cooked
fish and pickles
12. European Plan b. Includes cereal, bacon, sausage,
eggs, toast, juice tea or coffee
13. English Breakfast c. No meals included
14. Japanese Breakfast d. a fixed priced meal daily
15. American Plan e. Includes all meals, snacks and
beverages
16. Table d'Hôte f. Includes three meals per day
11. 12. 13. 14. 15. 16.
Apply Your Learning

Create a master list of accommodation-related terminology and their definitions
by category. Keep a hard copy close to your workstation so you can access it
easily.
When discussing hotel needs with a customer, take the time to explain terms
that will matter to them. Suppose you have customers, who are planning a
vacation and are not experienced travelers. They may not know that there is
free shuttle service to and from the airport, or that there is a connecting room
available for their children or friends. Share your knowledge with your
customer. They will be grateful for your insight.
7.3.5 Unit Summary

There are many terms frequently used in the accommodation industry. The
terms are seen in both printed and electronic forms, as well as heard in
conversations between vendors, suppliers, and agents. Using them appropri-
ately with colleagues, hotel representatives and customers will help you to
communicate more quickly and efficiently. They may be used to describe
facilities and services (Unit 7.3.1) and hotel accommodation features including
types of rooms and beddings (Units 7.3.2 and 7.3.3), as well as meal plans
(Unit 7.3.4).

7.4 Sources of Hotel Information
• Explain the advantages and limitations of GDS access to information and

reservations (Unit 7.4.1).
• Source detailed hotel and destination information in reference sites
(Unit 7.4.2).
Unit Learning • Use travel related online resources to validate the reputation of accommo-
Objectives dation properties (Unit 7.4.3).
The best way travel professionals build customer confidence is by beging able
to answer their questions about the products or services offered and fully
describe recommendations made. But it is impossible to know everything about
every hotel. The travel professional must be resourceful and know how to
quickly access hotel information from reliable sources to answer customer
questions. It helps to refer to a library of reliable resources in printed or
electronic format. There are many resources with information on destinations
and hotels throughout the world. The Internet and the GDS can supply most of
the information you need on hotels. Your global distribution system (GDS) will
be a main resource. However, the GDS lacks the hotel images available in
online resources. No matter which resource you use, you will find detailed
information describing the hotel, its location, rating class, room availability,
room rates, credit cards honored, and commission rates.
7.4.1 The GDS as a Resource

Global Distribution Systems (GDSs) tend to be the travel professional's primary
tool. A GDS provides a single and efficient point of access to hotel information,
with the ability to make a room reservation. It is equipped with live access to
room inventories from hotel suppliers. As a result, agents access room
availability and rates in real time and can confirm room bookings instantly. The
GDS, although highly reliable as a source of hotel information, lacks the rich
image content and other graphics found on hotel and travel websites. Also,
very small hotels in little-known or remote destinations may not be listed in the
GDS.
In the GDS you will find the following information about the majority of hotels in
the world:
• Public and negotiated rates
• Rate guarantee and cancelation policies
• Room descriptions and amenities
• Rules or policies for each rate and room type
• Room types offered, room rate and number of rooms available
• Classification of each hotel (1 to 5 stars)
• Detailed information on hotel services and facilities, including spa, pool,
food and beverage outlets, business services, babysitting
• Hotel information–hotel address and closest airports and train stations
Unit 7.4: Sources of Hotel Information 587

• Destination information–points of interest to visit near the hotel

• Payment options–how guests can pay for their charges
• Key hotel contact information–Hotel General Manager, Reservation
Manager
You can search the GDS for a specific property or request an area search for
all hotels available. The area search will result in a list of available hotels for the
dates entered. This list allows you to compare the available hotels before
making the selection. This comparison list will show the rate range for each
hotel and whether the rate is commissionable or not. When searching for a
hotel in the GDS, you can limit the results returned based on the location you
want to see and the rate types you want to see.
For example, you can request to see hotels near the Eiffel Tower with
promotional rates only. Once the specific hotel is selected, you will see
individual room prices and the rules for making a booking for the rate and room
types. Figure 7.4.1 is a display of hotels with available rooms in Chicago. As
the only specification requested is for rooms available for exact dates, the hotel
listing is long.

Figure 7.4.1—Sample GDS display listing Chicago hotels with available rooms
from the 17 to 24 July

Figure 7.4.2 displays one of the room rates for the hotel in line 15 (TRUMP
INTL HOTEL). A number of rates are listed.
Figure 7.4.2—GDS display of room rates for hotel in line number 15 of previous
hotel listing

Figure 7.4.2 displays a GDS menu of information available for the hotel
property in line 15 from the list of hotels in Figure 7.4.1. It begins with a list of
features and amenities, hotel contact and address information, check-in/
checkout times, hotel rating and classification and 26 other topics.

Figure 7.4.3—Sample GDS display of hotel information in menu topic number 17
Key Learning Point

The advantage the GDS offers is its live access to hotel room availability with
reliable and quick reservation capability.

7.4.2 Resource Websites

There are advantages and disadvantages to using travel related websites as a
resource. There is an abundance of information available and it is often
updated frequently. There are countless numbers of travel websites to view.
Some websites are well organized and others are more difficult to navigate.
Before you begin searching, you should have a specific idea of what you are
looking for. Consider the destination, class of hotel, price level, whether the
property belongs to a chain or is independent, as well as your customer's
preferences. It is a best practice for travel professionals to source hotel
information from more than one site.
Some recommended reference sites with objective information include:
• Travel Weekly's Hotel Search–travelweekly.com/hotel
• World Travel Guide–worldtravelguide.net
• National Tourist Office
• Property and chain websites
7.4.2.1 Travel Weekly's Hotel Search

On this site, leisure and corporate travel planners and consumers can search
hotels by name, region, top hotel city, top hotel chain and by hotel classifi-
cation. All the information found on this site can also be accessed through the
GDS.

Figure 7.4.4—Sample hotel information found on Travel Weekly's Hotel Search

7.4.2.2 World Travel Guide

This website provides detailed destination and hotel information collected from
embassies, high commissions, tour operators, national tourist offices, health
organizations, and government bodies. It covers everything you need to know
about a hotel including a list of amenities, room pricing, booking information
and a hotel map.
When selling a hotel it is often necessary to provide destination specific

information too. This site features destination related information for every
country in the world to effectively answer all customer questions.
Figure 7.4.5—Information about South Africa from the World Travel Guide

7.4.2.3 National Tourist Office Publications and

Websites
These government offices share information about their regions, countries and
hotels. They offer books, pamphlets, websites, videos and training designed to
sell their destination. Tourist Board staff are eager to promote their destination
and often deliver product presentations to travel agents. Hotel listings on these
sites may be subject to membership in the tourist bureau, so not all hotels may
be listed. Further, the links for these properties usually bring the viewer to the
hotel or chain's website.
7.4.2.4 Property and Chain Websites

Hotels and chains develop websites describing their property facilities and
services. Their websites feature rich photos of the hotel property and
information on the hotel location. Most hotel websites today are designed to
generate hotel bookings and may be viewed on all mobile devices. This makes
it easier for consumers to access their websites and book rooms directly with
the hotel.
Travel agencies that have developed partnerships with hotels and other
accommodation suppliers can access “agents only” portals on the supplier
website. Most hotels make these rates available for sale on the GDSs as well.
They encourage website bookings to reduce costs but don't want to cut off the
agents’ primary booking tool entirely.
Key Learning Point

Online resources for hotel information display hotel photos and maps which the
GDS cannot do. For comparison and accuracy, it is important to use more than
one resource when searching for hotel information.
7.4.3 Review Resources

The Internet is also a valuable tool for obtaining consumer opinions on hotel
stays. As previously discussed, traditional rating systems, such as the 5-star
system, do not incorporate consumer reviews. The Internet has increased the
impact of consumer reviews and how travelers choose hotel products. Many
hotels themselves encourage past guests to share feedback. Hotel websites
now share guest comments regarding their experiences at the hotel.

Additionally, there are websites, online travel magazines and travel blogs that
discuss and rate hotel features and services. The customers themselves post
the content. Some useful examples include:
• Trip Advisor
• Smarter Travel
• Conde Nast Traveler
• Travel and Leisure
It is important to note that individual travelers post these reviews on sites often
without filter or verification, so they should be viewed as extremely biased.
Nevertheless, they can be a good indicator of past hotel performance and
guest satisfaction.
Key Learning Point

Review sites are another resource as they collect guest feedback about hotels
and share this information for the benefit of future travelers. Most consumers
access this information when planning a trip and see it as useful information.
Many use this information to influence the accommodation products they
choose.
Study Check 7.4
1. What is the travel agent's primary source for gathering hotel information?
(a) Trip Advisor
(b) World Travel Guide
(c) GDS
(d) Hotel websites
2. Which is an advantage for GDS users looking for hotel information?

(a) Access to property images
(b) Access to destination information
(c) Access to hotel room inventories
(d) Access to consumer opinions
3. Which resource can provide hotel information and destination information

about social customs, language spoken and population? Select all that
apply.
(a) Individual hotel websites
(b) Travel related websites
(c) World Travel Guide
(d) GDS

4. Why are hotel and chain websites so useful? Select all that apply.
(a) They are updated frequently
(b) They provide pictures and descriptions of a hotel
(c) Most share feedback from past guests
(d) Most can be accessed via computer or smart phone
5. Which resource rates accommodation products?

(a) Conde Nast Traveler
(b) Travel Weekly's Hotel Search
(c) World Travel Guide
(d) National tourist office websites
Case Study Unit 7.4

Mr. and Mrs. Rabineau live in Canada and they want to travel to India. They are
very adventurous and enjoy exotic destinations and experiences. They asked
their travel agent, Peter, to organize their air transportation and hotel
accommodations. They typically prefer hotels that offer services that make their
stay comfortable and enjoyable, without paying too much. They also want
Peter to organize activities with recommendations on what to visit and do in
India. Peter is a very experienced agent but he has never traveled to India and
has little knowledge of the destination and its attractions.
What can Peter do to gather reliable and relevant information about India–its
customs, attractions of interest and hotel recommendations for this
adventurous couple?
Apply Your Learning

You may be personally interested in one destination. Imagine you are a leisure
traveler and preparing to take a vacation. Choose a location and browse
through destination and hotel information using online resources available to
you through travel magazines and blogs. Speak with travel agents who have
booked travel to this location before and inquire about their hotel recommen-
dations. Create a reference of the information you learned about the desti-
nation including; hotels and the points of interest which are near each property.
Now view this same destination through the eyes of a business traveler. Select
two hotel options based on typical business travel needs and preferences.
Specifically identify why the choices would appeal to them. Search for these
hotels on one of the consumer review websites (e.g., Trip Advisor). Read some
of the comments and ratings posted by other travelers. Would you still choose
to recommend one of these hotels, or look for other options?

7.4.4 Unit Summary

Just as there are many types of products, there are many resources for
information gathering. Some are simple to use. Others may require more time
and skill. Hotel reference sites provide up-to-date, detailed information. The
most common and convenient resource for travel professionals is the GDS
(Unit 7.4.1). Some resources like Hotel Weekly's Hotel Search reflect objective
hotel content generated by a news organization which is well respected in the
travel industry (Unit 7.4.2). Online resources like TripAdvisor and Travel
Magazines and Hotel Websites can supplement the information found in the
GDS (Unit 7.4.3). When you are able to use these resources and determine
which give the most useful and reliable information, you can confidently make
recommendations to customers and book reservations.

7.5 Hotel Room Rates
• Describe various types of hotel room rates (Unit 7.5.1).

• Explain why hotel rooms have different prices (Unit 7.5.2).
7.5.0 Unit Overview

Unit Learning
Objectives There are many factors that determine how a room is priced. They include the
type of room, location in the hotel (standard room or ocean view),
By completing this Unit, season/demand periods (high or low), and special affiliations. Rates tradition-
you will be able to: ally have been based on “Rack Rate”, which is a full, standard, non-discounted
rate. In recent years most hotels have moved to a dynamic rate strategy where
rates are determined by increases and decreases in demand. This means that
the busier the hotel is for a specific date, the higher the base rate will be. These
base rates are called “Best Available Rate” (BAR). All other rates are based on
different levels of discounts calculated from the BAR. When guests request
rate information without mentioning any special affiliation, membership, or
other qualifying information, the BAR or Rack Rate is usually the price quoted.
Unless travelers are aware of other rates, they most likely will pay this amount
throughout their stay. By understanding rate structures, you can help to save
money and maximize value for your customers.
7.5.1 Rate Structures

Here are some of the most common rate structures you will be working with.
Rate Type Rate Code Eligible customers Discount Description

level on BAR
Negotiated NEG Businesses with 20%–30% This rate type is for companies whose
Corporate employees who traveling employees need accommodation.
travel regularly The discount percentage is based on the
company's volume of rooms expected to be
booked and usually requires the company
to guarantee a minimum number of room-
nights per year. For companies that send
employees to the same destination repeat-
edly, booking employees at the same hotel
each time makes business sense to reduce
its travel expenses.
Consortium CON Travel agents that This is a negotiated rate for travel agencies
are part of a consor- based on booking volume. Both individual
tium booking on properties and corporate offices of hotel
behalf of their chains offer this special rate to small travel
customers agencies that group together to combine
the room bookings they generate to nego-
tiate more competitive rates. A customer
may be willing to spend more on an exclus-
ive resort booking. If the agency is eligible
for a consortium rate with that resort, the
customer will save on the room cost which
would not be possible if booked elsewhere.
Government GOV 10% This is a specially negotiated rate between
a specific government agency and the hotel
for qualified government employees. Some
hotels will offer this price to any government
employee with proper identification.

Rate Type Rate Code Eligible customers Discount Description

level on BAR
Industry 25–50% Industry rates are for employees working in
the travel industry, including those of air-
lines, hotels, travel agencies, tour oper-
ators, and wholesale packagers. Proof of
employment identification is required and
some hotels only offer this to validated IATA
accredited agents holding the IATA ID
Card.
Military MIL Military rates are offered to military person-
nel and may be either negotiated or offered
to promote business in leisure destinations
close to military bases.
Wholesale/ 20–25% Negotiated with wholesalers who book
Tour large-volume business? These rates are
Operator “non-commissionable”. Non-commission-
able rates do not earn travel agent com-
mission paid by the hotel. These rates are
often bundle the hotel price with air or
cruise and other things to make a package
which is sold to the traveler. In the bundling
process a fee to the tour operator is added
so that the agency earns a fee for booking
these rates that is paid by the customer
directly.
Promotional PRO varies Generally offered when the hotel is not full,
to generate revenue. Business properties
may experience low occupancy during
weekends and the reverse may be true for
resorts or leisure hotels. These rates may
include food and beverage and be valid only
during specific seasons, holidays, or dates.
Package PKG varies Generally offered by resorts or leisure
hotels. These rates may include food and
beverage and some activities and may be
valid only during specific low demand
seasons, holidays, or dates.
Table 7.5.1—Standard hotel room rate structures
Key Learning Point

Most hotels have a range of rates in addition to the “BAR or rack rate.”
Unit 7.5: Hotel Room Rates 601

Key Learning Point

Hotels have many different rates in addition to BAR and Rack rate. They may
be negotiated by industry or group affiliations. These rate structures provide
savings based on conditions that hotel guests must qualify for. Or they may be
a rate discount offered during low occupancy periods.
7.5.2 Factors Affecting the Pricing of Hotel Rooms

Many factors affect how hotel room rates are set by the hotel management.
Major factors that influence the hotel room rates are:
• where the hotel and room is located in the building (view or away from
noise)
• size of the room
• newly renovated room compared with older room
• bedding type or number of people in the room
• occupancy levels of the hotel, overall demand in the location–during busy
times in any destination, customer demand allows the hotel to increase the
price
7.5.2.1 Location of Hotel Property

A hotel's location can affect the price dramatically. A room at a resort property
located on the beach is going to cost more than a room in a property at three
hundred meters walking distance from the beach. A room at a hotel property
which is centrally located in the city center is going to be more expensive than
one outside of the city center.
7.5.2.2 Location of Hotel Room

Hotels will base the pricing of room-rates according to a room's floor location.
For example, in New York City, the higher the floor, the farther away you are
from street noise, it is likely that the room will be more expensive than a room
on a lower floor. Corner room-rates are likely higher than mid-floor room-rates
because they are often larger rooms and offer views from two sides.

When a guest requests a room with a view of a mountain, a park, the water, or
a landmark, it is likely that the room will be more expensive than a room without
a premium view.
7.5.2.3 Room and Bedding Type

As explained in Units 7.3.1 and 7.3.2, there are different types of rooms with
different types of bedding. Table 7.5.2 illustrates examples you might see in
your GDS:
TYPE NO. OF BEDS TYPE OF BED

A-Deluxe
B-Superior T-Twin
C-Standard 1-1 bed D-Double
D-Minimum 2-2 beds Q-Queen
S-Suite K-King
N-Non-Smoking
Table 7.5.2—Rooms and Bedding Types
• Using the table above, hotels create codes such as A1K (Deluxe, 1 bed,
King).
• The rates for the rooms are determined by their type and bedding-in
general, the Standard rate is the hotel's entry level rate for regular size
sleeping rooms.
• The Superior room rate is for the moderate or middle rate charged. Rooms
of this type may be coded B1K, B2D and B1Q etc.
• The Deluxe room rate is the maximum or most expensive rate charged for
a regular sized sleeping room. Rooms of this type may be coded A1K,
A2D, and A1Q etc.
• Suites will be priced based on their size and number of rooms. Suites of
this type may be coded S1K, S2D, S1Q, etc.
• The Minimum rate will be a reduced rate due to the drawbacks of the room
like the room being smaller in size or having an unattractive view from the
windows. Rooms of this type may be coded D1T, D2D, and D1Q etc.
• You may see room codes that are not listed here; therefore it is essential
that you check the room descriptions provided by the hotel to ensure you
know exactly what is being offered to find the right room for your customer.
7.5.2.4 Seasons/Demand Periods

The time of year a traveler stays at a hotel can affect the price as much as
location. For resorts, the high season can be winter for skiing or summer for
seaside. Each will drop their rates when the season changes. For convention
properties, rates may be higher during specific months.
7.5.2.5 Occupancy
Hotels may determine rates based on the number of people a room will
accommodate. Rates are typically set as one price for one or two people.
Rooms that can accommodate three people might charge a supplement or
higher rates for the third person. All-inclusive resorts typically quote prices as
per person, as it includes food, beverages and other activities.

7.5.2.6 Premium Products

Hotels that have been in operation for a longer period of time often undergo
room renovation or refurbishment projects. These projects are typically
completed in phases allowing the hotel to remain open while room updates are
underway. A portion of the rooms are taken out of inventory while they are
being renovated. The rest of the rooms continue to be sold as normal. As the
newly refurbished rooms are completed, most hotel charge a higher rate for
these rooms, above what is charged for rooms that have not yet undergone
refurbishment, as these rooms typically offer guests and upgraded guest
experience.
7.5.2.7 Additional Costs

• Early departures: Many hotels charge for early departures (checking out
before the departure date originally booked). This can happen when a rate
is reserved that has a specific length of stay requirement. These rates are
usually deeply discounted and only offered if the stay is for the designated
length. Be sure to check the policy before booking and advise your
customers if this is the case with their hotel.
• Late checkouts: Some customers may need to keep their room past the
regular checkout time in order to change clothes after a late meeting or to
rest before a late departure.
• Mini-bar items: These are provided in many rooms for guest convenience
and stocked with a variety of beverages and snacks. They are also a big
revenue generator for the hotel as items are priced sometimes at double or
triple what they would cost downstairs in the gift shop or in the
neighborhood grocery store.
• Films: Hotels often provide access to movies through the TV entertain-
ment systems in guest rooms. Films can be selected using the remote
control, but there is usually an additional cost associated with each
viewing.
• Telephone calls: Your customers may not know that hotels charge very
high rates for local or long-distance telephone calls made from guest
rooms. Encourage them to use their mobile phone, or, prepaid telephone
cards.
• Room service: In-room dining usually has a percentage added on to the
bill for the service. While it is certainly more convenient, it can increase
your customers' hotel bills.
• Taxes: Most cities, regions, and countries add on sales or occupancy
taxes to the bill. The price quoted typically does not include them, so be
sure to check the fully-included price, also referred to as the “total” price,
which will include all taxes and fees.

Key Learning Point

There are a number of factors that impact the cost of a hotel. The most
common factor is the room-rate categories offered by a hotel. Other factors that
impact the rate of a room are things like room location, size and the type of
bedding found in a room. Other factors related to business demand also
influence room rates. These things include seasonality and overall hotel
occupancy. As demand increases so do rates. Other factors that cause the
cost of a hotel to increase are related to service used in the hotel. Some of
these services include using room service, mini-bar, departing the hotel earlier
than reserved or staying in a room after the official checkout time. Always
double-check rate quotations and ensure that customers know of additional
charges for other services and taxes.
Study Check 7.5
1. Which of these rates are non-commissionable?
(a) Wholesale
(b) Rack
(c) Package
(d) Best Available
Match the terms in Column A with the corresponding descriptions in

Column B.
Column A Column B
2. Military rate a. Usually a 20–30% discount off
BAR or rack rate
3. Government rate b. Buying power formed by agency
partnerships
4. Industry rate c. Requires government identifi-
cation
5. Consortium rate d. Travel industry employees
6. Package rate e. Often requires deposit or ad-
vance payment
7. Negotiated Corporate rate f. Promotes leisure travel close to
military bases
8. Wholesale rate g. Negotiated with wholesale
agencies
9. Promotional rate h. Offered when occupancy is low
2. 3. 4. 5. 6. 7. 8. 9.
10. Room service is charged at the same price as in the restaurant. TRUE or
FALSE?
(a) True
(b) False

11. A hotel will not charge more for a room with good a view. It is on a first-
come, first-served basis. TRUE or FALSE?
(a) True
(b) False
12. Customers are usually not charged for a late checkout if the hotel is
notified in advance. TRUE or FALSE?
(a) True
(b) False
13. A corporate rate is negotiated between which parties?
(a) The travel agency and a corporate customer

(b) A corporate customer and a preferred hotel
(c) The travel agency and a business travel hotel
14. Who is eligible for a consortium rate?
(a) The highest tier frequent stay members of a hotel chain

(b) A travel agency with high corporate travel business in five star
properties
(c) A group of smaller travel agencies booking the same hotel properties
(d) A multi-national company with employees traveling from different
continents
15. When is a resort rate applicable?
(a) When guests are booked in the low travel season

(b) When guests are booked a few days before arrival
(c) When the booking is for a large group of travelers
(d) When the booking is for government personnel
Case Study Unit 7.5

You will be required to make recommendation and quote correctly hotel room
rates for your customers. There is an enormous amount of information
available to you regarding room rates for any destination. The cost of a room
may be impacted by a number of factors that can increase and decrease the
cost of a customer's stay.
Mrs. Jordan is your client who lives Hawaii. She is planning a trip in celebration
for her husband's 45th Birthday. He is an avid history enthusiast and loves to
visit destinations with rich culture. Their earlier travels have taken them to
locations in parts of Asia and South America. They enjoyed exploring local
sites and culture during the day and returning to their full service hotel in the
evenings, as they enjoy the comfort and level of service they experience.

Since this trip marks a special birthday celebration, they would like to travel to
Europe for the first time and experience the best hotel in key cities. They would
like to visit the London, Paris and Rome during this ten day holiday.
1. How would you determine what rates to offer Mrs. Jordan?
2. Since rates are quoted in local currency, in what currency will these rates
be quoted?
Apply Your Learning

Understanding hotel rate structures can be complex. Review a hotel's rates
completely to determine the best offer for your customer. Pay close attention to
customer requests for hotel room rates. If you do not have a prior profile of the
traveler, create one according to your own agency's format. Include in your
customer profile if the guest is eligible for negotiated corporate rates based on
where they work or other affiliations. If your agency is part of a consortium,
determine which of your customers would benefit from your affiliation and make
a note to their profile.
When you hear of hotels that offer similar rates and are of a better standard,
make a note in the record so you can inform the customers the next time you
speak to them. As you begin to track your customers' travel patterns you can
make similar hotel suggestions in various destinations.
7.5.3 Unit Summary

The hotel industry has various rate structures (Unit 7.5.1) based on local
market, season, location, events, and traveler preferences. Where possible,
inform customers of potential additional travel costs (Unit 7.5.2). Some rates
are published while others are not. Unpublished rates are negotiated and only
offered to specific companies, industries, or groups. With persistence, you can
usually find a way to secure your customer one of the discounted rates. When
you utilize the required information available to you, you will gain confidence
and be able to quote hotel-stay prices with authority.

7.6 Hotel Reservations and Payments
• Follow five steps to complete a hotel room reservation (Unit 7.6.1).

• Use sales and payment terms when communicating with customers and
hotel representatives (Unit 7.6.2).

Objectives
Your task will be to complete the room reservation process in five steps. You
By completing this Unit, must make sure that your customers are securely reserved at the hotel, and
you will be able to: their rooms are available when they arrive. By asking the right questions,
adding the correct information to the room booking and double-checking for
accuracy, you will meet your customer's expectations.
Although there are other methods to reserve hotel rooms, the majority of travel
professionals rely on the Global Distribution System (GDS) to make a room
reservation. The GDS is a preferred reservation tool because it is convenient
and allows the travel agent to self-manage the hotel room reservation. For this,
you will need GDS functionality training in booking hotel segments.
The hotel industry uses some common and some unique terminology. To
communicate about hotel products and services, effectively you want to
understand and use these terms correctly.
7.6.1 Reservations
There are five basic steps to reserving hotel accommodations.
Step 1–Collect booking requirements

Communicate with the customer to collect the following information:
• destination
• dates
• purpose of trip (business, leisure, or combination)
• room type (see Unit 7.3.1)
• bedding type (see Unit 7.3.2)
• meal plan (see Unit 7.3.3)
• any additional services required or cost of items to pay for (see Units 7.3.1
and 7.3.2)
• customer's frequent guest program memberships and any hotel prefer-
ences

Step 2–Match requirements with a rate category

In your GDS, match a room type with a rate category (see Unit 7.5.1).
Step 3–Look for room availability

Check room availability for the requested nights and rates in your GDS.
Figure 7.6.1—Sabre GDS hotel availability display in Miami for the night of 10 June
Unit 7.6: Hotel Reservations and Payments 609

US MIA FL ALL AREAS SA 10JUNYY-11JUNYY OCC:1

AR CUR
1 WV!EB HOTEL MIAMI D USD
=! 159.20-524.00
2 XT!REGENCY HOTEL MIAMI A USD
=! 102.00-159.00
3 MR!DELANO D USD
! 408.00-4509.00
4 PU!PULLMAN MIAMI AIRPORT A USD
=! 153.90-571.00
5 LW!BILTMORE MIAMI-CORAL GABLES R USD
=! 463.20-628.04
6 LW!CARILLON MIAMI WELLNESS N USD
RESORT
=! 495.00-1395.00
7 MR!MONDRIAN SOUTH BEACH R USD
! 161.10-699.00
8 DI!DAYS INN MIAMI AIRPORT NORTH A USD
=! 89.00-109.00
9 PH!EAST MIAMI PREFERRED LVX D USD
=! 249.00-2999.00
MORE
Figure 7.6.2—Amadeus GDS hotel availability display in Miami for the night of
10 June
Your GDS displays accurate information as it retrieves availability from the

hotel's central reservations system on a live basis. However, there may be
times when the hotel does not offer all their rooms on the GDS and may have a
room available even when the GDS shows it as full. Therefore, if the preferred
hotel is not available in the GDS, visit the hotel's website and request the same
room availability or call the hotel reservation center or even the hotel property
directly.
This approach is commonly used by hotels to maximize room sales for
especially busy or high demand periods, or for special room accommodations,
like suites. Sometimes hotels sell more rooms than they actually have,
overbooking the hotel. They do this to make up for any no shows and
cancellations that may happen too late to resell the hotel room. If the
overbooked hotel receives too few room cancellations, it may have a problem
when confirmed guests check in. This is when the unsold rooms not made
available in the GDS can be used to avoid inconveniencing guests checking in.
This is a strategic decision by the hotel to ensure that all guests with
reservations are accommodated, and that their most exclusive inventory is not
open for sale to the world.
If the preferred hotel is not available at all, you should begin a search for
another hotel, first through the GDS and then by checking the websites or by
contacting properties directly. Sometimes hotels are sold out for conferences or
special events in select cities. Nevertheless, you may still find available rooms
through local tourist bureaus or local wholesalers who may have a block of
rooms that they are holding for their customers. Tourist bureaus generally deal
with individual travelers while wholesalers generally sell to travel agents.

Step 4–Review rate, guarantee and cancellation policies

If rooms are available, read and interpret the room rate, guarantee and
cancellation policies before making a booking. You must explain these policies
to your customers and they must be willing to accept them.
Most city hotels offer a simple cancellation policy, requiring a guest or agent to
cancel a reservation 24, 48 or 72 hours prior to day of arrival. In some cases
the cancelation policy may be more restrictive.
Rate Policies
The hotel may require a deposit, full payment in advance of check-in, or there
may be a minimum length of stay requirement to be eligible for a rate. This is
important information for your customer so that they are aware of the policies.
Hotel properties that require a room guarantee want the customer's credit card
number entered in the room reservation. Hotel guarantees help in two ways.
They ensure that a room will be held for a guest on a specific date regardless of
their time of arrival on that day. It also signals, from a hotel staffing perspective,
that the booked room will be occupied and that staff must be scheduled to work
and service the needs of hotel guests.
When guests do not arrive and do not call ahead to cancel a room reservation,
they are known as “no-shows”. The guarantee allows the hotel to charge the
no-show guest's credit card for the un-cancelled room night. Hotels ask for
room guarantees to prevent rooms from remaining empty and to prevent
scheduling staff to work when they are not needed. “No-Shows” are charged
for not respecting cancellation policies. That charge can be a single night's fee
or more. It is important to know the hotel guarantee policy and inform your
customer.

Figure 7.6.3—Sabre hotel rate display for the Kimpton Epic Hotel in Miami for the night of 10 June

**** MORGANS HOTEL GROUP ****

US MIA FL SA 10JUNYY-11JUNYY OCC:1
MR!MONDRIAN SOUTH BEACH MIAMON R TAXI
CAT:S
1)179.00 E BEST AVAILABLE RATE
240.54 I STUDIO-OPEN STUDIO APT W SMALL COUCH-CHAIR-DE
B1TRA9 USD ROOM:AIR ALA MAI IRO RCT SMO CWD VIEW:CIT
CXL > 18:00 G:CC COM:10.00PERCENT
274.74 I BAYVIEW STUDIO-OPEN STUDIO APT W SML COUCH CH
B1QRA9 USD ROOM:AIR CWD IPD MAI IRO RCT TPH VIEW:BAY
320.34 I ONE BEDRM SUITE-KING BEDDED SUITE APT. SEP LI
S1SRA9 USD ROOM:DWL MAI RCT AIR ALA CTV CWD VIEW:CIT
331.74 I DLX BAYVIEW STUDIO APT-UPPER FLR. OPEN SPACE
A1QRA9 USD ROOM:AIR CTV CWD DWL FIL IPD HAD VIEW:BAY
MORE
>
Figure 7.6.4—Amadeus hotel rate display for the Mondrian South Beach Hotel in
Miami for the night of 10 June
No guarantee/hold policy
Some hotels allow reservations to be made without providing a credit card
number for guarantee and without prepayment or deposit. These bookings are
typically held until a specific time on the day of arrival. Most often the hotel will
hold these reservations until 4:00 pm or 6:00 pm. If a hotel accepts
reservations without payment or guarantee, these bookings will cancel on the
day of arrival if your customer does not check-in before the hold time indicated
at time of booking. Reservations without a guarantee risk leaving your
customers without a hotel room waiting for them when they arrive at a hotel,
especially in busy periods. Hotels are not required to hold rooms on a non-
guaranteed reservation.
Non-cancellable/Non-refundable policy
This policy prevents a refund to the customer if the room is cancelled after it is
booked and paid. It is a common condition that applies when deep discount
rates are offered 60 or 30 days before check-in. These discount rates are non-
refundable. Customers who are booked at one of these rates must be very sure
that they are traveling and that their travel dates will not change. If they are
forced to change their plans they will be charged the full cost of the reservation.
Refundable advance cancellation policy

Resorts attract early room bookings with promotional rates or discounts. These
reduced and prepaid room rates usually require a cancellation to be received
no later than 30, 45 or 60 days before the arrival (check-in) date. If the
cancellation is received after the cancellation deadline, the resort will charge
the guest based on the cancellation policy of the rates at time of booking. This
charge may be equal to partial or full payment of the total cost of the guests
stay.

What happens if a customer wishes to make a reservation at a hotel with this

kind of policy within the cancellation policy period? This will require a clear
explanation of the cancellation policy to your customer. The customer must
accept that the room booking is immediately non-refundable. If they agree to
the cancellation terms they must understand that if they cancel this reservation
they will lose or forfeit any deposit or prepayment made for this reservation. A
booking can be made today and be already past the cancelation date.
Always remember to advise your customers of room booking policies.
Step 5–Reserve the room

Make more than one recommendation so that customers feel they have
choices. There are currently so many hotel and room options available. Give
them options in rate, location, and brand. Always remember to reconfirm the
details of all reservations to the customer to ensure accuracy and gain your
customer's confidence.
If a room is available and the policies are acceptable to the customer, reserve
the room using a credit card (your agency's or your customer's) whenever
possible for guarantee. The customer pays all room charges at the hotel at the
time of checkout. Credit cards provided for guarantee are not charged before
the customer checks out of the hotel, unless the booked guest does not cancel
the room according to the hotel cancellation policy.
Some resorts and smaller hotels may require a deposit to confirm the
reservation. For this you would follow your agency's policies for processing
reservation deposits.
When making any room reservation, be sure to get a confirmation number for
all bookings made. If you are making the reservation directly with the hotel by
telephone, be sure to get the name of the hotel's reservation agent and the
confirmation number for the booking. The confirmation number is proof of the
room reservation. Most hotels will request an email address in order to send a
written confirmation of the reservation. Supply your email address and request
that they advise you of rate, guarantee, and cancellation policy by return email.

Figure 7.6.5—Sample hotel confirmation directly from the hotel booked

RP/GVAC22555/GVAC22555 MC/SU 22MARYY/1341Z 6D86U8

1.TAYLOR/ANDREW MR
2 HHL MR HK1 MIA IN10JUN OUT11JUN 1B1TRA9 USD179.00 DLY MON
MONDRIAN SOUTH BEACH/BC-B1TRA9/BS-81490824/CF-61889SB108821
/G-CCCAXXXXXXXXXXXX3224EXP1117 *MR+
SEE RTSVCH
3 AP GVA +41-22-7702531 - IATA - A
4 APE CANDIDA@IATA.ORG
5 TK OK22MAR/GVAC22555
>
RP/GVAC22555/GVAC22555 MC/SU 22MARYY/1341Z 6D86U8
2 HHL MR HK1 MIA IN10JUN OUT11JUN 1B1TRA9 USD179.00 DLY MON
MONDRIAN SOUTH BEACH/BC-B1TRA9/BS-81490824/CF-61889SB108821
/G-CCCAXXXXXXXXXXXX3224EXP1117 *MR+
+HOTEL COMPLETE RESERVATION DETAILS
---------RATE INFORMATION--------------------------------R - RAT
179.00 USD B1TRA9 G
179.00 USD PER NIGHT STARTING 10JUN17 FOR 1 NIGHT(S)
179.00 USD TOTAL RATE STARTING 10JUN17 FOR 1 NIGHT(S)
COMMISSION: 10.00 PERCENT
HTL/BC-B1TRA9
---------ALL KNOWN TAXES AND ESTIMATED TOTAL AMOUNT------T - TTX
36.48 USD RESORT FEE FROM 10JUN17 UNTIL 11JUN17 PER ROOM
PER NIGHT
14.00 PERCENT ROOM ONLY FROM 10JUN17 UNTIL 11JUN17 PER
ROOM PER NIGHT
240.54 USD ESTIMATED TOTAL AMOUNT INCLUDING MANDATORY
TAXES, FEES AND SURCHARGES
---------RATE INCLUSIONS / EXTRAS------------------------I - INC
ROLLAWAY ADULT: 35.00 USD PER NIGHT EXCLUDED
MORE
+HOTEL COMPLETE RESERVATION DETAILS
Figure 7.6.6—Sample GDS PNR with booked hotel segment in Miami
It is important to guarantee all reservations to protect your customer's room

booking.
Key Learning Point

There are five basic steps to making a room reservation. First, collect
requirements from the customer. Play close attention to match your customer's
needs with the room and hotel you book. Second, match the requirements with
a hotel product and rate. Third, check room availability. Fourth, advise the hotel
rate, guarantee and cancellation policies. Understand all guarantee and
cancelation policies associated with a rate so that you can explain them
completely to your customers. Fifth, book the room accepted by the customer
and secure the room confirmation number. If your GDS does not show room
availability for the hotel property required, try booking the room from the hotel
website or contacting the hotel directly.

7.6.2 Sales and Payment Terms

In the process of making a reservation with a hotel, these terms might be used:
• Commission: A percentage of the room rate that is paid to a travel agent
for selling the room. For example, some hotels pay the agency 10% of the
room rate.
• Deposit: Money paid to the hotel property to hold the reservation for a
specific amount of time. Usually 1 or more nights' value of the booking.
• Cancellation policy: The rules and deadline for changing or canceling a
reservation without penalty, and the penalty fee charged if the room is
cancelled after the deadline.
• Central reservations office (CRO): Call (telephone) center making
reservations for hotel companies. Usually responsible for accepting reser-
vations for all hotels within the chain or brand.
• Confirmation: The hotel's written acknowledgement of a room reservation
represented indicating all the details of policies and what was booked.
• Confirmation Number: A number or code used as a reference to identify
and retrieve a confirmed hotel reservation in the hotel's system.
• Electronic Miscellaneous Document (EMD): An IATA standard docu-
ment used to record airlines' sales and track usage of charges. EMDs are
issued by airlines and travel agents after collecting ancillary services
payment such as baggage fees and chargeable products such as hotel
bookings.
• Frequent guest program: Similar to airline frequent flyer programs,
guests earn points and are acknowledge for their loyalty (See Unit 7.8).
• Group bookings: A block of rooms set aside for groups of ten or more
people and negotiated at a special price (see also room block).
• Guarantee: Hold status of a room reservation. The customer gives a
deposit or credit card number so that the hotel will guarantee to hold a
room until the hotel check-in deadline.
• Market segments: May also be known as price tiers. This distinguishes
the type of customer market targeted by the hotel. For example: business,
leisure, association, etc.
• Meal plans: Food inclusive packages offered by hotels for guests staying
in the hotel.
• No-show: The status of a reservation when the guest does not arrive by
the check-in deadline. Many hotels will charge the price of at least one
night's stay as a no-show charge on the guarantee credit card.
• Occupancy: From the agent's perspective, this is the rate charged per
person. The rate may be charged as a single or double (e.g., single
occupancy, double occupancy, etc.). From the hotel's perspective, occu-
pancy means the number of guests the hotel is accommodating on any
given night (e.g., 80% occupancy of a 400-room hotel would be 320 rooms
sold).
• Overbooking: The practice of booking more than the hotel's capacity of
rooms by a hotel in anticipation of cancellations or no-shows.
• Override: An additional commission paid by the hotel as a sales incentive
(see also commission).

• Package: An inclusive set of products or services designed to attract the

leisure traveler. Packages are customarily priced lower than when products
or services are sold individually (see also wholesaler).
• Rate categories: The types of rates offered at a hotel. Examples of rate
categories are Best Available, Negotiated Corporate, Promotions and
Packages.
• Room block: A group of rooms usually reserved through travel agents or
wholesalers. These are held with a deposit.
• Room night: One overnight stay per room, e.g., two persons in one room
for one night = one room night.
• Upgrade: To move up to a higher quality of room at extra or no cost.
• Value added tax (VAT): A government-imposed tax added to the room
rate. This is common in many countries.
• Walking: Sending the booked guest to another hotel property when the
hotel is fully occupied and oversold by the time the guest checks-in. Hotels
typically pay the costs to move the guests for one night and invite them
back to the hotel the next day. Walking guests are inconvenienced by the
hotel booked, and as compensation, the hotel may offer extra amenities
and perhaps an upgrade to a more expensive room.
• Wholesaler: A supplier who sells packages through travel agents.
Key Learning Point

You may hear terms used to describe hotel sales and payment processes.
Some of them are used in ordinary speech, and others are specific to the hotel
industry. For example, occupancy can mean one thing to hotel staff and
another to you the travel agent. Understanding these terms will help you better
communicate with hotel suppliers.
Study Check 7.6
1. Which information is needed to research accommodation options for a

travel customer?
(a) The customer's passport number

(b) The number of people sharing a room
(c) The journey's point of origin
(d) The number of baggage at check-in
2. Be proactive and think of ways you can reserve accommodation for your
customers without relying only on your GDS. Select all that apply:
(a) Hotel website

(b) Contact hotel directly
(c) Tourist bureaus
(d) Wholesalers

3. Which is an example of a hotel cancellation policy?
(a) The room rate is non-refundable

(b) A credit card number is necessary to reserve
(c) The room rate requires a three night stay
(d) Room charges are charged to a credit card
4. Which is proof of a hotel room booking?
(a) A block number

(b) A guarantee code
(c) A cancellation code
(d) A confirmation number
Match the terms in Column A, with the correct, corresponding descriptions

in Column B.
Column A Column B
5. Market segment a. Supplier of tour packages
6. VAT b. Rate charged per person
7. Wholesaler c. Non-affiliated hotel
8. Deposit d. Sending guest to another prop-
erty
9. Occupancy e. Price tier
10. Walking f. Redeemed for upgrades,
discounts
11. Independent g. Government imposed tax
12. Frequent guest program h. Holds a reservation
5. 6. 7. 8. 9. 10. 11. 12.
Apply Your Learning

If you are not already working for a travel agency, tour operator or airline with
access to a GDS, ask a local travel agent to show you how the GDS displays
hotel information and availability. Search for hotels by a city and by hotel name.
Compare room rates displayed by looking at more than one date of arrival or
two different lengths of stay. Look for the hotel description, room descriptions
and rate descriptions. Compare the information displayed by the GDS with
information displayed on hotel websites.
Contact one hotel from each major category (i.e., Motel, Boutique, All-Suites)
and ask about their terms and conditions in the table provided for you below:
• deposits
• guarantees
• check-in deadlines
• checkout deadlines
• cancellations
• and no-shows

Compare the answers and note any differences between business and leisure
hotels.
Category Airport Luxury Boutique Spa Hotel All Suites Conference/ Limited-service Motel
Convention
Deposit
Guarantee
Check-in
Check-out
Cancellation
No-Show
7.6.3 Unit Summary

There are five steps to follow when making make accurate and trouble-free
room reservations. In the first step, it is important to thoroughly establish your
customer's needs. In the second step, match a room product with the
customer's needs. The more you know about their needs, the easier it will be to
match them with the right accommodation. After finding an available room, be
sure to advise your customer of the rate policies, especially cancellation and
refund policies. Finally, a room reservation can be made (Unit 7.6.1).
Be selective when using industry terminology with your customer. Some terms
are appropriate to use when communicating with customers, for example,
confirmation, guarantee, and meal plans. Others are considered industry
jargon and use should be limited to those working in the travel industry, such as
walking or fam trip (Unit 7.6.2).

7.7 Hotel Reservation Terms and Conditions
• Advise customers of hotel cancellation policies and the consequences of

not cancelling before deadline (Unit 7.7.1).
• Quote room rates in published currency and convert to local currency
(Unit 7.7.2).
Unit Learning • Find and interpret commission information (Unit 7.7.3).
Objectives
By completing this Unit, 7.7.0 Unit Overview
Reviewing all hotel terms and conditions is an important part of the reservation
process. It is your responsibility as a travel professional to fully understand
them and correctly inform your customers about them. Your customers trust
that the recommendation you make will be in their best interest. In addition to
hotels, wholesalers and tour packagers each impose their own conditions.
When accommodation is packaged as part of a tour, you can usually find the
terms and conditions on the tour operator's website or may receive them
verbally by calling them on the phone. For individual hotels, booked directly by
phone telephone, the terms and conditions will be shared with you as part of
the reservation call and later sent to you by email. If the booking is made via
the hotel website, the same terms and conditions are typically noted as part of
the rate description and reconfirmed by email. There are many unique hotel
terms and conditions in existence. The most common policies that may cause
problems for you and your customer are likely to be those that deal with
cancellations, no-shows, rates, and commissions. Be sure to ask about them
so that you understand them completely when making the hotel reservation.
7.7.1 Terms and Conditions Related to

Cancellations
The following terms define the rules and consequences for cancelling a room
reservation.
No-Show
A no-show is when a guest does not check-in at the reserved hotel by the
check-in date and time and does not cancel the reservation in advance.
No-shows can cause a problem for hotel properties as there is no time to resell
the reserved (but unused) room. Therefore, most city hotels charge the
no-show guest one room night's cost for holding the room that your customer
did not used.
Resorts may handle a no-show differently. Guests who do not check-in at a
resort according to confirmed reservations may be charged for the entire stay
booked. For example, some resorts enforce a 30-day advance cancellation
policy. Since many resorts are in a destination that attracts international guests
who can only get there by air, it is impossible to resell a room at the last minute.
Customers must clearly understand the cost associated with not checking in to
the hotel as planned, and incurring a no-show charge. It is your job to ensure
they understand this potential charge, and that they make every effort to cancel
reservations prior to the cancellation deadline to avoid no show-charges. If
customers are reserving a resort vacation, a very expensive hotel or tour
package, it is often a good idea to advise them to buy trip cancellation
insurance. Trip cancellation insurance offers coverage for customers who must
cancel due to illness or death. Coverage varies by travel insurance provider.
Unit 7.7: Hotel Reservation Terms and Conditions 621

It is important to advise customers to review all of terms of the trip cancellation

insurance they purchase to ensure they understand what is covered, and what
documentation is required if a claim is made.
Cancelling a Reservation
When a customer changes plans and you are cancelling directly with the hotel,
always get the name of the person who accepts the cancellation and get a
cancellation number. Keep a record of this information, along with the date and
time you cancelled the booking, in case the hotel mistakenly charges a
no-show fee.
If you are canceling a reservation for your customer after the cancellation policy
deadline, your customer will be charged a fee to cancel this reservation. This
fee will be equal to the late cancelation charge outlined at the time the
reservation was booked. This charge could range from one room night to 100%
of the total cost of the stay. It is important that you and your customers
understand these terms and conditions and how charges are applied on room
reservations before they are booked to avoid unexpected costs if a late
cancellation is made.
Key Learning Point

Explain the hotel booking cancellation terms and conditions to customers as
part of reservations process as it is important for them to understand the hotel
offer and the potential costs associated with the offer. These terms include the
cancellation policy and the cost associated with cancelling a reservation after
the cancellation deadline. Also included is the no-show cost if the customer
fails to cancel or check-in to the hotel on their arrival date. It is recommended to
provide the room cancellation terms and conditions for all bookings in writing,
especially if there are significant financial penalties involved.
7.7.2 Currency Fluctuations

Currency fluctuations can increase the cost of travel, especially the cost of
accommodation abroad. The value of world currencies changes daily, based
on global market conditions. Because of unpredictable currency fluctuations,
the equivalent room rate in the traveler's home currency may be higher or lower
when the guest checks out of the hotel. Always quote rates in the fixed
currency published by the hotel. You can inform him of the approximate
equivalent rate in his home currency. Make sure that the customer understands
that the exchange rate is subject to change, so the final equivalent amount
charged in home currency may be different. The hotel's rate in local currency is
the only one that should be communicated in writing.
Key Learning Point

Always quote room rates in the published currency regardless of if you are
doing so verbally or in writing. It is important to advise customers that the
equivalent amount in the customer's home currency can change depending on
the exchange rate on the check-out date.

7.7.3 Commission Policies

Commission structures vary based on the rate selected, as well as the booking
method. As a general rule, commission is 10%, but some promotional rates
may offer more. Some negotiated rates are non-commissionable. Your
reference is the GDS where there are symbols indicating the percentage of
commission paid for specific rates. If you are unsure if a rate is commission-
able, contact the hotel directly.
Each hotel has their own policy for how often commissions are paid.
Commissions are paid after the customer stays, and then check out of the
hotel. Some hotels pay commissions monthly or within days.
Wholesalers and online hotel booking sites also offer agency commissions.
Read their commission payment terms on their website or ask if you make the
booking by telephone.
All commissions earned for hotel booking, regardless of how they are booked,
are paid to the agency you work for, as you are a representative of your travel
agency. It is important to follow agency policy for tracking bookings you make
to ensure you receive commission payments that are due you.
Key Learning Point

GDS systems normally publish hotel commission rates. Alternatively, if you are
not sure if a rate is commissionable contact the hotel directly for clarification.
Commissions are paid after a customer stays in a hotel and checks out.
Commission payments are paid based on the payment policy of a hotel or
chain. Follow your agency's policy for reporting commissions earned and
payment which you are due.
Study Check 7.7
1. Which is always TRUE about room no show charges?

(a) Charges apply when reserved rooms are cancelled by the cancellation
policy deadline
(b) Charges are equal to the full booking amount paid
(c) Commission is paid to agents as a percentage of the no show charge
(d) Charges apply when the hotel guest never checks-in for an un-
cancelled room
2. Which is FALSE regarding hotel room rates?

(a) Advise the room rate to customers in writing in the published currency
(b) Never quote the room rate in the customer's equivalent home currency
(c) Room rates are published in several currency options
(d) Hotels guarantee the room rates displayed and cannot change them

3. What influences hotel commission policies?

(a) Government regulation
(b) Your relationship with the hotel
(c) Individual hotel or chain decisions
(d) Your travel agency's policy
4. Which is generally TRUE regarding the room cancellation process?

(a) Trip cancellation insurance covers involuntary no show charges for
booking errors
(b) A cancellation number proves that the property was advised of the
room cancellation
(c) All properties require a standard 24-hour notice for room cancellations
to avoid penalties
(d) Room no show charges must be invoiced to the booking travel agency
Apply Your Learning

Contact one hotel from each major category (i.e., Motel, Boutique, All-Suites)
and ask about their terms and conditions in the table provided for you below:
• deposits
• guarantees
• check-in deadlines
• checkout deadlines
• cancellations
• and no-shows
Compare the answers and note any differences between business and leisure
hotels.
Category Airport Luxury Boutique Spa Hotel All Suites Conference/ Limited-service Motel
Convention
Deposit
Guarantee
Check-in
Check-out
Cancellation
No-Show

7.7.4 Unit Summary

Hotel management protects itself and its revenues by imposing cancellation
terms and conditions on room reservations. Save your customers and yourself
time, frustration, and money by reading hotel terms and conditions carefully
and advising your customers before their departures (Unit 7.7.1). Currency
exchange rates fluctuate, so it is important quote room rates in published
currency as this cost will not change regardless of currency fluctuations. It is
important to note that if a customer pays for their stay with a credit card issued
in their home country, the actual cost charged to them may vary based on
currency conversion rate (Unit 7.7.2). Finally, there is no standard commission
payment to agent for hotel room sales. Commission rates are individual, on a
hotel-by-hotel basis (Unit 7.7.3) Commission are not paid until after a customer
stays, and then checks out of a hotel. Follow the procedures of the agency you
work for to track and claim commissions you have earned.

7.8 Hotel Guest Loyalty Programs
• Name and explain the hotel industry's three main frequent stay program
types (Unit 7.8.2).
• Select hotel brand for each customer according to guest loyalty member-
ship (Unit 7.8.1).
Unit Learning • Recommend membership's best suited to customers' travel habits
In addition to choosing the right accommodation for your customer based on
their needs, it is also important to know whether membership in any loyalty
programs will provide additional value in the form of free services or “perks”.
This Unit examines the various types of guest loyalty programs offered by hotel
companies. There are many different ways a hotel company can encourage
guests to return to their brands every time they travel. Reward benefits vary
depending on the market segment the properties serve, and the types of
travelers they attract.
7.8.1 Types of Hotel Loyalty Programs

A hotel loyalty program (also known as “Frequent Stay Program”) rewards
guests for staying at their hotel. The objective of hotel reward programs is to
attract repeat business from guests who return to the same hotel property or
hotel brand every time they travel to keep earning reward points. Loyalty
programs with hotel parent companies that own or manage many smaller
brands, such as Marriott or Wyndham, reward guests with points for staying in
any of the brands within their family. These programs are flexible, allowing
guests to use their membership rewards for business or leisure travel and
create more opportunities to earn rewards.
Different types of programs include:
1. Point-based
2. Stay-based
3. Value-added
7.8.1.1 Point-Based Loyalty Programs

Point-based loyalty programs enable guests to collect points every time they
stay at a participating hotel or use their facilities. Each program awards points
in a variety of ways:
1. A specific number of points for each stay, regardless of how many nights
are booked (for example 500 points per stay).
2. A specific number of points for each booked night (for example 500 points
for each night stayed).
3. One or more points for the amount spent for the room night, excluding
other charges (for example, 1 point for each dollar spent).
4. One or more points for the amount spent in the hotel, including other
charges such as hotel food and beverage charges or spa charges (for
example, 1 point for each dollar spent). This reward scheme encourages
members to use hotel facilities near home, such as eating at the hotel's
restaurant, to earn points without a room reservation.

The reward points earned have value and can be used to pay for future hotel
stays. Just like airline programs, these points can be redeemed (exchanged or
used) to pay for room reservations made online, via the GDS or by telephone.
For example, a business traveler always stays at brands within 1 family of
hotels when he travels for work. He earned 300 points for every night stayed at
mid-scale brands and 500 points for every night at luxury brands. At the end of
the year, he has 50,000 points. He decides to take his wife to Paris for a
weekend to celebrate their wedding anniversary and uses his points to pay for
a room overlooking the Eiffel Tower at one of the company's hotels.
Hotel properties publish the number of points needed for a nightly stay, just like
currency prices. Stays purchased with points are subject to the same rate
restrictions as stays paid for with money, including maximum stays, room type
restrictions or blackout dates.
7.8.1.2 Stay-Based Loyalty Programs

Similar to point-based programs, stay-based programs track and record the
number of nights a member stays at participating hotels. The total number of
nights stayed is credited to the member's account. Members can use (redeem)
these room night credits to purchase more room nights at a participating hotel,
whether the member has previously been a guest there or not. Brands
participating in stay-based loyalty programs establish a scheme for purchasing
room nights with rewards. A participating hotel or company may impose
restrictions based on room location, time of year (season) and room type, while
another doesn't. Some offer 1 free night for every 5 or 10-night stays. Free
nights can also be accumulated so that the traveler can redeem multiple nights
when they are ready.
For example, a business traveler stays at the same brand for 40 nights in the
same year. He accumulates 1 free night for every 5 nights he pays for. At the
end of the year, he has 8 free nights accumulated and can use them to take his
family on vacation to Disney World.
Some companies limit the number of free nights a guest can redeem in each
stay. These limitations are different from one company to another.
Sometimes, a loyalty program combines elements of the point-based and stay-
based programs into one, allowing members to earn and redeem a combi-
nation of points and stays for free night awards.
7.8.1.3 Value-Added Loyalty Programs

Value-added programs work differently from point and stay-based programs.
They offer instant rewards or perks to members from the time they join the
program. There is no need to track, accumulate and redeem points or stays.
Sometimes the perks get better over time, with more frequent stays. This is a
popular solution for independent properties not part of a company brand or
group. Members do not purchase rewards. Hotels that participate in value-
based programs are generally upscale or luxury hotels. In addition to the
personal attention and recognition members receive; value-added extras can
include any or all of the following:
1. Room upgrade
2. Welcome amenity such as wine or chocolates
3. Free Wi-Fi, business center, health club access or other business related
service
Unit 7.8: Hotel Guest Loyalty Programs 627

4. Free breakfast
5. Access to club lounge offering breakfast, evening cocktail hour and a quiet
place to meet and relax
Key Learning Point

Similar to the airline industry, the hotel industry makes reward programs
available to encourage guest loyalty and repeat business. There are three main
program schemes. Point-based and stay-based programs offer the ability to
earn free room nights. Value-based programs reward members with free perks.
7.8.2 Terms of Membership

As with all programs, there are rules and terms controlling how these programs
are managed and the expectations of the traveler and the hotel. This is
especially true for point-based programs. It is your job as a travel agent to
understand what those rules are and to explain them to your customer before
you confirm any reservation. Managing the customer's expectations will ensure
that there are no surprises and complaints.
Hotel company websites and the GDS have special sections about their
membership programs which are a helpful resource. There is usually a section
informing on how to manage your customer's membership and how book
rooms using their points.
7.8.2.1 Transfer of Awards

Most of these programs do not allow the guest to transfer their points, stays or
perks to another traveler, unless they are traveling together.
Many are affiliated with airline loyalty programs which allow members to
connect their frequent flyer program number to their hotel membership and
transfer points between them.
Some programs also allow the members to redeem points to a Visa, American
Express or other gift card.
7.8.2.2 Point Expiration Dates

Similar to airline programs, some hotel point-based programs have expiration
dates on the points accumulated by members. A new hotel stay may postpone
the expiration date into the future, enabling members to keep their points active
12–18 more months past their last stay. This encourages guests to book paid
rooms more frequently, to accumulate enough points for personal use such as
vacations.
Some programs prevent guests from accumulating too many points by expiring
them after a fixed 12 to 18 month period if not used.
7.8.2.3 Limitations in Awards

Some companies set limitations on the types of bookings that are eligible for
point rewards. For example, they might not offer awards for bookings made
through 3rd parties such as Expedia or if the stay is part of a group booking for
an event, such as a business meeting or conference. Some will limit the
awards based on the price paid, so that a 50% discount promotion may not be
eligible to earn points.

7.8.2.4 Membership Levels

For extremely loyal members, there are higher levels of membership (or
membership tiers) they can belong to. These higher tiers welcome guests with
a history of frequent stays. When members increase their stays or room nights
above a minimum threshold set by the program, they receive extra points per
stay and additional benefits such as room upgrades, free breakfast, etc. The
more frequent hotel guests stay, the more benefits and perks they enjoy.
7.8.2.5 Member Credit Cards

Many hotel companies have branded credit cards or charge cards. These
cards are issued in partnership between the hotel company and a bank or card
company such as American Express or Citibank. For every dollar charged to
the card for hotel stays or any other purchase, the member receives reward
points–usually 1 point for every dollar spent. Use of the card at the hotel will
also benefit the customer with extra points and additional benefits such as
upgrades.
Sample cards
Key Learning Point

Hotel frequent stay programs establish rules to manage member credits
earned. These controls limit the transfer of credits, rewards and perks to third
parties. They impose an expiration date on unused credits and prevent credits
from being earned on bookings with low value rates. On the other hand,
frequent hotel stay programs continue to look for ways to increase loyalty by
introducing new membership levels or tiers and though partnerships with credit
card companies and airline frequent flyer programs.
7.8.3 Booking Rewards Travel

When booking travel for your customers, it is important to know whether they
are members of a loyalty program. This will direct you to specific hotel brands
when booking accommodations. It is also important to ask customers who are
members if they want to use their point or stay credits as payment. If they do,
you will need to research restrictions on free night bookings for the stay. For
example, the hotel company may allow a maximum of 4 free nights or impose
no maximums.
7.8.3.1 Identifying the Member

When making a reservation online or in the GDS, there is a field for the
customer's membership number. It is important to make sure that the
membership number is inserted for each reservation. The customer can claim
points after the stay. By providing it in the reservation, it helps the hotel

recognize the customer on arrival and prepare any value-added benefits they
are entitled to.
7.8.3.2 Confirming Awards

When your customer has enough credits, it is possible for you to make the
reward room booking. Each company handles it differently, but they usually
have a method on the GDS or their website to indicate the payment with points
or to redeem free night awards. Sometimes you need to call the company's
reservation number to confirm these reservations.
Key Learning Point

A best practice for travel professionals is to offer hotel options that participate
in the travel customer's frequent stay program. The membership number
should be included in each hotel reservation so that the customer is recognized
at check-in and receives benefits of the program.
7.8.4 Programs Overview

Table 7.8.1 provides an overview of all hotel frequent stay programs by parent
company. It provides program names, types, levels and size in terms of
participating hotel properties. The Wyndham Rewards program has the largest
number of hotel participants today. Most support multiple membership levels or
tiers. There is a mix of membership types between point, stay and value based
programs. It is not required to memorize this table, but only to be able to
interpret key features of every program. It is important to understand which
programs travel customers are members of and to make recommendations to
join others based on an analysis of their travel patterns.
Parent Company Program name Program details and structure Properties Overview
Points based: Hotels: 3400
Points earned are based on
brand, hotel, number of nights Brands: 13
and guest membership level.
Room upgrades
online check-in
LeClub Accor
Redeem:
Accor http://www.accorhotels.com/ hotel stays
gb/leclub/program/loyalty-
program.shtml dining discounts
Membership Levels:
Classic
Silver
Gold
Platinum

Points earned: Hotels: 4200
10 for every dollar spent
Brands: 7
Redeem:
hotel stays
Best Western Rewards
Membership levels:
Best Western https://www.bestwestern.com/ Blue
International en_US/best-western-
rewards.html Gold
Platinum
Diamond
Diamond Select
Brands: 8
Redeem:
hotel stays
Club Carlson
Air travel
Carlson Hotels https://www.clubcarlson.com/
fgp/memberbenefits/home. Membership levels:
do?int_cid=footer:memberbenefits Red
Silver
Gold
Concierge
Brands: 10
Redeem:
hotel stays
Choice Privileges
Choice Hotels Membership levels:
https://www.choicehotels.com/ Basic
choice-privileges
Elite Gold
Elite Platinum
Elite Diamond
Value Added: Hotels: 130
Airline miles
Brands: 3
Room upgrades
in-room amenities
Presidents Club
Higher membership levels earn
Fairmont https://www.fairmont.com/fpc/ free nights
benefits/
Membership levels:
Club
Premier
Platinum

Points Based: Hotels: 540
Brands: 14
Redeem:
hotel stays
Air travel
Hilton Honors Club
Hilton Hotels Corp car rental
http://hiltonhonors3.hilton.com/
en/index.html Membership levels:
Member
Silver
Gold
Diamond
Brands: 13
Redeem:
hotel stays
Dining
Hyatt Gold Passport Room upgrades
Hyatt Hotels https://world.hyatt.com/content/ Air travel
gp/en/member-benefits.html
Membership levels:
Member
Discoverist
Explorist
Globalist
Brands:
IHG Rewards Club Redeem:
hotel stays
https://www.ihg.com/content/
IHG us/en/offers/q2accelerate2017? Air travel
Inter-continental promoCode=61349&offerId=
Hotels Group Q3053&cm_mmc=OFMAM-6C-US- Membership levels:
EN-Search-PaidMedia-Brand- Member
MBQ217&cmpid=DFA:877798: Silver
151513112:0&glat=DISP&
Gold
Diamond
Brands: 0
Independent Stash Hotel Awards Redeem:
Properties in US
https://www.stashrewards.com/ hotel stays
and Caribbean
Membership levels:
Member

Stay-based: Hotels: 60
1 free night for every 20 nights
or 7 stays Brands: 1
Redeem:
Kimpton Karma hotel stays
Kimpton https://www.kimptonhotels.com/ Membership levels:
karma-rewards/overview Tier 1
Tier 2
Tier 3
Inner Circle
Brands: 2
Redeem:
hotel stays
La Quinta Returns
La Quinta Air travel
https://www.lq.com/en/la-quinta-
returns/member-benefits.html Membership levels:
Silver
Gold
Elite
Value Added: Hotels: 24
Room upgrades
Brands: 1
late checkout
YouFirst spa/dining credits

Loews https://www.loewshotels.com/ Membership levels:
youfirst/benefits Basic
Blue
Gold
Platinum
10 for every dollar spent.
Brands: 30
Redeem:
Hotel stays Including Starwood
hotels and brand
Room upgrades
Marriott Rewards
Marriott Air travel
http://www.marriott.com/rewards/
rewards-program.mi Membership levels:
Basic
Silver
Gold
Platinum

Value added: Hotels: 40
Free Wi-Fi
Brands: 1
in-room amenities
Affiliated with Global
earn free nights Hotel Alliance (GHA)
which includes 32
Early check-in and late check- brands and 500 hotels
Omni Select Guest out around the world
Omni https://www.omnihotels.com/ Redeem:
loyalty/member-benefits hotel stays
Any GHA hotel
Membership levels:
Gold
Platinum
Black
Brands: 4
Redeem:
iPrefer hotel stays
Preferred Hotels
Group https://preferredhotels.com/ dining, spa
iprefer
Membership levels:
Insider
Elite
Stay-based: Hotels: 375
1 night for every 5 stays
Brands: 1
Free breakfast
Room upgrades
Leaders Club Free Wi-Fi
The Leading Hotels
of the World http://www.lhw.com/ Redeem:
leaders-club hotel stays
Air travel
Membership levels:
Leaders Club - $150/year
Unlimited - $1200/year
10 for every dollar spent Mini-
mum Brands: 15
1000 points per stay Can also redeem at over

15,000 homes and
Redeem: Condos
Wyndham Rewards hotel stays
Wyndham https://www.wyndhamrewards.com/
Worldwide air travel
trec/consumer/
home.action Membership levels:
Blue
Gold
Platinum
Diamond
Table 7.8.1—Major frequent hotel stay program names, levels and benefits

Key Learning Point

Most hotels and chains have a program which allows them to give their loyal
repeat guests extra benefits. While many of them are similar, they can have
significant details differences, especially when your customer reaches an elite
level.
Study Check 7.8
1. What is the primary purpose of loyalty programs?

(a) to attract new guests and markets
(b) to get repeat business from guests
(c) to partner with other industry suppliers
(d) to make guests happy
2. Which of the following value-added benefits might a Gold member expect?

Select all that apply
(a) Room upgrade
(b) Free dinner
(c) Extra points
(d) Club lounge access
3. A member can always redeem points for an 8-day family vacation.

TRUE or FALSE?
(a) True
(b) False
4. A Loyalty Program credit card will allow a member to accumulate points

faster. TRUE or FALSE?
(a) True
(b) False
5. A member can redeem points for a hotel stay at any time.

TRUE or FALSE?
(a) True
(b) False
6. Some hotel programs allow members to use points for air travel.
TRUE or FALSE?
(a) True
(b) False

Module Summary
There are various hotel products on the market and this Module explains their
special features. An understanding of the common needs of travelers and
major market segments is essential in order to provide the right advice on
which type of hotel will fit travelers' requirements (Unit 7.1). There are also
various types of hotel classifications and rating systems as well as user
generated hotel reviews found on hotel branded websites and other travel sites
(Unit 7.2) from no star to over 5 star hotels that suit every taste and budget.
As you grow in your career as a professional travel agent, you familiarity with
the language of the hotel industry increases. Many of the terms and acronyms
used in this Module are now part of your vocabulary. It is a good idea to study
these terms because some have a different meaning depending on if you are
speaking with another travel agent or a hotel staff member (Unit 7.3).
A wide array of options is available to your customer making it a daunting task
to actually select them. Several electronic travel trade resources like online
travel magazines and blogs can help facilitate your search for the hotel
accommodations appropriate to your customer's requirements. Your col-
leagues and customers themselves are also a valuable resource for you to
collect information and learn more about hotels that you may not have visited.
Use their information and experiences as examples when researching hotel
options and communicating with other customers (Unit 7.4).
All hotel stays vary in price. Your ability to quote room rates, additional costs,
and justify the reasons for each is an invaluable skill (Unit 7.5). Once your
information is gathered you can then start making reservations by following the
5 key steps (Unit 7.6). Carefully go over the terms and conditions that apply to
each booking to ensure a hassle-free and value-added stay for your customers
(Unit 7.7).
A hotel experience can make a trip a lasting pleasurable memory, or a
nightmare. Using and improving your hotel knowledge will establish your
reputation as a competent advisor who builds enduring relationships with
customers. Customer may travel extensively and be members of hotel guest
loyalty programs. It is an important part of your sales process to offer
customers hotels that match their hotel loyalty affiliations to ensure that they
continue to enjoy the benefits of membership, and to build their loyalty with you
as an agent (Unit 7.8).

Case Study: Mr. Newbie's Honeymoon

You have a new customer, Mr. Newbie, who has never traveled beyond
300 km from his home outside of London. He is getting married and would like
to plan an unforgettable honeymoon trip. He has a limited budget, but wants to
make this trip as special as possible. Mr. Newbie knows that this request is a
little vague, and is contacting you because he has no idea where to go and how
to plan this trip.
You are in a unique position to assist Mr. Newbie and potentially create a
valuable relationship with him and his future wife. You have the opportunity to
work with him early in his discovery of travel and assist him in exploring the
world potentially for the rest of his life. Perhaps, he is a world traveler that
hasn't yet realized he loves to travel…?
Your mission is to learn more about Mr. Newbie interests and help him create a
honeymoon trip he will remember fondly. In order to assist Mr. Newbie you will
need to gather from him some information. Based on this module, you learned
that there are common needs of most travels when planning a trip.
Case Study Questions

1. What are some of the common needs of most travelers?
2. What kind of questions would you ask Mr. Newbie to determine his needs
for this trip?
3. What more do you need to know to assist this customer in planning their
trip?
Case Study 637

Review Questions
Unit 7.1
1. Which is NOT a common need expressed by most travelers?
(a) Convenient location
(b) Wireless Internet connection
(c) Environmentally friendly amenities
(d) Good customer service
2. Which is TRUE about accommodations for business travelers?

(a) There is no budget limitation for business travel
(b) A long stay requires apartment-like accommodations
(c) The traveler is responsible for the room rental cost
(d) Employers insist on booking luxury hotel properties
3. Why do some travelers prefer to queue up at the front desk for checkout
instead of using express services?
(a) Express checkout technology is not available
(b) A copy of the hotel bill is only available at the front desk
(c) There is an additional charge for express checkouts
(d) They want to review specific billing items with the reception staff
4. Of the limited-time promotions described, which offers the best value for
price for a family vacation?
(a) Matching the promotional discount price of a competitor
(b) A 10% discount on the regular room rate for the first night stay
(c) Double the loyalty reward points for a regular room rate booking
(d) Three daily meals included in the room rate for a one week stay
Unit 7.2
1. Which hotel type would always be considered a full-service hotel?
(a) Budget
(b) Extended-stay
(c) Boutique
(d) Motel

2. An example of a luxury hotel chain would be (select all that apply):

(a) Holiday Inns
(b) Kimpton
(c) Four Seasons
(d) Novotel
3. Convention Centers offer larger meeting space than Conference Centers.

TRUE or FALSE?
(a) True
(b) False
4. Rating systems provide a reliable method for comparing hotels worldwide.

TRUE or FALSE?
(a) True
(b) False
5. Which type of property is considered an actual destination for tourists?

Select all that apply.
(a) Airport Hotel
(b) All-Suites Hotel
(c) Ice Hotel
(d) Motel
6. Which type of traveler will find a day use stay at airport hotel convenient?
(a) Business travelers
(b) Leisure travelers
(c) Both
(d) Neither
Unit 7.3
1. Which term is used for hotel restaurants?
(a) Coffee houses
(b) Food vendors
(c) Cafeterias
(d) Outlets
2. Which hotel staff arranges restaurant reservations and theatre tickets?

(a) Bellman
(b) Concierge
(c) Reservationist
(d) Valet

3. Which is an example of an accessible facility?

(a) A business center
(b) A ramp
(c) A shuttle service
(d) A health club
4. Which type of bed is 193 centimeters (76 inches) wide?

(a) Single
(b) Double
(c) Queen
(d) King
5. Which is TRUE?
(a) A superior room has a small kitchen
(b) A suite has separate sleeping and living room
(c) A deluxe room is located on the first floor
(d) A standard room offers a better view
6. Which breakfast meal plan is a light meal without hot foods such as eggs
and meat?
(a) Continental
(b) English
(c) European
(d) American
Unit 7.4
1. Which is the most significant advantage of Global Distribution System as a
resource for hotel information?
(a) It has information about hotels in every destination
(b) Hotel information includes ratings and reviews
(c) The ability to see which hotel rooms are available
(d) Photos of hotel property rooms and other facilities
2. Which hotel resource provides historical and customs information about a

hotel and its destination?
(a) World Travel Guide
(b) Trip Advisor
(c) Hotel websites

3. Which is TRUE about review resources?

(a) They are written by hotel property owners and managers
(b) They are found on travel magazine websites
(c) They are posted online if approved by the hotel property
(d) They are biased, highly influenced by personal experience
Unit 7.5
1. The highest and most often quoted rate is called a:
(a) Promotional rate
(b) Corporate rate
(c) Deluxe rate
(d) BAR or Rack rate
2. Many hotels now charge an early departure checkout fee. TRUE or

FALSE?
(a) True
(b) False
3. Making telephone calls from the room is easy, convenient, and

inexpensive. TRUE or FALSE?
(a) True
(b) False
4. What factors might affect a hotel's room rate? Select all that apply.
(a) The customer's origin country
(b) The customer's employer
(c) The room occupancy
(d) The Room location
(e) The type of credit card used
(f) The day of the week
Unit 7.6
1. Which is NOT part of the room reservation process?
(a) Review rate, guarantee and cancellation policies
(b) Match requirements with a rate category
(c) Collect booking commission
(d) Look for room availability
(e) Reserve the room

2. What is considered proof of a room reservation? Select all that apply.

(a) An email from a hotel quoting room rates
(b) A hotel confirmation number in the GDS
(c) A GDS reservation reference number
(d) An email room confirmation from a hotel
3. Which term represents the deposit or credit card number given to the hotel
to hold a room reservation until the hotel check-in deadline?
(a) Group booking
(b) Confirmation
(c) Guarantee
(d) No-show
Unit 7.7
1. When a customer does not check-in on their scheduled arrival date they
are considered:
(a) Cancelled
(b) Checking in the following day
(c) A no-show
2. Which is TRUE regarding hotel room rates? Select all that apply.
(a) Advise the room rate to customers in writing in the published currency
(b) Never quote the room rate in the customer's equivalent home currency
(c) Room rates are published in several currency options
(d) Hotels guarantee the room rates displayed and cannot change them
3. What is FALSE about Commissions? Select all that apply.

(a) They are a standard rate for all accommodations
(b) They are paid after the customer checks out
(c) They are paid one a reservation is made
(d) They are paid directly to agents.
Unit 7.8
1. When a customer asks for specific hotel groups, you should:
(a) Presume they have had a good experience with those groups
(b) Check if corporate rates are on offer
(c) Ask if they are a frequent guest member and get their member
numbers

2. Which is TRUE regarding hotel frequent guest offers? Select all that apply.
(a) Hotels never offer special rates for frequent guest members, just perks
(b) Frequent guest members usually get lower room rates than non-
members
(c) Sometimes frequent guests get upgrades so it is important to include
the member number in the reservation
3. What is FALSE about Frequent Guest Programs? Select all that apply.
(a) They all offer points
(b) They all offer perks
(c) The hotels use the programs as a way to collect information about their
guests
(d) The hotels use these programs as a way to keep guests coming back

Glossary
À la Carte: A menu in which each item is priced and charged separately.
Accessible facilities: Special equipment, room configurations, or amenities
that assist persons with disabilities.
Adjoining: Two or more bedrooms next to one another but not connected by a
common door.
Amenities: Small complimentary items given to guests in the room. In some
luxury and upscale hotels more substantial amenities are given to guests like a
gift of fresh fruit, wine, and bottled water to welcome them upon arrival.
American plan (AP): Includes three meals a day. American plans are rare, but
may be offered in certain resorts or packages. Also referred to as ‘Full-Board’.
All Inclusive: A hotel or resort price that includes all meals, snacks, and
beverages (alcoholic and non-alcoholic).
Apartments: An accommodation unit with separate living area and kitchen
facilities.
Back of the house: The area of the hotel not accessible to the public, such as
administration, accounting offices, and housekeeping store rooms.
Bed and breakfast (B&B): A price that includes breakfast and a room
accommodation.
Bellman: A staff member who usually supervises luggage handling.
Bell stand (also called Hall Porter's Desk): A portion of the lobby set aside
for receiving luggage before distributing it to the rooms.
Best Available rates (BAR): A dynamic rate strategy where rates are
determined by increases and decreases in demand.
Blog: A type of website that is usually arranged in chronological order from the
most recent ‘post’ (or entry) at the top of the main page to the older entries
towards the bottom. They are usually written by one person and based on a
particular topic.16
Business center: A facility or area of the hotel that provides business services
such as Internet access, photocopying, and meeting rooms for guests.
California King: Available in most western countries, it is longer yet slightly
narrower than the Standard King mattress.
Cancellation: to release a previously held reservation.
Cancellation number: A reference code (could include both letters and
numbers) that is proof of cancellation of a reservation. If the hotel charges the
guest for a no-show, this cancellation number will need to be given to have the
charge removed.
Cancellation policy: The rules and deadline for changing or canceling a
reservation without penalty and the penalty if the deadline has pasted.
Central reservations office (CRO): Call center for hotel companies.
Chain: A group of hotels managed and/or owned by one organization.
Checked luggage: suitcases and other guest belongings left with the bell or
doorman when a guest has arrived early and their room is not ready, or has
checked out and departing the hotel at a later time.
Check-in: Process of registration upon arrival at a hotel.

Commission: A percentage of the accommodation price that is paid to a travel

agent for selling the accommodation.
Concierge: A staff member who provides assistance for guests, such as help
in obtaining theatre tickets, restaurant reservations, rental cars, car hire
(private transfers) or arranging sightseeing. Also provided by the Hall Porter in
some countries.
Confirmation: Written acknowledgement of reservation often indicated by a
number or code.
Confirmation number: A code used to identify and document a booking. It
could be a combination of letters and numbers.
Connecting: Two or more sleeping rooms with a common door between them.
Consortium rate: Negotiated rated based on volume provided to specific
travel agencies.
Continental breakfast (CB): Includes coffee, tea, juices, toast, rolls and
pastries, and perhaps fruit.
Corporate negotiated rate: Rates typically offered to the business traveler
and provides a discount off the BAR or rack rate.
Corporate umbrella: A master brand that provides structure for and lends
credibility to other brands belonging to the same corporation.
Customer-centric: An organization that operates from its customers' point of
view.
Deluxe room: A regular-size sleeping room. This type of room would offer the
best location, the best view, and the highest level of comfort, furnishings,
amenities, and décor.
Deposit: Money sent to hold the reservation for a specific amount of time.
Doorman: A staff member posted at the main entrance of a hotel who usually
supervises luggage handling upon arrival and departure.
Double: Room with a double bed that can be used for either one or two people.
Double: A bed designed for two people.
Double/double: A room with two double beds. An excellent choice for two
friends or colleagues sharing a room.
Drop-off box: Guests place their room keys in a box located in the hotel lobby
upon leaving the hotel.
Early Check-in: checking in to a hotel prior to the official check in time.
Customers can request early check-in but the hotel is not required honor this
request.
Ecotourism: “Responsible travel to natural areas that conserves the environ-
ment and improves the well-being of local people.” (TIES, 1990)17
Electronic Miscellaneous Document (EMD): An IATA standard document
used to record airlines' sales and track usage of ancillary charges.
English breakfast: Full breakfast of cereal, bacon, sausages, eggs, toast,
juice, tea, and coffee.
European plan (EP): No meals included in the price.
F&B outlets: A term for eating and drinking establishments.
Glossary 645
Familiarization tours: Discounted or complimentary tours offered to travel

agents or wholesalers to introduce them to a destination or product (also
known as ‘Fam Trips’).
Frequent guest program: Similar to airline frequent flyer programs, guests
accumulate points for staying in a hotel and in some cases using hotel
services. These points are redeemed toward complimentary stays services
such as spa treatment or restaurant meals, upgrades, discounts, and some are
linked to specific airline programs. Also referred to as Loyalty Program.
Front desk: Reception area where guests check in and out. Also referred to as
Reception.
Front of the house: The area of the hotel accessible to the public.
Front office: Part of the hotel that includes the Reception Desk, Hall Porter or
Concierge or Guest Services Desk, Hotel Reservations, and Bell or Porter
Services.
Full-service hotels: hotels that offer a range of amenities and services
including upgraded toiletries, evening bed turn-down service, bathrobes, at
least 1 restaurant, a bar, newspaper delivery, shoe shining, wake-up calls,
room service, Wi-Fi and a shuttle to and from an airport or other nearby
attractions
Gift shop: sometimes called a “boutique”, a store located in the hotel that
usually sells convenience items.
Government rate: A specially negotiated rate (between a specific government
agency and the hotel) for qualified government employees.
Group bookings: A block of rooms set aside for groups of ten or more people
and negotiated at a special price (see also room block).
Guarantee: Hold status of reservation where the customer gives a cash
deposit or credit card number to reserve a room.
Guaranteed early check-in: paying to check-in to a hotel before the official
check-in time. Guest typically pays the room rate for the prior night to
guarantee access to the room the next morning or any time before official
check-in time.
Half-board: Includes two full meals per day; also known as MAP (Modified
American Plan).
Hall porter: A staff member who usually supervises luggage handling but may
also perform the services of a Concierge (see above).
Hall porter's desk or bell stand (USA): A portion of the lobby set aside for
receiving luggage and distributing it to the rooms. Typically, porters or bell staff
(USA) are stationed in this area.
Health club: This can include fitness rooms, swimming pool, sauna, and
Jacuzzi.
Hospitality suite: A sitting room used to entertain customers or guests.
Usually has a sleeping room connected by a common door and includes
bathroom facilities in both rooms. Also referred to as a One Bedroom suite.
Hotel TV: An interactive checkout process incorporated into the TV system in
guest rooms.
Housekeeping: The department that cleans, tidies, and maintains the sleeping
rooms and all public areas in the hotel.
Independent: A hotel which is privately owned and operated.

Industry rate: Rate for employees within the travel industry including those of
airlines, hotels, travel agencies, tour operators, and wholesale packagers.
In-room dining: Food and beverage served in the sleeping rooms. Also
referred to as Room Service.
In-room Safe: a small vault located in each guest room where a guest can
securely store valuable items.
Japanese Breakfast: includes miso soup, rice, cooked fish, and pickles.
Japanese style or Tatami beds: Bedding is stored out of sight during daytime
and rolled out on the floor for sleeping.
Junior suite: A large room with two areas, one for sleeping and the other
sitting. It usually includes a couch, coffee table, and side chairs.
King: Largest size double bed.
Late checkout: Departing a hotel room after the official checkout time. In many
hotels there is a fee associated with late checkout.
Layover: A short stop or break in a journey, usually due to scheduling
requirements.18
Loyalty Program: A program offered by a hotel company in order to benefit
and recognize their repeat or loyal guests.
Market segment: A grouping of potential customers by one or more
characteristics. The segment has similar needs and demands similar products
and/or services regarding the recognized qualities of these products, e.g.,
functionality, price, design, etc.39 Market segment may also be known as a
price tier. This distinguishes the type of customer market targeted by the hotel.
For example: business, leisure, association.19
Meal plans: Inclusive packages offered by hotels for meals plus sleeping
room.
Military rate: Rate offered to military personnel and either negotiated or
offered to promote business in areas close to military bases.
Mini-bar: Small refrigerator located in guest room containing sweets, savories,
and beverages which the guest can purchase.
Minimum room: These are usually the least favorable rooms–either because
of the size or location.
Modified American plan (MAP): Includes two full meals per day. Also referred
to as ‘Half-Board’.
Murphy: A bed that folds into the wall when not in use. These are especially
good when using the room to entertain or conduct business.
No-show: The status of a reservation when the guest does not arrive or cancel
their reservation by the check-in deadline.
Occupancy: From the agent's perspective, the rate charged per person. May
be charged as a single or double (e.g., single occupancy, double occupancy).
From the hotel's perspective, occupancy means the number of guests the hotel
is accommodating on any given night (e.g., 80% occupancy of a 400-room
hotel would be 320 rooms sold).
Overbooking: The practice of booking more than the hotel's capacity of rooms
by a hotel in anticipation of cancellations or no-shows.
Override: An additional commission paid by the supplier as a sales incentive
(see Commission).
Glossary 647
Package: An inclusive set of products or services designed to attract the

leisure traveler.
Peer review or ratings: Comments and feedback of past guests who have
stayed at a specific hotel. Also known as User Generated Hotel Reviews.
Penthouse suite: Located on the top floor of the hotel.
Perk: A perk is an extra benefit received by the guest. This could include an in-
room gift or amenity, such as a box of chocolates, or it could be an upgrade to
a better room.
Printed Folio: Guests full list of charges is printed and slipped under their
room door the night before they are scheduled to depart allowing them to
review the bill in advance of checking out.
Promotional/Package rate: Reduced rate generally offered when the hotel is
not full, to generate extra revenue.
Property: Another word for hotel or accommodation facility.
Queen bed: An extra-large double bed-smaller than the King.
Rack rate: Is a full, standard, non-discounted rate.
Rate categories: The types of rates offered at a hotel. Examples of rate
categories are Best Available, Negotiated Corporate, Promotions and Pack-
ages. This makes it easier for agents to find appropriate rates for their
customers. For example, search for all packages, or any promotions.
Resort: A hotel in a vacation destination which features activities on the hotel
grounds as well as a number of F&B outlets so that the guests do not need to
leave the hotel if they don't want to during their stay. Often located at a beach,
lake or ski destination.
Resort rate: Fluctuates based on advance payment, deposits, season, or
individual property agreements.
Room block: A group of rooms and or meeting space usually reserved through
travel agents or wholesalers. These are held with a deposit.
Room night: One overnight stay per room, e.g., two people in one room for
one night = one room nights.
Room service: Food and beverage served in the sleeping rooms (also known
as in-Room Dining).
Seasons: The high and low demand periods of a hotel impacting what rates
are offered.
Show room: Room used by the hotel sales staff to display to agents.
Shuttle service: Transport provided to guests for a fee to transport them to the
airport.
Single bed: A bed designed for one person (also known as a Twin Bed).
Single room: A room designed for one person. Some rooms will have only one
single bed while most will have two (= twin beds).
Smoking room: Rooms where tobacco can be smoked. Non-smoking rooms
prohibit tobacco use.
Standard room: Regular size sleeping rooms. The bedding might consist of
one or two double beds.
Suite: In most cases, consists of two or more rooms, typically a living room and
a sleeping room. A suite may have more than one bedroom or extra rooms
such as a kitchenette or conference room.

Superior room: Sleeping room that may include double, queen-size, or king-
size bed.
Smart card: Contains all the customer's information on a microchip. The
customer uses the card as a key for the electronic door lock and all billing is
automatically charged to the credit card.
Table d'hôte: A fixed price meal offered daily.
Triple sheeting: three layers of bed covers, including the bed sheet, blanket
and bedspread
Turndown: Is a housekeeping service provided in the evening at some hotels.
This service includes removing the bedspread, turning down the bed linens,
fluffing the pillows, tidying up the bathroom and replacing used towels, drawing
the curtains, and often supplying a chocolate or other sweet dessert item.
Twin room: A room designed for two people with two beds (may also indicate
a Twin Bed).
Twin bed: Another term for a single bed.
Upgrade: To move up to a higher standard of accommodation or room at little
or no cost.
Valet: An employee of the hotel who performs special services for guests.
Valet parking (USA): A service in which guests at a hotel can have their cars
parked by an employee for a fee that is charged on a nightly basis (also called
valet service).
Value added: Benefits or amenities included in the room or price to increase
the value of the room to the guest. These could include items such as free
Wi-Fi or breakfast included in the price.
Value added tax (VAT): A government-imposed tax added to the room rate.
This is common in many countries.
Walking: Sending the guest to another property when the hotel is fully
occupied and oversold.
Western style: Beds are off the floor and visible all the time.
Wholesale rate: Negotiated with wholesalers who book large-volume
business.
Wholesaler: A supplier who sells packages through travel agents.
Wireless Internet (WIFI): Networking technology that uses radio waves to
provide wireless high-speed Internet and network connections.
Glossary 649

Market Segmentation
World Tourism Organization and European Travel Commission. Handbook on
Tourism Market Segmentation: Maximizing Marketing Effectiveness. Madrid:
World Tourism Organization and European Travel Commission, 2007.
http://www.e-unwto.org/doi/abs/10.18111/9789284412075
EA78/E6F6/C0A8/0164/2FE4/070628_handbook_tourism_market_
segmentation_extract.pdf
Environmental Sustainability
Global Sustainable Tourism Criteria for Hotels and Tour Operators
Criteria: http://www.gstcouncil.org/en/gstc-criteria-hotels-tour-operators-
destinations/criteria-for-hotels-tour-operators-industry.html
The International Ecotourism Society -
http://www.ecotourism.org/book/ecotourism-definition
Leisure Travel
Graham, Anne, Papatheodorou, Andreas, Forsyth, Peter. Aviation and Tourism
- Implications for Leisure Travel. Routledge 1 edition, 2010.
ISBN-13: 9781409402329
Electronic Resources
Online Travel Training
http://www.onlinetraveltraining.com/
Then select your home country
Accessibility for Persons with Disabilities
Best Practice in Accessible Tourism Inclusion, Disability, Ageing Population
and Tourism
Inclusion, Disability, Ageing Population and Tourism. Channel View Publi-
cations 2012
ISBN: 9781845412531
Travelers With Disabilities
https://www.lonelyplanet.com/thorntree/forums/travellers-with-disabilities
Accessible Tourism Research
http://accessibletourismresearch.blogspot.ca/
European Network for Accessible Tourism
http://www.accessibletourism.org/?i=enat.en.about

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Study Check 7.1 1. b
1. b 2. b
2. d 3. c
3. b 4. f
4. a 5. e
5. b 6. a
6. b 7. b
7. b 8. d
8. b 9. c
9. c 10. d, a, e, c, b
10. e 11. e
11. f 12. c
12. g 13. b
13. a 14. a
14. b 15. f
15. d 16. d

1. c 1. c
2. a 2. c
3. c 3. c
4. e 4. a, b, c, d
5. a 5. a
6. b
Study Check 7.5
7. f
1. a - Wholesale rates are non-commissionable.
8. d
2. f
9. True - User-generated content is shared by past
3. c
guests shortly after departing a hotel and happens
more often than once per year. 4. d
10. False - Rating systems rate hotels between 1 and 5. b
5 stars.
6. g
11. c
7. a
12. b - Business travelers with moderate budgets find
Mid-Range hotels offer adequate services for their 8. e
needs. 9. h
13. c 10. False - Most room service prices include a sur-
charge for the convenience of having the food
delivered to the room.
11. False - It is common for hotels to charge higher
prices for rooms with a view.

12. True - Hotels will often allow late checkouts at no Review

charge if the hotel is not very busy and if it is
requested in advance. Unit 7.1
13. b 1. c
14. c 2. b
15. a 3. d
4. d
Study Check 7.6
1. b Unit 7.2
2. a, b, c and d 1. c
3. a 2. b
4. d 3. True - Convention Centers usually offer space for
large exhibitions and trade shows
5. e
4. False - Rating systems are useful for evaluating
6. g hotels in a country or region, but not worldwide
7. a 5. c
8. h 6. c - Business travelers find them convenient for
9. b short meetings. Leisure travelers often use them
to rest during “layovers” between flights
10. d
11. c Unit 7.3
12. f 1. d
2. b
Study Check 7.7
3. b
1. d
4. d
2. c
5. b
3. c
6. a
4. b
Unit 7.4
Study Check 7.8
1. c
1. b
2. a
2. a, c, d
3. d
3. b
4. a
Unit 7.5
5. b
1. d
6. a
2. a
3. False - it is easy and convenient but some hotels
charge high telephone surcharges
4. b, c, d, f
Answer Key 653

Unit 7.6
1. c
2. b, d
3. c
Unit 7.7
1. c
2. a, b, d
3. a, c, d
Unit 7.8
1. c
2. b, c
3. a, b

Case Study Answer Key

Unit 7.2
1. Option 1 is for Mr. James to stay in two different hotels during his stay. For
the business portion of the trip, a conference hotel may be most
appropriate because they cater to business travelers and can support their
needs for dining, concierge services. Once the business portion of the trip
is completed, Mr. James can move to one of the following family friendly
options:
• Extended stay hotel to accommodate a more relaxed family friendly
atmosphere. These hotels offer guests more spacious room accommo-
dations and fully kitchen facilities that are useful when traveling with
young children.
• All-Suites hotels will offer the family an upgraded travel experience
with more services that will make the vacation more of a special
occasion. This is a suitable option if the customer can afford it. This
option may be more expensive for the room accommodation but will
offer the family the option to stay in one room that is comfortable for a
family of 4.
• Destination Resort is also another option for this family portion of the
trip. There are many theme hotels in the Orlando area. This will offer
an enhanced experience as many of these hotels offer specific
services for every family member.
2. Option 2–Mr. James can check into one of the family friendly options listed
above for the entire stay. His family will join him after the third night.
Unit 7.4
1. To learn more about India, Peter should consult colleagues who have
traveled to India. If they have, Peter can ask for advice on which five cities
his customers should see on their very first visit to India. He should ask his
colleagues to list important attractions and activities unique to India. Then
Peter should expand on the knowledge he receives from colleagues by
researching information on India in travel industry publications and
websites. He can consult:
• the GDS–for hotel information
• India's National tourist office website for destination specific infor-
mation and points of interest
• publications like the World Travel guide–for information on local
customs
• blogs and travel sites like TripAdvisor, Smart Travel and Conde Nast
Traveler for recommendations and reviews from experienced travelers
to India
• Hotel brand websites to view hotel options for the locations this couple
will visit
Case Study Answer Key 655

Unit 7.5
Question 1.
You will start by securing travel dates, or a general time of year that the
Mrs. Jordan would like to travel.
You will need to know how much Mrs. Jordan is willing to spend for the hotel
portion of this trip.
You will then look at rates offered at the best hotels in each destination by rate
type, and if other discounted rates might apply to your customer based on
company affiliation, consortium, package and promotional rates available.
Look at room types and compare what is available based on Mrs. Jordan's
need to make this a memorable trip and quote rates based on the best hotel
and room rates for the cost.
Be sure select hotels classified as the best in the destination and in close
proximity to points of interest.
Offer Mrs. Jordan at least two hotel options per city (but not more than 5 so that
it's not too confusing) of the best accommodations for her dates of travel.
Include in the recommendation details related to:
• description of the hotel and location
• room type
• rate
• meals included in the rate
• other rates inclusions like tours, cultural events, etc.
• deposit and cancelation policies
Question 2.
Since Mrs. Jordan has requested room rates for London, Paris and Rome,
rates will be quoted in the following currencies:
London–British Pounds (GBP)
Paris and Rome–Euro (EUR)
Quote the hotel's local rate/currency and give an estimated cost in the
customer's currency–Mrs. Jordan is in Hawaii so this is U.S. Dollars
(USD)–based on today's exchange rate. Explain to her that the USD
conversion price is an estimate and may vary greatly based on the conversion
rate at the time she travels.

Unit 7.8
1. The common needs of most travelers are location, price and value, room
quality, room type options, attentive service, convenient check-in and
checkout, hotel facilities and peer reviews. Since he is not sure where he
wants to go, you need to focus on the types of locations they enjoy and the
types of activities they like to participate in.
2. In referring to the list or common needs of most travelers, the following
questions are good ones to ask Mr. Newbie to learn about his specific
needs:
• Location–When you think about travel, do you think you enjoy learning
about historical sites or are would you rather spend your time relaxing?
• Price and Value–Would you like to make this a special trip by staying in
a very upscale, fancy place or would you prefer more casual
accommodations?
• Room Type options–Would you be interested in a suite or regular
room?
• Hotel facilities–Would you prefer a hotel that offers many service like
multiple food and beverage options, spa, fitness center, etc. or would
you prefer a hotel that offers less of these services?
• Peer reviews–Is there a hotel or destination that you are curious about
based on the recommendation of a friend or other source, like a travel
blog, television show, news article?
3. You will need to learn more about Mr. Newbie's desires and needs for this
trip. You should ask the following questions of him to secure the
information you need to make travel recommendations to him:
• What is your actual budget for this trip?
• How far are you willing to travel?
• How many days in duration will the trip include?
• When would you like to travel?
• Do you enjoy adventure activities; food and wine; arts and culture?
• What do you enjoying doing as a couple?
• What would make this trip unforgettable?
• What must be included in this trip to make it unforgettable?

References
1
http://www.hospitalitynet.org/news/4044780.html
2
http://www.hospitalitynet.org/news/4010409.html
3
http://www.businessdictionary.com/definition/conference-center.html
4
http://dictionary.sensagent.com/destination+hotel/en-en/#cite_ref-0
5
http://ww2.aaa.com/aaa/common/Tourbook/diamonds/whatisthis.html
6
http://www.greenkeyglobal.com/
7
http://www.tourismgrading.co.za/sat/content/en/tourism-grading/
tourism-grading-home
8
http://uk.horesta.dk/en/MemberBenefits/Classification
9
http://www.hotelstars.eu/en/
10
http://www.sagetraveling.com/Rating-System-Explanation/
11
http://www.onecaribbean.org/content/files/hotelcalssification(1).pdf
12
http://www.accessibletech.org/
13
http://www.nytimes.com/2011/08/09/business/hotels-are-giving-
their-boutiques-an-upscale-reimagining.html
14
http://interiordec.about.com/od/buyingabed/a/a_bedsizes_3.htm
15
http://www.businessdictionary.com/definition/American-breakfast.html
16
http://www.problogger.net/archives/2005/02/05/what-is-a-blog/
17
http://www.ecotourism.org/book/ecotourism-definition
18
http://www.layoverguide.com/
19
http://www.marketsegmentation.co.uk/segmentation_tmsc.htm

Module 8:
Water Transport: Ferries and Cruises
Module Prerequisites • An understanding of the role of the travel agent in the travel and tourism
environment.
Module, you should have: • An understanding of the business activities that generate income for the
travel agent.
• Knowledge of the basics of planning itineraries in a logical and geographi-
cal sequence.
• Knowledge of the modes of transport used in different regions of the world.
• Learn a brief introductory history of water transportation (Unit 8.1).

• Understand the factors that caused the expansion of the cruise industry
(Unit 8.2).
• Understand the difference between ferries and cruises (Unit 8.3).
Module Learning • Identify cruises, their associations and classifications (Unit 8.4).
Objectives
• Understand the cruise product and its benefits (Unit 8.5).
you will be able to: • Identify the parameters of cruising destinations (Unit 8.6).
• Understand the factors that affect the sale of a cruise (Unit 8.7).
Module Introduction
This module will explore the role of water transportation in the worldwide travel
industry and become familiar with the various types of ships used. In addition,
you will learn about making reservations for clients and how to determine
accommodation costs and facilities. You will also learn about travel documen-
tation, accounting and administration procedures and how to explain the most
important parts of the “Conditions of Carriage”.

662 Module 8: Water Transport: Ferries and Cruises

8.1 History and Types of Maritime Services
• Understand the important role that water plays in worldwide transportation

(Section 8.1.1).
• Become familiar with maritime history (Sections 8.1.2 and 8.1.3).
• Distinguish between different types of ferries (Section 8.1.4) and cruise
Unit Learning ships (Section 8.1.5).
Objectives
In this unit you will learn about ships and the effect they have had on worldwide
transportation. You will be introduced to the different types of ships available
today and how they are important to the movement of people, goods and
services and play an important role in recreation and leisure activities.
8.1.1 Water: Linking a World of Transport

Consider that 71% of the earth's surface is covered by water. Water continues
to be the vital link between people and the different regions of the world. Today,
more than 40,000 cargo ships transport over 90% of world trade. Many of these
ships carry people as well as cargo. As you can see from the Table 8.1.1,
oceans cover the largest percentage of the earth's water areas. Lakes, bays,
seas, canals and other water masses are the remaining 7%.
Body of Water Percentage

Pacific Ocean 46%
Atlantic Ocean 24%
Indian Ocean 20%
Arctic Ocean 3%
Other waters 7%
Table 8.1.1—Distribution of the earth's water area
8.1.2 History of Water Transportation

Since the beginning of time, boats have been used by man as a way to cross
water. At first they used flat rafts and crossed rivers using long poles when the
water depth made it possible. With time, small boats and sailing vessels were
built to sail across greater distances. A need to carry goods and supplies to
distant and newly discovered lands helped the cargo trade grow. The cargo
shipping industry grew quickly, both technologically and in carrying capacity.
Water has played, and will continue to play, a very important role in the
economic development of worldwide passenger and cargo travel. As tech-
nology has advanced, so have the ships. Ships continue to grow in size, speed,
efficiency and comfort. Shipping companies continue to improve their products
and services to attract more passengers and make more profit. As a result, two
different types of water transportation exist to meet passenger needs, in the
form of ferries and cruise liners.
To better understand the importance of each of these water transport
categories, we will look at ferries first as they have a much longer history.
Nearly every country today can trace the history of ferry services and the
important role they have in the development of transportation of passengers
and goods. The following descriptions indicate some of the better known and
important ferry services in the world today.
Unit 8.1: History and Types of Maritime Services 663

Sydney, Australia has a network of ferries to the north and south shore
communities. These services can compete with the ground transportation,
such as cars and buses, in both speed and comfort.
Hong Kong's famous Star Ferry is still operating even though an underground
tunnel connects Hong Kong Island with Kowloon. The ferry service to Macao
has been improved in both speed and comfort with the introduction of
hydrofoils.
Figure 8.1.1—Hydrofoil from Hong Kong to Macao v.v.
Greece's major port, Piraeus, is one of the world's busiest. Ferry services make
up most of its shipping activity each day as they link the mainland with the
islands and other Mediterranean countries. By improving both the speed and
comfort of these ferry services the operators have discouraged other transpor-
tation services.
Figure 8.1.2—Port of Piraeus

The English Channel still has a regular ferry service even though people can
travel by car via the “Channel Tunnel” between France and England.
Ferries serve to provide point-to-point transportation. Pick any country and you
will see how ferries have contributed and developed the economy of the area
concerned.
Apply Your Learning

Spend some time to review the ferry services in your region or in another
region. Look at their history and development. See how other methods of
transportation have forced these ferry services to mod-ernised to continue to
attract passengers.
8.1.3 Origins of Cruising

The development of the cruise industry is more recent. In 1835 Arthur
Anderson first proposed a cruise from Scotland to destinations including
Iceland and the Faroe Islands. In an advertisement, Anderson described the
joys of cruising under the Mediterranean sun during winter. Two years later,
Anderson and a partner named Brodie Wilcox, founded the famous Peninsular
Steam Navigation Company, which later became P & O. Anderson was the first
to introduce travel at sea with recreation or pleasure.
Figure 8.1.3—Arthur Anderson and Brodie Wilcox (left to right)
Cruising for pleasure quickly became popular in the early 19th century. Great
writers including Charles Dickens and William Makepeace Thackeray took
pleasure cruises and wrote about their experiences. These writings helped
make the lifestyle of cruising more popular. Travel and its sense of adventure
became an accepted form of recreation, not just a way to get from one
destination to another. By the 1920s, sea travel, with all of its comforts had
become popular with the wealthy people of the western world. The message
understood by travelers is that cruising offered pampering in grand style. The
cruise industry built ships to accommodate and transport wealthy passengers
in style while their accompanying butlers, secretaries, nannies, dressers and
valets had ordinary accommodations on board.
The cruise industry in the United States became popular as a result of
“Prohibition” in the 1930s. At the time, it was illegal to drink alcohol in the
United States. But passengers could freely consume spirits just a few miles
offshore. This situation created the so-called weekend “Booze Cruises” out of
New York. People would take a weekend cruise out of New York to consume
alcohol. The money spent by passengers on these cruises for the purposes of

consuming alcohol created an important profit for the cruise industry, a fact that
remains true today.
During the 1930s and 1940s many countries including the United Kingdom,
The Netherlands, Norway, France and the United States competed to build the
most luxurious, glamorous and comfortable passenger ships in the world. Size,
speed and decor became not just a matter of design and function, but also a
matter of national pride. This was the era of glamour ships, and during this time
many great luxury liners were designed and built. Cunard Line's Caronia was
one of these. The Caronia was one of the first to offer private bathrooms in
every cabin. Her hull was painted with four different shades of the color green.
Her smokestack was the largest of her time. She was called the “Green
Goddess” or the “Millionaires ship”.
But the cruising industry faced some difficulties when, in 1958, the first
commercial jet aircraft made its historic transatlantic flight. This completely
changed both the consumer's demand and the economics of the world travel
industry.
Until the middle 1960s it was less expensive to cross the Atlantic Ocean in a
passenger ship. But with the introduction of “Jumbo Jets” in the early 1970s, it
soon became more economical to travel by airplane. In 1962 more than
1 million passengers crossed the Atlantic by ship. By 1970 less than 250,000
people made the voyage by ship. Not surprisingly, reduced consumer demand
resulted in a decline in revenues for the passenger shipping industry and a
reduction in the number of luxury liners. Many of the world's great ships,
including Cunard company's “Queen Mary” and her sister ship “Queen
Elizabeth”, made their final voyages in 1967 and 1968 respectively. At the time,
the Queen Elizabeth, at 83,673 gross registered tons, was the largest ocean
liner ever built. Her size was unequalled until 1996, when a larger “cruise” ship
was finally constructed.
Today, the cruise ship is becoming an important vacation resort and will offer
important revenues for travel agencies as cruising becomes more and more
popular.
8.1.4 Types of Ferries

There are many different types of ferries in the world. Here you will learn about
the most common types of ferries available. There are many types of services
offered by individual companies to meet local needs and conditions. Most ferry
companies sell their services directly to consumers.
Passenger-only Ferry Services

These services provide water transport between two or more points and are
available to passengers only. Ferry rates depend on the distance travelled and
the demand at the time of day. Travel during the busier times may be more
expensive. Often, ferry companies will offer frequent-traveler passes for people
who use the service regularly or group rates. Passenger ferry services often
use smaller and faster boats. They offer frequent service with many daily
departure and arrival times. Clients expect on-time, safe, comfortable and
convenient travel from this type of company.
Passenger/Vehicle Ferry Services

These services provide water transport between two or more points for
passengers and their vehicles. These vehicles can be cars, bicycles, lorries or
trucks, motorcycles or coaches and buses. Rates vary widely but are usually
calculated based on the type, weight and number of vehicles transported.

Some of these ferry services charge a fixed inclusive price. Others charge per
automobile driver and passenger.
Passenger/Train Ferry Services

These ferry services provide water transport between two or more points for
train wagons and a limited number of foot passengers. Often, the ferries have
permanent on-board rail tracks on which the train carriages and wagons sit
during transit. This helps the trains to get on and off the ferry more quickly.
Train ferries can be more than 120 metres (400 ft) in length. This type of ferry
may be found in Denmark and other areas of Scandinavia.
Cargo/Passenger Ferry Services

Offered worldwide, these services are for the transporting of cargo. Most cargo
ships offer passage to a limited number of guests, sometimes in very
comfortable surroundings. Rates vary widely according to the type of cargo
service, distance travelled, and demand for the service.
Cruise Ferries
There are large luxury ferries that also take thousands of passengers on mini-
cruises. Such cruise ferries operate in Scandinavia and between the UK and
Spain.
Key Learning Point

A ferry is a vessel used to carry passengers, goods and vehicles across
relatively short stretches of water. Most ferries have very powerful engines. On
very short crossings, underwater cables may be used to propel the ferry. Car
ferries normally operate in areas where it takes a shorter time and distance to
cross by water than by driving overland.
8.1.5 Types of Cruise Ships

Super Mega (Giant) Ships
These ships weigh more than 100,000 tons and carry over 2,600 passengers.
Mega Ships
These ships weigh between 70,000 and 100,000 tons and carry between 1600
and 2600 passengers.
Large Ships
These ships weigh between 20,000 and 70,000 tons and carry between 500 to
1600 passengers.
Small Ships
These ships weigh less than 20,000 and carry up to 500 passengers.
Windjammer Ships
These are sailing or assisted sailing ships carrying up to 400 passengers who
are invited to actively participate in the operation of the vessel.

Barge, River and Speciality Cruises

Smaller boats usually operating on inland waterways with limited passenger
capacity.
Key Learning Point

Ships are often regarded as “a resort at sea”. Most cruises offer 2 to 100-day
itineraries or more. Unlike ferries, cruise liners are “the destination” rather than
a way of reaching a destination. They charge all-inclusive prices and offer high
commissions to the agency. Retail travel agents make the majority of cruise
reservations. Many of these retail travel agents are cruise specialists who sell
only cruises. Some ships have over 70% repeat bookings.
Apply Your Learning

The best way to find out about ferry services operating to or from a city is to go
to that city's web site on the internet. Look under the heading of “ferries”. This
leads into ferry schedules and prices and should offer the basic information you
need to give to your customer. Now consider the benefit of selling cruises to
your clients and estimate the possible size of your market when compared to
ferries. The revenue potential from ferries is small compared to cruises.
Study Check 8.1.5
1. What percentage of the earth's surface is covered with water?

(a) 40%
(b) 71%
(c) 80%
(d) 18%
2. The Pacific Ocean covers the largest percentage of the earth's water area.
TRUE or FALSE?
(a) True
(b) False
3. On sailing ships, passengers on board can help operate the vessel. TRUE
or FALSE?
(a) True
(b) False
4. Ferries usually operate in areas where it takes a shorter time and less
distance to cross by water than driving overland. TRUE or FALSE?
(a) True
(b) False

5. A ferry is sometimes the most cost-effective means to cross from one point
to another point when compared to driving or flying. TRUE or FALSE?
(a) True
(b) False
8.1.6 Unit Summary

Water transport plays a huger role in worldwide transportation. This Unit
discussed
• the ways in which society has met these challenges by utilising ferry
transport (Section 8.1.2);
• a brief maritime history and its importance in the development of cities and
countries (Section 8.1.2);
• the birth of the cruise industry and its growth into the major sector of
agency sales in today's marketplace (Section 8.1.3);
• four major types of ferry services (Section 8.1.4); and
• schedules, prices and six types of cruise ships (Section 8.1.5).

8.2 Cruising: A Growth Industry
• Understand the factors that influenced investment in new ships

(Section 8.2.0).
• Identify the growth in competition to meet passenger demands
(Section 8.2.1).
Unit Learning • Understand the economics of mega ships (Section 8.2.2).
Objectives • Understand the need for consolidation of the cruise lines (Section 8.2.3).
8.2.0 Unit Overview
People lost interest in traveling by ship in the 1960s and 1970s, and most of the
large ships built in the 1920s and 1930s were stored away or sold for other
uses. Later, new cruise lines were introduced, such as Carnival Cruise Line.
The new companies attracted new interest in the cruising industry that was
abandoned by the grand ocean liners of the 1920s and 1930s when they
stopped sailing. One of these large ships, named “The France”, was one of the
few ships to survive and Norwegian Cruise Line renamed it the “Norway”.
Carnival Cruise Line took over the “Empress of Canada” and her sister ship the
“Empress of Britain”, which were renamed as the Mardi Gras and Carnival. It
was at this time that gambling casinos were introduced as an entertainment
aboard the ships. This gambling became an excellent source of new revenue
for the cruise lines, making cruise ships more profitable. Until this time, alcohol
was the only source of revenue on the ship in addition to the actual cost of the
cruise ticket. With the addition of gambling, on-board shopping and shore
excursion activities, almost 25% of the total profit made from each passenger
came from these on-board activities. In the 1980s, the cruise industry's luck
changed and it experienced a growth in popularity.
8.2.1 Expansion of the Cruise Industry

The new interest in cruising caused many ships to be renovated. Cruise
companies spent money to modernise many ships. Companies such as
Carnival Cruise Line ordered new ships, an investment that surprised many
competitor cruise lines. They ordered three ships in the same design: Jubilee,
Holiday and Celebration. Cruise companies, such as Sitmar, tried to compete
but they could not afford the investments. So other expanding cruise lines,
such as Holland America Line, bought those struggling cruise companies.
8.2.2 Introduction of the Mega Ships

Until the 1990s, most of the new ships weighed from 30,000 to 40,000 tons.
Cruises lines studied the economies of scale and realised that larger ships
would be less expensive to operate per passenger on board. Until then the
average number of passengers carried was under 1,500. With the introduction
of the first mega ship, weighing over 70,000 tons, the passenger capacity was
increased to 2,600. Carnival was the leader in the industry by launching six
mega ships in the 1990s: Ecstasy, Fantasy, Fascination, Imagination, Inspi-
ration and Sensation. It has now been overtaken by Royal Caribbean with the
launch in 2016 of Harmony of the Seas, the new floating mega-resort. At 1,188
feet long, it is roughly the same length as five Boeing 747's placed end to end.

Figure 8.2.1—Harmony of the Seas
However, the growth of the cruise industry and the increasing size of new ships
creates concern for the environment. Larger and fuller ships are challenged
with greater waste collection and disposal. Burning over 66,000 gallons a day
of diesel fuel, they consume more energy and give off higher carbon emissions
which pollute the waters they travel. International regulations are being
introduced to force cruise ships to filter “grey” water draining from sinks, baths
and washers before it is discharged into the ocean. Garbage production and
disposal can also be minimized by more efficient on board recycling tech-
niques. Scrubbers in the ship's smoke stacks reduce toxic and carbon
emissions released in the air.
8.2.3 Consolidation of the Cruise Lines

The quick growth of some cruise companies, such as Carnival, resulted in the
consolidation of the cruise lines. Consolidation continues today where different
cruise lines are coming under the same operation. Carnival Cruise Line added
Holland America, Cunard, Windstar, Seabourne, Costa and most recently
Princess Cruise Line into its family. The new parent company allowed each line
to operate independently, keeping the identity that each line had created over
the years, but benefiting from all the advantages of one centralized investment
and organization. Royal Caribbean joined with Celebrity. The Star Line has
joined NCL (Norwegian Cruise Line). As with any growing market, there are
new companies such as Oceania Cruises.
Key Learning Point

The recovery of the cruise industry could be partly credited to the introduction
of casinos as on-board entertainment. Like alcohol and prohibition in the 1930s
the ability to gamble increased profitability and attracted a larger number of
passengers. As cruise companies became more profitable, new investment
money was available to build bigger and better ships, turning a dying industry
into a growth market.
Unit 8.2: Cruising: A Growth Industry 671

Study Check 8.2.3
1. The introduction of gambling on board ships made cruising more popular.

TRUE or FALSE?
(a) True
(b) False
2. Which of the following is not an on board activity that brings extra

revenues?
(a) A reading library
(b) Boutiques
(c) Organized port visits
(d) Gambling
3. Carnival Cruise Line was the first to order 3 modern cruise ships of the
same design, at the same time. TRUE or FALSE?
(a) True
(b) False
4. Which of the following is not a cruise line?

(a) Royal Viking
(b) Sitmar
(c) NCL
(d) Premier
(e) Mardi Gras
5. In the earlier 1990s, what was the usual tonnage of newly built ships?
(a) 10,000 tons
(b) 60,000 tons
(c) 40,000 tons
(d) 100,000 tons

Apply Your Learning

Find and read a cruise publication, such as the Columbus Cruise and Port
Review. Pay special attention to news concerning
• the launching of new ships
• new departure ports
• changes in cruise itineraries
8.2.4 Unit Summary

The cruise industry has recovered partly as a result of introducing on-board
entertainment that provided new income to invest in building bigger and better
ships–thus turning the industry into a growth market.
Unit 8.2: Cruising: A Growth Industry 673

8.3 Cruises
• Understand the difference between ferry vessels and cruise ships

(Section 8.3.0).
• Understand the difference between transportation and recreation
(Section 8.3.1).
Unit Learning
By completing this Unit, In very early time, the ferry was a common way to transport goods and people.
you will be able to: Today the size and capabilities of ferry vessels have changed, but the function
of ferries is the same: point-to-point transportation. Ferry services are still
useful and continue to attract passengers. More people travel today and many
people want quieter destinations. It is common for ferries to be included in the
journey to their final vacation destination. Corsica in the Mediterranean is an
example of a destination where ferry services are still in demand.
Cruises offer a new vacation option. Cruises are resorts themselves and until
recently were one of the few all-inclusive vacations that offer travel, accommo-
dations, food and entertainment. Passengers now recognize the value offered
by the cruise lines, giving them an opportunity to visit several different places
without the need to pack and unpack, at an affordable price that cannot be
matched by air plus land vacation alternatives.
Although most cruise products charge one all-inclusive price, EasyCruise is an
operator that offers “bus service” type cruises, charging a basic price for a
cabin and extra for food, bedding, drinks, service and cleaning.
8.3.1 Transportation and Recreation

Ferries attract their customers by providing relatively fast, efficient and
economic ways to travel between two or more points. They transport a large
variety of goods, cars and merchandise at a lower cost. The ferries themselves
are mostly powered by the diesel engine, or diesel electric motors. But faster
“seacats” or “hydrofoils” use a jet engine. The design of the craft varies
according to the water body that they operate in and the designs are adapted to
facilitate speedy loading and unloading of vehicles and passengers. Smaller
ferries offer little revenue to the travel agency in commissions. The costs are
low and even a generous commission percentage may not fairly compensate
the time spent to find the ferry information. Even the larger ferry journeys are
seldom worth the work involved unless it is part of a vacation package and you
are able to charge your customer a service fee to sell a complete product.
Cruise vessels are designed as a resort at sea. The ability to visit different ports
and countries is an added attraction to help sell the cruise package. All cruise
fares include the actual water transportation, the cabin, nearly all the food and
all the entertainment as part of the package. On some ships there are specialty
restaurants, which offer more choice in dining options, sometimes for an extra
price. The extras on board usually include shop purchases, shore excursions
and personal items and drinks from the bar.
Tipping is necessary at the end of the cruise since very few ships actually use
cash for transactions during the voyage. The average suggestion for a 7-day
cruise is between US $10–$12 per person, per day. The US dollar is usually
the common currency used on board cruise ships.
The amenities on a cruise ship will include casinos, swimming pools, spas, and
fitness centers. On board most cruise ships have libraries, cinemas, internet
cafés, bars and deck sports including table tennis, shuffleboard, golf practice

nets and sometimes handball. Ships have climbing walls and an ice rink! The
cruise ship offers a complete destination in itself and passengers may not need
to go ashore to supplement the entertainment that is available on board.
The “all-inclusive” nature of the cruise product represents a worthwhile sale for
any travel agent. Commissions are earned on almost the whole package and
the percentage earned can be very attractive, either through an association
with a consortium or just through the volume of business the travel agent brings
to a specific cruise supplier.
Your time spent training, reading and familiarizing yourself with cruise products
will yield attractive revenues for those selling and marketing cruises.
Figure 8.3.1—Disney Cruise Ship
Key Learning Point

For agencies, selling ferry services is more work and brings less revenue than
selling cruises. A ferry is used when necessary for transportation across water.
But a cruise offers a desirable vacation and a high probability of repeat
business for your agency from satisfied clients.
Unit 8.3: Cruises 675

Study Check 8.3.1
1. Ferries bring low revenues or commissions to the retail travel agency.

TRUE or FALSE?
(a) True
(b) False
2. Almost all of the cruise price is commissionable to the agency. TRUE or

FALSE?
(a) True
(b) False
3. Ferries form only part of a journey to most vacation destinations. TRUE or

FALSE?
(a) True
(b) False
Apply Your Learning

You have learned that although ferries are sometimes a necessary part of a
travel package, their sales do not offer interesting revenues for the retail travel
agent. Contact a ferry service using the internet and ask for their charges.
Estimate how many clients would book this service and what profit the agent
could expect. Compare this revenue to the estimated revenue you could earn
from selling cruise vacation products that offer more profit and repeat business.
8.3.2 Unit Summary

In this unit you have looked at both ferries and cruises as a source of business
and revenue for your agency. For agencies, selling ferry services is more work
and generally brings in less revenue than selling cruises. The trend in selling
cruise products is growing for agencies that want to increase their profits.

8.4 Structure of the Cruise Industry
• Understand cruise line associations (Section 8.4.1).

• Identify main cruise lines and their ships (Section 8.4.2).
• Differentiate between cruise classifications (Section 8.4.3).
Unit Learning
By completing this Unit, In this unit you will learn about the various cruise line associations and the role
you will be able to: they play in the promotion and expansion of the cruise industry. You will also
be introduced to the main cruise lines. A description of their market and their
ships is included. You will also learn of the different cruise classifications and
the choice of itineraries available to choose from.
8.4.1 Cruise Line Association

CLIA (Cruise Line International Association) is the global cruise line associ-
ation and represents more than 25 major cruise lines. It was formed to promote
the benefits of cruising (see www.cruising.org). CLIA provides travel agent
training in cruise products. It publishes information describing the benefits of
cruising and the operation of ships in general. CLIA supplies travel agencies
with information and leaflets explaining the joys and satisfaction of cruising.
8.4.2 Main Cruise Lines and their Ships

The “big eight” cruise lines are:
• Carnival Cruise Line;
• Holland America Line;
• Princess Cruises;
• Costa Cruises;
• Celebrity Cruises;
• Royal Caribbean Line;
• Norwegian Cruise Line;
• Star Cruises.
Although these are the “big eight”, there are only three parent companies:
• Carnival operates Carnival, Princess, Holland America, Costa, Cunard and
Seabourn;
• Royal Caribbean operates Royal Caribbean and Celebrity; and
• Star operates Norwegian Cruise Line and Star.
Unit 8.4: Structure of the Cruise Industry 677

8.4.3 Cruise Classification

Royal Caribbean Line is strong in the Super Mega Ship category. These ships
weigh over 100,000 tons. With the exception of Cunard Line's “Queen Mary 2”,
they have the biggest ships afloat at the present time. Carnival Cruise Line is
close behind with several ships already sailing or in construction, weighing over
110,000 tons. All the other cruise lines have concentrated their new ships in the
Mega Class, weighing between 70,000 and 100,000 tons.
Carnival Cruise Line, marketed as “The Fun Ships”, targets the younger
generation. Its ships offer a program of activities to suit a younger generation.
These attract the first time cruiser in the twenty to forty year range.
Costa Cruise Line is Italian and specializes in European cruises and clientele.
This line provides cruises to all areas of the world with a fleet of modern
vessels. Food and entertainment on board its ships suit European tastes and
expectations.
The Holland America Cruise Line focuses more on comfort. Its décor is more
conservative and its clients are loyal and usually more mature, between 50 and
70 years.
Princess Cruise Line offers modern, bright ships. The operator is a pioneer in
many fields. It offers flexible dining service where passengers can “dine when
and with whom they want” on many of its ships. They offer an outdoor cinema
to watch “movies under the stars”. This cruise line's products are moderately
priced and its brand is strong. Princess Cruises are suitable to most age
groups.
Royal Caribbean Line has the largest ships and a great selection of activities
on board. They accommodate a large number of passengers, some boats offer
the smallest cabins in the market. Royal Caribbean Cruises fit all age groups,
especially those looking for activity on board.
Celebrity Cruise Line is known for its cuisine. It has more crew members than
most cruise lines and a very loyal clientele.
Norwegian Cruise Line offers a loose dining policy on all its ships, where the
rules are relaxed. Its products are sports and fun oriented and a modern fleet
attracts all age groups.
Star Cruise Line operates in Asia and caters to the Asian, European and
Australasian markets. Casinos are very popular on their cruises. This operator
specializes in cruises of relatively short durations and focuses on service
quality.
Key Learning Point

Cruise associations help cruise sellers promote cruise products to improve
profits. Cruise lines tend to promote their products to specific markets. They
are always looking to increase their attraction to fill their ships, creating high
competition.

Study Check 8.4.3
1. The Passenger Shipping Association Retail Agent services mostly North

American travel agents. TRUE or FALSE?
(a) True
(b) False
2. Which of the following cruise lines are members of the “big eight”?
(a) Carnival Cruise Line
(b) Celebrity Cruise Line
(c) Costa Cruise Line
(d) Star Cruise Line
(e) All of the above.
3. Which cruise line operates a fleet of the world's largest cruise vessels?
(a) Princess Cruise Line
(b) Royal Caribbean Cruise Line
(c) Celebrity Cruise Line
(d) Costa Cruise Line
4. Star Cruises serve only the North American market. TRUE or FALSE?
(a) True
(b) False
Apply Your Learning

In this unit you learned how cruise line associations promote the idea of a
cruise as a vacation. They also offer training to improve the retail agent's ability
to sell cruises. You learned about the main cruise lines and information on their
characteristics and the age groups they tend to attract. Look up one of the
cruise line associations on the internet. Find out what training it offers to retail
travel agents in its market.
8.4.4 Unit Summary

This Unit outlined the cruise trade associations and their activities. Because of
mergers and consolidations, a cruise line may also be a brand of a larger
holding corporation. The industry practicies is to use the brand and not so
much the larger parent corporation. Cruise lines provide transportation and
entertainment to the markets they serve.
Unit 8.4: Structure of the Cruise Industry 679

8.5 Cruise Product Features
• Understand the range of itineraries and possibilities (Section 8.5.1).

• Understand the length of cruises (Section 8.5.2).
• Distinguish between speciality cruises (Section 8.5.3).
• Define passenger categories and what makes cruises attractive vacations
Unit Learning (Section 8.5.4).
Objectives
A choice of different cruise itineraries and destinations exist to meet any client's
taste. Whether it is a cruise on the ocean, sea, canal, river or lake, almost
anywhere in the world there will be an opportunity to cruise. These cruises
generally last from two to more than 100 days for those clients sailing the
world. Specialty cruises are centered on a theme or activity. Specialty cruises
attract passengers with special interests. You will read how different social
groups enjoy cruising too.
8.5.1 Itineraries
The most popular cruise itineraries are those in the Caribbean region. They
visit many of the popular islands, including their own private islands. There are
also cruises that sail to Alaska and cross the Panama Canal. Some cruises sail
to and from Hawaii.
Many European cruises sail the East Mediterranean and the West Mediterra-
nean. There are many mixed cruise itineraries from Portugal in the west to
Turkey in the east. These cruises stop at most of the famous and romantic
cities of the region such as Lisbon, Barcelona, Nice, Cannes, Monte Carlo,
Palma, Florence, Rome, Naples, Sicily, Venice, Dubrovnik, Athens, the Greek
Islands, Malta, Tunis and Turkey. There are also Baltic and Scandinavian
itineraries and some that circle the British Isles.
In the Far East the most popular cruise destinations include China for river
cruises, Singapore, Thailand, Hong Kong, Japan, Korea and also the growing
cruise markets in the Middle East, the Maldives, Seychelles, India and Sri
Lanka. Through cruise lines' brochures you can learn about the many itinerary
patterns.

Figure 8.5.1—Bangkok River Cruise
8.5.2 Length of a Cruise

The most popular length of time for a cruise is eight days, although longer trips
are becoming more popular. Land portions can supplement eight-day cruises,
as with Alaskan cruises, with pre and post cruise stays at points of departure
and/or arrival. The three and four day cruise from US ports is normally
available in the Bahamas. Passengers sailing on short cruises are usually
those who live or are vacationing in the region to escape the cold winter
months.
Longer cruises from ten to fourteen days usually sail in Europe, South America
or Panama. Longer cruises depend on the time necessary to reach the
homeport of departure. An eight-day cruise may be too short if it takes nearly
two days to reach and return from the sailing points. The day that a cruise
departs from the homeport is important to honeymooners or those with short
vacation time from work.
8.5.3 Specialty Cruises

These are cruises that have themes or special interests to attract passengers
who normally might not be interested in taking a cruise. Themes are centered
on sports, arts, hobbies and education. Theme cruises are usually eight days
or more. If your clients have a hobby they like, there may be a cruise vacation
that will attract their interest.
Then there are River & Canal Cruises. Exploratory Cruises sail to such places
as Antarctica, the Galapagos, Easter Island or the Seychelles. Real adventure
cruises sail up the Amazon or Yangtze rivers. There are wine cruises and
gastronomical cruises on the rivers of Europe and the west coast of North
America. If water covers 71% of the world, then the cruise industry has many
opportunities to exploit.
Unit 8.5: Cruise Product Features 681

8.5.4 Social Groupings

Cruises are very popular with honeymooners or the newly married, since
cruises makes it possible for the couple to relax after the busy preparations for
their wedding.
Family groupings are also attracted to cruises because they offer the
opportunity for three or maybe four generations to enjoy the same vacation.
These families spend time together on the ship, but can also choose different
activities.
In the business world, a cruise ship is a good choice for a sales and marketing
seminar. For these conferences, the participants are on board as a captive
audience and a cruise provides a very acceptable way of mixing business with
pleasure.
Cruise products to accommodate the single traveler are now emerging. Very
few ships have single cabins and only a few cruises offer a “share program”. A
few established European operators such as the Fred Olsen Line and Voyages
of Discovery offer single passenger accommodations. The Queen Elizabeth 2
also offers a number of single cabins.
Key Learning Point

When you have introduced your clients to the excitement of cruising, you have
an almost unlimited possibility of finding a cruise vacation to match and attract
their interests.
Study Check 8.5.4
1. All cruise itineraries are eight days duration. TRUE or FALSE?

(a) True
(b) False
2. Which of these cities is not on the itinerary of a Mediterranean cruise?

(a) Paris
(b) Rome
(c) Venice
(d) Athens
3. You may have difficulty in finding cruises to suit many special interests.
TRUE or FALSE?
(a) True
(b) False
4. Honeymooners are often ideal clients to offer a cruise to. TRUE or FALSE?
(a) True
(b) False

Apply Your Learning

Choose an interest and decide where your clients would like to go to enjoy and
enhance that interest. Look at the duration of their cruise, research an itinerary
which would supplement that interest and decide how you would market this to
a group of interested clients.
8.5.5 Unit Summary

In this unit you have seen that there are unlimited opportunities to sell a cruise
and that there will almost certainly be cruise packages that will satisfy any need
or interest a passenger may have.
Unit 8.5: Cruise Product Features 683

8.6 Cruise Product Benefits
• Understand the cruise benefits for passengers: choice, cost savings,

safety and promotions (Section 8.6.1).
• Understand how these benefits translate into commissions and repeat
business for the agency (Section 8.6.2).
Unit Learning • Understand the cruise line brochure and compare it with alterative
Objectives suppliers (Section 8.6.3).
You will learn the benefits to the passenger who chooses to take a cruise
vacation and how those benefits translate into better business for the agency.
You will learn how to read the brochures and outline the selling points that
match or surpass customer expectations.
8.6.1 Passenger Benefits & Savings

In selling a cruise to your clients you should emphasize the benefits of a cruise
vacation:
• an all inclusive price;
• the need to only unpack once;
• the opportunity to enjoy entertainment every evening without extra cost;
• the safety aspects of the ship for all its passengers;
• the opportunity for every age group to pursue its own interests;
• the possibility of visiting several destinations on the same cruise;
• the savings they will enjoy.
The prices as printed in the brochures are seldom those that the passenger will
pay. Promotions are very common in the cruise line industry as more and more
ships need to fill their cabins on a regular basis. As with all vacation purchases,
there are peak cruising periods and these are usually determined by the school
holiday periods and seasons. Cruises just before holiday periods seem to offer
the most discounts and excellent value, while those during the children's
holidays are usually the most expensive.
8.6.2 Agency Benefits

Cruising is known as the vacation with the highest customer satisfaction rate in
the travel industry. As much as 75% of past cruisers have said that they would
definitely take another cruise. This translates into good, profitable business for
the travel agent. More than half of the 41 million people who have already
cruised did so since 1999 and we expect this rate to increase in the coming
years.
Repeat business is the best business for any travel agent. It confirms a client's
satisfaction with the travel agent's services and his expectation of good service
to come. The client is already convinced–all you have to do is meet
expectations.

8.6.3 Cruise Line Brochures

Cruise line brochures often look similar and are usually quite large. They
describe services, activities, dining options and leisure amenities. Brochures
promote the ships and the itineraries they offer. Finally they indicate the
position of the cabins and their prices.
The brochure is designed to guide agents in the presentation of cruise line
products to the customer. Agents must know the client's budget, cabin
requirements and desired itinerary before presenting a brochure. This infor-
mation will decide which cruise line best meets clients' needs. The type and
location of the cabin on the ship will affect accommodation pricing.
On modern ships there are approximately six categories of inside cabins (the
lowest priced), six to eight categories of ocean view cabins (the most popular),
four to six categories of cabins with outside verandahs and finally the suites or
penthouses. Each of the categories will probably be given an alphabetical
identification and a color. Look at ship deck plans and cabin descriptions in
cruise brochures or in cruise review publications.
Once a ship and itinerary has been decided, a cabin and category suited to the
client's budget is chosen.
These brochures also describe the deck plans of ships, cabins that accommo-
date three or four passengers and cabins for disabled passengers.
At the back of brochures, the terms and conditions of carriage are explained.
Brochures also explain details on insurance costs and coverage. These details
should be studied because they sometimes offer coverage that is not offered
by conventional travel insurance companies.
Key Learning Point

A client must first believe that a cruise will meet their every expectation. Then a
travel agent must choose which cruise line to offer the client. Understanding
the client's budget, time frame and destination preference, a suitable cruise line
can be offered. A travel agent must discuss the benefits of the recommended
cruise line with the client, using the brochure to expand on explanations.
Study Check 8.6.3
1. A cruise represents a nearly all inclusive vacation, which includes food &
entertainment. TRUE or FALSE?
(a) True
(b) False
2. The cabin prices advertised in brochures are usually the prices charged
when a cruise product is sold. TRUE or FALSE?
(a) True
(b) False
Unit 8.6: Cruise Product Benefits 685

3. Cruising during a holiday period offers the lowest pricing to a client. TRUE
or FALSE?
(a) True
(b) False
4. A travel agency can expect a high repeat percentage of sales from their
cruise customers. What percentage of cruise customers come back to buy
another cruise?
(a) 55%
(b) 95%
(c) 75%
(d) 60%
5. Generally, cruise brochures use both letters and colors to identify different
classes of cabin. TRUE or FALSE?
(a) True
(b) False
Apply Your Learning

You have learned how cruising can benefit clients and also produce a good
income. Look at some cruise brochures and compare their presentation. Look
for differences between brochures, paying special attention to the important
selling points that each cruise line promotes. List some good selling points for
cruise products.

8.7 Selling a Cruise
• Understand the selection of the product and its requirements in cost and
accommodation (Section 8.7.1).
• Identify and explain the health and visa requirements of the chosen
itinerary, the conditions of contract and the need for insurance protection
(Section 8.7.2).
Unit Learning
Objectives • Understand how to make reservations and pay deposits (Section 8.7.3).
In this final unit you will identify a suitable cruise, discuss the accommodation
requirements and costs, and identify any health or visa requirements necess-
ary for the destinations to be visited. You will learn the contractual obligations
between cruise lines and clients. Finally you know how to make the cruise
booking, policies on paying deposits and deal with such details as boarding
and disembarking procedures. You will read about requirements for flights to
the port of cruise embarkation and possible deviations from the cruise itinerary.
8.7.1 Choosing a Cruise

Discussing a client's needs before choosing a cruise product is important. This
information will guide a travel agent to offer the cruise that will most interest the
client. Once a cruise itinerary and ship is decided, an accommodation category
that balances the client's needs and budget is determined. At this point, it is
recommended to contact the cruise line to check the cabin availability. Most
cruise lines will offer to make a provisional reservation, provided you have the
full names of all the passengers. This will allow a few days for the passenger to
confirm and pay a deposit and hold the reservation.
8.7.2 Cruise Requirements

A client's nationality is the first detail to check. The client's nationality will
determine if visas are required from the countries visited on the cruise itinerary.
Find out if there are needs for immunization. A client should visit their doctor for
advice on the need for any special medical protection. The cruise line will
provide information on any outbreak of contagious disease and the need for
immunization to avoid refusal of landing rights in certain ports.
Unit 8.7: Selling a Cruise 687

Clients must understand the cruise line Conditions of Carriage, the deposits
required to confirm a booking and the liability that applies when travel plans
have to change suddenly. At this point you should discuss Insurance and
Health coverage for their trip and decide which supplier you would recommend.
The Cruise Line itself or your preferred supplier. You are now in a position to
contact the cruise line and confirm the booking by paying the necessary
deposits.
8.7.3 Booking a Cruise

Most commonly, a cruise booking or reservation is made by telephoning the
cruise line's reservation line. A trained cruise line reservation agent will make
the reservation. They will guide the caller through the necessary steps to learn
the passengers' family names, first names and age. The details of the cruise
reservation will be communicated, including details such as a cruise number, a
cabin number and category, port charges, airfares if applicable, government
fees, airport taxes and transfers to and from the ship. The cruise line agent will
ask if the client wishes to buy insurance from the cruise line's own insurers.
Cancellation coverage can only be purchased at the time the deposit is paid
and not at a later date. This applies even if the full deposit is refundable. The
cruise line agent will ask about the cabin requirements, whether twin or queen
beds are preferred, the meal seating preference (a table for eight is usually the
largest) and the time at which your clients wish to eat. (i.e. 1st or 2nd sitting).
Finally a review of all booking details is necessary to confirm that all
information is correct. The cruise line will then advise the following important
details that the client must accept:
• the deposit amount to be paid to hold the cruise reservation;
• the last day to pay the deposit before the reservation is automatically
cancelled;
• the final payment date when the balance of the cruise purchase is due;
• the methods of payment accepted by the cruise line.
The cruise reservation will most likely be made by telephone, but more
reservations will be made through the use of computerized reservation systems
as they become more commonly used in the near future.
Key Learning Point

Once a client has decided which cruise to purchase, a travel agent must advise
the client of health and entry visa requirements. Every member of the client's
travel party must hold valid travel documents such as passports. Visa
requirements will depend on the nationality of the traveler's passport and not
where the traveler lives or his commencement of travel. The cruise line policy
on deposits, payments and cancellation are important information to communi-
cate to clients.

Study Check 8.7.3
1. Most cruise lines accept to make a provisional cruise booking without

paying a deposit immediately. TRUE or FALSE?
(a) True
(b) False
2. Cancellation insurance can only be purchased at the time the deposit is

paid and not later. TRUE or FALSE?
(a) True
(b) False
3. A client on a limited budget will decide on the acceptable cabin accommo-

dation based on
(a) The price of the cabin.
(b) The location of the cabin on the ship.
(c) The date the client wishes to cruise.
(d) The size of the cabin.
(e) All of the above.
4. Once a deposit is paid it is non refundable. TRUE or FALSE?

(a) True
(b) False
5. Which of the following is not necessary to make a reservation:

(a) names of the passengers
(b) names and telephone numbers of the travel agent
(c) insurance requirements
(d) the passenger's place of birth
Apply Your Learning

Now that you have learned how to sell a cruise and how to determine the type
of on board accommodation required, check the prices from the selected cruise
line brochure and see how closely you can match the information you have
received from the cruise line reservation staff. By doing this you will effectively
ensure that you know where to look for any information your clients may want
for any cruise.
Unit 8.7: Selling a Cruise 689

Module Summary
This module explained how the cruise industry has become the fastest-growing
category in the leisure travel market. The cruise product is diversified.
Throughout its history, the industry has responded to vacation desires of its
guests and embraced innovation to develop new destinations, new ship
designs, wide range of onboard amenities, facilities and services, plus wide-
ranging shore side activities. Cruise lines have also offered their guests new
cruise themes and voyage lengths to meet the changing vacation patterns of
today's travelers. It also explained the importance of both ferries and cruise
ships as products for your agency to sell and improve profitability. The cruise
product is one of growing importance and you now have a basic knowledge of
how to exploit the demand for this type of vacation and earn attractive profits.

Review Questions
1. What percentage of the earth's water area does the Indian Ocean account
for?
(a) 46%
(b) 20%
(c) 24%
(d) 7%
2. Cargo ships carry which percentage of world trade?

(a) 90%
(b) 75%
(c) 53%
3. What type of boat was first used to cross water?
4. The star ferries operate in what part of the world?

(a) India
(b) Africa
(c) Mexico
(d) China
5. Hydrofoils are ferries that travel at higher speeds. TRUE or FALSE?

(a) True
(b) False
6. What is the name of the tunnel linking southern England and northern
France.
(a) Piraeus Tunnel
(b) Channel Tunnel
(c) Star Tunnel
(d) Sydney Tunnel
7. How did Charles Dickens and Makepeace Thackeray help benefit the
cruise industry?

8. In 1835, Arthur Anderson proposed cruises between Scotland and which

destination?
(a) France
(b) Norway
(c) Iceland
(d) Africa
9. What alternative form of transport put cruise ships into decline in the
1960's?
(a) Greater use of ferries
(b) The increase in usage of the motor car
(c) The advent of the jetliner
10. Super mega or giant ships carry .

(a) more than 100,000 passengers
(b) less than 500 passengers
(c) between 1,000 and 2,000 passengers
(d) more than 2,600 passengers
11. Small ships can only carry up to 100 passengers. TRUE or FALSE?
(a) True
(b) False
12. Cruise passengers do not need information on visa requirements for the
cruise journey. TRUE or FALSE?
(a) True
(b) False
13. The first Queen Elizabeth was the largest ship in the world until which
date?
(a) 1974
(b) 1996
(c) 1984
(d) 1986
14. What were the names of Carnival Cruise Lines first two ships?
(a) Americanis and Britanis
(b) Holiday and Festival
(c) Mardi Gras and Carnival
(d) Queen Elizabeth and Queen Mary

15. List three kinds of vehicle a passenger/vehicle ferry would carry

.
16. Which cruise line introduced mega ships?

(a) Princess
(b) Norwegian
(c) Carnival
(d) Oceania
17. Windjammer ships allow the passengers to assist in sailing the ship. TRUE
or FALSE?
(a) True
(b) False
18. Cruising is limited to the oceans of the world. TRUE or FALSE?

(a) True
(b) False
19. What was the original name of the “Norway”, the only ocean liner of the
past to still be sailing in the 2000s?
(a) France
(b) Mauritania
(c) Coronia
(d) Queen Mary
20. Prohibition in the 1920s stimulated cruise ship profits. What innovation in
the 1970s did a similar job?
(a) Room service
(b) Gambling
(c) Broadway shows
(d) Kiddy clubs
21. Which of the following cruise lines is associated with Royal Caribbean?
(a) Norwegian Cruise Lines
(b) Costa Cruise Lines
(c) Celebrity Cruise Lines
(d) Carnival Cruise Lines
22. Up to the 1990s most cruise ships were built to what tonnage?
(a) 25,000
(b) 100,000
(c) 40,000

23. Which of the following companies is not affiliated with Carnival Cruise
Lines?
(a) Holland America Cruise Lines
(b) Princess Cruise Lines
(c) Cunard
(d) Costa Cruise Lines
(e) Orient cruise Lines
24. Nearly all cruise ships have on board casinos. TRUE or FALSE?
(a) True
(b) False
25. Diesel or Diesel electric engines are the most common power source for
ferries. TRUE or FALSE?
(a) True
(b) False


Study Check 8.1.5 1. (a) True
1. b 2. (a) True
2. (a) True 3. e
4. (a) True 5. d
5. (a) True
Review
Study Check 8.2.3 1. b
1. (a) True 2. a
2. a 3. Flat rafts were the first type of boat to cross water.
3. (a) True 4. d
4. e 5. (a) True
5. c 6. b
7. They wrote about cruises.
1. (a) True 9. c
2. (a) True 10. d
1. (b) False 13. b
2. e 14. c
3. b 15. Cars, motorcycles, bicycles, trucks, buses.
4. (b) False 16. c

17. (a) True
1. (b) False 19. a
2. a 20. b
3. (b) False 21. c
4. (a) True 22. c
23. e
Study Check 8.6.3
24. (a) True
1. (a) True
25. (a) True
2. (b) False
3. (b) False
4. c
5. (a) True
Answer Key 695

References
www.seaviewcruises.co.uk
www.cruising.org
Glossary
All-inclusive: A vacation package where one price covers all listed elements
of a package such as lodging, meals and activities.
Amenities: Goods and services offered on ferry-boats that improve the
comfort and overall experience of passengers.
Cargo ship: A vessel used to transport goods and in certain cases,
passengers.
Cruise liner: a passenger ship used for pleasure voyages.
Ferry: A vessel used to carry passengers, goods, or vehicles across relatively
short stretches of water.
Hydrofoil: A ferry with powerful engines, metal plates or fins attached by struts
that act like wings to allow the ferry to lift the hull clear of the water as speed is
attained.
Specialty cruise: A cruise with a theme or special interest for passengers,
such as adventure or wine cruises.
Windjammer ship: A large sailing ship.

Module 9:
Tour Packages
Module Prerequisites • An understanding of the main business sectors of the travel and tourism
industry.
Module, you should have: • Knowledge of the business activities that generate income for the travel
agency.
• An understanding of the role of the travel agent in the travel and tourism
business environment.
• Knowledge of business requirements and commercial skills necessary for
a travel agency to operate efficiently.
• The ability to research, assemble and quote basic air, rail, accommodation
and water ferry rates.
• Identify different types of tours and describe the components and

advantages of a pre-packaged tour (Unit 9.1).
• Explain items included in a tour brochure and quote prices from the
brochure (Unit 9.2).
Module Learning • Outline reservation procedures for booking tours and describe appropriate
Objectives accounting procedures (Unit 9.3).
By completing this Module, • Explain booking conditions including liability and limitations of liability
you will be able to: (Unit 9.4).
Module Introduction
In this Module, you will learn about the variety and organization of tours. You
will explore in detail custom-designed tours, independent tours, hosted tours
and escorted tours and learn about key components that comprise these
different tours. Next, you will evaluate the advantages of selling tours, both for
your potential clients and for you, the travel professional. You will then learn
about tour brochures and evaluate important strategies for reviewing the
essential elements of tour brochures with clients. You will gain insight into the
key information to obtain while making tour reservations and you will learn how
to track and manage important administrative and accounting information.
Finally, you will learn about Tour Booking Conditions and analyse relevant
limitations of liability with respect to tour operations.

700 Module 9: Tour Packages

9.1 Types of Tours and Tour Components
• Identify five different types of tours (Section 9.1.1).

• Describe the major components of a pre-packaged tour (Section 9.1.2).
• Describe the advantages of selling tours (Section 9.1.3).
Unit Learning
By completing this Unit, In this Unit you will learn about what constitutes a tour, explore a brief history of
you will be able to: touring and identify different types of tours. You will also learn about similarities
and differences between customdesigned tours, independent tours, hosted
tours and escorted tours. Next you will learn about pre-packaged tour
components including transport, accommodations, itineraries, sightseeing and
meals. Finally you will learn about the advantages of selling tours both for the
client and the travel professional.
9.1.1 Definition, History, and Types of Tours

Without question, one of the most significant segments of the global, leisure-
travel market is that of tours. Major tourism associations believe that the
package tour product will continue to be highly popular with the traveling public.
Social trends predict that a large portion of the growth of tour products will be in
“partly packaged” holidays, customized holidays (see F.I.T. “For Individual
Travel”) and dynamic packaging, while interest in traditional all-inclusive tour
packages may drop.
A tour can be defined as any form of travel from place to place, with multiple
features that can be packaged and sold as a single unit. Most people, including
students of the travel industry, have preconceived notions about what tours
really involve. Usually they imagine tours as regimented, sightseeing ex-
peditions conducted by tireless guides with gruelling itineraries. As we shall
see, however, tours comprise an ever-growing choice of travel possibilities.
The history of modern tours can be traced to the 1840's and a British individual
named Thomas Cook. Cook is recognised as the first travel professional to
organize a group of travelers for a tour. The first tour was a rail package in
England. Over the course of several decades, Cook and his son led groups of
British travelers throughout Europe, Africa and the Middle East. Traveling in
this form became so entrenched that to this day many Europeans will refer to
touring as the “Cook's Tour”.
Touring in Europe and in other parts of the world remains one of the most
popular ways to visit worldwide destinations. Presently, Canadian and U.S. tour
companies sell tours to more than 23 million travelers each year. One of the
reasons tours are so popular is that they come in myriad forms and can be
organized to fit almost any traveler's interests and budget. In the broadest
terms, travel professionals identify two basic types of tours: customdesigned
tours and pre-packaged tours. Pre-packaged tours can be further divided into
three subtypes: independent, hosted and escorted.
9.1.1.1 Custom-Designed Tours

Travelers who desire the highest degree of control over all of the elements of a
tour will often select a custom-designed tour. Travel professionals create
custom-designed tours, usually by working closely with the client, to accommo-
date all of the individual needs and requests a client makes with respect to the
tour elements. Some of these considerations include accommodations,
Unit 9.1: Types of Tours and Tour Components 701

transport, meals, entertainment and similar elements. Agents sometimes use a

pre-packaged tour as a base and then adapt or change parts of the tour to
match the needs of the client.
A custom-designed tour is commonly referred to as an F.I.T. (or FIT), which
traditionally means For Individual Travel. It has since been used in a variety of
context to refer to Flexible Independent Travel or Foreign Independent Tour.
But in reality, FIT covers both domestic and foreign tours. Conversely, there is
GIT for Group Inclusive Tour.
Because FIT's are tailor-made for the individual, they are generally more
expensive to operate than pre-packaged tours. Also volume discounts that are
generally avail-able to organizers of pre-packaged tours are not available to an
organizer of FIT's. Tour operators realize how time consuming it is to research
and develop an F.I.T. so they are now making it easier for travel agents by
offering them a wider choice of products to sell to clients.
Both FIT and GITs are usually organized for leisure travel, but there is a
growing demand for pre, post, and family tours which can add a leisure
component to the business traveler's trip. Business travelers who cannot get
away for extended vacations are interested in extending their business trip to
include a packaged mini-vacation. For example, the business traveler working
in Milan for three days decides to take a three day tour of Tuscany at the end of
their business dealings in Milan. Most tour operators offer this type of short
vacation, which is also commissionable to the travel agent. Business travelers
are also taking their family members along on work trips. While the business
person is working, the family members can be enjoying a packaged vacation at
the same destination. For example, while a man is working in Thailand, his wife
could enjoy a special weekday spa package offered at the hotel. Afterwards the
couple might go to Phuket for a weekend of relaxation. Do not miss the
opportunity of selling packages to your business clients.
9.1.1.2 Independent Tours

An independent tour, as the name implies, is a tour where participants travel
independently without a group or guide. Participants in an independent tour
can depart and return on any day and can even adjust the length of their stay to
suit their individual needs and preferences. Travelers on this type of tour may
not even realise they are on a tour at all. It does, however, fit the definition of a
tour because participants are purchasing some or most of their travel elements
as a package.
Many independent tours provide only the basics such as round-trip transport to
the destination, transfers from the airport or arrival point and accommodations
at a single hotel. Independent tours are particularly popular with travelers who
wish to go to a resort for the primary purpose of relaxation. They are also
favoured by travelers to destinations that have efficient public transport
systems combined with a variety of local sightseeing tours that the travelers
can choose once they are at the destination.
Frequently independent tours will include a rental car as part of the tour
package. Generally the car class is economy or standard, but the class may be
upgraded for an additional expense. Many independent tours will also give
travelers the option to select from a variety of hotels ranging in price from
budget/economy to luxury. Hotel stays can be booked any time of the year,
although during certain times travelers will pay a premium for accommodations.
Travelers may also elect to extend the length of their tour beyond the original
tour specifications by paying a fixed rate for each additional night of their
extended stay.
One popular type of independent tour is known as a fly/drive tour. This type of
tour allows travelers to visit multiple destinations during their trip and includes

air transport, a car rental and lodging, with a selection of hotels, guest-houses
and even farmhouses. Fly/drive tours appeal to travelers who want to visit
multiple destinations and set their own travel pace.
Frequently, tour operators will make agreements with hotel chains, allowing
travelers to utilize hotel properties within the chain at different destinations.
Usually, the travelers are given a set of vouchers, one for each night of the
tour. Then, traveling on a “go-as-you-please” basis, they give a number of
vouchers to each hotel, matching the number of nights they stay there. For a
few of these tours, itineraries can be planned in advance and bookings made
before leaving home. However, most tours book only the first night, so the
client will have somewhere to go upon arrival at the destination. Then the rest
of the bookings are made by the clients telephoning ahead each day when they
have decided where they want to go. These types of agreements between tour
operators and suppliers such as hotels make for potentially more cost-effective
touring.
As you have learned, independent tours offer tremendous flexibility and
autonomy for the tour participants. Independent tours are ideal for travelers
who value the opportunity to make their own choices and set their own
schedules. Independent tours are not, however, for everyone. Many travelers
seek more structure to their travel plans. For these travelers hosted and
escorted tours may be a more appropriate option.
9.1.1.3 Hosted Tours

Hosted tours offer travelers an opportunity to travel independently, but also to
receive guidance and assistance from a host at each of the tour's destinations.
Typically the host is a representative of a tour company or ground operator who
assists participants with the planning and organization of their activities and
other tour arrangements. The host serves as an information specialist,
facilitating the needs and wants of the tour participants.
Participants in a hosted tour often arrive separately from other participants,
although on certain hosted tours participants will arrive on a charter flight
together. Once the participants have arrived, however, most of their activities
are done individually, not as a group. Some hosted tours include a single
destination with a single host, while others include multiple destinations with
several hosts. On hosted tours with multiple destinations, participants typically
receive round-trip transfers from the airport to their hotel, an orientation session
that frequently includes one sightseeing trip and the services of a host in each
of the destinations.
The host's responsibilities vary from tour to tour, but generally the host will
greet each of the tour participants at the hotel or airport, give them a brief
orientation to the tour components and destination and then remain available to
the participants over the course of the tour. Host availability is also variable, but
generally the host will be available at a hospitality desk or similar area at the
participant's hotel.
Hosted tours are ideal for travelers who want independence and flexibility with
respect to their itineraries and destination activities, but still desire the on-site
guidance of a travel professional.
9.1.1.4 Escorted Tours

Travelers who desire an even higher level of on-site assistance and structure
will appreciate the benefits of an escorted tour. On an escorted tour,
participants travel together as a group and are always accompanied by a
professional escort, also referred to as a tour manager, tour director or tour
leader. This travel professional coordinates the group's itinerary and activities

and is responsible for making sure all aspects of the tour run smoothly. The
accommodations, meals, transport and sightseeing on an escorted tour are all
pre-arranged and as a result the details and difficulties of these matters are
taken out of the hands of the participants.
Escorted tours commonly visit many destinations and as a result the tour
participants are frequently on the move. Unlike independent and hosted tours,
which frequently focus on a single destination, escorted tours often stop in
several different locations throughout the tour. Traveling between the sightsee-
ing stops is generally done in a motor-coach. The participants do not select the
individual hotels during their stay, but may have the option of selecting a level
of accommodation when they purchase the tour package. For example, a
participant might select from Budget/Value hotels all the way up to Premium/
Deluxe accommodations and then once selected, all participants on the tour
will stay in the same accommodation. On small group tours, the accommo-
dation is generally pre-determined by the tour operator and carefully selected
so as to add value to the overall package.
Figure 9.1.1—Step-on Tour Guide
Escorts commonly provide a wide variety of information throughout the tour,

but at times local tour guides, who are experts on specific regions or tour
features, will be utilized to provide more detailed information to the tour
participants. These guides are also referred to as step-on guides, which as the
name suggests are specialised guides who “step on” to the tour temporarily to
conduct a portion of the tour. For example, step-on guides can be utilized to
lead the participants on a city tour or through an art gallery or museum. Some
cities even require that licensed, local, tour guides conduct all sightseeing
tours. In this way some level of quality control is assured and tour participants
benefit by receiving a guide with specialised training.
Generally, participants in an escorted tour travel together from the time the tour
begins until the time the tour is completed. However, many tour companies
now recognize the need to give participants some measure of flexibility during
portions of the tour. As a result, some escorted tours now offer what are known
as modules or tour options, which are choices of tour variations during certain
segments of the tour. For example, rather than selecting a 10-day tour of Italy,
participants can choose how they spend portions of their tour, such as three
days in Florence, four days in Venice or two days in Rome.

For travelers seeking great independence and flexibility, escorted tours will
probably not be the best choice. The group itinerary comes before individual
needs. When the motor-coach is set to depart, all participants must leave.
However, for travelers who want convenience and do not wish to be bothered
with organizing travel details, escorted tours are a logical and popular choice.
There is also a perceived feeling of safety in group travel which appeals to the
less experienced traveler. With the addition of modules and options, in some
ways the distinction between hosted tours and escorted tours is less clear. The
blending of categories also means that escorted tours will likely appeal to a
wider range of travelers.
With an ever increasing demand for sustainable or responsible tourism
products, there has been a significant growth in “eco-friendly” type tours
products. Eco-friendly tour operators offer a holiday experience that focuses on
reducing the negative impact of tourism on a destination and significantly
contributing to its local economy. An eco friendly tour operator will also ensure
that all tour components offer a level of green benefits.
Ecotourism packages and tours are the most environmentally friendly because
participants stay in eco-lodges. They spend their days hiking to enjoy the
natural environment and use the services of local tour guides.
Key Learning Point

Whether custom-designed or pre-packaged, there are hundreds, if not thou-
sands, of types of tours. Check out the Specialty Travel Index on the site
www.specialtytravel.com for an overview of the extreme variety of the current
offer. Over 500 adventure tour operators from around the globe advertise their
tours including antique, butterfly, cowboy and zoology tours. The number of
tours available gives travelers an excellent variety of options to meet their
travel needs. Choice and flexibility are key components of most tours.
Apply Your Learning

Make a list of your hobbies and interests and those of two work colleagues, two
classmates or two friends. Ask yourself how each of these hobbies or interests
might translate into tours. What types of tours would you recommend to each of
your test subjects? Hint: Research existing tours from agency brochures,
preferred suppliers and the Internet. How might you custom-design or pre-
package a tour surrounding each of these hobbies or interests?
9.1.2 Pre-Packaged Tour Components

Now that you have gained an understanding of both custom-designed tours
and pre-packaged tours, let us explore the components or elements that make
up pre-packaged tours. There are many possible tour components and these
will vary depending on the objectives of the tour and the underlying budget.
Certain elements, however, are basic to most tours; these include transport,
accommodation, itineraries, sightseeing and meals.
9.1.2.1 Transport
Virtually all tours include transport as part of the tour package. Transport for
tours comes in many forms and may include air, car, motor-coach, train or ship
to name the most common forms. More exotic modes of transportation might
be found on adventure tours including riding an elephant or llama or a dug-out
canoe.

Frequently, modes of transport are combined or used sequentially to achieve

the objectives of the tour. For example, there are fly/drive tours that use a
combination of aeroplanes and rental cars. Some tours offer fly/cruise
packages, wherein the travelers fly to a port of embarkation and then board a
cruise ship for most of the tour.
Other commonly identified types of tours feature the name of the dominant
mode of transport. For example, a rail tour is a tour whose primary mode of
transport during the tour is by train. Perhaps the most widely recognised form
of touring is the motor-coach tour, which as the name implies, utilizes buses or
motor-coaches to move participants from destination to destination and to visit
sightseeing attractions along the way.
Included in transport are transfers, which is any mode of transport that shuttles
participants from their point of arrival, frequently an airport, to their first
accommodation, typically a hotel. Transfers however, are not limited to
transport between airports and hotels. Virtually any type of transfer is possible,
such as a shuttle bus between a railway station and cruise ship.
9.1.2.2 Accommodation
Virtually all pre-packaged tours that are longer than a single day in duration
include some type of accommodation. Accommodations range from a simple
tent to luxurious hotels and resorts, and as such can be tailored to fit almost
any traveler's budget. Participants sometimes have the option to choose their
accommodation from different price ranges. On escorted tours, the tour
participants stay at the same accommodation, and this fact warrants special
consideration. If the accommodation is a hotel, the property must be equipped
to handle groups. The hotel must be able to register groups efficiently, serve
group meals and provide rooms that are similar in size and quality. Upgrades to
larger or fancier rooms might be an option at the time of booking but would be
based on availability and on a first come first served basis. This last point
deserves special attention, because few things are more upsetting to a tour
participant than finding out that his or her neighbor has a significantly nicer
room. Remember tour participants are all paying the same price, so accommo-
dations should reflect that fact.
As a travel professional you should pay particular attention to accommodation
when booking tours for your clients. Travelers today place a high value in
having accommodations that suits their particular tastes and needs. Remem-
ber roughly one-third of the tour will be spent in a hotel or similar accommo-
dation; therefore it is important that this aspect of the tour be to your client's
satisfaction. Other aspects to consider include availability of transfer services,
parking and access for the motor-coaches, proximity to sightseeing attractions
and accessibility for physically-challenged or handicapped tour participants.
9.1.2.3 Itineraries
Selecting a tour with an appropriate itinerary for the individual client is another
important component of a pre-packaged tour. The elements of an itinerary
include the route, distances, travel times, activities and sightseeing during the
tour.
Helping a client select tour with an appropriate itinerary is an essential function
for a professional travel agent and is an effective way to gain client trust. Happy
clients are also more likely to use your services in the future and to refer you to
their friends and business associates, thereby generating additional revenue.

When considering tour itineraries, it is helpful to understand some basic

guidelines, which may be broken down into five categories: Pace, Routing,
Interests, Details and Energy (P.R.I.D.E). An explanation of these categories
follows:
• Pace: Pacing refers to how quickly or slowly an itinerary moves. Providing
a comfortable pace for clients is essential to their enjoyment of the tour. A
client's age and health should also be considered when determining
whether a tour's pace is appropriate. Older clients often prefer to stay three
or more nights at each hotel, thus reducing the need for constant packing
and unpacking. Generally, younger and healthier clients can move at a
faster pace, but this is not always true and each client should be
considered on an individual basis.
• Routing: Tour routes should be both interesting and efficient. Whenever
possible, tour routes should avoid back-tracking, doubling back or routing a
client in circles. The hub and spoke routing has become increasing popular
for motor-coach tours. With this type of routing, travelers stay at a central
destination and travel via motor-coach to surrounding destinations during
the day, returning to the central destination at night.
• Interests: One very significant way to add value to your clients' tour is to
match their interests with corresponding activities and attractions along the
way. To do this effectively, you must talk to your client and listen carefully
to the types of activities and the manner in which they describe their
interests. Determining and matching interests takes practice and tour-
destination expertise, but the extra effort it takes to practise and learn will
be rewarded in the form of client satisfaction.
• Details: Once you have determined interests when planning a tour
itinerary, it is very important to pay attention to details. Paying attention to
the individual parts of a tour ensure a successful itinerary. These parts
include the dates and times of departure, attractions involved in the daily
itinerary, and communicating the included and excluded items of the
itinerary. Within each of these parts it is important to make sure attractions
are open when your client arrives and to reconfirm transportation, hotel,
and daily tour arrangements. Details are a critical part of the itinerary
planning process because clients have perceived expectations that must
be met.
• Energy: Finally, matching the energy level of the client with the energy
level and intensity of the tour itinerary is another way to assure the overall
success of the tour. When considering this aspect, it is important to take
note of how much walking certain tours require, whether or not the client is
traveling alone or with a family that includes small children and what type of
tour experience the client is looking for. Get a sense of your clients' energy
levels, listen to what they tell you they want, and then help them match the
tour itinerary based on your observations and experience.
9.1.2.4 Sightseeing
Many tours include some type of sightseeing. Some tours, particularly escorted
tours, may have itineraries that are packed with sightseeing. On an indepen-
dent tour or hosted tour, tour participants generally receive sightseeing
vouchers and admission tickets to featured attractions in advance. On an
escorted tour, the escort will generally retain the vouchers and distribute them
to the tour participants at the appropriate time. This has the added advantage
to the participants of eliminating the responsibility and hassle of keeping track
of vouchers and tickets. At times on escorted tours, sightseeing attractions will
be added along the way depending upon the interests of the tour participants
and the unique opportunities that arise. For example, an unplanned stop may

be made for participants to enjoy a parade passing by. The smaller the group,
the more flexible the tour itinerary will be.
The tour company prepays most sightseeing attractions. However, when
attractions are added or in certain cases when the vouchers or admissions are
not available in advance, the tour escort is responsible for obtaining the
vouchers. This is usually accomplished by having the escort precede the group
and pay the admission fee at the point of entry. Long lineups are usually
avoided when groups traveling with an escort.
Figure 9.1.2—Sightseeing is a key ingredient in most tour recipes
9.1.2.5 Meals
A wide range of meal plans is available on pre-packaged tours. The level and
type of plan is one of the factors that significantly affect the price of a tour. The
following is a breakdown of several types of plans that are commonly found as
part of a tour:
• European Plan: This type of plan does not include any meals and
presents a significant saving to the tour operator. Under this type of plan,
tour participants are required to pay for all of their own meals.
• Continental Plan: With this type of plan, tour participants receive a daily
light breakfast such as bread, jams, fruit, cereal, coffee and tea. Continen-
tal plans vary from country to country, however, and in certain countries a
more extensive menu is available and may include meats, cheeses and
even boiled eggs.
• Modified American Plan: Tour participants, under this type of plan,
receive breakfast and one other main meal, usually dinner. Dinner can be
either the midday meal or the evening meal depending on the country and
tour. Because of the variation surrounding the term “dinner”, it is important
to clarify the hour of day involved and explain it to your clients.
• American Plan: With this type of plan, tour participants receive all three
daily meals as part of their tour package. The American Plan is common on
cruise ships and tours that visit more remote or isolated areas.
• Bermuda Plan: Tour participants, under the Bermuda Plan, receive a full
cooked breakfast, but no other meals are provided.

It is important to note that one way tour operators save money is by reducing or
eliminating meals that are included as part of the tour. The type of meal is also
an important consideration in tour cost. For example, a tour operator who offers
five lunches and five dinners as part of the package is offering more than an
operator who offers ten breakfasts. Similarly, a tour operator who allows
participants unlimited menu choices at a destination is offering more than one
who restricts the participants to a selection of three main dishes or a set menu.
Buffet meals are a way to offer variety in a cost effective manner. Smaller
group tours generally include 80% of the meals in their itineraries. If you have
any doubts about what meals are included in a packaged tour product then you
are advised to contact the tour operator and ask how many meals are covered.
It is important to pay attention to these details when booking a tour for a client,
because inclusion or exclusion of meals can be an important consideration for
a client when booking a tour. You will also want to know if your client has any
special food requirements so that their needs may be addressed when
booking. For example, a client might request vegetarian, diabetic, nut free (due
to allergies) or perhaps even halal food. You will need to contact the tour
operator and find out if this type of food is available on a particular tour before
booking. For example, one major cruise line specializing in family tours has a
separate kitchen where nut free meals are prepared for those with severe nut
allergies. Clients will appreciate this attention to detail. Do not tell clients that
something is available when in fact it is not. You will lose this client and any
potential for repeat business. If the type of food, or any special request for that
matter, is not available then take the time and find the right tour that will match
your client's needs. Now you will have a client who will want to come back and
book future trips.
9.1.2.6 Additional Tour Components

In addition to the key tour components discussed above, there are many other
elements that can be included in or excluded from a pre-packaged tour. Some
of these components are gratuities, baggage handling, service charges and
taxes. These items can be of real value to the client, primarily because
including some or all of these items simplifies the tour details from the client's
perspective. Other elements might include promotional gifts, complimentary
drinks or a welcoming event or reception. Typically, these items are of less
value overall to the client than the items mentioned previously.
Key Learning Point

The main components of tours are transport, accommodations, itineraries,
sightseeing and meals. These elements may not be included in every tour.
However, they are the key ingredients for most tour recipes.

9.1.3 Advantages of Selling Tours

Selling tours to travel clients offers a variety of advantages to both the clients
and the travel professional. Advantages to the clients include the following:
1. Time Efficiency: Because many tours are planned and operated accord-
ing to a time schedule, they are very time-efficient. This means that a tour
participant can see more destinations in less time.
2. Increased Security: In a world of heightened security measures, in-
creased safety is a perceived value to travelers. Escorted tours offer
travelers an extra measure of comfort and protection due to the presence
of the escort. This may be particularly important to travelers who are
touring a part of the world with which they are totally unfamiliar and in
areas where they do not speak the language.
3. Ease and Convenience: Because on most tours the components are pre-
paid and packaged together, it makes arranging and understanding details
of the experience much easier for the clients than if they had to arrange the
details on their own. Also, there is the opportunity for clients to see and
experience unique opportunities that may not be available to the indepen-
dent traveler. For example, viewing a private art collection.
4. Cost Savings: Because tour operators and suppliers have access to tour
components at a wholesale cost, there may be a cost savings to the tour
participants depending on the size of the group. For example, 40 people on
an escorted bus tour would pay less than a small group of 12 participants
because the fixed costs are divided over a larger number of people. For
example a bus for 40 passengers might cost $700 per day whereas a bus
for 12 passengers might cost $350 per day. When you do the math, a
person on a group tour with 40 pas-sengers would pay $17.50 per day for
transportation because the higher cost is divided by more people. The
passenger on the group tour with only 12 people would pay $29.17 per
day, so although the group size is smaller, the passenger would be paying
more for transportation. Additionally, fixed costs are expenses which do not
change, no matter what size of group is planned.Examples of these fixed
costs might include the tour escort and other modes of transportation. Do
not assume that the smaller the group the cheaper the price.
5. Less Time in Planning: Because many elements of a tour are pre-
arranged, tour participants spend less time planning their trip than other
types of travelers. In a world where time is equated with money, this
advantage can be significant, particularly to travelers who have limited
personal time. For some, the pre-planning time is spent reading up on the
destination and not in the detail planning.
6. Easier and Safer Niche Travel: For clients seeking a niche travel
experience such as river rafting, mountain climbing or an African safari, a
tour simplifies the details and affords the tour participants much greater
safety and security than doing the same itinerary on their own.
7. Social: For many travelers, tours offer a ready-made social situation with a
group of people, who by virtue of the fact that they are on the same tour are
likely to have similar interests. For this reason, many tours are targeted
towards special interests and to certain profiles such as singles or senior
citizens.

Clients are not the only ones who benefit from the sale of tours; the travel
professional who markets and sells tours benefits as well. Some of these
benefits include the following:
1. Profit Potential: Because tours include a variety of travel components,
each of which will include an agent commission, selling tours offers a far
more attractive profit potential than just selling a piece of the travel
arrangements such as air tickets or accommodations. Commission on a
tour package can add up quickly, especially when booking more than one
client on the tour.
2. Customer Relationship Development: A travel professional who sells
tours, and particularly one who accompanies the tour participants on some
or all of the tour, stands to develop more meaningful customer relation-
ships than an agent who merely sells a quick airfare. The travel
professional will soon learn about their clients' interests, hobbies and
lifestyle and will be better able to meet their travel needs by finding the right
tour. An agent who sells the right tour package to the right client will
develop a loyal following and potentially increase their business through
referrals. For example, if you book a destination wedding package for fifty
guests and each guest is happy with the arrangements and service, you
will potentially have fifty more clients in your database for future travel.
3. Repeat Business Potential: In general, customers buy products from
people they know and trust. The same is true of travel products. Because
tours offer a high level of customer satisfaction, clients who book tours
from you and are satisfied will be likely to request additional services from
you in the future.
4. Provide Real Client Value: Travel clients appreciate value and choice. As
a travel professional who sells tours, you can provide both value and
choice to your clients with a single product. By providing this service you
are more likely to gain the lasting confidence and trust of the client, which
will ultimately translate into additional revenue for you as well as a feeling
of professional pride. Once again, an agent's good reputation will go a long
way to increasing referrals.
Figure 9.1.3—Destination wedding package

Key Learning Point

Tours offer wonderful advantages to both clients and the travel professional.
Participants save time and money, realise a higher level of security and safety,
and have the opportunity to meet new friends. Agents can make more profit,
develop closer customer relationships, and provide excellent value to their
clients.
Study Check 9.1.3
1. Fly/drive programs appeal to travelers who want to visit multiple desti-

nations and set their own travel pace. TRUE or FALSE?
(a) True
(b) False
2. Which of the following is not an example of a pre-packaged tour?

(a) hosted tour
(b) escorted tour
(c) independent tour
(d) custom-designed tour
3. When a tour offers the “European Plan”, participants receive all three daily
meals as part of their tour package. TRUE or FALSE?
(a) True
(b) False
4. On a “hosted tour”, participants travel together as a group and are always

accompanied by a professional escort, who coordinates the group's
itinerary and activities and is responsible for making sure all aspects of the
tour run smoothly. TRUE or FALSE?
(a) True
(b) False
5. Which of the following could be considered advantages to clients who

decide to take a pre-packaged tour:
(a) increased security
(b) ease and convenience
(c) less time spent planning
(d) all of the above

9.1.4 Unit Summary

A tour is a planned trip in which several different places are visited. Its history
can be traced back to the time of Thomas Cook in the 1840's. There are
different types that range from custom-designed tours, independent tours,
hosted tours to escorted tours (Section 9.1.1). Pre-packaged tour components
including transport, accommodations, itineraries, sightseeing and meals
(Section 9.1.2). Both the client and the travel professional benefit from the tour
packages. Travelers see more destinations in less time with increased security,
convenience and cost savings; while the agent not only enjoys financial profits
but also develops better relationships with customers with improved chances
for repeat business (Section 9.1.3).

9.2 Tour Brochures and Price Quotations
• Identify and explain key items in a tour brochure (Section 9.2.1).

• Learn the basics of price quotation from tour brochures (Section 9.2.2).
9.2.0 Unit Overview

Unit Learning
Objectives In this Unit you will gain an overview of how to understand and use tour
brochures as part of your sales process. Key aspects to consider when
By completing this Unit, discussing a brochure with your client include cost, itinerary, group size, pace,
you will be able to: single supplements, terms and conditions and consumer protection. Then you
will learn about important factors affecting the cost of a tour such as pre-tour
transport, accommodations, sightseeing and attractions, occupancy rate and
travel insurance.
9.2.1 Key Aspects of a Tour Brochure

With literally thousands of tours to choose from, selecting the right tour for a
client is no small task. Getting to know your clients and identifying their needs
and wants is part of the process, but knowing about the tour product is a key
ingredient as well. For the latter part of the process, the tour brochure and the
tour operator's website are an essential part of your sales tool kit.
Tour brochures vary from simple one-color leaflets with basic information to
elaborate colorful booklets with detailed photographs, maps, and related
materials. Interactive websites are becoming more popular and are very useful
in gaining additional knowledge. We recommend you do your own extensive
research on the Internet as well as attend product seminars in your area. Sales
representatives (“sales reps”) from tour companies will contact your travel
agency to offer support and education. They will be able to help you match the
right client to their product. Sales reps will also keep you informed and up to
date on special promotions to encourage you to sell their product. For example,
a tour operator, specializing in packaging “sun” destinations, may offer pricing
discounts to customers reserving their winter vacations early. Or a tour
operator may provide gifts to their tour participants, in the form of travel
accessories such as a travel bag or offer a discount voucher for future tour
product purchases. This type of promotion is happening all the time and so it is
important for you to keep current within the travel industry in your region. Trade
magazines, E-zines and the Internet are also popular ways for you to keep
informed.
As a travel professional, it is important for you to become familiar with tour
brochures, understand their key elements and be able to transfer that
knowledge to your clients in a friendly and efficient manner. Consider the
following ideas for assisting your clients with tour brochures:
• Before you present any brochures, qualify your client. Talk to them about
tours and most importantly listen to them to get a thorough understanding
of their needs and wants. Some agencies require a consultation fee at this
point in the sales process to cover the travel professional's time. Fees are
often deducted from the purchase of a tour package. This avoids spending
time with people who shop around for the cheapest price but use the
agent's valuable knowledge to find the right product. Only then should you
consider introducing a brochure. Make sure your name, agency and
contact information are located somewhere on the brochure.
• Offer clients one or two brochures that seem appropriate, based on your
assessment of their needs and wants. A limited choice is less confusing

and overwhelming to the client. It is often helpful to mark key elements of

the brochure with a high-lighter so that the important points will stand out
as the client reviews the brochure at a later time.
• Go over the important elements of the brochure with the client and make
sure you have a sense that the client understands the key points.
• Encourage your clients to read and familiarise themselves with all aspects
of the brochure. Understand, however, that most clients will not read the
detailed provisions of the brochure. Therefore it is beneficial to both the
client and to you to review the key provisions of the brochure with your
client. Areas that are particularly important to cover are what is included in
and excluded from the tour, the cancellation policy, the limitations of the
operator's liability and respon-sibility, important rates, fares and taxes, and
the deposit and payment schedule.
One way to make sure you cover all of the appropriate material in a tour
brochure with your client is to develop a checklist of items to cover in your initial
meeting and follow-up conversations. This does not mean that you will
necessarily have the physical check-list in view of your clients while you are
discussing tours with them. However, once you commit the check-list items to
memory you can go back after the meeting and mark the items off the
check-list. Following a procedure such as this will allow you to deliver a more
consistent sales approach, which will probably increase your effectiveness as a
travel-sales professional. A list of suggested points for your check-list follows.
With experience, you can tailor the list to best suit your personal needs and
business practices.
Tour Brochure Checklist

1. Cost: Make sure you fully explain what is included in the price of the tour
and what is excluded from the tour. Clients will greatly appreciate not
encountering surprises along the way. You do not want your clients to
arrive at a destination expecting a complimentary breakfast only to
discover that they are expected to pay. Clients will greatly appreciate
knowing the costs of items not included in the package. For example, how
much does an average lunch cost in the chosen destination? This will help
them determine how much extra spending money to bring on their tour.
Areas to cover include airfare, meals, transfers, accommodations, sight-
seeing, attractions, gratuities and taxes.
2. Itinerary: Understand your clients' interests and desires when helping
them select an itinerary. To do this effectively, you must spend time with
clients and listen to what they tell you. Too often in sales, the salesperson
will try to sell blindly, without listening. This can result in unhappy clients
because ultimately their needs will not be met. When considering itiner-
aries, ask clients questions about what they want to see and how they want
to experience it.
3. Group Size: Be sure to ask your clients about the size of group with which
they are most comfortable. If a client is looking for a more intimate
experience, he will probably not be happy with a tour that has more than
45 people. Small groups generally range from eight to fifteen participants.
Do not promise your client that there will be 25 (or any specific number) of
people on a tour when in fact, only six book and commit to the tour. Your
client may be disappointed that the tour group is not larger and it may sour
their desire to book this type of tour in the future. This could be too intimate
for them. Check the policy of the tour operator on group size before
booking. Tours come in many different sizes and it is essential that you
match your client with an appropriate type of group.
Unit 9.2: Tour Brochures and Price Quotations 715

4. Pace: Just as tours come in many different sizes, tours also come in just
about every pace imaginable. Determining an appropriate pace for your
clients is essential to their overall enjoyment of the tour. Determining pace
can be tricky and there are many factors to consider such as your client's
age, health, interests and tastes. Make sure you check the tour's itinerary
carefully to determine the tour's pace and whether or not it matches your
client's tastes.
5. Terminology: Make sure your clients understand the language and
terminology used in the brochure. Also make sure they realise that there
are significant differences in terminology between countries. Ask them if
they have any questions.
6. Single Supplement: If a client is traveling alone, make sure he or she
understands about single supplements. You do not want inexperienced
clients to take the double occupancy rate and divide by two to calculate
what they think they will pay. Point out the single supplement rate in the
brochure and make sure they understand how it will affect their tour price.
Read the tour operator's policy on single supplement. Some tour operators
may not charge the single supplement while other tour operators will
charge a single supplement unless a single client is matched with another
single traveler of the same gender to share a room.
7. Consumer Protection: Check to see if the proposed tour is a member of
any organization that offers a consumer protection plan. If a plan is offered,
make sure you identify this point to your client and explain its significance.
8. Environmental Sustainability: The travel industry today is making great
efforts to use their economic strength repairing and protecting the world in
which we travel. Check to see which tour operators have sustainable
practices within their organizations. For example, Japan Airlines is
supporting the International Inner Mongolia Greening Project against
Desertification through the JAL Miles for Eco. Environmental campaigns
may be an added selling feature so get to know your clients and how they
feel about protecting the world. G.A.P. (the Great Adventure People) has a
non-profit organization called Planeterra whose mandate is to give back to
the people and places that they visit on their tours. Planeterra supports
local community projects, non-profit organizations and international chari-
ties that focus on health, education, community development, environmen-
tal conservation and employment skills training. Clients can visit their
projects or even travel and volunteer to work in one of their many
destinations around the world. This type of “green tour package” is
becoming a popular product offered by many tour operators today.
9. Conditions: Clients generally will not read the fine print. Unfortunately, the
fine print is what contains many important conditions and explanations
concerning liability and responsibility. Make sure you review the applicable
sections with your clients as this will detail both the client's and the tour
operator's rights. Some countries require the client to sign a document that
states they have read and understood the terms and conditions. In doing
so, the tour operator and the travel agent, who acts on behalf of the tour
operator, are further protected from unexpected surprises and any legal
action from an unhappy client.
10. Questions: Make sure you answer all of your client's questions! Remem-
ber the sales process involves listening, and identifying and responding to
client needs and wants. Make sure your clients know they can contact you
with additional questions as they arise. The travel professional is the
“middleman” working between the client and the tour operator. Contact the
tour operator on the client's behalf for clarification on any question the
client might have that you're unable to answer, and then get back to your
client right away. They will appreciate this kind of service.

Key Learning Point

Understand that a tour brochure is a sales tool. It should not be used as an
advertising tool. Too many agencies send brochures indiscriminately to clients.
This results in confusion and lowers sales results. Qualify your clients, follow
the check-list, and gain maximum advantage from the information that a tour
brochure provides.
9.2.2 Tour Brochure Price Quotation

One of the most important considerations for many clients when selecting a
tour is the tour's price. There are many factors that will affect a tour's price and
most are generally listed in the tour brochure and its supplements. As a travel
professional who sells tours, you must be able to interpret and explain all of the
relevant information concerning the price of a tour to your client. Some of the
most common factors affecting tour price are as follows:
1. Pre-Tour Transport: All tour participants must arrive at the tour's
departure point at the scheduled time in order to begin the tour. The
manner in which a participant arrives at the departure point will affect the
cost of this type of land-only tour. If participants must fly from their home to
get to the departure point, it will be more expensive than if they simply
need to drive across town. More tour operators are offering land-only tours
with separate pre-tour transportation options due to the popular use of
airline frequent flyer programs. Travelers look for ways to earn travel points
to exchange for future rewards such as free air transportation.
2. Accommodation: One of the single largest expenses in the cost of a tour
is the type and quality of accommodation. If a tour participant chooses to
stay in a hotel in the Budget category, then there will likely be a significant
cost savings compared to staying in Deluxe or Luxury hotels. Be aware of
star ratings as they may vary in interpretation from country to country.
3. Sightseeing and Attractions: Another factor that greatly influences the
cost of a tour is the type and number of attractions and features included in
the tour's itinerary. Clients can economise by selecting tours that offer
sightseeing and attractions that match their budgets. For example, a client
who is trying to economise on a tour of London might want to avoid a tour
that includes evening events such as symphony orchestra performances
and operas.
4. Accommodation Occupancy: Most tour prices are provided as a per
person, double occupancy rate. This means that each person will pay this
rate when sharing a room with another person. In other words, the cost of
the room is double the per person, double occupancy rate. It is important to
explain this concept to your clients so that they are not under the
impression that if they travel alone they will pay this rate. Many tours offer a
single occupancy rate for participants who are traveling alone. The
additional price paid is called the single supplement and frequently
represents a 50% surcharge over the per person double-occupancy rate.
5. Travel Insurance: Many tour operators offer optional travel insurance to
cover a variety of circumstances. This optional insurance will affect the
price of a tour but can offer peace of mind to the tour participants.
Examples of travel insurance coverage include trip cancellation and
interruption, travel delay, loss or damage of baggage and travel docu-
ments, emergency medical expense, medical transport expense, and
accidental death and dismemberment.

Figure 9.2.1—Tour attractions
The type and number of attractions in a tour can greatly affect its cost. Make
sure clients select tours that match their budgets.
Apply Your Learning

Take a tour brochure and read its contents cover to cover. As you read the
brochure, make an outline of the key components discussed in this Unit.
Identify the key items and characteristics of the brochure. Study and outline the
type of pricing provided by the brochure.
There are many other factors that can potentially affect the cost of a tour, and it
is appropriate to review as many of these factors as possible with your client
before booking the tour. Clients will appreciate your honesty, particularly when
it comes to financial matters surrounding travel. Nothing is more certain to
discourage repeat business from a client than a financially dishonest trans-
action. Remember that clients generally expect and appreciate value when it
comes to travel arrangements, which does not necessarily mean that paying
the lowest price is the traveler's only priority. By providing value when booking
tours for your clients, you will build a loyal customer base that ultimately
encourages repeat business and referrals.
Key Learning Point

The cost of a tour is determined by factors such as the type of transport, quality
of accommodations, quantity and quality of sightseeing and attractions, type of
occupancy, and travel insurance.

Study Check 9.2.2
1. It is generally not necessary to go over key points in a tour brochure as

most clients, themselves, will read the detailed provisions of the brochure.
TRUE or FALSE?
(a) True
(b) False
2. When assisting clients in choosing an itinerary, it is important to ask the

clients questions about what they want to see and how they want to
experience it. TRUE or FALSE?
(a) True
(b) False
3. The term “single supplement” refers to a surcharge placed on single

travelers by tour operators as a result of a single person's tendency to eat
and drink more than a married tour participant. TRUE or FALSE?
(a) True
(b) False
4. Which of the following items is worth going over with a client while
reviewing a tour brochure:
(a) group size
(b) itinerary
(c) cost
5. Which of the following items is probably not covered by a form of travel

insurance:
(a) trip cancellation
(b) changes in itineraries
(c) emergency medical expenses
(d) trip delays
9.2.3 Unit Summary

Using tour brochures is part of the sales process. Several key aspects include
cost, itinerary, group size, pace, single supplements, terms and conditions
and consumer protection (Section 9.2.1). There are several important factors
affecting the cost of a tour such as pretour transport, accommodations,
sightseeing and attractions, occupancy rate and travel insurance
(Section 9.2.2).

9.3 Reservation and Accounting Procedures
• Outline reservation procedures for booking tours (Section 9.3.1).

• Describe appropriate accounting procedures (Section 9.3.2).
9.3.0 Unit Overview

Unit Learning
Objectives In this Unit you will learn about details you should cover with your client and
tour operators to ensure a proper reservation of a tour for your client. You will
By completing this Unit, also gain an overview of tour administrative and accounting procedures
you will be able to: including a check-list of points to aid in the development of a tracking system
for administrative and accounting details.
9.3.1 Tour Reservation Procedures

Once a client has been qualified and informed and is ready to purchase a tour,
you will need to make a reservation. Depending on your location and that of the
tour operator, reservations can be made either directly with the tour operator or
with a sales agent for the tour operator. In either case, the actual transaction
will normally occur over the telephone or through your agency's computer
reservation system. Increasingly, the Internet is providing another reservations
channel. Whatever method you use, the same basic information will be
exchanged with the tour operator.
Making tour reservations for a client is not overly difficult, but as with most
aspects of the travel business, developing a system and sticking to the system
can greatly improve your efficiency and accuracy as a travel agent. Accuracy is
important because it will help reduce errors. Errors can be embarrassing and
costly, both in financial terms and in terms of your professional reputation. The
following is a list of details you should cover with a tour operator and/or the tour
operator's sales agent when you make a reservation for a client:
1. Your full name and the name of your agency or organization. Many tour
operators will maintain your name and that of your agency in their
computer systems, thereby facilitating this part of the process.
2. The name and availability of the tour that your client wants to take.
3. The dates of the proposed tour.
4. The full legal names, addresses and any other relevant contact infor-
mation, such as phone and fax numbers, of the tour participants.
5. Air transfer information; this information should include the clients' gateway
city, which is the city from which they will depart, and also details of the city
from which they will return at the conclusion of the tour.
6. Any special requests or situations. Special requests and situations would
include special meal preferences, medical or health conditions, allergies,
physical disabilities or challenges. It could also include anniversary,
birthday or matrimony plans as well as any other important positive
information.
Because your time with the tour operator or booking agent will be limited, if you
are using the telephone, it is important to take detailed notes about the matters
discussed during your conversation and repeat them back to the tour operator
for verification. It is also very important to get the name of the representative
with whom you spoke and set up the reservations. This will facilitate any
changes and eliminate guesswork if any problems arise during the reservation
and ticketing process.

Key Learning Point

It is essential to develop, implement, and follow-up on a system for booking
tours. This will greatly improve the efficiency and accuracy of managing the
accounting and administrative process.
9.3.2 Tour Accounting Procedures

Keeping track of both the administrative and financial details of the tour
bookings you complete is an essential function of an organized and effective
travel professional. Just as you developed a system for tracking reservations,
you will want to develop an appropriate system for tracking accounting and
administrative procedures.
It is important to establish and formalise your relationship as an agent for the
tour operator. Most established tour operators have automated systems for
reservations and these systems are linked to major Global Distribution
Systems. It is important to establish written agreements with tour operators
with whom you do business.
Tour operators have different policies and procedures regarding key adminis-
trative and accounting procedures such as reservations, deposits, refunds and
commissions. Familiarising yourself with the operators' key policies and
developing a tracking system that takes into account these different procedures
will help make your interactions with both the tour operators and clients more
effective.
It will be helpful to develop a tracking system that contains the following types
of information:
1. Name and date of the specific tour booked
2. Number of passengers booked on the tour
3. Date passengers were booked on the tour
4. Date and amount of initial deposit
5. Date final payment is due
6. Rates for various tour participants
7. Document delivery dates
8. Your commission for tour sale
9. Name and contact information for tour operator's representative
Although tracking accounting and administrative procedures is not the most
glamorous aspect of the travel profession, it is extremely important. Because
today's business environment is fast-paced and competitive, travel pro-
fessionals who spend the time initially in maintaining proper records will
ultimately save time, thus allowing them to focus on the aspects of the travel
profession that they find most enjoyable.
Key Learning Point

Make a point of accomplishing the following three key tasks every time you
make a tour booking:
Get a Name. Keeping track of clients and names of intermediaries with whom
you deal during the reservation process will make your job easier.
Unit 9.3: Reservation and Accounting Procedures 721

Get a Number. When booking reservations, ask and make note of any
confirmation numbers.
Get it in Writing. Whenever possible ask for and get the arrangements in
writing.
Apply Your Learning

This Unit covered many of the most important aspects of reservation and
accounting procedures. Apply what you have learned to your work situation.
Design a tailored, written plan for the handling of reservations and accounting
procedures in your agency. If you do not work for an agency yet, create a
theoretical plan based on an agency that specialises in escorted motor-coach
tours.
Study Check 9.3.2
1. Errors can be embarrassing and costly, both in financial terms and in terms
of your professional reputation. TRUE or FALSE?
(a) True
(b) False
2. Which of the following is not an example of a client's special request or

condition that should be discussed with the tour operator at the time the
reservation is made:
(a) special meals
(b) physical disabilities or challenges
(c) allergies
(d) using a credit card to book the tour
3. Tour operators have identical policies and procedures regarding key

administrative and accounting procedures such as reservations, deposits,
refunds and commissions. TRUE or FALSE?
(a) True
(b) False
9.3.3 Unit Summary

To ensure a proper reservation of a tour, it is important to thoroughly cover
details with a tour operator or its sales agent. It is essential to develop,
implement and follow-up a system for booking tours (Section 9.3.1). An
effective travel professions needs to keep track of both the administrative and
accounting procedures including a check-list of points to aid in the develop-
ment of a tracking system for these details (Section 9.3.2).

9.4 Tour Booking Conditions and Limitations of

Liability
• Discuss tour booking conditions and associated liability (Section 9.4.1).

• Analyse limitations of liability associated with tour bookings
(Section 9.4.2).

Objectives
In this Unit you will learn about tour booking conditions including those features
By completing this Unit, that are excluded from or included in the tour, deposits and payment
you will be able to: schedules, cancellation and refund policies, and tour brochure fares and rates.
Finally you will gain an overview of limitations of liability by analysing a tour
operator's “Responsibilities” clause in a Tour Booking Conditions section of a
tour brochure.
9.4.1 Tour Booking Conditions

When clients express interest in a tour, they are primarily interested in the
features of the tour. These features include itineraries, accommodations, points
of interest, attractions etc. Unfortunately, while features are certainly the most
interesting aspects of the tour, they are not the only aspects that affect the
client. An equally important set of circumstances is the “Tour Booking
Conditions” or “Terms and Conditions” as they are sometimes called, which are
generally detailed in the back of the tour brochure. The following are key points
that are generally covered in the Tour Booking Conditions.
9.4.1.1 Included and Excluded Tour Features

The marketing portion of a tour brochure can be misleading. If clients read only
the broad descriptions of the tour, they may be disappointed or surprised when
the actual events of the tour unfold. For this reason, it is important to cover the
features that are included in or excluded from the tour. Examples of these
features include:
• The number and types of meals that are included in the tour package
• The types of sightseeing and attractions that will be visited
• The manner in which they will be visited, and gratuities and taxes
Many tours have optional or “add-on” components and if clients choose to
participate in these add-ons, they will need to budget accordingly. Unless a tour
brochure clearly states that a feature is included, it is safest to assume that it is
not. Of course the most reliable way is to check with the tour operator or tour
supplier directly to answer definitively any client questions concerning features.
Examples of items that are frequently excluded by tour operators are customs
and immigration fees, airport or port charges, city taxes, laundry services, food,
beverages and gratuities not specifically included in the tour's itinerary,
souvenirs and other personal items and effects, medical expenses and certain
types of transfers.
9.4.1.2 Deposit and Payment Schedule

All tour operators will require a deposit and a subsequent payment, in a timely
manner, of the balance of the tour costs to ensure a proper booking. Many tour
companies will require the deposit within 7 to 15 days of making the initial tour
reservation. The balance of the payment is generally due no later than 30 to
Unit 9.4: Tour Booking Conditions and Limitations of Liability 723

45 days prior to the beginning of the tour. The deposit and payment schedule
vary according to each tour company's policies. Timely payment and meeting
key deadlines are essential to ensure that a client's reservation remains in
effect. Failure to meet key deadlines will probably result in penalties or
cancellation, both of which are detrimental to you and your client. After key
deadlines such as the final payment have passed, tour operators may still
accept reservations from prospective tour participants, but they will generally
require payment in full immediately.
9.4.1.3 Cancellation and Refund Policy

Cancellations may be initiated by either the client or the tour operator and the
policies concerning cancellations are typically outlined in detail in the Tour
Booking Conditions section of the tour brochure. Typically, tour operators
reserve the right to cancel a tour prior to departure. There are many reasons
why an operator would cancel a tour. Some of these include severe weather
conditions, political or social instability on the tour itinerary or labour stoppages
and strikes. Operators of escorted tours will generally reserve the right to
cancel the tour if there are not enough participants to fill a particular tour date. It
should be pointed out that the costs for motor-coaches, accommodations and
sightseeing on escorted tours are usually based on a minimum group size. If
that group size cannot be achieved, then the tour operator cannot operate the
tour profitably, and it is likely that the tour will be cancelled, altered or
postponed.
Sometimes only a portion of the tour will be cancelled. This may occur at the
initiation of either the tour operator or a supplier subcontracted by the operator.
In either case, tour participants generally will receive a refund for the missed
portion of the tour. It is more common, however, for a tour operator to substitute
an event or feature of equal value to compensate for the one that is not
available. If this means moving to a lower grade of accommodation, or that
other features of the tour are reduced in quality or quantity, the tour operator
will generally compensate the tour participants for the differences between
grades and/or quality. For example, if tour participants have paid to stay in
premium accommodations valued at $200 USD, and they are switched to
standard accommodations valued at $125 USD, then the participants will
receive a refund for the difference, in this case $75 USD. Refunds may be
issued at the time of the substitution or upon completion of the tour. Some tour
operators will offer an option to the client to either accept the change or cancel
the trip without penalty. but this type of flexibility is less common within the
industry today due to the unstable nature of our world. Politics, economics and
climatic uncertainty have a huge impact on the travel industry. Terrorism,
increased fuel costs and hurricanes are just a few examples of events that
affect how and when people travel.
The other type of cancellation is that initiated by the client. Typically, once a
tour has been confirmed, any cancellation after that date will incur a penalty.
The size of the penalty depends upon how close the cancellation is to the
departure date. Most Tour Booking Conditions outline a cancellation date and
fee grid, showing the size of the penalty in relation to the cancellation date. In
general, the further from departure date, the less costly it will be to the client to
cancel the tour. Typically, beyond a certain date cancellation will result in a
complete loss of the payment for the tour package. In order to avoid these
penalties, many clients opt to purchase tour cancellation and postponement
insurance. This optional insurance allows the client to change or cancel the trip
without penalty for any reason, usually up to 24 hours prior to departure. Under
many circumstances this insurance is small in terms of expense and is
generally recommended unless clients are certain that their departure dates
are firm and that no conflicting circumstances will arise causing them to lose
their tour payment.

9.4.1.4 Status of Tour Brochure Fares and Rates

The cost of a tour may vary considerably during certain seasons and during
certain peak times. Tour brochures will typically outline the differences in price
due to seasonality and other factors. It is important to call your client's attention
to these differences, as the price may vary significantly. Other factors such as
currency fluctuations can also affect the price of a tour and most tour operators
reserve the right to raise tour rates above those published in their brochure,
although most are reluctant to do so and hedge their costing with a built in
buffer. In general, once final payment for a tour has been received by the tour
operator, the price of the tour will not change, even if the costs to the operator
change after that date. To be completely certain of an individual tour operator's
policy regarding rate and fee changes, read the appropriate section in the Tour
Booking Section, or contact the tour operator directly.
Key Learning Point

Covering the deposit and payment procedures and cancellation and refund
policies with clients is often overlooked by travel agents. Differentiate yourself
as a travel professional by reading and understanding in detail the policies for
each tour operator.
Study Check 9.4.1
1. Unless a tour brochure clearly states that a feature is included, it is safest

to assume that it is not included. TRUE or FALSE?
(a) True
(b) False
2. Which item among the following is commonly excluded from the price of a
pre-packaged tour?
(a) accommodations
(b) meals
(c) sightseeing
(d) laundry service
3. Typically, once a tour has been confirmed, any cancellation after that date
will incur a penalty. In general, the further from departure date, the less
costly it will be to the client to cancel the tour. TRUE or FALSE?
(a) True
(b) False

9.4.2 Limitations of Liability

Virtually all tour operators will provide for limitations of liability in their printed
materials. Typically, these limitations of liability can be found in subsections of
the Tour Booking Conditions under categories such as “Responsibilities”. The
following is an example of a limitation of liability disclaimer from a tour operator:
Responsibilities
NZTP, Limited acts as an agent for services provided by operators and
cannot be held liable for any alterations, acts or omissions on the part of
those providing services listed in this brochure or any other services
incidental thereto. Further, the responsibilities of associated air carriers
are limited as specified in their tickets, conditions of carriage and tariffs.
NZTP, Limited shall be under no obligation or liability to any person as a
result of any inaccuracy, misdescription or changes to any tour or itinerary
or for losses or additional expenses due to strike, war, quarantine or other
causes. Baggage and personal effects are the passenger's own risk and it
is the responsibility of the passenger to effect insurance. NZTP, Limited
and the operators involved in this program, shall be exempt from all
liability in respect of any detention, delay, loss, damage, sickness or injury
however and by whomsoever caused and of whatever kind occurring by
any conveyance or property used or utilized by the operator. The passage
contract in use by the operators concerned constitutes the sole contract
between the operators and the purchasers of travel arrangements. Your
travel agent will forward deposits and other payments to us on your behalf
but is not our agent for the purpose of receipting money. Receipt of
money by the travel agent does not constitute receipt by NZTP, Limited.
There is no liability on our part in respect of any money until payments are
“received” by us. “Received” means authorization from a Credit Card
company or where checks are supplied, checks presented and cleared
through our Trust Account by our bank. NZTP, Limited reserves the right
to correct any error or omissions of information prior to final payment
being received by us.
By reading the responsibilities passage above, you can see that several key
areas are covered and the operators make it clear what their liabilities are in
each circumstance. The following are some of the most important issues
covered above:
1. NZTP, Limited claim no liability with respect to inaccuracies or errors made
by its subcontractors.
2. NZTP, Limited claim that liability for air travel lies with the airlines and is
described in the airline's ticket.
3. NZTP, Limited say that they are not responsible for inaccuracies or
changes to the tours and their itineraries as a result of a variety of
unforeseen circumstances.
4. The tour operator claims no responsibility for baggage, and tour partici-
pants are urged to obtain their own insurance for baggage protection.
5. The tour operator claims no responsibility for participant's health, injuries
and any delays experienced on the tour.
6. The tour operator states that the contract in effect is the whole and only
contract. This is also known in legal terms as an “integration clause”.
7. NZTP, Limited state that providing payment to the travel agent does not
guarantee a reservation on the tour. The tour operator must receive some
form of payment from the travel agent for the reservation to be considered
in effect.

Other statements that you will often see in liabilities include:

1. Loss of enjoyment: Meaning that if a participant does not enjoy their
vacation the company is not liable
2. The right to remove a participant from the tour if their behavior or actions
endangers either themselves or others
In general, tour operators will make every attempt to reduce their responsi-
bilities and liabilities with respect to their business operations. It should be
noted, however, that merely disclaiming liability does not mean in all cases that
a company is not liable. All serious questions or concerns with respect to a
company's liability should be addressed to a qualified legal professional.
Apply Your Learning

Take a tour brochure and read the terms and conditions, responsibilities, and
limits of liability. Compare them against what is covered in this Unit. How do
they differ? How are they similar? Then review the complete terms and
conditions and contract of carriage that is provided by the tour company on the
travel documents. Make a habit of breaking down the details into easy-to-
understand terms for you and your clients otherwise you run the risk of
overwhelming your client and possibly losing the booking.
Key Learning Point

Limitations of liability are normally covered in both the brochure and repeated
in more detail in the travel documents. Be sure to review these details and be
prepared to provide the information to your clients. Encourage them to be
aware of both the location and importance of these details.
9.4.3 Unit Summary

Clients are primarily interested in the features of the tour: points of interest,
accommodations, transport. However, it is also important to point out the tour
booking conditions: deposits and payment schedules, cancellation and refund
policies and tour brochure fares and rates (Section 9.4.1). It is ncessary to take
time to go over the Tour Booking Conditions with your client partciularly the
tour operator's “Responsibilities” clause in the tour brochure (Section 9.4.2).

Module Summary
There is a wide array, variety and structure of tours. Most of these are covered
in detail in this Module, including custom-designed tours, independent tours,
hosted tours and escorted tours. There are key components that comprise
these different tours (Unit 9.1). Tours offer many advantages to both the
potential client and the travel professional (Unit 9.1). Planning a tour also
requires preparing tour brochures and reviewing its essential elements and
features with clients (Unit 9.2). It is also important to track and manage
important administrative and accounting information (Unit 9.3). Clients must be
well informed of all tour features and Tour Booking Conditions. A thorough
analysis of relevant limitations of liability with respect to tour operations is
highly recommended (Unit 9.4).

Review Questions
1. A “tour” can be defined as any form of travel from place to place, with
features that are packaged and sold as a single unit. TRUE or FALSE?
(a) True
(b) False
2. In the broadest terms, travel professionals identify two basic types of tours:
custom-designed tours and pre-packaged tours. TRUE or FALSE?
(a) True
(b) False
3. Canadian and U.S. tour companies sell tours to the following number of
travelers each year:
(a) 18 million
(b) 23 million
(c) 14 million
(d) 6 million
4. Custom-designed tours are created by travel clients, who then book their
air and accommodation through a respected travel professional. TRUE or
FALSE?
(a) True
(b) False
5. The term “For Individual Travel” is used exclusively for custom-designed

tours that take place in foreign countries. TRUE or FALSE?
(a) True
(b) False
6. Which type of package is particularly popular with travelers who wish to go

to a resort for the primary purpose of relaxation?
(a) all-inclusive beach resort
(b) independent tour
(c) hosted tour
(d) escorted tours
7. Which type of tour provides the following basics: round-trip transport to the
destination, car rental and first night accommodation?
(a) all-inclusive tour
(b) hosted tour
(c) fly/drive package
(d) escorted tour

8. Which type of tour allows travelers to visit multiple destinations during their
trip and includes air transport, and a stay aboard a ship?
(a) motor-coach tour
(b) rail tour
(c) fly/drive tour
(d) fly/cruise tour
9. Participants of a hosted tour always arrive together as a single group.

TRUE or FALSE?
(a) True
(b) False
10. For travelers seeking great independence and flexibility, escorted tours will
probably not be the best choice. TRUE or FALSE?
(a) True
(b) False
11. Accommodations range from a simple tent to luxurious hotels and resorts
and as such can be tailored to fit almost any traveler's budget. TRUE or
FALSE?
(a) True
(b) False
12. Which of the following category of information is necessary to ask in the

first steps of planning a client's tour itinerary?
(a) pace
(b) interests
(c) routing
13. On escorted tours, most sightseeing attractions are paid for by the tour
participants at the time they enter the attraction. TRUE or FALSE?
(a) True
(b) False
14. Key aspects to consider when discussing a brochure with your client
include cost, itinerary, group size, pace, single supplements, terms and
conditions and consumer protection. TRUE or FALSE?
(a) True
(b) False

15. Tour brochures are an important sales tool and should be presented
immediately to a client so they can review the key points. TRUE or FALSE?
(a) True
(b) False
16. For many travelers, tours offer a ready-made social situation with a group
of people, who by virtue of the fact that they are on the same tour are likely
to have similar interests. TRUE or FALSE?
(a) True
(b) False
17. Which of the following is not an important consideration when determining

the pace of a client's tour itinerary:
(a) age
(b) cost
(c) interests
(d) health
18. The manner in which a tour participant arrives at the departure point will
affect the cost of the tour. TRUE or FALSE?
(a) True
(b) False
19. Unless a tour brochure clearly states that a feature is included, it is safest
to assume that it is not. TRUE or FALSE?
(a) True
(b) False
20. In general, tour operators will accept many, if not all, of the responsibilities
and liabilities with respect to their business operations. TRUE or FALSE?
(a) True
(b) False

Glossary
Destination Wedding Package: One of the fastest growing, and most
lucrative products to sell are destination weddings which combine a wedding
ceremony with a honeymoon, all in the same city, country or resort, oftentimes
including friends and family as guests.
Dynamic Packaging: Websites mimic the experience of visiting a travel agent
and negotiate a deal the consumer wants. Websites also allow the travel agent
to package their own holidays and make better margins, while still offering a
competitive price.
FIT: Abbreviation for “For Individual Travel” which refers to a custom-designed
tour.
Fly/cruise tour: A tour where travelers fly to a port of embarkation and then
board a cruise ship for most of the tour.
Fly/drive tour: An independent tour that allows travelers to visit multiple
destinations during their trip and usually includes air transport, a car rental and
lodging at several hotels.
GIT: Group Inclusive Tour.
Hosted tours: A tour where participants have an opportunity to travel
independently, but also to receive guidance and assistance from a host at each
of the tour's destinations.
Independent tour: A tour where participants travel independently without a
group or guide.
Modules: Elective tour variations during certain segments of an escorted tour.
Motor-coach tour: A tour that utilizes buses or motor-coaches to move
participants from destination to destination and to visit sightseeing attractions
along the way.
Rail tour: A tour whose primary mode of transport during the tour is by train.
Single supplement: An additional charge paid by a tour participant who is
traveling alone and chooses to occupy a double occupancy accommodation.
Step-on guides: Specialised tour guides who join a tour briefly to conduct a
portion of the tour, such as a museum or gallery visit.
Tour: Any form of travel from place to place, with multiple features that can be
packaged and sold as a single unit.
Transfers: Any mode of transport that shuttles participants from their point of
arrival, frequently an airport, to their first accommodation, typically a hotel.


Morrison, Alastair M. Hospitality and Travel Marketing. Albany, New York,
1989.
Perrins, Wendy. Secrets Every Smart Traveler Should Know. New York,
New York: Conde Nast Publications, 1997.
References
Gagnon, Patricia J. and Ociepka, Bruno. Travel Career Development,
6th Edition. Wellesley, Massachusetts, 1998.
Ogg, Tom and Joanie. How to Start a Home-Based Travel Agency. Valley
Center, California, 1997.
Vladimir, Andrew. The Complete Travel Marketing Handbook. Lincolnwood,
Illinois: NTC Business Books, 1988.
Weissman Travel Reports. Travel Around the World. Austin, Texas, 1997.
References 733
Answer Key Review

2. d 3. b
3. (b) False 4. (b) False. Custom-designed tours are created by

travel professionals.
4. (b) False. Hosted tours do not have professional
escorts. 5. (b) False. Tours ‘for individual travel’ take place
domestically as well.
5. d
6. a
1. (b) False. Most clients will not read the detailed 8. d
provisions of a tour brochure. 9. (b) False. Participants of a hosted tour often arrive
2. (a) True separately.
3. (b) False. A single supplement is a surcharge 10. (a) True
placed on tour participants traveling alone who do 11. (a) True
not wish to share a room.
12. d
4. d
13. (b) False. On escorted tours, the escorts generally
5. b pay for the attractions.
1. (a) True 15. (b) False. Before you present any brochures,
qualify your client.
2. d
16. (a) True
3. (b) False. Policies differ from operator to operator.
17. b
2. d 20. (b) False. In general tour operators will try to
minimize their liabilities.
3. (a) True

Module 10:
Serving the Travel Customer
• Understand the role of customer service in the travel industry and how as
a travel professional you can succeed in this business (Unit 10.1).
• Know effective communication skills that will help you engage in positive
interactions with travels customers (Unit 10.2).
Module Learning • Explain some technology used to stay in touch with traveling customers
Objectives and collect market intelligence (Unit 10.3).
By completing this Module, • Realize the benefits of customer loyalty and know how to strengthen the
you will be able to: loyalty of your customers (Unit 10.4).
• Handle and calm upset customers (Unit 10.5).
• Apply strategies to cope with workplace stress (Unit 10.6).
Module Introduction
Travel professionals work in one of the most dynamic industries. Their role is
challenged by constant innovation in technology and higher customer service
expectations. Travel consumers have access to a large amount of information
online. The Internet offers travelers competitive self-service options to
purchase travel. However, the travel agent can still use the internet to help
serve their customers.
In this module, you will examine what customer service in the travel industry
means and its importance in retaining current business while attracting new.
You will also look at the fundamental communication skills leading to positive
agent-customer interactions. You will examine ways to stay in touch with
customers while they are traveling and how to win customer loyalty.
Handling customers who are upset is challenging for anyone working in
customer service, and the travel industry is no exception. You will review a
model that you can practice when dealing with challenging service situations.
The module will discuss the reality of stress in the workplace and learn about
some suggested coping strategies for travel professionals. Finally, study
checks, case studies, application and review questions will help you under-
stand and apply what you have learned.

738 Module 10: Serving the Travel Customer

10.1 Customer Service in the Travel Industry
• Identify the role of a travel professional (Unit 10.1.1).

• Describe the needs and expectations of travel customers (Unit 10.1.2).
• Define what customer service means (Unit 10.1.3).
• Describe the impact of delivering good customer service (Unit 10.1.3).
Unit Learning
Objectives • Describe how the Internet can assist to deliver good customer service
(Unit 10.1.4).
10.1.0 Unit Overview
The level of service customers get has an impact on return business-whether
or not customers come back or avoid you. After all, travelers have a wide range
of options available. Excellent customer service is often the difference between
choosing you or your competitor.
Increasingly, most travelers are internet-savvy and can book their own trips.
They can download apps into their mobile devices and laptops. They also blog
to the world about their experiences and upload photos. When customers go
online, they often check out businesses with the best reviews within their
budget. Bad feedback about customer service can damage your reputation and
eventually lead to decreased revenues. In short, no customers mean no
business.
This Unit will review the role of travel professionals and how to develop
exceptional customer service.
10.1.1 The Role of the Travel Professional
Travel planning can be a time-consuming and frustrating activity. Business and

leisure travelers rely on travel professionals to help them sort out their travel
options and make the best possible arrangements. Travel professionals–from
travel agents, travel counselors to travel consultants–provide advice on
destinations and make all arrangements for air and land transportation, hotel
accommodations, tours, and recreation. They provide information on tourist
attractions, restaurants, and weather conditions. Additionally, for customers
Unit 10.1: Customer Service in the Travel Industry 739

who travel internationally, they inform them about important customs regu-
lations, required travel documents, and currency exchange rates.
As a travel professional, you might work in a retail or wholesale environment.
You may work in a call center where customers are served by phone or
e-mail; or in a travel agency where some walk-in customers are served
face-to-face. In either case, the daily responsibilities of a travel professional
include arranging for business or leisure travel. The latter often involves
tailoring holiday packages to the specific needs of the customer and selling any
additional travel services requested, such as insurance.
Travel professionals commonly engage in promotional activities. You may
promote travel packages that major cruise lines, resorts, and specialty travel
groups offer or you may even promote your services using the Internet, direct
mail campaigns, or telemarketing.
Ultimately, the travel professional's role is to satisfy customer needs so that the
customer has a stress-free and positive travel experience. Customers expect
the travel professional to take care of their every need, correcting errors and
solving any problems related to their travel plans. Therefore the job description
of the travel professional involves being a consultant, advisor, coordinator and
problem solver.
Key Learning Point

The travel professional's role is to satisfy customer needs so that the customer
has a stress-free and positive travel experience.
10.1.2 The Needs and Expectations of the Travel

Customer
The success of a travel business depends on the service that is given by its
travel professionals. As reviewed in the last section, the travel professional's
role is to satisfy the needs of the customer. Therefore, travel professionals
must understand the needs and expectations of their customers so that they
can meet and even exceed them. Meeting and exceeding customer expecta-
tions are priorities and a matter of survival in every service industry, including
travel.

Customers care about receiving quality service, especially in the following

areas:
1. Tangibles1: the business's physical facilities, equipment and staff appear-
ance etc.
Example: A customer expects that the entrance to a travel agency is clean,
organized with displays of attractive brochures, and travel agents may
wear uniforms or be professionally dressed.
2. Reliability: the ability to perform the service dependably and accurately.
Example: A customer expects to receive an accurate and complete fare
quote that does not have hidden charges.
3. Responsiveness: Willingness to help customers and provide prompt
service. This also relates to how quickly travel professionals provide
service and are willing to assist customers.
Example: A customer expects that if a travel agent promises to send their
holiday confirmation within 24 hours, then the travel agent must do so in
the same time frame.
4. Assurance: The knowledge and courtesy displayed by travel agents and
their ability to inspire trust and confidence.
Example: A customer expects a professional who has the knowledge to
answer questions and who can provide useful information.
5. Empathy: Caring, personalized attention given to the customer.
Example: A customer expects that a travel consultant understands how
upset the customer is about losing his luggage at their hotel or airport and
then the travel professional tries to help them.
In addition, customers like to feel valued. This means that they need to feel
important to the travel professional who serves them. They expect the best
service when they pay for it. So, for you as a travel professional that means
providing knowledgeable advice, information, assistance and whatever is
needed to meet and exceed customer expectations.
A part of understanding the needs and expectations of customers is knowing
who your customers are, what types of customers you serve or what categories
they belong to. Customer categories can include age, leisure interests,
business interests, groups and so on. For example, your customers can be
children and they want to enjoy themselves. So if you are recommending a
resort for a family with young children, you would look for resorts with facilities
such as kids clubs. Hence, a part of providing good customer service is being
able to know what a customer may need and provide ways to meet that need.
When you implement all of these service features you are focusing on the
customer and aiming to meet and exceed their expectations.
Key Learning Point

Customers expect good physical business facilities, reliability, responsiveness,
assurance and empathy from the travel professional. Customers need to feel
that they are important to you and that their needs matter. Find ways in every
interaction to meet customer's needs or exceed their expectations.

10.1.3 What Customer Service Means

Selling travel involves offering relevant products and services and then making
the necessary arrangements for customers to carry out their travel plans. The
goal of the travel agency is to keep existing customers so that they will return to
buy again and refer you to their friends and relatives.
There is no doubt that travel professionals must have certain skills to deliver
good customer service. These skills are described below.
Figure 10.1.1—Skills needed to deliver good customer service
• Product knowledge
Product knowledge is essential. Travel professionals must explain the
features of each product or service offering. With the vast amount of travel
information available, you must be able to locate the specific information
that your customer requires–information that is essential to them. Cus-
tomers want travel professionals to find the best price and value,
recommend products and services that are safe, help them if something
goes wrong while they travel, and clarify the fine print on cancellation
penalties and restrictions.
• Operational skills
Travel professionals must be skilled to plan itineraries, reserve flights and
hotels, interpret fares and arrange ticketing. Travel can involve simple trips
or more complex journeys. Making reservations and ticket arrangements
will involve working with various computer systems including global
distribution systems. The degree to which customer needs are met is as
important as the quality of the product delivered.

• Interpersonal skills
The ability to deal with customers in a friendly and professional manner is
just as important as product knowledge and operational skills. This is
“customer service”. Being polite and friendly is the foundation for building
excellent customer service. It also involves the ability to communicate
effectively and to deliver service in a way that is customer-centric, or
centered on the customer's needs. Customer service is also about
delivering what is promised and expected by the customer. According to
various customer satisfaction surveys, all consumers want to feel that their
needs are important to their service provider.
• Customer Value Anticipation Skills
The ability to identify and anticipate the customer's needs is an important
skill for the travel professional. The travel professional must be able to look
at a customer's past purchases or have knowledge of a customer's needs
to recommend useful customer products and services that are beneficial to
them. Ultimately, being able to anticipate what the customers will value can
lead to higher customer satisfaction and loyalty. For example, if you know
that a customer values a hotel having a swimming pool and free parking,
you will recommend hotels with these features first.
The Importance of Customer Service Skills
Paying attention to customer needs requires interpersonal skills. Interpersonal
skills is the ability to communicate in a group or with individual people.
Interpersonal skills include how a travel professional asks questions, listens to
a customer or how a customer's problem is solved. A customer may choose 1
out of 10 available agencies because of the effective interpersonal skills of its
travel professionals. Interpersonal skills can make a really big difference and
they are at the very center of providing exceptional customer service. An
agency can have many repeat customers solely because they are satisfied with
the customer service they receive.
Customers often times choose a company over its competitor because of the
service they receive. Every contact between a customer and a travel
professional is an opportunity to deliver excellent customer service and
demonstrate customer centricity. Customer centricity shows that the customer
is always at the center of everything the agency does. Service may take five
seconds, five minutes or half an hour. Each time the customer is in contact with
and is served by the travel professional, the agency has an opportunity to build
or maintain its' reputation. The customer's business can be lost or it may be
gained at each interaction with the travel agency's staff.
It is easy to lose customers, and very difficult or expensive to replace lost
customers. The Technical Assistance Research Program (TARP) is a cus-
tomer service research company in the US that has measured the high cost of
losing a customer for any business. TARP reports that on average:
• for every customer who complains, 26 other unhappy customers remain
silent
• the “wronged” or unhappy customer will tell eight to sixteen people
• 91% of unhappy customers will not buy from the same supplier again
• if customer complaints are solved, at least 80% will remain repeat
customers
• it costs five times as much to attract new customers as it costs to keep old
ones
Customer satisfaction is the best measure of the success of a travel business.
High customer satisfaction will earn the travel agency a good reputation.

Customers will tell friends and relatives about the travel agency's good
reputation. Spreading the agency's name by customer word-of-mouth is a
highly effective marketing approach, one that does not cost any investment and
guarantees to attract new customers.
Key Learning Point

Customer service is defined as the degree to which a customer's needs are
met and the customer's level of satisfaction. Each interaction with a customer
determines whether the customer's business is secured or lost.
10.1.4 Using the Internet to Serve Customers

Consumers use the Internet as a way to shop for travel products and services.
Customers who purchase travel online claim that:
• The Internet is an easy research tool: Customers view the Internet to be
an easy research tool. It allows them to quickly compare different supplier
products and pricing. Internet users are satisfied with their Internet
experiences and consult travel professionals in “special situations”.
• The Internet is a convenient tool: Internet customers like the fact that the
Internet is available whenever they are free and ready to make their travel
plans.
• The Internet is ideal for arranging simple itineraries: A high percentage
of Internet users state that they use travel professionals for more complex
trip arrangements that take too much time to make online.
• Internet products and services are not always less expensive: Internet
users do not believe they always save money in arranging their own travel
needs. Nearly 4 out of 10 travel consumers believe that travel pro-
fessionals offer deals that are not available online.
Source: AmEX GBT Survey, Canadian Travel Press, October 2015
As more travelers book their trip online, fewer travelers may use the services of
a travel agent to book simple itineraries such as their flights or even hotels.
Although in the past, the internet may have seemed like a competitor to the
physical travel agency, the internet is used by many travel agents to assist their
customers to provide quality customer service.

Travel agents take trips to visit destinations, hotels and attractions to become
familiar with the services. These are called familiarization trips. Agents write
reports and take pictures while they are there. Agents can right away post
pictures on their company websites or update information on the places they
have been to. This is a great advantage for the travel agent to let their
customers know about the places they can visit. While on the familiarization
trip, agents may develop relationships with the hotel managers, sales
managers or other key personnel. They have the added advantage of knowing
first-hand the destination and key personnel who work there. The agent can
use the internet to check room availability but they can also pick up the phone
and speak to someone personally who they know there at the hotel. The
internet, in the hands of the travel agent then becomes a great tool.
Many travel agents may even prefer it when their customers already make their
simple travel arrangements and then come to them for help in more complex
services.
Some travelers do some research before using the services of a travel agent.
The travelers come to the agent more informed and tell the agent exactly what
they want in their trip.
Travel professionals have the opportunity to offer the following services which
are not available on the internet:
• services for “special situations” such as event planning
• arrangement of complex trips requiring more than point-to-point transpor-
tation
• securing preferential pricing or “deals” with suppliers which can be passed
on to customers
• personalized service and expertise
Online travel sites sometimes offer many options that may leave a customer
very confused. Travel professionals are also able to save the traveler
frustration, time and money as the travel agent will do the travel searches for
them.
Travelers need the help of professionals to make travel arrangements that are
too difficult or time-consuming to make independently online. When serving
customers, travel professionals can use the internet to find out more infor-
mation about the countries the clients are visiting. The internet offers a lot of
information on currency exchange rates, travel advisory alerts, weather
changes and so much more.
As travel professionals, your job is not just finished once the service is booked,
the travel professional is there for the entire process of the vacation or
business trip until the customer returns home. The internet can also help to
keep in touch with your customer by email.
Key Learning Point

Although customers use the Internet as a research and sales tool for travel
products and services, there are customers who need the services and support
of a travel professional. Travel professionals too can use the internet to help
serve their customers and satisfy their needs.

Study Check 10.1
1. The main role of the travel professional is to

so that the customer has a positive
travel experience.
(a) reduce travel costs
(b) sell discounted travel packages
(c) satisfy all customer needs
(d) make hotel reservations
2. It is critical for travel call centers and retail travel shops to deliver face-to-
face customer service. TRUE or FALSE?
(a) True
(b) False
3. Customer service is globally defined as which of the following?

(a) The quality of the product or service sold
(b) The degree to which customer's needs are met
(c) The timeliness of the services delivered
(d) The ability to communicate clearly and politely
4. Excellent customer service involves which of the following?

(a) Delivering service that is customer-centric
(b) Displaying a polite and friendly disposition
(c) Arranging complex itineraries
(d) Demonstrating a high level of product knowledge
5. The main objective of good customer service is to

customers.
(a) reward existing
(b) encourage repeat
(c) replace existing
(d) avoid complaining
6. Customer satisfaction is the best measure of the success of a travel

business. TRUE or FALSE?
(a) True
(b) False

7. Why do consumers buy travel from a travel agency?

(a) Agencies use their supplier commissions to discount prices
(b) Agencies offer the same products and services offered online
(c) Agencies specialize in selling every destination and travel services
(d) Agencies provide personalized service and knowledge that saves time
Apply Your Learning

1. Observe or survey travel professionals on all their contact points with
customers. List the contact points from initial in-person greeting, telephone
call or e-mail to the final contact following the customer's trip. How many
times is there contact between the customer and the agency? Write what
could go wrong at each contact point that may damage the relationship
with the customer or lose customer loyalty.
2. Try to remember a recent experience in which you felt that the service
provider paid attention to your specific needs. Then think about an
experience in which you felt you were not served well. Compare these two
experiences, describing the impact on your feelings as a consumer and
your future interactions with that service provider.
10.1.5 Unit Summary

In this Unit, you have studied the importance of customer service in the travel
industry. You learned that:
• The travel professional's role is to satisfy customer needs so that the
customer has a stress-free and positive travel experience (Unit 10.1.1).
• Customer service refers to the extent to which the customer's needs are
met (Unit 10.1.2).
• The customer's business can be lost or it may be gained at each
interaction with the service provider (Unit 10.1.3).
• The internet is a valuable tool for travel professionals in providing quality
customer service. (Unit 10.1.4).

10.2 Communicating with Customers
• Describe active listening techniques to make customers feel important

(Unit 10.2.1).
• Identify effective questioning techniques to determine customer needs
and preferences (Unit 10.2.1).
Unit Learning • Recognize the non-verbal signals that express a customer's feelings and
Objectives frame of mind (Unit 10.2.2).
By completing this Unit, • Describe how to effectively communicate by telephone, e-mail and text
you will be able to: messaging (Unit 10.2.3).
• Identify solutions to challenges faced when communicating with cus-
tomers who speak a different language (Unit 10.2.4).

The travel professional's goal is to interact with the customer in a way that
creates a positive customer experience, bringing existing customers back and
attracting new ones too. Travel professionals may interact with first time
customers who are booking a service or customers who are away on their trip
and they contact the travel professional for some sort of assistance. Successful
customer service and sales calls depend on how well the travel professional
interacts with each customer. If the interaction is positive then the customer's
experience is also positive.
This unit focuses on the importance of verbal and non-verbal communication
skills with an emphasis on active listening and effective questioning tech-
niques. These are critical in the model for Delivering Exceptional Service.
Additionally, this unit presents some of the challenges of communicating with
customers by telephone. It also provides some basic “do's and don'ts” when
talking with a customer either face-to-face or on the phone.
10.2.1 Verbal Communication

A successful travel professional knows how to make customers feel important.
Customers expect travel professionals to be attentive and friendly, listen
effectively, deliver the services requested and solve any problems. Meeting
these expectations and giving customers the attention that makes them feel
welcome and important will bring them back to the travel agency over and over
again.
10.2.1.1 Active Listening

Listening is an important communication skill. For those who work in sales and
customer service, listening is more important than speaking. If you do not hear
what the customer says, you cannot recommend the service or product that will
truly satisfy their needs and preferences.
Listening seems to be a passive activity compared to speaking. However,
listening is active in communication. Active listening is about interpreting the
words heard, interpreting how the words are said and then making sure you
correctly understood what you heard. To really satisfy customers you must
listen actively. Listening actively means hearing what people say and under-
standing what is said.
If travel professionals listen for signs of what the customer finds interesting,
they can match them to special or unique services offered by the agency.

10.2.1.2 Active Listening Techniques

Below are several techniques for listening actively.
• Be encouraging–Use encouraging phrases to communicate to the cus-
tomer that you are really listening. Example: Yes... okay....
• Reflect back feelings–Showing empathy for the customer suggests that the
travel professional is willing to help the customer. People want to be heard,
understood, valued and acknowledged. Empathy means understanding
and recognizing the customer's emotions. Empathy is shown in the way the
listener confirms that the customer's needs are understood. Examples of
expressing empathy are: I understand; I would want the same thing too; I
would be excited too.
• Paraphrase–Restate the customer's words in your own words to confirm to
the customer that you are listening, and understanding what they are trying
to tell you. This serves to discourage the customer from continuing to
repeat the same statement. At the same time, it encourages the customer
to explore and clarify what they want to say. Paraphrasing usually contains
four elements.
1. A sentence stem, such as: “It looks like....sounds like are you saying
that?....do you mean …?
2. Repetition: Use key words used by the customer. Repeating what the
customer says allows the customer to correct any misunderstanding of
information. It is best to paraphrase or to repeat the information in our
own words.
3. Summary: Briefly recap what was said.
4. Accuracy: Ask a question at the end of the paraphrase to ensure you
understood.
Some examples of paraphrasing phrases:
“To get back to what you were just saying ...”
“If we concentrate on what you were talking about before ...”
“You said at the beginning that ...”
“In other words …”
10.2.1.3 Listening Face-to-Face: Best Practices

The travel professional must consider the travel agency's policies, rules and
standard practices when speaking to the customer. Here is a list of “Do's” and
“Don'ts” when serving customers.
Unit 10.2: Communicating with Customers 749

Do Don't
Do eliminate or tune out distractions Don't make assumptions about a customer's needs
Customers know when their service provider is dis- It is easy to pre-judge customers' preferences and
tracted. They interpret distraction as a lack of interest needs based on what you see, such as:
in their value to the business. To minimize distractions: • dress and appearance
• secure the most private office area, away from
• ethnic origin, race or religion
other office activities and discussions
• gender
• turn off mobile phones;
• send incoming telephone calls to voicemail; return Assumptions may lead a travel agent to offer the
wrong products or services and upsetting or disap-
the call after the customer leaves
pointing customers. Making assumptions about cus-
• close e-mail applications so that incoming e-mails tomer needs puts the rapport with customers at risk. It
do not pop up on the computer screen or ring is better to ask questions than to make assumptions.
Do write notes Don't think ahead of the conversation
You may find it challenging to remember all of what the When you are concentrating on what to say or ask
client tells you verbally. Writing key facts and infor- next, it affects your ability to listen. The result is that
mation that the customer gives encourages you to be you could miss key information from the customer.
objective in the listening process and to capture all
information.
Do observe body language Don't speak while the customer is speaking
The customer's body language, tone of voice and It is natural to want to serve customers as quickly as
facial expressions complement the customer's words. possible. Time is money and the more time spent
To really understand the customer's needs and prefer- serving one customer means that you will have less
ences, his body language and expressions must align time to serve other customers. Productivity is an
with what he says. A customer responding “OK” with a important job performance indicator. But interrupting a
shoulder shrug to the suggestion of a river cruise customer who is speaking is impolite and may influ-
package may be showing you that he is not convinced. ence the customer to stop talking. If the customer
Good listeners pay attention to what the customer is stops talking, how will the travel professional know
“thinking”. what the customer needs?
There are ways to efficiently control a conversation
with a customer without interrupting the customer's
effort to express what he or she needs.
Do show politeness and control your emotions Don't use industry jargon in conversation
...even when the customer is upset. It is important not The travel industry has a language all its own. The
to take customer complaints personally. A customer travel industry uses many acronyms, abbreviations,
who is upset expresses dissatisfaction over a situation codes and jargon. Customers do not understand this
for which you may not be directly responsible for. A language. Advising a customer that the flight “ETA” is
response from a calm and polite travel professional will at 3:30 PM will be confusing to him. Telling a customer
calm frustrated or disappointed customers. that a reservation is made on a direct flight may be
interpreted by the customer that it is non-stop, while
the flight makes a stop between the flight's origin and
destination. It is important for the travel professional to
translate industry language into plain easy language in
conversations with customers to avoid unnecessary
confusion or misunderstanding.
Table 10.2.1—“Do's and Don'ts” When Listening to Customers Face-to-Face
Key Learning Point

Good customer service begins with actively listening to customers in order to
accurately determine their needs and preferences. Good listening skills help
travel agents understand and deliver what customers want.

10.2.1.4 Questioning Techniques

Questions can help the travel professional learn information about the
customer, avoid misunderstandings, calm a customer who is dissatisfied and
help build relationships. For example, after greeting and introducing yourself to
the customer, it is best to let the customer do the talking. Ask questions to keep
the customer talking and to create a rapport. Creating rapport means that the
customer can communicate with the travel agent with a sense of trust, comfort
and understanding. Establishing a good understanding with the travel customer
as early as possible in the conversation helps the customer feel comfortable.
When there is good rapport between the travel professional and the customer,
the customer is relaxed and open to receiving help and suggestions.
To establish a good rapport with customers, the travel professional will need to
find out why the customer has contacted him/her. Asking the customer the right
questions will help to get better information to satisfy the customer's needs.
There are two basic types of questions:
1. Close-ended questions:
• Usually begin with where, are, do, would, will, if.
• Give facts.
• Are easy to answer.
• Are quick to answer.
• Keep control of the conversation with the questioner.
2. Open-ended questions:
• Collect opinions and preferences.
• Encourage a customer to talk openly. This allows you to get as much
details as you can from the customer to determine their needs and
assist them.
• Usually begin with what, how, why, describe.
Closed-Ended Questions Open-Ended Questions

Used To collect • Facts • Feelings, beliefs, opinions
• Short answers • Longer answers
When To Use • To make discussions shorter and • To continue the discussion
efficient
• To widen the discussion
• To draw attention to a specific point
• To open new discussion
• To avoid discussing less important
• To better understand the customer's
topics
needs
• To confirm understanding
Examples • “What is your name?” • “What seems to be the problem?”
• “Where did you last vacation?” • “What are your future vacation plans?”
• “How long do you plan to travel?” • “What part of this independent tour
interests you?”
• “Do you like cruises?”
• “Give me an example of activities you
like doing.”
Table 10.2.2—Comparing Closed and Open-Ended Questions

10.2.1.5 Questioning Tips

Asking questions is an important skill. Here are some tips to help guide you
when you ask your customers questions.
• Give the customer time to respond to your question. Some customers may
have to think carefully before they give an answer. Be careful to listen and
do not assume what the customer may be thinking when they are silent.
• Be careful when you use a “why” question. “Why” questions, if improperly
asked, often cause individuals to become defensive as the customer may
think that you are criticizing their actions. An example of a why question is
“Why don't you want to connect in London?” or “Why can't you leave a
week earlier?” You should instead smile and use a helpful tone that shows
you are asking the customer to find out more about their needs.
• Ask one question at a time. Keep your questions simple. Avoid asking
about multiple things or options at the same time. If your question contains
several options, you may confuse the customer. An example of a question
with multiple options is “Are you interested in guided tours of ancient ruins
and sites or relaxing on a beach and perhaps taking in some sports?”
• Beware of using questions as statements. Avoid leading your customer to
accept your point of view by turning a statement into a question. For
example, “Don't you think it would be a better idea to tour Boston instead of
New York City?”
• Be sensitive to cultural differences. For example, if a travel professional
uses rapid fire questioning, this is where questions are asked quickly one
after the other; this may create distrust in the customer, especially in
individuals from non-western cultures.
• Make sure that you understand the customer's question before giving an
answer. You can ask another question to confirm that you understand. Ask
questions to ensure that you give the right answer instead of guessing. It is
also useful to repeat the question back to the customer, for example,
“Mrs. Rogers, just to ensure that I understand you correctly, you would like
to know whether the hotel offers free breakfast?”
Remember that the person who is doing the questioning is in control of the
discussion. Using questions appropriately is important when serving the
customer.
Key Learning Point

Use closed-ended questions to obtain facts; and use open-ended questions to
learn about the customers' needs and interests.
10.2.2 Non-Verbal Communication

Individuals communicate with much more than words. In fact, research shows
that the majority of communication between people is non-verbal. When
interacting with others, you continuously give and receive wordless signals. All
of your non-verbal behaviors–the gestures you make, the way you sit, how fast
or how loud you talk, how close you stand, how much eye contact you make-
send strong messages. Your ability to understand and use non-verbal
communication will help you express what you really mean, interpret what your
customers really mean and build rapport.

Customers interpret the signals you send through body posture, movements
and facial expressions. Your customers decide whether or not you value their
business through your non-verbal communication. Non-verbal signals com-
municate your level of interest, trust, and desire to serve—or they communi-
cate disinterest or ignorance.
10.2.2.1 Types of Non-Verbal Communication and

Body Language
There are different forms of non-verbal communication. By becoming aware of

how gestures, posture and body movements influence the customer's percep-
tion of your skills and interest in their business, your interaction with them will
enhance your rapport. The following non-verbal signals influence customer
thinking and their conclusions about your customer service skills. They will
influence the customer's perception of your service level, determine their
comfort level in communicating with you and influence their trust.
Facial expressions: Your face is extremely expressive and can display many
emotions without saying a word. Facial expressions are universal. The facial
expressions for happiness, sadness, anger, surprise, fear, and disgust are
practically the same across all cultures.
Body movements and posture: The way you sit, walk, stand up, or hold your
head tells a lot about your self-confidence and professionalism.
Gestures: You wave, point, and use your hands without thinking when you are
discussing or speaking. However, the meaning of gestures can be very
different across cultures and regions. So it's important to be careful to avoid
those gestures which could communicate the wrong message. Avoid gestures
that might offend the customer or make the customer feel uncomfortable.
Eye contact: Eye contact is a form of non-verbal communication. The way you
look at someone can communicate things such as interest or disinterest,
friendliness or annoyance, agreement or disagreement. Eye contact is used to
capture attention and maintain a flow of conversation. Through eye contact you
can measure your customer's reactions to your recommendations. However,
while direct eye contact helps communication in most western cultures, it can
be interpreted as rude in some eastern or Asian cultures such as Japan, Korea
or Thailand.
Handshake: Individuals communicate through touch in a handshake or a
shoulder tap. A firm handshake in western culture is interpreted as a sign of
self-confidence while a light handshake is acceptable as a form of greeting in
Asian cultures.
Space: North Americans and most Europeans prefer to interact with some
degree of personal space. In some Asian countries even more personal space
is required. However, Latin American and Middle Eastern natives tend to need
little personal space when interacting with each other. It is important to be

sensitive to the personal space required by customers when you serve them in
person because you want them to feel comfortable while you interact.
Voice: Speech sounds such as tone, pitch, volume, inflection, rhythm, and rate
are important communication elements. When you speak, other people “read”
your voice in addition to listening to your words. These non-verbal speech
sounds provide subtle but powerful clues into your true feelings and what you
really mean. For example, tone of voice can indicate a variety of feelings,
including sarcasm, boredom, interest or confidence.
Key Learning Point

Much of everyday communication is non-verbal. The non-verbal signals you
send can produce a sense of interest, trust, and desire for a rapport–or they
can generate disinterest, distrust, and confusion in the customer.
10.2.2.2 Professional Appearance and Grooming

People make decisions about others within the first few seconds of an
encounter. The way someone looks and grooms themselves creates a
perception. It is important for any service provider to dress appropriately so that
customers perceive the image of an experienced and credible professional.
Dressing too casually may create the impression that the travel professional
has little authority. Poor grooming on the part of the travel professional can
lead customers to equate it to poor service. Customers tend to trust service
providers who look professional.
Consider the expression, “You act the way you look”. If a service provider
dresses and looks professional, he/she will tend to work professionally. Even
when service is delivered by telephone or e-mail, the quality of your work and
the service you deliver will be influenced by your personal presentation,
including how you dress, an organized environment and your posture.
The following areas of personal presentation help create a good first
impression.
• Clean and combed hair
• Neat and moderate amount of cosmetics
• Clean and pressed clothing in good repair
• Clean hands and fingernails
• Fresh breath
• For men, clean-shaven face or neatly trimmed moustache or beard
• For women, stockings with no runs or tears
10.2.3 Telephone and Text-Based Communication

Other than face-to-face contact, customers typically communicate with travel
professionals through telephone and text-based methods. These text-based
methods are generally through e-mail and text messaging.
In today's travel businesses, selling travel on the telephone is likely more
common than selling in person. Handling customer telephone calls effectively
is critical to the travel business' success. Customers also use e-mails and text
messaging to communicate with travel professionals whether they have
enquiries or are 1,000 miles away on a trip somewhere around the world. Most
travel companies make it easy for customers to contact travel professionals by
offering a variety of methods or options to communicate.

10.2.3.1 Communicating by Telephone

As seen in the previous section, people communicate through verbal and non-
verbal language. Travel professionals are at an immediate disadvantage on the
telephone as they are left to measure customer satisfaction mostly by the
customer's verbal signals. There are no visual signals such as body language
to help interpret what the customer feels or thinks about the service. Travel
professionals therefore must use active listening and effective questioning
techniques to determine what the caller is trying to express.
Calls coming into a travel agency must be properly managed. Each incoming
customer call is important because each one represents a potential sale and an
opportunity to make customers feel well served. If the customer has called for
clarification or information, it is an opportunity to cross-sell other products or
services such as insurance, a rail pass or a car rental. If a sale is closed before
the call ends, it is the call owner's responsibility to advise the terms and
conditions associated to the purchase, such as rules on reservation cancel-
lation or changes. Relationships with customers must continue after the sale by
scheduling an after-sales call to see whether the customer is satisfied with the
purchase.
Delivering really good customer service on the telephone is possible by
following proven standard procedures. There are six common steps leading to
successful telephone interactions with customers.
Six steps for successful telephone customer service:
Step 1—Greet the caller

Answering a call with a welcome salutation such as, “Good morning … good
afternoon … thank you for calling”, creates a good first impression. The way
that a caller is greeted influences the caller's attitude and behavior. There is a
good chance that customers will be pleasant if their telephone call is answered
in a pleasant manner. Your voice and intonation must communicate a “smile” to
the caller.
Identify the company name followed by your own name; for example, “ABC
Travel, this is John” or “Where to Go Travel. My name is Cathy.”
Lastly, it is important to offer help by asking, “How may I help you?” or “How
can we assist you today?”
It is best to make a greeting sound as natural as possible and to avoid
repeating the same scripted message that sounds mechanical to callers.
Customer calls are business calls. It is important to make the greeting short,
maintaining a level of “professional” friendliness.

Step 2—Determine who Owns the Call

The person who first receives the telephone call is the first “owner” of the call
and must listen to determine whether he/she is the only owner. You must check
and ask questions to confirm whether the caller should be redirected to a
second owner. For example, by asking, “May I tell Maria why you are calling?”
or “Are you calling about a trip you have already booked?” avoids sending the
caller to the wrong internal colleague or department. Most often, it is within the
first minute of the telephone conversation that the first owner of the call learns
whether the calling customer must be transferred to an internal colleague or
department. It is your responsibility to either offer the solutions to meet the
caller's needs or transfer the caller to someone who can.
Write down what the caller says so that important details are captured. Before
releasing the caller to the next call owner, introduce the caller to the new call
owner.
Customers must know that they are being transferred. They must know who
they are being transferred to and why they are being transferred. In addition to
introducing the caller, the first owner must inform the second owner about what
the caller needs and then lets the caller know that the first owner will be leaving
the call and the second call owner will be receiving and continuing the call.
Step 3—Listen to the caller

Customers lose confidence in the call owner and in the company if they have to
repeat the same details or information. This treatment gives customers the
impression that the call owner is not listening. Paying attention to important
details and writing down what the customer says prevents repetition for the
customer. Even when transferring the customer to another call owner,
delivering the customer name, account information, reason for the call, and
required or requested action to the next call owner improves the service level
received by the customer. Apply the same active listening techniques that you
would use for a face to face conversation: use encouraging phrases, express
empathy and paraphrase what the customer says to confirm that you are
paying attention.
Step 4—Summarize the call

Repeat details of the call in your own words. Summarizing the telephone
conversation is a good way to verify your comprehension of the customer's
needs. The action plan or steps that will be taken to meet the caller's need are
also summarized in this step. By the end of the telephone call, the customer
must feel confident that the travel professional has clearly understood the
problem or need and that he/she will be able to help the customer.
Step 5—Promise a solution and deliver it

After creating a friendly and caring impression, followed by good note taking
and confirmation that the customer's needs are understood, it is time to offer
travel products and services that will satisfy the customer's needs. It is
important to remember that the travel customer has other options such as
researching and buying online or from a competitor agency. The customer who
telephones a travel professional for information expects accurate information
and good advice.
It is always best to offer customers a choice of travel products or services
whenever possible. Offering a choice involves the customer in the purchase
process and makes the customer feel in control of the purchase.

Step 6—Close the call

It is at the closing step of a call from a customer that the travel professional
must leave a lasting impression of good service. It is important to thank the
caller and to mention the travel company's name when closing the call.
Sometimes, it is not possible to meet the caller's needs in the initial call. A
follow up call or “call back” is necessary to deliver the service. If the travel
professional promises to call the customer back, it is extremely important to do
so. This is good customer service and part of delivering what is promised. Not
only is it important to promise a call back, but it is also important to advise
when. Customers must be called back on time, even if it is to advise that more
time is needed to solve the customer's needs. Tracking scheduled call-backs
through electronic calendar reminders helps manage timely call-backs.
Communicating with customers on the telephone: Best

practices
The following are best practices for serving customers by telephone. Note that
these practices are almost identical to those applicable to serving customers in
person.
Do Don't
Do eliminate or ignore distractions Don't make assumptions about a customer's needs
Eliminate potentially noisy distractions to focus on the There are risks to making assumptions about what
customer. For example, turn off mobile phones and customers like or dislike based on the customer's
block out office conversations. You are more easily ethnic origin, race, religion and gender. Assumptions
distracted when the customer cannot see what you are may lead a travel agent to offer the wrong products or
doing. Keep your work area clean of flyers, newslet- services, upsetting or disappointing customers. Mak-
ters, memos and any other piece of literature that ing assumptions about customer needs puts the rap-
could potentially attract your reading attention while port with customers at risk. It is better to ask questions
you serve a caller. Turn away the computer screen so than to make assumptions.
you are not tempted to browse the Internet or read an
incoming e-mail.
Do look and act professional Don't think ahead of the conversation
Groom and dress for work as though you serve When you concentrate on what to say next, it reduces
customers face-to-face. Practice good posture such as your ability to listen, missing important information
sitting up straight at your desk and keep your environ- from the customer.
ment organized or tidy. Although you may never sell
travel person-to-person, your personal service on the
telephone is improved when you look and feel pro-
fessional.
Do record what the customer says Don't Interrupt the customer
It is impossible to remember every detail expressed by Don't speak while the customer is speaking. Interrupt-
customers. By writing key words and information that ing a customer who is speaking is not only impolite,
the caller gives, you will reduce the risk of making but it forces the customer to stop talking. If the
assumptions about the caller's needs. Customers may customer stops talking, the travel professional may not
become frustrated if they are asked to repeat the same find out specifically what the customer wants.
information over and over again. It is important that
you are objective in the listening process and avoid
listening only to information you want to hear.
Do focus on the customer Don't use one-word answers

Do Don't
Focus on the customer by consciously listening to Customers who interact with you on the telephone do
more than the customer's words. Try to listen to what not see you. Just as you focus on the customer's
the customer means but is not saying–listen to their words and voice to assess whether the customer
tone of voice, voice volume and pauses for clues about agrees with your offering or advice, the customer is
what the customer thinks about your offer or advice. If judging your professionalism and the quality of your
the customer's voice pitch suddenly is higher, then it service by what you say and how you say it. Answer-
can be a sign that he/she is satisfied with your offer or ing a question such as “Is the hotel located near a train
solution. A pause can be a sign that the customer station?” with a single word “Yes” is likely not enough
doubts your information or advice or that they are information for the customer. The customer may
thinking about a point you made. perceive short one-word answers as impolite or uncar-
ing. It normally takes at least three words to make a
sentence. A better answer that conveys good service
is “Yes, the hotel is walking distance from Central
Station.”
Do control your emotions Don't put the caller on hold repeatedly or for long
periods
Always show politeness and control your emotions, Never place the caller on hold without first asking the
even when the customer is upset. customer's permission. Always explain why you will
place the caller on hold. When the customer under-
stands that you need to leave the call temporarily to
find the best air fare, complete a reservation or
research some information about a product, the cus-
tomer normally does not mind. However, if the wait will
be longer than a minute or so, it is best to end the call
with an agreement to call the customer back within the
hour or the same day.
Table 10.2.3—“Do's and Don'ts” for serving customers on the telephone
10.2.3.2 Communicating by E-mail
Many customers book services by e-mail and some actually prefer e-mail
communication. Just as in face-to-face or telephone communication, every
e-mail that is received by a travel professional is another opportunity to make a
good impression, gain a new customer and provide quality customer service.
When a travel professional sends an e-mail to a customer, it is often difficult to
recall it. E-mail messages can be forwarded to other individuals, so it is
important that the information sent is factual and sent only to the person who
should be receiving it.

Delivering good customer service by e-mail is possible by following standard

procedures. Below are a few guidelines that lead to successful e-mail
communication with customers.
Professional E-mail Messaging

All e-mails that a travel professional sends represent the agency and it is
important that the content of the e-mail follows the agency's guidelines and
image.
• Aim to respond to e-mails within 24 hours after receiving the email.
Responding even sooner will let the customer know that they are important
to you and that you are professional.
• When replying to a message, always include the customer's original
inquiry. This creates an e-mail thread with detailed history of all responses.
• Before sending the e-mail, always check for errors in spelling and
grammar.
• Keep the tone professional yet friendly.
• Make the message clear and to the point.
• Use spacing and bullet points to make it easy for the customer to read.
• Ensure that your full name and position can be seen in the signature
section of the e-mail.
• Make a suggestion to call the customer if the customer requires complex
information; the matter is urgent; or if you realize that the number of e-mails
about the same topic has been increasing.
• Always set the “out of office” alert or automatic replies for your e-mail when
you are away from the office on a business trip or on vacation. This alerts
your customers when you are out of office, on vacation or not available to
respond to e-mail messages. The message should state when you will
return to the office to reply to messages as well as offer an alternative
person to contact when you are away.
• Read the typed e-mail at least one time before sending it.
10.2.3.3 Communicating by Text-Messaging

SMS (Short Message Service, popularly known as text messaging) is
considered a form of electronic text based communication. Some travel
customers may communicate with a travel professional by text-messages
using their mobile phones. Millenial travelers on average may ask to be
contacted by text messaging instead of over the phone. Instances when you
may communicate by text message can include when travelers are away on
their trip and have to contact their travel professional about a room category
that they did not receive or another service that they paid for but they are
unable to use while on their trip. Travel professionals can also begin the initial
communication by sending text-messages to their customers about a travel
alert or changes to itineraries.
Professional Text-Messaging
As in other methods of communication there are guidelines that can help a
travel professional provide quality customer service when communicating by
text messaging.
• Respect the customer's privacy. Request permission to contact the
customer by text messaging before sending a message. For example, the

travel professional can ask if the customer is open to accepting text

messages when arranging the booking.
• Advise the customer how often you will be texting them.
• Use proper spelling as much as possible. Avoid abbreviations, jargon or
symbols used in social messages.
• Start the message by introducing the sender first. It is always good to begin
with your name and the name of the agency.
• Keep in mind that the customer may have to pay to reply to your message.
Key Learning Point

Every customer call is an opportunity to make a sale. Delivering customer
service by telephone involves greeting the customer with a welcome salutation,
recording important information, redirecting the caller to the right department or
colleague, paying careful attention to what the caller says, accurately deter-
mining the caller's needs, promising actions or solutions, delivering the service
and closing the call politely. Equally important is to advise the customer if and
when a call back is scheduled.
When a travel professional sends an e-mail to a customer, messages should
be free from spelling and grammatical errors; be clear and have a friendly and
professional tone. Travel professionals can offer to call the customer if the
query is urgent or requires complex details.
If a travel professional wants to send a text message to a customer, they
should ensure that they get permission first to contact the customer by text
messaging. The message should be kept short and professional. It is important
to avoid abbreviations and jargons used in social texting.
10.2.4 Overcoming Language Barriers
There may be times when the messages through verbal or non-verbal

communication are not understood by the travel professional and the customer
in the same way. Communication then breaks down between sender and
receiver. A travel professional may communicate with customers who may not
speak the same language as they do or the customer may speak with an

accent that is difficult to understand. There are some guidelines below that may
be useful in situations like this:
• Keep a list of all the languages spoken by every employee in the travel
agency. If a travel professional can identify the language of the customer,
they can ask for assistance from another employee.
• Use polite questioning to put the customer on hold while on the telephone
before you try to get help.
• Ask the customer what language he or she speaks.
• Speak slowly and ask the customer to speak slowly as well.
• Offer alternative contact methods that the customer may find easier or is
more comfortable with. A customer may have difficulty speaking over the
phone but may find it easier to communicate in writing by e-mail.
• If there is access to the internet, use translation websites to translate what
the customer is saying.
• Pass calls or customer over to a supervisor or a colleague if you are unable
to understand a customer's accent.
• Use drawings or pictures if that may help the customer understand.
• Use non-verbal body language such as gestures when communicating in
person.
Key Learning Point

Language is not only a medium of communication, but also linked to an
individual's identity. When communicating with customers who have difficulties
expressing themselves or understanding what you are saying due to language
differences, speak slowly. Ask for help or use translation websites to help
overcome the language barrier.
Case Study: A Traveler's Dilemma

Raylan Travel is a full service retail travel and tour company that helps
travelers with all their vacation needs—from flight tickets and hotel accommo-
dations to tours at their destination. The agency provides holiday packages to
many of the world's top destinations.

Julie is a travel counsellor at Raylan Travel. She started working at the agency
two days ago and is still learning a lot from the other agents. Julie recently
graduated from a local college as a travel counsellor. She is eager to make her
first reservation. Julie answered the phone and assisted a few customers so far
but has not yet sold a travel service.
Today, two agents are sick and will not be coming in to work. Ray, the travel
agency owner and manager, asks Julie to assist the customers as much as she
is able to as they will be very busy.
At around 11:15 in the morning, a customer, Marvin Walker walks in to the
agency. He stops in the waiting area of the agency and picks up several
brochures. He continues to read four brochures before Julie notices that he is
there. Julie walks towards Mr. Walker and greets him. As Julie walks over, she
realizes that her pants are stained. She did not check them this morning before
putting them on. She also did not have time to wash her hands before greeting
Mr. Walker as she was unpacking a box of brochures at her desk that made her
hands very dusty. She greets the customer with a firm handshake and a smile.
Julie was tired lifting a few heavy boxes and answering the phones this
morning.
She then asks the customer to sit on one of the chairs by her desk. Julie
introduces herself “Hi, my name is Julie. I am one of the travel counsellors
here. How may I assist you today? I see that you have been reading the
brochures, do you like anything there? Are you looking for an all-inclusive
vacation or to stay at a regular resort?”
Mr. Walker asks Julie to repeat her questions. Then he advises Julie that he
does not know exactly where he wants to go. “I looked on the internet for some
vacation ideas for single travelers but I was not sure where to go. There are so
many options. So I thought I would come in for some more advice and
recommendations. I am so confused. I spent an hour yesterday trying to find
something on my own that I can afford but I do not know if the places I am
thinking of are good for me. Can you help me?”
Julie thinks this is a great opportunity to sell her first reservation but she knows
that another agent, Kevin, specializes in assisting Raylan Travel's customers
who are single travelers. So Julie tells Mr. Walker “I can understand how
frustrating that was for you. Let me introduce you to Kevin. He is great at

helping individual travelers find exciting and fun vacations.” Julie asks Mr.
Walker to wait as she goes over to Kevin to see when he would be able to
speak to Mr. Walker.

1. Julie demonstrated some good qualities of customer service. Identify three
of those qualities.
2. Did Julie demonstrate any form of unprofessional conduct when interacting

with Mr. Walker? Give reasons for your answer.
3. Identify all the questions that Julie asked Mr. Walker. Identify whether each
question is open-ended or close-ended.
4. What could Julie have done better when asking Mr. Walker questions?
5. Why did Mr. Walker go to Raylan Travel?
6. As a travel professional, what can you can say to a customer like

Mr. Walker about using a travel agency rather than booking online?
Write a short response to complete the dialogue below.

Customer: “Why should I come to you when I can buy this online?” Travel
Professional:

Apply Your Learning

1. Pay close attention to the next time a colleague is dealing with a customer.
List all the listening and questioning techniques being used and compare it
to the techniques covered in this unit. Include examples of how each
technique was used. Highlight any techniques not used and determine
whether these have an impact on the end result.
2. Examine the list of listening and questioning techniques and select one
from the list that you do not use on a regular basis. Prepare how to use this
technique and then at your next opportunity, apply it. Once the customer
interaction is over, do a self-assessment to see how well you used this new
technique. Repeat for any unfamiliar techniques until you are able to
incorporate several during customer interactions.
3. Do the same as #1 and 2 above but for telephone communications.
10.2.5 Unit Summary

In this Unit, you explored the communication skills required to effectively
communicate with travel customers. You learned that:
• Excellent customer service begins with effectively listening to your cus-
tomers. Good listening skills help travel professionals understand and
deliver what customers want (Unit 10.2.1).
• Use close-ended questions to obtain facts; and use open-ended questions
to learn about the customer's needs and interests (Unit 10.2.2).
• Much of communication is non-verbal. The non-verbal signals you send
can produce a sense of interest, trust, and desire for connection–or they
can generate disinterest, distrust, and confusion (Unit 10.2.2).
• Listening to customers on the phone is more challenging than listening to
customers who visit face-to-face. The travel professional must pay careful
attention to what the caller says, verify that s/he has understood the
customer correctly and avoid making assumptions. It is also important to let
the caller know that he/she is listening. Text-based messaging should be
professional and to the point but free from informal abbreviations and
spelling errors. It is best to seek permission from the customer before
sending a text message (Unit 10.2.3).
• There may be times when you have to speak to a customer who does not
speak the same language as you do. Speak slowly, find someone who
speaks the same language to interpret for you or if possible use online
translation services to assist the customer (Unit 10.2.4).
Study Check 10.2
1. Which is a proper technique for listening to speakers?

(a) Pay attention to the speaker's words only
(b) Plan what you will say or ask next
(c) Think ahead of the conversation
(d) Repeat what you hear in your own words

2. Which question is an open-ended question?

(a) Are you looking for a single or double hotel room?
(b) What do you mean by a “flexible” air fare?
(c) Does a guided tour of a nature park interest to you?
(d) How many people are traveling in your group?
3. Which is a close-ended question?

(a) What is your budget for this trip?
(b) What is most important to you when you travel?
(c) What is your passport number?
(d) What was your most enjoyable trip?
4. Use of hand gestures in communication is universal and the most common

hand gestures communicate the same message across all cultures. TRUE
or FALSE?
(a) True
(b) False
5. Non-verbal communication includes the tone and rate at which someone

speaks. TRUE or FALSE?
(a) True
(b) False
6. What creates the impression of professionalism and sets expectations for

good customer service?
(a) A firm handshake
(b) A friendly face
(c) Clean grooming
(d) Direct eye contact
7. The basic elements of all telephone greetings are

a , the company and call owner name,
and an offer to help.
(a) call transfer
(b) choice of products
(c) welcome salutation
(d) call back
8. Travel professionals are at a disadvantage on the telephone as they must

depend only on the words spoken by the customer in order to determine
whether they are meeting the customer's needs. TRUE or FALSE?
(a) True
(b) False

9. In an effort to deliver quick service, once you have a good idea of the
customer's destination, you should start to research air fares while the
customer is still explaining. TRUE or FALSE?
(a) True
(b) False
10. Reading incoming e-mails while on the phone with a customer is

acceptable because the customer cannot see you, and multitasking is a
good time-management technique. TRUE or FALSE?
(a) True
(b) False
11. Which of the following statements about e-mail communication is correct?

(a) If you are going to be unavailable for 2 days, you do not need to create
an out of office reply message
(b) Unless an e-mail is marked urgent, responding to high valued
customers within 5 days is appropriate
(c) Always check the grammar, and spelling before sending an e-mail to a
customer
(d) You cannot make a good first impression when you send an e-mail to a
client for the first time
12. Before communicating with the customer by text message, it is best that
travel professionals request permission and preferred method of contact
during their initial meetings or service interaction. TRUE or FALSE?
(a) True
(b) False
13. Using online translation sites and speaking slowly to customers are good
ways to communicate with customers who may speak a different language.
TRUE or FALSE?
(a) True
(b) False

10.3 Customer Service and Technology
• Identify the type of information needed by different travel customers

(Unit 10.3.1).
• Describe preferred communication characteristics (Unit 10.3.1).
• Explain the practical aspects of communication via electronic channels
Objectives • Identify GDS features that automate communication to travel customers
you will be able to: • Describe how social media websites and travel apps are used
(Unit 10.3.4).

Customer service does not stop after a sale is made. After sales advice and
assistance is perceived by travel customers as the most valuable service they
receive. This unit shows how technology can help raise the level of customer
service. You strengthen your relationships with customers when you deliver
convenient, beneficial and timely communication of important information to
traveling customers.
10.3.1 Information Customers Expect

Different types of customers need different types of information before, during,
and after they travel. For example, information that could be very helpful to a
first-time traveler would probably be unnecessary for a more experienced and
frequent traveler. In the same way, information about company travel policy
and maximum spending limits would not be suitable for the business traveler
who is traveling on holiday.
The type of information needed by travel agency customers depends on the
following:
The type of travel

Business and vacation travelers need to be informed of different kinds of
information. Other types of travel which requires a lot of coordination, such as
group travel or meetings and conferences, require specialized or more
information for the traveler.
The stage of travel

The information needed is determined by where the traveler is in the process of
planning and completing their travel. For example, information about available
flight options is necessary while planning the trip. But once travel has begun,
information about flight delays or schedule changes affecting the traveler's
bookings is critical information the customer must have.
Unit 10.3: Customer Service and Technology 767

The role of the customer

For agencies specializing in vacation travel, the customer is always the
traveler. For business or corporate travel agencies, however, the customer is
more often a company representative who contacts the agency to arrange
travel for the company's employees. In this case, the role of each customer
‘representative’ will determine the type and scope of information that they
need. The information company travel arrangers need, for instance, will be very
different than those of the traveling employee.
There are common communication standards desired by most travel agency

customers. With the possible exception of vacationers, most travelers do not
want to read a large amount of detailed information about their upcoming trip.
Instead, most travelers expect information that is:
• Concise–brief but sufficient information. For example, giving the customer
his flight number and departure time without advising a departure terminal
number may cause the customer to lose valuable time
• Relevant–Pertinent information and notifications that directly affect the
travelers. They do not want to be notified about a potential departure delay
unless they are traveling on the delayed flight
• Beneficial–Brings added convenience to the traveler, or prevents incon-
venience. For example, providing advice about the hotel-airport shuttle bus
service will be helpful and appreciated
• Timely–Useful and well-timed information. Advising a customer of a
cancelled flight departure after arriving at the airport is not helpful,
especially if the customer must return home to travel the next day
Customers know what information they need and they want to be informed
instantly. Smartphones, tablets, and other mobile devices, enable customers to
receive timely, relevant and beneficial travel advice.

Key Learning Point

Different types of travel customers need different information and expect to
receive concise, relevant, beneficial and timely information.
10.3.2 Available Modes of Communication

There are many ways to stay in touch with customers who are traveling. In
addition to communicating by telephone, travelers receive or search for
information through electronic channels such as e-mail and SMS messaging.
E-mail
E-mail is a common form of electronic communication used by travel agents to
forward documents and advice to agency customers. Travel agents e-mail a
variety of information to their travel customers including detailed itinerary
confirmations, destination travel tips and en-route travel alerts for flight delays,
trip interruptions and schedule changes. Such e-mail communications can
include an unlimited number of plain text plus relevant graphics, document
attachments and embedded Internet links that can be helpful to the customer.
E-mail may not be the most effective communication method though to send an
urgent message to a traveling customer, especially if the message is about an
important change to their travel arrangements or about their safety.
Short Message Service Texting

Many companies in the travel industry use the instant text-based messaging
service Short Message Service (SMS) to communicate with their customers.
Travel suppliers, such as airlines and hotels, and travel agencies program their
computers to send SMS communications to their customers' mobile
telephones for things such as weather alerts or flight cancellations.
Through SMS messaging, a travel agent can:
• communicate important and time-sensitive alerts or reminders to their
traveling customers e.g. alerts to customers on changes to their itinerary,
while they are traveling
• send loyalty bonuses to clients so that they come back to them to book
another trip
• promote last minute deals
• send notices on invoices, account information, overdue payments
• send confirmations on rental cars, hotel room selections
As text messages are faster to receive and read, SMS readership is higher
than readership in most other forms of communication. For all the reasons
mentioned here, SMS texting can be an ideal medium for urgent, time-
sensitive, messages to travelers, such as information on schedule changes. It
is important when protecting the customer's privacy rights though to ensure
that the travel agent allows the customer to “opt in” (this is where the customer
has given permission to the travel agency to contact them by SMS texting with
marketing or important messages). By using a method of communication that
instantly lets customers know of last minute changes, allows them to make the
necessary plans to adjust, therefore saving them lost time and money. This
improves customer satisfaction as you are helping them with their travel plans.

Key Learning Point

In addition to the telephone call, travelers can receive information electronical-
ly. E-mail is commonly used to communicate reservation details and advice
about an upcoming trip or the trip destination. SMS messaging is another way
to stay in touch with the customer when urgent or time-sensitive information
must be communicated instantly.
10.3.3 Automating Customer Communication

Staying connected with all travel customers before, during and after they travel
to inform them of potential changes to their travel arrangements can be
challenging. Delivering timely and beneficial advice is critical. Customers
measure service by how quickly, accurately and effectively a travel agent
communicates changes to travel arrangements. Imagine trying to monitor
every reservation throughout its life so that each flight cancellation, schedule
change and other unexpected problem is notified to affected customers?
Imagine performing this service manually, without the help of technology?
Most travel agencies use automation to communicate standard customer
service information such as flight confirmations and other important notifi-
cations. Automation monitors all reservations and incoming notifications about
reservations made by the agency from suppliers such as airlines and hotels.
Without technology and automation, the agent would have to monitor all their
reservations and spend more time updating and communicating existing
reservations instead of chasing new sales. The only way to guarantee that all
agency customers receive high attention and service is by automating some
common agent-to-customer communications.
Most business travel agencies, and many vacation agencies, use third party-
provided software applications and services to automate many manual
processes that would otherwise have to be performed by travel agent staff. But
the most common tool used by agents to automate communication to agency
customers is the GDS system.
GDS-Message Delivery Tools

Most travel agents use a Global Distribution System (GDS) system as their
main reservation tool. The GDS system conveniently works from the agent's
computer. The automated customer communication capabilities of GDS
systems are the easiest tools available to travel agencies. When a reservation
is completed in the GDS system, an e-mail notification is automatically
delivered to the customer with the reservation information.
GDS Agent-Initiated Information Delivery

GDSs can automatically forward reservation details to the travel customer via
e-mail. Once a reservation is completed, the agent uses a simple GDS
command to generate a standard e-mail communication to the travel customer.
The e-mail communication includes a link to a website maintained by the GDS
provider. When the customer receives the e-mail notification and opens the
link, he or she can see the reservation made by the travel agent. The
reservation information displayed is customer-friendly and sometimes is
delivered in a number of languages. Customers are not able to change any of
the reservations. These GDS prompted communications are in standard format
designed to be customer friendly. They are sometimes delivered in the

customer's own language. Through the link, the customer can access the
electronic ticket, the itinerary, the invoice and highly relevant travel information
about his destinations such as:
• weather forecasts
• information or guides
• maps with driving directions and proximity information
In addition, the GDS site provides these details in real time and includes
access to notifications should there be a flight delay or a change of schedule.
There are also mobile applications that can be integrated with GDSs so that
customers can receive information in a few seconds.
Figure 10.3.1—Example of automated GDS reservation information received by

agency customers
GDS Scripts
Using the GDS system to make and update reservations (PNRs) can be
challenging because it requires some memorization of coded commands. GDS
users must remember to include optional elements such as frequent flyer
numbers or special dietary meal requests that can be important or beneficial to
the customer. GDS scripts simplify the reservation creation process with
screen prompts that guide users in the reservation creation process.
GDS scripts help users complete PNR fields with information through a series
of interactive screens. They ensure that the agent has remembered to include
all mandatory and optional information about the customer. The plain language
screen prompts on the agent's desktop computer interface with the GDS
terminal. GDS Scripts ensure quicker and more consistent PNR completion,

improving reservation accuracy. GDS scripts are designed by the travel agency
and its IT department, or outsourced to a third party software company.
Some are designed for functions that are not available by the reservation
system itself. For example, a GDS script can book insurance. The script
displays a list of available insurance products, prompts you to enter the
departure and return dates of the trip, the destination, the passenger age, etc.
When the user completes all script requirements, the GDS script relays the
information to the selected insurance company to book the insurance and
returns with a confirmation number for the policy.
Other GDS scripts simply reduce the need to memorize complicated system
formats. Scripts can create an accounting line for a package purchased from a
tour operator, enter the secure data information on a PNR, GK a hotel or car
segment booked directly with a supplier, etc. The ultimate purpose of the
scripts is to ensure that all information for the booking is contained within the
PNR so that when a reservation is created, it is complete and standard. Some
agencies use scripts as reminders to “complete” the PNR. For example,
reminders to customers to review the reservation for accuracy, reminding
customers of necessary travel documents or advising the baggage allowance
for each carrier used. Agencies also program their scripts to print the agency
name or logo on ticket receipts and printable itinerary records.
Figure 10.3.2—Example of a GDS script
All GDS scripts support e-mailing of itineraries and other notifications, and
some directly support SMS texting as well. GDS scripts are used to formulate
and instantly deliver e-mail notifications of schedule changes to affected
travelers. Scripts can automate the addition of large amounts of text for
insertion into itineraries, such as destination travel tips, embassy locations,
local emergency contact information, etc. Scripts include valuable advice for
the customer, such as messages to remind customers to review the itinerary
for accuracy, advice about required travel documents, maximum baggage
allowance for each carrier booked, etc.

GDS Profiles
All GDS systems can record and store information about agency customers,
especially corporate customers, in GDS profile databases. Such customer
information includes customer address, credit cards used, telephone numbers,
frequent flyer numbers, hotel and car membership numbers, seat preferences,
special meal requests etc. All or some of the information contained in these
profiles can then be transferred to a new reservation. Like the GDS Script
feature, GDS Profiles save the agent time when serving repeat customers
because there is no need ask for and record the same customer information
each time a reservation is made. GDS Profiles improve PNR accuracy as the
correct and complete customer information stored in GDS Profiles transfer to
the GDS PNR during the reservation creation process. SMS and e-mail
address information is routinely stored in GDS Profiles.
Once implemented by the agency owner, travel agents are able to simply
reserve the bookings requested by the customer, retrieve and move the
traveler's profile into the booking record, and the automation should be able to
finish the reservation documentation, prepare and deliver a confirmation e-mail
to the traveler, and continue to monitor each reservation throughout the life of
the PNR to respond appropriately with messages to the traveler in case of flight
cancellations or schedule changes, etc.
Figure 10.3.3—Example of a GDS Profile
Key Learning Point

Travel professionals use GDS script and profile tools to improve the accuracy
and completion of reservations and to automate the delivery of relevant
information and notifications to traveling customers.
10.3.4 Embracing Technology to Serve Travel

Customers
Travelers use technology to stay in touch with work and home. Agents can
explore new technologies to communicate with their traveling customers so
they can continue to deliver good customer service after the sale.

10.3.4.1 Social Media Websites

Use Social Media Sites to Provide Exceptional Customer
Service
The travel industry is based on how satisfied customers are. This can easily be
gauged through social Media websites which allow travelers to show their level
of satisfaction at a click of a button. For travel agents, social media allows you
to share information and interact directly with customers. This can help to
satisfy and exceed their expectations.
Social media websites together have trillions of page views per month. Social
network profile pages are important tools for thousands of enthusiastic users to
stay connected with their network of associates, friends and family. Many
travelers post reviews of their holidays on social media. Posting on social
network websites enables users to share their thoughts and opinions with large
numbers of people at one time. Those who receive posts can easily respond
and ‘re-post’ or communicate the original message with comments to their
network of friends. Because of this, good or bad messages can quickly spread
to huge numbers of people. When a message is received by many people, and
in turn, re-posted to many more social networks, the message is said to be
‘going viral’. The viral aspect of social networking sites makes them very
important to all types of businesses.
Key Learning Point

The most cost effective way to instantly share information with large numbers
of people is by posting comments, information or news on social media sites.
For businesses like travel agencies, the viral effect of communicating through
social media can greatly benefit or damage their reputation, depending on the
opinions and comments their customers freely post. Maintaining excellent
customer service standards is critical for travel businesses that care what their
customers say about their service on social media sites.
“Listening” to Social Networks

Most people are inclined to share something that makes them happy, sad, or
mad. Social network users post these personal comments to share with
friends, family or business associates. Comments posted by users can benefit
or damage the image of companies or brands if they become the subject of
posts on social media websites.
Many large companies systematically monitor online discussion postings
(sometimes called “social chatter”) on social media sites, looking for references
to their company or brand name. When appropriate or necessary, companies
join the social discussion to reverse or stop negative postings about their
products or services, or to encourage and spread positive postings.
A customer who posts a negative comment about a business or service can
damage the business. One example of a social media posting that damaged
business image and ultimately created the impression of poor customer service
was a video created and posted by an airline passenger. The passenger's
guitar was broken by the airline's baggage handlers. The posting was an
overnight sensation and was viewed by over ten million potential customers of
the airline. The attention urged the airline to publicly respond to the video, and
launch a corporate-wide campaign to improve its baggage handling service.

Some businesses also listen for the names of competing products and
services, to better understand consumer opinions of competitive products.
‘Listening’ to social networks is an important way for consumer-oriented
businesses to:
• Better understand the way customers view their product or service and
competitors
• Improve their products or services to meet customer needs
• Identify and correct service problems more quickly
• Prevent unhappy customers from leaving
Key Learning Point

By monitoring online discussions or “chatter” on social media sites, an agency
can gather important market intelligence. They can learn what customers think
about the products they sell and which other travel products consumers prefer.
But equally important is listening for complaints about the agency's customer
service delivery as well as complaints about their suppliers. Listening to social
chatter provides an opportunity to correct service errors immediately and turn
unhappy customers into satisfied ones.
Larger companies monitor public social media postings, however as a local
travel agent, you can use social media networks to:
• build and maintain relationships with existing customers
• improve the level of customer service
• spread the word about good service
Use Social Networks to Reach Out to Consumers, Improve

Service or Promote Good Service
Social networking sites make it easy for individuals to interact with one another.
Most sites, like Facebook and Twitter, allow businesses to create profile pages
for their products and services. A business profile page can search network
sites for people by their interests and social media site group membership and
post news and product offerings to those profiles.
Users receive posted notifications or alerts on their social network sites through
their mobile phones in real-time. It is important to note that communicating
urgent or critical information to customers though social network sites would
not be effective if the customer is not accessing his or her profile.
Be sure to monitor your business profile page regularly and often. It's important
to read customer postings and participate in online discussions about topics
that relate to your service or business. Customers communicate their travel
experiences and needs through their postings. It is a way to determine if your
customer service level is below or above their expectations. If customers are
communicating that the service level is poor, it is an opportunity to take
immediate corrective actions so that you can keep existing customers and
prevent damage to your professional reputation. But the objective should be to
deliver service excellence so that the only postings read on social sites
represent high customer ratings. Always remember that social media reviews
have a large influence on a customer's travel plans and choice of travel agent.
Many travelers believe what their friends and family have to say on social
media about your service.

Key Learning Point

Social network websites can lead to new sales and business opportunities.
They can identify an urgent need to solve a customer complaint. However, they
may not be the best channel to communicate alerts and important notifications
to traveling customers.
Source: commons.wikimedia.org/wiki/File:Socialmedia-pm.png
Popular Social Media Sites for Travel Agencies

Allowing customers currently traveling to include their comments on a travel
agent's social media site allows the travel agent to know right away what is
happening. This has a number of benfits that allow the travel agent to:
• make any changes needed if it is negative comment.
• know what the customer wants.
• send the message to all viewers of the great experience the customer had
if it is a positive comment.
An agent can improve customer service delivery immediately and the agency
will be ahead of competitors who do not use social media.
In order for social networking sites to be useful to the travel agency. It is
important that the travel professional engages the customers on social media
site regularly. This means that the agency must find ways to motivate the
customer to leave comments on the site or interact through the media.
There are hundreds of social networking sites worldwide. There are a few
popular sites that travel agents and customers commonly use around the
world. You will see examples of how a travel professional can use five of the
most popular sites in the next section.
Twitter
Twitter enables users to post and read messages called tweets on their own or
other user profiles.
Through Twitter travel agents can communicate their products, services and
news with short messages posted to followers. The messages appear instantly
on followers' home or profile pages. Tweet messages link followers to the travel
agent's website, photos or videos where followers can spend more time.
Twitter tweets can link followers to the business Facebook profile.

Facebook
Travel agencies use Facebook to promote their products and services.
Facebook pages and profiles tend to be more detailed than Twitter, with longer
text descriptions of products and services, including videos and photos.
Destination videos on a corporate Facebook Page can effectively promote an
agency's travel specialties, featuring niche destinations or hotel properties.
Facebook promotes a product in real-time and can increase the number of
customers that use an agency's services. Facebook pages include a blogging
feature where the public, and especially agency customers, can display
testimonials and comments for all to read. Facebook can link back to the
product's website and Twitter page. It can instantly send out reminders to
followers or members. To better engage the customer, travel agents should
aim to update the page with several posts per week.
LinkedIn
LinkedIn is an ideal social networking site for travel agents to interact with
business accounts and customers. As a professional business-to-business
site, the travel agent can also use LinkedIn to connect with other vendors and
managers of resorts, tours or other services directly to ensure that their
customer's needs are met. Travel agents are also encouraged to update the
site with posts weekly to maintain interest and encourage other business
customers to respond. It allows business or corporate travelers to include
comments about the services they receive from you and to gage customer
satisfaction. It is a great “word-of-mouth tool” as the users of LinkedIn are
professionals who use the site for serious business engagements.
Pinterest
Much of the sales in travel is about selling dreams and offering a visual image
for customers to see themselves at a destination or on a trip. Travel agents can
create “pinboards” of images and link these pinboards also to other social
networking sites such as Facebook. Travel agents can post pictures of travel
offerings on Pinterest. They can also “like” their customer's “pins” related to
their travel experience. This shows their customers they are interested in what
they do, and appreciate them. An additional way to show you care and value
your customer is to comment on your customer's pins as well.
Instagram
This site allows travel agents to share photos and link them to other social
networks. Much like Pinterest, “liking” and commenting on the customer's
images shows the customer that you appreciate them.

10.3.4.2 Mobile Technology in Travel
Mobile technology has changed the way people travel

and travel professionals have to adapt to this. Almost
all travelers now bring their mobile device with them
on their trips. Travel professionals have the oppor-
tunity to connect with their customers during their trip.
Smartphones and tablets access software appli-
cations or “apps”. There are millions of travel-related
apps for mobile devices. The most effective travel
apps are navigation aids based on GPS (Global
Positioning System) services.
GPS apps helps travelers by showing their location or proximity to places,

attractions or facilities, such as hotel, restaurant or parking lots. These apps
provide directions and guide travelers to local destinations.
By researching the most useful travel apps available and informing customers
about them, you help increase the services enjoyed by your travel customers.
Consider using social networking to recommend useful downloadable travel
apps. For example there are apps provided by airports that provide information
such as estimated wait times at security checkpoints, availability of airport
parking, or the estimated time it will take to reach their departure gate.
When looking for appropriate travel applications, it is better to focus on specific
apps which are easier to describe and promote online via e-mail and social
media networking tools.
Most travelers worry about their safety when traveling. Hence, traveler safety,
should be a travel professional’s area of expertise. There are many personal
safety apps available for all types of mobile devices which are simple to use
and give travelers a degree of security. Travel safety apps are generally simple
to download and use and serve clear purposes. Most emergency safety apps
work to:
• Alert emergency contacts (relatives or friends) when the traveler has been
inactive and not used his/her portable device for an extended period of
time
• Alert the local police when the traveler faces an unsafe situation
• Alert the traveler on local weather hazards and other natural disasters
• Store the traveler’s health conditions and a medical record for access by
medical emergency responders anywhere/anytime
• Record the traveler’s locations and activities
• Map the traveler to the nearest hospital or clinic
• Provide helpful remedies and advice for the most common illnesses
experienced by travelers
Some safety travel apps only work in certain markets. Different markets may
offer access to different travel safety apps. The travel professional must
continuously remain up-to-date on travel safety apps and research them
regularly on the Internet or in travel magazines.

Travel agencies can also have a mobile application created which can be used
to enhance the client experience and deliver exceptional customer service.
Many travelers will book their activities and additional services while they are
traveling. Travel professionals have the opportunity to increase their revenue
as well as serve their customers while they are on their trip by providing
services such as tour tickets and travel insurance through their agency's
application. The application can also serve as a means to view in one place a
customer's invoice, ticket, maps, flight details, trip sharing photos, destination
information and other travel related documents. (www.mtrip.com)
There is an app available for every common traveler need, from translation, to
finding budget hotels, to reading about destinations, attractions and more.
If the travel professional does his homework and recommends helpful travel
apps, customers will appreciate the extra service. Travelers that follow and like
their suggestions will likely communicate them to others along with their praise
of their travel agent. Remember though that some apps are only available for
specific types of phones and countries. So be sure to check on availability
before making a recommendation.
10.3.4.3 Technology During the Customer's Travel

Experience
Travel professionals need to provide information to make their customer's
travel experiences more comfortable and enjoyable. As travel professionals,
being up to date on available technology is one good way to show you care
about your passengers and want to improve their travel experiences.
Online check-in is now widely used. Passengers can choose seats and print
out boarding passes from the comfort of their home or office, by-passing long
queues at the check-in counter. They only need to drop off their luggage at the
designated area at the airport. Those traveling light can go straight to the
security check point. If a customer happens to be running late, online check-in
using a mobile device can alleviate the usual stress. A travel agent can offer
these important tips to their clients for a more convenient and hassle-free
experience.
Another example of technology that can assist customers is traceable luggage.
Millions of travelers' bags are lost each year. Some travelers are prepared to
pay additional costs to purchase digital devices like traceable luggage tags that
track their luggage wherever it is around the world. There are different types of

traceable luggage tags. One requires the traveler to register the serial number
of the tag with the company using their website or the customer's mobile
phone. Someone who finds the customer's luggage will call the number on the
tag and the manufacturer will ship the luggage to the customer usually at no
cost. Other tags have GPS technology and the customer can track the location
of the bag using the manufacturer's mobile app.
Mobile apps such as the Fly Delta App have helped some customers trace their
luggage. When the customer checks their luggage, travelers can use the app to
trace their luggage the same way that one can trace a package sent by a
courier.
Below is an example of an RFID (Radio Frequency Identification) baggage
label used by many airlines that has encoded information to facilitate baggage
tagging.
Key Learning Point

Travel agents raise their service value when they offer practical recommen-
dations to their travel customers. The agent can deliver a high level of
customer service by being tech savvy and proficient in the use modern
applications. Once they are up to speed, they can then recommend the suitable
technology and mobile apps to their customers. This is going above and
beyond their customer service delivery.

Study Check 10.3
1. What information about a hotel property would be least important to a

business traveler?
(a) That the hotel requires a credit card to hold the room
(b) That Wi-Fi connectivity is available in the hotel room
(c) That the hotel allows pets such as dogs and cats
(d) That a safe is available to store valuables
2. Which type of information is the best example of communicating infor-

mation that can prevent inconvenience for the travel customer?
(a) A description of tour package options
(b) Airline rules for check-in and carry-on luggage
(c) Information about a destination's attractions
(d) Train departure times and stations
3. Communicating concise information is about giving

information.
(a) no
(b) little
(c) a lot of
(d) just enough
For questions 4 to 8, select the best method of communication for

each scenario.
4. The agent communicates that the reserved hotel has closed its swimming
pool for repairs and all hotel guests have been moved to another hotel.
(a) E-mail
(b) Text messaging
5. The agent communicates a new return reservation flight number and

departure time to a business traveler whose meeting ended earlier than
planned.
(a) E-mail
(b) Text messaging

6. The agent advises the link to a hotel's map location with driving instructions
on how to get there.
(a) E-mail
(b) Text messaging
7. The agent advises a group organizer of the next destination's tour itinerary.
(a) E-mail
(b) Text messaging
8. The agent sends a cruise ship deck plan to the customer in order to locate
the main dining room.
(a) E-mail
(b) Text messaging
9. What is a benefit of GDS Script and Profile features?

(a) They enable travel customers to change their reservations
(b) They guarantee reservation accuracy and completion
(c) They are examples of computer hardware products
(d) They are used by the travel agency accounting staff
10. What do GDS Script prompts do?

(a) They communicate reservation information to customers
(b) They record and store customer information in a database
(c) They replace the use of GDS commands during PNR creation
(d) They generate e-mail and SMS messages to the travel customer
11. GDS Profiles customer mobile tele-

phone numbers and e-mail addresses.
(a) record and store
(b) prompt for
(c) send messages to
12. Setting up a travel agency social media page is useful only for marketing
the agency's products and services. TRUE or FALSE?
(a) True
(b) False

13. Who decides which visitors can access a social website profile page on
Twitter?
(a) The owner of the profile page
(b) The owner of the Twitter website
(c) The visitor to the Twitter website
(d) The visitor to the profile page
14. Social chatter is a term which refers to

on social sites.
(a) customer complaints
(b) viruses
(c) competition
(d) discussions
15. Travelers can check in online to all flights from anywhere in the world.
TRUE or FALSE?
(a) True
(b) False
16. Which social media site would best allow the travel professional to connect
with business travelers?
(a) Facebook
(b) Instagram
(c) LinkedIn
(d) Pinterest
17. Which service provides data to navigational travel apps?

(a) Facebook
(b) GPS
(c) Smartphone
(d) Chatter
18. Recommending a simple travel app to a travel customer raises the

agency's .
(a) app sales
(b) service level
(c) SMS messages
(d) GDS profile

10.3.5 Unit Summary

Technology improves communication with travel customers. This enhances the
travel professional's service level which is ultiimately appreciated by cus-
tomers. This Module discussed:
• different types of customers who need various types of information that is
concise, relevant to their travel experience, convenient and timely.
(Unit 10.3.1).
• e-mail and SMS messaging as common forms of communication
(Unit 10.3.2).
• how travel professions rely on Global Distribution Systems to send
automated travel messages and reminders to customers (Unit 10.3.3).
• social media channels as effective ways to monitor customer service
satisfaction levels and to take remedial actions to improve customer
service (Unit 10.3.4).
• simple-to-use travel apps and helpful technology that saves the customer
valuable time and money (Unit 10.3.4).

10.4 Winning Customer Loyalty
• List and explain four steps of delivering exceptional customer service

(Unit 10.4.1).
• Describe the benefits of providing follow-up service and support
(Unit 10.4.2).
Unit Learning • Identify how travel professionals behave as advocates for customers
By completing this Unit, • Describe how travel professionals can maintain loyal customers

Customers who are loyal will return to purchase further services and they will
tell others about the exceptional service they received. Loyal customers
continuously believe that the travel products and services an agency provides
are the best. To keep customers loyal, a travel agency must be attentive and
responsive to individual customer needs. Otherwise, customers will take their
business elsewhere–remember that customers always have a choice. Their
business goes to the agency that makes them feel welcome, valued and well
served! Customers who feel well taken care of remain loyal to their travel
professional.
In the last Unit, you learned about the basic communication skills that assist
you to interact with customers. In this Unit, you will build on these skills to
discover how to win and build customer loyalty.
10.4.1 Four Steps in Delivering Exceptional Service

One way to win customer loyalty is to deliver exceptional service. Exceptional
service is where you exceed customer expectations and demonstrate that you
care about them. This makes customers feels as though they cannot go
anywhere else to meet their needs. You will study a simple model involving four
basic steps. Following these steps will enable you to respond to customers in a
professional way that will bring them back for your services over and over
again.
To deliver exceptional service, a travel professional should:
1. Acknowledge the customer.
2. Determine the needs of the customer.
3. Identify a solution.
4. Deliver the service.
Unit 10.4: Winning Customer Loyalty 785

Let's briefly examine each of these steps in turn.

Step 1—Acknowledge the Customer

Everyone wants to get noticed. Customers do not like to be ignored, whether
they are shopping in person, by telephone or by e-mail. Treat them like a
valued partner. Address customers by name and tell them your name at the
very beginning of your interaction. A new customer generally decides whether
they want to deal with a travel professional within the first few minutes of their
interaction. How you greet and talk to the customer is a decisive factor in
whether they will do business with you. With first-time customers, there is no
second chance to make a good first impression.
10.4.1.1 Greet the Customer

What is said to a customer in the first thirty seconds, and the way it is said, will
set the mood for conversation and service expectations. It is important to
provide the customer your full attention and stop other activities. Multi-tasking
while greeting a customer will not create customer confidence. The following
are some recommendations for the service provider:
• Customers with Appointments
Quickly acknowledge a customer's presence; do not let the customer wait
without greeting him/her. If the customer has an appointment with the
travel professional, then the customer must be served on time. It is
important to respect the customer's time.
• Customers without Appointments
Other customers may visit or telephone without an appointment. It is
important to acknowledge these walk-in or phone-in customers immedi-
ately. Without an appointment, it may not be possible to provide immediate
full service in busy travel seasons. Customers will want to know “when”
they'll receive service. Acknowledge the customer and advise a realistic
time in which you or a colleague will serve the customer. It is then
important to follow through to ensure the customer is seen or contacted
before or at the same time that you have advised them.
Customer-centric travel agencies may publish a service standard that is
formally displayed or communicated publicly. This helps shape customer
expectations and reduces the number of customer complaints. The travel
agency and its travel professionals must adhere to the policy.
The following are effective questions to make the customer feel important when
there is no service standard and waiting is required:
“We are serving other customers right now, but would you like to schedule an
appointment for later today or another day?”
“Would you like to e-mail me your questions? I will contact you as soon as I
receive it and telephone you within 24 hours. Please accept my business card.”
Key Learning Point

Customers report that failing to acknowledge their presence is very frustrating.
It is important to provide the customer your full attention and stop any other
activities.

Step 2—Determine the Customer's Needs

Skillful travel professionals determine customer needs by listening to them and
by asking questions. Listening to customers and asking them relevant and well
thought-out questions assures the customer that their needs are important and
that they will be served.
Use the listening and questioning techniques you learned in Unit 10.2,
“Communicating with Customers”. Listening to the customer helps the travel
professional collect important information that will identify what is important to
the customer so that a need or problem is correctly resolved.
Take good notes and verify that you have understood the customer's needs.
The customer appreciates it when the travel professional says, “Your business
is very important to me and I want to be absolutely sure that I clearly
understand your needs. I recorded some notes as you were explaining the
situation. Let's review my notes and confirm that what I have written is correct.”
Travel professionals who spend time summarizing the information collected
from the customer actually save time by avoiding repetition, misunderstandings
and delivering the wrong product or service. Having the correct information and
validating the customer's needs will lead to an effective plan of action and a
satisfied customer.
Step 3—Identify the Solution

Now it is time to offer travel products and services that will satisfy the
customer's needs. Offering a product or service may seem easy to do. Offering
the best solution that will most effectively respond to the customers' needs
requires the following process:
1. Explain what is available; offer a choice of available travel products or
services.
2. Explain the features of each product or service offered. Brochures are
good travel agency tools that help explain product features. Product
features describe what is included in the product. For example, features of
a luxury tour product may include direct air transportation, five-star hotel
accommodations, or a personal tour guide.
3. Highlight and sell product benefits that represent what is important to the
customer. Customers want to buy value, not price alone. For example, the
travel professional can identify travel product benefits as “conveniences”
(example: save travel time) or “extras” that are free-of-charge (example:
free meals for children at a resort or a free cruise cabin upgrade).
Step 4—Deliver the Service

It is essential to deliver what is promised. Customers measure the travel
professional's credibility by the actions they see. The travel professional has
the opportunity of gaining or losing credibility with each promise made to a
customer. A travel agency will lose customers who do not receive the products,
services and treatment that are promised. One of the quickest ways to lose the
customer's confidence is to not follow-through, or to be late in delivering a
service without notifying the customer in advance.

Key Learning Point

Delivering what was promised on time is important in building positive
relationships with customers.
Returning phone calls, sending information, following up on details are all part
of promises the travel professional is obliged to keep. If the travel professional
promises to call–then he/she must call, even if there is no news to report.
Customers should not think that they have been forgotten or that their business
is not important enough to stay in contact with them.
Surprise the customer from the time to time. When it is possible to provide an
extra level of service, do so. Whether it's an unexpected complimentary
destination guidebook or passport and visa application forms, these special
gestures go a long way toward creating customer loyalty and winning new
customers. Offering upgrades and membership to frequent traveler clubs are
good ways to provide extra service to customers. Delivering more than what
the customer expects raises the customer service level.
Any opportunity to demonstrate detailed knowledge of destinations enhances
the customer's trust in the travel professional's services. Travel professionals
who enjoy supporting customers with extra value maintain a database of
customer information and preferences. The travel professional who knows
customers' preferences offers better service. For example, knowing that a
customer will only accept first class hotel accommodations will facilitate call
processing and make the customer feel important and valued.
Key Learning Point

Travel professionals can deliver exceptional service by: acknowledging cus-
tomers, determining their needs, identifying the services to be offered, and
providing after sales service.
10.4.2 Provide After Sales Service and Support

The customer service process does not end when a sale is made. When a
travel professional follows up with a customer who has completed their travel,
the customer feels that the travel professional cares about their business. You
can contact the customer, by e-mail or telephone call to measure the
customer's satisfaction with the service and product experienced.
Some benefits from performing follow up (or after sales) service includes:
• Relationship building
Following up with customers is good customer service that builds long-
lasting relationships with customers. Satisfied customers become loyal
customers.
• Repeat sales
Following up with customers after a sale allows the travel agency to cross-
sell and offer different or new products and services. When customers are
pleased by a friendly after sales call, the customer is open to buying again.
• Referrals
Once the customer is satisfied with the travel professional's services, there
is an opportunity for customers to refer the agency to their friends and
relatives. Some travel agencies offer referral incentives such as gift cards
to customers who refer other potential travelers. This will grow the travel
agency's business and can potentially increase revenue.

It may be difficult to find enough time to follow up with every customer who
returns from a trip. As an important step in the customer service and sales
process, travel professionals must manage their time to include after sales
customer service, perhaps during quieter periods of the day or week. Every
travel professional should plan to follow up with one customer daily. This will
ensure the service is evenly offered without interfering with the busy demands
of serving other customers. It is worth reserving a few minutes a day to
maintain happy customers.
Following up by e-mail is not quite as personal as a telephone call, but provides
an efficient solution which is better than not offering any after sales service.
Creating a generic e-mail communication template that can be personalized by
inserting customer information can provide a quick solution to following up with
customers.
Like professionals in other fields, travel agents do make mistakes. It might be
as simple as forgetting to request a special meal or advising late hotel check-in
time. Performing after sales customer service runs the risk that the customer
will deliver some bad news. Every travel professional must be prepared to learn
through an after sales call that he/she may discover that he/she made an error.
It is best to admit the error and deal with a customer complaint as soon as
possible. It is an opportunity to sincerely say “I'm sorry” to the customer which
is appreciated.
Key Learning Point

Travel professionals who consistently perform after sales customer service
benefit by securing customer loyalty and by developing new sales opportunities
with repeat business and customer referrals.
10.4.3 Protect Customer Interests

Travel professionals must be a valuable resource for their customers, saving
them time, energy and worry. Customers appreciate it when travel pro-
fessionals act as their “advocates” or supporters. Here are some examples of
how travel professionals can be good advocates for their customers:
• Be honest
Some travel agencies try to direct as many customers as possible to a
preferred supplier's products or services. These travel agents highlight
features and benefits of preferred travel products or suppliers. Customers
want advice on both the benefits and the disadvantages of any product or
service. They expect their agent to recommend a product that meets their
needs with the most benefits.
• Provide real value
Sometimes a travel customer hesitates to buy because of price. The
customer does not see the added value in a product that is priced above
similar products.
In order to prove added value, the travel professional should encourage the
customer to compare pricing of similar products on the Internet or with
other travel agencies. The travel professional must be able to explain in
detail the true reason for the difference in product price or offering and
prove the added value.
• Protect the customer's investment
Protecting the customer's financial investment in a travel purchase is
important. Customers do not want to lose the money that they have saved

to pay for a vacation. It is good practice to know which travel suppliers offer
a full credit or refund if a last-minute cancellation is necessary. Customers
should be advised of such suppliers and of the advantage they offer in
allowing changes or cancellation at no cost, even if these are not preferred
suppliers.
Payment by credit card should be recommended. In many markets, paying for
travel purchases by credit card protects the traveler without having to spend
more. Many credit card companies include some travel insurance coverage for
risks such as medical care, lost baggage, trip cancellation or credit the
customer's purchase in case the airline carrier goes out-of-business.
Travel professionals can assess potential risks associated with the customer's
journey and recommend travel insurance that will protect the customer's
before, during and after travel. Selling travel insurance to agency customers
can be challenging. But an insured customer who is protected by insurance
coverage will be a happy customer if he/she needs medical attention or has
lost baggage while traveling.
When travel professionals act as their customers' advocates, they secure
customer loyalty and attract new customers.
Key Learning Point

Supporting and serving the needs of each customer is more important than
supporting preferred travel partners or suppliers.
10.4.4 Maintaining Customer Loyalty

You learned that customers like to be noticed. Customers need to know that
they are important and that you value their business. When travel professionals
find ways to value customers, they will find that winning and maintaining loyalty
will become easier. Maintaining customer loyalty often times does not cost
much and simple actions to show your appreciation in addition to providing
exceptional service are a good start. You can do this by:
• Making a connection with the customer on a personal level. Make every
point of contact or communication personal. Call the customer by name
and connect with the customer.
• Remembering the importance of a sincere thank you. Your customers did
not have to choose to use your services, thank the customer at appropriate
times that you interact with them. Thank the customer who makes small
purchases as well as higher priced purchases. You can do this by sending
“thank you for your business” notes.
• Sending small and personalized gifts to your most loyal customers to make
a big difference. It makes the customer feel special. For example, if you
know that a customer likes chocolate, sending a box of chocolates to a
customer may show that you pay attention to details and you value them.
• Offering referral incentives.
• Asking customers for feedback and for ways to improve. It shows your
customers that you do care how they are treated and how you handle their
business. Find out why the customer prefers to use your service over
others and build on that knowledge.
• Sending alerts on new offers to put the company in the customer's mind.
• Finding out what and when customers buy and use the information to find
out ways to serve the customers better.

• Making it easy for the customer to do business with you.

• Encouraging customers to contact you with any concern at every step of
their travel. For example, if the customer has an issue at the hotel where
the room category booked was not received or if they lost their luggage.
• Inviting them to special events if possible.
• Delivering an e-newsletter or e-mail alerts for new products/services.
• Demonstrating customer appreciation for repeat business by awarding
certificates.
• Making after sales calls without necessarily making a sales pitch.
• Remembering customers on special occasions such as birthdays, anniver-
saries or holidays.
Key Learning Point

Travel professionals can maintain customer loyalty by showing their appreci-
ation of customers through personalized attention, requesting their feedback
and keeping in contact with the customer regularly.
Case Study: Where Should Mr. Walker Go?
It is now 11:30 and Julie returns to Mr. Walker to let him know that Kevin, the
travel agent who specializes in trips for single travelers, will meet him in
5 minutes. Julie offers Mr. Walker some coffee and returns to her desk.
After 15 minutes goes by, Mr. Walker starts to show frustration by pacing back
and forth in the lobby area as he starts to think that he probably will not be able
to make his 12:30 medical appointment at a clinic nearby. At that moment,
Kevin enters the lobby area and greets Mr. Walker with a welcoming smile and
handshake. Kevin finished his first morning's appointment that he completed as
he had scheduled. Mr. Walker hopes that he will not have to wait for anything
else at the agency. Kevin leads Mr. Walker to his desk and offers him a seat.
Kevin has to meet a customer at 12:15 and aims to take no more than half an
hour to ensure that Mr. Walker's needs are met.

Kevin tells Mr. Walker “I hear that you are planning a holiday and you will be
traveling by yourself. You have come to the right place. We have several
options for you. Let me start out by telling you about Barcelona and New York
City.” Mr. Walker is pleased to hear about the hotels and tours in the two cities
but was hoping to go somewhere in the Caribbean instead. Kevin shows
Mr. Walker photos of top hotels and attractions in Barcelona and New York City
on the agency's Instagram website. Although the pictures were breathtaking,
Mr. Walker thinks it is simply not what he wants. He tells Kevin thank you and
asks him to tell him more about places in the Caribbean. Kevin then asks
Mr. Walker for more details such as his full name, address, telephone number
and email. He asks Mr. Walker about his budget and possible travel dates. He
also asks Mr. Walker how he heard about Raylan Travel. Mr Walker says
“When I did my search online, your agency had some really positive comments
on your Facebook page. Better reviews than the other travel agency across the
street.” Kevin is pleased to hear that and continues to assist Mr. Walker in
booking a suitable holiday.
After much research, Kevin recommends Tortola in the British Virgin Islands as
a great destination. Mr. Walker is happy that the resort he will visit has a good
night life where single travelers meet up. Kevin e-mails Mr. Walker some links
to websites of places he could visit on his own during his trip to Tortola. Mr.
Walker books his trip and is excited for his departure in two months. With all the
travel arrangements made, he leaves Raylan Travel just in time to make his
medical appointment.
After Mr. Walker leaves, Kevin learns that the customer who was scheduled to
meet him at 12:15 pm is running late. He has a few minutes to do some more
work before she arrives. Kevin remembers that two of his other customers who
visited Tortola posted photos of their trip on Pinterest and gave permission to
Kevin to share their Pinterest pages with others. Kevin sends Mr. Walker a link
to their Pinterest pages by SMS messaging as he thinks Mr. Walker would
appreciate that he could see more pictures right away on his phone. When
Mr. Walker receives the text message at the medical office, he realizes that he
did not tell Kevin that he would not like to receive text messages unless it is
urgent as he has to pay a fee to receive text messages under his mobile phone
plan.

1. Did Julie and Kevin follow the four basic steps in delivering exceptional
service? Give reasons for your answer. In your answer explain what the
travel agents did right and what they may need improvement in.
2. How did Kevin use social media to provide good customer service to
Mr. Walker?

3. Mr. Walker did not want to receive text messages. What should Kevin have
done before sending a text message to his customer?
Study Check 10.4
1. Which of the following is the best example of acknowledging the customer?

(a) Complimenting their dress style
(b) Offering many brochures to take home
(c) Immediately greeting the customer
(d) Offering coffee or tea to waiting customers
2. The best way to determine the customer's needs is to use effective

techniques.
(a) listening and questioning
(b) multitasking
(c) product demonstration
(d) computer research
3. A travel professional's reputation is measured by the size of their promises

made to customers. TRUE or FALSE?
(a) True
(b) False
4. Customers who experience a disappointment due to an error or an

omission caused by their travel agent are lost forever. TRUE or FALSE?
(a) True
(b) False
5. Performing follow up (after sales) customer service activities leads to new

sales opportunities. TRUE or FALSE?
(a) True
(b) False
6. Customers appreciate it when travel professionals act as

their .
(a) suppliers
(b) advocates
(c) managers
(d) friends

7. Which form of payment protects the customer's travel purchase against

supplier bankruptcy?
(a) Cash
(b) Check
(c) Money order
(d) Credit card
8. Travel professionals should maintain to

record the personal preferences of their customers.
(a) an online website
(b) a customer database
(c) an accounting system
(d) an agency newsletter
9. Requesting feedback from customers is a good way to show the customers

that you value them. TRUE or FALSE?
(a) True
(b) False
Apply Your Learning

1. Interview at least two customers to determine what aspects of customer
service would make them be loyal customers. Use the content of this Unit
to prepare your interview questions.
2. Interview two travel professional colleagues to determine what they do to
promote customer loyalty. Again, use the content of this Unit to prepare
your interview questions.
10.4.5 Unit Summary

This Unit examined different ways to win the loyalty of travel customers and
discussed key steps for delivering exceptions service.
• The first steps include: 1) acknowledging the customer; 2) determining
customer needs; 3) identifying the solution; 4) providing the service
(Unit 10.4.1).
• Following up after a trip enhances customer loyalty and develops new
sales opportunities through repeat business and customer referrals
(Unit 10.4.2).
• Serving the needs of each customer is more important than supporting
preferred travel partners or suppliers (Unit 10.4.3).
• Customers like to get noticed. Acknowledge customers by providing
personalized service, thanking them and showing that you care
(Unit 10.4.4).

10.5 Handling Difficult Customer Service

Situations
• List two reasons why travel customers may get upset (Unit 10.5.1).
• List and describe the three steps to follow when reacting to an upset
customer (Unit 10.5.2).
• Identify how to calm customers who are upset on the phone (Unit 10.5.3).
Unit Learning • Identify what to do and what not to do when faced with an upset customer
By completing this Unit, • Describe how to handle challenging requests from customers that a travel
you will be able to: professional may not be able to meet (Unit 10.5.5).
• Identify methods of maintaining self-control (Unit 10.5.6).
Difficult customer service situations are part of every travel professional's work
life. There will always be customers who have reasons to be upset or angry,
often caused by events which are out of the agency's control. You will need to
interact with them. These situations can become emotional for everyone
involved. You may feel defensive, whether you are responsible or not. When
you are prepared for such situations, it will make it easier for you to handle
them. This Unit will help prepare you by providing you with simple methods to
deal with customers who are upset or angry and those who make demands
that you are unable to meet. Finally, as additional reading for those who are
interested, there is a self-assessment that measures your skills for handling
difficult customer service situations.

10.5.1 Why Customers Get Upset

Let's begin by studying why travel customers may get upset. When it comes to
travel, things can easily go wrong from hotel bathrooms that overflow to travel
delays. While these unfortunate events may not be intentional, customers
suffer and complain. In general, customers complain because:
• Customers believe that their service expectations have not been met;
and/or
• Customers do not like how they have been treated.
Dissatisfied customers normally have a good reason to be upset: the wrong
flight is reserved, or the hotel has no record of their reservation, or seat
numbers were not assigned on a flight. These are examples of service
expectations that were not met. Other examples include travel arrangements
being changed without notification or issues with the quality of accommo-
dations.
Customer expectations are directly linked to the services and quality of the
services that a company promises. Before customers buy a service, they
evaluate its potential to meet their needs. In doing so, the customer compares
the service and quality promised by the company against those of its
competitors. So, a customer will recognize if the service falls below expecta-
tions, whether established by prior experience or by clear promises made in
marketing and selling the service or product.
Customers will gladly accept performance that is of a higher standard than
expected, but they are less accepting of unexpectedly lower levels of service. If
performance fails to match the standard that the customer expects, the
customer becomes dissatisfied. With customers becoming more aware of their
rights and demanding more value for money, they are becoming more willing to
complain more often.
Customers become upset if they believe they have not been treated well. They
may feel that they were handled unfairly or mistreated in some way.
Sometimes, travel professionals must deal with customer complaints about
events or services that they are not responsible for: a flight has been cancelled
or delayed and there will be a flight misconnection. It may be a case of lost
luggage, or a hotel room with a ceiling leak, or even a rental car breaking down.
Key Learning Point

Customers complain because they:
• believe that their service expectations were not met; and/or
• dislike how they have been treated.
10.5.2 Responding to a Customer Who is Upset

An attentive travel professional can recognize signs of customer dissatisfaction
and diffuse a difficult situation by following a few simple steps.
You can identify an unhappy customer by paying attention to non-verbal signs
of dissatisfaction. The customer may:
• tap their fingers on the counter and look annoyed
• have a grim facial expression
• pace and constantly look at his or her watch
Unit 10.5: Handling Difficult Customer Service Situations 797

• speak with an irritated tone of voice–especially after having waited “on

hold” on the telephone
• demand attention using short, abrupt words in a hurried tone
In most cases, a dissatisfied customer will approach you and ask for your
attention. When faced with handling a customer who is upset, you can rely on
the following three steps to help you deal with the situation effectively.
1. React with empathy.

• Acknowledge the customer's feelings and express regret: “I can see
how this is an important issue” or “I can understand why you are
upset”. When appropriate, a simple apology for the inconvenience or
misunderstanding will often calm the customer down. Recognizing that
the customer has a grievance is not the same as accepting blame.
• Speak slowly and calmly. This will keep you calm and it will calm your
customer as well. The upset customer may not shout at someone who
is being quite rational and calm. Never talk down to customers or
accuse them that the problem is their fault. Instead, maintain a
positive, professional, polite and respectful attitude. Assume that the
problem can be solved and never forget to thank them for bringing the
situation to your attention.
• Validate the customer's anger before solving or explaining anything.
This step shows customers that they matter. For example, you can
say, “I don't blame you for being angry,” or “Of course you're angry!”
Their level of anger will slightly diminish if they know you take it
seriously.
2. Clarify the situation–listen to understand the cause of the customer's
problem.
• Encourage the customer to give a thorough account of the problem.
Take notes and pay complete attention. Only interrupt if absolutely
necessary to request further clarification.
• When customers are in an emotional state they may not communicate
very clearly. When this happens you need to take control of the
situation and try to get them to give you some basic facts. You do this
by using probing and clarifying questions. However, always remember
to get permission to ask questions. Angry customers will be further

annoyed if asked probing questions. They do not understand why it is

necessary to ask questions about details they think are irrelevant to
solving their immediate problem. Therefore, keep the customer in-
formed as to why you need certain information.
• Always listen to everything the customer has to say before providing
any kind of answer. Ensure that you and the customer are working with
the same information and the same level of understanding.
• Repeat, in your own words, the customer's problems. This step shows
customers that you heard them, and it also allows for clarification. For
example, you may say, “You were billed ten dollars more than you
should have been.” Even if the customers respond with, “Yes, that's
what I just said,” their anger may decrease because they know that you
heard them.
3. Respond quickly. If you cannot give customers exactly what they want it is
important to tell them what you can do for them.
Offering a choice of solutions allows the customer to feel in control and
respected. Discuss the options with the goal of getting agreement about
the actions to be taken.
• “Based on what you have said, I would suggest ...”
• “Here is what we could do ...”
• “One possibility is ...”
• “In that case, why don't we ...”
• “How does that sound to you?”
• “Which of these options would work best for you?”
When the complaint cannot be dealt with immediately because of office
closures or the need to wait for a call back from an airline or tour operator,
express regret and keep the customer informed as to the procedure that will be
followed and the time it will take to resolve. Every service provider has a limit to
his or her authority. If you have done your absolute best to solve the customer's
problem yet they continue to be dissatisfied and angry, then this would be the
time to transfer the call to a team leader, supervisor or manager. Lastly, always
follow up to ensure that everything has been resolved afterwards. This may
involve personally calling the customer at the end of the day or a few days later
or even checking with your supervisor to see if the situation was resolved.
Key Learning Point

React–Clarify–Respond. These are three steps to follow with upset customers.

10.5.3 Calming Customers on the Telephone
There are some differences in the way upset customers are handled face-to-
face versus on the telephone. Difficult customer service situations that occur
over the phone are unique service challenges as the customer can only show
their frustration verbally. Therefore, the tone of their voice, their words or
volume may be more intense than if they showed their frustration to you face to
face. They know that they are speaking to a representative of your agency.
The following are recommended practices in calming customers on the phone
who are upset. These practices show goodwill and make the customer feel that
they are important.
• When a customer cannot see concern in your face, they need to hear
concern in your voice.
• It helps to keep your voice as calm but assertive as possible. An assertive
voice sounds more assuring to the caller who wants to speak to a person in
charge.
• If you must leave the conversation, state why and ask the customer if they
prefer if you called them back or if they will hold.
• If they want you to call them back, set an exact time that is acceptable to
the customer to call them back. Return the call at the agreed time–even if
you are still working on a solution.
• If the customer prefers to be kept on hold or a queue, explain how long you
will be away. Be sure the customer records your name and possibly your
direct telephone number or extension in case they hang up and need to call
again. It is critical to ask the caller for his/her telephone number in case you
get disconnected.
Key Learning Point

A customer may appear to be angrier on the phone than in person as they can
only show their frustration by their words. They may see the travel professional
as a representative of the organization that has caused them frustration.
Communicating concern through a calm but assertive voice helps calm upset
customers.
10.5.4 Calming the Customer: Do's and Don'ts

The following are some additional “do and don't” guidelines that will help you
control situations with upset customers. These guidelines may not be enough
to turn the upset customer into a satisfied or happy customer, but they will help
calm the upset customer. If a conversation with an upset customer cannot be

controlled, you should refer to a supervisor. Here are some “Do's” to take into
consideration:
1. Do let customers keep their pride–It is important to understand the
customer's dissatisfaction from the customer's point of view and empa-
thize. However, it is not acceptable to make the customer feel embar-
rassed, insulted or disrespected.
2. Do offer solutions–Saying that there is nothing that can be done to solve
the customer's complaint normally causes the customer to feel helpless
and angrier. Offering a choice of solutions allows the customer to feel in
control and respected. Sometimes an indirect solution will help alleviate the
urgency of the situation and allow more time to find a satisfactory and
permanent solution for the core problem.
For example, a customer called to complain that the wrong check-in date
was reserved at his preferred hotel for his upcoming trip. The agent made
an error. The correct date is not available which does not please the
customer. The agent cancels the original reservation for the wrong date,
waitlists the preferred hotel on the desired check-in date, and protects the
hotel reservation at an equivalent hotel for the correct date. It's not exactly
what the customer wanted, but the customer does have a hotel reservation
on the correct date now. In the meantime, the travel agent will contact the
hotel and verify the reservation daily with hope for a confirmation of the
waitlisted hotel.
3. Do apologize–Admit errors or omissions caused by a member of the
agency staff. If the travel professional maintains that the customer was
served perfectly, the customer becomes more frustrated and angry.
Sometimes simply admitting a mistake is enough to satisfy the customer
and resolve the problem.
4. Do be nice, but firm–It's good business to always be polite and show
interest in what the customer says. But being nice and polite does not
mean giving in to customer demands if their request cannot be met or are
out the agent's control.
5. Do respond professionally–The customer is upset at the situation not
you. Maintain self-control and be objective. Use the customer's name as
much as possible. Maintain your friendliness and respect for the customer
even if the customer may not be respectful and calm.
The following “don'ts” are practical suggestions for calming upset customers.
1. Don't argue–It is difficult to win an argument with a customer, even if the
customer is wrong. A customer always wants to feel he/she is right. Telling
customers they are “wrong” makes them angrier and more difficult to deal
with. It is better to listen to the customer and understand why the customer
is upset. It is better to say, “Let's take a look together at what is written in
the contract to be sure”, than to say, “You never asked for a rental car that
can be driven across the border.”
2. Don't take anything an angry customer says personally–The customer
is angry over a situation or against the company. Or the customer may not
even be upset with the travel professional at all. Upset customers could be
experiencing a bad day. It is easy to react emotionally to a customer who is
angry. Upset customers will focus their frustrations on the travel pro-
fessional even though the customer's complaint is with an external supplier
such as a hotel or an airline. It is important to remain calm and not respond
to the customer with the same anger. If you get angry, it may become more
challenging to serve other customers throughout the rest of the day.

3. Don't tell the customer to calm down–Sometimes the customer is so

upset that the travel professional cannot get the customer to listen. The
situation may frustrate the travel professional to the point where the travel
professional threatens to terminate the telephone call or refuse to speak to
the customer. Such a threat makes the customer angrier. Better to calm
the upset customer by saying, “I really want to help you, but your
tone/language is making it really hard for me to do that.”
4. Don't raise one's voice and stay calm–Using a calm voice when dealing
with an upset customer will create a more relaxed situation. A calm voice
represents a confident professional who is in control of a situation. The
upset customer begins to realize that yelling is not necessary to resolve the
complaint. Saying, “What can I do to help?” or “What can I do to fix this
situation?” in a calm voice is a good way to calm customers.
It is important to remember what an upset customer really wants. First and
foremost, they want to be taken seriously and treated with respect. They want
to be heard. They want immediate action, whether it is in the form of
compensation, refund or credit, or taking action against the vendor or supplier
that caused the problem. They also want to know that the problem is resolved
so it will not happen again.
Key Learning Point

Allowing customers to keep their pride, apologizing, offering solutions, and
being firm are all techniques that help resolve a difficult customer service
situation.
10.5.5 Dealing with Customers' Challenging

Requests
Customers may also make requests or demands that from a travel agent's
perspective may be difficult or even impossible to meet. Some requests are
against an organization's policies and procedures, safety regulations; outside
of your authority or involve a great amount of time and resources. Examples of
such demands or requests are:
• “I would like to be sure we have the seat behind the tour guide on our bus
trip through Europe. I always like sitting up front to get a better view.”
• “I would like to go to a zoo where the animals are cheerful.”
• “I'd like to hold on the phone while you book our ten hotels in Asia.”
You must remember how important customer expectation is. The customer
expects a travel agent to be knowledgeable, reliable and responsive. What
may seem to be an unreasonable request or demand to travel agents may not
seem unreasonable to the customer.
The best way to handle these requests is not by rejecting the request
completely, but by suggesting alternative solutions or services. Telling the
customer what you can do instead of what you cannot do is all a part of
negotiating a compromise to ensure that there is good customer service. The
travel professional has to be honest and provide possible alternatives that they
are willing to do.
Even if a customer's requests are impossible to meet, a blunt “No” or “Can't be
done” will only worsen the situation. You must continue to be positive and take
ownership of the problem. You may say:
• “Based on what you have said, I would suggest ...”

• “Here is what we could do ...”

• “One possibility is ...”
• “In that case, why don't we ...”
• “I have an idea on that; we could ...”
• “Many people have found that ...”
• “Should we go ahead then and ...?”
After you tell the customer what you can do, go ahead and take action and
follow up.
There may also be times, when a request cannot be granted due to safety
reasons and the travel professional must always give an explanation to the
customer highlighting the benefit to the customer. For example, “For your
safety, we would recommend that you….”
Key Learning Point

The best way to handle customer requests that may prove difficult to meet is by
suggesting alternative solutions or services.
10.5.6 Keeping Self-Control

It is easy to feel personally attacked when a customer is really upset. The
customer is expressing anger at anyone representing the source of the error
and in some cases it might be you. It is okay to ask for help from your
supervisor. More often than not, you may not have caused the customer's
problem–and the customer will really be judging you on the way you help solve
the problem.
Below are a few suggestions on what to do for some of the more frequent
situations you may encounter.
What if: You should:

You begin to feel angry or Take a timeout or break. When you feel yourself getting emotional, excuse
want to cry or shout at the yourself politely. You might say:
customer....
“Excuse me while I check on this.”
“I need to verify some information. I will be gone for just a minute.”
“I need to discuss how we can best solve this with my supervisor. I will be just a
moment.”
The customer is shouting Say the person's name. Most people will respond when they hear their name.
and you do not have a
chance to talk....
The customer is unwilling to Make statements that direct the customer toward finding a solution.
come to an agreement with
“Please tell me what you believe to be a fair solution.”
you....
“How can we come to an agreeable solution on this?
The customer is using bad Remain calm and professional and immediately contact a supervisor or manager.
language with you….
You can say:
“I understand that you are upset, however, I will not be able to help you any
further when you use this language.”
Table 10.5.1—What To Do If?

Key Learning Point

Taking a break, stating the customer's name, and making statements that
direct the customer toward finding a solution are all ways to help you keep self-
control in difficult customer situations.
Apply Your Learning

1. Think about your own experiences with difficult customer service situ-
ations. Briefly describe a customer complaint that ended well. Refer to the
three steps to handle an upset customer and list the steps you took when
resolving the customer complaint. Add any others not included in the three
steps. Next, briefly describe a customer interaction that did not end well.
Again, refer to the three steps and list the steps you took in your attempt to
resolve the customer complaint. Compare the two lists and determine what
steps were missing in the situation that ended badly.
2. Write down one new skill, piece of knowledge, or key action that you
learned in this unit. Describe how it will help you do your job better. Include
what you might do differently now when trying to calm a customer who is
upset.
Assess Your Skills in Calming Upset Customers

Read each statement and circle the number that most closely represents your
skill level. The goal is to identify low score items (1 or 2), and work to improve
them. Then, keep trying until you score all 5's. Then make sure your results
remain high.
Scoring Key: (1) Never (2) Rarely (3) Sometimes (4) Usually (5) Always
N R S U A
01 I feel I can calm most upset customers 1 2 3 4 5
02 When I am upset with a customer, I stay calm 1 2 3 4 5
03 I do not interrupt 1 2 3 4 5
04 I focus on their concern without being distracted 1 2 3 4 5
05 I respond to insults without becoming defensive 1 2 3 4 5
06 I reduce distractions of paperwork and phone 1 2 3 4 5
07 I have attentive body language 1 2 3 4 5
08 I have appropriate facial expressions 1 2 3 4 5
09 I have confident eye contact 1 2 3 4 5
10 I listen completely before responding 1 2 3 4 5
11 I take notes when appropriate 1 2 3 4 5
12 I show empathy 1 2 3 4 5
13 I let the customer know I want to help 1 2 3 4 5
14 I know when to call on my supervisor 1 2 3 4 5
15 I have a confident, helpful tone of voice 1 2 3 4 5
16 I use words that do not escalate the customer's anger 1 2 3 4 5
17 I avoid blaming my fellow workers or the agency 1 2 3 4 5
18 After an upset customer leaves, I control my 1 2 3 4 5
emotions
19 I do not repeat the story more than once 1 2 3 4 5
20 I analyze what I did well, and what I'd do differently 1 2 3 4 5
Source: Rebecca Morgan, Calming Upset Customers

Study Check 10.5
1. Which represents a service expectation that was not met by an agency?

(a) An unauthorized charge for insurance
(b) Lost luggage
(c) A flight delay
(d) Poor destination weather
2. Customers know when services fall below expectations either by com-

paring a service to prior experience or by explicit promises made by the
service provider. TRUE or FALSE?
(a) True
(b) False
3. In an initial encounter with an upset customer, it is acceptable

to .
(a) accuse the customer of being at fault
(b) immediately send the customer to a supervisor
(c) thank the customer for communicating the problem
(d) match the upset customer's tone and voice intonation
4. How should the travel professional encourage the upset customer to

explain what is upsetting him/her?
(a) Ask the customer to complete complaint forms
(b) Listen to the customer without interrupting him/her
(c) Control the communication by asking direct questions
(d) Request a formal letter of complaint from the customer
5. You are handling a customer complaint but it cannot be solved right away.
The customer accepts a call back at an agreed time later the same day.
However, when the time comes, you still have no answers and no solution
to propose. What is recommended?
(a) Do not call the customer before a solution can be offered
(b) Communicate a delay to the customer via an e-mail message
(c) Call the customer at the agreed time and ask for more time
(d) Call the customer on time and advise that a solution is near
6. When placing a customer on hold, the one thing you should do is ask for
their phone number in case you are disconnected. TRUE or FALSE?
(a) True
(b) False

7. A first step in handling upset customers who are not open to listening is to
tell the customer .
(a) to call again when they are calmer
(b) to allow you to speak so you can help them
(c) that you will transfer them to a supervisor
(d) That the customer is at fault for the error
8. Raising your voice to the same level as the complaining customer's is a

good technique to use to let the customer know that you empathize with his
situation. TRUE or FALSE?
(a) True
(b) False
9. One way to handle challenging customer requests is to offer alternative

services or products. TRUE or FALSE?
(a) True
(b) False
10. If a customer's request is against a company's policy, simply telling the

customer “No, we cannot do that”, may be enough to show that you care
about them. TRUE or FALSE?
(a) True
(b) False
11. When a customer is shouting at you, one strategy to keep your self-control
is to excuse yourself for a few minutes. TRUE or FALSE?
(a) True
(b) False
12. When a customer is being verbally abusive, you should immediately

contact a supervisor or manager. TRUE or FALSE?
(a) True
(b) False

10.5.7 Unit Summary

Customer satisfaction is important because it provides the travel professional
with a way to improve their service performance and encourage repeat
business.
• Customers complain when their service expectations are not met or when
they are not happy with the service (Unit 10.5.1).
• The three steps to follow with upset customers are to:
React–Clarify–Respond (Unit 10.5.2).
• To resolve difficult customer service situations include offering face-saving
solutions, apologizing, and being firm (Unit 10.5.4).
• Instead of outright rejection, suggest alternative solutions or services
(Unit 10.5.5).
• Actions that help diffuse volatile situations include taking time-out, address-
ing the customer by name, and making statements toward finding a
solution (Unit 10.5.6).

10.6 Coping with Work Stress
• Identify sources of workplace stress in the travel industry (Unit 10.6.1).

• List five techniques to cope with stress (Unit 10.6.2).

Unit Learning
Objectives
The increasingly demanding and competitive environment of the travel industry

certainly presents challenges for those who work in it. Stress can come from
trying to meet multiple deadlines, handling difficult customer service situations,
demands of colleagues and supervisors and from having to learn new
technologies or adapt to change in the workplace. When stress occurs in
amounts that you cannot handle, it affects how you deliver customer service as
well as the customer's experience.
Those who work in the travel industry are very people-oriented. They are
motivated to help others and work with high dedication and commitment.
Professionals working in the travel industry may be more likely to experience
high levels of stress. Travel professionals always want to deliver a positive
customer experience but at times are unable to do so or they interact almost
entirely with customers or employees and they may become unhappy with
products or services.
Look for signs that you or a colleague feels stressed or burnt out during
extremely intense work periods or situations. Some of these signs are:
• wandering aimlessly in the workplace
• becoming isolated from the workgroup
• having difficulty remembering instructions
• refusing to participate in activities and events or following orders
• refusing to leave his/her work station or post
• becoming argumentative
• expressing ideas and decisions with difficulty
10.6.1 Sources of Stress in the Workplace

Stress is the body's reaction to a change that requires a physical, mental or
emotional adjustment or response. It can result from any situation or thought
that makes you feel frustrated, angry, nervous, or anxious. Work quality
decreases as work load increases. Stress makes a person tired which leads to
poorer judgment and decisions. If the travel professional does not work on
ways to reduce their stress levels, long-lasting or chronic stress can lead to
physical and emotional health problems in the future.

Job-related stress happens when there is a conflict between job demands on

the employee and the amount of control an employee has over meeting the
demands. In general, a high workload demand combined with a low amount of
control over the situation leads to stress. In the travel services environment in
particular, things that can lead to stress include:
• irate customers
• challenging requests from customers
• technology issues
• information overload
• boredom/routine tasks
• fear of being laid off
• increased demand for overtime
• pressure to meet sales targets or improve revenue
• unexpected schedule changes or travel emergencies
• relationship issues with colleagues/supervisors
Key Learning Point

One of the main causes of stress in the workplace is too much work and not
enough control over deliverables and deadlines.
10.6.2 Coping with Stress

Managing stress at work is an important skill. Burnout is the inability to perform
one's job due to mental or physical exhaustion. Your job performance reflects
your ability to manage your stress. Emotions are contagious, and stress can
affect relationships and interactions with colleagues and customers. There are
a variety of steps you can take to reduce your overall stress level. These
include:
1. Take responsibility for improving your physical and emotional well-being:
• Use basic stress coping techniques like deep breathing. Take the time
to relax. Breathing deeply will help to relieve stress and anxiety.
• Exercise regularly. Exercising releases endorphins making you feel
happier and healthier. You can also work off negative feelings and
anger.
• Maintain a balanced diet.
• Maintain a healthy balance between work and home life.
• When your own needs are taken care of, you're stronger and more
resilient to stress. The better you feel, the better equipped you will be
to manage work stress without becoming overwhelmed.
• Take time to attend to your own personal needs. Whenever possible
try short breaks or take a walk outside. Often travel professionals are
so busy that they forget to take time off for a real vacation.
• Take time to laugh. Find ways to lighten the mood and when used in
the right way, using humor is a good way to relieve stress.
Unit 10.6: Coping with Work Stress 809

• Rest well. Sufficient sleep helps your body to recover. If you do not get
enough rest or sleep, this can result in additional stress on your body
and you may become more irritable.
2. Avoiding internalizing/personalizing customer complaints:
• Never take it personally. When customers are frustrated, they may
take it out on the person that is trying to help them. They do not realize
the impact they have on you. Ignore personal attacks.
• When customers are frustrated, their behavior is a reaction to unmet
expectations, not to you personally. Understanding and meeting their
expectations will help defuse emotions, help you keep cool, and keep
the conversation focused on problem solving.
• Stay in control of the customer and your mood.
3. Talk to other people. Communicate with co-workers and other people in
your life. Talking releases stress; sometimes other people can offer
solutions you did not think of yourself. A chat with a colleague may end
with an encouraging compliment or praise for the work you do. Receiving
and giving appreciation helps to relieve stress at the workplace and
spreads positive feelings with others.
4. Find ways to get more organized and manage your time:
• Set realistic goals and deadlines.
• Prioritize tasks for the day. Complete your tasks in the order of
importance so that the most important tasks are done first.
• Be open to ask for help when tasks seem overwhelming and the
workload becomes too much.
• Find ways to complete tasks more efficiently and effectively. This
means that you use the least amount of resources (your time,
materials, efforts, etc.) to complete a task.
5. Get more training.
• Travel professionals are encouraged to get more training on stress
management such as becoming more aware of the signs of stress and
how to cope with stress.
• Seek continuous training on selling, operations, planning, travel
automation, products, services or any relevant area to improve your
knowledge and your ability to give great customer service. You learned
that travel professionals want to deliver a positive customer experience
and having enough training is a good tool to help with that. More
knowledge allows you to serve customers and make them happy
therefore reducing the number of stressful situations when they are
unhappy or dissatisfied. A travel professional must have the skills to
recognize when and what they need to learn more.
Key Learning Point

People who have a strong ability to cope with stress will be more productive
over a longer period of time. The better you feel physically, the better equipped
you will be to manage work stress without becoming overwhelmed.

Study Check 10.6
1. People-oriented employees may be more likely to have higher levels of

stress because they want to deliver a positive customer experience and
are unable to do so. TRUE or FALSE?
(a) True
(b) False
2. Chronic stress does not have any real effect on your emotional and
physical health. TRUE or FALSE?
(a) True
(b) False
3. Deep breathing exercises and eating well are two means of coping with
stress. TRUE or FALSE?
(a) True
(b) False
4. Understanding and meeting customer expectations help to reduce stress.

TRUE or FALSE?
(a) True
(b) False
5. Our ability to manage stress does not affect job performance. TRUE or
FALSE?
(a) True
(b) False
6. A physically fit person with a positive outlook on life and a healthy diet will
have a really high ability to cope with stress. TRUE or FALSE?
(a) True
(b) False
7. A travel professional can reduce their level of stress by:

(a) Taking time out to go on a personal vacation
(b) Completing the most important tasks first
(c) Attending training programs on products and services

Case Study: Mr. Walker Returns from His Trip
It is now October and Mr. Walker returned from his trip to Tortola three days
ago. Kevin, the travel agent, calls Mr. Walker to follow up with him to see how
he enjoyed his trip.
Mr. Walker tells Kevin that he was disappointed about the entire trip and made
a formal complaint to the General Manager at Tiki Resort in Tortola before he
left the island. Below you will see part of the conversation between Mr. Walker
and Kevin.
Kevin: Good afternoon Mr. Walker. It's Kevin from Raylan Travel. How are you
today?
Mr. Walker: Good afternoon Kevin. I am better now that I am back home.
Kevin: Oh no. Did something go wrong while you were away?
Mr. Walker: Something go wrong? You mean, everything went wrong Kevin.
You told me that the Tiki Resort would be great for single travelers as lots of
single groups go there but this time, there were not many single travelers at the
resort. When I checked in, the hotel receptionist did not check me into a room
with an oceanview and I know that's what you booked for me. The resort was
overbooked as there was a large group of employees there from a company
called Macy Selco. So I had to wait for 2 days before I was given my oceanview
room. I had to unpack my luggage twice and that was annoying. Lots of the
resort's activities were changed to suit the group and I felt like an outsider. The
food at breakfast every day was cold and the restaurants always seem to run
out of lemonade and milk. Nobody…
Kevin: Mr. Walker, please calm down.
Mr. Walker then begins to shout over the phone as he continues the
conversation.
Mr. Walker: Don't tell me to calm down and I am not finished Kevin, there is
more.
I paid my hard earned money for this holiday and the staff was rude, they did
not smile or say hello when they saw guests. I ended up spending most of my
time outside the resort by myself. I found some great local bars and beaches
but I had to spend more than I wanted to. I am not happy that you
recommended this resort to me. The island is beautiful and I would return there
but not to that resort.
Kevin: Unfortunately, there is not much that we can do about what happened.
We have sent our customers who are single travelers to the resort before and
they enjoyed their time there. You said you complained to the resort directly so
we will leave it at that.
Mr. Walker takes a deep breath and tells Kevin one more time that he did not
like the resort. He is sorry that he came to the travel agency and he will not be
returning to book any future holidays with him. He has already written about his

experience online on a social media site and mentioned that Raylan Travel
recommended the resort. Kevin then thinks about what else he can say and do
to help Mr. Walker.

1. Why was Mr. Walker upset?
2. How did Kevin respond to Mr. Walker on the phone?
3. What can you tell Kevin to say and do to assist Mr. Walker?
Apply Your Learning

1. Refer to the sources of stress (Section 10.6.1) and identify any which affect
you right now. Divide the list into two parts:
(a) those you cannot do anything about
(b) those you can do something about
For the a) list, plan to be patient, obtain personal support from friends and
relatives, and let time pass.
For the b) list, discuss with your supervisor, your co-workers or friends who
may provide ideas on possible actions you could take to deal with those
issues.
2. List some of the techniques you are currently using to help relieve stress
on the job.
10.6.3 Unit Summary

In this unit, you studied the main sources of stress and how to deal with it. You
learned the following:
• One of the root causes of stress in the workplace is too much work and not
enough time to complete tasks (Unit 10.6.1).
• People who have a strong ability to cope with stress will be more
productive over a longer period of time. The better you feel, the better
equipped you will be to manage work stress without becoming over-
whelmed (Unit 10.6.2).

Module Summary
A travel professional's service level influences business success. The right
combination of product knowledge, interpersonal and operational skills are
critical in satisfying the travel customer's needs (Unit 10.1).
Good and clear communication is important to understanding customer
preferences and needs. The travel professional who applies best practices in
asking the right questions, listening actively and interpreting verbal and non-
verbal information will correctly understand what the customer needs. Knowing
what the customer needs helps to deliver the products and services that satisfy
customers and attract repeat business (Unit 10.2).
Travel customers expect their travel professional to remain in constant contact,
keeping them informed of their travel arrangements and any changes. They
expect to receive concise, relevant and beneficial advice in a timely way.
Various technologies and automation enable the travel professional to remain
in contact with their travel customers before, during and after their travel. Social
media can be beneficial or damaging to a travel agency (Unit 10.3).
Delivering exceptional service by establishing and promoting a service policy,
by prioritizing customer needs, by recommending products that benefit the
customer and by delivering more than what is promised secures customer
loyalty and repeat business. Travel professionals can use the internet to serve
travel customers. The internet provides valuable information on things such as
foreign currency rates and hotel and destination information (Unit 10.4).
Sometimes travel products and services do not meet the customer's expecta-
tions and the customer is disappointed and complains. The travel professional
understands that the customer is reacting emotionally, empathizes with the
customer, allows the customer to express their disappointment and rec-
ommends solutions. There are best practices for calming customers who are
upset such as apologizing, considering the customer's point-of-view, offering
solutions and not taking the customer's anger personally (Unit 10.5).
Working in a competitive environment with increasing demands from em-
ployers and customers can cause stress that leads to reduced job perform-
ance. Exercise, a healthy diet, work-life balance and positive thinking helps
control stress levels (Unit 10.6).

Glossary
Active listening: a conscious effort to hear not only the words said but to
understand the complete message of what is heard, observing signs such as
behavior and body language
Acknowledge: to notice or recognize someone or something
Added Value: extra benefits that can truly delight the customers and keep
them loyal. ‘Buy two nights get one free’ is an added value offer.
Advocate: to support and defend
Attentive and responsive: paying special attention to the needs and interests
of other people
Back-office systems: equipment and staff providing support for the main
operations of a business
Body Language: a kind of nonverbal communication, where thoughts,
intentions or feelings are expressed by physical behaviors such as facial
expressions, body posture, gestures, eye movement, touch and the use of
space
Consistent service: delivering the same customer service, time after time, so
that service meets customer expectations
Close-ended questions: questions that can be answered with a short
response such as ‘yes’ or ‘no’ and usually begin with ‘where’, ‘are’, ‘do’, ‘would’,
‘will’, ‘if’.
Coping: able to handle a situation or condition successfully (“coping with
stress”)
Credibility: believability
Credentials: qualifications
Cultural norms: expected behavior in particular situations that may differ from
country to country
Customer-centric: focusing on customer needs and preferences.
Customer expectations: what people think should happen and how they think
they should be treated when asking for or receiving customer service
Customer Loyalty: a customer's preference to purchase and re-purchase
from the same supplier or brand over an extended period of time
Customer relationship: a relationship forms as the result of many individual
customer service contacts
Customer satisfaction: the feeling that a customer gets when he or she is
happy with the customer service that has been received.
Customer service: the actions taken to help customers, deliver products and
meet their needs with some level of quality.
Customer service transaction: a single exchange of information, product or
service between a customer and a service deliverer
Effective listening: determines and delivers what customers want by hearing
what they say and interpreting the sender's message in the same way the
sender intended it
Empathy: showing understanding and caring; ability to see things from another
person's point of view
Evaluate: to judge or determine the value of something
Glossary 815
Feedback: advice, comments or reaction

Follow-up: to take action after an event or trip (calling a customer after a
vacation to see how everything went)
Niche: a small specialized area of interest or trade (niche marketing)
Non-verbal communication: gestures, posture, tone of voice, eye contact are
forms of communicating without words
Open-ended questions: encourage someone to talk openly; thus providing
maximum information to help determine the issue at hand. Usually begin with
‘what’, ‘how’, ‘why’, and ‘describe’
Paraphrasing: repeating what someone has written or said using different
words
Rapport: relationship, connection
Recap: repeat (short for recapitulation)
Referrals: a person or business that someone recommends
Stress: the body's reaction to a conflict between the demands of a job and the
amount of control an employee has over meeting the demands.
Word-of-mouth: an opinion or story that is spread by people talking


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Review Questions
Unit 10.1
1. The purpose of every service organization is
to .
(a) satisfy customer needs
(b) satisfy employee needs
(c) satisfy budget needs
(d) be attentive to customers
2. What is the role of the travel professional in an era where more consumers
shop and purchase travel online?
(a) To make standard pre-determined trip arrangements with fixed pricing
(b) To make more complex trip arrangements and to offer unpublished
deals
(c) To make the same simple and standard travel arrangements offered
online
(d) To offer their preferred travel partners and services at fair market value
3. One attribute of a good travel professional is the ability to have or

develop .
(a) strong leadership skills
(b) strong management skills
(c) strong interpersonal skills
(d) strong delivery skills
4. What is the best measure of success for a travel business?

(a) The level of repeat business
(b) The number of preferred suppliers
(c) The number of customer referrals
(d) The level of customer satisfaction
Unit 10.2
1. List the three active listening techniques.
(a)
(b)
(c)

2. What type of question usually begins with the words Where, Are, Do,
Would, Will, and If?
(a) Paraphrase
(b) Open-ended
(c) Rapid-fire
(d) Close-ended
3. What type of question usually begins with What, How, Why and Describe?
(a) Paraphrase
(b) Open-ended
(c) Rapid-fire
(d) Close-ended
4. The majority of our communications are verbal. TRUE or FALSE?

(a) True
(b) False
5. Which is a verbal communication skill?

(a) Facial expression
(b) Posture
(c) Active listening
(d) Eye contact
6. When you are talking to a customer on the telephone, your body language
is not important. TRUE or FALSE?
(a) True
(b) False
7. List the six steps of successful telephone customer interactions.

(a)
(b)
(c)
(d)
(e)
(f)

Unit 10.3
1. Which type of information is most critical to deliver to a traveling customer?
(a) Notification of his hotel reservation confirmation number
(b) Notification of his hotel reservation overbooking and change
(c) Notification of his hotel reservation check-in deadline
(d) Notification of his hotel reservation room rate
2. Which type of notification is expected by the traveling corporate customer?

(a) The traveler expects a lot of information about their destination
(b) The traveler expects notifications from the company's travel arranger
(c) The traveler expects only information that affects travel arrangements
(d) The traveler expects to be notified of the estimated flight arrival time
3. At which stage of travel do travel customers want to receive information

about the trip cost?
(a) Before travel begins
(b) While traveling
(c) After travel is complete
(d) At any time
4. Traveling customers expect to receive

information.
(a) concise
(b) educational
(c) frequent
(d) general
5. Which is the best method to communicate reservation details to cus-

tomers?
(a) SMS messaging
(b) E-mail
(c) Telephone call
(d) Courier delivery

6. Which tool can automate the communication and notification of reservation

information and changes to traveling customers?
(a) A GDS
(b) A mobile phone
(c) An Internet e-mail account
(d) A social media site
7. Which information would not be found in a GDS Profile?

(a) Customer credit card number
(b) Customer diet restriction
(c) Customer reservation number
(d) Customer seat preference
8. The sends standard information to

travel customers about their travel reservations.
(a) GDS Profile
(b) SMS message
(c) booking agent
(d) GDS Script
9. Which is a feature of social media sites?

(a) All postings to a profile page must be visible to all social site visitors
(b) Postings received on one profile page cannot be forwarded to another
page
(c) Information and photos can only be posted to your own profile page
(d) Businesses are able to post information, news and videos on social
sites
10. What type of market intelligence can come from social media chatter?
(a) Products and services recommended by social media members
(b) Products and services promoted by competitors through postings
(c) Products and services which social media members do not like
11. Social media postings are the most effective way to communicate
notifications and alerts such as flight cancellations. TRUE or FALSE?
(a) True
(b) False

12. Which would not be categorized as a travel app?

(a) An app that can call the nearest hospital
(b) An app that entertains with video games
(c) An app that provides directions to a restaurant
(d) An app that translates words from a foreign language
Unit 10.4
1. List the four steps in delivering exceptional customer service.
(a)
(b)
(c)
(d)
2. List three benefits of performing follow-up service.

(a)
(b)
(c)
3. List three follow-up service techniques.

(a)
(b)
(c)
4. Knowing which suppliers offer last minute refunds is one way of being a
good advocate for your customer. TRUE or FALSE?
(a) True
(b) False
5. Which of the following are ways in which a travel agency can maintain
customer loyalty. Select all that apply.
(a) Remember a customer's birthday and send a birthday card to the
customer
(b) Charge a small hidden fees on a customer's invoice
(c) Encourage customers to contact the travel professional when the
customer is on their trip and needs help
(d) Ask customers for feedback on services that the agency would like to
offer in the future

Unit 10.5
1. Travel customers at times complain that they do not like how their travel
agents treat them. Another major complaint that customers make about
their travel agent's service is that .
(a) they did not get the best product at the lowest possible price
(b) their connecting flight was delayed and they missed their next flight
(c) promises were not kept so their service expectations were unfulfilled
(d) their agent did not perform after sales service
2. List two non-verbal signs that can identify an unhappy customer.

(a)
(b)
3. List the three steps in the procedure to serve dissatisfied customers.

(a)
(b)
(c)
4. What is the best way to handle challenging customer requests?

(a) Rejecting the requests outright
(b) Suggesting alternative solutions or services
(c) Give in and tell the customer it can be done but fail to meet the request
(d) Be stern and unfriendly to discourage challenging requests
5. How do customer service professionals maintain self-control when con-

fronted by angry, shouting customers?
(a) Take a few deep breaths before responding
(b) Speak slower and in a deeper voice
(c) Take time for a break
(d) Count to ten over and over again

Unit 10.6
1. List three ways of coping with workplace stress.
(a)
(b)
(c)
2. Stress is a physical reaction to external situations. TRUE or FALSE?

(a) True
(b) False
3. Exercise helps one to cope with stress. TRUE or FALSE?

(a) True
(b) False


1. c 2. b
2. (b) False 3. d
3. b 4. b
4. a 5. b
5. b 6. a
6. (a) True 7. a
7. d 8. a
9. b
1. d 11. a
2. b 12. (b) False
3. c 13. a
4. (b) False 14. d
5. (a) True. The tone of voice and rate of speech do 15. (b) False
reflect non verbal communication.
16. c
6. c
17. b
7. c
18. b
8. (a) True
9. (b) False Study Check 10.4
10. (b) False 1. c
11. c 2. a
5. (a) True
6. b
7. d
8. b
9. (a) True
Answer Key 827

Study Check 10.5 Review

1. a Unit 10.1
2. (a) True 1. a
3. c 2. b
4. b 3. c
5. c 4. d
6. (a) True
Unit 10.2
7. b
1. Be encouraging, reflect back feelings, and para-
8. (b) False
phrase
9. (a) True
2. d
10. (b) False
3. b
11. (a) True
4. (b) False
12. (a) True
5. c
Study Check 10.6 6. (b) False
1. (a) True 7. Greet the caller, Determine who owns the call,
Listen to the caller, Summarize the call, Provide
2. (b) False the solution/deliver the service, Close the call
3. (a) True
4. (a) True Unit 10.3
5. (b) False 1. b
6. (a) True 2. c
7. d 3. a
4. a
5. b
6. a
7. c
8. d
9. d
10. d
11. (b) False
12. b

Unit 10.4
1. Acknowledge the customer; Determine the needs;
Identify a solution; Deliver the service.
2. Relationship building; Repeat sales; Referrals
3. Sending “thank you for your business” notes;
Delivering an e-newsletter or e-mail alerts for new
products/services; Demonstrating customer ap-
preciation for repeat business by awarding certifi-
cates; Making follow-up calls without necessarily
making a sales pitch; Remembering customers on
special occasions such as birthdays, anniversar-
ies or holidays.
4. (a) True
5. a, c, d
Unit 10.5
1. c
2. The customer may: tap their fingers on the
counter and look annoyed, have a grim facial
expression, may pace and constantly look at his
or her watch, speak with an irritated tone of
voice–especially after having been “on hold” on
the telephone, demand attention in a brisk and
clipped manner.
3. React with empathy, Clarify with questions, Settle
the situation quickly
4. b
5. c
Unit 10.6
1. Take responsibility for improving your physical
and emotional well-being, Avoid internalizing/
personalizing customer complaints, Talk to other
people.
2. (b) False
3. (a) True
Answer Key 829

Case Study Answer Key
Unit 10.2
Case Study Questions & Answers

1. Julie demonstrated some good qualities of customer service. Identify 3 of
those qualities.
(a) She greeted Mr. Walker with a firm handshake and a smile
(b) She introduced herself and asked Mr. Walker how she could help
(c) She listened to Mr. Walker and empathized by saying “I can under-
stand how frustrating that was for you.”
(d) She directed Mr. Walker to another agent who would be able to assist
Mr. Walker
2. Did Julie demonstrate any form of unprofessional conduct when interacting
with Mr. Walker? Give reasons for your answer.
Yes, Julie demonstrated unprofessional conduct. She did not wash her
hands before greeting the customer, her pants are stained and she sat
down before offering a seat to the customer.
3. Identify all the questions that Julie asked Mr. Walker. State whether each
question is open ended or close-ended.
(a) How may I assist you today? (Open-ended question)
(b) I see that you have been reading many of the brochures, do you like
anything there? (Close-ended question)
(c) Are you looking for an all-inclusive vacation or to stay at a regular
resort? (Close-ended question)
4. What could Julie have done better when asking Mr. Walker questions?
• Ask one question at a time so that Mr. Walker could understand.
• Allow Mr. Walker to answer a question before she asks another
question.
5. Why did Mr. Walker go to Raylan Travel?
Mr. Walker spent time on the internet exploring vacation options for single
travelers, however he became confused. He went to the Raylan Travel to
see recommendations.
6. As a travel professional, what can you can say to a customer like
Mr. Walker about using a travel agency rather than booking online? Write a
short response in the dialogue below.
Customer: “Why should I come to you when I can book this online?”
Travel Professional: “You can spend hours booking your travel online.
Travel professionals take lots of training and if you are looking for someone
who can offer you real advice and answer your questions right away you
are in the right place. We have experience traveling and can save you lots
of time, effort and help you choose a better travel destination or service.”

Unit 10.4
Case Study Questions and Answers

1. Did Julie and Kevin follow the four basic steps in delivering exceptional
service? Give reasons for your answer. In your answer explain what the
travel agents did right and what they may need improvement in.
No, they did not follow the four steps correctly.
• Julie advised Mr. Walker that Kevin would be with him in 5 minutes,
however Mr. Walker waited for 15 minutes. However she did offer the
customer coffee to make him feel welcome and comfortable.
• Kevin did not apologize for making Mr. Walker wait; however he
greeted Mr. Walker with a smile and a handshake.
• Kevin did not determine the customer's needs before identifying the
solution as he went straight into suggesting destinations for Mr. Walker
before asking him for more details about where he would like to go.
• After researching, Kevin identified Tortola as the solution and delivered
the service.
2. How did Kevin use social media to provide good customer service to
Mr. Walker?
Kevin presented visual images from Instagram for Mr. Walker to imagine
himself in Tortola. This can enhance service delivery.
3. Mr. Walker did not want to receive text messages. What should Kevin have
done before sending text messages to his customer?
Kevin should have asked Mr. Walker for permission before sending him a
text message. Sending the link of the Pinterest sites would be more
appropriate by e-mail than text messaging as it was not urgent.
Unit 10.6
Case Study Questions and Answers

1. Why was Mr. Walker upset?
Mr. Walker's stay at Tiki Resort was disappointing. Kevin recommended
the resort and his expectations were not met. He did not receive the room
category he booked. He had to change rooms during his holiday. The
resort had a large group of guests from one company which meant that
there probably were activities for the group instead of singles. The food at
breakfast was cold, and the restaurant ran out of some items. The staff was
unfriendly and he ended up spending more time and money outside of the
resort than he planned.
2. How did Kevin respond to Mr. Walker on the phone?
He interrupted Mr. Walker while he talked. He should allow Mr. Walker to
tell his story. Kevin did not show empathy by telling Mr. Walker that he was
also disappointed that he did not enjoy his stay. He should not have told
Mr. Walker that there was nothing he could do.

3. What can you tell Kevin to say and do to assist Mr. Walker?
• Apologize and empathize with Mr. Walker by saying something such
as: “I am sorry that you did not enjoy your stay at Tiki Resort. I would
also be upset if all those things happened to me.”
• Speak slowly and calmly
• Ask probing questions to get as much information as needed about the
problem
• Offer a solution such as contacting the resort directly to follow up on
the complaint. The resort could have advised all guests that there was
a large group in house. Follow up to receive a refund or a portion of the
money back for giving Mr. Walker the wrong category of room when he
checked in.
• Offering Mr. Walker a discount on his next booking with Raylan Travel.
• If Mr. Walker continues to be upset after offering the solutions, transfer
the call to the travel agency's owner or manager.

Module 11:
Electronic Booking Tools
Module Prerequisites • Encode and decode airline, currency, country, city and airport names.
Before beginning this • Geographically map journeys.
• Describe standard features of airline, hotel and car rental products and
services.
• Sign in and out of the GDS system (Lesson 1).

• Encode and decode city, airport, airline, aircraft and country names
(Lesson 1).
• Retrieve PNRs and interpret PNR data (Lesson 2).
Module Learning • Display and interpret flight schedule and availability displays (Lesson 3).
Objectives
• Request return schedule/availability displays (Lesson 4).
you will be able to: • Identify the code share, alliance and low cost carrier products (Lesson 4).
• Book flights and create a PNR (Lessons 5 and 6).
• Add and modify general remarks, frequent flyer data and customer
contact information to the PNR (Lesson 7).
• Add and modify OSI, SSR service requests to the PNR (Lesson 8).
• Add advance passenger information to the PNR (Lesson 8).
• Cancel and change PNR elements (Lesson 9).
• Divide passengers from a PNR (Lesson 9).
• Request seat assignment (Lesson 10).
• Display seat maps and book seat numbers (Lesson 11).
• Locate car rental information and book car rental products (Lesson 12).
• Display and interpret car rental company rates and conditions (Lesson
13).
• Encode/decode hotel company names (Lesson 14).
• Display hotel room availability (Lesson 14).
• Display and interpret hotel rates and modify a booked hotel segment
(Lesson 15).
• Request and interpret airfare displays (Lesson 16).
• Display and read the fare notes/rules (Lesson 17).
• Auto-price air itineraries and create a TST to store the fare (Lesson 18).
• Issue airline tickets (Lesson 19).
• Locating, pricing and requesting optional airline ancillaries (Lesson 19).
• Issue the Electronic Miscellaneous Documents (EMDs) (Lesson 20).
• Access and manage queues (Lesson 21).
• Use the HELP function to locate system information and entries (Lessons
22/23).
Module 11: Electronic Booking Tools 835

Module Introduction
This Module simulates the functioning of a GDS system. You must study it
entirely online. You can access the module via your IATA User Account.
Attachment D provides more information on how to access this module and
best practices in managing your course study.
You will also be invited to download a Course Workbook after you log in and
start your Module study. The workbook is designed to be used in conjunction
with Module 11. It provides navigation instructions, a summary list of key
entries (GDS commands), and instructions on how to access the free-form
emulator. The Emulator is an area where you can freely practice GDS
functionality outside of the programmed lessons. There are exercises that
helps you work in the emulator.
IMPORTANT!
Monitor your login time as there is a limit of 45 login hours to complete the
lessons and practice in the emulator. Do not spend more time than necessary
in the lessons or the emulator to avoid consuming login hours before you
complete the Module study.
Now, log into Module 11 in the IATA LMS to begin your GDS functionality
training.
836 Module 11: Electronic Booking Tools

Module 12:
Fundamentals in Air Fares and Ticketing
Module Prerequisites • Identify, locate and name countries and cities.

Before beginning this • Arrange itineraries with minimal if no backtracking.
• Identify local currencies.
• Decode 3-letter city and airport codes.
• Interpret airline reservation data, terms, definitions and codes.
• Source data from the Fare Lookup Tool (Unit 12.1).

• Name the points in a journey and define terms used in pricing journeys by
air. (Unit 12.2).
• Match city/country names with the correct IATA Traffic Conference areas
Module Learning and identify the correct global indicator based on the routing flown
Objectives (Unit 12.3).
By completing this Module, • Describe the types of pricing units (Unit 12.4).
you will be able to: • Identify and interpret characters in fare basis codes for restricted and
unrestricted fares (Unit 12.5).
• Demonstrate the use of local currencies and Neutral Units of Construction
in publishing air fares plus procedures for converting and rounding
(Unit 12.6).
• Distinguish the characteristics between routing and mileage type fares
(Unit 12.7).
• Identify and categorize types of Q surcharges in fare breakdowns
(Unit 12.8).
• Identify taxes/fees/surcharges collected on tickets (Unit 12.9).
• Interpret data displayed in ticket data elements (Unit 12.10).
• Explain the purpose and use of upsell fares and differentiate them from
traditional fares (Unit 12.11).
• Minimize risks in accepting credit card form of payment (Unit 12.12).
• Interpret children and infant fare discount rules (Unit 12.13).
• Define and interpret restricted fare conditions (Unit 12.14).
• Demonstrate the use of the Electronic Miscellaneous Document
(Unit 12.15).
• Explore alternative pricing using consolidator and net fares (Unit 12.16).

Module Introduction
The units in this module will help you gain considerable advantage over other
travel professionals who have not had similar training. You will be better able to
serve your travel customers by interpreting and advising air fares and their
rules.
Unit The Fare Lookup Tool

Access and use the Fare Lookup Tool online. This is the
1 database for training, etc. fares, rules, TFCs, mileages.
Introduction to Essential Pricing Terms

Unit Examine basic terms related to journey pricing.
2 It is important to have a good grasp of the meaning of the terms in

order to interpret rules correctly.
Geography, Tariff Conference Areas and

Unit Global Indicators
3 Define IATA areas, subareas and various global direction codes

based on the routings flown.
Journey and Pricing Unit Anatomy

Unit Identify the general types of pricing units such as one way, round, circle
and open jaw trips. A pricing unit can represent the whole or part of a
4 journey that has the potential to be ticketed separately. This unit will
also discuss the anatomy of pricing units.
Fare Basis Codes and Fare Types

Unit Grasp the difference between cabin class and booking class and
5 determine the right booking class code for a fare. Understand the fine
differences between normal and special or restricted versus unrestricted
fares.
840 Module 12: Fundamentals in Air Fares and Ticketing

Currency Rules
Unit When travel is indirect, with via points rather than point-to-point, using
6 NUCs enables pricing of multi-segments that would otherwise have

different currencies. Learn about the IATA Rate of Exchange and how
to round.
Carrier Mileage and Routing Fares

Unit What happens when there are no direct flights? Can a direct fare also be
7 quoted even if the itinerary includes an intermediate point? Read this unit
to answer these questions and help you determine when to refer to
airline routing tables and how to read carrier route maps.
Q Surcharge
Unit Aside from the fare, pricing includes surcharges set by airlines
8 and/or airports, represented as a Q. Its exact placement

in the fare breakdown is an indication of who amongst the
transporting carriers have a claim on the Q amount.
Taxes, Fees and Charges

Unit Identify the various types of ticket taxes collected and how they
9 appear in the currency of payment instead of their filed currency.
The Ticket
Unit Read and interpret data elements in an electronic ticket. While each
10 GDS has its own ticket layout, the data elements must follow industry
specifications.
Upsell Fares
In an effort to enable travel intermediaries (travel agents) to sell more
Unit than just the seat on an aircraft and to create more product choice for
11 customers, airlines introduce a hierarchy of fares for every booking

class called “bundled”, “branded”, “family”, or “upsell”. These product
names essentially mean the same thing: a series of hierarchical or
tiered fares (seat alone; or seat + ancillaries packaged at higher
levels) booked in the same booking class (RBD).

Credit Cards
Unit Avoid chargebacks and debit memos by learning the proper acceptance
12 procedures for credit card payment at the point of sale.
Children and Infant Fares

Unit Locate and interpret the discount rule, if any, for accompanied children
13 and infants.
Restricted Fares and Conditions

Unit Restrictive fare types exist for travel in all cabin classes with rule
14 conditions applying various levels of limitations. Always read fare

rules/notes carefully and interpret their conditions.
Electronic Miscellaneous Documents

Unit Collect reservations change fees using an EMD upon rebooking
15 travel dates for restricted fare tickets. Like Electronic Tickets, EMDs
are virtual documents that are issued to cover a variety of miscellaneous
charges from checked baggage to ticket refunds.
Consolidator and Net Fares

Unit Trace the history of net fares and how to offer fares available through
16 commercial wholesalers or consolidators. Distinguish between IATA

and non-IATA travel agents.

The topics in the Module are sequenced from simple to complex starting with
an explanation on how to use the Fare Lookup Tool.
To simplify the technical language in the original tariff rules, this module
includes a series of units that explain the jargon used. It also helps classify
geographical areas for purposes of international journey pricing.
Subsequent units teach fundamentals of currency conversion and the rounding
process.
You will explore the various fares that automated systems apply to journey
pricing and learn to interpret the system's fare calculation. Each fare quote is
displayed in a linear fare breakdown that shows the string of cities and carriers
in the journey plus the corresponding fares.
Given the large assortment of reduced fares, not all restricted type fares can be
included in this module.
In addition to air fares and their rules, the module also explains the
fundamentals of Tax/Fee/Charge collection. Various TFCs can sometimes add
up to half of the total amount collected upon ticket issuance.
There are separate units on Electronic Tickets and credit card payment. Then
after completing special fares, you are introduced to the use of the Electronic
Miscellaneous Documents (EMD).
The last unit provides an overview of consolidator and net fares.
Important Notes
Although extracts used in this module are based on current rules at the time of
writing, under no circumstances should you use the Fare Lookup Tool as the
reference when quoting fares and rules to a prospective customer.
GDS fare table displays are for illustration purposes only and may not match
exactly with the fares presented in the Fare Lookup Tool.
Note that entries displayed in the Electronic Ticket and EMD images are those
prescribed by IATA Resolutions and may not necessarily reflect individual GDS
layout. For example, the use of the code XT for combined taxes/fees/charges is
no longer used to show TFC data in the ET. Instead 99 occurrences of new
TFC data elements and another 99 occurrences of paid TFC amounts must be
provided.
Disclaimer
International air fares and ticketing is a dynamic and changing field of study.
The content of this course material is accurate at the time of publication.
However, regulatory changes may occur during the validity period of this
course that can affect course content.
IATA makes an addendum available each year that explains changes from one
course edition to the next and a Stop Press. You may find this list in your LMS
account.

Fundamentals in Air Fares and Ticketing–

Activity Workbook–Attachment E
This module comes with a Workbook that contains activities and exercises that
stimulate your ability to analyze rules and put something you have learned
(theory) into use (practice).
The activities related to fare construction and ticketing will give you an idea of
the type of questions that are likely to be asked in the course examinations.
Recommendations
Here are some tips to make the best use of this training Unit:
• Study all subjects in sequence. Do not skip subjects.
• Read explanations carefully.
• Complete the activities and exercises of each section. Work carefully
through each activity. Then compare your answer with the answers given
at the end of the Workbook. If your calculations and/or corresponding fare
breakdowns are incorrect, trace your activity calculations once again to
learn where you went wrong.

Symbols and Abbreviations

Within the context of this Unit, the following symbols and abbreviations are
used:
Symbol Meaning Example
/ either or SEL/TYO means either Seoul or Tokyo
- from/to SEL-TYO from Seoul to Tokyo
and, or SEL-TYO both Seoul and Tokyo Seoul or
Tokyo
~ rounded to USD123.24 ~ means USD 123.24 is rounded
123.00 to USD 123.00
| break point BAH BAH is used as the fare break
| point.
H# round up to H5 round up to higher unit of 5
higher unit
i.e. that is
e.g. for example
N# round to the N1 round off to the nearest one
nearest unit
NA not applicable HIP NA Higher intermediate point check
not applicable
NIL applied but no HIP NIL HIP applied but none found
result
O D from fare com- O D fare means fare from origin to desti-
ponent origin to nation of the fare component
fare component
destination

12.1 The Fare Lookup Tool
• Access the online Fare Lookup Tool (Unit 12.1.1).

• Use the Fare Lookup Tool to decode and encode city/carrier/country
names, get TPMs and check fare rules (Unit 12.1.2).
• Interpret the content of fare tables contained in the Fare Lookup Tool
Objectives
Establishing the correct fare is the most important part of selling air transpor-
tation. The correct fare is the lowest fare the passenger is legally entitled to. It
is important to be familiar with this subject if you wish to provide good service
and accurate advice to travel customers. Errors in fare calculation may lead to
the rejection of the ticket by airlines, can cause inconvenience to the passenger
and incurs losses for the travel agency.
By familiarizing yourself with the Fare Lookup Tool, you will be able to make
the most efficient use of its content to price the journeys presented in this
Module.
Access to the Fare Lookup Tool is provided with this Unit. It is your source of
air fares, fare rules, taxes/fees/charges and other information you will need to
price journeys.
12.1.1 Access to the Fare Lookup Tool Online

Online access to the Fare Lookup Tool is essential for this module study. This
is your database of airfares and fare that this Module builds on.
• Google ChromeTM browser, Javascript enabled
• Minimum screen resolution of 1024 x 768 pixels
• Acrobat Reader version 11 or above
• HTML-enabled email client (to be able to properly read emails generated
by the system)
The Fare Lookup Tool application is accessible only from the IATA LMS
through your User Account (My Bookings). It cannot be downloaded or saved
to the hard drive. It will automatically run from the IATA course profile. Your
access to the application will end with the expiry of your course enrollment. The
application does not run on phone and tablet mobile devices due to lack of
sufficient screen space on these devices. This license is limited to one user.
Instructions:
1. From your Google ChromeTM browser, go to http://training.iata.org/signinup
2. Enter your IATA user name and password codes.
3. You will find yourself in your IATA User Account My Bookings. Locate the
course title “Foundation in Travel and Tourism” and mouse click on the
Open course button.
4. Access to information in the Fare Lookup Tool is in the application. There is
no downloading process. As soon as your computer has processed the
initial information you can begin navigating between the different features
of the Fare Lookup Tool application.

5. Once you click on the link to access the Fare Lookup Tool, your must
accept the Terms of Use.
Figure 12.1.1—Click Terms of Use
Unit 12.1: The Fare Lookup Tool 847

12.1.2 Fare Lookup Tool Contents

A menu on the left lists the sections available.
Figure 12.1.2—Fare Lookup Tool Menu of Sections

12.1.3 Coding and Decoding

This section will be helpful when you want to know what is the city code for a
certain city or a name for a city code. A list of city decodes shows the three-
letter city codes and their respective description in terms of city, state and
country location. You are also able to encode country names and decode
country codes. Click on the City Names tab of the Coding and Decoding menu.
To encode city names, type the city name in the “City” search field and press
enter. The repsonse will display the country code and city code for all of the
cities with the same name.
Figure 12.1.3—Enter the City Name to Encode it
Apart from city codes, there are also encodes/decodes for countries,
states/provinces/territories and airlines. Additionally, a list of cities sharing the
same airport is also provided in a separate section.
A separate list for airline codes may also be opened to provide the meaning of
two-character carrier codes. These airline codes could be 2-letters or half
alpha-numeric, e.g. SW for Air Namibia and 5Y for Atlas Air, Inc.

12.1.4 Fares
To navigate to the Fare Lookup Tool Fares and Rules, click on the Fares menu
tab at the top of the menu list.
Figure 12.1.4—To Access Fares and Rules
You can retrieve fares from the origin to the destination (the from-to cities) by
entering either the city code or city name.

Example: Fares from Delhi to Tokyo (DEL-TYO)
Figure 12.1.5—Sample Fare Display for from-to Cities ADD-NBO
The passenger is booked one way in H class on ET from ADD (Addis Ababa).
ET's published fare is USD 266.00 (or NUC 266.00).
Each column (from left to right) is described in more detail in the next table.
Column Description Example

Carrier Code Code of the fare-owning carrier. There are two airlines displaying
fares on the first page of the fare
Go to Fare Lookup Tool Coding and table: ET (Ethiopian Airlines) and
Decoding section and search for the KQ (Kenya Airways).
Airline Code to get the full carrier
name.

Column Description Example

Fare Basis The fare carrier's alpha-numeric HOWET is the fare basis code for
identification code for the fare. the fare of USD 266.00. The first
Sometimes the fare basis code is letter of this fare basis code is the
intuitive and can be decoded using booking class code. OW suggests it
logic. But not all fare basis codes is a one way fare. The fare basis
follow such patterns code ends with ET which is the
marketing airline's code.
Rule The Rule numbers appear as an The rule number for the HOWET
alpha-numeric codes. Rules define fare is 031/ESET.
the rule conditions such as stop-
To display and read the fare rule
overs, transfers and seasonality.
simply mouse click on the rule num-
ber in the Fare Lookup Tool fare
display. The entire fare rule descrip-
tion will appear in a pop-up window.
The window can also be opened in
a new browser tab, printed and
saved to a folder.
Booking Code The single-letter code prescribed The booking code for the HOWET
that must be booked to be entitled fare is “H”.
to a fare. Often, the first letter of the
Fare Basis Code is the booking
code. The booking code also deter-
mines the cabin class service enti-
tlement. There could be many fares,
each with its own booking code, in
each cabin class.
OW/RT Identifies if a fare is for a one way The HOWET fare is a one way fare.
(OW) or return (RT) trip.
Local Currency Displays the fare amount in the The currency code displayed in the
currency shown in the third line of fare table header is “USD”.
the header labeled Currency.
To decode the currency code, go to
the IATA Rate of Exchange (IROE)
menu tab and search by country
where travel begins to determine
the full currency name. (CNY =
Chinese Yuan)
NUC Neutral Unit of Construction - The HOWET fare in NUCs is
shown alongside the local currency 266.00.
fare that is used in fare construc-
tion.
MPM Maximum Permitted Mileage be- The MPM for the HOWET fare is
tween the “From/To” cities. 3000.
GI Global Indicator - an important fac- For ADD-NBO fare, the global
tor in selecting the fare based on direction of travel is EH (Eastern
routing travelled. Hemisphere).
Branded Also known as “fare families”, these This column is blank for the dis-
are packaged fares. Branded fares played ADD-NBO fares. It means
offer the same fare type at different that the fares displayed are basic
levels depending on the extras fares. Any inclusion of ancillaries
needed, such as inclusion of would be defined by the fare rule.
checked baggage and ability to
change booked flights.
Note: The fares and rules of this Training Extract should be used for training
purposes only, i.e. not for actual selling purposes.

12.1.5 Ticketed Point Mileages

Another key section in the Fare Lookup Tool is the table of Ticketed Point
Mileages (TPMs). A TPM is the distance between pairs of cities using non-stop
sector mileages. Each TPM is assigned a specific two-letter global indicator.
Global indicators will be discussed in detail in a later Unit.
TPMs are necessary when pricing indirect travel with intermediate connections
and stopovers–and when pricing mileage based fares.
To retrieve TPM values, go to the Fare Lookup Tool menu tab Labelled
“Ticketed Point Mileages (TPMs)”.
Figure 12.1.6—Ticketed Point Mileages Menu Tab

Click on Ticketed Point Mileages (TPMs) to see the menu.
Figure 12.1.7—TPM Menu Display
In the Code field, enter the city code of the first ticketed point in the fare
component. As soon as a city code is entered in the first field, another column
appears. Just press the TAB key to enter the next city code in the next box. The
city codes must be listed in the same order as they appear in the journey.
Example: BEY ME MIL LH FRA SK CPH SK BER LH REK
TPMs: 1604EH 309EH 422EH 227EH 1503EH
The city name, TPM value and corresponding global indicator (GI) are
automatically displayed below each sector.
In later units you will find schematic diagrams of itineraries with one or more
arrows to represent the direction of the fare(s) quoted. Each sector is also
accompanied by the respective TPM/GI (global indicator).
To retrace the TPMs shown, enter the city codes in the TPM menu.

Figure 12.1.8—Sample Routing with TPMs
To start over and/or remove extra columns that are unused, click Remove.
Study Check 12.1
Provide the city codes and respective country names.

City Name (Country Code) City Code Country Name
1. Frankfurt (DE)
2. Paris (FR)
3. Paris (US)
4. Newcastle (GB)
5. Newcastle (ZA)
6. London (US)
7. London (GB)
8. London (CA)
9. East London (ZA)
10. Hong Kong (HK)
11. Singapore (SG)
12. Wellington (NZ)

City Name (Country Code) City Code Country Name

13. Florence (IT)
14. Florence (US)
15. Alicante (ES)
16. Birmingham (GB)
17. Birmingham (US)
18. La Paz (BO)
19. La Paz (MX)
20. Ouagadougou (BF)
Fill in the blanks

To become familiar with quoting fares between cities, identify the local currency
in which the fares for the following city pairs are published (identify the currency
code and name):
1. New York (NYC) to London (LON): Fares for this city pair are published in
currency.
2. Hong Kong (HKG) to Singapore (SIN): Fares for this city pair are published
in currency.
3. Rio de Janeiro (RIO) to New York City (NYC): Fares for this city pair are
published in currency.
4. Zurich (ZRH) to Bangkok (BKK): Fares for this city pair are published in
currency.
5. Moscow (MOW) to Frankfurt (FRA): Fares for this city pair are published in
currency.
Multiple Choice–Encircle the letter of the correct TPM.
6. BZE CUN
(a) 270
(b) 997
(c) 2126
7. CAS ACC
(a) 3751
(b) 1978
(c) 1958

8. DAC CMB
(a) 131
(b) 1341
(c) 963
9. DBV LUX
(a) 957
(b) 579
(c) 759
10. Highest TPM sector in the routing DLA-IST-DXB-DOH

(a) DLA IST
(b) IST DXB
(c) DXB DOH
11. Indicate the TPMs on the blank lines below the segments shown.
Journey: IKT S7 MOW SU LED SU LON AC YHZ
TPMs: _______ _______ _______ ________
Try Activity 1 in your Workbook.
12.1.6 Unit Summary

• The Fare Lookup Tool is a compilation of airline fares, rules and mileages
needed to price journeys and issue tickets.
• Fare Lookup Tool
• A menu helps navigate the Fare Lookup Tool to access journey pricing
elements
• The Fare Lookup Tool includes a feature for airline/city/country encodes
and decodes.
• Fares and mileages (MPM/TPM) are sourced from the Fare Lookup Tool.

Apply Your Learning
“Uh, uh, the system is down”.
Although all travel agencies and airline sales offices use the pricing engines of
Global Distribution Systems (GDSs) to price an itinerary, professional travel
agents should be able to interpret automated fare quotes and electronic ticket
data. The best way to develop your expertise in this area is by learning the
principles and procedures behind journey pricing. Lack of skills in journey
pricing and ticketing could result in undercollection and costly debit memos.
Ask the agency's accounting department what percentage of debit memos
received are a result of an automated fare quote error or under collection.

12.2 Introduction to Essential Pricing Terms
• Identify the origin, destination and intermediate points of a journey

(Unit 12.2.1).
• Define basic terms used in pricing journeys by air (Unit 12.2.2).

Objectives
The travel industry is large and complex, relying on standard terminology to
By completing this Unit, accurately communicate between different participants. This Unit describes
you will be able to: standard terms related to pricing and ticketing, as defined by IATA Resolutions.
It is important to know the correct meaning of the terms in order to interpret and
communicate the rules of a fare correctly. Misinterpretation of terms and rules
can result in costly pricing errors.
12.2.1 Identifying Points in a Journey

A journey is defined as the origin to destination of an entire ticket.
Origin refers to the first city of departure, while destination is the last stopping
point in the journey.
Intermediate points refer to the points between origin and destination, via
which the passenger travels.
Figure 12.2.1 displays an itinerary from Dublin with:
– four flight segments
– three intermediate points.
The GDS prices this journey at EUR 1839.00.
1 LH 979 Y 23AUG 4 DUBFRA HK1 1210 1515 23AUG E 0 321 M

2 LH1304 Y 23AUG 4 FRAIST HK1 2140 0135 24AUG E 0 320
3 CA 5232 B 31AUG 5*ISTPEK HK1 0125 1535 31AUG E 0 77 W
3 CA 421 B 04SEP 5*PEKHND HK1 1540 2000 04SEP E 0 321 M

DUB
XFRA LH 977 Y 23AUG 0910 YFF77WW 2P
IST LH 1300 Y 23AUG 1255 YFF77WW 2P
BJS CZ 680 Q 31AUG 0735 Q2RCWTR 2P
TYO MU 8737 H 04SEP 0825 HSFWCJ 2P
EUR 1839.00 23AUG DUB LH X/FRA LH IST M874.58CZ BJS

460.00MU TYO753.54NUC2088.12END ROE0.880417
EUR 97.00-YQ
EUR 103.93-YR
EUR 39.37-YQ
EUR 12.88-UP
EUR 21.33-RA
EUR 20.00-TR
EUR 3.00-M6
EUR 11.70-CN
EUR 2148.21
Figure 12.2.1—Sample DUB-FRA-IST-BJS-TYO itinerary
Unit 12.2: Introduction to Essential Pricing Terms 859

Dublin (DUB) is the origin while Tokyo (HND/TYO) is the destination. Other
cities in between (Istanbul-IST and Beijing-PEK/BJS) are called intermediate
points.
This schematic drawing marks the itinerary cities and the arrow illustrates the
sequence of travel.
Figure 12.2.2—Schematic map of a one way journey
Identify the origin, destination and intermediate points in the figures 12.2.3,
12.2.4 and 12.2.5.
LON
NYC
NBO
MRU
Figure 12.2.3—Schematic diagram map of a one way journey NYC – LON – NBO –
MRU

Origin point: NYC

Destination point: MRU
Intermediate points: LON and NBO
HKG
BOM MNL
BKK
SIN
Figure 12.2.4—Schematic diagram map of a return journey BOM – BKK – HKG –

MNL – SIN – BOM
Origin point: BOM

Destination point: BOM
Intermediate points: BKK, HKG, MNL and SIN

SEL TYO SFO

LAX
Figure 12.2.5—Schematic map of a return journey SEL – SFO – LAX – TYO – SEL
Origin point: SEL

Destination point: SEL
Intermediate points: SFO, LAX and TYO

A client in Dubai calls you and asks for help in planning his business trip. From
DXB, he wishes to visit AMS, BCN, LON, MAD, ROM and return to DXB, but
not necessarily in that order. Rearrange the cities as DXB-BCN-MAD-LON-
ROM-DXB on the map below. Draw an arrowed line between the cities in the
correct journey sequence and direction.
Figure 12.2.6—Schematic blank map
Key Learning Point

In the context of pricing and ticketing a journey by air, “point of origin” is the city
where the journey begins, “destination point” is the end city in a journey and
“intermediate point” is any city in between.

12.2.2 Frequently Used Terms

The following list defines common pricing terms in alphabetical order. They
reference sample routing in Figure 12.2.1.
Term Definition
Accompanied Refers to children and infant fares when traveling with a
person paying an adult fare
Adult A person who is 12 years old or older on the date of
commencement of travel
Aggregator An third party data company that receives fares from
airlines and stores them for redistribution to GDS
systems.
Banker's Selling The rate used to convert fares and other charges in one
Rate BSR currency to another currency.
Base Fare The total applicable fare for a journey, appearing in the
ticket “fare box” element:
including stopover charges and fare surcharges defined
by the applicable fare rule, plus any applicable Higher
Intermediate Fare or Excess Mileage Surcharge
excluding TFCs (Taxes, Fees and Charges).
Breakdown (fare) A line of data in a fare quote display with details of the
fare for an itinerary, describing the journey's ticketed
points, transporting airlines and fare amounts per sector
or component.
In Figure 12.2.1 the fare breakdown data is
DUB LH X/FRA LH IST M874.58CZ BJS 460.00MU
TYO753.54NUC2088.12END ROE0.880417
Carrier Another word for airline
Child (CH) A person who has reached his/her second birthday but
not his/her 12th birthday (2-11 inclusive) as of the date of
commencement of travel, benefitting from a discount on
the adult fare
Combination Two or more fares combined to price a journey by air and
issued on one ticket.
In figure 12.2.1, the fare for the journey is a combination
of three one way fares:
DUB-IST one way YFF77WW fare

+ IST-BJS one way Q2RCWTR fare
+ BJS-TYO one way HSFWCJ fare
Connection Also known as a “no-stopover” point, it is an intermediate
ticketed point at which the scheduled local time of arrival
and departure is less than 24 hours. A connection counts
as a transfer
In Figure 12.2.1, arrival in FRA is on the same day as
departure from FRA, so FRA is a connection and a
transfer point

Term Definition
Country of The country from which travel on the first international
Commencement sector takes place (see definition of sector).
(COC)
In Figure 12.2.1, the first international sector is DUB
(Ireland) to FRA (Frankfurt). Therefore, the COC is
Ireland.
Suppose the journey is: SIN-SYD-YVR
The first international sector is SIN-SYD. Therefore, the
COC is Singapore.
Country of The country where payment is made by the purchaser of
Payment (COP) a ticket.
In Figure 12.2.1, if the ticket is purchased in Dublin by the
passenger, the COP is Ireland. However, if the ticket is
purchased in TYO (Japan) by the passenger's relative,
then the COP is Japan.
Departure The day/time of the flight on which the passenger is
booked/ticketed to travel.
Destination Also called end destination, the last ticketed point in the
journey.
In figure 12.2.1, TYO is the last ticketed point in the
journey and therefore the journey destination. In journeys
that return to the same point of origin, the origin and
destination cities are the same.
Direct Fare A published fare between two points.
In figure 12.2.1, three direct fares produce the lowest
fare:
1. DUB-IST YIF NUC 1698.69
2. IST-BJS BOWTK NUC 1100.00
3. BJS-TYO BHOFFCC NUC 1038.09
Direct Flight Any flight with a single flight number, irrespective of
whether there are enroute stops and/or changes of
aircrafts; a direct flight may be a non-stop flight or a flight
with stops enroute where the passenger continues on to
the next stop on the same flight.
In Figure 12.2.1, four direct flights are booked:
LH 979
LH 1304
CA 5232
CA 421

Term Definition
Domestic Within the same country. For example, if the itinerary in
Figure 12.2.1 adds one more flight segment from HND
(TYO) to OSA (KIX), the segment is a domestic one.
1. LH 979 Y 23AUG 4 DUBFRA HK1 1210 1515
23AUG E 0 321 M
2. LH1304 Y 23AUG 4 FRAIST HK1 2140 0135 24AUG
E 0 320
3. CA5232 B 31AUG 5*ISTPEK HK1 0125 1535
31AUG E 0 77W
4. CA 421 B 04SEP 2*PEKHND HK1 1540 2000
04SEP E 0 321 M
5. JP
End-on The combination of consecutive pricing units at the
Combination journey's fare break point
In Figure 12.2.1, each of the pricing units are end-on
combinations because each pricing unit begins and ends
at a fare break point (or fare construction point). There
are three consecutive pricing units.
DUB LH X/FRA LH IST M874.58CZ BJS 460.00MU
TYO753.54
DUB-IST 874.58
IST-BJS 460.00
BJS-TYO 753.54
Fare The amount charged for the transportation of a passen-
ger, excluding taxes, fees and charges. In Figure 12.2.1,
the fare collected is EUR 1839.00.
Fare Breakpoints See fare construction points.
Fare Component A portion of an itinerary between two consecutive fare
construction points. If the journey has only one fare
component, the points of origin and destination are the
only fare construction points.
In figure 12.2.2, there are three fare components.
Fare component 1: DUB-IST

Fare component 2: IST-BJS
Fare component 3: BJS-TYO
Let's examine a different journey: FRA-IST-SEL-TYO

Term Definition

FRA
IST LH 1298 H 15OCT 0905 MLOPJ 15OCT 15OCT 2P
XSEL OZ 552 M 19OCT 1730 MLOPJ 19OCT 19OCT 1P
TYO OZ 106 M 20OCT 1510 MLOPJ 20OCT 20OCT 1P
EUR 741.00 15OCT FRA LH IST OZ X/SEL OZ TYO846.88NUC

846.88END ROE0.874972
EUR 46.40-YQ XT EUR 41.49-OY EUR 9.50-DE EUR 31.24-RA
EUR 136.11-YQ EUR 20.00-TR EUR 3.00-M6 EUR 7.83-BP
EUR 113.06-XT
EUR 1036.57
This journey fare type is MLOPJ for the fare of EUR

741.00. There is only one fare component with fare
construction points FRA and TYO.
Fare Construc- The terminal points of a fare component, also called fare
tion Points (FCP) break points; the fare is quoted from and to these points.
Fare Type Also known as fare basis code, it represents the type of
fare selected for the fare component terminal points.
In figure 12.2.1, there are three fare components, each
with its own fare and fare type: YFF77WW, Q2RCWTR
and HSFWCJ.
From ... to ... Specifies FROM where travel originates and TO the
destination; the fare is quoted in the FROM-TO travel
direction and not the other way around.
In figure 12.2.1, the first fare component is priced from
Dublin to Istanbul (which would be different from the fare
from Istanbul to Dublin).
Gap A gap is a break in the journey where the passenger
travels between two ticketed points by ground or water
transportation. In this example, the passenger wishes to
continue the journey from Japan to Australia. However,
instead of traveling by air from Tokyo to Sydney, he will
travel from Osaka (KIX). He will travel by train from Tokyo
to Osaka and continue the journey by air from Osaka.

Term Definition
1 TK1976 Y 23AUG 4 DUBIST DK1 1055 1715 23AUG E 0 73J M

2 CA5232 B 31AUG 5* ISTPEK DK1 0125 1535 31AUG E 0 77W
3 CA183 B 31AUG 5* PEKHND DK1 1710 2130 31AUG E 0 321 M
4 ARUNK
5 QF 34 L 05SEP 2 KIXSYD DK1 2040 0730 05SEP E 0 330 M
Segment 4 (ARUNK) in the itinerary represents the

journey gap, where the passenger travels by train from
Tokyo to Osaka. A gap is also called a surface segment
or sector.
Gateway The first point of arrival and last point of departure in a
country or georgraphic area. Consider the journey in
Figure 12.2.1 where travel is from Europe to Asia.
The last departure from Europe is IST. Therefore, IST is
the Europe gateway. The first arrival point in Asia is BJS.
Therefore, BJS is the Asia gateway for this journey.
Indirect Route A continuous air route other than a direct route. An
indirect route is booked from DUB to IST, with a change
of flight in FRA.
Infant (IN) A person who has not reached his/her second birthday
as of the date of commencement of travel.
Interline or A passenger who transfers (connects) from one airline to
online transfer another airline at a stopover or connection point. An
online transfer is a connection between two flights of the
same airline company.
In figure 12.2.1, BJS is an online connection (CA5232 to
CA183).
Intermediate A via point or enroute transfer point which could be a
Point stopover or a connection.
2 INTERMEDIATE
POINTS
DUB IST X/BJS TYO
ORIGIN DESTINATION
IROE IATA Rate The rate of exchange published by IATA to convert fares
of Exchange published in NUC (see Neutral Unit of Construction) into
local currency fares and vice versa.
In figure 12.2.1, the IROE used to combine NUC fare
values and convert to EUR currency is 0.853007.
Journey The route traveled by air from the origin to the destination
of the entire ticket
In figure 12.2.1, the journey is from DUB to TYO.

Term Definition
Leg A return or round trip journey generally has two legs, the
departure leg (or outbound leg) and the return leg
(inbound leg).
In the journey DUB – IST – X/BJS – TYO – DUB, the
departure or outbound (OB) leg is from DUB to TYO
which is the farthest geographical point from DUB (also
called the point of turnaround – see definition).
The return or inbound (IB) leg is from the point of
turnaround TYO to origin DUB.
Local Currency The currency in which international fares are published
Fare (LCF) for the country of commencement (COC)
In figure 12.2.2, if the ticket is purchased in DUB
(Ireland), then the LCF currency is the euro (EUR).
No Stopover Also known as “connection”, there is no stopover taken
Point when departure takes place less than or exactly 24 hours
after arrival. This is indicated by the code “X/”.
Figure 12.2.2 illustrates X/BJS which means that BJS is a
connecting point between IST and TYO.
Neutral Unit of Fares are published in the local currency traded in the
Construction country where travel begins (USD, EUR, CAD, KES,
(NUC) INR….). Sometimes it becomes necessary to combine
fares published in different currencies in one ticket. It is
not possible to collect a total fare for a journey unless all
amounts are in one same currency.
Therefore, fares are also published in NUC, a fictitious
currency used in the airline industry to enable a combi-
nation of different fares published in different currencies,
which are then totaled and converted into the currency of
the country of commencement of travel (COC).
In Figure 12.2.1, the lowest fare is produced by pricing
each individual sector (DUB-IST + IST-BJS + BJS-TYO).
It would not be possible to collect the total fare for the
journey unless each fare is published in the same
currency. Hence, the fares are collected in NUC and
added together to convert the total NUC amount into the
currency of the country of commencement of travel (COC
Ireland – EUR) using the IATA Rate of Exchange (IROE).

Term Definition
Point of turn- In return journeys, where the journey ends at origin, the
around point of turnaround is normally the farthest geographical
destination from origin and the point at which the travel
direction changes.
Suppose the journey is DUB – IST – X/BJS – TYO –
DUB.
Origin: DUB
Destination: DUB
Point of Turnaround: TYO (farthest point from DUB)
Point-to-point In pricing, a point-to-point fare represents the fare for a
single, direct route flight segment; fare tables display
point-to-point fares between the from/to cities
In figure 12.2.1, the fare is made up of three point-to-
point fares (one per flight segment):
Sector Point-to-point fare Fare type (basis) code

DUB-IST NUC 698.69 YIF
IST-BJS NUC 1100.00 BOWTK
BJS-TYO NUC 1038.09 BHOFFCC

Term Definition
Reservation This is the booking code the airline designates for each
Booking Desig- fare type; often it is the first letter of the fare type code
nator (RBD) Code
In figure 12.2.1, the RBD is:
Y for fare component 1
B for fare component 2
B for fare component 3
Sector/Segment A city pair representing a portion of a journey flown by a

single flight.
Example:
DUB IST X/BJS TYO
SECTOR SECTOR SECTOR

OR OR OR
SEGMENT SEGMENT SEGMENT
Stopover A general rule states that a stopover exists when a

passenger departs from an intermediate point more than
24 hours after arrival; rules may indicate exceptions to
the 24–hour stopover rule (for example, a transfer is
considered a stopover if the transit time at the airport is
more than 6 hours); stopover points are also transfer
points
In figure 12.2.1, if departure from IST is eight days after
arrival in IST, IST is a stopover as well as a transfer.
2 INTERMEDIATE
POINTS
DUB IST X/BJS TYO
2
ORIGIN DESTINATION
TRANSFERS
1 1
O = STOPOVER X/ = NO STOPOVER
Subjourney Part of a larger journey that can be priced separately as a

one way or return Pricing Unit. In figure 12.2.1, the fare is
made up of three point-to-point fares (one per flight
segment). Therefore, the itinerary represents three one
way subjourneys:
Subjourney 1 DUB-IST NUC 698.69 YIF

Subjourney 2 IST-BJS NUC 1100.00 BOWTK
Subjourney 3 BJS-TYO NUC 1038.09 BHOFFCC
The total fare for the journey is the sum of the three one
way subjourney fares:
NUC 698.69 + NUC 1100.00 + NUC 1038.09 = NUC
2836.78

Term Definition
Terminal Points End points, i.e. origin and destination points; depending
on the context used these could be the beginning and
end of the sector or fare component. Example: DUB and
TYO.
Through Fare A fare applicable for travel between two fare construction
points via an intermediate point(s).
In figure 12.2.1, the lowest fare is produced by combining
direct fares between each point, instead of a through
fare.
Suppose the itinerary changes to DUB – IST – BJS and
the lowest fare applicable is as follows:

DUB
IST TK 1976 O 23AUG 1055 ON2PXOW 23AUG 23AUG 30
BJS TK 20 O 30AUG 0125 ON2PXOW 30AUG 30AUG 30
EUR 313.00 23AUGYYDUB TK IST TK BJS366.93NUC366.93END
EUR ROE0.853007
EUR 190.00-YR
EUR 12.88-UP
EUR 12.85-TR
EUR 528.73
BAG/SEAT AT A CHARGE MAY BE AVAILABLE-ENTER FXK
TICKET STOCK RESTRICTION
BG CXR: TK/TK
PRICED VC GP - OTHER VC AVAILABLE HR
The lowest fare quoted for the O class booking is a

through fare of NUC 366.93 (ON2PXOW) for travel DUB
TK IST TK BJS. This is a DUB-BJS through fare which is
applicable for travel via IST.
Ticketed Point All points in the journey displayed in a booked itinerary

and on ticket coupons.
In figure 12.2.1, DUB-IST-BJS-TYO are ticketed points.
Transfer Point An intermediate point where a change of service occurs
that is either a stopover or connection.
There are two types:
Online - A change from the service of one carrier to
another service of the same carrier.
Interline - A change from the service of one carrier to the
service of another carrier.

Term Definition
Transit Point A non-ticketed intermediate stop which is part of the flight
route.
Example:
CZ operates a flight (CZ680) from IST to BJS. This flight
stops in URC (Urumqi) on the way to BJS to refuel the
aircraft. Passengers do not deplane nor enplane in URC.
The passenger's ticket has a flight coupon from IST to
BJS. The transit city URC does not appear on any ticket
coupons because the passenger does not stopover nor
connect in URC. The passenger stays on the same flight
CZ680 in URC.
This term is often confused with “transfer point”.
Transit Time The time spent at one airport between arrival on one
flight and departure on the next flight. It means the same
as: “transfer time”
Key Learning Point

Note that a transfer point can be a stopover or no stopover point.
Study Check 12.2
Circle the letter of the correct answer in relation to the journey below:
1. Which is the journey's origin?

(a) Reykjavik
(b) Paris
(c) Seoul
(d) Ulan Bator
2. Which is the journey's destination?

(a) SEL
(b) REK
(c) PAR
(d) ULN

3. If this journey is priced as a through fare, which would be the fare

construction points?
(a) ULN and PAR
(b) SEL and ULN
(c) SEL and REK
4. How many transfers are there in this journey?

(a) 1
(b) 2
(c) 3
(d) 4
5. Which is the Europe gateway?

(a) REK
(b) ULN
(c) PAR
(d) SEL
6. Which is TRUE for the journey LON-ROM-X/DXB-HKG?

(a) It has 1 stopover and 1 transit point
(b) It has 2 stopover points
(c) It has 1 stopover and 1 transfer point
(d) It has 1 stopover and 1 no stopover point
7. Identify the country of commencement (COC) for the routing SIN-CMB-

BOM-MAA–FRA.
(a) Singapore
(b) Sri Lanka
(c) India
(d) Germany
8. A ticket from BOM to SIN is to be paid in Paris. Which rate will be used to
convert the Indian Rupee fare to Euro?
(a) IROE
(b) BSR as published by local banks
(c) BSR as published by IATA (ICER)
9. Which routing displays the most efficient and logical sequence?

(a) Johannesburg, Lilongwe, Lusaka, Maputo, Nairobi, Cairo
(b) Johannesburg, Maputo, Lusaka, Lilongwe, Nairobi, Cairo
(c) Johannesburg, Lilongwe, Maputo, Lusaka, Nairobi, Cairo

10. Consider this itinerary. Which is an online transfer point?

AL FLGT BK T DATE TIME FARE BASIS NVB NVA BG
DUB
IST TK 1976 L L 15OCT 1055 YIF 2P
BJS TK 20 L L 19OCT 0120 YIF 2P
TYO CA 183 Q Q 19OCT 1710 QLORCCC 19OCT 19OCT 2P
EUR 3071.00 15OCT18DUB TK IST TK BJS M3083.21CA TYO

516.70NUC3599.91END ROE0.853007
EUR 190.00-YR XT EUR 12.88-UP EUR 12.90-TR EUR 11.63-CN
EUR 62.01-YQ
EUR 37.41-XT
EUR 3360.42
BG CXR: TK/2*TK
(a) IST
(b) BJS
(c) TYO
12.2.3 Unit Summary

• Key to the correct interpretation of fare rules is understanding the basic
terms used.
• A journey is composed of fare construction points and may include
intermediate transfer points.
• A transfer point is an intermediate point and can be an online or interline
transfer.
• A direct flight may or may not be a nonstop flight.
• When counting transfers, fare construction points are excluded but
intermediate stopovers and connections are included.
• Prepositions such as “From...To...” are indicative of geographical appli-
cation and fare direction.
• Note that the terms in this unit are described only in the context of pricing
and ticketing.
Try Activities 2 and 3 in your Workbook.

Apply Your Learning
“Should we use Webster's Dictionary or the PAT Glossary of Terms?”
Should you have persistent difficulty in interpreting fare conditions, get into the
habit of looking at the provisions of fare rules and parse them to identify their
practical application.
To parse a routing description such as “between the origin and destination via
intermediate points” involves knowing the meaning of each term. No word is
taken at face value as this could have an impact on fare direction, geographical
location and other elements that lead to the correct fare quote.
However, technical definitions change depending on the context used. Airlines
may also file their own definition that could override the IATA one. Be sure to
check the carrier's general rules as well.

12.3 Geography, Tariff Conference Areas and

Global Indicators
• Define geographical hemispheres and Tariff Conference Areas 1, 2 and 3

(Unit 12.3.1).
• Define Tariff Conference subareas and subgroups within TC1, TC2 and
TC3 (Unit 12.3.2).
Unit Learning • Locate cities and countries in each Tariff Conference Area and subarea
By completing this Unit, • Define Russia in Europe versus Russia in Southeast Asia (Unit 12.3.3).
you will be able to: • Identify the various global indicators and direction codes based on the
flown routes (Unit 12.3.4).

The airline industry establishes its own geography, dividing the world into three
areas. Airline geography is for the most part based on standard geography with
some exceptions. For example, Tunisia and Morocco are considered Europe
and not Africa. Fares and rules are arranged according to geographical areas
called Tariff Conferences. Fare rules often reference these geographical areas
and their subareas. The geographical location of any point in an itinerary can
influence the applicable airfare.
12.3.1 IATA Areas of the World

The world is divided into two hemispheres: the Eastern and Western
Hemispheres.
The Eastern Hemisphere includes Tariff Conference Areas 2 and 3 (TC2 and
TC3), while the Western Hemisphere includes Area 1 (TC1).
Refer to Figure 12.3.1 for a view of the Map of Tariff Conference Areas.
Key Learning Point

The airline industry divides the world into three Tariff Conference (TC) Areas:
TC1, TC2 and TC3. Each Tariff Conference Area is divided into subareas. The
Eastern Hemisphere covers TC2 and TC3. The Western Hemisphere covers
TC1.
Unit 12.3: Geography, Tariff Conference Areas and Global Indicators 877
Figure 12.3.1—IATA Tariff Conference Areas of the World

12.3.2 Tariff Conference Subareas

Each IATA Tariff Conference Area is divided into subareas.
Some subareas are further divided into subgroups.
12.3.2.1 Subareas of Tariff Conference Area 1 (TC1)

Area 1 or TC1 covers the entire Western Hemisphere.
North America
Central America
Caribbean
South America
Figure 12.3.2—Map of Tariff Conference Area 1 and subareas

You will find the countries for each subarea below.

1. North America
Canada (CA) Mexico (MX)
USA (US) St. Pierre & Miquelon (PM)
2. Central America
Belize (BZ) Guatemala (GT)
Costa Rica (CR) Honduras (HN)
El Salvador (SV) Nicaragua (NI)
3. Caribbean Area
Bahamas (BS) Guyana (GY)
Bermuda (BM) French Guiana (GF)
Caribbean Islands* Suriname (SR)
* Caribbean Islands
Anguilla (AI), Antigua and Barbuda (AG), Aruba (AW), Barbados (BB),
Bonaire, Saba and St. Eustatius (BQ), Cayman Islands (KY),
Cuba (CU), Curacao (CW), Dominica (DM), Dominican Republic
(DO), Grenada (GD), Guadeloupe (GP), Haiti (HT), Jamaica (JM),
Martinique (MQ), Montserrat (MS), Saint-Barthélemy (BL), St. Kitts
and Nevis (KN), St. Lucia (LC), St. Vincent and the Grenadines (VC),
St. Martin, Trinidad and Tobago (TT), Turks and Caicos Islands (TC),
Virgin Islands–British (VG).
4. South America
Argentina (AR) Ecuador (EC) Venezuela (VE)
Bolivia (BO) Panama (PA)
Brazil (BR) Paraguay (PY)
Chile (CL) Peru (PU)
Colombia (CO) Uruguay (UY)
Second classification—See Figure 12.3.3
1. North Atlantic (NATL) sub-area
Canada, Greenland (GL), Mexico, and the USA which includes Alaska,
Hawaii, Puerto Rico and US Virgin Islands.
2. Mid Atlantic (MATL) sub-area
All of the Caribbean sub-area, Central America, South America plus
Panama Canal zone except Argentina, Brazil, Chile, Paraguay and
Uruguay. In other words, Anguilla, Antigua and Barbuda, Aruba, Bahamas,
Barbados, Belize, Bermuda, Bolivia, Bonaire Saba and St. Eustatius,
British Virgin Islands, Cayman Islands, Colombia, Costa Rica, Cuba,
Curaçao, Dominica, Dominican Republic, Ecuador, El Salvador, French
Guiana, Grenada, Guadeloupe, Guatemala, Guyana, Haiti, Honduras,
Jamaica, Martinique, Montserrat, Nicaragua, Panama, Peru,
St. Barthelemy, St. Kitts-Nevis, Saint Lucia, Northern St. Martin,
St. Vincent and the Grenadines, Saint Maarten, Suriname, Trinidad and
Tobago, Turks and Caicos Islands, Venezuela are in the Mid Atlantic
sub-area.
3. South Atlantic (SATL) sub-area

Argentina, Brazil, Chile, Paraguay and Uruguay (ABCPU).
You will sometimes find fare rules that may specify variations in the
composition of the sub-areas. The country composition of sub-areas may vary
depending on the rule being applied and depending on the TC crossing. In
such cases for the purpose of reference in those rules, you have to take note of
certain exceptions to the sub-area definitions. For TC31 fares, French
Guiana/Guiana/Suriname are considered part of South America only and not
part of the Caribbean.
Figure 12.3.3—Map of Traffic Conference Area 1 According Atlantic sub-areas

12.3.2.2 Subareas and Sub-groups of Tariff

Conference Area 2 (TC2)
Area 2 is divided into three subareas: Europe, Africa and the Middle East.
Europe
Middle East
Africa
You will find the countries for each subarea and each subgroup below.
1. Europe
Albania (AL), Algeria (DZ), Andorra (AD), Armenia (AM), Austria (AT),
Azerbaijan (AZ), Belarus (BY), Belgium (BE), Bosnia Herzegovina (BA),
Bulgaria (BG), Croatia (HR), Cyprus (CY), Czech Republic (CZ),
Denmark (DK), Estonia (EE), Faroe Islands (FO), Finland (FI),
France (FR), Georgia (GE), Germany (DE), Gibraltar (GI), Greece (GR),
Hungary (HU), Iceland (IS), Ireland (IE), Italy (IT), Latvia (LV),
Liechtenstein (LI), Lithuania (LT), Luxembourg (LU), Macedonia (MK),
Malta (MT), Moldova (MD), Monaco (MC), Morocco (MA),
Montenegro (ME), Netherlands (NL), Norway (NO), Poland (PL),
Portugal (PT) including Azores and Madeira, Romania (RO), Russia–west
of the Urals (RU), San Marino (SM), Serbia (CS), Slovakia (SK),
Slovenia (SI), Spain including Balearic and Canary Islands (ES),
Sweden (SE), Switzerland (CH), Tunisia (TN), Turkey (TR), Ukraine (UA),
United Kingdom (GB).

The IATA Europe subarea is further divided into regions or sub-groups.

Scandinavia is a region or subgroup within Europe, comprising the
countries Denmark, Norway and Sweden.
ESTONIA
LATVIA
NETHERLANDS
SWITZERLAND
GEORGIA
MALTA
TUNISIA
Scandinavia
Figure 12.3.5—TC2 Map of Europe
2. Africa
Africa is divided further into subgroups.
• Central Africa:
Malawi (MW), Zambia (ZM), Zimbabwe (ZW).
• Eastern Africa:
Burundi (BI), Djibouti (DJ), Eritrea (ER), Ethiopia (ET), Kenya (KE),
Rwanda (RW), Somalia (SO), Tanzania (TZ) and
Uganda (UG).
• Southern Africa:
Botswana (BW), Lesotho (LS), Mozambique (MZ), South Africa (ZA),
Namibia (NA), Eswatini (SZ).
• Libya (LY).
• Indian Ocean Islands:
The Comoros (KM), Madagascar (MG),
Mauritius (MU), Mayotte (YT), Reunion (RE), Seychelles (SC).
• Western Africa:
Angola (AO), Benin (BJ), Burkina Faso (BF), Cameroon (CM), Cape
Verde (CV), Central African Republic (CF), Chad (TD), Congo (CG),
Cote d'Ivoire (CI), Democratic Republic of Congo (CD), Equatorial
Guinea (GQ), Gabon (GA), Gambia (GM), Ghana (GH), Guinea (GN),
Guinea Bissau (GW), Liberia (LR), Mali (ML), Mauritania (MR), Niger
(NE), Nigeria (NG), Sao Tome and Principe (ST), Senegal (SN), Sierra
Leone (SL) and Togo (TG).

SEYCHELLES
MALAWI
Libya
Indian Ocean Islands
Western Africa
Southern Africa
Central Africa
Eastern Africa
Figure 12.3.6—TC2 Map of Africa

3. Middle East
Bahrain (BH), Egypt (EG), Iran (IR), Iraq (IQ), Israel (IL), Jordan (JO),
Kuwait (KW), Lebanon (LB), Oman (OM), Palestinian Territory (Occupied)
(PS), Qatar (QA), Saudi Arabia (SA), South Sudan (SS), Sudan (SD),
Syrian Arab Republic (SY), United Arab Emirates (AE), Yemen (YE).
12.3.2.3 Subareas of Tariff Conference Area 3 (TC3)

Area 3 is comprised of all of Asia and the adjacent islands (except the ones
included already in TC2); the East Indies, Australia, New Zealand, and the
neighboring islands in the Pacific Ocean (except those in TC1). TC3 is divided
into four subareas: South East Asia, South Asian Subcontinent, Japan/Korea
and South West Pacific.
South East Asia
South Asian Subcontinent
Japan / Korea
South West Pacific

1. South East Asia (SEA)

Brunei Darussalam (BN), Cambodia (KH), China excluding Hong Kong
SAR and Macao SAR (CN), Chinese Taipei (formerly Taiwan) (TW),
Christmas Island (CX), Cocos (Keeling) Islands (CC), Guam (GU), Hong
Kong Special Administrative Region (HK), Indonesia (ID), Kazakhstan
(KZ), Kyrgyzstan (KG), Laos (LA), Macao Special Administrative Region
(MO), Malaysia (MY), Marshall Islands (MH), Micronesia (FM), Mongolia
(MN), Myanmar (MM), Northern Mariana Islands (MP), Palau (PW),
Philippines (PH), Russia–East of the Urals (XU), Singapore (SG),
Tajikistan (TJ), Thailand (TH), Timor-Leste (TL), Turkmenistan (TM),
Uzbekistan (UZ), Viet Nam (VN).
2. South Asian Subcontinent (SASC)
Afghanistan (AF), Bangladesh (BD), Bhutan (BT), India (IN),
Maldives (MV), Nepal (NP), Pakistan (PK), Sri Lanka (LK).
3. Japan, Korea (JAPKOR)
Japan (JP), Democratic Republic of Korea (KP), Republic of Korea (KR).
4. South West Pacific (SWP)
American Samoa (AS), Australia (AU), Cook Islands (CK), Fiji (FJ), French
Polynesia (PF), Kiribati (KI), Nauru (NR), New Caledonia including Loyalty
Islands (NC), New Zealand (NZ), Niue (NU), Papua New Guinea (PG),
Samoa (WS), Solomon Islands (SB), Tonga (TO), Tuvalu (TV),
Vanuatu (VU), Wallis and Futuna Islands (WF) and intermediate islands.
Key Learning Point

Each IATA Area is divided into subareas. Subareas are further divided into
sub-groups.
12.3.3 Two TCs for Russia

Russia is the only country in the world that shares two Tariff Conference Areas,
namely. TC2 and TC3. As a result, it has two country codes: RU and XU.
Russia west of the Ural Mountains is part of TC2 and the Europe subarea. The
cities of MOW and LED are Russian cities in TC2 Europe. Russia east of the
Ural Mountains is part of TC3 and the South East Asia subarea. KHV is a
Russian city in TC3.
12.3.4 IATA Global Indicators

Fares vary by class of service, fare type and routing as represented by global
indicators (GIs). For example, a fare for travel from Los Angeles to Hong Kong
via Europe would be higher than the Los Angeles to Hong Kong fare routed via
the Pacific. Every airfare publishes a global indicator code. It identifies the
direction and location of travel for the fare. The journey’s ticketed points
determine the correct Global Indicator Code.
Key to identifying global indicators is your ability to match the city pair to the
correct IATA Tariff Conference areas such as the following:
TC# Between And
TC1 Area 1 Area 1
TC2 Area 2 Area 2
TC3 Area 3 Area 3
TC23 Area 2 Area 3
TC12 Area 1 Area 2
TC123 Area 1 Area 3 via Area 2 over the Atlantic
TC31 Area 3 Area 1 via the Pacific
TC1(3)2 Area 1 Area 2 via Area 3
12.3.4.1 Global Indicator (GI) by Tariff Conference (TC)

A Global Indicator (GI) represents travel within a single Tariff Conference (TC)
or between different TCs. It also represents a travel route or direction based on
logical thinking.
Table 12.3.1 lists global indicators (GIs) by their two-letter code, the Tariff
Conference (Area) they apply to and permitted routing. Each displays sample
direct and/or indirect routings. On a blank map, trace each routing. The
“between” “and” columns Indicates the location of the terminal points of the
routing and implies that the fare can be quoted in either direction.

For example, Between TC1 and TC2 means travel can originate in Traffic
Conference Area 1 (example: USA) and terminate in Traffic Conference Area 3
(example: China), or vice versa.
Table 12.3.1—IATA Global Indicator (GI) codes and routes
The ticketed points in an itinerary determine the applicable GI. Return journeys
may be routed via different GIs outbound and inbound. For example, consider
this return journey from Moscow to Tokyo:
SU 262 C 25MAR SVONRT HK1 2000 1140 26MAR

BA 6 C 03APR NRTLHR HK1 1255 1720
SU2 581 C 04APR LHRSVO HK1 1040 1625
Ticketed Points Global Indicator

Outbound Moscow-Tokyo RU
Inbound Tokyo-London-Moscow TS
12.3.4.1.1 Travel within the Same Tariff Conference

TC1 Western Hemisphere (WH)
YVR-LIM and RIO-MIA are routes within TC1. The only GI applicable for travel
entirely in TC1 is WH.
Figure 12.3.8—Sample WH routes in TC1

TC2 Eastern Hemisphere (EH)

When travel is entirely within TC2, including subareas Europe, Middle East and
Africa, then the Global Indicator EH applies. REK-THR and CAS-ADD are EH
routes.
REK
CAS
THR
ADD
Figure 12.3.9—Sample EH routes in TC2
TC3 Eastern Hemisphere (EH)

A flight from Karachi to Taipei (KHI-TPE) is within TC3 (Area 3). When all travel
is within TC3, the Global Indicator is also EH. The same applies to the routing
TYO-POM, two points in TC3.
Figure 12.3.10—Sample EH routes in TC3
12.3.4.1.2 Travel across Oceans between 2 TCs

The only oceans that determine global indicators are the Atlantic and the
Pacific.
Travel via the Atlantic Ocean
AT for TC12
Consider the journey MAD-CCS-UIO. Travel is between TC2 (MAD) and TC1
(UIO). Flights between TC2 and TC1 (MAD to CCS) cross the Atlantic Ocean,
hence the Global Indicator AT applies. Figure 12.3.11 displays other AT routes
for TC12 (NYC-DUB; MAD-CCS-UIO; SAO-JNB).
Figure 12.3.11—Sample AT routes for TC12

AT for TC123
Let’s consider the journey CHI-LON-CMB
Figure 12.3.12—Sample AT routing for TC123
It originates in TC1 (subarea North America) and ends in TC3 (subarea South
Asian Subcontinent). There are four GIs that allow travel between TC1 and
TC3. Let's examine their rules and determine which one applies to the journey
CHI-LON-CMB.
SA TC123
The destination is in SASC, but the origin is not in Argentina, Brazil, Chile,
Paraguay or Uruguay. Hence, SA does not apply.
PN TC31
The route is not transpacific, and the origin and destination are neither in the
South West Pacific (SWP) nor in South America, so we know CHI-LON-CMB is
not PN.
PA TC31
This is only used for transpacific routes and the CHI-LON flight crosses the
Atlantic Ocean. Hence, the route is not PA.
AT TC123
The routing represents travel in TC123 with the “AT” global indicator. Same for
the route YVR-LON-HKG.
Greenland
(Denmark)
USA Finland
Iceland
Canada Norway Sweden
Estonia
Russia (RU) Russia (XU)
Canada United
Kingdom
Lithuania
Latvia
Netherlands Belarus
YVR
Ireland
U.K.
Poland
Gulf of St. Lawrence

LON France
Belgium Germany
Li
Switzerland
Czech
Austria
Slovakia
Hungary
Ukraine
Mold
ova
Kazakhstan Mongolia
Slovenia
atia
Romania
Cro Se
Bosnia rbia Aral Sea
Herzegvin
a
Lake Ontario Monaco Abkhazia
Montenegro Bulgaria South Ossentia
Malta Italy Georgia Uzbekistan Kyrgyzstan

Macedonia
ArmeniaAzerbaijan
North Korea
Spain
USA Portugal Turkey Turkmenistan Tajikistan
United States of America

Gree
Gilbraltar Ceuta Melilla
ce
Syria South
Japan
Afghanistan China Korea
Morroco Iraq Iran
Jordan Kuwait
Algeria Pakistan
Libya Nepal
Bahrain
Bahamas
Mexico
Cuba
Mauritania
Egypt
Saudia Arabia SASC India
Bangladesh
Myanmar
Taiwan
Chinese Taipei
HKG
Dominican Republic
Haiti Puerto RicoVirgin Islands Laos
Oman
Sudan
Belize
Jamaica
St Kitts and Nevis
St Lucia
St Vincent &
Antigua and Barbuda
Dominica
Mali Niger
Chad
Yemen Thailand Vietnam Phillipines Pacific Ocean
The Grenadines
Barbados Gambia Cambodia
AT
Nicaragua Grenada
Burkina Faso Wake
Trinidad and Tobago Guinea Benin
(U.S.A.)
Panama North Mariana Islands
Costa Rica
Nigeria Sri Lanka (U.S.A.)
South Ethiopia
Venezuela Ghana Central African Republic Sudan Guam Marshall Islands
Guyana Brunei
Palau (U.S.A.)
Liberia
alia
(Kosrae)
French Guiana
Suriname
m
(Pohnpei)
(Yap) (Chuuk)
Malaysia
So
Sao Tome
Columbia
Uganda Federared States of MicronesiaKiribati
Gabon Democratic Kenya Nauru
Ecuador
Republic of
Congo Vanuatu
Papua New Guinea
Tanzania
Seychelles Indian Ocean Indonesia
East Timor
Solomon Islands
Peru Brazil
TC1
Angola Tuvalu
Bolivia TC2 Namibia

Zambia Malawi
TC3
Fiji
Pa Botswana
rag
ua
y
Swaziland
Australia
Lesotho
Chile
South Africa
Uruguay
Argentina
New Zealand
New Zealand
Falkland (UK)
Figure 12.3.13—Sample AT route for TC123

SA for TC123
A transatlantic crossing is also necessary for SA routings. Global Indicator SA
applies these conditions:
1. Travel must begin or end in Southeast Asia or South Asian Subcontinent
subareas;
2. Travel must begin or end in Argentina, Brazil, Chile, Paraguay or Uruguay;
3. Travel must be routed via an intermediate point in Southeast Asia, South
Asian Subcontinent, Central Africa, Southern Africa or Indian Ocean
Islands.
For example, the journey BOM-JNB-SAO begins in the South Asian Subconti-
nent (BOM), ends in Brazil (SAO) and travels via Southern Africa (JNB).
Figure 12.3.14—Sample SA route
If travel from BOM to SAO is via DXB (BOM-DXB-SAO), then the applicable GI
is AT.
Travel via the Pacific Ocean

There are two global indicator codes for journeys crossing the Pacific Ocean
between TC1 and TC3: PN and PA.
PN versus PA for TC13
There are 2 conditions for the PN (North Pacific) route:
1. Travel must begin or end in the South America subarea;
2. Travel must begin or end in the South West Pacific subarea;
3. Travel must be routed via an intermediate point in North America.
For example, in the journey SCL-SFO-AKL, travel begins in South America
(SCL), ends in South West Pacific (AKL) via an intermediate point in North
America (SFO).
Figure 12.3.15—Sample PN routing

For any other TC13 routing, travel is via the PA Global Indicator, even when the
journey continues to TC2, i.e. TC 1(3)2
Figure 12.3.16—Sample PA routes
Travel via the Atlantic and Pacific Oceans

Consider a route from Jeddah to Singapore via Miami (JED-MIA-SIN). The
journey is between Area 2 (JED) and Area 3 (SIN), via Area 1 (MIA). The
journey crosses both the Atlantic and Pacific oceans. Hence, AP is the
applicable GI for this journey. Another example of an AP routing is
SHA-SFO-FRA.
Figure 12.3.17—Sample AP routes for TC23
FE, RU, TS and EH for TC23

For travel in TC23, there are five applicable Global Indicators (including AP).
To establish the correct global indicator for TC23 routings, answer these
questions:
1. Does the journey travel across the Pacific and Atlantic Oceans? If yes,
then the routing is AP.
2. Is there a nonstop sector between Russia in Europe and a point in TC3
(not JAPKOR)? If yes, then the routing is FE.
3. Is there a nonstop sector between Russia in Europe and JAPKOR? If yes,
then the routing is RU.
4. Is there is a sector with nonstop service between Europe (not in Russia)
and JAPKOR? If yes, then the routing is TS.
If the answer to all four questions is “no”, then Global Indicator EH applies. This
process of elimination helps you conclude when travel is EH.
Consider the routing MOW-IST-TYO-HKG, travel between TC2 and TC3. AP,
FE, RU do not apply. The routing is a TS route because there is a nonstop
IST-TYO service (question #4).

Figure 12.3.18—Sample TS route for TC23
Another example of a TS routing (with nonstop service between Europe and

JAPKOR) is LED-STO-MOW-SEL (illustrated in Figure 12.3.18).
An example of an RU route (with nonstop sector service between Russia in

Europe and JAPKOR) is MOW-TYO-HKG and LED-MOW-SEL.
Figure 12.3.19—Example RU route

Figure 12.3.20 compares the FE and RU routes.

IEV-HEL-MOW-KHV (FE) is an example of nonstop service between Russia in
Europe/Ukraine and a point in TC3 which happens to be a destination in Asian
Russia (KHV - Khabarovskiy Kray).
MOW-TYO (RU) displays a direct service between Russia (in Europe) and
Japan.
Figure 12.3.20—Example FE and RU routes
The journeys FRA-ALA and LOS-BJS-TYO do not meet the conditions for AP,
FE, RU and TS routes. Hence, these are examples of EH.
Figure 12.3.21—Example TC23 EH routes
Key Learning Point

Each airfare displays a global indicator code related to the Tariff Conference
Area numbers and route that the fare applies.

Study Check 12.3
Decode the city codes by identifying the city name, country, IATA traffic
conference and relevant sub-area.
City Code City Name Country Name TC# Sub-area
1. AKL
2. AMS
3. ATH
4. BKK
5. BOM
6. BOS
7. BUE
8. CPT
9. DUB
10. DXB
12. GUA
12. HKG
13. POS
14. PPT
15. OSA
Identify the correct TC# and Global Indicator.
Routing TC# GI
16. AMS-BOS-LAX-MNL
17. ATH-LON-AMS-BOS
18. BUE-LAX-AKL
19. KUL-CPT-BUE
20. NYC-LAX-PPT
21. SCL-JNB-SIN-HKG
22. BJS-TYO-PPT
23. YVR-HKG-DXB
24. BKK-SIN-JNB-SAO
25. FRA-NYC-MEX
26. MNL-HNL-LAX
27. AKL-LAX-BOG
28. MEX-TYO
29. JNB-SIN-SFO
30. CCS-LAX-PDX
31. DUB-PAR-TYO-HKG
32. KUL-SIN-MOW-IEV
33. LON-LAX-SYD
34. MOW-TYO-KUL-BKK
35. SIN-OSA-AMS-CAS
36. SYD-SIN-OSA-MOW
37. DXB-SIN-MEL-AKL
38. SAO-BOG-CCS-PAP
39. MOW-CPH-TYO-BJS
40. MOW-TYO-TAS
12.3.5 Unit Summary

• Unit 12.3.1
IATA has divided the world into three main Tariff Conference Areas,
namely Area 1, Area 2 and Area 3.
• Unit 12.3.2
Under each Area, you will find subareas or regions which, in the IATA
context, may have a different meaning from that generally implied by the
geographical term.
• Unit 12.3.2
For example, IATA Europe in Area 2 comprises not only geographical
Europe but also the following countries and territories:
○ Cyprus;
○ Three North African countries, i.e. Morocco, Algeria and Tunisia;
○ Armenia, Turkey and Azerbaijan which are geographically in Asia
Minor but are classified under IATA's version of Europe.
• Unit 12.3.2
Subareas may in turn be subdivided into regions and groups of countries.
For instance, Africa is subdivided further into Eastern Africa, Western
Africa, etc.
• Unit 12.3.3
Russia shares two TCs. MOW and LED are in TC2 subarea Europe
• Unit 12.3.4
IATA Global Indicators are related to joint Tariff Conference numbers. For
example:
○ TC1 also refers to a routing type with Global Indicator WH for Western
Hemisphere;
○ TC2 refers to Eastern Hemisphere or EH;
○ TC3 also refers to Eastern Hemisphere.
• Unit 12.3.4
Each fare has a global indicator. Establishing the right one requires
knowledge of IATA geography and compliance with other routing
conditions.
Try Activities 4 and 5 in your Workbook.

Apply Your Learning
“Is there a shortcut to cracking global indicators?”
Each sector in the journey has a corresponding global indicator.

For example, when the routing DUB-IST-BJS-TYO is broken down into sectors,
you will find that DUB-IST is EH, IST-BJS, is EH and BJS-TYO is also EH.
When all the sectors are EH, then the whole fare component from DUB to TYO
is EH.
Take note of ocean crossings as this influences the final global indicator for the
component. For example, KUL-MNL-HNL where KUL-MNL is EH but MNL-
HNL is PA means that the entire fare component KUL-MNL-HNL is PA.
For example, BUE-LAX-SYD has BUE-LAX which is WH, while LAX-SYD is
PA. While the ocean crossing provides a valuable clue to the overall global
indicator, there are two types of transpacific routes. To decide if this is PA or
PN, other factors such as subarea exceptions and via points need to be
validated. As the routing is between South America and South West Pacific via
North America, the conclusion is that this is a PN route.
When there are choices to make, it is best to double check the global indicator
restrictions and exceptions.
12.4 Journey and Pricing Unit Anatomy
• Identify one way, return, open jaw, and round the world journeys
(Unit 12.4.1).
• Identify one way, round trip, circle trip, open jaw and round the world
Pricing Units (Unit 12.4.2).
Unit Learning
By completing this Unit, Before pricing a journey, identifying the journey type is a best practice. This
you will be able to: provides some insight on the different fare breakdown options possible. The
GDS or other booking system will price itineraries and display the applicable
fare per Pricing Unit. A Pricing Unit can represent the whole journey or a
subjourney (part of a journey). Hence, a journey can have one or more Pricing
Units. Every journey and Pricing Unit has its own anatomy or structure.
12.4.1 Journey Types

A journey represents an entire trip, from origin (where the journey begins) to
destination (where the journey ends). There are different types of journeys that
influence pricing.
12.4.1.1 One Way Journey

The origin and destination cities in a one way journey are in different countries.
Travel is in one continuous direction, without any return. The itinerary may
have only one flight segment, or multiple flight segments with intermediate
stopover or connection points (transfers). Table 12.4.1 displays three different
one way journeys from London to Tokyo in economy class. Each one may
produce a different fare, influenced by the airlines booked, route travelled and
fare rule conditions.
Single segment 1 BA 007 Y 10SEP 1 LHRHND DK1 1140 0710 11SEP

With connection in AMS 1 KL 1008 Y 10SEP 1* LHRAMS DK1 0955 1225 10SEP
2 KL 861 Y 10SEP 1* AMSNRT DK1 1440 0840 11SEP
With Stopover in FRA 1 LH 923 Y 10SEP 1 LHRFRA DK1 0730 1005 10SEP
2 LH 716 Y 13SEP 4 FRAHND DK1 1805 1215 14SEP
Table 12.4.1—London to Tokyo one way journeys

12.4.1.2 Return Trip to Origin

A return trip is a journey from a point of origin to a point of turnaround
(outbound leg), and back to the same point of origin (inbound leg). The origin
and destination points are the same in return journeys. Each leg of the journey
can have one or more flight segments, with intermediate connection or
stopover transfers. Pricing return journeys depends on the booked class,
routing (ticketed points), dates traveled and airlines booked.
Table 12.4.2 displays a variety of LON-TYO-LON return journeys.
LON-TYO-LON
Point to point 1 BA 007 Y 10SEP 1 LHRHND DK1 1140 0710 11SEP
routing
2 BA 008 Y 30SEP 7 HNDLHR DK1 0850 1310 30SEP
LON-X/AMS-TYO-X/AMS-LON
With intermediate 1 KL 1008 Y 10SEP 1* LHRAMS DK1 0955 1225 10SEP
AMS connection 2 KL 861 Y 10SEP 1* AMSNRT DK1 1440 0840 11SEP
outbound and
inbound 3 KL 862 Y 30SEP 7* NRTAMS DK1 1030 1510 30SEP
4 KL 1023 Y 30SEP 7* AMSLHR DK1 1715 1735 30SEP
LON-X/AMS-TYO-AMS-LON
With intermediate 1 KL 1008 Y 10SEP 1* LHRAMS DK1 0955 1225 10SEP
AMS connection 2 KL 861 Y 10SEP 1* AMSNRT DK1 1440 0840 11SEP
outbound and stop-
over inbound 3 KL 862 Y 30SEP 7 NRTAMS DK1 1030 1510 30SEP
4 KL 1017 Y 03OCT 3 AMSLHR DK1 1320 1350 03OCT
Table 12.4.2—London-Tokyo-London return journeys
12.4.1.3 Open Jaw (OJ) Journey

An open jaw journey is a type of return journey that is interrupted by a surface
sector (also called a gap). The surface sector represents a break in the air
journey due to a portion travelled by land (such as train, bus or car
transportation) or by water (such as ferry or cruise transportation). Its location
may be in the same country (domestic surface sector) or in different countries
(international surface sector) as specified by the fare rule. A journey may have
a single or double surface sector.
Single Open Jaw (SOJ) Journey
A domestic or international surface sector can be at the origin or at the point of
turnaround of the journey.
Origin Open Jaw (OOJ)
In the journey NBO - ADD - MBA, the journey origin is Nairobi and the
destination is Mombasa. Both cities are in Kenya. Therefore, this surface gap is
domestic.
1 ET 309 Y 10SEP 1 NBOADD DK1 0500 0715 10SEP
2 ET 322 Y 23SEP 7 ADDMBA DK1 0900 1120 23SEP
Unit 12.4: Journey and Pricing Unit Anatomy 909

ADD
NBO
MBA
Figure 12.4.1—Origin Open Jaw (OOJ) journey with domestic surface sector
In the journey DEL – X/SIN – JKT – X/SIN – CMB, the journey begins in India
and ends in Sri Lanka, two different countries, which creates an international
surface sector.
SQ407 C 10AUG 1 DELSIN HK1 2325 0755+1 11AUG E

SQ956 C 11AUG 2 SINCGK HK1 0925 1010 11AUG E
SQ965 C 27AUG 4 CGKSIN HK1 1900 2150 27AUG E
SQ468 C 27AUG 4 SINCMB HK1 2240 2355 27AUG E
Figure 12.4.2—Origin Open Jaw (OOJ) journey with international surface sector
Turnaround Open Jaw (TOJ)

In the journey ADD-NBO /-MBA-ADD, the origin and destination city is the
same (Addis Ababa). However, the point of turnaround is between Nairobi and
Mombasa where the passenger drives between these cities. There is a
domestic surface sector between NBO and MBA which is indicated in the PNR
itinerary as ARNK (arrival unknown). In a fare breakdown display, ARNK is
replaced by the symbol /-.
1 ET 302 Y 03DEC 1 ADDNBO DK1 0815 1025 03DEC
2 ARNK
3 ET 323 Y 10DEC 1 MBAADD DK1 1730 1950 10DEC

ADD
NBO
MBA
Figure 12.4.3—Turnaround Open Jaw (TOJ) itinerary with domestic surface sector
In the journey ADD-NBO /- MBA-ADD, the origin and destination city is the
same (Addis Ababa). However, the point of turnaround is between Nairobi and
Mombasa where the passenger drives between these cities. There is a
domestic surface sector between NBO and MBA which is indicated in the PNR
itinerary as ARNK (arrival unknown). In a fare breakdown display, ARNK is
replaced by the symbol /-.
In the next example, JNB PAR /- AMS JNB, the surface sector between PAR
and AMS is international (in different countries).
1 AF 995 C 19MAY 7 JNBCDG HK1 1850 0540 +1

2 ARNK
3 KL 591 C 23MAY 4 AMSJNB HK1 1035 2120
Figure 12.4.4—Turnaround Open Jaw (TOJ) itinerary with international surface
sector

Double Open Jaw (DOJ)

Sometimes a surface sector exists at origin and turnaround, creating a double
open jaw (DOJ) journey.
In the journey MEL - DPS /- JKT - SYD, a surface sector exists at the origin
(MEL and SYD) and turnaround (DPS and JKT). Both surface sectors are
domestic.
1 JQ 043 Y 10DEC 1 MELDPS DK1 1005 1255 10DEC
2 ARNK
3 QF 042 Y 21DEC 5 CGKSYD DK1 1900 0610 22DEC
JKT
DPS
SYD
MEL
Figure 12.4.5—Double Open Jaw (DOJ) itinerary with domestic sectors
Another example of a DOJ is the journey MIA-RIO /- BUE-NYC. The origin and
destination cities are MIA and NYC forming a domestic surface sector. The
turnaround points are RIO and BUE, forming an international surface sector.

1 AA 905 Y 10DEC 1 MIAGIG DK1 2250 1010 11DEC

2 ARNK
3 AA 954 Y 18DEC 2 EZEJFK DK1 2240 0733 19DEC
Figure 12.4.6—Double Open Jaw (DOJ) itinerary with domestic and international
sectors
In the journey AMS - DXB /- KHI - X/DXB - PAR, the origin (AMS) and
destination (PAR) cities form an international surface sector. The turnaround
surface sector (DXB-KHI) is also international.
1 EK 148 C 03FEB AMSDXB HK1 1520 2359

2 ARNK
3 EK 601 C 10FEB KHIDXB HK1 1215 1320
4 EK 75 C 10FEB DXBCDG HK1 1440 2000
Figure 12.4.7—Double Open Jaw (DOJ) with two international surface sectors
The fare applicable to an open jaw journey depends on the origin/destination

points, turnaround points, connections, stopovers and airlines booked.

12.4.1.4 Round the World (RTW) Journey

A Round the World (RTW) journey involves travel in a continuous direction
around the globe, from east to west, or from west to east. It crosses the Atlantic
and Pacific Oceans.
LAX - FRA - TYO - LAX
1 LH 457 Y 10DEC 1 LAXFRA DK1 1530 1125 11DEC
2 LH 716 Y 20DEC 4 FRAHND DK1 1750 1305 21DEC
3 UA 033 Y 29DEC 6 NRTLAX DK1 1730 1030 29DEC
FRA
LAX TYO
Figure 12.4.8—Round-the-world (RTW) itinerary
Key Learning Point

A journey represents an entire trip, from origin (where the journey begins) to
destination (where the journey ends). Journeys are categorized by their
features as one way, return to origin, open jaw and round the world journeys.

12.4.2 Pricing Unit (PU)

A fare is the price for a journey by air. The journey can be priced a number of
ways. It can be priced as a whole (single) “pricing” unit (PU) representing the
fare.
A journey can also be broken into subjourneys (journeys within a journey),
where each subjourney is priced as its own separate PU and the customer
pays the sum of all PUs (the fare). A PU has fare components. A one way PU
has one fare component. A return PU has two fare components (outbound and
inbound).
In summary, a PU is defined as a journey or part of a journey which is priced as
a separate entity. A PU fare can be ticketed separately as an independent unit,
or can be ticketed together with other PUs.
A PU representing a return journey is one of four types:
• Round Trip
• Circle Trip
• Open Jaw
• Round the World
12.4.2.1 One Way (OW) Pricing Unit

A one way PU for international travel has an origin and a destination in two
different countries. It is priced from origin to destination, in the direction of
travel, using one way fares.
Example 1: Single one way (OW) PU

LON
TYO BA 7 C 10SEP 1140 C3UKTS 10SEP 10SEP 2P
GBP 4348.00 10SEP**LON BA TYO Q10.74 5831.33NUC5842.07
END ROE0.744255
Figure 12.4.9—Sample one way LON-TYO direct journey priced as one PU
In Figure 12.4.9, the journey is a direct (point-to-point) flight segment from

London to Tokyo, booked in C class on BA. The applicable fare is a business
class fare of NUC 5831.33. The LON-TYO journey is priced as one PU with
one fare component.

LON
XAMS KL 1008 J 10SEP 0955 JFFWGB 2P
TYO KL 861 J 10SEP 1440 JFFWGB 2P
GBP 4562.00 10SEP**LON KL X/AMS KL TYO6110.80 1S18.94
NUC6129.74END ROE0.744255
Figure 12.4.10—Sample indirect one way LON-TYO journey priced as one PU
The same LON-TYO one way journey is rebooked as indirect travel on KL

flights via AMS in J (business) class, where AMS is a connection. The GDS
quotes a higher fare of NUC 6110.00. This LON-TYO journey is priced as 1 PU
with 1 fare component.

GDS systems can be commanded to rebook itinerary flights to a booking class

that delivers a lower fare in the cabin traveled. For the KL itinerary in
Figure 12.4.11, the GDS system rebooks KL861 in D class. As a result a lower
fare of NUC 3110.89 is quoted as 1 PU for travel in the same business class
cabin, on the same flights and dates.

LON
XAMS KL 1008 J 10SEP 0955 DFFWGB 2P
TYO KL 861 D 10SEP 1440 DFFWGB 2P
GBP 2336.00 10SEP**LON KL X/AMS KL TYO3119.89 1S18.94
NUC3138.83END ROE0.744255
Figure 12.4.11—Fare quoted for LON-TYO when travel is rebooked in J and
D class
10JUL**24JUL**/KL LONTYO/NLX;TS/TPM 6214/MPM 7456

LN FARE BASIS OW NUC RT B PEN DATES/DAYS AP MIN MAX R
02 DFFWGB 3119.89 D - -- - - - R
04 JFFWGB 6110.80 J - -- - - - R
Figure 12.4.12—LONTYO fare display for D and J fares confirms the GDS's
auto-priced fare
The one way fare for the LONTYO pricing unit is sensitive to the class booked,
the airline booked, the routing (ticketed points) and other factors such as
intermediate stopovers versus connections booked.
Changing the itinerary to LH flights routed via FRA with a stopover in FRA
increases the fare to NUC 4478.30.

LON
FRA LH 923 D 10SEP 0730 DFFOJGB 2P
TYO LH 716 D 13SEP 1805 DFFOJGB 2P
GBP 3333.00 10SEP**LON LH FRA LH TYO4478.30NUC4478.30
END ROE0.744255
Figure 12.4.13—Sample OW LONTYO PU with a stopover at intermediate point
FRA
10SEP**24SEP**/LH LONTYO/NLX;TS/TPM 6214/MPM 7456

*** STAR ALLIANCE JAPAN AIRPASS SEE FQD QMXQMY/R,U***
07 DFFOJGB 4478.30 D - -- @- - - R
Figure 12.4.14—LONTYO GDS fare display for D class fares with LH confirms the
system's auto-priced fare
The result is 1 OW PU (LON-FRA-TYO) with 1 fare component (NUC 4478.00).

In summary, systems price itineraries based on the airline, class and routing
booked. Each airline can offer different fares, but what is common to all the
examples illustrated is that OW fares are quoted for OW PUs.

Example 2: Two one way (OW) PUs

A PU can also represent a subjourney when the journey's fare can be broken
down into more than one PU to establish the lowest fare. Consider the journey
LAX-SIN-BJS priced by the booking system.

LAX
SIN SQ 11 D 10SEP 1000 DAP21SQO 10SEP 10SEP 2P
BJS CA 976 D 23SEP 0900 DLORFSG 23SEP 23SEP 2P
USD 4519.00 10SEP**LAX SQ SIN2754.00CA BJS1765.22NUC
4519.22END ROE1.000000
Figure 12.4.15—LAXBJS one way journey priced as two PUs (LAXSIN+SINBJS)
In summary, the fare breakdown is 2 PUs, each with one fare component:
PU1 (one fare component) flown via PA: LAXSIN SQ fare NUC 2754.00
booked in D class;
PU2 (one fare component) flown via EH: SINBJS CA fare NUC 1765.22
booked in D class.
If we want to verify the fares selected by the system, two separate fare displays
must be requested.
10SEP**24SEP**/SQ LAXSIN/NLX;PA/TPM 8770/MPM 10524

1 DAP21SQO 2754.00 D NRF S31DEC - @21 - - R
Figure 12.4.16—LAXSIN one way fare display
23SEP**07OCT**/CA SINBJS/NLX;EH/TPM 2791/MPM 3349

07 DLORFSG 1765.22 D @ S04OCT E01APR@ - - - R
O31MAR -
Figure 12.4.17—SINBJS one way fare display
The system allows a combination of fare types DAP21SQO and DLORFSG.

One or two separate tickets can be issued for this itinerary. The benefit of
issuing both PUs on one ticket is that there is one total collection on one ticket
instead of two separate collections on two tickets.

12.4.2.2 Round Trip (RT) Pricing Unit

A round trip PU represents travel by air from one point to another point, and
return to the same origin point. Round Trip fares are used to price round trip
PUs. Round Trip PUs have the following features:
• A continuous air route from origin to the farthest point and back to origin;
• The journey origin and destination are the same;
• It has two fare components: outbound and inbound:
○ Outbound (OB) fare component – the departure fare component from
point of origin to point of turnaround or fare break point. Essentially the
departure leg of the return PU. The outbound fare is quoted in the
actual direction of travel;
○ Inbound (IB) fare component – the return fare component starting at
the point of turnaround or fare break point to the point of origin.
Essentially the return leg of the PU. The inbound fare is quoted in the
opposite direction of the passenger's travel;
• The fare per component is ½ of the published Round Trip fare;
• The fare components of a round trip PU must be issued on one ticket; they
cannot be ticketed separately.
Example 3: Single round trip (RT) PU
Journey: AL FLGT BK DATE TIME FARE BASIS NVB NVA BG

LON
TYO BA 7 I 10SEP 1140 IUKTS14 10SEP 10SEP 2P
LON BA 8 I 30SEP 0850 IUKTS14 30SEP 30SEP 2P
GBP 3090.00 10SEP**LON BA TYO Q10.74 2065.15BA LON Q
10.74 2065.15NUC4151.78END ROE0.744255
Figure 12.4.18—BA pricing for RT LONTYO Pricing Unit
In this example, the PU origin and end destination are the same (LON). TYO is
the point of turnaround. The OB and IB legs of the journey are routed via the
same Global Indicator TS. A round trip fare applies.
10SEP**24SEP**/BA LONTYO/NLX;TS/TPM 6214/MPM 7456

03 IUKTS14 4130.30 I NRF - - @14@ 5@ 12M R
Figure 12.4.19—BA RT fare displayed for LONTYOLON journey and Pricing Unit
In summary, 1 PU with 2 fare components:

Fare component 1 = NUC 2065.15 (1/2 of the published round trip LON-TYO-
LON fare);
LON fare).
Note that the fare display header line displays global indicator code TS for
trans-Siberian route. Hence, the fare is only applicable to LON to TYO TS
routings in both directions.

Another round trip PU example: PAR – X/NBO – ADD – XNBO – PAR
1 AF8002 Z 28SEP 5 CDGNBO DK1 1200 2105 28SEP E 0 788 M

2 AF8085 J 29SEP 6 NBOADD DK1 0710 0910 29SEP E 0 E90 M
3 AF8070 J 29OCT 1 ADDNBO DK1 1705 2145 29OCT E 1 E90 M
4 AF8003 Z 29OCT 1 NBOCDG DK1 2350 0630 30OCT E 0 788 M

PAR
XNBO AF 8002 Z 28SEP 1200 ZLSFR 28SEP 28SEP 2P
ADD AF 8085 J 29SEP 0710 ZLSFR 29SEP 29SEP 2P
XNBO AF 8070 J 29OCT 1705 ZLSFR 29OCT 29OCT 2P
PAR AF 8003 Z 29OCT 2350 ZLSFR 29OCT 29OCT 2P
EUR 2852.00 28SEP**PAR AF X/NBO AF ADD1671.73AF X/NBO
AF PAR1671.73NUC3343.46END ROE0.853007
EUR 22.00-YQ XT EUR 28.45-QX EUR 45.07-IZ EUR 8.14-FR
EUR 320.00-YR EUR 12.40-FR EUR 25.66-IH EUR 0.86-L3
EUR 120.58-XT
EUR 3314.58
Travel is from origin (PAR) to turnaround (ADD) and back to origin (PAR).
Travel is via intermediate point NBO. Note that NBO is a connection (X/NBO)
outbound and inbound because in both cases the passenger is in NBO for less
than 24 hours. The applicable Global Indicator for both fare components is EH.
The applicable fare type is ZLSFR.
Fare component 1 = NUC 1671.73 (1/2 of the published round trip PAR-NBO-
ADD fare);
Fare component 2 = NUC 1671.73 (1/2 of the published round trip PAR-NBO-
ADD fare).
Let's modify the LONTYO round trip journey with the following changes:
1. Book to travel on KL flights via AMS outbound and inbound
2. Make AMS connection intermediate transfer points
3. Book D class outbound
4. Book C class inbound
The journey is now routed via the EH Global Indicator.

LON
XAMS KL 988 D 10SEP 1000 DFFGB 2P
TYO KL 861 D 10SEP 1440 DFFGB 2P
XAMS KL 862 C 30SEP 1030 CFFGB 2P
LON KL 1023 C 30SEP 1715 CFFGB 2P
GBP 3941.00 10SEP**LON KL X/AMS KL TYO2400.38KL X/AMS
KL LON2865.95 1S18.94 1S9.47NUC5294.74END
ROE0.744255
Figure 12.4.20—KL pricing for RT LONTYO Pricing Unit

The fare breakpoint is still TYO because it is still the farthest point from LON.
The system prices the journey as one pricing unit with two fare components.
The outbound component fare type is DFFGB and the inbound is CFFGB. Both
are business class fares (D and C are common booking class codes for travel
in the business class cabin) and combined to create one pricing unit.
The GDS's auto pricing system works to quote the best available fare for the
class booked in all itinerary segments.
10SEP**24SEP**/KL LONTYO/NLX;TS/TPM 6214/MPM 7456

06 DFFGB 4800.76 D -- - - - - R
07 I2FFWGB 2665.75 I -- - - - - R
08 CFFGB 5731.90 C -- - - - - R
09 DFFWGB 3119.89 D -- - - - - R
10 CFFWGB 3724.52 C -- - - - - R
Figure 12.4.21—KL RT fare displayed for LONTYOLON journey and Pricing Unit
From the fare display, we see the applicable DFFGB fare is NUC 4800.76. This
is a round trip (RT) fare, therefore only ½ of this fare value (NUC 4800.76 ÷ 2 =
NUC 2400.38) applies to the outbound LON to TYO fare component.
Inbound, the fare is quoted in the opposite direction of the passenger's travel
(LONTYO fare). Half (½) of the CFFGB fare of NUC 5731.90 applies for the
return TYO-LON leg (NUC 5731.90 ÷ 2 = NUC 2865.95).
Fare component 1 = NUC 2400.38 (1/2 of the published round trip LON-AMS-
TYO fare);
Fare component 2 = NUC 2865.95 (1/2 of the published round trip LON-AMS-
TYO fare).
Let's modify the journey again. Let's rebook the KL flights in different business
class booking codes, change AMS to a stopover in the inbound leg and
command the system to price the journey.

LON
XAMS KL 1008 J 10SEP 0955 DFFGB 10SEP 10SEP 2P
TYO KL 861 D 10SEP 1440 DFFGB 10SEP 10SEP 2P
AMS KL 862 I 30SEP 1030 I1SFGB 30SEP 30SEP 2P
LON KL 1017 J 03OCT 1320 I1SFGB 03OCT 03OCT 2P
GBP 2957.00 10SEP**LON KL X/AMS KL TYO2400.38KL AMS S
100.77KL LON1443.05 1S18.94
1S9.47NUC3972.61END
ROE0.744255
Figure 12.4.22—KL RT pricing for modified RT LONTYO Pricing Unit

The result is a different fare breakdown. The fare for the OB and Fare
component 2s are different.
LON fare);
LON fare).
The lowest applicable fare is quoted, depending on the airlines, class and
routing booked. Even the travel dates booked can influence the fare.
10SEP**24SEP**/KL LONTYO/NLX;TS/TPM 6214/MPM 7456

03 I1SFGB 2886.10 I @ -- 3 - 12M@ R
06 DFFGB 4800.76 D - -- - - - R
07 I2FFWGB 2665.75 I - -- - - - R
08 CFFGB 5731.90 C - -- - - - R
09 DFFWGB 3119.89
Figure 12.4.23—KL RT fare displayed for LONTYOLON journey and Pricing Unit
From the fare display, we see that ½ round trip I1SFGB and DFFGB fares
apply. The OB fare is DFFGB NUC 4800.76 ÷ 2 = NUC 2400.38. The IB fare is
I1SFGB is NUC 2886.10 ÷ 2 = NUC1443.05
Different airlines apply different fare type codes and booking class codes to
price the same origin-destination cities. Here is a quote for the same journey on
LH services via FRA. FRA is a stopover OB and IB.

LON
FRA LH 923 P 10SEP 0730 PRCJGB 10SEP 10SEP 2P
TYO LH 716 P 13SEP 1805 PRCJGB 13SEP 13SEP 2P
FRA LH 717 C 30SEP 1405 CFFJGB 30SEP 30SEP 2P
LON LH 922 C 03OCT 2130 CFFJGB 03OCT 03OCT 2P
GBP 3969.00 10SEP**LON LH FRA LH TYO1071.54LH FRA LH
LON4160.53 1S100.77NUC5332.84END ROE
GBP 329.00YQ 0.744255
Figure 12.4.24—LH RT pricing for modified RT LONTYO Pricing Unit

In this example the outbound fare type code is PRCJGB (NUC 1071.54) and
the inbound fare type code is CFFJGB (NUC 4160.53). Both are business class
fares.
10SEP**24SEP**/LH LONTYO/NLX;TS/TPM 6214/MPM 7456

*** STAR ALLIANCE JAPAN AIRPASS SEE FQD QMXQMY/R,U***
01 PRCJGB 2143.08 P @ -- @14 @ 12M R
02 ZRFJGB1 3267.68 Z 250@ - - @14 - 12M R
03 ZRFJGB 3954.28 Z 250@ - - @14 - 12M R
04 DRFJGB 5768.18 D 250@ - - @7 @ 12M R
05 DFFJGB 6395.64 D - -- @ - 12M R
06 CFFJGB 8321.06 C - -- @ - 12M R
Figure 12.4.25—KL RT fare displayed for LONTYOLON Pricing Unit
By reviewing the LH fare display for LONTYO, we see that ½ RT fares were
used to price the journey as one PU.
Fare component 1 = NUC 1071.54 (1/2 of the published round trip LON-FRA-
LON fare);
Fare component 2 = NUC 4160.53 (1/2 of the published round trip LON-FRA-
LON fare).
Each variation of the round trip LONTYO journeys produced different fare
quotes as one RT PU. Journey pricing is influenced by airline and class of
service booked and the routing (ticketed points) flown. However, each example
priced the journey as one PU by using ½ RT fares.
12.4.2.3 Circle Trip (CT) Pricing Unit

A circle trip is also a return journey and shares some of the same features as
round trip journeys.
• A continuous and circuitous air route from origin to the farthest point and
back to origin.
• The origin and destination cities are the same.
• Each fare component is priced using half round trip fares, i.e. one half of
the published round trip fare.
• Fare components are quoted in the direction of travel except for the fare
component that ends in the Pricing Unit origin where the fare is quoted in
the reverse direction of travel.
A circle trip differs from a round trip journey in the following way:
• A Circle Trip may have more than two fare components.
• When a CT has two fare components, the outbound and inbound fare
components apply different Global Indicators

Example 7: Circle trip (CT) with 1 PU

Refer to the automated fare quote for the journey FRA-TYO-BJS-FRA.

FRA
TYO LH 716 J 10SEP 1805 JFFJDE 2P
BJS CA 182 J 23SEP 1355 J77RT 2P
FRA LH 721 J 27SEP 1030 J77RT 2P
EUR 7674.00 10SEP**FRA LH TYO4338.43CA BJS LH FRA M
4746.88NUC9085.31END ROE0.844659
Figure 12.4.26—Circle trip priced as one PU with 2 fare components
It is not possible to determine whether a return trip is round trip or circle trip by
simply reading the fare calculation, unless you are very familiar with GI codes.
However, a fare display for each fare component will indicate the GI.
10SEP**24SEP**/LH FRATYO/NLX;TS/TPM 5928/MPM 7113

09 JFFJDE 8676.86 J - -- @- - 12M R
10 J77RT 9529.28 J - -- - - 12M M
11 J77OW 6678.43 J - -- - - - M
10SEP**24SEP**/LH FRATYO/NLX;EH/TPM ...../MPM 9372

13 J77RT 9493.76 J - -- - - 12M M
14 J77OW 6646.46 J - -- - - - M
Figure 12.4.27—FRA-TYO fare display
When we retrieve a fare display for the fare breakpoints FRA-TYO, we see a
break in the fare display with two different header lines. One set of fares is
designated as TS (trans-Siberian route) while the other is for EH (Eastern
Hemisphere route). The system selected ½ of a TS fare and ½ of an EH fare.
This fact alone makes the journey a circle trip.
Because it is still a return journey with two fare components, ½ RT fares apply,
just like round trip journeys. The outbound fare component from FRA to TYO is
priced in the direction of travel (FRA-TYO). The inbound fare component from
TYO to FRA via BJS is priced in the reverse direction (FRA-TYO instead of
TYO-FRA).
Fare component 1 = NUC 4338.43 (1/2 of the published round trip JFFJDE fare
NUC 8676.86 ÷ 2);
Fare component 2 = NUC 1443.05 (1/2 of the published round trip J77RT fare
NUC 9493.76 ÷ 2).

Example 8: Circle trip (CT) with 3 PUs

Refer to the automated fare quote for the journey PAR-X/SHA-HKG-SEL-PAR.

PAR
SHA MU 570 L 23OCT 2120 LKSRFR 23APR 2P
HKG MU 505 L 24OCT 1620 LSRCH 23APR 2P
SEL KE 608 Y 29OCT 0055 YRTKE 23APR 1P
PAR KE 909 Y 04NOV 1400 YRTKE 28OCT 23APR 1P
EUR 1875.00 23OCT**PAR MU SHA509.96MU HKG210.74KE SEL

KE PAR Q HKGPAR152.40 1324.72NUC2197.82END
EUR 130.55-YQ ROE0.853007
EUR 4.19-YQ XT EUR 28.45-QX EUR 4.51-IZ EUR 8.14-FR
EUR 113.82-XT EUR 12.40-FR EUR 11.35-CN EUR 13.05-HK EUR
EUR 2123.56 9.79-G3 EUR 4.90-I5 EUR 21.23-BP
Figure 12.4.28—Circle trip priced as one PU with 32 fare components
The first 2 itinerary segments are booked on MU flights in L class. Segments 3

and 4 are booked on KE flights in Y class.
The system priced this journey according to the class, ticketed points, dates
and airlines booked. The quote combines three fare types: PU1-LKSRFR,
PU2-LSRCH and PU3-YRTKE. The result is 1 PU with three fare components,
which makes this a circle trip PU.
Because the three fare components are part of one circle trip PU, ½ of the
applicable RT fare is used to price each fare component. The fare components
must stay on one ticket as ½ RT fares cannot be ticketed independently.
The first (PAR-SHA) and second (SHA-HKG) fare components are priced in
the direction of travel. The third fare component (HKG-SEL-PAR) is priced in
the reverse direction of travel (applying the fare from PAR to HKG) because the
journey origin and destination cities are the same (PAR).
23OCT**06NOV**/MU PARSHA/NLX;EH/TPM 5746/MPM 7940

24 LKSRFR 1019.92 L NRF S31OCT - @- @ 12M@ R
24OCT**07NOV**/MU SHAHKG/NLX;EH/TPM 773/MPM 927

11 LSRCH 421.48 L @ -- @- - 6M@ R
23OCT**06NOV**/KE PARHKG/NLX;TS/TPM ...../MPM 9620

11 YRTKE 2649.44 Y 90 - - @- - - R
Figure 12.4.29—PAR-SHA, SHA-HKG and PAR-HKG fare displays


Fare component 1 = NUC 509.96 (1/2 of the RT LKSRFR fare
NUC 1019.92 ÷ 2);
Fare component 2 = NUC 210.74 (1/2 of the RT LSRCH fare NUC 421.48 ÷ 2);
Fare component 3 = NUC 1324.72 (1/2 of the RT YRTKE fare
NUC 2649.44 ÷ 2).
12.4.2.4 Open Jaw Pricing Units

An open jaw pricing unit is a return journey interrupted by a surface sector (or
gap) in the air journey. The surface sector may be at the pricing unit's
• origin,
• turnaround, or
• origin and turnaround.
The surface sector(s) can be domestic or international depending on what the
applicable fare rule allows. It has two fare components, each priced with ½ RT
fares.
Like round trip and circle trip pricing units, the fare for the outbound component
of an open jaw is quoted in the actual direction of travel while the inbound fare
component is priced in the reverse direction of travel.
There are some exceptions when an international PU gap at origin is between
cities which are very far from each other.
For example, in the journey MRU – LON – SYD, the turnaround point is LON.
However, the distance between MRU and SYD is greater than the flown
distances of MRU-LON and LON-SYD. Hence, in such journeys, the 2 fare
components are priced with OW fares and in the direction of travel for both fare
components.
Example 9: Origin Open Jaw (OOJ)
The surface sector in an origin open jaw (OOJ) PU is between the origin and
destination points.

NBO
ADD ET 303 E 10SEP 1135 EPRKE 10OCT 2P
MBA ET 322 O 23SEP 0900 OPRKE 14SEP 10OCT 2P
USD 46.00 10SEP**NBO ET ADD23.00ET MBA20.00Q NBOMBA
3.22NUC46.22END ROE1.000000
Figure 12.4.30—Sample OOJ NBO-ADD-MBA
The open jaw is between NBO and MBA, two points in Kenya. The open jaw at
origin is domestic. The outbound fare component (NBO-ADD) is priced at NUC
23.00 with fare type EPRKE which is ½ of the NBO-ADD fare. The inbound fare
component (ADD-MBA) is priced at NUC 20.00 with fare type OPRKE which is
½ of the MBA-ADD fare. These are RT fares.

10SEP**24SEP**/ET NBOADD/NLX;EH/TPM 725/MPM 870

01 *EPRKE 46.00 E @ T27FEB - @- - 1M R
10SEP**24SEP**/ET MBAADD/NLX;EH/TPM 902/MPM 1189

01 OPRKE 40.00 O NRF - - @- 4 1M R
Figure 12.4.31—Fare displays for NBO-ADD and MBA-ADD

Fare component 1 = NUC 23.00 (1/2 of the published round trip EPRKE fare
NUC 46.00 ÷ 2);
Fare component 2 = NUC 20.00 (1/2 of the published round trip OPRKE fare
NUC 40.00 ÷ 2).
Example 10: Turnaround Open Jaw (TOJ)
A turnaround open jaw (TOJ) is a PU with a surface sector at the point of
turnaround.

ADD
NBO ET 304 Q 03DEC 1100 QPRET 03MAR 2P
MBA SURFACE
ADD ET 323 Q 10DEC 1730 QPRET 03MAR 2P
USD 183.00 03DEC**ADD ET NBO78.00/-MBA ET ADD92.50Q
ADDADD12.95NUC183.45END ROE1.000000
Figure 12.4.32—Sample TOJ ADD-NBO/-MBA-ADD
The terminal points of the surface sector are NBO and ADD. In the fare
breakdown field, the symbol /- between two ticketed points represents a
surface sector for which there is no travel by air at the turnaround point
between NBO and MBA. The symbol separates the OB (ADD-NBO) and IB
(MBA-ADD) fare components.
03DEC**17DEC**/ET ADDNBO/NLX;EH/TPM 725/MPM 870

03 QPRET 156.00 Q @ -- @- - 3M R
QPRET NUC 156.00. 1/2RT = NUC 78.00
03DEC**17DEC**/ET ADDMBA/NLX;EH/TPM 902/MPM 1189

01 QPRET 185.00 Q @ -- @- - 3M
QPRET NUC 185.00. 1/2 RT = NUC 92.50
Figure 12.4.33—Fare displays ADDNBO and ADDMBA
Although the same fare type (QPRET) applies to each fare component, the fare
amounts per fare component are different (OB NUC 78.00; IB NUC 92.50).
This is because the construction points are different per component.

Let's examine a TOJ with an international surface sector: SEL – MOW /– BJS –
SEL.
1 KE 923 Y 20JUL 5 ICNSVO DK1 1335 1650 20JUL E 0 333 DL
3 ARNK
4 KE 854 Y 10SEP 1 PEKICN DK1 2140 0045 11SEP E 0 77W M
The passenger will travel from Moscow to Beijing on the Trans-Siberian

Railway. The air journey has a surface gap at turnaround, between MOW and
BJS. The surface sector is international (between Russia and China).
SEL
MOW KE 923 Y 20JUL 1335 YRT 20JUL 20JUL 1P
BJS SURFACE
SEL KE 854 Y 10SEP 2140 YRT 10SEP 10SEP 2P
KRW 2092000 20JUL**SEL Q52.20 1475.14/-BJS KE
SEL Q16.43 337.65NUC1881.42END

Fare component 1 = NUC 1475.14 or ½ of the SEL-MOW YRT fare;
Fare component 2 = NUC 337.65 or ½ of the SEL-BJS YRT fare.
Example 11: Double Open Jaw (DOJ)–domestic/international
A double open jaw is a PU with a surface sector at both the origin and
turnaround points.

MIA
RIO AA 905 Y 10DEC 2250 Y1NFFSN5 2P
BUE SURFACE
NYC AA 954 Y 18DEC 2240 Y1NFFSN5 2P
USD 5039.00 10DEC**MIA AA RIO Q65.00 2565.00/-BUE AA
NYC Q280.00 2129.00NUC5039.00END ROE
USD 5.65YC 1.000000
Figure 12.4.34—Pricing for DOJ journey MIA-RIO /- BUE-NYC
In this example, the journey origin (MIA), turnaround (RIO/BUE) and end
destination (NYC) points differ. However, the fare type code is the same OB
and IB (Y1NFFSN5). The booked airline (AA) happens to sell the same fare
type between similar markets (USA-South America) on direct services.
10DEC**24DEC**/AA MIARIO/NLX;WH/TPM 4174/MPM 5008

01 Y1NFFSN5 2565.00 5130.00 Y - -- @ @- - M
10DEC**24DEC**/AA NYCBUE/NLX;WH/TPM 5315/MPM 6378

01 Y1NFFSN5 2129.00 4258.00 Y - -- @ @- - M
Figure 12.4.35—Fare displays for outbound MIARIO AA fares and inbound

BUENYC AA fare
According to the fare displays for MIA-RIO and NYC-BUE, fare amounts are
different, although the fare type is the same. This is understandable because
the ticketed points (cities) are different.

The Y1NFFSN5 fares are published one way and round trip (return). The
system applies ½ RT fares to each component.
Fare component 1 = NUC 2565.00 or ½ of the MIA-RIO Y1NFFN5 fare;
Fare component 2 = NUC 2129.00 or ½ of the NYC-BUE Y1NFFN5 fare.
Example 12: Double Open Jaw (DOJ) – domestic/domestic
Whether a return journey is a RT, CT, OOJ, TOJ or DOJ, there are at least two
fare components to price. The applicable fares OB and IB must allow
combination with each other. The rule for each fare will state if it is combinable
with another fare. Pricing systems are automated to verify every fare rule and
check combinability between different fares.

MEL
DPS JQ 43 H 10DEC 1005 HLOW2 10DEC 10DEC 20
JKT SURFACE
SYD QF 42 L 21DEC 1900 LSCG 21DEC 21DEC 30
AUD 911.00 10DEC**MEL JQ DPS292.86/-JKT QF SYD398.32
NUC691.18END ROE1.318008
Figure 12.4.36—Pricing for DOJ journey MEL-DPS /- JKT-SYD
In this example, the PU's origin (MEL), turnaround (DPS/JKT) and end
destination (SYD) points differ. The outbound is booked on JQ – Jetstar, and
the inbound on QF – Qantas, representing interline travel. The PU allows the
combination of a JQ (HLOW2) and QF (LSCG) fare.
10DEC**24DEC**/JQ MELDPS/NLX;EH/TPM 2725/MPM 3270

01 HLOW2 292.86 585.72 H NRF - - @ @- - R
10DEC**24DEC**/QF MELJKT/NLX;EH/TPM 3228/MPM 3873

11 LSCG 796.64 L @ -- @ @- 12M R
Figure 12.4.37—Fare displays for outbound MELDPS JQ fares and inbound

MELJKT QF fare
From the fare display, we see that the outbound JQ HLOW2 fare publishes a
OW and a RT amount. The pricing system applies the one way (OW) fare.
However, the inbound QF LSCG fare is published as a RT fare at NUC 735.94.
It does not publish a OW fare amount. Hence, ½ of this fare applies inbound
(NUC 796.64 ÷ 2 = NUC 398.32).
Fare component 1 = NUC 292.86 for the MEL-DPS HLOW2 fare;
Fare component 2 = NUC 398.32 or ½ of the MEL-JKT LSCG fare.

12.4.2.5 Round the World (RTW) Pricing Units

A RTW PU has only one Atlantic Ocean and one Pacific Ocean crossing. The
journey origin and destination must be the same point. It has at least 2 fare
components, each one with a different Global Indicator. RTW PUs are priced in
the same way as CT PUs.

LAX
FRA LH 457 Y 10DEC 1530 Y77RT 1P
TYO LH 716 Y 20DEC 1750 Y77RT 1P
LAX UA 33 K 29DEC 1730 KLW0ZNJD 1P
USD 3850.00 10DEC**LAX LH FRA LH TYO M3600.00UA LAX
250.00NUC3850.00END ROE1.000000
Figure 12.4.38—Pricing for RTW journey LAX-FRA-TYO-LAX
The fare break point is TYO and the journey has 2 fare components (LAX-FRA-
TYO and TYO-LAX).
10DEC**24DEC**/LH LAXTYO/NLX;AT/TPM ...../MPM 14991

01 Y77RT 7200.00 Y - -- - - 12M
29DEC**12JAN**/UA LAXTYO/NLX;PA/TPM 5458/MPM 6549

06*KLW0ZNJD 500 K NRF S- 567@ @- 12M R
Figure 12.4.39—Fare displays for outbound LAX-FRA-TYO LH fare and inbound

TYO-LAX UA fare
When we retrieve LH and UA fare displays for the fare construction points
LAX-TYO, we see that OB fare component LAX-FRA-TYO represents the AT
global Indicator, while the inbound component TYO-LAX is PA.
Fare component 1 = NUC 3600.00 or ½ of the LAX-TYO Y77RT fare;
Fare component 2 = NUC 250.00 or ½ of the LAX-TYO KLW0ZNJD fare.
Airline Alliances (Star Alliance, Oneworld and Sky Team) commonly publish
special Round the World fares that permit interlining between alliance member
airlines.

Study Check 12.4
Choose the correct answer.
1. What type of journey is it?

1 SU 046 Y 05OCT 5 SVOLED DK1 0040 0155
(a) OW
(b) RT
(c) CT
(d) OOJ
(e) TOJ
(f) DOJ
(g) RTW

1 KE 074 Y 15JUL 7 YYZICN DK1 1240 1520 16JUL
2 KE 073 Y 29JUL 7 ICNYYZ DK1 0935 0945 29JUL
3 KE 6527 Y 29JUL 7 YYZYUL DK1 1200 1327 29JUL
(a) OW
(b) RT
(c) CT
(d) OOJ
(e) TOJ
(f) DOJ
(g) RTW

1 AV 140 Y 18AUG 6 LIMBOG DK1 0320 0630 18AUG
2 ARNK
3 AV 147 Y 25AUG 6 MDELIM DK1 1735 2030 25AUG
(a) OW
(b) RT
(c) CT
(d) OOJ
(e) TOJ
(f) DOJ
(g) RTW


1 AF 022 Y 27FEB 2 CDGJFK DK1 0910 1200 27FEB
2 KL 644 Y 30MAR 5* JFKAMS DK1 2215 1135 31MAR
3 KL 1233 Y 31MAR 6* AMSCDG DK1 1225 1340 31MAR
(a) OW
(b) RT
(c) CT
(d) OOJ
(e) TOJ
(f) DOJ
(g) RTW

1 LH 2019 Y 23JUN 6* DUSMUC DK1 1930 2035 23JUN
2 LH 4924 Y 23JUN 6* MUCHND DK1 2125 1550 24JUN
3 CA 184 Y 10JUL 2 HNDPEK DK1 0830 1120 10JUL
(a) OW
(b) RT
(c) CT
(d) OOJ
(e) TOJ
(f) DOJ
(g) RTW

1 AC 420 Y 10AUG 5* YYZYUL DK1 1700 1814 10AUG
2 AC 808 Y 10AUG 5* YULCMN DK1 1905 0710 11AUG
3 ARNK
4 AC 1961 Y 23AUG 4 LISYUL DK1 0945 1210 23AUG
(a) OW
(b) RT
(c) CT
(d) OOJ
(e) TOJ
(f) DOJ
(g) RTW


1 KE 5902 Y 10SEP 1 CDGICN DK1 1310 0710 11SEP
2 KE 017 Y 23SEP 7 ICNLAX DK1 1430 0940 23SEP
3 AF 065 Y 27SEP 4 LAXCDG DK1 1515 1100 28SEP
(a) OW
(b) RT
(c) CT
(d) OOJ
(e) TOJ
(f) DOJ
(g) RTW
Identify the type of open jaw (OOJ, TOJ, DOJ).
8. SYD VA POM VA BNE

(a) OOJ
(b) TOJ
(c) DOJ
9. WDH SA JNB/-CPH SA WDH

(a) OOJ
(b) TOJ
(c) DOJ
10. NBO KQ MIL/-ROM ET ADD KQ NBO

(a) OOJ
(b) TOJ
(c) DOJ
11. NBO KQ MIL/-LON ET ADD KQ MBA

(a) OOJ
(b) TOJ
(c) DOJ
12. MAD IB NYC IB BCN

(a) OOJ
(b) TOJ
(c) DOJ

13. Is the surface sector domestic or international?

HRE KQ LUN331.50/-NBO KQ JNB884.00NUC1215.50END ROE1.00
(a) Domestic
(b) International

BKK GA JKT285.45/-DPS TG BKK472.51NUC757.96END ROE32.93
(a) Domestic
(b) International

DEL CZ NBO641.54AI BOM641.54NUC1283.08END ROE61.9206
(a) Domestic
(b) International
Try Activity 6 in your Workbook.

12.4.3 Unit Summary

• A journey is the base for quoting the different fares.
• A typical one way fare component is the same as a one way PU where the
origin and destination points are not in the same country.
• Round and Circle Trips are both return trip Pricing Units where the unit
origin and destination points are the same. Both use half round trip
(1/2 RT) fares.
• The main differences between a round and circle trip are:
○ A RT must only have two fare components
○ A CT may have two or more with different global indicators
○ The outbound and inbound fares are the same for a RT unless the
fares differ because of carrier, day or class
• An Open Jaw is also a type of return trip Pricing Unit using ½ RT fares.
This may have single or double instances of surface sectors. The terminal
points of the sectors may be located at:
○ the origin point (OOJ)
○ the turnaround point (TOJ)
○ or both (DOJ)
• The surface sector(s) could be domestic or international depending on the
parameters outlined in the normal or special fare rule.
Apply Your Learning
“Why bother with round trip variations?”
If a journey is considered to be a circle trip, then there are extra steps and
checks to apply. These unnecessary complications can be avoided if treated as
a round trip.

12.5 Fare Basis Codes and Fare Types
• Explain the difference between cabin class and booking class

(Unit 12.5.1).
• Identify booking class codes in GDS fare displays (Unit 12.5.1).
• Determine the booking class code when it is not the fare basis primary
Unit Learning code (Unit 12.5.2).
Objectives • Identify key differences between normal unrestricted, normal restricted
By completing this Unit, and special fare conditions (Unit 12.5.3).
you will be able to: • Decode characters in the basis code to gain insight on fare conditions
(Unit 12.5.4).

Fares are published according to many different features: carrier, journey type,
global indicator, class of service, and more. Every city pair publishes a range of
fares. Each one has its own set of rules or conditions. The rules for a fare can
be quite long to read. Each fare is identified by a fare basis code. The pattern of
characters in a fare basis code can help identify one or more rule condition.
Such patterns help travel professionals conclude one or more rule conditions
for the fare.
It is important to note that the concepts taught in this Unit do not represent
standards that all airline industry players must follow. They are trends and
tendencies commonly followed by airlines in establishing fares and their rules.
12.5.1 Cabin Class versus Booking Class

Each fare determines the cabin class the passenger will sit in and the booking
class code to reserve a seat. Reservation Booking Designator (RBD) is another
term for booking class code.
An aircraft cabin's configuration depends on a number of market factors and
aircraft equipment. In general, international long-haul flights are configured with
three main cabin classes: First, Business and Economy. It costs more to travel
in First Class while the lowest fares are for travel in Economy Class.
Some offer a fourth cabin class named Premium Economy. It is a separate
cabin class positioned between Economy and Business class. Premium
Economy class fares are higher than Economy class fares because Premium
Economy Class offers more value, such as added comfort (more seat space)
and amenities (meal choice) or advance seat selection. Not all airlines offer a
Premium Economy Class, just as not all airlines offer a First Class and/or
Business Class cabin on all their flights today.
In general, each cabin class offers more than one fare or a range of fares. The
airline controls the number of seats that can be sold for a published fare by
establishing booking class codes. Airlines call this “Revenue Management”.
Booking class codes are single letter characters, presented as a string in a
flight availability display. Each booking class code is followed by the number of
seats available.
Unit 12.5: Fare Basis Codes and Fare Types 935

1 LH 400 F7 A2 J9 C9 D9 Z9 P9 /FRA 1 JFK 1 1100 1340 E0/388 8:40

G9 E9 N6 Y9 B9 M9 U9 H9 Q9 V9 W9 S9 T9 L6
Figure 12.5.1—Sample FRA-NYC availability display with booking class codes
and number of seats available per code for travel on LH
Although there is no standard for setting booking class codes per cabin, there
are common patterns followed by airlines.
First class: P, F, A
Business class: J, C, D, Z, I
Premium economy class: W
Economy class: any other letter code
Normally, there are many more booking class codes for published economy
class fares. Just the same, each airline is free to decide which letters represent
their cabin classes.
Airlines assign a fare basis code (FBC) to each fare. The fare basis code is a
string of alpha or alpha-numeric characters. It appears in the same line as the
fare value in a GDS fare display. It also appears on the ticket issued for the fare
sold. Each character of the fare basis code means something to the airline that
publishes it.
142ARCDE0W 5020 A @ - - @ @ 2@ 12M R

143CFFDE0W 5120 C - - - @ @ - 12M R
144Y77OW 2834 Y - - - - - - M
145JFFDE0W 5820 J - - - @ - - 12M R
Figure 12.5.2—Sample FRA–NYC LH fare basis codes in a GDS fare display for
travel on LH
Let's identify the fare basis code in line 142 of the fare display in Figure 12.5.2.
The fare basis code is ARCDEOW and the fare value is EUR 5020.00. What
booking class code must be booked for this fare?
Line 142 displays the letter “A” after the fare value. It is the booking class code
for the ARCDEOW fare of EUR5020.00. Hence, the ARCDEOW fare must be
booked in A class on flight LH400.
The same fare display lists the CFFDEOW fare basis code that must be
booked in C class. And the Y77OW fare must be booked in Y class. Have you
noticed a pattern? Very often, the first letter of the fare basis code, also called
the primary code, is the same as the booking class code for the fare. But not
always!
Suppose we sell the ARCDEOW fare basis code (EUR 5020.00) by booking
the flight in A class, which cabin class would the passenger sit? If we display
the fare rule, we’ll know the cabin class for this fare.

142ARCDE0W 5020 A @ - - @ @ 2@ 12M R

143CFFDE0W 5120 C - - - @ @ - 12M R
144Y77OW 2834 Y - - - - - - M
145JFFDE0W 5820 J - - - @ - - 12M R
LN FARE BASIS OW EUR RT B PEN DATES/DAYS AP MIN MAX R
142ARCDE0W 5020 A @ - - @ @ 2@ 12M R
FCL: ARCDE0W TRF: 1 RULE: WFWW BK: A
PTC: ADT-ADULT FTC: FX -FIRST CLASS EXCURSION
FARE FAMILY : STANDARD
FARE FAMILY DESCRIPTION : INCLUDING BAG
RU.RULE APPLICATION
LUFTHANSA RESTRICTED FARE
Figure 12.5.3—Fare rule for FRA–NYC LH ARCDEOW fare for travel on LH
We see that the passenger will travel in first class if the flight is booked in A
class. Let's look at a fare from PAR to NYC on AF and specifically at a fare
booked in A class.
199SLW2SFFR 1570 S NRF S - @30 @ - M

200AHXSRFR 1574 A NRF S - @14 SU @ 12M M
FCL: AHXSRFR TRF: 1 RULE: FRSR BK: A
PTC: ADT-ADULT FTC: ZEX-PREMIUM ECONOMY EXCURSION
FARE FAMILY : PREMIUM
FARE FAMILY DESCRIPTION : PREMIUM ECONOMY
Figure 12.5.4—PAR–NYC AHXSRFR fare must be booked in “A” class
The AHXSRFR fare basis code, booked in A class, is categorized as a

Premium Economy Excursion fare for travel in the Premium Economy Class
cabin. In conclusion, booking class code A does not represent the same cabin
class for LH and AF. Both airlines publish fares booked in “A” class.
Lufthansa's A booking class is for a seat in the First Class cabin. Air France's A
booking class is for a seat in the Premium Economy Class cabin.
Key Learning Point

Each airline sets the fare basis code, booking class code and the cabin class
traveled for its fares, often following common patterns where the fare basis
primary code determines the booking class code.
12.5.2 Booking Class Code Different from Prime

Code
Although the fare basis primary code is often the booking class code, there are
cases where it is not. It is more common in journeys with domestic flights or
with interline travel between different airlines.

10JAN **24JAN /AA MIABUE/NLX;WH/TPM 4417/MPM 5300

LN FARE BASIS OW USD RT B PEN DATES/DAYS AP MIN MAX R
79 LLW0NSW1 2797 W NRF S - 567 @ @ @ 12M M
80 HLN0ASW1 1425 2850 W NRF S - - @ @ @ - M
81 MLX0NSW1 2898 W NRF S - 1234 @ @ @ 12M M
82 HLN0ASW1 1465 2930 W NRF S - - @ @ @ - M
83 MLN0ASW1 1465 2930 W NRF S - - @ @ @ - M
84 INX5ISN1 2980 I NRF - @ 50 @ @ 12M M
85 KLN0ASW1 1540 3080 W NRF S - - @ @ @ - M
86 INW5ISN1 3180 I NRF - @ 50 @ @ 12M M
Figure 12.5.5—MIA–BUE Fare basis codes ending in SW1 booked in W class
In Figure 12.5.5, the fare basis codes in lines 79 to 83 and in line 85 display L,
H, M or K primary codes. However, these fares must be booked in W class. If
direct MIA-BUE flights are reserved, they must obviously be booked in W class.
The situation becomes more complicated when booking indirect services.

05 EPROWNL 130 E NRF B01JAN O31OCT @ @- - R
06 VL6MNL 270 V NRF S22MAR - @ - 6M R
Figure 12.5.6—AMS-THR VL6MNL fare for travel on KK
In Figure 12.5.6, the VL6MNL fare must be booked in V class. Travel from AMS
to THR roundtrip is booked in V class accordingly. There are no direct KK
flights from AMS to THR. Travel must be via IST. IKA is the airport code for
THR (Iman Khomeini Airport).
1 KK2248 V 14FEB 4 AMSIST DK1 1445 2015 14FEB E 0 320 M

2 KK1184 V 14FEB 4 ISTIKA DK1 2345 0315 15FEB E 0 321
3 KK1185 V 11MAR 1 IKAIST DK1 0600 0845 11MAR E 0 321
4 KK2247 V 11MAR 1 ISTAMS DK1 1135 1315 11MAR E 0 320 M
When the itinerary is priced by the system at the VL6MNL fare, the system
automatically rebooks the AMS-IST and IST-AMS flights in L class.

AMS
XIST KK 2248 L 14FEB 1445 VL6MNL 14AUG 30
THR KK 1184 V 14FEB 2345 VL6MNL 14AUG 30
XIST KK 1185 V 11MAR 0600 VL6MNL 14AUG 30
AMS KK 2247 L 11MAR 1135 VL6MNL 14AUG 30
EUR 275.00 14FEB AMS KK X/IST KK THR154.05KK X/IST

KK AMS154.05Q AMSAMS5.70NUC313.80END ROE
EUR 10.88-CJ 0.876291
EUR 12.43-RN XT EUR 10.00-TR EUR 4.00-I6 EUR 3.50-IR
EUR 17.50-XT
EUR 315.81
BAG/OTHER SERVICES AT A CHARGE MAY BE AVAILABLE-ENTER FXK
BG CXR: 2*KK/2*KK
Figure 12.5.7—AMS–THR itinerary priced by the system

The system's autopricing function automatically rebooks itinerary segments in

the correct booking class code.

PTY
XPAR AF 475 O 25JAN 2105 O3LSPA 25JAN 25JAN 2P
NCE AF 7706 J 26JAN 1520 O3LSPA 26JAN 26JAN 2P
XPAR AF 7705 J 10FEB 1035 ZSFPA 10FEB 10FEB 2P
PTY AF 474 Z 10FEB 1345 ZSFPA 10FEB 10FEB 2P
USD 2527.00 25JAN PTY AF X/PAR AF NCE917.50AF X/PAR

AF PTY1609.00NUC2526.50END ROE1.000000
USD 202.51-PA XT USD 340.00-YR USD 2.50-AH USD 12.00-F3
USD 26.00-YQ USD 40.00-FZ USD 21.97-QX USD 51.80-IZ USD
USD 526.41-XT 21.78-QW USD 9.36-FR USD 27.00-FR
USD 3281.92
Figure 12.5.8—PTY–NCE return journey priced with a mix of booking class codes
Figure 12.5.8 represents a system generated fare for PTY-X/PAR-NCE-

X/PAR-PTY where all flight segments are booked on AF.
The basis code for the outbound component is O3LSPA. The first flight
segment (international PTY-PAR) is booked in “O” class, matching the fare
basis prime code. The second flight segment (domestic PAR-NCE) is booked
in “J” class.
The inbound component fare is ZSFPA. The third flight segment (domestic
NCE-PAR) is booked in “J” class while the second flight segment (international
PAR-PTY) is booked in “Z” class.
Key Learning Point

The fare basis primary code is not always the booking class code (RBD),
especially when booking indirect services. Booking systems are able to modify
the booking class code when itineraries are autopriced.
12.5.3 Normal versus Special Fares

Carriers differentiate between higher fares that offer more value or flexibility
and lower fares with few amenities many more limitations. They name these
two fares categories: normal and special.
• normal fares: unrestricted or restricted
• special fares

12.5.3.1 Normal Unrestricted Fares

In general, normal fares offer the greatest flexibility. Consequently, they are the
highest fares with fewest restrictions. The term “unrestricted” can be mislead-
ing. For example, a common restriction for normal fares is a “no show” penalty.
1SU:KE5924 J9 C9 D9 Y9 B9 M9 S9 /SVO D ICN 1 2055 1120+1E0/77W 8:30
20DEC **03JAN /KE MOWSEL/NLX;RU/TPM 4096/MPM 6506

41 COWKE 2760 C 90 - - - - - R
42 JRTKE 5600 J 90 - - - - - R
43 FRTKE 6500 F 90 - - - - - R
44 JOWKE 3360 J 90 - - - - - R
20DEC **03JAN /KE MOWSEL/NLX;RU/TPM 4096/MPM 6506
44JOWKE 3360 J 90 - - - - - R
FCL: JOWKE TRF: 795 RULE: 5000 BK: J
PTC: ADT-ADULT FTC: JU -BUSSN PREMIUM UNRESTRICTED
PE.PENALTIES
BETWEEN EUROPE AND KOREA, REPUBLIC OF
ORIGINATING EUROPE -
CHANGES/CANCELLATIONS
ANY TIME
CHARGE EUR 90.00 FOR NO-SHOW.
CHILD/INFANT DISCOUNTS APPLY.
WAIVED FOR DEATH OF PASSENGER OR FAMILY MEMBER.
Figure 12.5.9—Normal one way unrestricted fare MOW-SEL JOWKE for travel
on KE
The JOWKE is described as a Business Class Premium Unrestricted fare. The

passenger who purchases a ticket for this fare can make reservation changes
without additional charge or cancel the trip with a full refund. However, if the
reservation is not changed or cancelled before departure, and the passenger
does not travel as booked, the airline considers the passenger to be a “no
show” passenger, absent at flight check in and boarding. Because the airline
cannot resell the booked J seat, the fare can be refunded less the no show
charge of EUR 90.00 (fare EUR3360.00 less no show charge of EUR90.00).

12.5.3.2 Normal Restricted Fares

On the other hand, the rules for a Normal Restricted Fare define additional
conditions which are limitations such as stopover, reservation change and
refund charges. This applies to normal restricted fares for travel in any cabin,
even First Class.
1 MH 713 J9 C9 D9 Z6 I3 U1 Y9 /KUL M CGK 3 0725 0830 E0/738 2:05
FCL: JBZOWMY TRF: 8 RULE: MY02 BK: J

PTC: ADT-ADULT FTC: BR -BUSINESS CLASS RESTRICTED
PE.PENALTIES
BETWEEN MALAYSIA AND SOUTHEAST ASIA FOR JBZOWMY TYPE FARES
CHANGES
ANY TIME
CHANGES PERMITTED FOR REISSUE.
NOTE -
ANY TIME. FOC FOR CHANGE/REISSUE
---------------------------------
GO SHOW - ALLOWED AT FOC FOR TRAVEL ON EARLIER
FLIGHTS ON THE SAME DATE OF DEPARTURE
---------------------------------
IF TICKET IS BEING CANCELLED DUE TO VISA
REJECTION REFUND PERMITTED. DOCUMENTARY
CANCELLATIONS
BEFORE DEPARTURE
CHARGE MYR 400.00 FOR CANCEL/REFUND.
NOTE -
FULLY UNUTILIZED TICKETS-CHARGE MYR 400 FOR
CANCEL/REFUND
AFTER DEPARTURE
CHARGE MYR 400.00 FOR CANCEL/REFUND.
NOTE -
FULLY UNUTILIZED TICKETS- CHARGE MYR400
ANY TIME
CHARGE MYR 350.00 FOR NO-SHOW.
NOTE -
NO SHOW -FOR TICKET REISSUANCE/CHANGES - NO SHOW
FEE WITH CHANGE FEE PLUS ANY FARE DIFFERENCE
WILL APPLY.
Figure 12.5.10—Normal restricted fare rule for MH one way KUL-JKT JBZOWMY
fare
The KUL-JKT JBZOWMY fare (Figure 12.5.10) is a Business Class Restricted

fare, booked in J class. Although it permits reservation changes at no charge, a
trip cancellation before or after departure carries a penalty of MYR 400.00. Like
many unrestricted fares, a no-show charge also applies.

12.5.3.3 Special Fares

Special fares cost less than normal fares, but are more restrictive. Some
special fares are also called promotional fares. Special fares exist for travel in
all cabin classes. They can impose many conditions and limitations on the
ticket, most commonly these:
• a fee to change a reservation or no reservation change permitted;
• a cancellation charge if an unused ticket is submitted for refund or no
refund at all if cancelled;
• fees for checked bags;
• advance purchase requirements;
• minimum and maximum travel periods;
• seasonal travel period restrictions … and more.
Special fares are categorized as Budget and Excursion fares.
10JAN **24JAN /IB MADCAS/NLX;EH/TPM 539/MPM 646

01ARYNVY 106 A NRF - - @ @ - 12M R
02AWYNVY 55 A NRF - - @ @ - - R
03 ORYNVY 112 O NRF - - @ @ - 12M R
FQN3
** RULES DISPLAY ** TAX MAY APPLY
SURCHG MAY APPLY-CK RULE
10JAN **24JAN /IB MADCAS/NLX;EH/TPM 539/MPM 646
03ORYNVY 112 O NRF - - @ @ - 12M R
FCL: ORYNVY TRF: 21 RULE: VY02 BK: O
PTC: ADT-ADULT FTC: PRO-ECONOMY CLASS PROMOTIONAL
FARE FAMILY : OPTIMA
FARE FAMILY DESCRIPTION : OPTIMA
CHANGES
BEFORE DEPARTURE
PER DIRECTION CHARGE EUR 50.00.
NOTE -
PERMITTED UNTIL 2HRS BEFORE ORIGINALLY SCHEDULED FLIGHT. A CHANGE IS A
DATE/FLIGHT/ROUTING/BOOKING CODE MODIFICATION.
-------------------------------------------------
FARE CAN BE UPGRADED TO ANY EQUAL OR HIGHER FARE.
Figure 12.5.11—Special IB MAD-CAS ORYNVY fare carries a fee for reservation
changes
The Economy Class Promotional fare ORYNVY from MAD to CAS allows
reservation changes if a fee is paid. After purchase, a change to the departure
or return date, booking class, routing or flight will cost the passenger EUR
50.00 per change.

10JAN **24JAN /BA MIAMAD/NLX;AT/TPM 4417/MPM 5300

01 OLX8T7B5 22 O NRF S - @28@ 7@ 6M R
02 OLX8T7B5 35 O NRF S - @28@ 7@ 6M R
03*OLN8Z0B5 60 O NRF S - T10OCT@28@ @ 12M R
10JAN **24JAN /BA MIAMAD/NLX;AT/TPM 4417/MPM 5300
01 OLX8T7B5 22 O NRF S - @28@ 7@ 6M R
FCL: OLX8T7B5 TRF: 1 RULE: J505 BK: O
PTC: ADT-ADULT FTC: ERU-ECONOMY RT UNBUNDLED
FARE FAMILY : NOBAG
FARE FAMILY DESCRIPTION : BASIC ECONOMY
RU.RULE APPLICATION
FOR OLX8T7B5 TYPE FARES
SPECIAL ECONOMY HAND BAGGAGE ONLY FARES /ZERO BAGGAGE
ALLOWANCE MUST BE DISCLOSED TO CUSTOMER/
Figure 12.5.12—Special BA MIA-MAD Economy OLX8T7B5 return fare charges for
reservation changes
The OLX8T7B5 fare from MIA to MAD is described as an Economy Class

Roundtrip Unbundled fare. This fare does not allow the passenger to check-in
baggage. Passengers who purchase this fare and want to travel with checked
baggage will pay a separate fee for the baggage.
10OCT **15SEP /KQ DOHDAR/NLX;EH/TPM 2373/MPM 2847

LN FARE BASIS OW QAR RT B PEN DATES/DAYS AP MIN MAX R
18 YFFQA 6020 Y 550@ - - - - 12M R
19 DSFQA 6540 D @ - - - - 12M R
10OCT **15SEP /KQ DOHDAR/NLX;EH/TPM 2373/MPM 2847
LN FARE BASIS OW QAR RT B PEN DATES/DAYS AP MIN MAX R
19 DSFQA 6540 D @ - - - - 12M R
FCL: DSFQA TRF: 34 RULE: QA01 BK: D
PTC: ADT-ADULT FTC: BX -BUSINESS CLASS EXCURSION
RU.RULE APPLICATION
KQ BUSINESS AND ECONOMY CLASS FARES.
APPLICATION
Figure 12.5.13—Special DOH-DAR Business Class DSFQA return fare for travel
on KQ
Special fares exist for all cabin classes. The DSFQA fare from DOH to DAR is
a Business Class Excursion fare. Although this fare may allow checked
baggage, reservation changes and a refund, it would apply other types of
restrictions as it is described as an excursion fare–a category type of special
fare. We would find the restrictions for this fare by reading its full rule.

05FEB **19FEB /TK ISTYMQ/NLX;AT/TPM 4797/MPM 5756

01 VLT3PX 259 V NRF S20JUN - @ @SU@ 12M R
02 LLT3PX 319 L NRF S20JUN - @ @SU@ 12M R
05FEB **19FEB /TK ISTYMQ/NLX;AT/TPM 4797/MPM 5756
01 VLT3PX 259 V NRF S20JUN - @ @SU@ 12M R
FCL: VLT3PX TRF: 101 RULE: TRPX BK: V
PTC: ADT-ADULT FTC: XPX-INSTANT PURCHASE EXCURSION
RU.RULE APPLICATION
ECONOMY CLASS TK FARES
APPLICATION
Figure 12.5.14—Special IST-YMQ instant purchase VLT3PX fare for travel on KQ
The VLT3PX fare from IST to YMQ is an Economy Class Instant Purchase
Excursion fare. Instant Purchase Excursion fares are among the lowest
published fares. A unique restriction for “instant purchase” special fares is the
need to purchase the fare immediately when booking travel or within 24 hours
of booking.
15JAN **29JAN /KL MEXAMS/NLX;AT/TPM 5735/MPM 6882

08 AL1X77P1 585 A NRF S- B19OCT@ @ 7@ 12M R
15JAN **29JAN /KL MEXAMS/NLX;AT/TPM 5735/MPM 6882
08 AL1X77P1 585 A NRF S- B19OCT@ @ 7@ 12M R
C30JUN -
FCL: AL1X77P1 TRF: 27 RULE: 2PSN BK: A
PTC: ADT-ADULT FTC: ZAP-PREMIUM ECONOMY ADVANCE PU
RU.RULE APPLICATION
MAIN CABIN FARES
Figure 12.5.15—Special MEX-AMS advance purchase fare AL1X77P1 for travel on
KL
The KLM fare basis code AL1X77P1 Premium Economy Advance Purchase,
priced at USD 585.00, is for travel in the Premium Economy Class cabin. By
interpreting the information displayed in the fare line, we understand that there
are several conditions on this fare:
• a fee for reservation changes and/or cancellation (PEN = NRF)
• a limited travel period (DATES/DAYS = S–B19OCT@)
• an advance purchase requirement (AP = @)
• a minimum stay at destination (MIN = 7@)
• a maximum stay at destination (MAX = 12M)
• a routing definition (R = M)

19JAN **02FEB /AV GUAMAD/NLX;AT/TPM 5414/MPM 6526

01 TZA00KGR 407 T NRF B17OCT O31MAY@ @ 7@ 90@ R
C31MAY -
02 SZA00KGR 527 S NRF B17OCT O31MAY@ @ 7@ 90@ R
C31MAY -
03 WLA00ZIR 672 W NRF S- -@ @ 5@ 365@ R
19JAN **02FEB /AV B /AV GUAMAD/NLX;AT/TPM 5414/MPM 6526
03 WLA00ZIR 672 W NRF S- -@ @ 5@ 365@ R
FCL: WLA00ZIR TRF: 27 RULE: RES2 BK: W
PTC: ADT-ADULT FTC: XEX-REGULAR EXCURSION
FARE FAMILY : SUPERPROMO
FARE FAMILY DESCRIPTION : SUPER PROMO
RU.RULE APPLICATION
FOR ROUND TRIP FARES
SPECIAL ROUND TRIP FARE APPLICABLE BETWEEN AREA 1 AND AREA 2.
Figure 12.5.16—Special advance purchase excursion fare GUA-MAD WLA00ZIR
for travel on KL
Types of fares categorized as Regular Excursion such as WLA00ZIR in Figure

12.5.16 are for travel in the Economy Class cabin. The fare line fields indicate
that there is a cost to change reserved flights or cancel the trip (PEN = NRF).
The cost may be a fee or the loss of the entire fare paid. Travel at this fare is
only permitted at a certain season (DATES/DAYS = S). The fare must also be
purchased in advance of a deadline set by KL (AP = @). The fare also imposes
a minimum and maximum travel period (MIN = 5@ and MAX = 365@). It is only
by reading the full WLA00ZIR fare rule that we can better understand these
conditions.
Key Learning Point

Airlines categorize their fares as normal or special. There is no universal
definition for normal and special fares, except that normal fares offer more
value and flexibility and are more expensive than special fares.

12.5.4 More about the Fare Basis Code

There are millions of air fares and each one is tied to a fare basis code (FBC)
which appears on the ticket to track and identify the fare that was used. There
is no standard format for fare basis coding in the airline industry. Each airline
establishes its own fare basis code. However, airlines in the same region or
country tend to follow similar practices in establishing FBCs.
Although the string of characters in a FBC is meaningful to the carrier that
publishes it, travel professionals can decode some clues about the fare
conditions.
Type of fare condition Sample FBC Explanation

Reservation booking YBIZ3M Y is the RBD for this fare
designator (RBD)
Fare type GFLXSTAR9 FLX indicates this is a flex fare
Minimum and maximum QSR3M 3M at the end of the FBC indicates the
stay fare allows a maximum stay at desti-
nation of three months after departure
Passenger type code HLNCEB/CH25 CH25 indicates that a 25% fare dis-
count is offered for a child
Carrier validity WSTD8BA BA indicates this fare is valid on British
Airways (BA) services only
Country of commence- UNCBSCPL PL indicates this fare applies from
ment of travel country of origin Poland
Seasonality, day of VHW6M H represents travel in high season,
week, part of day while W stands for weekend travel
which is more expensive than midweek
travel
Table 12.5.1—Decoding fare basis code characters
The FBC characters can provide clues about the fare rule conditions, but the
fare rules explain those conditions in more detail.

22JAN **05FEB /SA SAOJNB/NLX;AT/TPM 4634/MPM 5560

01 GHXSAO 615 G @ S27FEB 1234@ @ - 12M R
B29OCT -
FQN01
22JAN **05FEB /SA SAOJNB/NLX;AT/TPM 4634/MPM 5560
01 GHXSAO 615 G @ S27FEB 1234@ @ - 12M R
B29OCT -
FCL: GHXSAO TRF: 27 RULE: SAVE BK: G
PTC: ADT-ADULT FTC: XAP-ADVANCE PURCHASE EXCURSION
RU.RULE APPLICATION
SOUTH AFRICAN AIRWAYS SAVER FARES
APPLICATION
AREA
THESE FARES APPLY
FROM AFRICA TO AREA 1.
CLASS OF SERVICE
THESE FARES APPLY FOR ECONOMY CLASS SERVICE.
SE.SEASONS
BETWEEN AREA 1 AND AFRICA FOR HIGH SEASON FARES
ORIGINATING AREA 1 -
PERMITTED 01JUL THROUGH 15JUL OR 03DEC THROUGH 27FEB ON
THE OUTBOUND TRANSATLANTIC SECTOR.
ORIGINATING AFRICA -
12DEC THROUGH 23DEC ON THE OUTBOUND TRANSATLANTIC
SECTOR.
DA.DAY/TIME
FOR GHXSAO TYPE FARES
PERMITTED MON/TUE/WED/THU.
Figure 12.5.17—Decoding the GHXSAO Advance Purchase Excusion fare basis
code
Figure 12.5.17 displays the GHXSAO fare rule from SAO to JNB. Let's decode
the characters in the FBC string and reference the rule:
G The booking class code or RBD is “G”
H travel can only be in high season–the rule defines high season as
01-15 July or 03 December to 27 February
X travel must be on weekdays–the rule defines weekdays as Monday,
Tuesday, Wednesday and Thursday
SAO the fare applies from point of origin SAO
Key Learning Point

Although it is challenging to interpret a fare basis code, airlines often follow
patterns that provide some clues about the fare conditions such as season or
day of week travel limitations, fare type, maximum travel period, discounts,
market or carrier exclusivity. Nonetheless, it is best to always read the fare rule.

Study Check 12.5
1. Which is TRUE?
(a) A fare basis code can represent two different fare
(b) The primary code is the first letter of the fare basis code
(c) The booking class code is a number character
(d) Each aircraft is configured with four cabin classes
2. Which is TRUE?
(a) First class fares are always booked in A class
(b) A fare display provides information on seat availability
(c) Fare basis codes can display letters, numbers or both
(d) A fare basis code can be sold in more than one booking class
Refer to the LAX-FRA-LAX availability and fare displays to answer

questions 3, 4 and 5.
1LH 457 F4 A0 J7 C0 D0 Z0 P5 LAXFRA 1535 1130 321 B 0 1 AT /E

G9 E6 N6 Y6 B0 M9 U0 H0 Q0 V0 W0 S0 T0 L0
1LH 456 F9 A2 J9 C9 D9 Z0 P9 FRALAX 1025 1320 380 B 0 1 AT /E

G9 E9 N6 Y9 B9 M9 U7 H6 Q0 V0 W0 S0 T0 L0
V FARE BASIS BK FARE TRAVEL-TICKET AP MIN/MAX RTG

1 HHX07RCE H R 1190.00 ---- -/3 7/12M AT01
2 EHX38RCE E R 1202.00 ---- 3/3 ¥¥/12M AT01
3 HHW07RCE H R 1282.00 ---- -/3 7/12M AT01
4 EHW38RCE E R 1282.00 ---- 3/3 ¥¥/12M AT01
5 HHX06RCE H R 1502.00 ---- -/3 SU/12M AT01
6 HHW06RCE H R 1582.00 ---- -/3 SU/12M AT01
7 UHX03RCE U R 1802.00 ---- -/3 3/12M AT01
8 UHW03RCE U R 1882.00 ---- -/3 3/12M AT01
9 EHX30RCE E R 2202.00 ---- 3/3 -/12M AT01
10 EHW30RCE E R 2282.00 ---- 3/3 -/12M AT01¥
V FARE BASIS BK FARE TRAVEL-TICKET AP MIN/MAX RTG

2 EHX38RCE E R 1202.00 ---- 3/3 ¥¥/12M AT01
PASSENGR TYPE-ADT AUTO PRICE-YES
FROM-LAX TO FRA CXR-LH TVL-19JUN RULE-E620 IPRA/1
FARE BASIS-EHX38RCE SPECIAL FARE DIS-E VENDOR-ATP
FARE TYPE-ZAP RT-PREMIUM ECONOMY ADVANCE PURCHASE
USD 1202.00 0400 E29JUL D-INFINITY FC-EHX38RCE FN-

3. Which fare basis code is available to book outbound and inbound?

(a) EHX30RCE
(b) HHX06RCE
(c) UHX03RCE
(d) B and C
4. In which cabin do passengers sit if they are ticketed at the EHX38RCE

fare?
(a) Economy
(b) Premium Economy
(c) Business
(d) First
5. Which is FALSE for the fares displayed?

(a) All are one way economy fares
(b) The display offers only LH fares
(c) The highest fare is booked in U class
(d) The lowest fare is booked in U class
6. Which is a characteristic of all special fares?

(a) They are the highest fares in each cabin class
(b) They apply multiple restrictions on the journey
(c) They limit travel to the Economy Class cabin
(d) They require immediate purchase when booked
7. Which is a common limitation for normal unrestricted fares?

(a) Changes to flight reservations are never permitted
(b) They are totally not refundable after purchase
(c) There is no refund if travel is entirely cancelled
(d) A charge for failing to cancel a booking before departure
8. What does “advance purchase” mean for a special fare?

(a) The itinerary and fare can be booked at any time
(b) The fare does not allow free checked baggage
(c) The passenger must pay by a set deadline
(d) The booking must be paid on the day it is made

9. Consider this partial fare display.
20DEC **25NOV /BA MEXLON/NLX;AT/TPM 5562/MPM 6674

149C2N0C0S1 9199 C - - - @ @ - 12M M
150ANN4C1S3 10108 A @ - - @ 14 @ SU@ 12M M
151ANN7C0S3 11108 A @ - - @ 7 @ - 12M M
152J1N0C0S1 11199 J - - - @ - 12M M
153J1N0C9S1 5849 11698 J - - - @ - 12M M
154ANN0C1S3 12108 A @ - - @ @ SU@ 12M M
Which is NOT a booking class code?
(a) C
(b) J
(c) A
(d) B
Consider the following fare partial display and rule. Answer questions 10
and 11.
20DEC **25NOV /LH FRATYO/NLX;TS/TPM 5928/MPM 7113

53ARCJDE 7619 A @ - - @ - 12M R
54YCOUPON 4831 9662 Y - - - @ - - 12M R
55AFFJDE 10119 A - - - @ - 12M R
56GCOUPON 5158 10316 G - - - @ - - 12M R
20DEC **25NOV /LH FRATYO/NLX;TS/TPM 5928/MPM 7113
53ARCJDE 7619 A @ - - @ - 12M R
FCL: ARCJDE TRF: 44 RULE: JADE BK: A
PTC: ADT-ADULT FTC: FX -FIRST CLASS EXCURSION
PE.PENALTIES
CANCELLATIONS
ANY TIME
CHARGE EUR 410.00 FOR CANCEL/NO-SHOW/REFUND.
NOTE -
WAIVERS MUST BE EVIDENCED BY DEATH CERTIFICATE
REFUND PERMITTED BEFORE DEPARTURE IN CASE OF
REJECTION OF VISA. EMBASSY STATEMENT REQUIRED.
CHANGES
ANY TIME
CHARGE EUR 410.00 FOR REISSUE/REVALIDATION.
NOTE -
REISSUE/REVALIDATION/EXCHANGE PERMITTED.
-----------------------------------------------
CHANGE FEE APPLIES FOR EVERY SINGLE CLOSED
TRANSACTION.
CHILD DISCOUNT DOES NOT APPLY.

10. Which is the fare basis code for the FIRST CLASS EXCURSION fare?
(a) ARCJDE
(b) YCOUPON
(c) AFFJDE
(d) GCOUPON
11. What rule condition exists for this FIRST CLASS EXCURSION fare?
(a) A deadline to purchase the fare before departure
(b) A seasonal start and end travel period
(c) A date change or cancellation for a booked flight
12. Which fare basis code is likely for a one way fare?
(a) ELRTY4
(b) AOWUG7
(c) JLV3R
(d) QL1M1RU2
13. Which fare basis code is likely a flex type fare for travel in Economy Class?
(a) Y1SAV0
(b) D1FFX0
(c) A00DSC0A
(d) M1FLX0
14. Which fare basis code is likely for travel in a low season?
(a) KHXDS
(b) EJX0ZRMK
(c) BLEE
(d) YSERTHK
15. Which fare basis code is likely for travel on a weekend day?
(a) JLV3R
(b) EJX0ZRMK
(c) HLWESNG
(d) WERLIGHT
Try Activity 7.

12.5.5 Unit Summary

A passenger aircraft can be configured with one to four booking classes: First,
Business, Premium Economy and Economy. It is common for airlines to offer a
selection of fares for travel in one cabin class. To accommodate multiple fares
per cabin class, each fare defines a booking class code, also known as the
Reservation Booking Designator. The booking class code is used to book seats
on a flight. In summary, each fare determines the cabin class the passenger
will sit in and booking class code to reserve a seat (Unit 12.5.1).
Airlines assign a fare basis code for each fare, a string of alpha or alpha-
numeric characters. Very often, the first letter of the fare basis code, also called
the primary code, is the same as the booking class code for the fare (Unit
12.5.1).
The fare basis primary code is often the booking class code. A booking
system's autopricing function rebooks itinerary segments in the correct booking
class code (Unit 12.5.2).
Airlines categorize their fares as normal and special. Normal fares are
generally more expensive because they offer more value or flexibility than
special fares. Normal fares are broken down into unrestricted and restricted.
Unrestricted normal fares often apply a “no show” charge should the passenger
not cancel his reservation and not travel. Restricted normal fares can apply
additional limitations such as stopover charges, reservation change fees and
refund charges. Special fares exist for all cabin classes and are less flexible
when it comes to changing or cancelling booked flights, allowing checked bags,
advance purchase deadlines and length or time of travel. No matter which
cabin class and fare is booked, it is extremely important to read and
understand the fare rules (Unit 12.5.3).
Airlines establish their own fare basis codes although they tend to follow
common patterns that travel professionals can decode. The string of fare basis
code characters provide clues on booking class code, time and day of travel,
minimum and maximum travel period, seasonal period, discounts, market
restrictions and other fare conditions (Unit 12.5.4).

12.6 Currency Rules
• Define currency related terms (Unit 12.6.1).

• Identify the types of local currencies (Unit 12.6.2).
• Describe Neutral Unit of Construction (Unit 12.6.3).
• Identify the NUC, IROE and LCF in the fare calculation (Unit 12.6.4).
Unit Learning
Objectives • Explain the rounding process for NUCs and Local Currency Fares
(Unit 12.6.5).
you will be able to: • Explain how ICER bank exchange rates apply and locate them in the fare
calculation (Unit 12.6.6).

When travel is via intermediate points rather than point-to-point, it is impractical
to price journeys with more than one fare component in different currencies
unless a common equivalent unit is used.
This unit shows Neutral Units of Construction (NUC) converted to the Local
Currency Fare. It also introduces the term Country of Commencement of
Travel (COC) and how this impacts the determination of the Local Currency
Fare, as well as the term Country of Payment (COP).
You will learn how to round currencies according to the rounding instructions
set out in the IATA Rates of Exchange (IROE).
12.6.1 Currency-Related Terms

It is worth noting the following key terms for a better understanding of the
currency rules:
The Country of Commencement of Travel (COC) is the country where the
first international flight segment begins. While it may appear identical to country
of origin, there is a big difference.
Example 1: BKI MH KUL SQ SIN QF SYD
Country of origin: BKI = Kota Kinabalu, Malaysia
Note that origin is already defined as the first city in the journey. The COC is
Malaysia where international travel begins.
Example 2: BKI MH KUL/-SIN QF SYD
Country of origin: BKI = Kota Kinabalu, Malaysia
The COC is Singapore where international air travel begins. Malaysia is not the
COC because travel from BKI to KUL is domestic (within the same country of
Malaysia. In this journey, the passenger travels by land from KUL to SIN,
represented as a surface sector (/-).
It is important to know which country is the Country of Commencement of
Travel because the Local Currency Fare is based on the currency of the COC.
In example 1, the Local Currency Fare is in Malaysian Ringgit (MYR) while in
example 2, the Local Currency Fare is in Singapore Dollar (SGD).
Country of Payment (COP) means the country where payment is made by the
purchaser to the Airline or its agent. This is related to the Point of Sale (POS).
Currency of the Country of Payment is the currency in which international
fares from that country are published. For example, international fares from
Unit 12.6: Currency Rules 953

Kenya are denominated in USD. Whenever Kenya is the point of sale, the US
dollar is its so-called currency of country of payment.
Local Currency Fares (LCF) refer to fares and related charges expressed in
the currency of the country of commencement of travel.
Key Learning Point

Currency related terms or abbreviations LCF, COC and COP are important to
distinguish as the fare and total fare charged for a ticket depend on the proper
use of these terms.
12.6.2 Establishing Local Currency Fares

Most countries express their fares in their national currencies. However, there
are 2 main groups of countries that express their Local Currency Fares in a
currency other than their own. These groups express their Local Currency
Fares in:
• US dollar (USD)
• euro (EUR)
To display local currency codes, check the header of fare displays in the Fare
Lookup Tool.
National Currency
International fares are published in the Local Currency Fare which is normally
expressed in the national currency of the country of commencement of
transportation. For example, international fares from Malaysia are in Malaysian
Ringgit, the national currency of Malaysia.
To identify which currency is used for publishing international fares by checking
the table of IATA Rates of Exchange (IROE) and accompanying footnotes. The
local currency is also displayed in the Fare Lookup Tool fare tables.

Figure 12.6.1—Fare Display from Malaysia in MYR (Malaysian Ringgit)
USD/EUR currency countries

To avoid updating their fares frequently as a result of the volatility of their own
currencies, certain countries have opted to express their fares in USD or EUR.
Figure 12.6.2 displays international fares from Lima (LIM), Peru. Fares are
displayed in US dollars (USD), although Peru’s local currency is the Nuevo Sol
(PEN). Like Peru, several countries in Central and South America regions
publish international fares in USD.
Figure 12.6.2—Fare table header for LIM-PAR fares in USD

Additionally, passenger fares are established in euro for some countries that
have volatile national currencies or share a close proximity to neighboring
countries that use the euro. For example, the national currency in Russia is the
Ruble (RUB) but international fares from Russia are expressed in euro (EUR).
See Figure 12.6.3 which shows international fares MOW to DEL in euros
(EUR).
Figure 12.6.3—Fares from Russia published in euro
Other countries that publish international fares in euro (not in their national
currency) are former Soviet Republics such as Armenia, Belarus, Georgia,
Kyrgyzstan, Tajikistan and Uzbekistan. Other countries include those in
Eastern Europe such as Albania, Bosnia & Herzegovina, Macedonia, Moldova,
Montenegro, Romania, and Serbia. In Africa, Cape Verde Islands publishes
international fares in euro rather than its own currency.
Key Learning Point

Local currency fares are expressed in the currency of the country of
commencement of international travel (COC), USD or EUR. Each local
currency has a designated number of decimal points, these are shown by the
‘Decimal Units’ column of the IROE table.
12.6.3 Neutral Unit of Construction (NUC)

Each local currency fare has an equivalent in Neutral Unit of Construction
(NUC) which is like converting to the US dollar. For countries where fares are in
USD, the NUC is the same as the US dollar amount.
Where an indirect routing requires the combination or comparison of local
currency fares, the fare breakdown is expressed in NUC rather than in local
currency units. It would not be possible to make comparisons in different
currencies.
Even if the routing is point-to-point, it is recommended to show the linear fare
breakdown in NUC to facilitate subsequent possible ticket exchanges or
reissues.
Example for illustration purposes:

In this example, the ticket to be purchased is in business class. The fare from
TPE to SYD is in TWD (New Taiwan Dollar) and the SYD to BKK fare is
published in AUD (Australian Dollar). These two currencies cannot be added
together no one ticket. Therefore the fares must be expressed in NUC to get a
total fare.
For this reason, fare breakdowns display NUC amounts. The total fare in NUC
is converted to the Local Currency Fare (the legally traded currency) by the
IATA Rate of Exchange (IROE).
12.6.4 IATA Rate of Exchange (IROE)

The IATA Rate of Exchange is the NUC conversion factor of the COC. For
training purposes, a static IROE table is provided in the Fare Lookup Tool. The
IROE is listed by country name in alphabetical order.
Figure 12.6.4—Sample IROE display from the Fare Lookup Tool

When a country displays two currencies, i.e. its original national currency and
either the US dollar or euro, read the accompanying notes to find out which
currency takes precedence.
For instance Croatia shows two currencies: the EUR and the HRK. Inter-
national fares should be quoted in euro instead of the Kuna. Hence, the IROE
for the EUR is taken while that of HKR must be ignored when pricing with
international fares from points in Croatia. This instruction is detailed in the last
column “note” when it applies. Click on the note to display the rule for currency
use or rounding.
The IROE is used as a NUC conversion factor to either:
(a) Convert a Local Currency Fare (LCF) into NUC:
Example: Routing: MUC ZRH CAI
Fee for a stopover in ZRH is in euro.
LCF EUR 50.00
(COC: Germany) IROE ÷ 0.809166 (use division)
NUC 61.79 (stopover fee in NUC)
Note that the term Local Currency Fare represents fare-related charges
such as stopover fees in the currency of the country of commencement.
(b) Or convert the NUC into Local Currency Fare:
Example: Routing: AKL JKT
FCP AKL JKT
NUC 4661.44 CIF
(COC: New Zealand) IROE X 1.378336 (use multiplication)
LCF NZD 6425.0305 ~ NZD 6426.00
(rounded to next higher unit after the
decimal)
IATA Rates of Exchange are shown in the IROE table with 6 decimals.
However, IATA Resolutions require that for ticketing purposes, trailing zeroes
must be dropped.
For example in Figure 12.6.4, the IROE for Egypt must be shown at the end of
the fare calculation breakdown as ROE17.65 instead of 17.650000. Another
example is the IROE for Curacao which is truncated to ROE1.79 without
showing the excess zeroes.
12.6.5 Currency Rounding Rules

NUCs Unrounded
As seen in the example above, Neutral Units of Construction are left unrounded
but need to be expressed up to two decimal places, ignoring any further
decimal.
Examples:
• NUC 412.79844 becomes NUC 412.79
• NUC 2132.0130 becomes NUC 2132.01
Rounding Local Currency Fares

Each local currency has a rounding unit prescribed in the IROE table in the
columns “Local Currency Fares” and “Other Charges”.

There are two rounding techniques namely:

• Full adjustment (rounding up)
• Half adjustment (rounding off to the nearest unit)
Full adjustment means you round up to the next higher unit. For training
purposes, this type of rounding is represented with the code ‘H’ followed by the
unit of rounding. For example, the Indian Rupee is rounded to higher 5 or H5.
Half adjustment means you round off to the nearest unit which is represented
with the code ‘N’. For example, the US Dollar is rounded to the nearest 1 or N1.
This means that you take half of the unit of 1 which is 0.5 and if the next
decimal after that unit is .5 or higher, then you round up to the next higher 1,
e.g. USD 120.8 becomes USD 121.00. However, if the decimal after that unit is
less than half, round down, e.g. USD 120.3 becomes USD 120.00.
Always read the notes to determine when to round up or down. One such
footnote is note 5. According to note 5: “Rounding of fares and other charges
shall be to the nearest rounding unit.” If there are no notes, the Rounding Units
column of the IROE table instructs you to always round up to the next higher
unit.
When rounding local currency amounts, remember to:
• Calculate up to one decimal place beyond the number of decimal places,
according to the rounding value displayed in the Local Curr Fare column in
the IROE list.
• Ignore any further decimal place.
Example 1:
Raw LCF Rounding Unit Rounded LCF
EUR 1234.3 Higher 1 (H1) ~ EUR 1235.00
EUR 1234.09 H1 ~ EUR 1234.00
EUR 1234.9 H1 ~ EUR 1235.00
EUR 2209.8 H1 ~ EUR 2210.00
The example above shows how a raw (unrounded) local currency fare in EUR
is fully adjusted to the next higher 1. As long as the next decimal after the unit
of 1 is not a zero, you have to round up to the next higher unit of 1.
After rounding, indicate the number of decimal places as required by the
‘Decimal Units’ column of the IROE table. In this case, the euro requires two
decimal units.
Example 2:
INR 1232.3 Higher 5 ~ INR1235
INR 1230.09 H5 ~ INR 1230
INR 1230.9 H5 ~ INR 1235
INR 1239.09 H5 ~ INR 1240
INR 1299.00 H5 ~ INR 1300
The Indian Rupee is an example of a currency that is fully adjusted but using
multiples of 5. Adjustment to the higher 5 means to round up to the next
multiple of 5.
After rounding, check the decimal unit requirement for the INR. The ‘Decimal
Units’ column in the IROE table shows ‘0’ decimals for the Rupee.

Example 3:
JOD 1234.39 Higher 0.1 ~ JOD 1234.40
JOD 1234.09 H 0.1 ~ JOD 1234.10
JOD 1234.903 H 0.1 ~ JOD 1234.90
JOD 2209.98 H 0.1 ~ JOD 2210.00
This is another example of full adjustment but instead of the higher 1, it
requires rounding up to the higher decimal 0.1. Check the second decimal
place which is one place beyond 0.1, the unit of rounding. If the second decimal
is a zero, there is no need to round any further.
After rounding, show the required two decimal places for the Jordanian dinar.
Example 4:
USD 1234.39 Nearest 1 ~ USD 1234.00
USD 1234.09 N 1 (note 5) ~ USD 1234.00
USD 1234.80 N 1 (note 5) ~ USD 1235.00
USD 2299.98 N 1 (note 5) ~ USD 2300.00
International fares from Ethiopia are in US Dollars which is half adjusted to the
nearest 1. You take half of one and compare to the decimal of the raw amount.
For decimal results ranging from 0.5 and above, round up the figure to the
higher 1. For decimal results less than 0.5, round down to the lower 1.
Key Learning Point

NUCs remain unrounded and are shown with two decimal places. Always
round up (Full adjustment) the local currency fare unless there is an
accompanying note that tells you to round off to the nearest unit (Half
adjustment).
Check the next decimal beyond the unit of rounding to determine if further
adjustment is required.
12.6.6 IATA Currency to Currency Exchange Rates

The IATA Consolidated Exchange Rates (ICER) are daily bank exchange rates
listed by country that are used to convert Local Currency Fares and/or other
charges to the currency of payment using a multiplication process.
Some are actual bankers selling rates but most are an average of BSR and
bankers buying rates (BBR). Others are rates fixed by governments. Nonethe-
less, these exchange rates are referred to as Bankers Selling Rates (BSR)
which are not rounded but copied as is. Ultimately, it is the resulting equivalent
amount that is rounded according to the prescribed practice for that currency.
While there are daily updates, for training purposes, a static copy of the ICER
list is provided in the Fare Lookup Tool. An extract is shown below.
Base Quote Exchange Rate
AED AFN 15.6141
AED ALL 30.5711
AED ARS 2.3039
AED AUD 0.3099
AED AWG 0.4874

Base Quote Exchange Rate

AED AZN 0.2137
AED CDF 258.125
AED CHF 0.2607
AED CLP 162.204
AED CNY 1.671
AED EGP 1.9528
DXB SYD (SQ) AED 18570 X 0.3099 = AUD 5754.8 = AUD 5755.00.
This is a real fare from FLT.
Example: RT Business class fare DXB SYD (J11AER) sold in Australia in

AUD on SQ
LCF AED 18570
BSR X 0.3099
EQUIV AUD 5754.8 ~ (H1, D2) AUD 5755.00
Using the ICER list is not difficult to master. Simply look up the code of the local
currency under the Base column and the equivalent (EQUIV) currency in the
Quote column. The bank exchange rate is shown alongside both currencies in
the last column.
After multiplying the local currency fare with the given BSR, the resulting
equivalent amount is then rounded according to requirements for the Australian
dollar. Don’t forget to check the decimal unit requirement for the currency in the
IROE table.
The next example demonstrates the process of converting a fare priced in NUC
to the COC currency, and then converted to the currency of the country of
payment which is different from the local (COC) currency. The journey begins
in DXB (United Arab Emirates), but is paid for in AMS (Netherlands). Let’s
examine the ticketed price and the process.
1 DXB AF 157 K 07FEB 0810 OK KLXSFWAE 30K

PAR
FARE F AED 3630
EQUIV EUR 781.00
TX001 X EUR 158.32-YQAC TX002 X EUR 2.37-YRVB TX003 X EUR 17.77-AEAD
TX004 X EUR 8.29-F6TO TX005 X EUR 1.19-TPSE TX006 X EUR 1.19-ZRAP
DXB AF PAR988.12NUC988.12END ROE3.673637
Step 1: From NUC to LCF (COC) currency

One-way ticket DXB-PAR
Total Fare: NUC 988.12
As United Arab Emirates is COC, the NUC amount must be converted to AED
because the COC is the United Arab Emirates.
IROE for AED is 3.673637
AED 988.12 x ROE 3.673637 ≈ AED3629.9941
When rounded (H10, D0), the local currency fare is AED3630
Step 2: from LCF currency (AED) to COP currency (EUR)
AED to EUR BSR is 0.215
AED3630 x 0.215 ≈ EUR 780.45, the raw amount which rounded accordingly
(H1, D2) results in EUR 781.00

Key Learning Point

The IATA Consolidated Exchange Rate (ICER) is a daily list of bankers selling
rates used to convert the LCF in one currency to an equivalent amount in
another currency for payment. This is because the country of commencement
of travel (COC) is different from the country of payment (COP).
Study Check 12.6
1. Which TC3 country in South East Asia publishes international fares in

euro?
(a) South Korea
(b) Australia
(c) Tajikistan
2. Which TC2 country in Africa publishes international fares in euro?

(a) Libya
(b) Cape Verde
(c) Seychelles
3. Which is an example of a US dollar country in TC3?

(a) Philippines
(b) China
(c) Singapore
4. What is the currency code for international fares from Senegal?

(a) XPF
(b) XAF
(c) XOF
5. What is the currency code for the Saudi Arabian Riyal?

(a) ZAR
(b) SYP
(c) SAR
6. Which is a term for rounding to the nearest unit?

(a) Full adjustment
(b) Half adjustment
(c) No adjustment

7. Which is a term for rounding to the next higher unit?

(a) Full adjustment
(b) Half adjustment
(c) No adjustment
8. Which is a daily bank exchange rate used to convert one currency to

another currency?
(a) IATA Rate of Exchange (IROE)
(b) BSR from the IATA Consolidated Exchange Rate (ICER)
(c) NUC conversion factor
9. Which is the rounding rule for fares in euro?

(a) Nearest 0.01
(b) Higher 1
(c) Nearest 1
10. Which country publishes international fares in euro?

(a) Canada
(b) Romania
(c) Mexico
(d) Turkey
Refer to this journey routing to answer questions 11 and 12.
NYC AF PAR AF CAS
11. Which is the COC?

(a) France
(b) USA
(c) Morocco
12. If the ticket is purchased and paid for in MEX, what is the currency of
payment?
(a) EUR
(b) MAD
(c) USD
(d) MXN

13. Which country publishes international fares euro instead of their national
currency?
(a) Russia
(b) Great Britain
(c) Canada
(d) Sweden
14. Why are journeys priced in NUC?

(a) To make all fares equivalent to the USD
(b) To reduce the journey’s fare
(c) To arrive at one total fare in one currency
15. Which represent the conversion rate for NUC?

(a) IROE
(b) COC
(c) COP
(d) ICER
16. How many decimal place values do NUC amounts display?

(a) 1
(b) 2
(c) 3
(d) none
17. The USD is rounded to N1. How would USD 426.81 be expressed?
(a) 426.80
(b) 427.00
(c) 426.00
(d) 426.82
18. The INR is rounded to H5. How would INR 1562.4 be expressed?
(a) 1565
(b) 1562
(c) 1560
(d) 1570
19. To convert from the Currency of the COC to the Currency of the COP, what
should you use?
(a) IROE
(b) NUC
(c) BSR

12.6.7 Unit Summary

• Country of Commencement of travel (COC) is where international travel
begins.
• Local currency fares and related charges are in the currency of the COC
with an equivalent in Neutral Unit of Construction (NUC).
• Instead of using their own national currency, there are certain countries
that express their Local Currency Fares in either the USD or euro.
• Fares in NUC are converted to the Local Currency Fare (LCF) at the IATA
Rate of Exchange (IROE).
• While NUCs remain unrounded and shown with two decimal places, any
resulting Local Currency Fares are rounded according to the instructions in
the IROE table.
• There are two types of rounding:
○ Full adjustment (rounding up to the higher unit).
○ Half adjustment (when accompanied by a note on rounding off to the
nearest unit) where less than half of the unit shall be rounded down;
half a unit or more shall be rounded to next higher unit.
• The correct number of decimal places is required when showing entries in
the Fare and Equivalent Fare data elements of tickets.
• Point-to-point fares may directly be quoted in Local Currency Fares or in
NUCs converted to the LCF at the IROE.
Try Activities 9 and 10.
Apply Your Learning
“My calculator automatically rounds off the figures. I can’t seem to get the
rounding done right!”
In some calculators, you need to make sure that decimals ‘float’ and are not
truncated. There might also be a little switch that allows you to turn the
automatic rounding mode off. You can then proceed to round the raw figures
yourself following the specifications in the IROE table for each currency.

12.7 Carrier Mileage and Routing Fares
• Distinguish between routing and mileage type fares in GDS fare displays
(Unit 12.7.1).
• Determine whether the journey complies with fare routing conditions (Unit
12.7.2).
Unit Learning • Interpret symbols displayed by routing fares to identify required versus
Objectives option via points (Unit 12.7.2).
By completing this Unit, • Identify fare breakdowns and fare surcharge levels when pricing with
you will be able to: mileage fares (Unit 12.7.3).

You learned that there are different types of carrier fares and that each fare has
a fare basis code. If the journey is a point-to-point routing limited to two ticketed
points, such as a one way journey, we simply apply the marketing carrier's
direct fare from origin to destination. But what happens when it is not possible
to travel on a direct flight between the from/to cities? A connection via one or
more intermediate point may be necessary. Can a published direct fare be
used to create a through fare for an indirect journey? Perhaps, but you would
need to first check if the fare is a routing or a mileage fare. And then read the
fare rules.
12.7.1 Routing versus Mileage Fares

When displaying or requesting fares, how do you know if the fare is a routing
fare or a mileage fare? Let's examine some fare displays to distinguish
between both types of fares. A fare display lists the direct fares between the
from/to cities.
FQDAMSHKG
LN Line number FARE BASIS OW EUR RT AL Airline R
01 TL6M2BEF 69 HU R
02 TL6M1BEF 79 HU R
03 Z6P3NLS 90 MU R
04 VN3XPCSB 105 TK R
05 OLHP0SMN 109 VS R
06 OLNCEUR 109 BA R
07 AL6M2BE 109 HU M
Figure 12.7.1—A GDS fare display for Amsterdam to Hong Kong (GDS fares are
for illustration purposes)
Figure 12.7.1 displays fares from Amsterdam to Hong Kong. The last column
displays a single letter “R” or “M”. R denotes a routing fare. M denotes a
mileage fare.
The fare on line number 01 is a routing fare on airline HU (Hainan
Airlines). The fare basis code is TL6M2BEF for a return fare of euro 69. It is a
routing fare.
Now examine the fare on line 07. The last column displays the letter M.
Therefore it is a mileage fare belonging to airline HU. Its fare basis code is
AL6M2BE, and the price of this return fare is Euro 109.
Let's explore another fare display with fares from Nairobi to Washington.

FQDNBOWAS
LN FARE BASIS OW USD RT AL R
01 EKPRKE 175 ET R
02 KHRCKE9W 223 LX R
03 KHRCKE9W 223 UA R
04 KHRCKE9W 223 AC R
05 KHRCKE9W 223 OS R
06 KHRCKE9W 223 SN R
07 KHRCKE9W 223 LH R
08 VHSR9KE 225 KL R
09 VHSR9KE 225 AF M
10 VLPRKE 243 AF M
11 VLPRKE 243 KL R
12 VLPRKE1 243 DL M
13 TKPRKE 275 ET R
Figure 12.7.2—A GDS fare display for Nairobi to Washington (GDS fares are for
illustration purposes)
The fares in line numbers 9, 10 and 12 are mileage fares. The remaining
fares displayed are routing fares. The lowest return mileage fare is USD
225 with AF (Air France). The lowest return routing fare is USD 175.00 with ET
(Ethipian Airlines).
Now, refer to a different GDS fare display for fares from Seoul to Seattle.
FDSEL-SEA
CX FARE FARE MR
KRW BASIS
SELSEA
1 MF 220000R SL3MLYU1 R
2 MF 250000R SL6MLYU1 R
3 MF 320000R RL6MUS1 R
4 MF 400000R TL6MUS1 R
5 MF 500000R VL6MUS1 R
6 MF 260000 RLOWUS1 R
7 MF 580000R QL6MUS1 R
8 MF 300000 TLOWUS1 R
9 NH 690000R SLRCDB R
10 MF 700000R NL6MUS1 R
11 MU 726800R SPRKRS R
12 MF 380000 VLOWUS1 R
13 NH 820000R WLRCDB R
14 AA 838800R OKU78QN1 M
15 UA 850000R LFX7ZEC7 R
16 DL 850000R UNX7ZBYK M
Figure 12.7.3—A GDS fare display for Seoul to Seattle (GDS fares are for
illustration purposes)
The fares on lines 14 and 16 are mileage fares. All other fares are routing
fares. The lowest return mileage fare is KRW 838800 with AA (American
Airlines). The lowest of the return routing fares is KRW 220000 with MF
(Xiamen Airlines).
Key Learning Point

In a typical GDS fare display, routing fares display the letter R and mileage
fares display the letter M.
Unit 12.7: Carrier Mileage and Routing Fares 967

12.7.2 Routing Fares

When the fare component's routing is indirect (via one or more intermediate
points) a routing fare may apply. Every routing fare lists fixed via points. Travel
must be routed through the fare's permitted via points.
Routing fares cannot apply to journeys that do not comply with the fare routing
conditions. Every ticketed point must be a permitted point. The journey cannot
add via points not listed in the fare routing conditions. If the itinerary complies
with the fare routing conditions, you may quote the direct fare, as if the journey
is point-to-point travel.
Fixed Routing Conditions
Consider the journey LAX LO X/WAW LO MOW LO X/WAW LO LAX. In this
journey, outbound travel is from LAX (Los Angeles) with airline LO (LOT Polish
Airlines) to WAW (Warsaw) and then with LO to MOW (Moscow which is the
destination). WAW is a connecting via point outbound and inbound as it is
marked with X/.
Figure 12.7.4 is an example of the journey's fare breakdown based on a routing
fare.
LAX LO X/WAW LO MOW279.50LO X/WAW LO LAX279.50NUC559.00END ROE1.000000

Figure 12.7.4—Linear Fare Calculation for return journey Los Angeles to Moscow
This this linear fare calculation displays all ticketed points and NUC amounts.
The price for the outbound fare component is NUC 279.50. The price for the
inbound fare component is also NUC 279.50. The total price is NUC 559.00.
Both fare components are booked on LO flights and via a connection in WAW.
Let's locate the fare display and its routing conditions (via points permitted).
FQDLAXMOW
ROE 1.000000 NEAREST 1.00 USD
14 TKATAN1B 559.00 LO R
Figure 12.7.5—Fare display for Los Angeles to Moscow
The fare on line number 14 is published by LOT Polish Airlines (LO). The last
column displays the letter R that indicates it is a routing fare. By clicking on the
“R”, we display the routing conditions or permitted via points (see Figure
12.7.6).

14 TKATAN1B 559 LO R
1 * LAX-LO-WAW-LO-MOW
Figure 12.7.6—Routing conditions for LO TKATAN1B fare from Los Angeles to
Moscow
The fare allows travel via one routing option: LAX—LO—WAW—LO—MOW.

This is an exact match with the fare calculation routing.
The conditional routing strings points (city codes) by a dash (-). Cities strung
together by a dash “-” symbol must be part of the routing. In other words, the
fare is applicable to a journey booked LAX-LO-WAW-LO-MOW (where WAW is
a permitted intermediate via point). The routing condition also specifies the
airline to book per segment.

Optional Routing Conditions

Let's examine a different example.
LON BA X/SIN BA SYD Q LONSYD10.34 129.98BA X/SIN BA LON Q SYDLON10.34 129.98

NUC280.64END ROE0.773147
Figure 12.7.7—Linear Fare Calculation for a return journey London to Sydney
In this fare calculation the outbound journey is from LON (London) with airline
BA (British Airways) to SIN (Singapore) and then with BA to SYD (Sydney).
The inbound journey is routed from SYD to SIN to LON. The fare construction
points (from/to cities) are LON and SYD. The via point is SIN. All flights are
booked on BA, hence a BA fare applies.
The price of the outbound fare component is NUC129.98. The price of the
inbound fare component is also NUC129.98. The breakdown includes a Q
surcharge of NUC10.34 (Q LONSYD10.34) outbound and inbound. The total
price is NUC280.64. SIN is an intermediate (via) connection point outbound
and inbound, marked with X/.
FQDLONSYD
ROE 0.773147 NEAREST 1.00 NUC
LN FARE BASIS OW NUC RT AL R
13 OKNT02B7 259.96 BA R
Figure 12.7.8—Fare display for London to Sydney
The fare on line number 13 is the applicable BA fare. The last column displays
R, which means that this is a routing fare. Let's check if this fare breakdown
complies with the fare routing conditions by clicking on the “R” in the fare
display.
LN FARE BASIS OW GBP RT AL R

13 OKNT02B7 201 BA R
1 * LON-KUL-BA/MH-SYD
2 * LON-SIN-BA/QF-SYD
3 * LON-HKG-BA/CX/QF-SYD
Figure 12.7.9—Routing conditions for BA OKNT02B7 fare from London to Sydney
The OKNT02B7 fare allows one of three routing options:

1. * LON-KUL-BA/MH-SYD
2. * LON-SIN-BA/QF-SYD
3. * LON-HKG-BA/CX/QF-SYD
A dash (-) denotes required points and airlines. An oblique (/) denotes optional
choices. As this is a BA fare, we assume that all travel must be booked on BA
flights. However, the fare routing conditions also permits some interlining
options:
• If routed via KUL, a BA or MH flight is permitted from KUL to SYD.
• If routed via SIN, a BA or QF flight is allowed from SIN to SYD.
• If routed via HKG, a BA, CX or QF flight is allowed from HKG to SYD.
The fare breakdown in Figure 12.7.7 matches with routing option number 2.

Let's examine another example.
JNB LH X/FRA LH AMS117.89LH X/FRA LH JNB117.89NUC235.78END ROE13.359280

Figure 12.7.10—Fare Calculation for return journey Johannesburg to Amsterdam
In this fare calculation the outbound journey is booked from JNB (Johannes-
burg) with airline LH (Lufthansa) to FRA (Frankfurt) and then with LH to AMS
(Amsterdam).
The inbound journey is booked from AMS to JNB via FRA. All booked flights
are LH. The price of the outbound component is NUC117.89. The price of the
inbound component is also NUC117.89. The total price is NUC235.78 FRA is a
connecting point (no stopover) outbound and inbound, displayed with X/.
Let's validate whether the routing is according to the fare conditions.
FQDJNBAMS
ROE 13.35928 UP TO 10.00 ZAR
LN FARE BASIS OW ZAR RT AL R
35 KRCZA 3150 LH R
Figure 12.7.11—Fare display for Johannesburg to Amsterdam
The fare on line 35 is a LH (Lufthansa) routing fare, marked by an R. By

clicking on the “R”, we display routing conditions with 2 options.

35 KRCZA 3150 LH R
1 * JNB-VIE/GVA/ZRH/CGN/DUS/MUC/FRA-VIE/GVA/ZRH/CGN/DUS/
MUC/FRA-LH-AMS
2 * JNB-SW/BP/BA/SA/LH-CPT-VIE/GVA/ZRH/CGN/DUS/MUC/FRA-
VIE/GVA/ZRH/CGN/DUS/MUC/FRA-LH-AMS
Figure 12.7.12—Routing conditions for LH KRCZA fare from Johannesburg to
Amsterdam
We remember to read the dash (-) as and or the oblique (/) as or. The first
option permits two via intermediate points.
Travel between JNB and AMS permitted via
….VIE or GVA or ZRH or CGN or DUS or MUC or FRA on LH flight
… And
The second option reads:
Travel between JNB and AMS permitted via
….CPT on SW, BP, BA, SA or LH flight
… And
….And
….VIE or GVA or ZRH and CGN or DUS or MUC or FRA on LH flight
The booked routing defined in the fare calculation matches with routing
option 1.

Key Learning Point

Ticketed points must match with the fare's routing conditions. Routing
conditions express required via points and airlines with a dash (-) and optional
via points and airlines with an oblique (/).
12.7.3 Mileage Fares

In the previous section you learned about fares based on routing conditions
specified by the airline. Fares can also be based on distance flown or the
number of flown miles. These are called mileage fares. Journeys priced with
mileage fares may apply a percentage surcharge that increases the applicable
fare.
Mileage fare pricing: no surcharge
Let's examine a linear fare calculation priced with a mileage fare.
TYO AC X/YTO AC NYC M422.63AC X/YTO AC TYO M422.63NUC845.26END ROE111.207904

Figure 12.7.13—Fare Calculation for return journey Tokyo to New York
In this example, the outbound component is from TYO (Tokyo) to YTO

(Toronto) to NYC (New York) booked on AC (Air Canada) flights. The
inbound fare component is the same routing in reverse. The outbound and
inbound applicable fares are NUC422.63. The total fare is NUC845.26. YTO is
an intermediate connecting point (no stopover) outbound and inbound,
displaying X/.
How do we know that this fare calculation applies a mileage fare?
Because the fare calculation displays the letter “M” in front of the NUC amount
for each fare component. This means that a mileage fare is used to price the
itinerary. Let's explore further.
LN FARE BASIS OW JPY RT AL R

26 TKXR50BF 89000 AC M
Figure 12.7.14—Fare display for Tokyo to New York
The TKXR50BF fare on line 26 is an AC (Air Canada) fare. The letter M in

the last column identifies it as a mileage fare. If we click on the letter “M”, the
note MILEAGE APPLIES FROM ORIGIN TO DESTINATION appears.
ROE 111.207904 UP TO 100.00 JPY

TYONYC/NSP;PA/TPM 6723/MPM 8067
LN FARE BASIS OW JPY RT AL R
26 TKXR50BF 89000 AC M
MILEAGE APPLIES FROM ORIGIN TO DESTINATION
Figure 12.7.15—Fare display for Tokyo to New York with comment
There are no routing options displayed. What does this mean? This AC fare
allows travel from Tokyo to New York via any AC route as long as:
1. All booked flights are AC flights
2. The total air miles flown per fare component is equal to or less than 8067
miles.

The TYO-NYC fare display in Figure 12.7.15 includes an “MPM” (Maximum

Permitted Mileage). It is in the second line of the fare display header.
TYONYC/NSP;PA/TPM 6723/MPM 8067
How do we read this line of information?
TYONYC The fare is for travel from Tokyo to New York City, the fare
construction points
NSP Applicable to restricted and unrestricted fares — in other words for
all mileage fares
PA When the Global Indicator is PA - journeys with a Pacific Ocean
crossing
TPM 6723 If travel is on a direct non-stop flight, the actual air miles flown is
6723
MPM 8067 The maximum distance allowed to fly is 8067 air miles
The Maximum Permitted Mileage (MPM) is the maximum distance in air miles
that can be travelled between the fare construction points of a fare component.
Notice that the MPM is 20% higher than the actual air miles flown on a direct,
non-stop flight between the fare construction points (MPM is 8067 while the
shortest TPM is 6723). The MPM allows the journey to be flown via
intermediate points. With mileage fares and indirect travel, the sum of Ticketed
Point Mileages (the actual air miles flown) per segment must be equal to or less
than the MPM for the fare. Let's examine the journey in Figure 12.7.13 again to
understand MPM and TPM.
The TPMs for each fare component is assessed for each sector and added
together (The Fare Lookup Tool is the source for TPM values).
Outbound: TYO - YTO — NYC

Inbound: NYC - YTO - TYO
The total TPM per fare component is 6770 which is equal to or less than the
fare's MPM of 8067. Hence the letter “M” appears just before the applicable
fare per component.
Mileage fare pricing: with surcharge

When the total TPM per fare component exceeds the MPM, a surcharge of 5%,
10%, 15%, 20% or 25% applies. The TPM cannot exceed the MPM by more
than 25% for any fare component. If it does, then a through fare construction is
NOT possible for the fare component.
The mileage surcharge codes that can appear in a fare calculation entry are:
M WITHIN MILEAGE (no surcharge)
5M 5% SURCHARGE
10M 10% SURCHARGE
15M 15% SURCHARGE
20M 20% SURCHARGE
25M 25% SURCHARGE
Let's examine pricing with a mileage surcharge.
AMS BA LON BA MIA AA SFO5M328.24AA MIA BA X/LON BA AMS5M1064.80NUC1393.04END

ROE0.863772
Figure 12.7.16—Fare Calculation for return journey from Amsterdam to San
Francisco
The outbound fare component is AMS (BA) LON (BA) MIA (AA) SFO priced at
NUC328.24.
The inbound fare component is SFO (AA) MIA (BA) X/LON (BA) AMS priced at
NUC1064.80.
In this example, the applicable fare type is different per fare component, likely
because the outbound class booked is different from the inbound, so two
different fare levels apply. The total fare is NUC1393.04.
We conclude that the fares used to price each fare component are mileage
fares because 5M appears before the NUC fare. The NUC fares of 328.24 and

1064.80 include the 5% surcharge on the direct fare per component. In other
words, the applicable fares for each component are 5% higher than the direct
fare.
Let us find out more about this mileage fare.
BA AMSSFO/NSP;AT/TPM 5460/MPM 6552

Figure 12.7.17—BA routing information for Amsterdam to San Francisco mileage

fare
What does this mean?

This fare allows indirect travel from Amsterdam to San Francisco, via
intermediate points, as long as the total actual air miles flown is not more than
6552 miles. The 5M in the fare calculation means that the total actual air miles
flown (TPM), as booked, is up to 5% higher than the MPM, resulting in a
surcharge of 5% on the fare.
Let us study one more example.
DUS KL AMS KL ATL DL X/SLC DL YVR E/XXX5M356.78DL X/SLC DL ATL KL X/AMS KL

DUS E/XXX5M832.68NUC1183.46END ROE0.863772
Figure 12.7.18—Fare Calculation for return journey from Dusseldorf to Vancouver
The outbound fare component is DUS (KL) AMS (KL) ATL (DL) SLC (DL) YVR
priced at NUC356.78.
The inbound fare component is YVR (DL) SLC (DL) ATL (KL) X/AMS (KL) DUS
priced at NUC832.68.
The total fare is NUC1183.46.
You might wonder what the code E/XXX means in this fare calculation. It
means that the airline grants an Extra Mileage Allowance (EMA) to reduce the
total TPM value and thereby reduce the mileage surcharge. Without the EMA,
the mileage surcharge could be higher than 5%.
Let us find out more about this mileage fare.
Kl DUSYVR/NSP;AT/TPM 4896/MPM 5881

Figure 12.7.19—KL fare routing display for Dusseldorf to Vancouver
The fare allows indirect travel from Dusseldorf to Vancouver via intermediate
points. The total actual air miles flown (TPM) cannot exceed 5881. It is obvious
that the total TPMs is up to 5% higher than the MPM, in spite of the EMA,
adding a 5% surcharge to the fare.
Key Learning Point

When mileage fares apply to journey pricing, distance flown influences the fare
and the fare breakdown displays M, 5M, 10M, 15M, 20M or 25M. With routing
based fares, the fare breakdown displays no mileage (M) indication.

Study Check 12.7

Refer to the following fare display and answer questions 1 to 4.
FQDAMSNYC
LN FARE BASIS OW EUR RT AL R
01 LLXEUGO 10 SK R
02 LLWEUGO 60 SK R
03 OKX2T8B4 61 BA M
04 VKXL99NL 61 AF M
05 KKX4ILGT 61 LX R
06 VKXL99NL 61 DL M
07 OKXL99NL 61 AZ R
08 OKX2T8B4 61 IB M
09 KKX4ILGT 61 LH R
10 KKX4ILGT 61 AC R
11 KKX4ILGT 61 OS R
12 VKXL99NL 61 KL M
13 OKX2T8B4 61 AY M
1. How many routing fares are there in this fare display?

(a) 2
(b) 3
(c) 6
(d) 7
2. How many mileage fares are there in this fare display?

(a) 2
(b) 3
(c) 6
(d) 7
3. Which airline offers the lowest routing fare?

(a) AF
(b) AZ
(c) BA
(d) SK
4. One airline in the fare display offers both routing and mileage fares. TRUE
or FALSE?
(a) True
(b) False

Study the following fare display and answer questions 5 to 10.

FQDSCLPAR
01 OPR8L 129 AZ R
02 ONN8JZN1 178 AA M
03 LPR8L 209 AZ R
04 ONN4IZN1 250 AA M
05 VNNF7SMQ 294 DL M
07 WPR8L 329 AZ R
09 XLSS8L 389 AZ R
10 GLPLCL 398 KL R
11 QNN0IZN3 402 AA M
12 KNCCL 429 LH R
13 KNCCL 429 LX R
14 SLSS8L 459 AZ R
5. Which airlines offer mileage fares?

(a) AA and DL
(b) AZ and KL
(c) LH and LX
(d) They all do
6. Which airline offers the lowest mileage fare?

(a) AA
(b) AZ
(c) DL
(d) LH
7. Which airline offers the lowest routing fare?

(a) AZ
(b) KL
(c) LH
(d) LX
8. Which airline in the fare display offers both routing and mileage fares?
(a) AA
(b) AZ
(c) DL
(d) None

9. Which is the highest mileage fare displayed?

(a) 389
(b) 402
(c) 429
(d) 459
10. Which is the highest routing fare displayed?

(a) AF
(b) AZ
(c) BA
(d) SK
Study the following routing display and answer questions 11 to 13.

LN FARE BASIS OW GBP RT AL R
13 OKNT02B7 201 BA R
1 * LON-KUL-BA/MH-SYD
2 * LON-SIN-BA/QF-SYD
3 * LON-HKG-BA/CX/QF-SYD
11. Which carrier will BA interline with between KUL to SYD?

(a) CX
(b) MH
(c) QF
12. The LON to HKG flight segment can be booked on CX flights. TRUE or
FALSE?
(a) True
(b) False
13. The HKG to SYD flight segment can be booked on CX flights. TRUE or
FALSE?
(a) True
(b) False
Study the following routing display and answer questions 14 to 16.

35 KRCZA 3150 LH R
1 * JNB-VIE/GVA/ZRH/CGN/DUS/MUC/FRA-VIE/GVA/ZRH/CGN/DUS/MUC/
FRA-LH-AMS
2 * JNB-SW/BP/BA/SA/LH-CPT-VIE/GVA/ZRH/CGN/DUS/MUC/
FRA-VIE/GVA/ZRH/CGN/DUS/MUC/FRA-LH-AMS

14. KL flights can be booked between FRA and AMS. TRUE or FALSE?
(a) True
(b) False
15. BA flights can be booked between JNB and CPT? TRUE or FALSE?
(a) True
(b) False
16. The JNB to AMS sector be routed via intermediate point PAR. TRUE or
FALSE?
(a) True
(b) False
Interpret the following fare calculation and answer questions 17 to19.

LON KL X/AMS KL PRG162.31AF X/PAR AF LON64.50NUC226.81END
ROE0.705426
17. Is the fare displayed in this linear fare calculation a routing fare or a
mileage fare?
(a) Routing
(b) Mileage
18. How many transfer points are connections?

(a) 0
(b) 1
(c) 2
(d) 3
19. Which fare component is priced higher?

(a) Outbound
(b) Inbound
Interpret the following fare calculation and answer questions 20 to 23.

MAN BA X/LON BA WAS M424.37 BA X/LON BA MAN M424.38 NUC848.75END
ROE0.765832
20. There is a mileage surcharge to the outbound fare. TRUE or FALSE?

(a) True
(b) False

21. There is a mileage surcharge to the inbound fare. TRUE or FALSE?

(a) True
(b) False
22. How many transfer points are connections?

(a) 0
(b) 1
(c) 2
(d) 3
23. How many transfer points are stopovers?

(a) 0
(b) 1
(c) 2
(d) 3
Interpret the following fare calculation and answer questions 24 and 25.
DUB BA X/LON BA HEL92.50BA X/LON BA DUB284.24NUC376.74END
ROE0.878934
24. BA is the direct fare owner. TRUE or FALSE?

(a) True
(b) False
25. Which could be causing the different outbound and inbound fares?
(a) A mileage surcharges apply
(b) Different routings booked
(c) Different booking classes
(d) Stopover charges apply

12.7.4 Unit Summary

In this Unit, you studied key features of routing and mileage type fares which is
helpful to understand pricing for indirect travel.
• Systems identify routing fares with the letter R in fare displays and mileage
fares with the letter M (Unit 12.7.1).
• In the case of routing fares, it is important to correctly interpret routing
condition symbols dash (-) and oblique (/) if the customer wishes a different
route for the same fare. Via points may be fixed (-) or optional (/)
(Unit 12.7.2).
• There is a difference between ticketed point mileage (TPM) for actual
distance flown and maximum permitted mileage (MPM) for maximum flown
distance allowed (Unit 12.7.3).
• The codes that can appear in the fare breakdown of a mileage based fare
are: M, 5M, 10M, 15M, 20M and 25M (Unit 12.7.3).
Try activity 11.
Apply Your Learning
“What type of fares are more popular? Routing or Mileage fares?”
Compare published fares from your market per global indicator. Are mileage or
routing fares available per global indicator. You may find that mileage fares do
not exist between some markets or for some Global Indicators. It is a good idea
to be familiar with such patterns when you sell travel on a daily basis.

12.8 Q Surcharge
• Define a Q Surcharge (Unit 12.8.1).

• Identify the Q Surcharge amount in a fare breakdown (Unit 12.8.1).
• Locate and analyze provisions for collecting Q surcharges in the fare rule
(Unit 12.8.2).
Unit Learning • Interpret child and infant Q level surcharge discounts (Unit 12.8.2).
Objectives
A surcharge is an extra amount added to the base fare. Some surcharges are
introduced for a limited period and can vary by airline, fare type, origin-
destination cities or even by aircraft equipment. Other surcharges such as
YQ/YR are not Q surcharges, and will not be covered in this Unit.
The customer expects a travel professional to understand and explain what is
being charged on the ticket that could impact the final cost to the customer. For
this reason, this Unit explains the type of surcharges that apply to single and
round trip itinerary segments and how to identify and interpret surcharge levels
in the fare breakdown.
12.8.1 Define Q Surcharges

Q surcharges are not TFCs (taxes, fees and charges). They are not fares
either. They are additional airline collections to the fare.
Airlines may charge and collect Q surcharges over and above the ticket fare
and taxes to offset temporary but important operational costs. Sometimes, it is
the airline that imposes a Q Surcharge for an increase in the cost of fuel. Other
times government or airport authorities oblige airlines to collect Q Surcharges
on their behalf.
The most common airline surcharges are:
• fuel, imposed by airlines
• sales restrictions, imposed by airlines
• Insurance costs, imposed by airlines
• security, imposed by governments or airports
All Q Surcharges appear in the ticket's fare breakdown displayed in the fare
calculation element. “Q” surcharges appear in the ticket fare calculation field.
As a result, although Q Surcharges are filed in local currencies, they must be
converted to NUC in order to appear in the fare breakdown and be added to the
fare assessed in NUC.
Unit 12.8: Q Surcharge 981


LON
JNB BA 55 R 24AUG 1905 RNXC60S5 24AUG24AUG 2P
LON BA 56 I 04SEP 1920 ILXT04S7 04SEP04SEP 2P
GBP 4032.00 24AUG LON BA JNB Q13.32 3285.06BA LON Q

13.32 1805.29NUC5116.99END ROE0.787961
GBP 329.00-YQ XT GBP 46.62-UB GBP 1.40-EV GBP 13.50-ZA
GBP 172.00-GB GBP 1.20-UM GBP 10.70-WC
GBP 73.42-XT
GBP 4606.42
FARE FAMILIES: (ENTER FQFn FOR DETAILS, FXY FOR UPSELL)
FARE FAMILY:FC1:1:BUSINESS
FARE FAMILY:FC2:2:BIZPROMO
FXU/TS TO UPSELL BIZFLEX-BIZPROMO FOR 1003.00GBP
Figure 12.8.1—Sample Q Surcharge displayed in the fare breakdown as Q13.32
These always display the letter “Q” just in front of the surcharge amount in the
fare breakdown. A pricing unit may include cases when multiple “Q”
Surcharges apply to the journey.
Key Learning Point

Airlines or governments and airports may impose Q surcharges, over and
above the airfare and taxes, on specific flight segments, or during a specified
period, to balance fuel or security costs.
12.8.2 Sourcing and Interpreting Q Surcharge

Provisions
Surcharges do not always apply. But when they do, airlines file all Q
surcharges alongside airfares. Therefore, GDS systems are automated to
include Q Surcharges when they price an itinerary.
After establishing a fare for an itinerary, applicable surcharges, if any, must
also be established. The following provisions (conditions) determine applicable
Q Surcharges.
Q Surcharge provisions may be based on …
Ticketed points … specific departure or arrival cities or airports

Geographic location … travel from or within areas, regions, countries
Flight booked … specific flight number, departure date/time or
aircraft type, including codeshare flights
Class of service … specific booking class codes
Purchase date … the date the ticket is issued
Passenger type … whether adult, child or infant
Airlines also publish Q Surcharge information in the fare rule category 12 (or
SU), entitled “Surcharges”. When a “Q” appears in the fare breakdown, full
information on the Q Surcharge is available in the fare rule, including levels
(amounts) and types.

Example 1: Fuel Surcharge

Let's examine a return journey from LIM to BOG where a Q Surcharge for fuel
applies.
AV 140 P 22JUL LIMBOG HK1 0130 0445 PEA00RIG
AV 143 P 31JUL BOGLIM HK1 1415 1714 PEA00RIG
FARE CALCULATION
LIM AV BOG Q46.00 160.00AV LIM Q46.00 160.00NUC412.00END
The fare basis code for both flight segments is PES00RIG. The corre-
sponding fare rule for PEA00RIG fare basis is 303/VPA2.
Fare Display LIM to BOG
AV PEA00RIG 303/VPA2 P RT 320.00 320.00 0093 WH
Category 12 of the fare rule 303/VPA2 displays the following information:
CATEGORY 12/SU SURCHARGES
BETWEEN COLOMBIA AND PERU IF INFANT UNDER 02 WITHOUT A SEAT. OR -
INCLUSIVE TOUR INFANT WITHOUT A SEAT UNDER 02. THERE IS NO CHARGE FOR
TRAVEL PER FARE COMPONENT. A FUEL SURCHARGE OF USD 46.00 WILL BE ADDED TO
THE APPLICABLE FARE
NOTE –
THE FUEL SURCHARGE APPLIES IN ADDITION TO ALL OTHER CHARGES AND IS NOT
SUBJECT TO ANY DISCOUNT. WHEN A FUEL SURCHARGE IS COLLECTED IT MUST BE
DENOTED AS A -Q- CHARGE ON EACH TICKET ACCORDINGLY.
In this example, the Q46.00 in the fare breakdown is a FUEL surcharge per the
fare rule. The surcharge is filed as USD46.00. When converted to NUC for
inclusion in the fare breakdown (by dividing USD46.00 by IROE 1.00) it equals
NUC46.00. As the journey booked flights between LIM and BOG in both fare
components, the “Q46.00” surcharge applies to each fare component. Accord-
ing to the rule category, the only exception applies to infants not occupying a
seat. A child or infant occupying a seat will be charged the same surcharge
amount as the adult.
Example 2: Sales Restriction Surcharge

Let's examine a return journey from MAD to PTY where a Q Surcharge applies
to a fare that only specific agents can sell.
IB 6339 A 10OCT MADPTY HK1 1150 1530 AON0NQB6
IB 6346 A 20OCT PTYMAD HK1 1710 1015 AON0NQB6
FARE CALCULATION
MAD IB PTY Q12.97 132.23IB MAD Q12.97 132.23NUC290.40END
The fare basis code for both flight segments is AON0NQB6. The corresponding
fare rule for AON0NQB6 fare basis is 027/M710.
Fare Display MAD to PTY
IB AON0NQB6 027/M710 A RT 214.00 264.46 6123 AT

Category 12 of the fare rule 027/VPA2 displays the following information:

CATEGORY 12/SU (SURCHARGES)
BETWEEN EUROPE AND AREA 1
THE PROVISIONS BELOW APPLY ONLY AS FOLLOWS - SALE IS RESTRICTED TO
SPECIFIC AGENTS. THERE IS NO CHARGE FOR TRAVEL.
ORIGINATING EUROPE - FOR TICKETING ON/AFTER 18SEP A SURCHARGE OF EUR
10.50 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL.
ORIGINATING AREA 1 - FOR TICKETING ON/AFTER 18SEP A SURCHARGE OF USD
12.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL.
Only agents appointed by IB can sell this special fare. The rule states that a
surcharge of EUR 10.50 applies to each fare component originating in Europe
(MAD). Since the fare breakdown displays all values in NUC, the EUR10.50
amount is converted to NUC by dividing by the IROE value of 0.809166
(10.50 ÷ 0.809166 = 12.97).
Example 3: A Government Surcharge

Let's examine a return journey from YTO to SAO where Canadian government
authorities impose a Navigation Surcharge.
AC 090 L 01AUG YYZGRU HK1 2345 1040 L50LBT
AC 091 L 08AUG GRUYYZ HK1 1950 0500 L50LBT
FARE CALCULATION
YTO AC SAO Q11.60 326.17AC YTO Q11.60 326.17NUC675.54
The fare basis code for both flight segments is L50LBT. The corresponding fare
rule for L50LBT fare basis is 005/TCSA.
Fare Display YTO to SAO
AC L50LBT 005/TCSA L RT 843.00 652.34 0551 WH
Category 12 of the fare rule 005/TCSA displays the following information:
ORIGINATING YTO –
– A SURCHARGE OF CAD 15.00 WILL BE ADDED TO THE APPLICABLE FARE FOR TRAVEL
FOR ANY SECTOR BETWEEN CANADA AND CENTRAL AMERICA/SOUTH AMERICA.
NOTE – THE SURCHARGE IS A NAVIGATION SURCHARGE. THE SURCHARGE APPLIES IN
ADDITION TO ALL OTHER CHARGES AND IS NOT SUBJECT TO ANY DISCOUNT. THE
SURCHARGE WILL ACCRUE TO AC ONLY
This surcharge is filed in CAD currency. The amount is converted to NUC by
dividing the surcharge amount by the IROE for Canada (1.292254). The
surcharge is collected for each Canadian departure and arrival, regardless of
whether the Canadian city is a stopover or connection. In this example the
departure city is YTO and there is a specific surcharge for this city. Without
exception, it applies to all passenger types (adult, child and infant alike).
Key Learning Point

Although GDS pricing automation applies and identifies Q Surcharges in the
fare breakdown, category 12 (SU) of the selected fare rule explains the Q
Surcharge reason, values and discount information.

Study Check 12.8
1. Which fare breakdown displays the correct Q Surcharge format?

(a) MEX AM BUE Q175.00 403.50AM MEX Q175.00
403.50NUC1157.00END ROE1.00
(b) MEX AM BUE403.50 Q175.00AM MEX403.50
Q175.00NUC1157.00END ROE1.00
(c) MEX AM BUE Q 403.50 AM MEX Q350.00 403.50NUC1157.00END
ROE 1.00
2. Which fare breakdown displays the correct Q Surcharge format?

(a) MIA AA BOG Q105.00 108.00AA MIA Q105.00 83.00NUC401.00END
ROE 1.000000
(b) MIA AA BOG108.00AA MIA83.00 Q210.00NUC401.00END
ROE1.000000
(c) MIA AA BOG Q 108.00AA MIA Q 83.00NUC401.00END
ROE1.000000
3. Q Surcharges display in the fare breakdown in their filed currency.

TRUE or FALSE?
(a) True
(b) False
4. The Q surcharge appears in the tax box on the ticket. TRUE or FALSE?
(a) True
(b) False
5. Which Q Surcharge level applies for an adult traveling on this itinerary at

the IUKTI14 fare of NUC 2925.60? The ticket is issued on 29JUN. Read
the rule for the IUKTI14 fare in the Fare Lookup Tool.
BA 007 I 23JUL LHRHND HK1 1140 0710
BA 008 I 10AUG HNDLHR HK1 0850 1310
(a) GBP 8.00 per fare component
(b) GBP 9.00 per fare component
(c) JPY 1300 per fare component
(d) There is no Q Surcharge to apply

6. Which Q Surcharge level applies for an adult traveling on this itinerary at

the XLPRFR fare of NUC 281.77? Read the rule for the XLPRFR fare in
the Fare Lookup Tool.
AF 990 X 20SEP CDGJNB 2320 0955
AF 995 X 30SEP JNBCDG 1850 0535
(a) EUR 20.00 per fare component
(b) EUR 20.00 for the whole itinerary
(c) ZAR 180 per fare component
7. Which Q Surcharge level applies for a child traveling on this one way
journey at the KOQJWW fare? Read the rule for the KOQJWW fare in the
Fare Lookup Tool.
PG 4439 K 22JUL BKKDEL HK1 1100 1320
(a) THB 8000
(b) THB 4000
(c) THB 6000
Refer to the following itinerary to answer questions 8, 9 and 10.

AV 140 H 17SEP LIMBOG HK1 0115 0430
8. What Q Surcharge level applies for a child traveling at the HEO00RIG

fare? Read the rule for the HEO00RIG fare in the Fare Lookup Tool.
(a) USD 23.00
(b) USD 46.00
(c) USD 64.00
9. What is the Q Surcharge level for an infant not occupying a seat?

(a) USD 46.00
(b) USD 92.00
(c) USD 64.00
10. What is the combined total of all Q surcharges for an adult, a child (8 years)
and an infant (9 months) traveling together?
(a) USD 46.00
(b) USD 92.00
(c) USD 64.00

12.8.3 Unit Summary

• A surcharge is an extra fee collected by the airline on behalf of the airline or
governments/airport authorities, in reaction to significant changes in the
marketplace such as security and fuel. (Unit 12.8.1)
• The Q surcharge is not a tax, it is always included as a separate amount in
the fare breakdown. (Unit 12.8.1)
• It is widely known in the industry as a Q surcharge because the fee is
shown in the fare breakdown with the code ‘Q’. (Unit 12.8.1)
• Category 12 (SU) of the applicable fare rule defines surcharge levels and
discounts to collect, including exceptions. (Unit 12.8.2)
• Discounts may apply to child and infant Q Surcharges. (Unit 12.8.2)
Try activity 11.
Apply Your Learning
What type of surcharges does your national airline impose? Do airports in your
country impose surcharges that must be collected with the airfare? Often,
airline websites publish the list of surcharges they impose and those imposed
by government offices.

12.9 Taxes, Fees and Charges
• Describe the different types of TFCs collected on airline traffic documents

(Unit 12.9.1).
• Explain how TFCs are converted from filed currency to ticket currency
(Unit 12.9.2)
Unit Learning • Recognize ticketing entries for taxes/fees/charges (including tax code XT)
This Unit examines the collection of Tax/Fee/Charges at the time of ticketing.
Various Taxes, Fees and Charges (TFCs) are collected worldwide by airlines
upon ticket issuance on behalf of governments and airport authorities to
finance the performance of different initiatives. The United States government,
for example, imposes a variety of taxes on passenger travel. Each TFC is used
to offset expenses incurred by different government agencies in performing a
variety of services ranging from customs inspection, immigration inspection,
agricultural plant and health inspection, airport development and improvement
charges, passenger facility charges, etc.
Note: Like fares and mileages, TFCs change frequently. Hence, the TFC
provisions and values in this Unit are for illustration purposes only.
12.9.1 Types of TFCs

There are many types of TFCs collected at time of ticket issuance. For easier
identification, these are usually associated with the type of ticketed points in the
itinerary, the place of sale and ticket issue. In this regard, TFCs may be
classified as:
• Departure TFCs
• Arrival TFCs
• Sales Tax
• Ticket Tax
Departure TFCs
Departure TFCs may apply for each ticketed point of departure. Such ticketed
departure points may include the point of origin, stopovers and transit points
(including no stopover points displayed with the code ‘X/’).
Departures TFCs come in a variety of forms but are usually expressed as a
fixed amount and not as a percentage. The provisions require that such taxes,
fees or charges are to be collected during ticket issuance for each departure
from a point in the taxing country. These may be for domestic or international
travel depending on the TFC specifications.

Example Departure Tax for Norway:
NO NORWAY
1. G2 001 AP AIR PASSENGER TAX
TAX IS APPLICABLE TO DEPARTURES FROM ALL AIRPORTS
IN NORWAY IRRESPECTIVE OF WHERE THE TICKET IS ISSUED.
.
DOMESTIC/INTERNATIONAL DEPARTURES
NOK 84.00
.
TAX EXEMPTIONS
1.INFANTS UNDER 2 YEARS WITHOUT A SEAT
2.AIRLINE EMPLOYEES ON DUTY TRAVEL
3.TRANSIT SAME FLIGHT AND TRANSFER PASSENGERS WITHIN 24 HOURS
.
THE TAX IS TO BE COLLECTED AT POINT OF SALE AND
SHOWN SEPARATELY ON THE TICKET BY CODE G2.
Figure 12.9.1—Departure Tax Norway
Explanation:
The departure tax from all airports for departures in Norway is NOK 84.00
There are three exemptions (passengers who do not pay this tax), numbered
by 1, 2 and 3.
The tax code on the ticket will be G2.
Arrival TFCs
These are TFCs imposed for arrivals at a particular airport or country that are
mostly tied to costs involving immigration inspection, customs inspection, and
other types of services used to process passenger arrivals. However, these
taxes/fees/charges may also have been legislated for environmental causes
such as the example below.
Example Arrival Tax Bahamas:
BS BAHAMAS
BAHAMAS TAX INFORMATION
5. ENVIRONMENTAL FEE
TAX CODE ON TICKET: * C5 *
AMOUNTS:
FREEPORT - GRAND BAHAMAS INTL AIRPORT (FPO)
DOMESTIC AND INTERNATIONAL ARRIVALS BSD 0.50
THE TAX IS TO BE COLLECTED AT POINT OF SALE AND SHOWN

SEPARATELY ON THE TICKET BY CODE C5.
EXEMPTIONS:
- INFANTS (CHILDREN UNDER 2)
- AIRLINE CREW ON DUTY
- INVOLUNTARY RE-ROUTING WEATHER CONDITION
Figure 12.9.2—Arrival Tax Bahamas
Unit 12.9: Taxes, Fees and Charges 989

Explanation:
The arrival tax for all arrivals at Freeport (FPO) Bahamas BSD 0.50
There are three exemptions.
The tax code on the ticket will be C5.
Sales Tax
At the point of sale (where the sale takes place), a Sales Tax, Value Added Tax
(VAT), Goods and Services Tax (GST), or any other tax may apply for the
purchase of a traffic document. In general this is often a local tax assessed as
a percentage of the fare and is collected locally in the taxing country at the time
of traffic document issuance.
Example Value Added Tax Latvia:
LV LATVIA
1. VALUE ADDED TAX DOMESTIC
TAX CODE: *IY*
COLLECTED ON FARES FOR DOMESTIC FLIGHTS FOR TRAVEL WHOLLY WITHIN LATVIA.
APPLIES ON EUR FARE FOR DOMESTIC DEPARTURES.
12.00 PERCENT
EXEMPTIONS
1.NO STOPOVER - TRANSIT/TRANSFER PASSENGERS -24 HOURS-.
2. INVOLUNTARY REROUTING- E.G. DUE TO TECHNICAL PROBLEMS OR WEATHER
CONDITIONS
Figure 12.9.3—Value Added Tax Latvia
Explanation:
The value added tax for domestic flights in Latvia is 12.00 percent.
There are two exemptions.
The tax code on the ticket will be IY.
Ticket Tax
The ticket tax is not a sales tax but a TFC imposed on the issuance of tickets.
Example Ticket Tax Mali:
ML MALI
MALI TAX INFORMATION
1. TICKET TAX
TAX CODE ON TICKET * ML *
LEVIED ON ALL DOMESTIC AND INTERNATIONAL TICKETS ISSUED IN

MALI. FOR PROVISION OF SERVICES "DOMAINES."
- DOMESTIC DEPARTURES XOF 800

- INTERNATIONAL DEPARTURES XOF 1000
Figure 12.9.4—Ticket Tax Mali

Explanation:
The Ticket Tax for tickets issued in Mali is XOF 800 for domestic departures
and XOF 1000 for international departures. The tax code on the ticket will be
ML.
Key Learning Point

There are four different types of TFCs collected on airline traffic documents on
behalf of governments and airport authorities.
1. Departure TFCs
2. Arrival TFCs
3. Sales Tax
4. Ticket Tax
All taxes are shown on the ticket with a specific tax code.
12.9.2 Conversion of TFCs to Ticket Currency

To obtain the total cost on the ticket, TFCs to be collected for each ticketed
point on the itinerary will have to be converted to the ticket payment currency.
In the following example we will show you the conversion of TFCs for a ticket
issued in Australia.
Journey:
UA842 Y 02DEC 1 SYDLAX HK1 1120 0600 02DEC E 0 789
The following taxes apply:

SYD, Australia (Country of Origin and Point of Sale)
Two (2) taxes apply:
• AUD 55.00 AU
• AUD 28.42 WY
LAX, United States (Destination/Arrival Country)
Four taxes apply.
• USD 17.70 US
• USD 5.50 YC
• USD 7.00 XY
• USD 5.00 XA
Since this ticket has been issued in Australia, the ticket currency will be
Australian Dollar (AUD).
Therefore, all taxes in other currency will have to be converted to AUD. This will
be done by using the Bankers Selling Rate (BSR).

Suppose BSR is the following: From USD to AUD BSR is 1.1379. The rounded
amount of all taxes in the ticket will be the following:
AUD 55.00 AU ~ AUD 55.00AU
AUD 28.42 WY ~ AUD 28.42WY
USD 17.70 US x 1.1379 ~ AUD 20.20 US
USD 5.50 YC x 1.1379 ~ AUD 6.30 YC
USD 7.00 XY x 1.1379 ~ AUD 8.00 XY
USD 5.00 XA x 1.1379 ~ AUD 5.70 XA
All TFCs will be added to the Fare paid in AUD to obtain the overall ticket total.
All taxes and the overall ticket total are shown in the ticket below
(Figure 12.9.5). Note: XT Tax is a summed up tax. This means that only two
taxes are in the first two tax boxes on the left side of the ticket (in Figure 12.9.5:
AUD 28.42-WY and AUD 55.00-AU). All other taxes are summed up in the XT
Tax box. The XT tax breakdown is visible in the fare calculation, after the ROE.

SYD
LAX UA 842 Y Y 02DEC 0930 Y1BRY 2P
AUD 4698.00 02DECSYD UA LAX3655.85NUC3655.85END ROE

1.284803XT AUD 5.70-XA AUD 8.00-XY
AUD 28.42-WY AUD 6.30-YC AUD 20.20-US
AUD 55.00-AU
AUD 40.20-XT
AUD 4821.62
Figure 12.9.5—Ticket SYD to LAX with taxes
Key Learning Point

TFCs to be collected for each ticketed point on the itinerary will have to be
converted to the ticket currency using the BSR. All TFCs will be added to the
fare paid to obtain the overall ticket total. All taxes and the overall ticket total
are shown in the ticket. XT Tax is a summed up tax.

12.9.3 Taxes/Fees/Charges on Tickets

Ticketing systems now provide for 99 occurrences of the TFC data elements,
plus another 99 paid TFC data elements. However the tax code XT is still being
used in the Passenger Itinerary Receipt.
Taxes/fees and charges on a ticket appear as follows:
• All TFC amounts are preceded by the applicable ticket currency code and
followed by the applicable tax code.
• The TX tax code indicates a summed up tax.
Let’s examine two ticket examples.
Example 1:
---------------------------------------------------------
AMS
DEL KL 871 T T 17JUL 1425 THXSFNL 17JUL17JUL 1P
AMS KL 872 T T 24JUL 0345 THXSFNL 24JUL24JUL 1P
EUR 918.00 17JULAMS KL DEL Q62.47 535.54KL AMS

535.54NUC1133.55END ROE0.809166
EUR 22.00-YQ XT EUR 11.61-CJ EUR 14.00-RN EUR 5.38-WO
EUR 230.00-YR
EUR 30.99-XT
EUR 1200.99
Figure 12.9.6—Roundtrip ticket AMS to DEL with taxes
Explanation:
On this ticket, 5 taxes are shown: 22.00-YQ, 230.00-YR, 11.61-CJ, 14.00-RN
and 5.38-WO.
The last 3 taxes (11.61-CJ, 14.00-RN and 5.38-WO) are summed up in the XT
tax. They are explained right after the ROE. All taxes are added to the fare
(EUR 998.00) to get the overall ticket total (EUR 1280.99). Taxes which begin
with the letter Y are often taxes imposed by the airline. YQ is often the airline
fuel surcharge and YR is often the airline charge for miscellaneous fees.

Example 2:
-----------------------------------------------------------
HEL
XREK FI 343 M M 08JUL 1535 MHXRQFL 1P
YMQ FI 805 M M 08JUL 1705 MHXRQFL 1P
XREK FI 804 M M 18JUL 2010 MHXRQFL 1P
HEL FI 342 M M 19JUL 0730 MHXRQFL 1P
EUR 2011.00 08JULHEL FI X/REK FI YMQ1242.59FI X/REK

FI HEL1242.59NUC2485.18END ROE0.809166
EUR 178.00-YR XT EUR 8.88-FI EUR 1.20-XU EUR 9.56-IS EUR
EUR 4.88-DQ 10.18-ZU EUR 17.11-CA EUR 0.99-XG EUR 1.98
EUR 69.71-XT -XQ EUR 19.81-SQ
EUR 2263.59
Figure 12.9.7—Roundtrip Ticket HEL to YMQ with taxes
Explanation:
On this ticket, 10 taxes display:
1. 178.00-YR
2. 4.88-DQ
3. 8.88-FI
4. 1.20-XU
5. 9.56-IS
6. 10.18-ZU
7. 17.11-CA
8. 0.99-XG
9. 1.98-XQ
10. 19.81-SQ
The last 8 taxes are summed up with the XT tax code. They are explained right
after the ROE.
All taxes are added to the fare (EUR 2188.00) to get the overall ticket total
(EUR 2440.59)
Key Learning Point

All TFC amounts are preceded by the applicable ticket currency code and
followed by the applicable tax code. Taxes can be summed up in the XT tax.
Taxes which begin with the letter Y (YQ and YR) are taxes imposed by the
airline.

Study Check 12.9
Examine the following ticket and answer questions 1 to 3.

MOW
LON SU 2580 J J 11OCT 0720 JFM 2P
MOW SU 262 J J 18OCT 1100 JFM 2P
EUR 3815.00 11OCTMOW SU LON2356.83SU MOW2356.83NUC

4713.66END ROE0.809166
EUR 204.00-YQ XT EUR 7.25-RI EUR 29.91-GB EUR 53.64-UB
EUR 7.25-RI
EUR 90.80-XT
EUR 4117.05
1. How many taxes does the ticket collect?

(a) 4
(b) 5
(c) 6
(d) 7
2. How many taxes does the XT tax code sum up?

(a) 2
(b) 3
(c) 5
(d) 6
3. Which tax is imposed by the airline?

(a) RI
(b) UB
(c) YQ
(d) XT

Examine the following ticket and answer questions 4 to 6.

BUE
MAD IB 6856 T T 11NOV 1435 TDNNNB 11NOV11NOV 2P
BUE IB 6845 T T 18NOV 1215 TNNN1O 18NOV18NOV 2P
USD 1977.00 11NOVBUE IB MAD Q12.00 1585.00IB BUE Q

12.00 367.50NUC1976.50END ROE1.000000
USD 172.13-AR XT USD 49.00-XR USD 10.00-QO USD 10.00-TQ
USD 482.00-YQ USD 24.33-JD USD 0.69-OG USD 3.97-QV
USD 97.99-XT
USD 2729.12
4. How many taxes does the ticket collect?

(a) 5
(b) 6
(c) 7
(d) 8
5. How many taxes does the XT tax code sum up?

(a) 4
(b) 5
(c) 6
(d) 7
6. Which tax is imposed by the airline ?

(a) QO
(b) QV
(c) XR
(d) YQ
Try Activity 12

12.9.4 Unit Summary

• There are many types of TFCs collected at ticket issuance. TFCs may be
classified as:
○ Departure TFCs;
○ Arrival TFCs;
○ Sales Tax;
○ Ticket Tax (Unit 12.9.1).
• TFCs not expressed in the currency of payment will be converted at the
banker’s selling rate (BSR) (Unit 12.9.2).
• All TFCs will be added to the fare paid to obtain the overall ticket total (Unit
12.9.3).
• All TFC amounts are preceded by the applicable ticket payment currency
code and followed by the applicable tax code (Unit 12.9.3).
• Taxes which begin with the letter Y are often taxes imposed by the airline.
YQ is often the airline fuel surcharge and YR is often the airline charge for
miscellaneous fees (Unit 12.9.3).
Apply Your Learning
“What kind of exchange rates are shown in the ICER list?”
The IATA Consolidated Exchange Rates contain actual bankers selling rates
(BSRs) while others are exchange rates fixed by governments and their
Central Banks. These rates are updated daily and are referred to as BSRs.
BSRs are used to convert fares and other charges (TFCs) to the currency of
payment. Use the Fare Lookup Tool to find BSR exchange rates for the
currency traded in your country against the USD, EUR, JPY, HKD, CNY, GBP,
AED and any other currency of interest to you and your travel customers.

12.10 The Ticket
• Define a ticket, the ticketing process, and benefits for consumers

(Unit 12.10.1).
• Explain the basic messaging process that supports the ticketing method
(Unit 12.10.2).
Unit Learning • Identify participating operational, marketing and validating carrier roles
By completing this Unit, • Describe interline ticketing principles (Unit 12.10.3).
you will be able to: • Comply with regulatory requirements concerning advanced provision of
passenger data and proof of identity (Unit 12.10.4).
• Locate and interpret data in ticket elements (Unit 12.10.5).
• Decode coupon status indicators (Unit 12.10.6).
• Interpret spacing rules for linear fare breakdown (Unit 12.10.6).
• Present key details shown in the Passenger Itinerary Receipt (ITR)
(Unit 12.10.7).

This Unit focuses on locating and interpreting important ticket data elements
which are provided to the passenger in the form of a Passenger Itinerary
Receipt. It is important to interpret ticketing details as the Passenger Itinerary
Receipt is a contract between the airline and the passenger.
The ticket highlights important advice that must be communicated to the
customer. Restricted fares apply fees for reservation changes and penalties if
the customer does not cancel the reservation and does not travel. When there
is a clue that the ticketed fare applies penalties, the issuing agent must read
the fare rule and ensure the customer understand the consequence of
changing the flights booked or of not cancelling the ticket. A partial or total
value of the ticketed fare may be non-refundable is the customer is a no-show
or the fare conditions do not allow changes and the passenger does not travel.
12.10.1 Ticketing
Ticketing is an electronic way to record the sale of air transportation and track
the usage of passenger transportation. All data relating to the passenger’s
itinerary, fare, class, payment, TFCs, etc. is stored in a record in the database
of the Validating Carrier (the issuing airline). All ticketing transactions are
electronically supported and the validating carrier tracks and controls all
coupons in real time. All data records are accessible within a minimum of
13 months from the date of issue.
Tickets are impossible to lose because the ticket data resides virtually in the
validating carrier’s database. Passengers typically print out copies of their
ticket in the form of a Passenger Itinerary Receipt (ITR). Only those with the
proper ID/password can actually access the booking (PNR) with the ticket
number and data.
When a travel agent requests to issue a ticket, a message is sent to the
validating carrier’s computer system to inform it that a ticket is to be issued.
This message can be accepted by the carrier or rejected if there are incorrect
data elements present. When accepted, the ticket is stored in the carrier’s
database. For every change made to the ticket, such as voiding, exchange/

reissue and refund, a message is sent to the validating carrier’s database to

accept or deny the request from the travel agent.
Post-purchase, airlines can communicate with passengers to advise of travel
time adjustments, cancellations and other last-minute changes. Both airlines
and travel agents offer the convenience of downloading the ticket data into
mobile devices. Passengers can receive everything from gate assignments to
flight rescheduling, cancellation or delays through e-mail and text messaging.
For busy travelers, receiving real-time updates on their travel arrangements is
very convenient and reduces the hassle of traveling. Airlines and travel
agencies can also use the same system to alert their clients to special
promotions or allow them to purchase an upgrade, even at the last minute.
Key Learning Point

The Ticket is the Passenger Itinerary Receipt (ITR) or “proof of purchase”
issued by the validating carrier who safely stores virtual flight coupons and
other ticket data in its database. It is also the contract of services between the
passenger and the transporting airlines.
12.10.2 Participating Airlines in the Ticketing

Process
There are three roles that airlines play in the ticketing and transportation
process.
• Validating carrier—the airline issuing the ticket whose numeric code
appears in the ticket transaction number. It is also known as the “issuing”
or “plating” airline.
• Marketing carrier—the transporting airline that displays its 2-character
code in the PNR’s booked flight segments and in the ticket’s flight coupons.
The marketing carrier may or may not be providing the transportation, such
as in the case of code sharing. In code sharing situations, one airline puts
its code and flight number on a flight operated by another airline.
• Operating carrier—the airline actually providing the transportation or in
other words, flying the aircraft.
An airline can be the Validating, Marketing and Operating carrier for a flight.
This would mean that the booked airline issues the ticket, sells the seat and
flies the airplane.
Key Learning Point

A ticket may be issued by one airline (validating carrier), sold by another airline
(marketing carrier) and flown by a third airline. But more often we see the same
airline validate the ticket, sell the fight and operate the flight with its own
aircraft.
12.10.3 Interline Tickets

When a travel agency books a ticket through a Global Distribution System
(GDS), an exchange of standard messages between the GDS and the issuing
airline helps validate the ticket. Tickets represent the entire itinerary priced and
paid for, whether travel is online or interline. The entire ticket can only be
issued by one airline, even if the itinerary is interlining, booked on two or more
Unit 12.10: The Ticket 999

airlines. Each interlining airline has control over its own booked and ticketed
flight coupons.
A bilateral interline agreement enables multiple airlines to participate in one
ticketed itinerary. These agreements require airline partners to exchange ticket
information. These messages request, confirm or deny changes to ticket
coupons. Once a ticket is issued, the validating carrier’s ticketing system tracks
each ticket coupon’s status. Airlines update the ticket coupon status indicator
for the segments they own so the validating carrier knows the status of each
coupon (unused/open, checked-in, flown/used, etc.).
When an interline ticket is issued, the validating carrier receives the full value of
the ticket. As soon as the status of a flight coupon displays “FLOWN” or
“USED”, the validating carrier transfers an agreed portion of the ticket price to
the interlining airline together with an ESAC (Electronic Settlement Authoriza-
tion Code). When all flight coupons are booked on the validating carrier’s own
flights, then the validating carrier returns only one ESAC for all flown coupons.
When there is interlining, each airline needs its own coupon settlement
authorization code so it can bill the validating carrier for its participation in the
airfare. The ESAC code allows each marketing/operating carrier participating in
the ticket itinerary to receive its portion of the price of a ticket.
Key Learning Point

A bilateral interline agreement allows one airline to issue (validate) a ticket,
collect the full value of the ticket and exchange ticket information with airline
partners. The validating carrier transfers an agreed portion of the ticket price to
the interlining airline together with an ESAC (Electronic Settlement Authoriza-
tion Code) when the ticket coupon is used or flown.
12.10.4 Passenger Data and Proof of Identity

On routes between specific destinations, airlines must provide each passen-
ger’s personal information to customs and immigration authorities before flight
departure. This is a mandatory government requirement known as Advance
Passenger Information (API). API refers to specific passport/ID card details
such as:
• Full name (as it appears on the passport/ID card)
• Date of Birth
• Passport Number/ID card
• Country where passport/ID card was issued
• Passport/ID card expiry date
• Nationality
• Gender
When traveling to the USA, for example, airlines must transmit a minimum
amount of passenger data to the US Transportation Security Administration
(TSA). This is known as Secure Flight Passenger Data (SFPD). The data
requests must be included in the passenger booking (PNR) at the time of
ticketing, otherwise the airline refuses to issue the passenger ticket. The
minimum amount of data required is:
• Passenger Name
• Date of Birth
• Gender

When a ticketed passenger travels, he/she must carry identification in the form
of a passport or national identity card.
Key Learning Point

Some countries implement an Advance Passenger Information (API) pro-
cedure where the departing and/or arriving airline must collect and transmit to
customs and immigration authorities personal identification information for
each ticketed passenger.
12.10.5 Locating and Interpreting Ticket Data

A ticket is a contract of carriage between the passenger and the airline. A ticket
has value for a period of one year from the date of commencement of travel.
All tickets display the same information, no matter which system issues them.
However, the layout and format of information displayed may vary between
different systems.
You will see examples of ETRs (Electronic Ticket Records) in this section. Data
elements in the ticket examples are referenced with numbered explanations.
As you compare these ticket examples, you will notice that they do not display
every data field possible—they only display the elements relevant to the
passenger’s reservation.
Sample Travelport/Galileo Ticket
Figure 12.10.1—Example of an unused Travelport/Galileo ticket issued by a travel

agency

Data Element Label Data Element Description

1 TKT Ticket number
2 NAME Passenger’s surname/first name and title
3 ISSUED Date of ticket issue
4 FOP Form of payment

5 PCC Pseudo city code, GDS code assigned to the
agency’s point of sale terminal
6 PLATING CARRIER Validating (Issuing) airline code
7 ISO 2-letter code for country where ticket was
issued
8 IATA Ticketing or agency IATA number
9 USE Coupon status indicator
10 CR Marketing carrier code
11 FLT Flight number
12 CLS Booking class code
13 DATE Scheduled departure date
14 BRDOFF The flight’s from/to cities flight origin and

destination
15 TIME Local departure time
16 ST Booked flight status code (OK = confirmed)
17 F/B Fare basis code
18 CPN Flight coupon number
19 NVB Not valid before date (DDMMM), if any, for

each flight segment
20 NVA Not valid after date (DDMMM), if any, for each
flight segment
21 FARE Local currency fare or base fare
22 TOTAL Sum of fare and TFCs
23 none Ticket endorsement and restriction
24 none Linear fare calculation
25 none Tax Codes and amounts, including summed

taxes with code XT
26 RLOC GDS PNR record locator
Note that two record locators are displayed:
1G (Galileo record locator from the travel
agency system)
1A (Amadeus record locator from the airline)
Table 12.10.1—Description of data elements in Figure 12.10.1

Sample Sabre Ticket
Figure 12.10.2—Example of fully used Sabre ticket issued by a travel agency

1 TKT Ticket number
2 ISSUED Date of ticket issue
3 PCC Pseudo city code, GDS code assigned to the

agency’s point of sale terminal
4 PNR GDS PNR record locator
5 NAME Passenger’s surname/first name and title
6 FOP Form of payment

7 IATA Ticketing or agency IATA number
8 CPN Flight coupon number
9 A/L Marketing carrier code
10 FLT Flight number
11 CLS Booking class code
12 DATE Scheduled departure date
13 BRDOFF The flight’s from/to cities flight origin and

destination
14 TIME Local departure time
15 ST Booked flight status code (OK = confirmed)


16 F/B Fare basis code
17 STAT Coupon status indicator
19 none TFC (TAX) breakdown
21 none Linear fare calculation
22 SETTLEMENT ESAC (Electronic Settlement Authorization

AUTHORIZATION Code) from the validating carrier, confirming
that all ticket coupons are consumed
Sample Amadeus Ticket
Figure 12.10.3—Example of an unused Amadeus ticket issued by a travel agent
Figure 12.10.4—Tax breakdown for Figure 12.10.3

Data Element Label Data Element Dsecription

1 TKT Ticket number
2 LOC GDS PNR record locator
3 OD Origin and final destination points
4 FCPI Fare calculation pricing indicator

0 = fare has been computer priced
1 = manually priced or could be auto-priced
with agent overrides
2 = fare was auto-priced both baggage and/or
TFCs manipulated
5 POI Place (city) of issue
6 DOI Date of ticket issue

7 IOI Issuing office or agency IATA number
8 none Passenger’s surname/first name and title
9 none Ticket coupon number
10 none Flight coupon departure city
11 none Marketing carrier 2-character code
12 none Coupon flight number
13 none Scheduled departure date
14 none Scheduled departure time
15 none Booked flight status code (OK = confirmed)
16 none Fare basis code
17 none Flight coupon status indicator code

(O = OPEN)
18 none Not valid before date (DDMMM), if any, for
each flight segment
19 none Not valid after date (DDMMM), if any, for each
flight segment
20 none Checked baggage allowance (NO = no
checked bags included with the price)
22 TOTAL TAX Sum of TFCs
24 /FC Fare calculation breakdown
25 FE Endorsement box displaying change and can-

cellation restrictions

Data Element Label Data Element Dsecription

26 FP Form of payment (in this case, the agency has
collected payment from the customer and has
issued an invoice to the customer. The cus-
tomer may be paying in currency banknotes,
by credit or debit card or even by bank
cheque. Nevertheless, the travel agency is
holding the TOTAL amount in trust for remit-
tance to the validating carrier.
Key Learning Point

All tickets display the same data, no matter which system issues them.
However, the layout and format of information may be different between
ticketing systems.
12.10.6 More About Ticket Elements

Let’s examine data elements that are influenced by the ticketed fare.
NVB (Not Valid Before) and NVA (Not Valid After)
When a fare rule imposes cancellation or reservation change fees, the ticket
coupons display the actual travel date per coupon in the NVB and NVA data
elements.
Let’s examine an example by considering this ticket.

MEX
LIM AM 46 R 27AUG 0820 RLXLKTCM 27AUG27AUG 2P
MEX AM 47 R 04SEP 1550 RLXLKTCM 04SEP04SEP 2P
USD 570.00 27AUG MEX AM LIM Q165.00 120.00AM MEX Q

MXN 10833 165.00 120.00NUC570.00END ROE1.000000
MXN 1090-XD XT MXN 15-YR MXN 285-DY MXN 579-HW
MXN 654-XO
MXN 879-XT
MXN 13456
RATE USED 1USD=19.00430MXN
The cancellation and/or reservation change condition for the RLXLKTCM fare
imposes a penalty.
CATEGORY 16 PENALTIES
CANCELLATIONS
ANY TIME
TICKET IS NON-REFUNDABLE IN CASE OF CANCEL/REFUND.
CHANGES
ANY TIME
CHARGE USD 200.00 FOR REISSUE/REVALIDATION.

Suppose a fare applies no penalties where a cancellation or reservation

change is free of charge. Then the minimum and maximum stay condition
determines the NVB and NVA dates. For return fares with a minimum and
maximum stay condition, the coupon for the flight from the point of turnaround
(or from last stopoverpoint) will display a NVB date. The NVB data element
represents the first day that travel can begin from the point of turnaround,
subject to the minimum stay condition. The minimum stay condition determines
the NVA date.
Let’s pretend that the RLXLKCM fare is refundable and reservation changes
are free. The minimum stay rule is as follows:
TRAVEL FROM LAST STOPOVER MUST COMMENCE NO EARLIER THAN
3 DAYS AFTER DEPARTURE FROM FARE ORIGIN.
The minimum stay date must be respected when booking the return flight.
Therefore, the LIM-MEX flight coupon will show NVB 30AUG.
The maximum stay date must also be respected.
TRAVEL FROM LAST STOPOVER MUST COMMENCE NO LATER THAN
6 MONTHS AFTER DEPARTURE FROM FARE ORIGIN.
The last day the passenger can return from LIM to MEX is six months after the
departure date from MEX. Therefore, the LIM-MEX flight coupon will show NVA
27FEB.
MEX
LIM AM 46 R 27AUG 0820 RLXLKTCM 2P
MEX AM 47 R 04SEP 1550 RLXLKTCM 30AUG27FEB 2P
FCMI (Fare Calculation Mode Indicator)/FCPI (Fare

Calculation Pricing Indicator)
The FCMI or FCPI are ticket data elements that identify how the issuing office
assessed the fare collected. There are three FCMI or FCPI codes that the GDS
system automatically displays in a ticket:
1. for fares that are computer-priced (auto-priced through GDS automation);
2. for fares that are manually-priced by the issuing airline or travel agent;
3. for fares that are computer-priced but TFCs and baggage are manually
priced.
When the validating carrier audits a fully used ticket issued by a travel agency
and discovers an under collection in the fare, TFC or baggage charge, the
airline will collect the difference directly from the travel agency by issuing an
Agency Debit Memo (ADM). If the travel agency disputes the ADM charge,
asking the airline to reverse it, the airline will review the entry in the FCMI or
FCPI ticket element.
The GDS supplier guarantees the accuracy of fares that are computer-
generated. The GDS supplier does not protect the agent from an ADM
collection when the agent manually prices the PNR (FCMI code 1), avoiding
the use of GDS automated pricing functionality. Hence, any airline debit memo
for fare under collections or pricing errors will not be absorbed by the GDS
supplier.

Status Code Indicators

As shown in the sample tickets displayed in Figure 12.10.1 to 3, each flight
coupon has an associated Coupon Status Indicator. When a change is made to
a ticket coupon with OPEN status, the indicator changes as well. Each coupon
of a ticket displays a coupon status indicator that enables tracking and
identification of the state of each coupon throughout the “life” of the ticket.
Status Code Indicators appear in each flight coupon but their codes and
position in the coupon line varies between ticketing systems. In Figure 12.10.1
and 12.10.3, the status indicator for each coupon displayed is “OPEN” or “O”.
This open status code means that each coupon can be changed. The open
status code allows the authorized travel agent to exchange, reissue, and void
or refund each open coupon, subject to applicable fare conditions and
re-pricing.
The varied formats used by reservation systems to indicate an open status for
a coupon are:
• a blank status indicator field (no code);
• a single letter “O” printed in the status indicator field;
• the word “OPEN” printed in the status indicator field.
The airline may express the coupon indicator as a code or as plain text. Some
systems provide an abbreviation of the status codes, e.g. CKIN (for checked-
in), CTRL (control of coupon), etc. Other systems display these codes in detail.
Table Standard status indicator codes are:
Letter Code Format Text Format Explanation

Format
A CTRL AIRPORT CONTROL indicates that the airline has gained control of
the flight coupons
C CKIN CHECKED-IN indicates the passenger has checked in for the
flight
E EXCH EXCHANGED REISSUED indicates the value of the coupon(s) has been
used in payment for a new transaction
F FLOWN USED FLOWN indicates that the journey associated with the
flight coupon has been completed and is now
ready for billing and revenue reporting
O OPEN OPEN FOR USE indicates the coupons are eligible for changes
R RFND REFUNDED means that the unused value of the ticket has
been refunded to the passenger
S SUSPENDED indicates that the validating carrier restricts the
coupon use, often because the passenger did
not cancel and did not travel (no-show)
V VOID VOID shows the cancellation of the entire ticket
Table 12.10.4—Common coupon status indicators
Fare Calculation
This data element illustrates how a ticket is priced (the fare breakdown) in the
“Fare Calculation” field. Also referred to as linear fare breakdown, the
breakdown is read from left to right and follows a standard layout so that any
ticket agent or ticketing system can interpret the journey’s constructed fare.

Reading and interpreting data in this ticket element is helpful when making a
change to the itinerary after ticketing. The fare calculation element identifies:
• the city code for each ticketed point in the journey and Marketing carriers
• the fare breakpoints or fare construction points
• M for within the mileage or no M if it is a routing fare (exception is for a
point-to-point journey where a mileage type fare applies, but no M appears
as direct travel TPM is always lower than mileage fare MPM)
• the mileage surcharge level, if any
• the HIP sector, if the higher intermediate fare replaced the origin-
destination fare
• the applicable fare
• the total fare (inclusive of stopover fees and surcharges, if any)
• the IATA Rate of Exchange (IROE)
Spaces between characters all follow standard rules.
A space exists between…
1. City and airline codes
e.g. PBM 8I AUA 7I CUR KL AMS
2. Alpha codes
e.g. REK FI AMS M
3. Numerics
e.g. HKG CX YVR S75.00 807.00
A space does not exist between …

1. Alpha and numeric characters
e.g. VNO SK CPH681.50NUC681.50END ROE0.878934
2. Alpha characters and symbols
e.g. MVD LA X/SCL LA MEX
3. Numeric characters and symbols
e.g. DXB(373.62RUH EK DXB373.62)TG BKK
4. Symbols and symbols
e.g. DXB(/-RUH EK DXB373.62)TG BKK
Key Learning Point

When the fare is non-refundable or when a fee is charged for a reservation
change, the NVB and NVA dates for each coupon display the actual travel
dates booked. The FCMI (or FCPI) data element identifies whether the ticketed
fare was computer-priced or manually priced. Each coupon’s indicator de-
scribes the state of each coupon throughout the life of the ticket and help
determine if a change can be made to the coupon. The Fare Calculation
element details the ticketed fare breakdown, identifying ticketed points,
carriers, fare breakpoints, any applicable surcharges and IATA Rate of
Exchange if the fare displays NUC values.
12.10.7 Passenger Itinerary Receipt (ITR)

A new ticket issuance automatically prints an Agent Coupon and a Passenger
Itinerary Receipt (ITR). Passengers who buy tickets receive the Passenger

Itinerary/Receipt (ITR) from the travel agent or validating carrier. The ITR
serves as the passenger’s copy of the contract of transportation. The ITR
displays the same ticket details displayed in the passenger’s PNR. It is
recommended to provide the ITR to the passenger as early as possible before
departure. Because the ITR is an electronic document, travel agents normally
deliver them to their customers via email.
The ITR includes the following standard information:
• Passenger Name and Frequent Flyer number, if any
• Airline Designator or name of Marketing Carrier
• Name of Operating Carrier when different from the Marketing Carrier
• Flight Number(s)
• Date of Flight(s)
• Flight Departure Time(s)
• For each flight Origin and Destination Airport/City Code(s)
• Fare (Base Amount)
• Ticket/Document Amount (BT, IT when applicable)
• Equivalent Fare Amount (when applicable)
• Form of Payment
• TFC Amount(s), if any
• Reservations Status Code(s)
• Date of Issue
• Issuing Agency/Airline-Name and Place of Issue
• Ticket/Document Number(s) (also include conjunction ticket/document
numbers), if any
• Endorsements/Restrictions (including period of validity), if any
• Baggage Allowance (either free or paid baggage)
• Additional Baggage Information
• The airline’s CO2 emissions statement
Name in PNR does not match with name in ITR.
Consider this ticketed PNR, and the ITR for this reservation in Figure 12.10.5.
Note the data transferred from the PNR to the ticket, and from the ticket to the
ITR.
TKT-0472691751903 RCI - 1A LOC-JEIUU5

OD-LISLIS SI- FCPI-0 POI-MUC DOI-22JANYY IOI-23210552
1.FIONA/MELANIE MRS ADT ST
1 OLIS TP1026 O 20APR0655 OK O04DSC0A O 20APR20APR NO
2 OMAD TP1023 O 10MAY0725 OK O04DSC0A O 10MAY10MAY NO
LIS
FARE F EUR 2.00
TOTALTAX EUR 66.56
TOTAL EUR 68.56
/FC LIS TP MAD1.13TP LIS1.13NUC2.26END ROE0.880417
FE CHNG NOT PERMITTED/NON REF
FP INV

Figure 12.10.5—Sample Itinerary Receipt (ITR)

Locate the notices at the bottom of the ITR, stating the airline’s average carbon
emission levels and reference to the Warsaw Convention and Montreal
Convention that govern airline liability for passenger lives and personal
belongings.
Key Learning Point

Because a ticket is a virtual traffic document that resides in reservation
systems, passengers receive a Passenger Itinerary Receipt (ITR) as proof of
payment and as their contract for air transportation with the airlines booked.
Study Check 12.10
1. When the FCMI is 1, it means that the ticket is computer-priced and enjoys
a GDS fare guarantee. TRUE or FALSE?
(a) True
(b) False
2. Because of the provisions of the Warsaw Convention and the Montreal

Convention, all passengers must be given a copy of the Notices and
Conditions of Contract. TRUE or FALSE?
(a) True
(b) False
3. The NVB data element in a ticket represents the last travel date for the
flight coupon. TRUE or FALSE?
(a) True
(b) False
4. The Validating Carrier may be a Marketing Carrier in the itinerary. TRUE or

FALSE?
(a) True
(b) False
5. The TOTAL data element on a ticket represents the sum of the air fare
excluding TFCs. TRUE or FALSE?
(a) True
(b) False
6. The Marketing Carrier cannot be the Operating Carrier. TRUE or False?

(a) True
(b) False

7. In the ITR facsimile shown in Figure 12.10.5, the Frequent Flyer number is
mentioned below the name of the passenger. TRUE or FALSE?
(a) True
(b) False
8. The ITR constitutes the passenger ticket and the contract of carriage.
TRUE or FALSE?
(a) True
(b) False
9. When the form of payment is a credit card, the full account number must be
shown in the ITR. TRUE or FALSE?
(a) True
(b) False
10. The coupon status indicator “F” means that the flight coupon has been
used for travel. TRUE or FALSE?
(a) True
(b) False
11. Which is TRUE about a ticket?

(a) It has a high risk of fraudulent use
(b) Ticket coupons are printable
(c) It is proof of air transportation purchase
(d) The operating carrier must issue it
12. What agreement allows one airline to issue a ticket and collect the ticket
price on behalf of other participating airlines in the itinerary?
(a) Settlement Authorization
(b) Mandatory Ticket Notice
(c) Airline Debit Memo
(d) Bilateral Interline Agreement
13. What type of data must be collected before ticketing a passenger traveling
to or from an API destination?
(a) Form of payment
(b) Passport information
(c) Ticket number
(d) Mobile phone number

14. Which does a ticket’s linear fare calculation element display?

(a) The NVB and NVA dates
(b) The Coupon Status Indicator code
(c) The IROE
(d) The FCMI
15. Which fare calculation entry displays correct spacing rules?

(a) AMS KL MAD68.14KL AMS43.72NUC112.86END ROE0.880417
(b) AMSKLMAD68.14KLAMS43.72NUC112.86END ROE0.880417
(c) AMS KL MAD 68.14 KL AMS 43.72 NUC112.86 END ROE 0.880417
(d) AMS KL MAD68.14 KL AMS43.72 NUC112.86END ROE0.880417
Try activities 13, 14 and 15.
12.10.8 Unit Summary

• Tickets are virtual traffic documents that may be airline-issued or issued by
travel agents on behalf of the airline (Unit 12.10.1).
• Airlines participating in the ticket perform one or more roles: validating,
marketing and operating (Unit 12.10.2)
• Bilateral Interline Agreements between airlines allow interlining airlines to
partner in ticketing (Unit 12.10.3)
• Ticketing is sometimes permitted only after satisfying Advance Passenger
Information (API) procedures (Unit 12.10.4)
• A ticket displays many data elements with information from the reservation.
Every system produces traffic documents displaying the same data but in
varying formats. (Unit 12.10.5)
• Each flight coupon displays a coupon status indicator. This code tracks the
passenger’s usage of the flight coupon, e.g. from open for use, to
checked-in to flown. Only coupons displaying an open for use status can
be rebooked (Unit 12.10.6).
• The ticket produces a Passenger Itinerary Receipt (ITR) which is the
Contract of Carriage between the passenger and the airline (Unit 12.10.7).

12.11 Upsell Fares
• Establish a relationship between fare price and included services

(Unit 12.11.1)
• Research Upsell Fares and levels on an airline homepage (Unit 12.11.1)
• Identify the characteristics of an Upsell Fare structure (Unit 12.11.1)
Unit Learning • Discuss the advantages of Upsell Fares for travel customers
Objectives (Unit 12.11.2)
By completing this Unit, • List the types of amenities bundled with air fares to create Upsell Fare
you will be able to: levels (Unit 12.11.3)
• Explain the advantages of Upsell Fares for travel customers (Unit 12.11.4)
• Research Upsell Fares and levels on an airline homepage (Unit 12.11.4)
• Identify Upsell Fares and levels in a GDS fare display (Unit 12.11.5)
• Identify Upsell Fares and levels in Amadeus (Unit 12.11.6)
• Identify Upsell Fares and levels in Sabre (Unit 12.11.7)
• Identify Upsell Fares and levels in Travelport/Galileo (Unit 12.11.8)

Pre-flight and in-flight services used to be standard between airlines because
they all offered the same meal and beverage, baggage allowance and other
amenities like entertainment headsets or blankets at no extra cost. As a result,
the services offered on board hardly influenced passenger choice between one
airline and another.
With the introduction and growth of the low cost (“no frills”) carrier market,
legacy airlines had to find a way to compete. They introduced a-la-carte
shopping, separating the seat price from amenities, charging for them as
extras. They discovered that these extras, called ancillaries, created a new and
profitable revenue stream for them. Passengers are happier when they can pay
for only the products and services that interest them.
Most commercial airlines are private, responsible for their own financial health.
They study consumer demand to ensure they offer relevant products and
services, balancing price with value. Traditional airlines followed the low cost
airline model and have unbundled their products and services. Consequently,
the number and complexity of airline fares and ancillaries on offer have
multiplied, making journey pricing more challenging.
To offer the right airfare, travel professionals must be knowledgeable about
new fare structures and services offered. They help customize travel for
consumers who are increasingly more knowledgeable and demanding.
We explored standard airfares for the purchase of an airline seat. You can
interpret the rules of a fare and accurately advise customers on its flexibility or
limitations. In this Unit, you examine fare products called “Upsell Fares” such
as “Branded Fares” (also referred to as Fare Families in some systems). You
will understand how they are different. You will learn to research and identify
both fare products that help you customize an offer that includes only those
amenities that meet customer needs and preferences.
However, we must always be aware, that the airline industry changes at a fast
pace and the trends described can change at any given time and are not
Unit 12.11: Upsell Fares 1015

always true for any given airline. This Unit provide general strategies on how to
work with such products.
12.11.1 What are Traditional Fares?

There are two schemes of traditional fares.
One scheme includes complimentary in-flight amenities at no extra cost, such
as regular or special meals, advance seat assignment, carry-on and checked
bags, entertainment headsets, blankets and pillows. The complimentary
amenities are fixed inclusions and the passenger cannot change them, nor
eliminate any, nor add new amenities. These fares vary in cost, depending
solely on their fare conditions or limitations. The lowest of these fares tend to
limit or restrict the ability to cancel travel or change the reservation. Higher
fares allow cancellation with partial or full refund, or a change to booked flights
free-of-charge or with a charge called a “penalty”. Nevertheless, no matter the
fare level purchased and fare conditions, these traditional fares include the
same complimentary in-flight amenities at all levels. The passenger who
purchases such a fare which is 40% lower than another passenger sitting in the
same cabin class benefits from the same inclusions of complimentary meal,
baggage, seat assignment, etc.
And then there are traditional fares that basically offer no complimentary
amenities. These are sometimes referred to as “no-frill” fares. A passenger
who purchases such a fare can optionally book and purchase these amenities
separately at an extra cost. Airlines refer to these optional and purchasable
amenities as ancillaries.
Key Learning Point

Some traditional fares include complimentary in-flight amenities, no matter how
high or low the fare is. Other traditional fares offer no complimentary in-flight
amenities, although such amenities can be optionally purchased at an extra
cost.

12.11.2 How to Search for Traditional Fares Online

To research fares online, it is necessary to request a flight with a booking
mask, usually found on the homepage of the airline website.
Figure 12.11.1—Example of an airline website booking mask

Next, the airline responds with several flight and fare options, but only one fare
per cabin. With a mouse-click on the fare itself, or connected links, we display
more restriction and service information.
It is important for any agent to read the fare conditions closely, as there might
be additional charges in some scenarios, even though a traditional fare is
booked. In the sample below we can see, that a cancellation is free of charge
with this fare, however if the customer does not cancel his/her flight before
departure time (no-show), a charge of EUR 125.00 applies and prevents a full
refund.
Figure 12.11.2—Example of fare conditions for a traditional fare
An upgrade with more flexible fare conditions usually comes separately.
Key Learning Point

Whether searching fares online or in a GDS system, always display and read
all fare conditions and avoid making assumptions.
12.11.3 What Are Upsell Fares?

Consumers continue to be attracted to customized offerings. They appreciate
paying for only those products and services they want. With the unbundling of
seat price from extras (checked baggage/Wi-Fi/meal/headset/etc.) airlines are
able to offer new products by creating bundles from which a customer can
choose his or her ideal package of services. This new fare type is called “Upsell
Fares” however airlines have different names for them such as branded or
family fares. Currently, Upsell Fares are designed to bundle a fare and
amenities into a variety of packages at different price levels, to include meals,

seat assignment, checked baggage, award mile accrual, changes and refunds.
Some airlines also offer services such as airport lounge access or in-flight
Internet. The options are limitless.
The seat price follows the traditional hierarchical order, depending on the
booking class. Paying a higher price for a seat can typically buy more value
and a better product. But Upsell Fares enable passengers to pay one price for
more value (extras), even with the lowest fares or booking classes. Upsell
Fares add value to the price for a seat by packaging the seat with extra
features, sold at a higher inclusive price. Even discounted or budget airfares
can be promoted as an Upsell Fare by charging a little more for the ability to
change reservations or check in a bag.
Economy Class Typical Fare Conditions Typical Service Inclusions

Fare Level
No Checked Bag
No Meal & Beverages
No changes/No refunds
No Seat reservation
No Mileage Accrual
1 Checked Bag
Booking class with Free Meal & Beverages
Changes chargeable/No refunds
lowest price Seat reservation
25% Mileage Accrual
2 Checked Bags
Premium Meal & Beverages
Changes & refunds chargeable
Premium Seat reservation
100% Mileage Accrual
No Checked Bag
No Meal & Beverages
No Seat reservation
No Mileage Accrual
1 Checked Bag
higher price Seat reservation
25% Mileage Accrual
2 Checked Bags
No Checked Bag
No Meal & Beverages
No Seat reservation
No Mileage Accrual
1 Checked Bag
highest price Seat reservation
50% Mileage Accrual
2 Checked Bags
Table 12.11.2—Common fare structure for airlines with upsell products in Economy
Class

The lowest upsell fare level in any booking class purchases the seat alone. It
does not allow reservation changes, refunds for cancellation, checked bags,
advance seat selection, inflight meals and headsets, etc. Even the highest fare
level can be nonrefundable.
Passengers can then increase the same fare (booked in the same class) to pay
for a service package which may include refundability in case of cancellation,
changes to booked flights, checked bags, mileage point accrual, etc.
The passenger may upgrade to a more expensive package price that offers
more valued extras such as a premium seat with legroom assignment. The
service options offered at one upsell level tend to repeat themselves at every
higher fare level.
Figure 12.11.3—Example of upsell fare packages
Airlines display their upsell fare levels and service inclusions most often in table
format, such as in Figure 12.11.3. Although they do not always apply the same
symbols and names, the information should be simple enough to interpret. In
this example, there are four upsell fare levels, each one named in the first row
(basic, classic, flex, plus). Many upsell fare names are similar across airlines.
We understand that the “basic” fare is the lowest priced, while the “plus” fare
level is the highest as it includes many more feature services than the other
three levels.

The first column lists feature services and conditions. A checkmark in any table
cell means the service is “included” in the upsell fare named. An “X” means the
service is not included. Here is how we interpret the table values:
All fare levels allow passengers to store one hand baggage in the aircraft cabin
free-of-charge;
– The classic, flex and plus fare levels allow the passenger to check in one
bag free-of-charge and include inflight meals, but not for passengers
purchasing the basic fare level;
– Only the “plus” fare level offers complimentary access to inflight Wi-Fi;
– Only “flex” and “plus” fare levels include a complimentary access to the
airport lounge;
– Classic and Flex fare levels charge a fee to change a flight booking while
the Plus level allows changes free-of-charge;
– At the Plus fare level, passengers receive a full refund if they cancel their
ticket, while at the Flex level a partial refund is possible. Basic and Classic
fare levels are non-refundable if cancelled;
– The percentage of mileage accrual possible varies per fare level, with
100% of miles flown credited at the Plus level.
Key Learning Point

When we read Upsell Fare inclusions we see that they are structured in a
matrix and table format, featuring free or paid service package inclusions the
customer chooses. Airlines create upsell fare “packages” to meet passenger
preferences and compete for their loyalty.
12.11.4 How to Research Upsell Fares Online

Many airlines worldwide sell Upsell Fares and the numbers are still growing.
Most of the European airlines offer Upsell Fares on their domestic and
intracontinental flights, but they also started to offer them on long-haul flights.
Therefore, it is very important to research which kind of fare types or products
the airline is offering. One of our search resources is the Internet. It is
recommendable to visit the homepages of the airlines, as they accurately
display Upsell Fare charges and information.
To research airlines with Upsell Fares, we proceed the same way as we did
before by displaying the airline's website and entering trip details.
Figure 12.11.4—Example of an airline booking mask

As before, we display the flight and fare options.
Figure 12.11.5—Example of Fare offer display
At first glance, it seems that this airline only offers one fare per cabin as well,
but below the first fare, we read that there are actually four fares available in
Economy Class. With a click on the fare, we display more details. By clicking
on the Premium Economy or Business Class Fare, we can check how many
fare levels there are for those cabins.
Figure 12.11.6—Example of offered service packages

Now, we see four different “packages” for the Economy Class cabin from which
the customer can choose: Regular, Direct, Personal and Freedom. The
services included vary between the fare levels, the lowest being the least
flexible where refunds and changes are concerned with Mileage accrual and 1
checked bag included. The highest fare level, Freedom, offers the most flexible
fare conditions of all the package options and with more services included,
such as seat reservation, two checked bags and a meal.
In the Freedom package price, we see a fare of €1173, which is much more
expensive than the Premium Economy Class fare of €477. By clicking on the
Premium Economy Fare, we display the included services. If we then compare
both cabin fares, we see that they almost match. Therefore, if the customer
does not need the fare to be flexible, but wants to enjoy all the other services,
then the lowest Premium Economy class fare would be ideal for him or her.
Figure 12.11.7—Premium Economy fares displayed
So, with Upsell Fares, booking flights feels more like a-la-carte shopping, as
there are several options, and the customer only pays for those services he or
she actually intends to use. Sometimes, having so many choices can be
daunting or annoying for inexperienced or hurried travelers.
Key Learning Point

Airlines with Upsell Fares offer several fare levels in the same cabin class.
Currently, most airlines offer three different packages per fare. They vary
service inclusions such as baggage, meals and fare conditions. With these
fares, it is important to compare each of the packages, also against other cabin
classes to offer the best match for the customer.
Apply your Learning

Find several airline homepages and request a flight with them. Then compare
the fares and their details to see the differences. Which fare could be
interesting for which customer? Why? How long did it take to find the offers and
compare them?

12.11.5 How to search Upsell Products in the GDS

The GDSs offer options to search, book and ticket upsell products. However,
pricing commands do not differentiate between “normal” and “special” fare
types and they do not differentiate upsell products. Any standard pricing entry
displays all fare types. GDSs therefore vary in their pricing logic.
The various GDSs have also developed different user functionalities. The main
goal is to allow an agent quick and comprehensive entries to find all the
information he or she needs, irrespective of the complexity of the topic.
Currently there are two technical solutions: cryptic and graphic command
entries. The cryptic method consists of short, code-based commands in a very
basic, mostly two-colored working environment.
The graphic entry commands are automated buttons that perform the required
command. Responses are mostly images and the desktop environment can
consist of several colors and images.
Here is an example how the two different methods look.
Amadeus graphic solution:
Figure 12.11.8—Graphic booking mask in Amadeus

Amadeus cryptic solution:
Figure 12.11.9—Cryptic entry page (“Command Page”) in Amadeus
The most important advantage of the cryptic solution is the speed and flexibility
by which an agent can find the required information, and handle bookings, but
it requires a high amount of practice and training. The graphic solution is ideal
for inexperienced agents as the buttons and images are self-explanatory and
easy to use, but because images need to be loaded and only existing buttons
are available, speed and flexibility are reduced. Which solution is best depends
on personal preference.
To compensate for this, some GDSs mix the best of both into the desktop
environment, so it is possible to enter some cryptic commands while other
functions are available in icon/button graphic images.
Key Learning Point

The GDSs offer cryptic and graphic methods to search, book and ticket upsell
products.
Apply Your Learning

Login into your GDS and request information (e.g. flight availability) in the
cryptic environment. Then try the same with the graphic solution. Take a note
of how easy or difficult it is for you to find the required information and how long
it took you. Compare your personal pros and cons.

12.11.6 Upsell (Fare Families) in Amadeus

Amadeus offers several completely cryptic solutions, which enable agents
quick and keyboard-oriented approaches to search fares and conditions. There
are automated pricing options, using fare lists or letting Amadeus find a
matching fare to the booked itinerary. Which strategy is used depends on the
individual situation of the agent and customer. Upsell fares are categorized as
“Fare Families” in Amadeus, so they have structured their pricing entries with a
FF entry, combined with the name of the Upsell Fare spelled out.
12.11.6.1.1 The Amadeus Upsell Function

The Upsell function is an automated pricing option that shows the services and
conditions of the fare in a short, comprehensive and structured response. To
use it, we need to choose flights first, then enter “FXY” to display all possible
combinations.
Here is an example:
Itinerary:
Figure 12.11.10—Quoting with Upsell function in Amadeus
In the first part, we see the header “LOWEST” and underneath we can see that
Fare 1 would cost € 391.69 for an Adult (ADT). Below that, we can see which
Upsell Fare applies per Fare Component (FC). So, the lowest offers is
comprised of the NOBAG Upsell Fare for Segment 1 (FC1:S1) and also for
Segment 2 (FC2:S2).
Fare 2 and 3 are headlined with “Upsells”. The fare becomes more expensive
with € 415.69 for both options. The difference lies in the combinations of Upsell
Fares applied to the Fare Components. For Fare 2 we have the NOBAG Upsell
Fare on the outbound, BAG on the Inbound. For Fare 3 the Upsell Fares
display in reverse.

The number of options available differs per airline and depends on how many
Upsell fares are available for the selected flight. At the right bottom of the
screen, you might see “PAGE 1/3”. This means, that there are three pages of
fare options and you are looking at the first one. With the commands of MD
(Move Down) and MU (Move Up) you can navigate between pages.
To see which services are included, we can display the description of one of
the options, with the follow-up entry FQF and Fare Number. So, in our
example, if we want see the details for Fare Option 2, we enter FQF2

In the first line of the response, we can see the number of the Fare Component
(shown as *1:). Then we see the name of the Upsell Fare (NOBAG) and for
which Origin and Destination this fare applies (ATHLON). The fare description
is sectioned into several parts: Included, At Charge and Not Offered.
Outbound, we see that cabin baggage is included, but there is a fee for a
checked bag. In addition, seats, meals and changes are chargeable. It is not
possible to refund the fare at any given time; the addition of lounge access is
not possible on this booking. For the inbound flight, the first checked bag is
included, but seats, meals and changes are still chargeable.
If we do not find the ideal package yet, we can go through the other options one
by one with the entry FQF3, FQF4, and so on. When we have found the ideal
fare and service combination, we can save this pricing by first building a TST
(Transitional Stored Ticket), with the entry FXU plus the Fare option number.
For example, if we wanted to store Fare Option 2, we would enter FXU2 and
receive this response:
What we see now, is that we didn't choose the correct booking designators in
our first itinerary. We made the reservation with H on the outbound, V on the
inbound.
With our pricing and fare selection Amadeus has automatically updated our
booking designators to K and N. To inform us of this change, the first line of the
response above is “ITINERARY REBOOKED”. Next, we see the overview of
the fare that we sold. The column “BG” on the right side informs us that
baggage is only included on the inbound flight.
Below the Fare and Tax values, we can see that we booked the NOBAG fare
on the outbound, and the BAG fare on the inbound. With the ER (end and
retrieve) entry, we save the pricing and we can proceed with the formalities for
ticketing.
Key Learning Point

With the Upsell function, Amadeus offers a fast and comprehensive way to
quote the itinerary, research the included services, and fare conditions for
Upsell Fares.

12.11.6.1.2 Specific Upsell Fare Pricing

If we already know which upsell fare is ideal for the customer, since we know
him/her and the airline well, we can price the specific Fare Family directly. We
can enter a Fare Quote Entry adding the name of the Fare Family we wish to
quote. For example, when we wish to price the Fare Family “BAG” to include 1
checked bag, here are some options:
FXX/FF-BAG this will price the journey, with the RBD as booked
FXA/FF-BAG this will price the journey, showing alternative RBD
options
FXB/FF-BAG this will price the journey, booking the lowest fare, and
create a TST
FXP/FF-BAG this will price the journey, with the RBD as booked,
and create a TST
There are more pricing entries we can use, depending on how we wish to
continue with the PNR. For more information you can consult the HE FARE
page in Amadeus.
Let's have a look at an example:
This is our itinerary.
1 BA 631 H 05OCT 5 ATHLHR HK1 0800 1000 320 E 0 G
2 BA 640 V 15OCT 1 LHRATH HK1 0855 1435 320 E 0 G
Pricing entry:
FXX/FF-BAG
Response:
In the “BG” column, we can see that both fares now include one check bag,
and below the fare and tax values, we see that we have priced the BAG Fare
Family enter FQN followed by the fare line number, and add the rule category
of interest.

Entry for example: FQN01*PE to see penalties.

Response:
From this display, the rule condition advises that the passenger can cancel the
ticket at any time (before or after departure), but that there is no refund. The
Note adds that this rule refers to the fare component as well. With the MD
(Move Down) command, we can read the 13 pages of penalties and consider if
this fare condition matches the travelers requirement.
Key Learning Point

If we are already knowledgeable about the required Fare Family, we can also
skip the search transaction and quote the fare directly. This saves time, which
can be important for hurried or experienced customers.
12.11.6.1.3 Fare Display for Upsell Fare Families

It is also possible to search for upsell fares in the Fare Quote Display, which is
a table of all the fares the airline has on offer. In Amadeus, we can list the table
by Fare Family. We enter FQD, add the from/to cities we are interested in and
then add the sorting by Fare Family with /FF.

Here in an example.
Entry: FQDLONLIS/FF
Response:
When we request fares between cities London (LON — All airports) and Lisbon
(LIS), we see the word “Discount” at the end of the third line. This indicates that
all fares listed below offer the “Discount” service package.
When we move down, we see the next group of fares with the next higher
service option:
What is noticeable here, is that we have two fares with the RBD Y, two fares
with B, two with M and so forth. The difference between the Fare Basis codes
is the Code in the middle: for the Discount we have “DSC”, for the Classic Fare
we can see “CLC”. Therefore, by reading the Fare Basis we can also decipher
which fare belongs to which Upsell Fare group.
Be aware that not every airline uses the same name or codes for their Upsell
Fares.
Key Learning Point

There are different ways to search Upsell Fares with Amadeus. We can use the
detailed Fare Upsell function, but also request a fare directly by adding the
Upsell Fare name. With the FQD function, we can display all fares between two
cities and have them sorted by Branded Fares. The different fare levels are
coded at the center of the fare basis code.

12.11.7 Upsell (Branded) Fares in Sabre

In Sabre, there is a combination of cryptic entries and mouse-click actions to
research fares, which makes responses and information more comprehensive
and detailed, but still keeps the speed of cryptic entries. Sabre categorizes
upsell fares as Branded Fares, with code BR. Even though upsell fares include
the same services and have the same names in all GDSs, Sabre mostly uses
2-character codes to determine a specific brand.
12.11.7.1 Bargain Finder

With the Bargain Finder transaction, we can price an itinerary using upsell (or
branded) fares and receive several offers from airlines.
Itinerary:
1 TP 336U 25JUN 2 LISLGW SS1 0705 0945 /DCTP /E

2 TP 361Q 05JUL 5 LHRLIS SS1 0600 0835 /DCTP /E
Entry:
WPNI¥BRALL
Response:
In the first part of the response we can see that Sabre has priced the current
itinerary, but has found cheaper RBD options when “O” class is booked
outbound, “K” on the inbound flight (instead of U and Q).
This combination would then generate a total fare of € 157.83. Below the price,
we see that the Branded Fare name “Discount” applies outbound and inbound.
Since this is only informative, we would have to change the RBD, as Sabre lets
us know in the line below the validating carrier.

Below this first part, Sabre offers more options, if available:

BARGAIN FINDER PLUS ITINERARY OPTIONS
OPTION 1
With the cheaper RBDs we have several Branded Fare levels to choose from.
Each level is numbered (BR1-1, BR2-1...), followed by the Passenger Type
Code (1ADT, for 1 Adult) and the fare (157.83).
Since we cannot read which service features each Branded Fare level
includes, we enter the cryptic command WC*1BR and the fare level number.
In our example, we enter WC*1BR3 to display the third level.
WC*1BR3
BR3 1ADT 207.83 207.83
TOTAL FARE - EUR 207.83
/PLUS-P1-TP-D/PLUS-P1-TP-D
With this entry we see, that for both flights the Branded Fare “Plus” applies.
By hovering the mouse over the highlighted Branded Fare name, a pop-up
window opens with a short description of included services.

Figure 12.11.11—Sabre overview of included services appear by hovering over

upsell fare
With this info, we can decide if we have identified the fare with the required
service inclusions.
Key Learning Point

With the Bargain Finder, Sabre can search all fare options displaying offers
from airlines with one quick entry. By hovering the mouse over highlighted
Branded Fare links in the display, the agent can compare the services without
needing follow-up entries.

12.11.7.2 Specific Branded Fare Pricing

If we already know which Branded Fare the customer prefers, we can price an
itinerary with the Branded Fare code. First, we need to book an itinerary:
1 TP 336U 25JUN 2 LISLGW SS1 0705 0945 /DCTP /E
2 TP 361Q 05JUL 5 LHRLIS SS1 0600 0835 /DCTP /E
Then we enter our pricing command with the code for the required Branded
Fare (P1 for Plus). The structure is as follows:
Will Price (WP) + Branded Fare Pricing (BR) + (XX) Code of the Branded Fare
type
In our example, the entry looks like this:
WPBRP1
Response:
WPBRP1«
BASE FARE TAXES/FEES/CHARGES TOTAL
1- EUR296.00 126.83XT EUR422.83ADT
XT 66.00YQ 5.14PT 19.81YP 14.44GB
21.44UB
296.00 126.83 422.83TTL
ADT-01 U02PLU0A Q02PLU0A
LIS TP LON120.40TP LIS222.28NUC342.68END ROE0.863772
FARE REST APPLY
VALIDATING CARRIER - TP
FORM OF PAYMENT FEES PER TICKET MAY APPLY

ADT DESCRIPTION FEE TKT TOTAL
OBFCA - CC NBR BEGINS WITH 122088 0.00 422.83
OBFCA - CC NBR BEGINS WITH 192088 0.00 422.83
OBFCA - CC SURCHRG 0.00 422.83
OBFCA - CC SURCHRG 6.98 429.81
AIR EXTRAS AVAILABLE - SEE WP*AE

BAGGAGE INFO AVAILABLE - SEE WP*BAG ¥
Here we receive only one response, informing us of the Base Fare, Taxes and
Total Fare. Below that, we have the info ADT-01 U02PLU0A Q02PLU0A. This
shows that 1 ADT was quoted with the Fare basis U02PLU0A outbound and
Q02PLU0A inbound.
With the three letters PLU in the middle of the fare basis code, we can also
identify the Branded Fare type “Plus”.
If we need to know how much baggage is included, we can retrieve information
by entering WP*BAG.

For example, we enter:

WP*BAG
Response:
ADT-01
BAG ALLOWANCE -LISLGW-01P/TP/EACH PIECE UP TO 50 POUNDS/23
KILOGRAMS AND UP TO 62 LINEAR INCHES/158 LINEAR CENTIMETERS
2NDCHECKED BAG FEE-LISLGW-EUR62.00/TP/UP TO 50 POUNDS/23 KILOGR
AMS AND UP TO 62 LINEAR INCHES/158 LINEAR CENTIMETERS
BAG ALLOWANCE -LHRLIS-01P/TP/EACH PIECE UP TO 50 POUNDS/23
KILOGRAMS AND UP TO 62 LINEAR INCHES/158 LINEAR CENTIMETERS
2NDCHECKED BAG FEE-LHRLIS-EUR62.00/TP/UP TO 50 POUNDS/23 KILOGR
AMS AND UP TO 62 LINEAR INCHES/158 LINEAR CENTIMETERS
CARRY ON ALLOWANCE
LISLGW LHRLIS-01P/TP
CARRY ON CHARGES
LISLGW LHRLIS-TP-CARRY ON FEES UNKNOWN-CONTACT CARRIER
ADDITIONAL ALLOWANCES AND/OR DISCOUNTS MAY APPLY.
In the response text, we can read that 1 Piece (01P) of checked baggage is
permitted by both flights with all the specifics of size and weight.
Key Learning Point

In Sabre, we can price an itinerary for a specific Branded Fare directly if we
already know which the right one is. The fare quote command will include the
Branded Fare name.
12.11.7.3 Fare Display for Branded Fares in Sabre

The fare Quote Display in Sabre is by default set to show Branded Fares if the
airline offers them, and are sorted by the Branded Fare ID code and name by
code.
To request fares between two cities, we enter FQ (Fare Quote) followed by the
from/to cities, the Date and with a dash we can filter the fares to one specific
airline. Therefore, if we want fares between Washington (WAS) and New York
(NYC) for travel on 12NOV with United Airlines (UA), we enter:

FQWASNYC12NOV-UA
Response:
WAS-NYC CXR-UA MON 12NOVYY EUR

THE FOLLOWING CARRIERS ALSO PUBLISH FARES WAS-NYC:
AA AC AS B6 CO DL FL HA NW SY US WN
//SEE FQHELP FOR INFORMATION ABOUT THE NEW FARE DISPLAYS//
TAXES/FEES/U.S. PFC NOT INCLUDED-USE FT/FL/PXCHELP
SEE N*/USTAX1 AND N*/USTAX2 FOR US DOMESTIC TAX INFORMATION
ALL FEES/TAXES/SVC CHARGES INCLUDED WHEN ITINERARY PRICED
SURCHARGE FOR PAPER TICKET MAY BE ADDED WHEN ITIN PRICED
USD CONVERTED TO EUR USING BSR 1 USD - 0.86132524 EUR
UA-UAO/BE - BASIC ECONOMY
UA WASNYC 12NOVYY
V FARE BASIS BK FARE TRAVEL-TICKET AP MINMAX RTG
1 KRA4AHBN N¥R 101.00 ---- 14/1 -/ - 604
2 LRA2AHBN N¥R 101.00 ---- 21/1 -/ - 604
3 KAA4AHBN N¥X 51.00 ---- 14/1 -/ - 604
4 LAA2AHBN N¥X 51.00 ---- 21/1 -/ - 604
5 TRA2AHBN N¥R 117.00 ---- 21/1 -/ - 604
6 TAA2AHBN N¥X 59.00 ---- 21/1 -/ - 604
7 SRA2AHBN N¥R 133.00 ---- 21/1 -/ - 604¥
In the response, we first see the criteria we entered, followed by relevant

information concerning taxes and fees. Two lines above the fares we see the
information UA-UAO/BE-BASIC ECONOMY. BE is the Branded Fare type
code for “Basic Economy” is the name of the Branded Fare Group. Therefore,
all fares displayed offer the Basic Economy service package.
By hovering the mouse over the Branded Fare Code BE or name "BASIC", a
window listing service inclusions pops up:
Figure 12.11.12—Sabre overview of included services in a bundled fare, with link

to comparison table

By clicking on “Compare fare features”, we open a new window to display the

information for the different fare levels.
Figure 12.11.13—Sabre comparison table for Upsell product services
There are four fare levels for the BASIC ECONOMY branded fare type. The
lowest level is called “Blue” and is the level with the fewest service inclusions:
• carry-on baggage
• reservation changes at a fee
• expedited security
• a seat with legroom
• free snacks and soft drinks
• inflight entertainment systems

Key Learning Point

In Sabre, we encounter several strategies to search Branded Fares. With a
prepared itinerary, we can price several options, or one specific package.
The fare quote display provides quick and easy access to the same set of
information and we need only to hover the mouse on the branded fare name,
code or fare basis.
12.11.8 Upsell (Branded) Fares in Travelport/Galileo

One of the main goals of Travelport/Galileo is to make their working
environment as simple to use as possible. Therefore, when Travelport
introduced Upsell Fares, also categorized as Branded Fares, it enhanced
graphic functions to a higher level and made the entries more comprehensive.
Therefore, we have here the lowest cryptic quota of the three GDS providers.
12.11.8.1 Branded Fares in the Availability Display

In Travelport/Galileo, our research can start by requesting an availability
display. For example, we request available flights for the 25JUN from Munich
(MUC) to Hamburg (HAM).
Entry:
A25JUNMUCHAM
We get this response:
The first line shows the Date, Departure/Destination and the timeframe for
departure.
Below several flight options are listed, again consecutively numbered on the
left, followed by Origin (MUC) and Destination (HAM), Departure (0615), Arrival
(0730), Flight number (LH2058), the available RBD (J9, C9, and so forth), the
connectivity to the airline database (C = Carrier Specific Display) and the
capability of this flight for electronic ticketing (E).

In the next line, we can see «B» as in Figure 12.11 14. When we click on this
letter, we display a new window with the Branded Fare information.
Figure 12.11.14—Travelport/Galileo link to Branded Fare info in the flight

availability screen
Figure 12.11.15—Travelport/Galileo bundled Fare descriptions

We read that the Economy Light fare includes carry-on baggage and
snack/beverages. By scrolling down the menu bar on the right, we read further
information about inclusions.
When we click on “Economy Classic” on the left side, the middle box shows us
the information for that Branded Fare:
Figure 12.11.16—Travelport/Galileo fare description of the Economy Classic fare
With the “Classic”, one checked bag and a seat assignment are also included.
At the top left (above the Branded Fare names), we read the “classes of
service”. This shows which RBD (class) we can book to offer the requested
flight, but be aware that the RBD does not represent the Branded Fare offered.
This needs to be determined with a Fare Quote.
Key Learning Point

A unique feature in Travelport/Galileo is that we can research Branded Fares in
the availability display. Here, graphic displays show services included and we
quickly and conveniently compare packages. Even without an itinerary, we can
show and recommend specific flight connections and products to the customer.

12.11.8.2 Quoting Alternative Options in

Travelport/Galileo
Using cryptic commands, we can book preferred flights, then price for
alternatives (FQA). Travelport/Galileo will show the four lowest options for the
RBDs booked.
Itinerary:
1. LH 2060 T 25JUN MUCHAM HS1 0715 0830 O E TU
2. LH 2071 T 30JUN HAMMUC HS1 1515 1630 O E TU
Price Quote:
FQA
Response:
PSGRS 1 ADT
QUOTE BASIS CONSTR QUOTE STATUS FARE.EUR
1 T23FLX9G R-OW GUARANTEED 178.59 FQG
AT TIME OF TICKETING
2 T23CLS9G R-OW GUARANTEED 138.59 FQG
3 T23LGT9G R-OW GUARANTEED 118.59 FQG
1 FARE RESTRICTION MAY APPLY
1 LAST DATE TO PURCHASE TICKET: 06SEPYY
1 DEFAULT PLATING CARRIER LH
1 FARE HAS A PLATING CARRIER RESTRICTION
1 E-TKT REQUIRED
2 01 NVB25JUN/NVA25JUN
2 E-TKT REQUIRED
3 01 NVB25JUN/NVA25JUN
3 E-TKT REQUIRED
Here we can see that one adult price is available (PSGRS 1 ADT). The fare
quote table displays the fare basis code, CONSTR (Fare Construction: OW or
RT), QUOTE STATUS (how the fare was priced, here with a “guaranteed”
status) and FARE: EUR (Fare is quoted in Currency Euro). The table offers
options 1, 2 and 3 with the fare basis T23FLX9G, T23CLS9G and T23LGT9G.
The price becomes progressively lower.
Below we can see additional information about our fares, such as the last
purchase date or the validating carrier set by Travelport/Galileo. Which remark
number correlates to which fare type? All remarks with a “1” refer to fare basis
T23FLX9G, all Remarks with a “2” refer to fare basis T23CLS9G and so on.
If a combination of different fares is quoted, the table displays the fare basis as
a set of characters and a + sign. In the example, the second and third options
are fare combinations, so we only see T23+, instead of the full fare basis code.

In other displays the + is replaced by “|” or the first letter of each fare basis
code (e.g. TW if the outbound is booked in T and the inbound is booked in W).
Example:
>FQA
PSGRS 1 ADT
1 T23CLSG0 R-RT GUARANTEED 219.05 FQG
2 T23+ R-RT GUARANTEED 199.05 FQG
4 T23LGTG0 R-RT GUARANTEED 179.05 FQG
To know which Branded Fares are bundled, we can display the Fare
Components by entering FQN plus the Option Number:
Entry:
FQN2
Response:
QUOTE 2
FARE COMPONENT BASIS
1 MUC-HAM T23LGT0G RULE/ROUTE APPLIES
2 HAM-MUC T23CLS0G RULE/ROUTE APPLIES
We see that outbound, the T23LGT0G applies, and inbound T23CLS0G

applies.
To display the fare conditions for our quoted fares, we can enter FNS plus the
line number to display the categories.
Example to display Notes for Option 2:
Entry:
FNS2
Response:
MUCHAM 25JUNYY LH EUR 101.0T23CLSG0 STAY--/12MBK-T
0.APPLICATION 4.FLT APPS 5.ADV RES/TKTG 7.MAX STAY
8.STOPOVERS 9.TRANSFERS 10.COMBINATIONS 12.SURCHARGES
15.SALES RESTR 16.PENALTIES 17.HIP/MILEAGE 18.TKT ENDORSE
19.CHILDREN 20.TOUR CON 21.AGENT DISC 22.OTHER DISC
31.VOL CHANGES
We read the fare details in the first line, and then the applicable fare categories
listed, each with their own specific number. By adding the category number, we
can take a closer look at the specific fare condition. For example, if we want to
have a look at penalties (category 16), we enter:

FNS2/16 or FNS2*16
Response:
MUCHAM 25JUNYY LH EUR 101.0T23CLSG0 STAY--/12MBK-T

16. PENALTIES
UNLESS OTHERWISE SPECIFIED NOTE - RULE BFM1 IN IPRG
APPLIES
UNLESS OTHERWISE SPECIFIED
CANCELLATIONS
ANY TIME
TICKET IS NON-REFUNDABLE.
NOTE -
WAIVERS MUST BE EVIDENCED BY DEATH CERTIFICATE.
REFUND PERMITTED BEFORE DEPARTURE IN CASE OF
Here we can see that the ticket is non-refundable at any time.

If we want to use the graphic functions in Travelport/Galileo, we can directly
jump to the fare conditions by clicking on the highlighted number of the fare
option, then click on the Fare basis we are interested in, or immediately store
the fare by clicking on the Fare basis name code.

1 T23CLSG0 R-RT GUARANTEED 219.05 FQG
4 T23LGTG0 R-RT GUARANTEED 179.05 FQG
With most airlines, it is possible to combine different Branded Fares per

direction. This might make sense if for example a customer plans to fly without
baggage to the destination, go shopping there and bring back baggage.
Alternatively, if a business traveler has a tight schedule on one of the flights
and no time to drop or pick up their baggage.
Key Learning Point

By quoting with alternative options, we display the four lowest Branded Fare
options. With follow-up entries, we can display fare conditions and choose the
ideal combination for the customer.
12.11.8.2.1 Specific Branded Fare Pricing in

Travelport/Galileo
If we already know which Branded Fare we want to sell, we can price that
category directly. We use the Entry FQ and then add the category of interest.
The formats and categories are different between airlines, so this technique
requires a bit of experience with the airline's upsell fare products.
First, we need to book an itinerary:
1. TP 336 T 25JUN LISLGW HS1 0705 0945 O E TU
2. TP 371 W 05JUL LHRLIS HS1 0810 1050 O E FR

Then we can create a fare quote entry (FQ) and add the requested pricing
format for the chosen Branded Fare. If our customer wishes to check one bag,
we need to quote the Branded Fare product “Classic”. For this airline, we can
do that by adding -: CLASSIC to the fare quote entry.
Entry: FQ-:CLASSIC
Response:
BKD:CLASSIC-BF3/CLASSIC-BF3
ADDITIONAL BRANDS INFO VIEW
>FQ-:CLASSIC
PSGR FARE TAXES TOTAL PSG DES
FQA 1 EUR 149.00 109.07 258.07 ADT
GUARANTEED
GRAND TOTAL INCLUDING TAXES **** EUR 258.07
**ADDITIONAL FEES MAY APPLY**SEE >FO·
**CARRIER MAY OFFER ADDITIONAL SERVICES**SEE >FQ/DASO·
ADT PRIVATE FARE SELECTED
ADT SUM IDENTIFIED AS UB IS A PASSENGER SERVICE CHARGE
ADT LAST DATE TO PURCHASE TICKET: 25JUNYY
ADT DEFAULT PLATING CARRIER TP
ADT FARE HAS A PLATING CARRIER RESTRICTION
ADT E-TKT REQUIRED
BAGGAGE ALLOWANCE
ADT
TP LISLON 1PC
BAG 1 - NO FEE UPTO50LB/23KG AND UPTO62LI/158LCM
BAG 2 - 62.00 EUR UPTO50LB/23KG AND UPTO62LI/158LCM
VIEWTRIP.TRAVELPORT.COM/BAGGAGEPOLICY/TP
TP LONLIS 1PC
BAG 1 - NO FEE UPTO50LB/23KG AND UPTO62LI/158LCM
BAG 2 - 55.00 GBP UPTO50LB/23KG AND UPTO62LI/158LCM
VIEWTRIP.TRAVELPORT.COM/BAGGAGEPOLICY/TP
CARRY ON ALLOWANCE
TP LISLON 1PC
BAG 1 - NO FEE CARRYON HAND BAGGAGE ALLOWANCE
TP LONLIS 1PC
BAG 1 - NO FEE CARRYON HAND BAGGAGE ALLOWANCE
BAGGAGE DISCOUNTS MAY APPLY BASED ON FREQUENT FLYER STATUS/

ONLINE CHECKIN/FORM OF PAYMENT/MILITARY/ETC.
«Display Rules»
<+CALC>
At the top of the response we can see which Branded Fare has been applied to
this itinerary. The second line shows us that there might be additional info
about Branded Fares. By clicking on <View>, the same graphic window opens
that we already saw in the availability display:

Figure 12.11.17—Fare conditions and service inclusions
The only information displayed is for the Branded Fare category requested.
Here is an opportunity to verify all inclusions one last time to ensure nothing is
overlooked. We can close the window by clicking on the “Close” button at the
bottom right of the screen or the X at the top right corner.
The rest of the cryptic response details that we can offer Passenger (PSGR)
Number 1 a fare of € 149 plus taxes of € 109.07, resulting in a total cost of €
258.07 for an Adult (ADT). The Grand Total amount can vary from the total
amount if the airline charges additional fees. Currently, this happens mostly if a
credit card fee applies. By entering FO or clicking on it, we can check how high
that charge would be.
By clicking on the fare, the same pop-up window with the upsell/branded fare
information displays again, so we can either click “View” or the price in the
“Grand Total” line.
Further down, we see that the one checked bag with maximum weight of 23kg
is included. At the bottom, we see two links, «Display Rules» and <CALC+>.
By clicking on the first we can then select the Fare Basis code, and display the
Fare Notes are displayed. With the second link, we can add several flight
options to a calculator and compare the quotes. This makes sense if the
customer is undecided which flight to book.
If we enter ER (end and retrieve) now, the quoted fare is saved to the PNR and
is redisplayed, so we can continue to add information to our booking.

Key Learning Point

Travelport/Galileo offers a high graphic ratio in their desktop environment. The
search for service inclusions in Branded Fares starts in the availability display.
It is also possible to price with alternatives or a specific Branded Fare after
booking the itinerary.
Study Check 12.11
1. Can we identify a traditional fare by the seat reservation category?

(a) Yes, of course
(b) No, since other fare types may also charge for seats, or offer them free
of charge
(c) Yes, but only if we compare exit row seats.
2. Which type of meals does a traditional fare offer?

(a) A great variety of meals are offered, taking into account special dietary
needs
(b) A set of standard meals are offered, special meals can be ordered at
additional charge
(c) A great variety of meals are offered, but must always be ordered a
minimum of 75 hours in advance.
3. What is the traditional set of services included in a traditional fare?

(a) 1 piece of cabin baggage, meals free of charge, seat reservation for a
standard seat, mileage accrual
(b) 1 piece of checked baggage, 1 meal free of charge others chargeable,
seat reservation, mileage accrual
(c) 1 piece of checked baggage, meals free of charge, seat reservation,
mileage accrual
4. How many upsell products are generally available in the same booking
class for traditional fares?
(a) Minimum of two
(b) One
(c) Depends
(d) Three
5. Should an agent check fare conditions if he or she is about to book an

Upsell Fare?
(a) That depends on the airline
(b) Yes, always
(c) Only if the customer wants to know

6. How are Upsell Fares constructed?

(a) A fare plus additional services booked individually
(b) A fare plus additional established service package
(c) Branded Fares only cover the service package
7. Does a higher-level Upsell Fare normally allow a change to the booking?

(a) Yes, since the price is so high, this condition is standard
(b) Only if the customer has chosen the fare package including that
service
(c) No, as airlines generally do not offer a package with that service
8. How can we identify whether an airline offers Upsell Fares when we look at
their website homepage?
(a) The airline announces it on their homepage
(b) Every airline offers a separate link where the product is explained
(c) If the airline offers more than one fare for the same cabin and the
service differs
9. Would you recommend comparing Branded Fares for several cabins?

(a) No, as higher cabins have a tendency to be much more expensive
(b) It depends if my customer has asked for that information
(c) Yes, as a higher cabin might offer a lower fare level but more or equal
services
10. What is often required to research Branded Fares in the GDS?

(a) An Itinerary
(b) The customers full name and date of birth
(c) A flight timetable
11. What does the command FXY do in Amadeus?

(a) It prices the our itinerary and displays all Fare Family options
(b) It displays the fare conditions and service inclusions per Fare Family
category
(c) It displays a table with all fares offered by the airline, sorted by Fare
Family categories
12. How do we quote an itinerary for a specific Fare Family in Amadeus?

(a) FXX/BASIC
(b) FFX/FF-BASIC
(c) FXX/FF-BASIC
(d) FXX/FFBASIC

13. How can we display the Sabre fare table to find the names of the Branded
Fares?
(a) FQWASNYC12NOV-UA
(b) FQ-UA/WASNYC12NOV
(c) FQ12NOV/WAS-UA-NYC
14. When should we use Sabre's Branded Fare Pricing command?

(a) To research which Branded Fares are offered for a specific airline
(b) To quote the cheapest Branded Fare
(c) When we already know which fare and service package is ideal for our
customer
15. The fare display default in Sabre displays Branded Fares if an airline offers
them. TRUE or FALSE?
(a) True
(b) False
16. What fares does the Sabre Bargain Finder display?

(a) The cheapest fare for our itinerary only
(b) All available fares for our itinerary only
(c) All available fares for our itinerary and alternative routings
17. Is it possible to combine different Branded Fares per direction in

Travelport/Galileo?
(a) Yes, but then the services might also differ per direction
(b) No, the chosen Branded Fare is always booked for both directions
(c) Only if two different airlines are booked in the same itinerary
18. Which option is unique to Travelport/Galileo?

(a) That we can start a search for Branded Fares in the availability display
(b) That we can quote a specific Branded Fare for the entire itinerary
(c) That we can quote the itinerary and receive several alternative
Branded Fare options
19. When comparing Branded Fares in Travelport/Galileo what should we

always do?
(a) Check if Wi-Fi is included
(b) Check the fare conditions in general
(c) Check the services the customer is interested in

20. When we enter FQA in Travelport/Galileo, what will the response include?
(a) The Fare conditions and service inclusions
(b) All currently available fares for the current itinerary
(c) The four lowest fare options for the current itinerary

In this Unit, you learned that airlines offer two different fare structures:
“traditonal” and “Upsell Fares”. They differentiate from each other by their fare
conditions and service inclusions. Traditional fares are organized in a
hierarchical structure from low to high and their fare conditions become more
flexible as they get more expensive. Upsell Fares are organized in a matrix
structure as service inclusions that also influence fare levels (Units 12.11.1 and
12.11.3).
You took the next step by learning how to search and identify an airlines' fare
structure through their own homepages. Normally, if only one fare displays for
a specific cabin, and there are no additional service packages offered, you can
identify a traditional fare structure. If there are several fares on offer for the
same cabin, you are looking at an Upsell Fare (Units 12.11.2 and 12.11.4).
In most travel agencies GDSs are used to search flights and their fares, so you
studied the different methods to do that. One of the key differences when
searching in the GDS is the different amount of cryptic vs. graphic entry
possibilities. Amadeus offers mostly cryptic solutions (Unit 12.11.6), Travel-
port/Galileo offers mostly graphic solutions (Unit 12.11.8), whereas Sabre has
a mix of both (Unit 12.11.7). You learned three approaches to research fares:
• Pricing entries with a comparative function (e.g. Upsell function for
Amadeus, Bargain Finder for Sabre, FQA for Travelport/Galileo)
• Pricing entries with a specified Upsell Fare (e.g. FF- for Amadeus, BR for
Sabre, FQ-: for Travelport/Galileo)
• Displaying fare tables (FQD for Amadeus, FQ for Sabre and FD for
Travelport/Galileo) for an overview of their structure and to identify the
names of the upsell packages (Unit 12.11.5).
In conclusion, it is very important for any agent to learn about the fare products
offered by an airline, as there are several options and combinations available,
each with their own unique set of services. There is the option to choose from
several different upsell packages, only paying for what the passenger needs, or
enjoy all-inclusive services of traditional fares without having to choose in
advance. With airline websites and the GDS as resources, the agent has
powerful tools to offer the right product combination to the customer, in an
efficient and comprehensive way.
Apply Your Learning

Request flights via your GDS and start your research with an automatic pricing
entry. Then compare the fares by their included services and penalties. How do
the Upsell Fares compare between the airlines if you look at price vs. included
services. Which airline would you say offers more comfort?

12.12 Credit Cards
• Differentiate between the travel agent’s collect versus pass-through role in

card payment (Unit 12.12.1).
• Define and correctly use common credit card payment terms
(Unit 12.12.2).
Unit Learning • Identify commercial credit card brands and codes (Unit 12.12.3).
Objectives • Explain the Universal Air Travel Plan (UATP) as a travel payment option
you will be able to: • State two methods for processing credit card payment (Unit 12.12.5).
• Apply guidelines for acceptance of credit card payment (Unit 12.12.6).
• Employ credit card security features (Unit 12.12.7).
• Minimize the risk of credit card fraud (Unit 12.12.8).

Airlines and travel agents offer passengers the privilege of paying for airline
tickets and other traffic documents by personal credit card. Paying by credit
card is a widely accepted form of payment. However, it comes with a certain
amount of risk for the merchant. The risks in accepting credit card payment can
be controlled by following industry best practices in card acceptance pro-
cedures at the point of sale. These procedures will help reduce the risk of credit
card “chargebacks” that are costly for travel agencies.
In the majority of cases, the travel agent selling air transportation will submit
the customer’s personal credit card as the form of payment. The GDS systems
that agents use to create air bookings will process payment on the airline’s
merchant ID number rather than the agency’s merchant ID number. In other
words, the airline receives payment directly from the customer’s credit card
acquirer. However, if the customer decides to refuse the credit card charge,
refusing to pay, the travel agency remains responsible for the entire amount
charged.
As a general rule, travel agents absorb all risks for credit card sales received by
phone, e-mail or Internet. If you work for an IATA accredited travel agency, you
should also follow the procedures set out in the rules and regulations for the
acceptance of credit cards for the payment of tickets in the “Travel Agents
Handbook”, Resolution 890 “Card Sales Rules”.
Unit 12.12: Credit Cards 1051

12.12.1 Collect versus Pass-Through Model

Collecting payment in the form of personal credit card, either online or in
person, is quite common in the travel industry. Travel agencies are intermediar-
ies. They resell their suppliers’ products and services, such as airline seats and
hotel rooms. There are two models in place for travel agency card payment
collection.
The Collect Model

In the collect model, travel agencies collect credit card payment from
customers, hold the funds in trust and remit the payment to suppliers at a later
time.
This is called the “collect model”, where the customer pays the agency who
pays the supplier, such as a travel insurance company, at a later time.
Figure 12.12.1—The travel agency “collect” credit card payment model
To collect credit card payment from customers, the travel agency must be an
approved merchant. Travel agencies can only offer credit card purchase
facilities to their customers if a Merchant ID number is granted by an Acquirer.
The Acquirer’s job is to transmit card data, requesting approval for the credit
card payment transaction. Agencies pay administrative fees to the Acquirer for
every credit card sale transaction.
The greatest risk for the merchant (agency) is the credit cardholder’s
(customer’s) ability to refuse (chargeback) the credit card charge when the
card network bills the amount to the credit cardholder (customer).
A chargeback is a customer’s refusal to pay for a billed amount reported on the
credit card statement due to:
• fraudulently or falsely purchased goods or services
• unauthorized use of the customer’s credit card
• stolen credit card
In such cases, the credit card company has the right to reverse the billed
amount and reclaim any funds paid to the merchant. If the merchant is the
airline, but the sale transaction is made by the travel agency, the travel agency
continues to be liable for remitting funds for the transaction to the airline in the
case of a chargeback.
The Pass-Through Model

It is more common for the travel agency to simply pass the customer’s personal
credit card information to the ticketing airline and for the ticketing airline to act
as the merchant. In this model, the travel agency only passes-through the
customer’s personal credit card information in the booked reservation and does
not collect any money.

Figure 12.12.2—The travel agency “pass-through” credit card payment model
The airline receives the money from the Credit Card Company or acquirer.
Nevertheless, the travel agency remains liable for payment. If the agency
customer decides to refuse to pay for the airline ticket, or the credit card is
fraudulent, the airline receives no funds and debits the travel agency for the
ticket value. Consequently, even when the airline is the merchant, travel
agencies must exercise caution in both payment models and reduce the risk of
having to pay suppliers for travel sold when the credit card payment transaction
fails.
Key Learning Point

The greatest risk faced by the agency is the customer’s ability to refuse
(chargeback) the credit card billing after the airline ticket purchase is made,
whether the agency functions in the collect or pass-through model.
12.12.2 Key Card Payment Terms and Definitions

What is a payment (credit) card?
A physical (plastic) card with a unique account number, displaying a unique
number representing the card owner’s identification, allowing the owner to
purchase goods such as airline tickets or other travel services. With a credit
card, the consumer can purchase an airline ticket or other travel service now
and pay later.
Let’s illustrate and describe a simple credit card purchase and payment
process.

Figure 12.12.3—The credit card payment process and terms
The consumer applies for and receives a credit card from a bank that the
consumer does business with (Issuer). The consumer (Cardholder) purchases
travel from a retailer such as a travel agency or travel supplier (Merchant) and
presents the card for payment. The Merchant transmits the Cardholder’s card
details for authorization to the Acquirer. The Acquirer forwards the transaction
and card data to the Issuer. The Issuer verifies that the card is valid, authorizes
the amount, bills the cardholder for the transaction and transfers the funds to
the Acquirer via the card payment scheme.
A normal credit card payment scheme (system) involves four parties:
• Acquirer (the selling vendor’s bank)
• Cardholder (the customer paying by credit card)
• Merchant (the vendor such as travel agency or airline)
• Issuer (the bank or financial institution issuing the credit cards).
Let’s define their roles.
Acquirer
This is the Merchant’s (travel agency/airline) bank which perform an important
role in payment processing and settlement:
• approves a Merchant for card payment acceptance, assigning a unique
Merchant ID number;
• sets up the Merchant with infrastructure (card readers or terminals) that
collect card data;
• presents a request for purchase authorization to the card issuing bank
(Issuer);

• forwards the authorization response to the Merchant;

• collects from the credit card issuer;
• settles approved card payment transactions by depositing the funds into
the merchant’s account.
Cardholder
This is the person whose name appears on the plastic credit card and who is
the only person entitled to use it to make a purchase.
Merchant
The vendor (travel agency or airline) that sells goods and services and:
• accepts credit card payment;
• initiates the authorization request to the Acquirer;
• receives the financial settlement (payment) from the Acquirer.
Issuer
A financial institution, such as a bank, that:
• issues credit cards to consumers displaying the card’s brand;
• maintains the card use terms in a contract with cardholders;
• approves or declines the transactions;
• bills and collects the transaction amount on the cardholder’s account;
• settles and deposits the transaction amount into the merchant’s account.
The Issuer validates the following when looking to approve a card payment
request:
• Is the credit reported as lost or stolen?
• Does the Cardholder’s credit (spending) limit cover the transaction
amount?
Card payment scheme

A credit card scheme is the relationship between the network of issuers,
cardholders, acquirers and merchants. In some instances, the same financial
institution performs the role of issuer and acquirer.
Key Learning Point

The credit card payment scheme involves four parties. The acquirer sets up the
agency or airline as a merchant and ensures the merchant receives the funds
for approved transactions. The issuer issues the credit card to a cardholder,
bills and collects from the cardholder and settles through the card payment
scheme. The card payment scheme links the issuer and acquirer so that they
can fluidly exchange card data.

12.12.3 International Credit Card Brands

Each credit card features a unique account number that begins with a 2-letter
code representing a credit card brand.
American Express AX
China UnionPay UP
Diners Club DC
Discover Card DS
Japan Credit Bureau JC
MasterCard CA
Visa International VI
Table 12.12.1—Credit card codes of major card brands
Figure 12.12.4—Sample international payment cards

Key Learning Point

Credit card account numbers begin with a 2-letter code representing the credit
card brand, such as AX for American Express, CA for MasterCard and VI for
Visa.
12.12.4 Universal Air Travel Plan

UATP is a payment card for business travel. UATP card purchases are limited
to the sale of travel products and services. UATP cardholders are companies
with business travel activities and costs. UATP’s card payment solution reports
detailed travel data to its corporate cardholders, with detailed itinerary and
transaction data. Cardholders benefit from the UATP travel data to manage
and budget their business travel costs, make decisions about their employee
travel programs and negotiate with preferred suppliers.
UATP Issuers
The world’s airlines own UATP and airlines issue UATP cards. Therefore,
airlines are UATP issuers and are responsible for authorizing UATP card
transactions. Airlines issue UATP cards to cardholders and authorize mer-
chants to accept the UATP payment card. Hence, UATP cards are airline
branded (featuring the issuing airline’s name and logo).
UATP cards can be co-branded with another credit card brand such as
MasterCard and Visa. Such cards display both card brand names and logos. In
such cases, UATP settles charges for air and rail transportation while the
partner card brand settles all other travel charges.
UATP Merchants
Airlines, travel agencies and rail companies are UATP merchants, able to
accept the UATP card as form of payment. The UATP card can be accepted to
purchase air, ground and water transportation (cruise) as well as lodging
(hotels).
UATP Cardholders
UATP cardholders are companies under contract with one or more UATP
airline issuers to use the UATP card as form of payment for the purchase of air
transportation and other approved travel industry products or services from
Merchants. Cards carry a company or consumer name as well as standard
credit card security features.
UATP Acquirers
A payment solution company can be a UATP acquirer. IATA is a UATP card
acquirer for IATA member airlines and IATA Accredited Travel Agencies.

Figure 12.12.5—Sample UATP cards
Key Learning Point

Universal Air Travel Plan (UATP) is a business travel payment solution, owned
by airlines, accepted by travel agent merchants and designed for cardholders
with business travel activity and costs.
12.12.5 Card Payment Processing Methods

The first step in a sales transaction paid by credit card is to communicate the
credit card information to the acquirer. How does the travel agent or airline do
this?
There are generally two ways to transmit critical credit card data for a charge
authorization.
1. Point-of-sale terminal
2. Card reader
Point-of-Sale (POS) Terminal

Point-of-sale terminals can perform sales transactions and communicate with
credit card acquirers. The Global Distribution System (GDS) is a POS terminal
for the purchase of common travel products and services.
The travel agent manually enters the customer’s credit card information into the
Form of Payment area of a reservation (PNR) ticket mask. The agent enters
the credit card’s 2-letter code followed by the credit card number and expiry
date. Often the 3-digit Card Validation Code (CVC) displayed on the back of a
credit card is also required. The charge is approved electronically within the
GDS terminal and printed on applicable documents.

Figure 12.12.6—Example of credit card number entered in the PNR form of

payment box
Chip or Magnetic Stripe Card Reader

When the Point-of-Sale terminal does not integrate online communication of
data to credit card acquirers, the customer’s credit card must be swiped on a
card reader or inserted into a chip reader attached to a Global Distribution
System.
Figure 12.12.7—Chip card reader
The card reader collects necessary credit card authentication information from
the magnetic stripe on the back of the card or from a chip on the card and

transmits it electronically to the credit card acquirer requesting charge

approval. A response is received within a few seconds and displayed on the
card reader window. The response can be “Approved” or “Denied”.
Other messages or instructions can be displayed on the card reader window
such as “Call for approval” or “Hold Card” if the card is suspected to be lost or
stolen.
Key Learning Point

The travel agency’s GDS terminal is a point-of-sale terminal that makes
reservations and electronically processes sales transactions. They are fully
integrated with credit card acquirers to secure a credit card charge approval
before issuing an airline ticket.
12.12.6 Guidelines for Airline Product Sales

The acceptance of credit cards for payment of airfares and other airline
services is governed by contracts between each issuing airline and the credit
card company. This is because the airline is the merchant when the customer
pays by credit card. Nevertheless, travel agents are fully and solely responsible
for all credit card transactions.
Travel agents selling airline products and services may accept a credit card as
a form of payment, as long as the issuing airline accepts the card for payment.
When a travel agency processes a credit card payment transaction, it conducts
a thorough check of the following:
1. Is credit card form of payment accepted in the country of purchase?
In some countries the acceptance of any credit card payment is not
permitted due to monetary or exchange control restriction.
2. Does the validating (issuing) airline accept the credit card? It is
essential to know the conditions imposed by each airline before accepting
a credit card payment. Most GDS systems are equipped with a Carrier
Credit Card Acceptance Chart which defines each airline’s acceptance of
different types of credit cards.
Figure 12.12.8—Sample GDS Carrier Credit Card Acceptance Chart

The chart identifies limitations that each airline imposes on credit card
payment acceptance. In Figure 12.12.8, airline XX communicates the
following limitations:
AX (American Express) — PC means accept this card
CB (Carte Bancaire) — RJ means reject this card or do not accept
HD (Home Depot) — PC* means accept this card conditionally, with
conditions to be advised by contacting the airline.

The conditions for acceptance of credit cards may also vary from one
airline to another. For example, some airlines require that 25% or more of
the booked flight segments are routed on their services. Others require that
the longest sector must be booked on their airline. Airlines can impose a
written contractual agreement with travel agencies that commits them to
apply the airline’s credit card acceptance policies and procedures. Airlines
will otherwise reject the payment transaction and debit the travel agency’s
bank account directly for the sale.
3. Has the credit card been physically altered or damaged? This can only
be checked if payment is made in person and the card can be visually
inspected. Magnetic stripes and card chips can become demagnetized or
damaged. Agents must refuse to accept a card when the card reader
cannot read information when swipes or inserted into a chip reader.
If the credit card payment for an airline ticket purchased at a travel agency
results in a chargeback, the airline will collect the lost airline fare from the travel
agency if the agent failed to follow instructions set by the ticketing airline for the
credit card sale.
Key Learning Point

Because the airline is the merchant when the agency customer pays by credit
card, travel agents can only accept credit card payment from their customers
that complies with the issuing airline’s accepted cards and conditions. A
common condition is that a portion of the itinerary is booked on the issuing
airline’s flights.
12.12.7 Standard Credit Card Security Features

As fewer travel customers purchase travel in person, credit card companies are
making it safer for travel agencies to accept credit card payment online, on the
telephone or via email. All credit cards come with standard security features.
Whether the travel agency or airline is the merchant, it is important to verify
these features to minimize the risk of accepting an invalid or stolen card.
Expiration date: Every card displays an expiry date on the front. An expired
card cannot be authorized for payment.
Signature panel: The back of credit cards carry a signature panel. Cards must
be signed by the cardholder. Merchants processing payment face-to-face with
the customer should refuse to accept cards if the signature box is empty.
General procedures for accepting credit card payment require the cardholder’s
signature on a credit card charge receipt. IATA requires Accredited Agents to
process the credit card on an electronic point-of-sale chip terminal at the time
of the ticket sale transaction in order to prove the physical presence of a card.
Alternatively, a credit card imprint and signed credit card charge form can be
submitted as evidence of cardholder authorization in responding to a charge-
back claim.
The signature must be checked against the signature on the credit card.
However, a signature requires the physical presence of the cardholder. But the
physical presence of a cardholder is not always convenient and limits the
markets an agency can sell to.
All airline tickets issued against a credit card payment must be authorized by
the cardholder (the purchaser). When a physical cardholder signature is not
possible, a clear written arrangement can be set up between the credit card
cardholder and the travel agency. Signature-on-file agreements are contracts
between the travel agency and the cardholder that enable agents to charge the

card for a transaction on behalf of the absent cardholder. Such agreements

should include the following provisions:
• Definition of agreement’s duration and end date;
• Definition of the terms of termination by each party;
• The cardholder’s, name, card type, account number, expiry date, full
contact information, billing address;
• A requirement for amendments to the agreement to be made in writing;
• Names and sample signatures of all parties authorized to make purchases
under the agreement;
• Approval codes to be obtained for all sales regardless of the purchase
value;
• An imprint of the credit card with the cardholder signature to be kept in the
agency’s files can be optionally required;
• A copy of the cardholder’s proof of identity, such as a passport, at the time
of signing any such agreement.
The travel agency is only protected from liability for a chargeback if it obtains
the:
1. cardholder’s physical signature or a signature-on-file agreement;
2. credit card imprint if the Internet and phones lines are down;
3. issuer’s approval code.
Security Code: The card security code provides merchants with increased
protection against credit card fraud. This three-digit code printed on the card
near the signature stripe or on the front after the account number is required for
processing any “card not present” transactions, for example when credit card
information is collected online or by telephone. This code is also known as the
CVV (Card Verification Value) or CSC (Card Security Code). The code is
unique to each credit card. Terminals and readers cannot electronically read a
security code. It can only be read by the physical eye because it is not
embossed on the front of the card like the credit card number, nor is the code
included on the credit card magnetic stripe or chip. The agent taking card
payment details by phone or online must ask for the security code. Credit card
companies and GDSs now provide a manual address verification service (AVS)
where the cardholder’s billing address can be verified. A credit card thief or
fraudster may be able to supply the card’s security code, but may be unable to
state the genuine cardholder’s billing address. If the billing address given by
the customer does not match with the one filed with the credit card company,
then the sale is a risk for the travel agency.
Card Limits: The Issuer imposes a maximum credit or spending limit on every
card issued. Credit card issuers track each cardholder’s purchase habits.
Requests for charge approvals can be refused because the purchase item or
amount is unusual for the cardholder. If the Issuer receives a request to
approve an abnormal purchase for the card—such as for a large amount or in a
purchase in a different country from the cardholder’s billing address—the
issuer may refuse approval and take steps to verify if the purchase is authentic.
Approval Codes: Every purchase on a credit card must be approved by the
Issuer. If approved, the Issuer returns an approval response and code. If the
cost of an airline ticket purchase exceeds the card’s spending limit, the Issuer
will reject the transaction and the customer must use another form of payment.
An approval does not absolutely guarantee payment for the transaction as the
cardholder may refuse or dispute the credit card billing later. The approval code
only confirms that at the moment of purchase that credit for the specified

amount is available and the card has not been claimed lost or stolen. When the
credit card and its cardholder are not physically present at the time of a sales
transaction, the travel agent is fully responsible for the amount of a sale paid by
credit card.
Key Learning Point

The card payment industry designs the card with standard security features to
minimize the risk of fraud to merchants by equipping the card with an expiry
date, a cardholder signature and a security code. Additionally, card issuers
who approve card transactions set a maximum credit limit per card and must
approve each card transaction use.
12.12.8 Credit Card Fraud Prevention

Credit card fraud is the criminal use of a lost or stolen credit card or stolen
credit card information to make a purchase. Those who commit credit card
fraud obtain unauthorized goods and services without paying for them or they
withdraw unauthorized funds from the credit card account. With growing trends
in online purchases paid by credit card, the cost of credit card fraud is in the
billions of dollars annually. Agents are liable for processing a fraudulent credit
card purchase, and will be charged-back if the cardholder refuses to pay the
billing later.
Signs of Potential Credit Card Fraud

Any travel agency customer can become a suspect for committing credit card
fraud. However, there is additional concern when the customer is new to the
agency and not purchasing travel by appointment or in person. The risk of
fraud is always higher with one-time customers.
The following are potential signs of attempts to commit credit card fraud and
cause the agent or airline to perform extra verifications.
• The purchase is from a new customer on a mobile telephone who cannot
provide a business or home telephone number.
• A customer on the phone or sending an email is not able to provide the
card security code.
• The purchase is made by a customer who offers a photocopy of the credit
card. Do not accept a copy of a credit card as added security because the
credit card details can be manually modified.
• The customer reserves in person but cannot present the credit card to
complete a purchase transaction. If the cardholder is present, you must
follow face-to-face authorization procedures.
• The customer does not seem to be worried or interested in the price of the
ticket.
• The customer is only interested in reserving a one-way journey.
Travel agency staff must be sensitized to recognize potential signs of
fraudulent credit card use by customers.
Preventing Credit Card Fraud

There are a number of ways to prevent processing unauthorized credit card
purchases that result in a financial risk for the agency or airline. If you suspect
that a customer may be using a fraudulent or stolen credit card:

• Request a secondary identification with a photo such as a driver’s license

or passport. When verifying any identification, look for indications that it
has been altered in some way. The person with the stolen credit card may
also have stolen IDs or be using a false identification.
• Compare signatures. You should compare the signed credit card receipt to
the signature on the credit card, and to that of the secondary ID. The
signed names must be a match in similar handwriting.
• Look at whether the signature on the card is fresh, or has been smeared.
This may indicate that the card is stolen, and the criminal has changed the
signature on the back of the card to his or her own.
• Be careful when accepting credit card numbers by phone. Request the
card security code when the credit card is not present. It is also good to
request the card’s billing postal code to further validate the authenticity of a
credit card.
• Contact the customer by telephone to confirm the sale. Avoid calling a
mobile number and try calling a business or home line telephone number.
When credit card issuers refuse to approve a credit card purchase, it is often
because the card has been reported as lost or stolen or the maximum credit
card purchase limit is exceeded. If a card-present charge approval is denied by
the card issuer, you should try to keep the card. However, safety concerns may
not permit you to retain possession of the credit card. If you cannot retain
possession, you can report a description of the fraudster to the card issuer or
police authorities.
Key Learning Point

The risk of fraud increases when processing a card payment from a new
customer purchasing a one way fare and who cannot present the physical card
or provide the card security number by telephone. Request the card security
number and telephone the customer’s business or home number.
Study Check 12.12

1. Which tool integrates sales transactions with the transmission of credit
card information for authorization to charge?
(a) An imprinter
(b) A point-of-sale terminal
(c) A card reader
(d) A chip

2. Which is TRUE for the pass-through model in card payment transactions

between agencies and airlines?
(a) The agency collects and holds the funds in trust
(b) The agency is liable for fraudulent card payments
(c) The agency acts as the approved merchant
(d) The agency receives the funds from the acquirer
3. What is a chargeback?
(a) An administrative fee paid to the acquirer
(b) A approved credit card purchase transaction
(c) A cardholder’s refusal to accept a billed charge
(d) An unique ID number assigned to selling merchants
4. Which party is responsible for approving a vendor for credit card payment
acceptance?
(a) Issuer
(b) Acquirer
(c) Cardholder
(d) Card brand
5. Which is a common condition set by issuing airlines for accepting credit

card as a form of payment?
(a) Only if part or all of the itinerary is booked on the issuing airline
(b) Only if the credit card is issued in the country where travel begins
(c) Only if the travel agency is an approved merchant for the credit card
(d) Only if the travel agency processes a card-present transaction
6. Which is TRUE for the pass-through credit card payment model for travel
agencies?
(a) The travel agency is protected if the customer refuses the billing
(b) The travel agency must be an approved merchant for the card
(c) The travel agency collects credit card details from the customer
(d) The travel agency remits funds to airline suppliers after collection
Identify the two-letter code of the following credit cards:
7. Visa International:
8. MasterCard:
9. American Express:
10. Discover Card:

11. Who approves the credit card charge?

(a) Issuer
(b) Acquirer
(c) Card brand
(d) Merchant
12. Who credits the merchant’s account for the credit card purchase?
(a) Cardholder
(b) Acquirer
(c) Processor
(d) Issuer
13. What role can the vendor play in the credit card payment process?
(a) Cardholder
(b) Acquirer
(c) Issuer
(d) Merchant
14. Which is TRUE?

(a) A credit card does not have an expiry date
(b) A credit card does not limit spending
(c) A credit card is acceptable in every country
(d) A credit card can be used to buy airline tickets
15. What does the credit card transaction approval code guarantee?
(a) The credit card is genuine and not a stolen card
(b) The amount charged is within the card’s maximum limit
(c) The charge cannot be refused by the cardholder
(d) The charge form with the cardholder signature is not required
16. How many digits do most credit card security codes display?
(a) 2
(b) 3
(c) 10
(d) 11
17. Which is a good practice to minimize the risk of accepting a fraudulent

credit card?
(a) Do not accept credit card as form of payment from new customers
(b) Contact new customers on their business telephone numbers
(c) Take and file a photocopy of a new customer’s credit card
(d) Insist on serving new customers by telephone or email

18. Which represents a standard credit card security feature?

(a) The card features a date of issue
(b) The card needs a signature-on-file
(c) The card limits how much can be spent
(d) The card displays a purchase approval code
19. What is increasing the risk of credit card fraud for travel agencies and
airlines?
(a) Increased distribution of plastic credit cards
(b) Increased demand for international travel by air
(c) Increased use of electronic chip card readers
(d) Increasing trends in card-not-present transactions
20. Which is a potential sign of credit card fraud?

(a) A local one way air reservation with departure in several weeks
(b) A ticket sale where the customer does not ask about the airfare
(c) A request for a return reservation on an airline offering the lowest
airfare
(d) A face-to-face airline ticket purchase from a customer with a physical
card
21. What should a secondary proof of identification show?

(a) Photo of the cardholder
(b) Home telephone number
(c) Credit card security code
(d) Airline frequent flyer number
22. What credit card data substitutes for the cardholder’s signature when
authenticating the customer’s card in an airline ticket sale by telephone?
(a) Cardholder’s name
(b) Card security code
(c) Cardholder’s signature
(d) Card expiry date
23. Which is a typical UATP card subscriber?

(a) A travel agency
(b) A leisure traveler
(c) A business traveler
(d) An airline

24. Which is NOT an acquirer’s duty?

(a) Transmit the customer’s card data to the issuer
(b) Authenticate the credit card’s validity
(c) Approve vendors for credit card payment acceptance
(d) Install electronic credit card reading devices
25. How can a travel agency protect itself against chargebacks for an online
or telephone sales transaction?
(a) Secure a signature-on-file agreement
(b) Ask for a copy of the credit card signature
(c) Request and print the issuer’s approval code
(d) Perform an address verification service
Try Activity 16

In this unit you learned that
• The travel agency operating in a “collect” model must have a merchant ID
number in order to accept and process customer credit card payment
transactions. However, in the case of airline ticket sales, travel agents
change to the “pass-though” model where the agent collects the
customer’s personal credit card information, inputs the details into the GDS
PNR as form of payment, and the airline is the merchant that processes
payment and collects the funds from the credit card company
(Unit 12.12.1).
• There are generally four parties involved in processing and authorizing
credit card payment transactions: the Acquirer, Cardholder, Issuer and
Merchant (Unit 12.12.2).
• Credit cards bear a unique account number that begins with a 2-letter code
representing the card brand (Unit 12.12.3).
• The UATP card is a card payment solution designed specifically for
business travel, where airlines are Issuers and travel related vendors are
Merchants (Unit 12.12.4).
• There are two ways to transmit credit card information for the sale of airline
products: via the GDS which is a point of sale terminal or via a card chip or
magnetic stripe reader (Unit 12.12.5).
• The conditions for acceptance of credit cards may vary from one airline to
another. Most GDS systems are equipped with a Carrier Credit Card
Acceptance Chart as a resource for travel agents on airline policies and
procedures for the acceptance of credit card payment (Unit 12.12.6).
• A card transaction approval code confirms that at the moment of purchase,
credit for the specified amount is available and the card has not been
claimed lost or stolen. It does not absolutely guarantee payment as the
cardholder may chargeback. A chargeback can be disputed by the
merchant if the transaction has the cardholder’s signature, the credit card
imprint and an approval code. It is common for credit card customers to be

asked for their unique card security (CSC/CSV) number that can only be
read by the physical eye. Signature-on-file agreements are contracts
between the travel agency and the cardholder that enable agents to
process a transaction on behalf of an absent cardholder (Unit 12.12.7).
• Apply recommended guidelines and verifications to minimize the risk of
credit card fraud. In card-not-present transactions ask for the card security
code and perform a billing address verification. In card-present trans-
actions verify the card signature and secondary IDs (Unit 12.12.8).
Apply Your Learning
“Stop phishing!”
Phishing refers to scams that attempt to trick passengers into revealing

personal information such as credit card numbers, PIN codes and other
sensitive details. These scams can be done by phone, email, regular mail and
even via text message to help them gain access to your GDS and issue tickets.
Credit card companies or GDSs will not contact cardholders to request their
personal account info or initiate outbound telemarketing calls. So do not be
fooled into revealing your sensitive credit card details.

12.13 Children and Infant Fares
• Define who qualifies as a child or infant (Unit 12.13.1).

• Apply the provisions of Rule category 19 of the fare rule to price and issue
children and infant fares (Unit 12.13.2).
• Handle cases where the infant turns two enroute (Unit 12.13.3).
Unit Learning • Define unaccompanied minors (Unit 12.13.4).
Objectives
In the previous units you learned to calculate and issue full normal fare tickets
for adults. As a general rule, passengers are deemed to be adults if they have
reached 12 years of age or older.
However, for other types of passengers there are fares which are expressed as
a percentage of the full adult fare such as:
• child fare
• infant fare
Discounts vary by airline and by market; hence, it is important to look up the
carrier’s tariff provision. IATA Resolutions no longer have a standard or default
discount for international air travel.
12.13.1 Accompanied Minors

Definitions
A child is a passenger who has reached his/her second birthday bur not
his/her 12th birthday as of the date of commencement of travel.
An infant is a passenger below two years as of the date of commencement of
travel.
An adult is a passenger who has reached his/her 12th birthday as of the date
of commencement of travel.
When used for child/infant fares, accompanied means that the child/infant
must be accompanied by a passenger paying an applicable adult fare or
travelling at industry free or reduced fare tickets.
Key Learning Point

Accompanied minors must travel together with an adult who is a person who is
aged 12 or over at the start of the journey. A passenger is considered a child
when aged 2-11 and an infant when under the age of two. However, only one
infant not occupying a seat is allowed per accompanying adult and is entitled to
the infant fare. Infants occupying a seat are charged the applicable child fare.
12.13.2 Rule category 19 of the Fare Rule

Assess children and infant fares in accordance to the provisions of rule
category 19 of the applicable fare rule.
Let us look at an example of a child fare. The YEE3M fare for an adult
passenger travelling from MNL-BKK is NUC723.00.

We need to quote the fare for an accompanied child, which is 10 years old. The
information is available in Category 19 of the Rule in the Fare Lookup Tool, in
this case Rule 008/PH80.
CATEGORY 19 DISCOUNTS
BETWEEN PHILIPPINES AND THAILAND
NOTE - GENERAL RULE DOES NOT APPLY.
AN ACCOMPANIED CHILD 2-11 YEARS OF AGE - CHARGE 75 PERCENT OF THE
FARE.
TICKET DESIGNATOR- CH AND PERCENT OF DISCOUNT
MUST BE ACCOMPANIED ON ALL FLIGHTS BY ADULT 12 OR OLDER.
OR - AN UNACCOMPANIED CHILD 2-11 YEARS OF AGE - CHARGE 100 PERCENT OF
F
THE FARE.
Figure 12.13.1—Category 19 child discount rule for HRLEYPH fare
The rule states that 75 percent of the adult fare is to be charged for an
accompanied child.
Unit 12.13: Children and Infant Fares 1071

TKT-0002447606223 RCI- 2A LOC-2HFXL

OD-MNLMNL SI- FCMI-1 POI-MNL DOI-22JAN IOI-92057254
1.ORTEGA/VIVIANMS CHD S I
1 OMNL TG 212 Y 25JAN 1320 OK HRLEYPH A 25JAN 25JAN 20K
2 OBKK TG 213 Y 11MAR 0830 OK HRLEYPH O 11MAR 11MAR 20K
MNL
FARE USD 432.75
EQUIV PHP 19390
TAX PHP 1216TS
TOTAL PHP 20606
FC MNL TG BKK216.37TG MNL216.37NUC432.75END ROE1.00
FP CASH
FE TRVLG WITH ORTEGA/CARLOSMR TKT NBR 0002447606222
Figure 12.13.2—Sample Ticket for an Accompanied Child
The passenger type code “CHD” or “CHILD” is shown after the name optionally
followed by the age, e.g. 08.
Let us look at an example of an infant fare.
CATEGORY 19 DISCOUNTS
BETWEEN PHILIPPINES AND THAILAND
NOTE - GENERAL RULE DOES NOT APPLY.
1ST INFANT UNDER 2 YEARS OF AGE AND NOT OCCUPYING A SEAT - CHARGE 10
PERCENT OF THE FARE.
TICKET DESIGNATOR- IN AND PERCENT OF DISCOUNT
OR - AN INFANT UNDER 2 YEARS OF AGE AND OCCUPYING A SEAT - CHARGE 75
PERCENT OF THE FARE.
TICKET DESIGNATOR- IN AND PERCENT OF DISCOUNT
OR - NOTE -
UNACCOMPANIED INFANT UNDER 2 YEARS - TRAVEL NOT PERMITTED AT THIS
FARE.
Figure 12.13.3—Category 19 infant discount rule for HRLEYPH fare

TKT-0002447606228 RCI- 2A LOC-2CY3MZ

OD-MNLMNL SI- FCMI-1 POI-MNL DOI-20JAN IOI-
92057254
1.CURTIS/CHRISTOPHERMSTR INF S I
1 OMNL TG 212 Y 25JAN 1320 NS HRLEYPH A 25JAN 25JAN 10K
2 OBKK TG 213 Y 11MAR 0830 NS HRLEYPH O 11MAR 11MAR 10K
MNL
FARE USD 57.70
EQUIV PHP 2586
TOTAL PHP 2586
FC MNL PP BKK28.85TG MNL28.85NUC57.77END ROE1.00
FP CASH
FE TRVLG WITH CURTIS/JOCELYN MRS
Figure 12.13.4—Sample Ticket for an Accompanied Infant
Apply the percentage of the child’s discount to the adult fare (MNL-BKK) based
on Rule category 19 of the accompanying fare rule (008/PH80).
The passenger type code “INF” or “INFANT” shall follow the name. The
reservations status code “NS” (no seat) is also shown for each coupon.
Under the weight system if the infant is allowed a baggage allowance, enter the
amount (e.g. 10K or 22L). If the piece system is used, enter “PC” preceded by
the number of pieces, e.g. 1PC. If the fare used does not permit any baggage
allowance, invalidate the allowance by entering “NO”, “NIL” or “XX”.
Notes
1. Optionally, in the “Endorsements/Restrictions”, information about the
accompanying adult (name and ticket number) may be added on the child
or infant’s ticket.
2. Ticketing procedures for an accompanied child will be applied to infants
occupying a seat and paying the child fare.
3. Only one infant not occupying a seat is allowed per accompanying adult
passenger.
Key Learning Point

The discount to be applied for an accompanied child or infant is given in
Category 19 of the rule. The fare basis may end by the letters “CH” or “IN” and
the percentage of the discount applied. However, only one infant not occupying
a seat is allowed per accompanying adult and is entitled to the infant fare.
Infants occupying a seat are charged the applicable child fare.

12.13.3 Infants Turning Two Enroute

A passenger who is below two years of age as of the date of commencement
of travel is considered an infant. This means that fares to be assessed for the
total journey shall be the applicable fares effective on the date of departure on
the first sector.
Even if the infant turns two years of age enroute before the termination of the
journey, the fare is assessed based on the original age of the passenger during
the time of commencement of travel. The infant fare is quoted even though the
infant subsequently qualified as a child after commencement of travel, provided
that no seat is occupied.
While this is the general rule, carriers may, nonetheless, choose to file an
exception in their tariffs that will require charging a child’s fare instead. See
Figure 12.13.4.
Each airline has its own commercial policy in response to various government
safety requirements intended to improve safety for kids otherwise secured only
with a lap belt. Hence, it is important to double check the provisions of Rule
category 19 for carrier exceptions whenever pricing tickets for children and
infants.
12.13.4 Unaccompanied Minors

Definition
A minor who is at least 8 years old but below 12 years of age, whether or not
accompanied by a passenger paying the adult fare, pays the applicable child’s
fare. However, there are some exceptions to the use of the child’s fare.
For those infants and children who have not reached their eighth birthday and
who are not accompanied by an adult (12 years of age or over), such minors
pay 100% of the adult fare.
A child is considered unaccompanied if not escorted by a passenger of at least
12 years of age or over paying the adult fare (or traveling on a free or reduced
fare ticket based on a discount for an adult fare).
While this is the general rule, carriers may, nonetheless, choose to file an
exception in their tariffs that will allow younger children to travel as unaccom-
panied minors. Sometimes at an assistance charge. See Figure 12.13.5.
OR - UNACCOMPANIED CHILD 5-11 - CHARGE 75 PERCENT OF THE FARE.

TICKET DESIGNATOR - UNN.
NOTE –
1. UNACCOMPANIED MINOR UNDER 5 WILL NOT BE ACCEPTED FOR CARRIAGE.
2. YOUNG PASSENGER 12-15 PAYING 100 PCT OF THE FARE MAY REQUEST
ASSISTANCE AT A CHARGE - SEE SURCHARGE IN SU CATEGORY.
Figure 12.13.5—Category 19 on Unaccompanied Minors

Key Learning Point

Unaccompanied minors (usually ages 8 to 12) are generally not eligible for any
discount.
Study Check 12.13
TRUE or FALSE?
1. An infant occupying a seat has to pay a child fare.
(a) True
(b) False
2. An infant is a passenger who has reached two years of age.

(a) True
(b) False
3. All unaccompanied minors have to pay 100% of the fare.

(a) True
(b) False
4. Ironically, an unaccompanied minor may have an escort such as the

airline’s cabin attendant.
(a) True
(b) False
5. When a child turns 12 on the return portion of his/her journey, you have
to charge him/her the full adult fare.
(a) True
(b) False
6. A HIP may always be ignored when it comes to child and infant fares.
(a) True
(b) False
7. Category 16 of the fare rule is the source of information regarding child

and infant discounts.
(a) True
(b) False
8. A parent may travel with infant twins not occupying a seat at the infant
fare.
(a) True
(b) False
9. The reservation status code for an infant fare ticket is NS.

(a) True
(b) False

10. Baggage allowance is usually the same on a child fare and an infant
fare ticket.
(a) True
(b) False

• Only one infant not occupying a seat is allowed per accompanying adult
passenger (Unit 12.13.2).
• Fares for accompanied minors apply when the children/infants are
accompanied by an adult (Unit 12.13.1).
• “As of the date of commencement of travel” shown in the definition of a
child or infant means that fares to be assessed for the total journey shall be
the applicable fares effective on the date of departure on the first sector
(Unit 12.13.1).
• Fares for unaccompanied minors apply whether or not the carrier assigns
an employee for the purpose of taking care of the minor for the duration of
the journey (Unit 12.13.4).
• Regardless of the fare collected (full fare or child’s fare depending on the
Rule category 19), the unaccompanied infant may still qualify for an infant’s
reduced taxes/fees/charges or even a tax exemption.
Apply Your Learning
“Do airlines still need to issue tickets for infants who travel free of charge?”
Because of the provisions of the Warsaw and Montreal Conventions, each

passenger must be given a ticket/itinerary receipt which includes a copy of the
Notices and Conditions of Contract. In this connection, a ticket is issued even
for infants who are traveling free of charge.
However, when there are no fare and TFCs collected, an authorization number
or other pertinent data may be entered in the ‘Form of Payment’.

12.14 Restricted Fares and Conditions
• List restricted fare category titles (Unit 12.14.1).

• Express key restrictions for Excursion, Instant Purchase Excursion (PEX)
and Apex (APEX) restricted fares (Unit 12.14.2).
• Analyze the conditions of fare notes accompanying a restrictive fare
Unit Learning (12.14.2).
Objectives • Price with restricted fares, taking into consideration seasonality, day-of-
By completing this Unit, week, stopovers and transfers, minimum and maximum stay requirements
you will be able to: and advance purchase deadlines (Unit 12.14.2).

While unrestrictive fare tickets offer few or no restrictions, there is greater
demand for restrictive fares because they are less expensive. Restrictive fare
types exist for travel in all cabin classes to just about any destination, and there
are restrictive fares for travel in premium economy, business and first class.
Even business travelers are purchasing them for travel.
Restrictive fares have rule conditions that must be respected. These rules must
be read and interpreted to determine whether the restricted fare applies to a
fare component, a pricing unit or if combination with other fares are allowed
within a journey. A variety of restrictive fares exist with various levels of
limitations. These fares are accompanied by a fare basis code composed of a
string of letters. The first letter in the fare basis code usually represents the
class of service or reservation booking designator (RBD) code that must be
booked for the fare. There are two very important things to pay attention to
when selecting restrictive fares: the booking class code and the fare restric-
tions.
Always read fare rules/notes carefully and interpret conditions that apply!
One way and return restrictive fares exist. These may be combinable with other
restrictive fares if the terms of combinability are met. Interlining may be allowed
although to a limited degree.
12.14.1 What is a Restricted Fare?

A restricted fare is usually a reduced or discounted fare that applies more
conditions than non-rectricted fares, such as:
• length of stay
• advance purchase requirements
• reservations, payment and ticketing deadlines
• number of transfers and stopovers
• refunds and rebooking or rerouting
• seasonality
• day of week
• stopover and transfer conditions
Unit 12.14: Restricted Fares and Conditions 1077

List of rule categories (paragraphs):

RU.RULE APPLICATION MN.MIN STAY
MX.MAX STAY DA.DAY/TIME
SR.SALES RESTRICT TR.TVL RESTRICTION
AP.ADVANCE RES/TKT FL.FLT APPLICATION
CD.CHILD DISCOUNTS TC.TOUR CONDUCTOR
AD.AGTS DISCOUNTS SO.STOPOVERS
TF.TRANSFERS/RTGS SU.SURCHARGES
TE.TKT ENDORSEMENT PE.PENALTIES
CO.COMBINABILITY HI.HIGHER INTERMEDIATE POINT
VC.VOLUNTARY CHANGES VR.VOLUNTARY REFUNDS
Restricted fares are categorized into three main classifications: Excursion, PEX
and APEX.
Key Learning Point

Restricted fares are among the lowest fares with the least flexible rules or
conditions.
12.14.2 Excursion Fares

The excursion fare is traditionally a restricted fare with more flexible conditions
or rules. This fare can be usually but not always, purchased, booked and
ticketed any time prior to departure.
Conditions are usually limited to:
• minimum stay of a number of days
• maximum stay, specified in either days or months
• number of transfers and stopovers
• refunds and rebooking or rerouting limitations or requirements or
restrictions
However, sometimes there is an advance purchase requirement and/or change
of reservations penalty. It is not possible to recognize the type of restricted fare
from the fare basis code. It is vital to read the accompanying note or rule, which
defines whether a fare is excursion, PEX or APEX.
When reading the conditions of a fare rule, avoid reading the paragraphs in
isolation. A rule condition may have requirements linked to the rest of the
paragraphs in the rule. For example, the stopover and transfer conditions are
linked. Minimum and maximum stay affect the condition for reservation
changes if there are penalty fees specified in the fare rule.

Case Study 1
A customer requests the lowest return fare from Johannesburg to London.
MORE FARES AVAIL IN USD TAX MAY APPLY

ROE 13.35928 UP TO 10.00 ZAR SURCHG MAY APPLY-CK RULE
25SEP **25SEP /BA JNBLON/NSP;EH/TPM 5628/MPM 6753
****ONEWORLD VISIT EUROPE FARE - SEE INFO NOTE BA/200*****
LN FARE BASIS OW ZAR RT B PEN DATES/DAYS AP MIN MAXFR

01 VLXC60S2 6470 V + - 1234+ + 3+ 12M R
S01SEP 08DEC
02 VLNC60S2 6670 V + S01SEP 08DEC+ + 3+ 12M R
03 VLXC60S2 7670 V + - 1234+ + 3+ 12M R
S01SEP 08DEC
04 VLNC60S2 7870 V + S01SEP 08DEC+ + 3+ 12M R
LAST TKT DTE 17SEP /23:59 LT in POS - SEE ADV PURCHASE

JNB
LON BA 50 V 01NOV 0740 VLXC60S2 01NOV01NOV 1P
JNB BA 55 V 10NOV 1810 VLNC60S2 10NOV10NOV 1
ZAR 8040.00 01NOV JNB BA LON Q10.00 287.06BA JNB Q
10.00 294.55NUC601.61END ROE13.359280
ZAR 3768.00-YQ XT ZAR 238.07-ZA ZAR 22.00-UM ZAR 190.00
ZAR 23.61-EV -WC ZAR 1488.00-GB ZAR 857.00-UB
ZAR 2795.07-XT
ZAR 14626.68
VL6C60S2/VLNC60S2

10SEP **16AUG /BA JNBLON/NLX;EH/TPM 5628/MPM 6753
LN FARE BASIS OW ZAR RT B PEN DATES/DAYS AP MIN MAX R
10 VLXC60S2 6470V @ S - 1234@ @ 3@ 12M R
FCL: VLXC60S2 TRF: 23 RULE: M164 BK: V
The journey from Johannesburg to London and return to Johannesburg is on

carrier BA. Outbound travel is on a Thursday while inbound travel is on a
Sunday. In this case, the RBD “V” matches the first letter of the fare basis
VLXC60S2.
The rule identifies the fare type and conditions. The Rules Display classifies the
fare as an Excursion fare with fare type code (FTC) XEX. Proceed to the next
part which are the notes stating:
RU.RULE APPLICATION FIRST / BUSINESS / PREMIUM ECONOMY / ECONOMY FULLY FLEXIBLE

FARES WITHIN AREA 2
APPLICATION
AREA THESE FARES APPLY WITHIN AREA 2.
The fare applies for travel within Area 2 and are applicable to all cabin classes.
The rule applies to all journey types; one way, roundtrip, circle trip or open-jaw

SE.SEASONS BETWEEN SOUTH AFRICA AND EUROPE FOR VLXC60S2 TYPE FARES
PERMITTED 06MAR THROUGH 31MAY OR 09JUL THROUGH 31JUL
OR 01SEP THROUGH 08DEC OR 23DEC THROUGH 21JUN ON THE FIRST INTERNATIONAL
SECTOR.
Sometimes there are 2 or 3 seasons. The peak season when fares are most
expensive is designated H. Between peak and low season is the shoulder
season designated K. L stands for LOW season when fares are lowest.
VLXC60S2 type fares allow travel 01SEP through 08DEC.
MN.MIN STAY
TRAVEL FROM LAST INTERNATIONAL STOPOVER MUST COMMENCE NO EARLIER THAN 3 DAYS
AFTER DEPARTURE OF THE FIRST INTERNATIONAL SECTOR.
The minimum stay is specified as “3 days after departure on the first

international flight”. The passenger leaves JNB for LON on 1st November. Add
3 days to 01NOV and the result is 04NOV. The passenger may not leave
London prior to 04NOV. When the note states after departure, do not count the
date of departure. But if the note states from departure, start counting from the
departure date, example: DEP on 01NOV, 02NOV 03NOV is the minimum stay
date.
MX.MAX STAY
TRAVEL FROM LAST STOPOVER MUST COMMENCE NO LATER THAN 12 MONTHS AFTER DEPARTURE
FROM FARE ORIGIN.
Maximum Stay can be defined in days, months or a year. Suppose that a rule
states maximum stay as 30 days after the date of departure from origin. If
departure is on 15th March, we count 16 balance days of March and 14 days of
April (16+14=30 days). The maximum stay date will be 14th April. If the
maximum stay is stated as 60 days, we apply the same formula: 16 days of
March plus 30 days of April results in 46 days. 14 days of May are required to
arrive at a total of 60 days. Therefore the maximum stay date will be 14MAY.
On the other hand, if the maximum stay requirement is 1 month, the same date
of the following month applies and the validity of the ticket will be 15APR.
Assuming the departure is on 30NOV (the last day of the month) and the ticket
validity is 2 months, then the last day of January will be the maximum stay
date; 31JAN. In another situation departure from origin is 30th January and the
maximum stay is prescribed as 1 month. 30th January is not the last day of the
month and February has only 28 days. In such a case, the last day of February
(28 or 29FEB) will be the maximum stay date.
The rule states12 months counting from the date of departure, which is
01NOV2018. The ticket is therefore valid up to 01NOV2019 (same month and
date of the following year) and the sector LON-JNB must commence by that
date. Supposing the passenger was travelling JNB-LON-ROM-JNB. Since the
last stopover is Rome, the sector ROM-JNB must begin latest on 01NOV2019.
Note: arrival may be on the next day.
DA.DAY/TIME
FOR MIDWEEK FARES
PERMITTED MON THROUGH THU ON THE FIRST INTERNATIONAL SECTOR.
The fare basis code is VLXC60S2 for the outbound sector and VLNC6052 for
the inbound. The “X” in the fare basis means valid on weekdays (Monday to
Thursday as stated in the fare Rule) and “N” means valid for travel on all days
including Friday, Saturday and Sunday.

SO.STOPOVERS
BETWEEN UNITED KINGDOM AND AFRICA
ORIGINATING UNITED KINGDOM -
UNLIMITED STOPOVERS PERMITTED IN EACH DIRECTION LIMITED TO 2 FREE AND UNLIMITED
AT GBP 75.00 EACH.
ORIGINATING AFRICA -
UNLIMITED STOPOVERS PERMITTED IN EACH DIRECTION
LIMITED TO 2 FREE AND UNLIMITED AT USD 125.00 EACH.
From Africa, unlimited stopovers are permitted, EXCEPT that only 2 are free,
and extra stopovers are possible at USD 125.00 each. When counting
stopovers, do not include the origin, turnaround point and destination of a
pricing unit. Only intermediate ticketed points are considered.
TF.TRANSFERS/RTGS
BETWEEN EUROPE AND AFRICA
UNLIMITED TRANSFERS PERMITTED ON THE FARE COMPONENT

FARE BREAK AND EMBEDDED SURFACE SECTORS NOT PERMITTED ON
THE FARE COMPONENT.
Transfers are the number of intermediate points (not FCPs) which appear in a
pricing unit. The term includes any point which is a stopover. Example: In a
journey JNB-IB-MAD-BA-LON-BA-JNB, MAD is a stopover as well as a
transfer. According to the rule, unlimited transfers are permitted. However,
embedded surface sectors are not allowed. An embedded surface sector is a
domestic or international surface sector within a fare component but not to or
from a fare construction point. An embedded surface sector is travel say by
train between two intermediate points. Example: JNB-IB-MAD SURFACE PAR-
BA-LON-BA-JNB. MAD to PAR is an embedded surface sector which is not
permitted.
SR.SALES RESTRICT
TICKETS MUST BE ISSUED ON BA OR IB OR - TICKETS MUST BE ISSUED ON BA OR EI
TICKETS MUST BE ISSUED BY ELECTRONIC TICKETING.
The rule indicates that travel may be on BA and IB, or BA and EI services.
AP.ADVANCE RES/TKT
FOR VLXC60S2 TYPE FARES
RESERVATIONS ARE REQUIRED FOR ALL SECTORS.
TICKETING MUST BE COMPLETED WITHIN 7 DAYS AFTER RESERVATIONS ARE MADE.
NOTE -
DUE TO TTL ROBOT PROCESS DIFFERENCES MAY EXIST BETWEEN THE CRS LAST TICKETING
DATE AND TTL ROBOT REMARK.
Generally speaking, excursion fares do not have advance purchase

requirements. However, there are many exceptional cases such as this, where
the rule states ticketing must be completed within 7 days after making
reservations. But read the robotic remark in the reservations display LAST TKT
DTE 17SEP/23:59 LT in POS - SEE ADV PURCHASE. The more restrictive condition
applies. So even if the reservations were made on 14th September, the robotic
response of 17SEP is the date by which ticketing must be completed. Non-
Compliance with the robotic remark will result in cancellation of the entire
booking.

TE.TKT ENDORSEMENT
THE ORIGINAL AND THE REISSUED TICKET MUST BE ANNOTATED -
CARRIER RESTRICTION APPLY - AND - PENALTY APPLIES - IN THE
ENDORSEMENT BOX.
The endorsement box of the ticket must mention “carrier restrictions apply and
penalty applies”. So the client is aware that any change in reservations or
cancellation will result in a penalty.
PE.PENALTIES
FROM/TO SOUTH AFRICA
CANCELLATIONS
ANY TIME CHARGE ZAR 800.00.NOTE -CHARGES APPLY PER FARE COMPONENT
CHARGE ZAR 1950.00 FOR NO-SHOW.
NOTE - NO-SHOW FEE APPLIES IF THE FARE COMPONENT IS REFUNDED AFTER THE TICKETED
DEPARTURE TIME OF THE FIRST UNFLOWN COUPON WITHIN THE FARE COMPONENT.
CHANGES
ANY TIME
CHARGE ZAR 1500.00 FOR REISSUE/REVALIDATION. CHARGE APPLIES PER TRANSACTION -
PER PERSON FOR ALL PASSENGER TYPES. A CHANGE IS A DATE/FLIGHT/ROUTING/BOOKING
CODE CHANGE.
NOTE - WITH THE EXCEPTION OF TICKETS CHANGED IN THE US ANY PENALTY FEE MUST BE
COLLECTED VIA AN EMD.
In case the passenger wishes to submit the ticket for refund, a penalty of ZAR
800 applies for each fare component. Therefore if he or she asks for full refund,
ZAR 1600 will be deducted from the total fare paid. If the passenger asks for
change of date from 10NOV to 12NOV for LON to JNB, charge ZAR 1500. Per
transaction means that the client may ask for two changes simultaneously but
the charge remains the same i.e. ZAR 1500. Supposing the passenger does
not turn up for the flight and is therefore a no-show, and later submits the ticket
for refund, deduct ZAR 1950 and refund charge of ZAR 1600.
SU: ORIGINATING AREA 2

– A SURCHARGE OF USD 10.00 PER FARE COMPONENT WILL BE ADDED TO THE APPLICABLE
FARE FOR TRAVEL.
Note: There is a surcharge of USD 10.00 represented by the letter “Q” for each
fare component for travel from Area 2 which is reflected in the fare calculation
area of the ticket.
01NOVJNB BA LON Q10.00 287.06BA JNB Q10.00 294.55NUC601.61END
ROE13.359280
Key Learning Point

The outbound international flight departure date generally determines the
seasonal fare level and applies to the entire pricing unit. By contrast, the
day/week fare level may vary per fare component, depending on the actual day
travelled.

Case Study 2
A client wants to travel from Delhi to Shanghai and back to Delhi, at the
cheapest possible fare.
Itinerary DELSHADEL
2 AI 348 U 17MAR 7 DELPVG HK1 1140 2020 17MAR E AI
3 AI 349 U 24MAR 7 PVGDEL HK1 2200 0220 25MAR E AI/
------------------------------------------------------------
DEL
SHA AI 348 U U 17MAR 1140 UE3MIPVG 17MAR17MAR 20
DEL AI 349 T *T 24MAR 2200 TE1MIPVG 24MAR24MAR 20
INR 12850 17MARDEL AI SHA Q11.65 96.91AI DEL78.69
EUR 154.00 NUC187.25END ROE68.615230
EUR 304.06-YQ XT EUR 0.95-IN EUR 3.29-WO EUR 11.34-CN
EUR 22.91-K3
EUR 15.58-XT
EUR 496.55
RATE USED 1INR=0.011929EUR
BAG/SEAT/SERVICES AT A CHARGE MAY BE AVAILABLE-ENTER FXK
CAPACITY LIMITATIONS
THE CARRIER SHALL LIMIT THE NUMBER OF PASSENGERS CARRIED ON ANY ONE FLIGHT AT
FARES GOVERNED BY THIS RULE AND SUCH FARES WILL NOT NECESSARILY BE AVAILABLE ON
ALL FLIGHTS.
THE NUMBER OF SEATS WHICH THE CARRIER SHALL MAKE AVAILABLE ON A GIVEN FLIGHT
WILL BE DETERMINED BY THE CARRIERS BEST JUDGMENT
Notice that we asked for a booking in U class, both outbound and inbound.
However the system responded with outbound in U class, and inbound in T
class. According to the rule the carrier has capacity restrictions for UE3MIPVG
(note line 8 in the fare display) and therefore the return booking is changed to
TE1MIPVG (line 4) by the carrier AI. Each half of the pricing unit must be
examined to see the rules of both outbound and inbound fares are observed.
FQDDELSHA
ALSO SEE DELPVG TAX MAY APPLY

MORE FARES AVAIL IN USD SURCHG MAY APPLY-CK RULE
ROE 68.61523 UP TO 5.00 INR
12SEP**12SEP/DELSHA/NSP;EH/TPM 2652/MPM 3182
LN FARE BASIS OW INR RT PEN DATES DAYS AP MIN MAX ALFR
01 W2SPCMAS 8000 + B30SEP - + - - 1M 9W R
02 SE1MIPVG 8100 + B30SEPO31OCT+ - - 1M+AI R
03 O2SPCMAS 10000 + B30SEP - + - - 1M 9W R
04 TE1MIPVG 10800 + - - + - - 1M+AI R
05 SL1MDD1 12000 + S29SEPO31DEC+ + - 1M SC R
06 V2SPCMAS 12990 + B30SEP - + - - 1M 9W R
07 LRCIN 13000 + B30SEPO30SEP+ - - 3M+CA R
08 UE3MIPVG 13300 + - - + - - 3M+AI R


OPTION LIST
RU.RULE APPLICATION MX.MAX STAY
SR.SALES RESTRICT TR.TVL RESTRICTION
AP.ADVANCE RES/TKT FL.FLT APPLICATION
CD.CHILD DISCOUNTS SO.STOPOVERS
TF.TRANSFERS/RTGS SU.SURCHARGES
TE.TKT ENDORSEMENT PE.PENALTIES
CO.COMBINABILITY HI.HIGHER INTERMEDIATE POINT
MD.MISCELLANEOUS DATA VC.VOLUNTARY CHANGES
VR.VOLUNTARY REFUNDS
RU. APPLICATION
AREA
THESE FARES APPLY BETWEEN AREA 3 AND SHA.
(Applies to both UE3MIPVG and TE1MIPVG) This fare applies between Area 3
and Shanghai and is a regular excursion fare. Both fares are routing based
fares.
AP. ADVANCE RES/TICKETING

UNLESS OTHERWISE SPECIFIED RESERVATIONS ARE REQUIRED FOR ALL SECTORS.
(Applies to both UE3MIPVG and TE1MIPVG) Unless otherwise specified,

reservations are required for all sectors.
SO. STOPOVERS
BETWEEN INDIA AND CHINA FOR FARES VIA RTG524

UNLIMITED STOPOVERS PERMITTED ON THE PRICING UNIT
LIMITED TO 2 FREE AND UNLIMITED AT INR 4500 EACH. 1 FREE IN EACH DIRECTION.
(Applies to both UE3MIPVG and TE1MIPVG) Stopovers are permitted but only
at cities which appear on the AI routing map. Between India and China for fares
via RTG524, unlimited stopovers permitted on the pricing unit but limited to 1
free in each direction and others unlimited at INR 4500 each.
TRANSFERS
FOR FARES VIA RTG524

6 TRANSFERS PERMITTED ON THE PRICING UNIT
FARE BREAK AND EMBEDDED SURFACE SECTORS NOT PERMITTED ON THE FARE COMPONENT.
(Applies to both UE3MIPVG and TE1MIPVG) 6 transfers permitted on the

pricing unit. Fare break surface sectors are not permitted. Suppose the client
wants to arrive in Shanghai but depart from Beijing, travelling by train from
Shanghai to Beijing but the amount charged would be the DEL-SHA-DEL fare.
This would not be permitted. An embedded surface sector occurs within a fare
component. A fare break surface sector occurs when the turnaround point of
arrival is not the same as the turnaround point of departure.

MX. MAXIMUM STAY UE3MIPVG

FOR -3M TYPE FARES
TRAVEL FROM LAST STOPOVER MUST BE COMPLETED NO LATER THAN 3 MONTHS AFTER
DEPARTURE FROM FARE ORIGIN.
FOR -1M TYPE FARES TE1MIPVG

TRAVEL FROM LAST STOPOVER MUST BE COMPLETED NO LATER THAN
1 MONTH AFTER DEPARTURE FROM FARE ORIGIN.
A ticket issued for UE3MIPVG is valid for 3 months. But the TE1MIPVG is valid
for only 1 month. In such a situation, the most restrictive condition applies
which is 1 month. If travel commences on 17MAR, the ticket is valid up to
17APR, i.e. travel must be completed by 17APR. Nevertheless' the ticket will
show actual dates of travel on each coupon, to make it clear that penalties will
apply in case of any change.
SU. UE3MIPVG
ORIGINATING INDIA OUTBOUND -
A SURCHARGE OF INR 800 WILL BE ADDED TO THE APPLICABLE FARE FOR WEEKEND TRAVEL
ON SUN.
If originating in India, a surcharge of INR 800 will be added to the applicable

fare for weekend travel on Sunday. Travel from Delhi is on a Sunday with fare
basis UE3MIPVG, which is shown in the fare calculation area in NUC as
Q11.65. (This surcharge does not apply to TE1MIPVG type fares).
PE. PENALTIES
FOR U- TYPE FARES VIA RTG524

CHANGES
CHARGE INR 2000 FOR REISSUE.
NOTE - A CHANGE IS A DATE/FLIGHT/ROUTING/BOOKING CODE MODIFICATION.
--------------------------------------------------
CHARGE APPLIES PER TRANSACTION.

A TRANSACTION MAY INCORPORATE ONE OR MORE
RESERVATION CHANGE IN THE SAME TRANSACTION
E.G. FLIGHT AND DATE CHANGE IN ONE DIRECTION OR BOTH.
PENALTIES
FOR T- TYPE FARES VIA RTG524

CHANGES
CHARGE INR 3000 FOR REISSUE.
NOTE -
A CHANGE IS A DATE/FLIGHT/ROUTING/BOOKING CODE MODIFICATION.
--------------------------------------------------
CHARGE APPLIES PER TRANSACTION.
A TRANSACTION MAY INCORPORATE ONE OR MORE RESERVATION CHANGE IN THE SAME
TRANSACTION
E.G. FLIGHT AND DATE CHANGE IN ONE DIRECTION OR BOTH.

Changes
NOTE - A change is a date/flight/routing/booking modification.
For U- type fares via RTG524 (UE3MIPVG) charge INR 2000 for reissue. A
ticket must be reissued for any change.
Charge applies per transaction. A transaction may have one or more
reservation change done at the same time, e.g. flight and date change in one
direction or both.
For TE1MIPVG type fares, charge INR 3000 for reissue.
For UE3MIPVG Charge INR 4000 for cancellation of the ticket.
For TE1MIPVG type fares, charge INR 8000 for cancellation of the ticket.
PERMITTED COMBINATIONS
BETWEEN INDIA AND SHA FOR FARES VIA RTG524. COMBINATIONS ARE WITH ANY FARE FOR
CARRIER AI IN ANY RULE IN THIS TARIFF.
(Applies to both UE3MIPVG and TE1MIPVG) Combinability. These fares are

combinable with any economy class fare on AI. In this example, the outbound
fare is half of UE3MIPVG, and the inbound fare is half of TE1MIPVG. Two
different fares have been combined.
TE. UNLESS OTHERWISE SPECIFIED

THE ORIGINAL AND THE REISSUED TICKET MUST BE ANNOTATED - NON-END/CHANGE - AND -
CANCELLATION/NO-SHOW - AND - PENALTY MAY APPLY - AND - AS PER FARE RULES - IN
THE ENDORSEMENT BOX.
(Applies to both UE3MIPVG and TE1MIPVG) The original and the reissued
ticket must be annotated “non-end change/cancellation/no-show penalty may
apply.
Key Learning Point

Although excursion fares are a more flexible type of restricted fares, they often
have advance purchase requirements and penalty fees for cancellation, no-
show and change of reservations. When counting transfers, count the
stopovers as well as the no stopover points.
12.14.3 Instant Purchase Excursion (PEX) Fare

Instant Purchase Excursion fares carry the same restrictions as Excursion
fares. However, in addition, the fare may have conditions related to:
• confirmed bookings for each flight coupon
• payment of the ticket as soon as the booking is confirmed
• rebooking or reservation changes are generally not allowed or allowed with
a change fee
• cancellation and refund penalties

Case Study 3
FQPBOM/ALHFRANYC-FRABOM-
LAST TKT DTE 10SEP - SEE ADV PURCHASE

------------------------------------------------------------
BOM
XFRA LH K K 10SEP KXRCPAAW 10SEP10SEP 2P
NYC LH K K 10SEP KXRCPAAW 10SEP10SEP 2P
XFRA LH K K 17SEP KXRCPAAW 17SEP17SEP 2P
BOM LH K K 17SEP KXRCPAAW 17SEP17SEP 2P
INR 18000 10SEPBOM LH X/FRA LH NYC131.16LH X/FRA

LH BOM131.16NUC262.32END ROE68.615230
INR 31134-YQ XT INR 2524-K3 INR 850-YM INR 329-IN INR
INR 1339-YR 154-WO INR 1508-DE INR 3558-RA INR 407-YC
INR 13156-XT INR 1317-US INR 1317-US INR 285-XA INR 504
INR 63629 -XY INR 403-AY
BAG/OTHER SERVICES AT A CHARGE MAY BE AVAILABLE-ENTER FXK
* FARE BASIS * DISC * PTC * FARE<INR> * MSG *T

01 F77RT+FR1 * * 1 * 1196453 *RB *Y
02 J77RT+JXR1 * * 1 * 973657 *RB *Y
03 J77RT+C2E * * 1 * 970353 *RB *Y
04 F77RT * * 1 * 682109 *RB *Y
05 J77RT * * 1 * 627229 *RB *Y
06 G77RT+GR1 * * 1 * 520029 *RB *Y
07 Y77RT+YR1 * * 1 * 458251 *RB *Y
08 CFFAAW+PX* * * 1 * 395770 *RB *Y
09 G77RT * * 1 * 355741 *RB *Y
10 Y77RT * * 1 * 331022 *RB *Y
11 ZFFAAW+PX* * * 1 * 325770 *RB *Y
12 PXRFAAW+P* * * 1 * 302250 *RB *Y
13 PXRCAAW+P* * * 1 * 296650 *RB *Y
14 GFFAS3W * * 1 * 286514 *RB *Y
15 BFFAAW+VL* * * 1 * 188647 *RB *Y
16 PXRCZAAW * * 1 * 166909 *RB *Y
17 MFFAAW+KX* * * 1 * 140200 *RB *Y
18 VLRCAAW * * 1 * 139518 *RB *Y
19 UFFAAW+KX* * * 1 * 134950 *RB *Y
20 ULRFAAW+K* * * 1 * 131275 *RB *Y
21 QLRFAAW+K* * * 1 * 106196 *RB *Y
22 WLRCAAW+K* * * 1 * 98951 *RB *Y
23 SLRCAAW+K* * * 1 * 96326 *RB *Y
24 TLRCAAW+K* * * 1 * 93701 *RB *Y
25 LXRCPAAW+* * * 1 * 66464 *RB *Y
26 KXRCPAAW * * 1 * 63629 *RB *Y
*2-3,8,11-26*RESTRICTIONS MAY APPLY/CHECK FQN
*1-7,9-10*ARPT RESTR FARE SWF SEG 2/3
PFC MAY APPLY/USE ARPT CODE AT NYC/
*1-3,6-8,11-26*TICKET STOCK RESTRICTION

When you study the ticket you will notice that the fare shown is only INR 18000,
but INR 31134 YQ (fuel surcharge and GST tax from India), INR 1339 YR (a
charge levied by the airline), and INR 13156 XT (miscellaneous taxes, fees and
charges) are summed-up to give a total of INR 63629 which is the fare shown
on line 26.
All the fares in the display are inclusive of all taxes and not just the air fare, as
indicated by the letter “Y” at end of each line.
See the GDS system explanation below:
INFORMATIVE PRICING EN 4JAN 1327Z
EXPLANATION:
FQPMADNYC THE SYSTEM REPEATS YOUR ENTRY.

* COLUMN SEPARATOR.FARE BASIS THE FARE BASIS COLUMN.
DISC DISCOUNT COLUMN. HERE, NO DISCOUNT APPLY.
PTC PASSENGER TYPE. IN THIS EXAMPLE, 1 REFERS TO AN

ADULT FARE. WHEN YOU REQUEST A DISCOUNT, 1 IS THE
FIRST DISCOUNT REQUESTED, AND THE ADULT FARE IS NOT
DISPLAYED.
FARE<EUR> FARE (CURRENCY IS THAT OF YOUR LOCATION)

AIRLINE TICKETING FEES ARE INCLUDED IF APPLICABLE.
MSG MESSAGE COLUMN. CODES ARE:
FL FLIGHT NUMBER RESTRICTION APPLIES FQ FREQUENCY (NO FLIGHTS ON

THE DATE INDICATED)
RB CHECK BOOKING CODE (RBD)
RE RESERVATION CONDITIONS APPLY
RO HIGHER BOOKING CLASS REQUIRED
SR SALES RESTRICTIONS APPLY
NOTE: EACH FARE IS IDENTIFIED BY LINE NUMBER. IF YOU SEE AN
ASTERISK BETWEEN THE LINE NUMBER AND THE FARE BASIS,
IT INDICATES THAT THE FARE IS SUBJECT TO GOVERNMENT
APPROVAL.
26 - PTC 1 ADT RULES DISPLAY

FARE COMPONENT 1 ADT BOMNYC LH KXRCPAAW PU 1 S
FCL: KXRCPAAW TRF: 1 RULE: WPIN BK: K
PTC: ADT-ADULT FTC: XPB-SUPER/SPCL INST PURCHASE
The fare offered is an INSTANT PURCHASE fare, with the FTC (fare type
code) XPB which means super/special instant purchase fare.
MN.MIN STAY
TRAVEL FROM INBOUND TRANSATLANTIC SECTOR MUST COMMENCE NO

EARLIER THAN 3 DAYS AFTER DEPARTURE OF THE OUTBOUND
TRANSATLANTIC SECTOR.
The outbound transatlantic sector is on 10SEP. 3 days after would be 13SEP.

Since the passenger makes the inbound transatlantic sector on 17SEP, the
minimum stay condition is fulfilled.

MX.MAX STAY
TRAVEL FROM LAST STOPOVER MUST COMMENCE NO LATER THAN 6

MONTHS AFTER DEPARTURE FROM FARE ORIGIN.
Travel from last stopover must commence no later than 6 months after
departure from fare origin. The last stopover is New York which is also the
turnaround point of this fare. The journey commenced on 10th September so
counting 6 months from that date will be 10th March of the following year. The
passenger may arrive on 11th March but his journey from NYC must commence
by 10th March.
AP.ADVANCE RES/TKT

WHEN RESERVATIONS ARE MADE AT LEAST 24 HOURS BEFORE
DEPARTURE TICKETING MUST BE COMPLETED WITHIN 12 HOURS
AFTER RESERVATIONS ARE MADE.
OR - RESERVATIONS FOR ALL SECTORS AND TICKETING MUST BE
COMPLETED AT THE SAME TIME.
NOTE -
-V24-
DUE TO AUTOMATED TICKETING DEADLINE CONTROL
DIFFERENCE COULD EXIST BETWEEN THE FARE RULE
LAST TICKETING DATE AND THE SYSTEM GENERATED
TICKETING DEADLINE MESSAGE.
THE MORE RESTRICTIVE TICKETING DEADLINE APPLIES.
Reservations are required for all sectors. When reservations are made at least
24 hours before departure ticketing must be completed within 12 hours after
reservations are made. Or - reservations for all sectors and ticketing must be
completed at the same time. Since the passenger wants to depart within 24
hours of making the reservations, the ticket must be issued at the same time as
can be seen in the reservations display the robotic remark - LAST TKT DTE 10SEP
- SEE ADV PURCHASE.
SO.STOPOVERS
1 STOPOVER PERMITTED IN EACH DIRECTION AT INR 3000 EACH.

NOTE -
EACH STOPOVER TAKEN UTILIZIES A PERMITTED TRANSFER
UNLESS RESTRICTED BY ROUTING ATTACHED TO FARE
RECORDS.
1 stopover permitted in each direction at INR 3000 each. This customer is not
stopping at FRA either outbound or inbound.

TF.TRANSFERS/RTGS
5 TRANSFERS PERMITTED IN EACH DIRECTION FREE

1 FREE IN AREA 3 IN EACH DIRECTION
FARE BREAK SURFACE SECTORS NOT PERMITTED AND EMBEDDED
SURFACE SECTORS PERMITTED ON THE FARE COMPONENT.
NOTE -
UNLESS RESTRICTED BY ROUTING ATTACHED TO FARE
RECORDS.
OR - 5 TRANSFERS PERMITTED IN EACH DIRECTION FREE
FARE BREAK SURFACE SECTORS NOT PERMITTED AND
EMBEDDED SURFACE SECTORS PERMITTED ON THE FARE
COMPONENT.
5 transfers permitted in each direction free

1 free in Area 3 in each direction
When counting transfers, count the stopovers as well as the no stopovers.
Origin, destination and turnaround point are not counted. The journey has two
transfers and no stopovers. Consider the journey BOM-LH-MUC-LH-X/FRA-
NYC-LH-DUS-LH-X/MUC-LH-BOM. There are 2 stopovers for which a total of
INR 6000 must be paid, and 4 transfers, 2 outbound in Area 2 and 2 inbound in
Area 2.
PE.PENALTIES
CANCELLATIONS
ANY TIME CHARGE EUR 190.00 FOR CANCEL/NO-SHOW/REFUND.
CHANGES
ANY TIME CHARGE EUR 130.00 FOR REISSUE/REVALIDATION.
For cancellations, no-show or refund, charge EUR 190.00. For changes such
as reservations, dates, class etc. charge EUR 130.00 for reissue/revalidation.
CO.COMBINABILITY
ROUND TRIPS/CIRCLE TRIPS
FARES MAY BE COMBINED ON A HALF ROUND TRIP BASIS
-TO FORM ROUND TRIPS
-TO FORM CIRCLE TRIPS
A MAXIMUM OF TWO INTERNATIONAL FARE COMPONENTS
PERMITTED.
PROVIDED - COMBINATIONS ARE WITH ANY FARE FOR CARRIER LH/UA/AC/OS/
LX/SN IN ANY RULE IN TARIFF
The fare permits combination with other fare types. For example, we could
combine ½ RT VLRCAAW with ½ RT KXRCPAAW. Nevertheless, the RBD
code for each fare type must be respected.

CD.CHILD DISCOUNTS
ACCOMPANIED CHILD 2-11 - CHARGE 100 PERCENT OF THE FARE.

TICKET DESIGNATOR - CH AND PERCENT OF DISCOUNT.
NOTE -
FOR CHILDREN TURNING 12 YEARS ENROUTE - ADULT FARE
HAS TO BE USED FOR THE ENTIRE JOURNEY.
OR - INFANT UNDER 2 WITH A SEAT - CHARGE 100 PERCENT OF
THE FARE.
TICKET DESIGNATOR - CH AND PERCENT OF DISCOUNT
OR - INFANT UNDER 2 WITHOUT A SEAT - CHARGE 10 PERCENT OF
THE FARE. FOR INFANTS TURNING 2 YEARS ENROUTE - DUE TO
SAFETY REGULATIONS - A BOOKED SEAT WILL BE REQUIRED FOR THE REMAINING
PORTIONS OF THE JOURNEY. WHEN A SEPARATE SEAT IS REQUIRED ON A PORTION OF
THE JOURNEY - CHILD FARE HAS TO BE USED FOR THE ENTIRE JOURNEY.
Accompanied child 2-11 - charge 100 percent of the fare.

Infant under 2 without a seat - charge 10 percent of the fare. If the infant
reaches 2 years before completion of the journey, 100% of the fare must be
paid for the entire journey.
TE: Ticket Endorsement: Tickets must show “Change/Cancellation Penalty
may apply”. That is the reason why in each coupon of the ticket's “not valid
before and not valid after” boxes, show the actual dates of travel.
Key Learning Point

PEX fares typically apply more restrictive conditions than EXCN fares, such as
immediate purchase and ticketing, inability to stop at intermediate points,
inability to combine with other fares on the same ticket and inability to rebook
flights after the ticket is issued.
Case Study 4
Let's examine a request for a PEX fare from AMS to LOS.
FQPAMS/AAF/D15NOV/CQCDGLOS-/D15DECCDGAMS-/R,FC-EUR
*NO FARES/RBD/CARRIER/PASSENGER TYPE

*ATTN VERIFY BOOKING CLASS SEE FQS
* FARE BASIS * DISC * PTC * FARE<EUR> * MSG *T
01 YFF * * 1 * 3766.49 *RB *Y
02 MFFNL * * 1 * 1776.49 *RB *Y
03 QLSFNL+XP* * * 1 * 777.49 *RB *Y
04 NLSRNL * * 1 * 763.49 *RB *Y
05 XPRNL * * 1 * 611.49 *RB *Y
*2-5*TICKET STOCK RESTRICTION

05 XPRNL * * 1 * 611.49 *RB *Y
LAST TKT DTE 05OCT - SEE ADV PURCHASE

------------------------------------------------------------
AMS
XPAR AF L L 15NOV XPRNL 15NOV15NOV 2P
LOS AF X X XPRNL 15NOV15NOV 2P
XPAR AF X X 15DEC XPRNL 15DEC15DEC 2P
AMS AF L L XPRNL 15DEC15DEC 2P
EUR 250.00 15NOVAMS AF X/PAR AF LOS127.53AF X/PAR

AF AMS Q LOSAMS34.78 127.53NUC289.84END
EUR 22.00-YQ ROE0.862490
EUR 200.00-YR XT EUR 10.88-CJ EUR 12.43-RN EUR 40.24-QX
EUR 139.49-XT EUR 15.60-FR EUR 43.10-QT EUR 17.24-TE
EUR 611.49
BAG/SEAT/SERVICES AT A CHARGE MAY BE AVAILABLE-ENTER FXK
FARE COMPONENT 1 ADT AMSLOS AF XPRNL PU 1 S

FCL: XPRNL TRF: 23 RULE: NL44 BK: X
PTC: ADT-ADULT FTC: XPN-INSTANT PURCHASE NONREF
OPTION LIST
RU.RULE APPLICATION MN.MIN STAY
MX.MAX STAY SR.SALES RESTRICT
TR.TVL RESTRICTION AP.ADVANCE RES/TKT
FL.FLT APPLICATION CD.CHILD DISCOUNTS
SO.STOPOVERS TF.TRANSFERS/RTGS
SU.SURCHARGES TE.TKT ENDORSEMENT
PE.PENALTIES CO.COMBINABILITY
HI.HIGHER INTERMEDIATE POINT MD.MISCELLANEOUS DATA
VC.VOLUNTARY CHANGES
RU.RULE APPLICATION
AIR FRANCE STANDARD RULE - PROMOTION - RESTRICTED FARES
APPLICATION
AREA
THESE FARES APPLY
BETWEEN AREA 1 AND AREA 2
WITHIN AREA 1
WITHIN AREA 2
WITHIN AREA 3.
CLASS OF SERVICE
THESE FARES APPLY FOR BUSINESS/ECONOMY CLASS SERVICE.
The itinerary is within Area 2 and qualifies for an instant purchase fare with fare
basis XPRNL. The RBD (reservations booking designator) is L for the sectors
AMS-PAR and PAR-AMS while PAR-LOS-PAR is booked in X.
MN.MIN STAY
FOR FARES WITH FOOTNOTE 62
TRAVEL FROM TURNAROUND MUST COMMENCE NO EARLIER THAN 7

DAYS AFTER DEPARTURE FROM FARE ORIGIN.

Travel from turnaround must commence no earlier than 7 days after departure
from fare origin. The fare origin is AMS and departure is on 15NOV. Adding 7
days to 15NOV results in 22NOV. Hence the return travel from the turnaround
point LOS, should not begin before 22NOV.
MX.MAX STAY

Travel from last stopover must commence no later than 2 months after
departure from fare origin. There are no stopovers on this journey. Therefore,
the maximum stay applies to the sector LOS-X/PAR-AMS which must begin by
15JAN; 2 months after 15NOV.
AP.ADVANCE RES/TKT

WHEN RESERVATIONS ARE MADE AT LEAST 101 DAYS BEFORE
DEPARTURE TICKETING MUST BE COMPLETED WITHIN 7 DAYS AFTER
RESERVATIONS ARE MADE OR AT LEAST 98 DAYS BEFORE DEPARTURE
WHICHEVER IS EARLIER.
OR - RESERVATIONS ARE REQUIRED FOR ALL SECTORS.
WHEN RESERVATIONS ARE MADE AT LEAST 11 DAYS BEFORE
DEPARTURE TICKETING MUST BE COMPLETED WITHIN 3 DAYS
AFTER RESERVATIONS ARE MADE OR AT LEAST 10 DAYS
BEFORE DEPARTURE WHICHEVER IS EARLIER.
TICKETING MUST BE COMPLETED WITHIN 1 DAY AFTER
RESERVATIONS ARE MADE.
NOTE -
--------------------------------------------------
DIFFERENCE COULD EXIST BETWEEN THE CRS LAST
TICKETING DATE AND TTL ROBOT REMARK.
--THE MOST RESTRICTIVE DATE PREVAILS.--
Assume that the reservations were made on 03OCT, which is more than 11
days before departure. In this case ticketing should be completed by 06OCT.
But, see the header in the reservations display - LAST TKT DTE 05OCT. This
“robotic” response overrides the fare rule for advance purchase and ticketing.
See the remark in paragraph AP:
DIFFERENCE COULD EXIST BETWEEN THE CRS LAST TICKETING DATE AND TTL ROBOT
REMARK.
THE MOST RESTRICTIVE DATE PREVAILS.
Moreover, confirmed reservations are required for all sectors.
SO.STOPOVERS
FROM/TO NETHERLANDS
STOPOVERS NOT PERMITTED ON THE FARE COMPONENT.
Stopovers not permitted on the fare component.

TF.TRANSFERS/RTGS
FROM/TO NETHERLANDS
UNLIMITED TRANSFERS PERMITTED ON THE FARE COMPONENT FREE

From/to Netherlands
Unlimited transfers permitted on the fare component. There are only 2 transfers
in the journey, both times at PAR.
SU. A SURCHARGE OF EUR 30.00 PER DIRECTION WILL BE ADDED TO

THE APPLICABLE FARE FOR TRAVEL ON FRI/SAT/SUN.
A surcharge of EUR 30.00 per direction will be added to the applicable fare for
travel on FRI/SAT/SUN. This surcharge is shown in the fare calculation line as
“Q” since return travel is on 15DEC, which is a Saturday.
TE.TKT ENDORSEMENT

NON ENDO/ - AND - FARE RSTR COULD APPLY - IN THE
ENDORSEMENT BOX.
The original and the reissued ticket must be annotated -

Non endorsable - and - fare restrictions could apply - in the endorsement box.
This is the reason why the ticket shows actual dates of travel in the “not valid
before” and “not valid after” boxes.
PE.PENALTIES
CHANGES
BEFORE DEPARTURE
CHARGE EUR 150.00.
NOTE -
A CHANGE IS A ROUTING / DATE / FLIGHT MODIFICATION WHEN MORE THAN ONE
FARE COMPONENT IS BEING CHANGED THE HIGHEST PENALTY OF ALL CHANGED FARE
COMPONENTS WILL APPLY
CANCELLATIONS
ANY TIME
TICKET IS NON-REFUNDABLE IN CASE OF CANCEL.
TICKET IS NON-REFUNDABLE IN CASE OF NO-SHOW.

CO. COMBINABILITY
END-ON-END NOT PERMITTED. SIDE TRIPS NOT PERMITTED
-TO FORM ROUND TRIPS
-TO FORM CIRCLE TRIPS
A MAXIMUM OF TWO INTERNATIONAL FARE COMPONENTS
PERMITTED.
PROVIDED -
COMBINATIONS ARE WITH ANY FARE FOR CARRIER AF/KL/KQ
BETWEEN NETHERLANDS/AREA 2 WITH ANY RULE IN ANY PUBLIC
TARIFF.
End-on-end not permitted. Side trips not permitted. Consider a journey AMS-
AF-X/PAR-AF-LOS-X/PAR-LON-YY-AMS. If you recall stopovers are not
permitted to/from Netherlands. Unfortunately, the pricing system would not be
able to combine AMS-LOS + LOS-X/PAR-LON + LON-AMS. AMS to LON is
defined as an end-on-end fare.
Nor can the system construct the fare by breaking up a journey as follows, to
allow a stopover at LON:
AMS-AF-X/PAR-AF-LOS-AF-PAR-(AF-LON-AF-PAR)-AF AMS.
PAR-LON-PAR becomes a side-trip.
Key Learning Point

Although PEX fare conditions publish the purchase and ticketing deadline, the
automated pricing displaying “last ticket date…” always overrules rule
condition.
12.14.4 Advance Purchase Excursion (APEX) Fare

This type of restricted fare may apply to one way or return travel (APOW and
APEX respectively).
Advance Purchase Excursion fares have the same restrictions as PEX and
Excursion Fares. But the following additional conditions may apply:
• Advance reservations and payment must be made a number of days/
weeks before departure.
• Changes to reservations are usually not permitted before and after
departure, once ticketed (subject to fare conditions and or payment of
change fees, if any).
To stimulate early demand and sales, APEX fares require advance reservation
and payment made a number of days before departure.

Case Study 5
A request for travel from BRU to JNB on SN prompts the following booking and
fare display.
SN7009 Q 27MAR 3 BRUFRA HK1 1905 2005 27MAR E SN/PEY7N5

SN7206 Q 27MAR 3 FRAJNB HK1 2200 0930 28MAR E SN/PEY7N5
SN7207 Q 04APR 4 JNBFRA HK1 1900 0535 05APR E SN/PEY7N5
SN7016 Q 05APR 5 FRABRU HK1 0725 0820 05APR E SN/PEY7N5
FQDBRUJNB/ASN
ROE 0.862490 UP TO 1.00 EUR TAX MAY APPLY
03OCT**03OCT/SN BRUJNB/NSP;EH/TPM 5517/MPM 6628
LN FARE BASIS OW EUR RT B PEN DATES/DAYS AP MIN MAXFR
01 LNCBE8 80 L NRF - - + - + 12M R
02 TNCBE8 140 T NRF - - + - + 12M R
03 SNCBE8 210 S NRF - - + - + 12M R
04 WNCBE8 280 W NRF - - + - + 12M R
05 VRCBE8 350 V + - - + - SU 12M R
06 QNCBE8 430 Q NRF - - + 1 SU 12M R
07 QRCBE8 580 Q + - - + - SU 12M R
08 HRCBE8 780 H + - - + - SU 12M R
09 URCBE8 980 U + - - + - - 12M R
10 MRCBE8 1180 M + - - + 1 - 12M R
11 MFFBE8 1280 M - - - + - - 12M R
12 BFFBE8 1600 B - - - + - - 12M R
13 MRCBEOW8 910 M + - - + 1 - - R
14 PNCBE8 1820 P NRF - - + - 3+ 12M R
15 YFFBE8 1950 Y - - - + - - 12M R
16 BFFBEOW8 1120 B - - - + - - - R
LAST TKT DTE 26MAR/23:59 LT in POS - SEE ADV PURCHASE---------------------------------

---------------------------
BRU
XFRA SN 7009 Q Q 27MAR 1905 QNCBE8 27MAR27MAR 2P
JNB SN 7206 Q Q 27MAR 2200 QNCBE8 27MAR27MAR 2P
XFRA SN 7207 Q Q 04APR 1900 QNCBE8 04APR04APR 2P
BRU SN 7016 Q Q 05APR 0725 QNCBE8 05APR05APR 2P
EUR 430.00 27MARBRU SN X/FRA SN JNB249.27SN X/FRA

SN BRU249.27NUC498.54END ROE0.862490
EUR 360.00-YQ XT EUR 30.15-BE EUR 9.00-DE EUR 42.50-RA
EUR 16.00-YR EUR 1.44-EV EUR 14.51-ZA EUR 1.34-UM EUR
EUR 110.52-XT 11.58-WC
EUR 916.52

APPLICATION AND OTHER CONDITIONS

RULE - 023/M400
SN RESTRICTED FARE
FLIGHT APPLICATION UNLESS OTHERWISE SPECIFIED THE FARE COMPONENT MUST BE ON ONE OR
MORE OF THE FOLLOWING ANY SN FLIGHT, ANY LH FLIGHT.
APPLICATION
AREA
THESE FARES APPLY WITHIN AREA 2.
CLASS OF SERVICE
TYPES OF TRANSPORTATION
THIS RULE GOVERNS ONE-WAY AND ROUND-TRIP FARES.
FARES GOVERNED BY THIS RULE CAN BE USED TO CREATE ONE-WAY/ROUND-TRIP/CIRCLE-TRIP/OPEN-
JAW JOURNEYS.
The fare is valid only on Brussels Airlines and/or Lufthansa in economy class.
All types of journeys are covered by the rule.
ADVANCE RES/TICKETING
FOR QNC- TYPE FARES
RESERVATIONS FOR ALL SECTORS AND TICKETING ARE REQUIRED AT LEAST 1 DAY BEFORE
DEPARTURE.
NOTE -
WAITLIST NOT PERMITTED AT TIME OF TICKETING. TIME OF TICKETING IS DEFINED ACCORDING TO
TICKET TIME LIMIT. IF TTL IS NOT RESPECTED ALL SEGMENTS WILL BE CANCELLED.
DUE TO AUTOMATED TICKETING DEADLINE CONTROL DIFFERENCE COULD EXIST BETWEEN THE FARE
RULE LAST TICKETING DATE AND THE SYSTEM GENERATED TICKETING DEADLINE MESSAGE. THE MORE
RESTRICTIVE TICKETING DEADLINE APPLIES.
ANY RESERVATION FOR FARES WITH TICKETING DEADLINE NOT TICKETED AT LEAST 26 HOURS
BEFORE DEPARTURE WILL BE CANCELLED. THIS APPLIES IN ADDITION TO THE ABOVE MENTIONED
DEADLINES.
RESERVATIONS MADE WITHIN 26 HOURS BEFORE DEPARTURE REQUIRE TICKETING AT THE SAME TIME.
Reservations and ticketing must be done at least 1 day before departure. See
the fare display: the column AP shows “1” and so does the rule. Moreover, the
last ticket date in the booking display is shown as: LAST TKT DTE
26MAR/23:59 LT, which is 1 day before departure on 27MAR. Non-compliance
with the rule will lead to cancellation of all reservations.
MINIMUM STAY
FROM/TO JNB FOR ROUND TRIP Q- TYPE FARES
TRAVEL FROM LAST STOPOVER MUST COMMENCE NO EARLIER THAN 1201AM ON THE FIRST SUN AFTER
See the fare display: minimum stay column (MIN) shows SU. The minimum
stay is defined as the “Sunday rule”, which means return travel from the last
stopover point may not begin before the first Sunday after arrival. Departure
from fare origin is on 27MAR which is a Wednesday. The return journey from
JNB may not begin before midnight on the first Sunday after departure which
would be 31MAR. Supposing the client departed from origin on Monday
25MAR. He would have to wait till Sunday 31MAR to begin the return journey.
If the client began his journey on Saturday 30MAR, he could begin his return
journey the next day which is the first Sunday after arrival. There are no
stopovers in this journey so the minimum stay applies to the entire return sector
JNB-X/FRA-BRU.

MAXIMUM STAY
TRAVEL FROM LAST STOPOVER MUST COMMENCE NO LATER THAN 12 MONTHS AFTER DEPARTURE FROM
FARE ORIGIN.
See the maximum stay column (MAX) in the fare display, under which we see
the number 12 (months). The 12th month after departure is also March and the
date of departure 27MAR. Therefore, the ticket is valid up to 27MAR of the
following year. Note, the last stopover is also the turnaround point which means
travel JNB-x/FRA-BRU must begin by 27MAR but he may arrive a day later
due to the flight schedule.
STOPOVERS
FOR Q- TYPE FARES
2 STOPOVERS PERMITTED IN EACH DIRECTION AT EUR 75.00 EACH.
This is not a mileage-based fare. We must check the routing condition to know
which cities are allowed as stopovers. Notice, even though this is an APEX
fare, it is a little more flexible than some of the earlier fares we examined.
Although it is helpful to have a general definition of different types of restricted
fares, it is critical to read fare conditions.
TRANSFERS
UNLESS OTHERWISE SPECIFIED UNLIMITED TRANSFERS PERMITTED ON THE PRICING UNIT
NOTE - AS PER SPECIFIED PUBLISHED ROUTINGS.
Once again, consult the route map to see which cities may be transfers and
which cities may have a surface sector to qualify as an embedded surface
sector.
COMBINATIONS
-TO FORM ROUND TRIPS/CIRCLE TRIPS.
PROVIDED -
COMBINATIONS ARE WITH ANY FARE FOR CARRIER SN IN ANY RULE IN THIS TARIFF.
Assume we wanted to combine ½ return fare WNCBE8 with ½ return QNCBE8,

we could do so provided the rules of fare WNCBE8 permit the combination.
PENALTIES
CANCELLATIONS
ANY TIME
TICKET IS NON-REFUNDABLE.
CHANGES
ANY TIME
CHARGE EUR 130.00 FOR REISSUE.
CHANGE FEE APPLIES FOR EVERY SINGLE CLOSED REISSUE/REVALIDATION/REBOOKING TRANSACTION.
In the fare display, look under the column PEN. You will see the letters NRF
which means non-refundable.
TICKET ENDORSEMENT
VALID ON SN ONLY - AND - FARE RESTRICTIONS APPLY - IN THE ENDORSEMENT BOX.

This remark is essential to make the client aware that any changes to the ticket
will invite penalties.
CHILDREN DISCOUNTS
ACCOMPANIED CHILD 2-11 - CHARGE 75 PERCENT OF THE FARE. TICKET DESIGNATOR - CH AND
PERCENT OF DISCOUNT.
NOTE - FOR CHILDREN TURNING 12 YEARS ENROUTE - ADULT FARE HAS TO BE USED FOR THE
ENTIRE JOURNEY.
OR - INFANT UNDER 2 WITHOUT A SEAT - CHARGE 10 PERCENT OF THE FARE.
TICKET DESIGNATOR - IN AND PERCENT OF DISCOUNT.
NOTE - FOR INFANTS TURNING 2 YEARS ENROUTE - DUE TO SAFETY REGULATIONS - A BOOKED SEAT
WILL BE REQUIRED FOR THE REMAINING PORTIONS OF THE JOURNEY. WHEN A SEPARATE SEAT IS
REQUIRED ON A PORTION OF THE JOURNEY - CHILD FARE HAS TO BEUSED FOR THE ENTIRE
JOURNEY.
Children, who are over 2 years but have not yet completed their twelfth
birthday, pay 75% of the fare–ticket entry CH25. Infants are children who have
not completed 2 years and are not occupying a seat, pay 10% of the fare; ticket
entry IN90. However, in case the child turns 12 years enroute, the full adult fare
must be paid for the entire journey. Similarly, an infant turning 2 years during
the journey, must pay full child fare and may occupy a seat.
Key Learning Point

Advance Purchase Excursion fares have the same restrictions as PEX and
Excursion Fares, but also require the fare to be booked and purchased a
number of days/weeks before departure. These types of fares stimulate early
demand for travel as they cannot be purchased last minute.
Case Study 6
LAST TKT DTE 13SEP /18:46 LT in POS - SEE ADV PURCHASE
------------------------------------------------------------

FRA
DEL LH 760 W 23OCT 1340 WRCDE 23OCT23OCT 1P
FRA LH 761 W 28OCT 0245 WRCDE 28OCT28OCT 1P
EUR 540.00 23OCTFRA LH DEL312.58LH FRA312.58NUC

625.16END ROE0.863772
EUR 320.00-YQ XT EUR 41.97-OY EUR 9.00-DE EUR 33.48-RA
EUR 16.00-YR EUR 0.95-IN EUR 3.27-WO
EUR 88.67-XT
EUR 964.67
BAG/SEAT/SERVICES AT A CHARGE MAY BE AVAILABLE-ENTER FXK CARD PAYMENT FEES UP TO EUR
15.91 MAY APPLY
BG CXR: LH/LH


10SEP **16AUG /LH FRADEL/NLX;EH/TPM 3804/MPM 5076
06 WRCDE 540W @ - - @ @ @ 12M R
FCL: WRCDE TRF: 4 RULE: M0DE BK: W
PTC: ADT-ADULT FTC: XAW-2ND LEVEL ADVANCE PURCHASE
RU.RULE APPLICATION
LUFTHANSA RESTRICTED FARE
AREA
THESE FARES APPLY FROM AREA 2 TO AREA 3.
CLASS OF SERVICE
Here is another Advance Purchase Excursion fare–APEX, restricted to carrier

LH.
MIN STAY
FOR ROUND TRIP WRCDE TYPE FARES
TRAVEL FROM TURNAROUND MUST COMMENCE NO EARLIER THAN 6DAYS AFTER DEPARTURE FROM FARE
ORIGIN
OR - TRAVEL FROM TURNAROUND MUST COMMENCE NO EARLIER THAN THE FIRST SUN AFTER ARRIVAL
AT TURNAROUND.
Let's interpret the minimum stay rule and how it influences departure and return
travel.
Day of departure Day of return Condition

Monday Sunday THE FIRST SUN AFTER ARRIVAL AT TURNAROUND
Tuesday Sunday THE FIRST SUN AFTER ARRIVAL AT TURNAROUND
Wednesday Sunday THE FIRST SUN AFTER ARRIVAL AT TURNAROUND
Thursday Sunday THE FIRST SUN AFTER ARRIVAL AT TURNAROUND
Friday Sunday THE FIRST SUN AFTER ARRIVAL AT TURNAROUND
Saturday Friday NO EARLIER THAN 6 DAYS AFTER DEPARTURE
Sunday Saturday NO EARLIER THAN 6 DAYS AFTER DEPARTURE
MAX STAY
TRAVEL FROM LAST STOPOVER MUST COMMENCE NO LATER THAN 12MONTHS AFTER
Departure from fare origin is on 23OCT. The ticket is valid for 12 months, until
23OCT of the following year.

ADVANCE RES/TKT
FOR WRCDE TYPE FARES

TICKETING MUST BE COMPLETED WITHIN 24 HOURS AFTER RESERVATIONS ARE MADE.
NOTE -
DUE TO AUTOMATED TICKETING DEADLINE CONTROL
DIFFERENCE COULD EXIST BETWEEN THE FARE RULE LAST TICKETING DATE AND THE SYSTEM
GENERATED TICKETING DEADLINE MESSAGE.
THE MORE RESTRICTIVE TICKETING DEADLINE APPLIES.
Once again the booking record header line gives LAST TKT DTE 13SEP /18:46,
well in advance of the departure date. If the ticket is not issued by the date and
time stipulated, the entire booking will be cancelled.
STOPOVERS
FOR WRCDE TYPE FARES NOTE - GENERAL RULE DOES NOT APPLY
2 STOPOVERS PERMITTED IN EACH DIRECTION AT EUR 75.00 EACH

2 IN AREA 3 IN EACH DIRECTION.
Two stopovers are permitted in Area 3 in each direction. But note that this is a
routing based fare and only those cities mentioned in the route map may be
stopovers.
TRANSFERS/RTGS
UNLIMITED TRANSFERS PERMITTED ON THE FARE COMPONENT
FARE BREAK SURFACE SECTORS NOT PERMITTED AND EMBEDDED SURFACE SECTORS PERMITTED ON THE
FARE COMPONENT.
Transfers are unlimited but only those cities shown in the route map may be
included in the itinerary. Consider the route map 4 * FRA-
MUC/DUS/CGN/ZRH/GVA/VIE-LH-DEL and 4 * DEL-LH-VIE/GVA/ZRH/CGN/DUS/MUC-
FRA. The passenger may travel FRA-LH-X/MUC-LH-DEL-LH-X/VIE-LH-FRA.
Remember stopovers are only allowed in Area 3.
TKT ENDORSEMENT

FARE RESTRICTION MAY APPLY - IN THE ENDORSEMENT BOX.
This remark is an essential part of a restricted fare ticket to make it clear that
penalties apply for any changes, as mentioned in the rule below.
PENALTIES
CANCELLATIONS
ANY TIME
CHARGE EUR 190.00 FOR CANCEL/NO-SHOW/REFUND.

Key Learning Point

Restrictive fares, such as the APEX, offer limited to no flexibility on rebooking
or cancelling a ticket after issuance. As a result, the Ticket Endorsement
element normally includes a statement such as Change/Cancellation Penalty
may apply. Moreover, each coupon's “not valid before” and “not valid after”
boxes display the actual dates of travel.
Study Check 12.14

Refer to the itinerary booked and rule extracts to answer questions 1 to 10.
RP/AMDVS3110/
1.TAYLOR/SARAH MS
2 MS 839 T 18NOV 7 CAIJNB DK1 2300 0705 19NOV E 0 333 M
3 MS 840 T 13JAN 7 JNBCAI DK1 2145 0540 14JAN E 0 333 M
01 TAYLOR/SARAH*
LAST TKT DTE 18NOV - DATE OF ORIGIN

------------------------------------------------------------
CAI
JNB MS 839 T T 18NOV 2300 TRIEG 18NOVNOV 1P
CAI MS 840 T T 13JAN 2145 TRIEG 13JAN13JAN 1P
EGP 2300.00 18NOVCAI MS JNB64.31MS CAI64.31NUC128.62

EUR 112.00 END ROE17.880000
EUR 24.11-YQ XT EUR 141.58-YR EUR 2.44-JK EUR 21.77-QH
EUR 4.36-YQ EUR 7.31-XK EUR 0.87-EQ EUR 7.31-EG EUR
EUR 210.10-XT 1.44-EV EUR 14.48-ZA EUR 1.34-UM EUR 11.56
EUR 350.57 -WC
RATE USED 1EGP=0.048684EUR
BG CXR: MS/MS
> PAGE 2/ 3

03OCT**08SEP19/MS CAIJNB/NLX;EH/TPM 3887/MPM 4664
LN FARE BASIS OW EGP RT B PEN DATES/DAYS AP MIN MAX R
01 TRIEG 2300T @ - - @ - - 12M R
FCL: TRIEG TRF: 34 RULE: AFPR BK: T
PTC: ADT-ADULT FTC: XPX-INSTANT PURCHASE EXCURSION
RU.RULE APPLICATION
EGYPTAIR SUPER SAVING ROUNDTRIP INSTANT PURCHASE
NONREFUNDABLE FARES BETWEEN EGYPT AND AFRICA

APPLICATION
AREA
THESE FARES APPLY
BETWEEN EGYPT AND AFRICA.
CLASS OF SERVICE
MN.MIN STAY
NONE UNLESS OTHERWISE SPECIFIED
MX.MAX STAY

NOTE -
IF DESIRED RETURN FLIGHT CANNOT BE BOOKED AS DATE
IS OUTSIDE OF SYSTEM BOOKING RANGE OF 360 DAYS
IN ADVANCE AN ALTERNATIVE FLIGHT MUST BE BOOKED
FOR TICKET ISSUANCE.ANY LATER REBOOKING TO
DESIRED DATE -WITHIN MAXIMUM VALIDITY- IS ONLY
POSSIBLE IF PERMITTED BY FARE NOTE AND REQUIRES
REBOOKING FEE IF APPLICABLE.
AP. RESERVATIONS ARE REQUIRED FOR ALL SECTORS.

NOTE – WARNING IF PASSENGER FAILED TO TRAVEL -NOSHOW- ON A BOOKED SECTOR
MS RESERVES THE RIGHT TO CANCEL ALL MS REMAINING SECTORS.
SO.STOPOVERS
NO STOPOVERS PERMITTED
TF.TRANSFERS/RTGS
BETWEEN CAI AND AFRICA
TRANSFERS NOT PERMITTED ON THE FARE COMPONENT

FARE BREAK AND EMBEDDED SURFACE SECTORS NOT PERMITTED ON
THE FARE COMPONENT.
TE.TKT ENDORSEMENT
TICKET ENDORSEMENTS ARE ALLOWED, CHECK WITH ISSUING CARRIER
PE.PENALTIES
BETWEEN EGYPT AND AFRICA FOR TRIEG TYPE FARES

CANCELLATIONS
ANY TIME
CHARGE EGP 700.00 FOR CANCEL/REFUND.
CHARGE EGP 750.00 FOR NO-SHOW.
CHANGES
ANY TIME
CHARGE EGP 650.00 FOR REISSUE/REVALIDATION.

1. Which fare type is being offered?

(a) Advance purchase excursion
(b) Instant purchase excursion
(c) Regular excursion
(d) Unrestricted normal fare
2. The client may not leave JNB prior to

(a) 19NOV
(b) 20NOV
(c) 25NOV
(d) Any time after arrival
3. The sector JNB-CAI must

(a) be completed by 01NOV2019
(b) begin by 31OCT2019
(c) begin by 18NOV2019
(d) be completed by 18NOV2019
4. Which statement is true for this journey?

(a) Unlimited stopovers are allowed free of charge
(b) 2 free stopovers are allowed
(c) No stopovers are allowed
(d) 2 free stopovers are allowed, one in each direction
5. Which statement is false for this journey?

(a) A reissue or rebooking will involve a penalty of EGP 750
(b) Cancellation of the ticket will result in a penalty of EGP 800
(c) No Show charges are EGP 700
(d) Rebooking of a flight will incur a penalty of EGP 650
6. The currency of payment is

(a) Euro Dollar
(b) Egyptian Pound
(c) South African Rand
(d) US Dollar

7. The “XT” in the fare calculation area indicates

(a) This is a fuel surcharge
(b) This is an Egyptian tax
(c) This is the sum of applicable taxes
(d) This is a carrier tax
8. These fares apply between

(a) CAI and CPT
(b) JNB and NYC
(c) LON and BKK
(d) SIN and JNB
9. A transfer is defined as a
(a) city to ticketed point which is not a stopover
(b) connecting point on the same carrier
(c) city/airport which is between the fare construction points
10. A journey CAI-X/NBO-JNB is not permitted at this fare. TRUE or FALSE?

(a) True
(b) False

Restricted fares are created to encourage travel between two regions or areas.
Since they are discounted fares, there are restrictions such as limited
stopovers or no stopovers permitted; limited number of transfers; minimum stay
to ensure that a reasonable amount of time is spent out of the home country; a
shorter ticket validity than a normal fare; advance purchase requirements
which guarantees the carrier a seat; penalties for change in booking. Many
restricted fare tickets are non-refundable. There are restricted fares for every
cabin class and journey type (Unit 12.14.1).
There are many types of restricted fares, but the three main types are
Excursion (EXCN), Instant Purchase Excursion (PEX) and Advance Purchase
Excursion (APEX). There are some differences in the conditions for difference
between the excursion fare, instant purchase and advance purchase fares.
Carriers insist on advance purchase of all types of restricted fares with
penalties attached for any changes. (Units 12.14.2 to 12.14.4).
Try activities 17 to 24.

12.15 Electronic Miscellaneous Documents
• Identify the participants in the EMD process (Unit 12.15.1).

• Illustrate different uses for the Electronic Miscellaneous Document (EMD)
(Unit 12.15.2).
• Recognize EMD data elements (Unit 12.15.3).
Unit Learning • Decode Reason for Issuance Codes using the PAT General Rules book.
Objectives
The airline industry has adopted standards for an Electronic Miscellaneous
Document (EMD). EMDs are miscellaneous non-ticket documents which work
in a similar manner to tickets.
Like tickets, EMDs are paperless and virtual documents. EMDs are issued by
GDS systems to collect for ancillaries. Ancillary revenue is income derived from
optional charges airlines pass onto customers outside of the ticket price. These
can include checked baggage, in flight food, internet, reservation change fees
and other amenities.
Additionally, the EMD is the virtual document issued to collect rebooking fees.
Similarly, the EMD is used for ticket refund purposes.
12.15.1 Participants in the EMD Process

The same key players involved in creating and handling a ticket, are also
involved with the EMD, such as
• The Passenger–the person who is paying the fee, purchasing the service
or receiving the credit.
• Validating Carrier–the issuing airline whose numeric airline code pre-
cedes the document number. The controlling entity for the EMD, also the
carrier responsible for storing and maintaining the master copy of the EMD
on its database.
• Marketing Carrier–for a flight-related service, the carrier marketing the
flight in a code share situation.
• Operating Carrier–the airline whose Airline Designator is recorded as the
service provider on the electronic value coupon(s).
• Travel Agency–the company acting as agent on the airlines behalf.
For the most part the key players have the same role and interact with each
other in exactly the same way as in the ticket.
12.15.2 EMD Reasons for Issuance Code (RFIC)

Each EMD features an important data element called the Reason for Issuance
Code (RFIC). The Reason for issuance Code is a standard code, set by IATA
and recognized by all airlines and their systems. It identifies the general reason
why the EMD is issued. Each EMD displays only one Reason for Issuance
Code (RFIC), represented by a single, standard letter understood by any
airline:
A Air transportation–to be used for all air transportation related subcodes
(for example, upgrading to a higher fare).
B Surface Transportation/Non-Air services (for example Bus, Car Hire).

C Baggage (for example, excess, fishing, biking or other sport equipment).

D Financial Impact (for example reservation change fee or refundable
balance).
E Airport Services (for example airport lounge access).
F Merchandise (for example, T-shirt).
G Individual airline use for inflight Services (for example baby cot, bever-
ages and meals).
12.15.3 Reason for Issuance Sub-Code

While the general use of an EMD is identified by a Reason for Issuance Code,
the Reason for Issuance Sub-Code details its specific use.
In addition to the RFIC, there are also Reason for Issuance Sub-Codes
(RFISC). Refer to General Rule 17.13 in the PAT TE for the list of decodes.
Examples:
RFIC: E (reason for issuance code for Airport Services)
RFISC: 0BH (reason for issuance subcode for Unaccompanied Minor which is
associated to the E (RFIC for Airport Services)).
Both the RFIC and RFISC are mandatory for the creation of either EMD-A or
EMD-S.
An individual EMD may only be issued with a single Reason for Issuance
Code. But if a passenger wishes to purchase two additional services that are
identified by different RFICs, two separate EMDs would have to be issued.
Example:
Excess baggage allowance–RFISC is C (Baggage group)
Upgrade–Reason for Issuance Code A (Air Transportation group)
12.15.4 Types of EMD

There are 2 types of EMD transactions:
1. EMD-A (Electronic Miscellaneous Document-Associated)
2. EMD-S (Electronic Miscellaneous Document-Stand-Alone)
The type of EMD used is determined by the airline, with the exception that
industry standards mandate:
• EMD-A is always used for excess baggage;
• EMD-S is used for residual value, group deposit, amendment fee,
refundable balance, unspecified transportation, pre-paid ticket advice,
unpaid taxes/fees/charges and airport service fees.
For all other sundry or ancillary charges, an airline can determine what type of
EMD to issue, either EMD-A or EMD-S. Sometimes the type of EMD to be
issued may seem obvious, but at all times it should be noted that in order to
interline these charges, an interline partner needs to be able to accept the
same EMD type for the same type of charge.
Unit 12.15: Electronic Miscellaneous Documents 1107

12.15.4.1 EMD-Associated (EMD-A)

An EMD-A can be issued for the collection of miscellaneous charges such as
excess baggage charges that are linked to the passenger's ticket. The coupons
of an EMD are synchronized with the coupons of the ticket. An EMD-A may be
issued to cover the collection of the following services or products:
Like tickets, EMDs reside in the Validating Carrier's database. They look similar
to tickets, holding single or multiple value coupons and they permit interlining.
They display their own EMD document number as well as date and place of
issue. EMDs can be voided, refunded, exchanged and reissued. Each EMD
coupon displays a monetary value and status code.
Status codes include:
• Open
• Used
• Refunded
• Voided, etc.
An EMD-A is issued for the collection of miscellaneous charges linked to a
coupon and PNR Special Service Request (SSR). An EMD-A requires an SSR
(Special Service Request) entry in the passenger's PNR for a service request
associated to a flight segment in the PNR itinerary.
The EMD-A can be issued at the same time as the PNR's ticket or after the
ticket is issued. The coupons of an EMD-A are synchronized with the coupons
of the ticket. In other words, each EMD-A coupon is directly linked to an
individual flight coupon. However, there is no automatic synchronization
between EMD and ticket coupons when a ticket coupon is altered.
Currency Conversion
Where the EMD is issued for an ancillary, the Additional Services Filed Fee
Amount is converted it into the currency of payment using the latest BSR.

Example 1: EMD for bicycle checked in as baggage
RP/OSL1A2003/
1.SAETRE/MAGNUS MR
2 SK 4047 B 18NOV 6 OSLSVG HK1 730P 825P CR9 0
3 AP OSL 85 33 34 33-AMADEUS TRAVEL-A
4 AP OSL 85 55 23 82-H
5 TK OK16OCT/OSL1A2003//ETAY
6 SSR BIKE SK HK1 1 MOUNTAIN BIKE 20KG 150CMX70CMX30CM/S2
7 FA PAX 117-8222300631/DTSK/EUR60.00/16OCT/OSL1A2003/19420483/E2
8 FB PAX 3000001637 TTP/TTM/RT OK ETICKET/EMD ADVISE PSGR TO BRING
FOID
FOP CASH
Figure 12.15.1—Amadeus PNR with request to transport bicycle as baggage
• EMD document number 1178222300658 and value for bike transport

• SSR (Service Request) for bike to be checked in
Important EMD data elements include:

EMD Entry Explanation
TYPE-A EMD type: Associated
RFIC-C Baggage Reason for Issuance Code
RFISC-0EC Reason for Issuance Subcode
EMD-1178222300658 TYPE-A SYS-1A LOC-C3XGGW

INT- FCI-0 2 POI-OSL DOI-16OCT IOI-23420843
PAX- SAETRE/MAGNUS MR
RFIC-C BAGGAGE
REMARKS
CPN 1 RFISC-0EC SK OSLSVG S-O
DESCRIPTION-BIKE VALUE-60.00
PRESENT TO-SAS
PRESENT AT-OSL
ICW-1178222300631C1 (A)
EXCESS BAGGAGE- RATE PER UNIT-EUR 60
SERVICE REMARKS
FARE F EUR 60.00
EQUIV
EXCH VAL
TAX-
FOP CASH
TOTAL EUR 60.00
Figure 12.15.2—Amadeus EMD-A issued for bicycle transported as baggage

Example 2: Pet in Cabin
1.2BRETT/MALCOM MR/ANGIE MRS

1 BA 11F 25DEC 7 LHRSIN HK2 1200 0805 26DEC 1 /DCBA*ZL015T /E
TKT/TIME LIMIT
1.T-19DEC-Y2VS*BAB
PHONES
1.LHR0171 838 2778-A
2.LHR0171 388 8285-H
ANCILLARY EXISTS *AE TO DISPLAY
GENERAL FACTS
1.SSR PETC BA HK1 LHRSIN0011F25DEC
OSL.OSL*APL 1043/24NOV KRTWPL
Figure 12.15.3—Sabre PNR with request to have a pet dog as carry-on baggage
PNR Entry Explanation

ANCILLARY EXISTS *AE TO When a special service request for an ancil-
DISPLAY lary service is made, this is Air Extra (AE) field
in the PNR
1. SSR PETC BA HK1 Request to transport a pet dog in the First
LHRSIN0011F25DEC class cabin on flight BA11 on 25DEC
If a ticket coupon is altered (exchanged/reissued/revalidated), the associated
EMD coupon must be altered as a separate transaction.
An EMD-A or even an EMD-S may be issued to cover the collection of services
or products such as:
• excess baggage
• automatic cabin upgrades
• oxygen
• unaccompanied minors
• meals and other optional in-flight services
• sport equipment
• pets in cabin
• special seat assignments

SABRE ELECTRONIC MISCELLANEOUS DOCUMENT RECORD

PNR:KRTWPL
EMD:1252931177355 ISSUED:19DEC LON PCC:ABC1 IATA:12345678
NAME:BRETT/MALCOM MR FF:
NAME REF: TOUR ID:
FOP:AXXXXXXXXXXXX0221*XXXX/821364
CPN A/L BRDOFF DATE QTY AIR EXTRA STAT
1 BA LHRSIN 25DEC 1 IN-FLIGHT ENTERTAINMENT OPEN
BASE AMT GBP196.00 EMD TTL GBP196.00

EQUIV AMT GBP196.00
LON BA SIN 10.00 END
RFIC - G
ENDORSEMENTS/RESTRICTIONS - NON-REFUNDABLE/NON-EXCHANGEABLE
EMD TYPE - ASSOCIATED
ASSOCIATED ELECTRONIC TICKET NUM: 1251090455335
CPN ASSOCIATION
ETKT CPN EMD CPN FEE CARRIER REFUND FOP SIMULT TKTG
1 1 BA
Figure 12.15.4—Sabre EMD-A issued to pre-pay a pet transported in aircraft cabin
EMD Data field entries:

RFIC - G Reason for issuance code: airline inflight service
(transportation of a pet in the aircraft cabin)
Example 3: EMD-A for prepaid extra bag
Let us say the booking record contained the following details
UE3NX4/CC SYDOU Y2VSCC AG 77341010 03NOV

1.1HAY/PAULMR
1. UA 840 Y 26NOV SYD- HK1 1130 0630 O* E TU
LAX
2. UA 839 Y 03DEC LAX- HK1 2240 *0845 O* E TU
SYD
** VENDOR LOCATOR DATA EXISTS ** >*VL•
** SERVICE INFORMATION EXISTS ** >*SI•
FONE-SYDT*02 9992 1234
2. SYDB*02 9820 1001
TKTG-T*SYD07NOV2125Z AB AG
** SPECIAL SERVICE REQUIREMENT **

SEGMENT/PASSENGER RELATED
S 1. UA 0816 C 26NOV SYDLAX
P 1. HAY/PAULMR ASVC HK 1 C/0BT/XBAG/EXCESS BAGGAGE
/A/0168113002506
Figure 12.15.5—Travelport Galileo booking file for a passenger pre-paying the
check-in of one extra bag at SYD

PNR fields:
S 1. UA 0816 C 26NOV SYDLAX Confirmed request for transportation of excess
P 1. HAY/PAULMR ASVC HK 1 checked baggage
C/0BT/XBAG/EXCESS BAGGAGE
/A/0168113002506
0168113002506 HAY/PAULMR UE3NX4/1P/T4A 77341010
************** EMD 0168113002506 COUPON 1 DETAILS **************
RFI: C-EXCESS BAGGAGE

DATE OF SERVICE: 03NOV QUANTITY OF SERVICES/FEES: 1
CPN AMT CPN STATUS OPEN
AUD 100.00 OPEN FOR USE
PRESENT TO: UNITED AIRLINES
PRESENT AT: SYDNEY/SYD
ASSOCIATED TO TKT: 1 016 8113002492
Figure 12.15.6—Travelport Galileo EMD-A issued for transportation of the extra
check-in bag at the cost of AUD100.00
EMD Data field entries:

0168113002506 EMD document number
AUD 100.00 Amount collected for the extra checked bag
ASSOCIATED TO TKT: 1 016 8113002492 Ticket number for flights that will carry the extra
baggage

12.15.4.2 The Standalone EMD (EMD-S)

An Electronic Miscellaneous Document—Standalone is issued for the collec-
tion of miscellaneous charges that are not lifted with a flight coupon at the time
of check-in.
The EMD-S may be issued to cover collections including but not limited to the
following services or products:
• collection of penalties and fees, e.g. for a cancellation, no show, upgrading,
reservation change or rerouting
• unspecified air transport and/or excess baggage (not for travel agents)
• refundable balances
• denied boarding compensation
• land arrangements
• car hire/rental
• deposits/down payments
• hotel accommodation
• purchase of articles e.g. pet kennels and bike boxes etc.
• optional and ancillary services (e.g. enhanced meal service, seating,
priority check-in etc. as defined by the carrier) which are not to be
considered as lifted with the ticket
An EMD-S is valid for one year from date of issue unless an exception to the
contrary is filed by the carrier in its tariff. Airlines may determine that the
product or service being sold is to be deemed ‘consumed’ at issuance time.
In such cases the EMD-S coupon(s) will be converted to ‘FLOWN/USED’
immediately on or shortly after issuance.
For this Module, only the EMD-S for change of reservation will be discussed.

Example 4: Transaction with a Reservation Change Fee

The passenger holding the ticket displayed in the specimen below wishes to
change the return date to 29NOV.
There is a rebooking fee of EUR100.00 to be collected in an EMD-S.
In the PNR, there is no SSR element shown that is associated with the EMD-S.
Instead an auxiliary element or OSI (Other Service Information) is created
which is not tied to a flight segment in the ET below.
TKT: 074 1086557216 NAME: HAGEDOORN/FEMKEMS

CC: -CK FF: 02147483647
ISSUED: 06NOV FOP: -CK
PSEUDO: Y2VS PLATING CARRIER: KL ISO: NL IATA: 987654321
USE CR FLT CLS DATE BRDOFF TIME ST F/B FARE CPN
OPEN KL 587 M 16NOV AMSLOS 1320 OK YLPX2M 981.48 1
OPEN KL 588 M 30NOV LOSAMS 2255 OK YLPX2M 981.48 2
RESERVATION CHANGE FEE EUR100.00

FARE EUR 1495.00
TAX EUR 13.22 RN
TAX EUR 2.00 VV
TAX EUR 12.78 CJ
TAX EUR 25.91 QT
TAX EUR 1548.91
FC 06NOV AMS KL LOS M981.48 KL AMS M981.48NUC1962.97END ROE0.761600

Figure 12.15.7—Sample Travelport Galileo ticket issued for PEX Fare from AMS to
LOS

ET data fields:
YLPX2M Fare basis code identifies that a PEX fare is ticketed
RESERVATION CHANGE FEE EUR100.00 Endorsement/restriction field advises that a reser-
vation change fee of EUR100.00 applies
Unlike the EMD-A, the EMD-S is not linked to a particular ticket coupon. No
SSR element is added to the PNR for an EMD-S. Instead an auxiliary or OSI
(other service information) element is created. Such auxiliary elements are not
associated to a flight segment in the PNR itinerary. See the EMD below for an
example.
0741086542345 HAGEDOORN/FEMKEMS P3SSV5/1G/Y2VS 987654321

*****************EMD 0741086542345 COUPON 1 DETAILS *******************
RFI: D-98F REBOOKING

FEE
DATE OF SERVICE: QUANTITY OF SERVICES/FEES:
CPN AMT CPN STATUS ESAC
EUR 100.00 FLOWN / USED 160KVHB5CYITY
PRESENT TO: KLM ROYAL DUTCH AIRLINES
PRESENTA AT: LAGOS/LOS
**************************** EMD DOCUMENT DETAILS **********************
EMD FARE DATA

BASE: EUR 100.00
EQUIV:
TOTAL: EUR 100.00
FOP: CASH
NAME: HAGEDOORN/FEMKEMS
GDS PNR: 1G/P3SSV5
CARRIER PNR: 1A/Q8282G
AGENCY:Y2VS TICKETING AGENT ID: 10 IATA NUMBER: 987654321

NAME/PLACE OF ISSUE: ABC TRAVEL NL
DATE OF ISSUE:15NOV
RELATED TO TKT: 0741086557216
Figure 12.15.8—Travelport Galileo EMD-S issued to collect the reservation

change fee

EMD data fields:

EMD 0741086542345 COUPON 1 DETAILS EMD document number
RFI: D-98F Reason for issuance code
FLOWN / USED EMD coupon status shows flown status at time of
issuance
BASE: EUR 100.00 EMD value
RELATED TO TKT: 0741086557216 Link to associated ticket number affected by the
reservation change
Key Learning Point

When the EMD-S is issued to collect a rebooking or cancellation penalty, it
references the ticket number affected by the reservation change.
Example 5: Transaction with a rebooking fee (reservation change fee)

Let's examine the collection of a rebooking fee on a Sabre ticket. The ticket
indicates that a reservation change fee of USD 100.00 applies to the ticketed
fare.
ELECTRONIC TICKET RECORD

INV:437104 CUST: PNR:BYXUEL
TKT:0161090455335 ISSUED:07NOV PCC:Y2VS IATA:987654321
NAME:OGILVY/BERNARD MR FF:NFX33976
NAME REF:
FOP:*VIXXXXXXXXX5221Y12/YY
CPN A/L FLT CLS DATE BRDOFF TIME ST F/B STAT
1 UA 705 B 25NOV SFOORD 1715 OK BA7 OPEN
2 UA 810 B 28NOV ORDSFO 1330 OK BA7 OPEN
NONREF/CHG SUBJ TO USD 100/FEE /VLD UA ONLY

FARE USD 1127.46
TAX USD 84.54 US
TAX USD 9.00 XF
TAX USD 5.00 XA
TAX USD 5.60 AY
TOTAL USD 1231.60
Figure 12.15.9—Sample Ticket with rebooking restrictions

ET data elements
NONREF/CHG SUBJ TO USD 100/FEE PLUS FARE endorsement/restriction data element with reservation
DIFF/VLD UA ONLYNON REF change restrictions
Suppose that the passenger wishes to change the return flight to depart later
on the same date:
1 UA 705B 25NOV 1 SFOORD HK1 1715 2317 /DCUA*QY9266 /E

2 UA 745B 28NOV 4 ORDSFO HK1 1745 2016 /DCUA*QY9266 /E
The ticket will be exchanged or revalidated, but an EMD will be issued to collect
the rebooking fee of USD100.00.
ELECTRONIC MISCELLANEOUS DOCUMENT RECORD

INV: CUST: PNR: BYXUEL
EMD: 0161090826659 ISSUED: 14NOV PCC: Y2VS IATA: 987654321
NAME: OGILVY/BERNARD MR FF
NAME REF: TOUR ID:
FOP: AXXXXXXXXXXXX3442*XXXX/410214 S
AIR EXTRA:RESERVATION CHANGE FEE

RFIC: D/FINANCIAL IMPACT
CPN:1 QTY: STATUS:USED
PRESENT TO:UNITED AIRLINES

PRESENT AT:ORD
BASE AMT:USD100.00 EMD TTL:USD100.00

TAX AMT: EQUIV AMT:USD100.00
EMD TYPE:STAND-ALONE
REFERENCED ELECTRONIC TICKET NUM:0161090455335
Figure 12.15.10—Sabre EMD-S document issued to collect a reservation
change fee
Examine the EMD document displayed in Figure 12.15.10. What is the EMD
document number? What is the status of the EMD coupon? What reason for
issuance code is displayed?
Key Learning Point

The Electronic Miscellaneous Document (EMD) may be used to document the
collection of cancellation penalties or reservation change fees such as
reservation change fees and other miscellaneous charges that are not
associated with a particular flight coupon.

Try activities 25.
Study Check 12.15
TRUE or FALSE?
1. The collection of a reservation change fee is possible
through the EMD-A transaction.
2. D is the RFIC for Airport Services.
3. The place of document issue is displayed on EMDs.
4. RFISC for unaccompanied minor extra services is 0BH.
5. 0LV is the RFISC for No Show Fee.

• The Electronic Miscellaneous Document (EMD) is a versatile accountable
document. It is an excess baggage ticket, special service ticket, tour order,
reservation change fee collection, all rolled into one.
• Each EMD displays a reason for issuance code (RFIC) identifying the
reason why the EMD is issued. There are two types of EMDs: associated
(EMD-A) and stand-alone (EMD-S).
• An EMD-A is issued for the collection of miscellaneous charges linked to
an electronic coupon and PNR Special Service Request (SSR).
• Unlike the EMD-A, the EMD-S is not linked to a particular ticket coupon.
• The EMD-S is commonly issued to collect rebooking fees when the
ticketed fare carries a restriction on flight/date changes.

12.16 Consolidator and Net Fares
• Distinguish between IATA and non-IATA travel agents (Unit 12.16.1).

• Understand the history of Consolidator (Net) fares (Unit 12.16.2).
• Define what is meant by Negotiated or Private Fares and their advantages
(Unit 12.16.3).
Unit Learning • Explain the net remit methods (Unit 12.16.4).
Objectives
• Explain how to issue tickets using carrier's private/net fares (Unit 12.16.5).
you will be able to: • Describe net ticket refunds (Unit 12.16.6).

Having studied normal and special published fares, you already have a solid
understanding of public air fares. However, in most countries, there are other
fares in the market available through a certain type of commercial wholesaler,
known as a consolidator. Negotiated fares, for consolidators, corporations and
tour operators are distributed privately.
Consolidators play an important role in the distribution of airline products
particularly in international markets where ‘published’ fares have traditionally
been higher than private tariffs. Use of a consolidator Website allows the travel
agent to mark up the price before advising the consumer of the final price. The
idea is that smaller agencies can benefit from the negotiating power of high
volume bookers without the requirement for an IATA licence. The first part of
this Unit explains the difference between an IATA and a non-IATA agent.
12.16.1 IATA and Non-IATA Travel Agents

12.16.1.1 The IATA Travel Agent
The purpose of IATA accreditation is to formally recognize travel agents that
are authorized to sell and issue airline tickets on behalf of IATA member
airlines. In the USA, a similar system is run by Airline Reporting Corporation or
ARC.
Strict criteria apply when agents wish to be recognised by IATA. Once
accredited these agents are given a unique numeric code which allows instant
recognition and identification of their agency's ticket sales transactions. It also
gives the agency access to airlines' seat inventory, fares and rules, ticketing
facilities and access to and use of the Billing and Settlement Plan (BSP) in their
country or area. Accreditation also offers the agency IATA standard practices
and procedures, such as ticket refunds when applicable.
Key Learning Point

IATA-accredited agents are assigned a unique numeric code which allows
instant recognition and identification of their agency.
Unit 12.16: Consolidator and Net Fares 1119

12.16.1.2 The Non-IATA Travel Agent

Certain travel agents may be part of a larger franchise, a corporate travel
management company (TMC) or buying group; hence, do not need to issue
tickets in-house; or they simply do not seek IATA accreditation to run their
businesses. However, any agent who wants to be recognized and rewarded for
thier supplier sales and be part of the travel distribution system will also want to
be formally identified. To address this, a separate recognition mechanism has
been set up by IATA called the Travel Industry Designator Service (TIDS). To
apply for a TIDS code an agency must be non-IATA, book through a GDS,
book with travel suppliers worldwide, and meet other IATA-defined qualifying
standards.
The TIDS code is particularly important for sales tracking and the protection of
an agency's remuneration from non-airline commission earnings. When a non-
IATA agent uses a GDS, their unique TIDS is automatically transmitted to each
travel industry supplier in the Passenger Name Record (PNR) under their
reservation.
Not all travel agencies can or need to meet the strict criteria required for IATA
accreditation. So, if a non-IATA agency wishes to obtain airline tickets for their
clients, where do the tickets come from?
Key Learning Point

IATA's Travel Industry Designator Service (TIDS) is offered to non-IATA
accredited travel agents so that commission earnings from non-air product
sales can be protected. These agents are not able to process ticket transations
through IATA.
12.16.2 Background to Consolidation

Since the adoption of the Computer Reservation System (CRS) Rules in 1984,
most of the fares and rules that agents use are accessible mostly through
Global Distribution Systems (GDSs). Airlines provide both their public and
private (negotiated) fare information to the Airline Tariff Publishing Corporation
(ATPCO). The GDSs download new information from them as much as five
times a day. On a typical day there could be more than two million fare
changes made. The GDSs contain more than 4 billion basic and add-on
constructed fares in their files.
While the bulk of fare filing is done through ATPCO, there are a few that file
with SITA (Société Internationale de Télécommunications Aéronautiques).
Others file directly with their preferred GDS.
There are also fares that airlines show on their websites which could be lower
than those found in the GDSs. An airline has recently even added a surcharge
if an agent made the booking and issued the ticket using a GDS rather than
transacting with them directly.
Then there are those fares that airlines provide to consolidators who are
wholesalers that market directly to consumers or through other travel agents.
The agents get these fares from the consolidators' websites that are also
powered by Global Distribution Systems. Take for example, Sabre, Amadeus
e-Power Consolidator or Travelport's Travel Technology & Solutions (TTS)
consolidator to name a few.
For those new travel industry businesses that do not have the financial
resources to enable them to be IATA-accredited, partnering with a large IATA
or ARC-accredited agency that could issue the airline tickets on their behalf
was a good option.

In that era of standard commission arrangements with airlines, the non-IATA

agency would enter into a shared commission arrangement with the IATA
agency. The IATA agency in turn would issue the air tickets, keeping a
percentage of the commission in return for this service.
As a result of entering into such ticketing arrangements with small non-IATA
agents, some IATA-accredited agents began to annually issue millions of
dollars worth of airline tickets. This gave them a greater degree of influence
with the airlines they supported.
In return for this larger volume of business, the airlines paid extra commission,
known as incentive commission or override commission, to the IATA agent.
Part of this could in turn be passed on to the non-IATA agent. This business
process became an attractive method for agencies to earn extra commission.
This formed the basis for what is now commonly known as consolidation:
Volume-producing large IATA agencies forming partnerships with airlines and
negotiating special airfare pricing for re-distribution to other travel agencies.
The original fare supplied by the airline is increased (“marked up”) by the IATA-
accredited consolidator to an amount that allows them to make a profit, and this
new price level is made available to other travel agents.
Today this is usually via a consolidator's website, which a recognised travel
agent can access with a password. In some cases the link to the consolidator
may also be via a GDS with access to an airline's so-called ‘private fares’ or
‘negotiated fares’.
The travel agent then decides by what amount to increase the price of the
airfare before quoting to a prospective client. If the increase is too low the travel
agent will not make enough money to cover costs. If the increase is too high,
the client may purchase the airfare elsewhere.
Key Learning Point

Incentive or override commission is extra commission paid by the airline to a
travel agency that sells a very high volume of business.
12.16.3 Consolidator (Net) Fares

Let us now examine the fares made available to the travel agency network,
many of which are consolidators, and how this distribution channel can benefit
both airlines and travel agents.
Air fares that consolidators sell may range from published to private fares
including market restricted fares, web fares, and corporate fres. Carriers file
private fare records or so-called negotiated fares and provisions through
ATPCO's Negotiated Fares service. A Negotiated Fare has a Category 35
provision in its supporting fare rule.

12.16.3.1 Advantages of Consolidator (Net) Fares to

Airlines
The principal advantage to an airline of offering fares through a consolidator is
that it forms an additional distribution channel for these fares.
Local markets are often dominated by one or two airlines, and non-dominant
carriers must therefore compete for market share and travel agent loyalty. Non-
stop or most direct routings between two cities are usually displayed
prominently on GDS screens, and are the first to be seen by a travel agent.
Airlines using hubs or connecting flights between these same two cities are
therefore at a disadvantage and consequently understand the benefit of using
pricing incentives in order to attract business.
It is more efficient for an airline to deal with as few distributors of its products as
possible, as this utilizes the fewest resources. Let us suppose that a flight has
one hundred seats available. Instead of having to provide the reservations,
fares, ticketing and accounting staff to service one hundred individual
customers, an airline will prefer to deal with twenty travel agents, each using
their skills to sell five seats apiece. By the same reasoning, a travel agent
acting as a consolidator will further reduce the number of individual trans-
actions with the airline, by grouping together the sales of many travel agents,
thus filling an even greater number of seats through one channel.
Key Learning Point

It is more efficient for an airline to deal with as few distributors of its products as
possible, as this utilizes the fewest resources.
12.16.3.2 Advantages of Consolidator (Net) Fares to

Travel Agencies
There is no requirement for an airline to pay commission on the airline tickets
agents sell. However, individual airlines may negotiate commission incentives
with travel agencies that produce high volume sales with set terms and
conditions.
While commissions can still be earned on some airfares sold today, net fares
offer an agency a way to control how much they earn on each ticket sold, within
the upper earnings boundary determined by the published fare and the lower
earnings boundary determined by the net fare price offered by the consolidator.
The price mark up then becomes the substitute for a commission. It can also
eliminate the need to charge the customer a service/ticketing fee. Fees such as
these sometimes annoy clients, who in the past have expected a “free” service
from their travel agent.
Both IATA and non-IATA travel agents are able to access and sell consolidator
airfares. Consolidators usually have customer service staff to assist travel
agents with the interpretation of fare rules, regulations and applicable taxes.
When using a consolidator, all the ticketing and IATA-related accounting is
done for the travel agent.
A price mark-up is the difference between the fare paid to the consolidator and
the fare paid by the customer, forming the equivalent of a commission.

12.16.4 Net Remit

The fundamental concept of Net Remit is as follows:
Published Fare
less Standard Commission
less Supplementary Commission (Incentive)
= Net Fare Amount (may be calculated or may have been agreed and
entered by the Agent)
These fares are filed under ATPCO Category 35. This category is not part of
the usual paragraphs found in publicly available carrier tariffs in the GDS
displays. Meanwhile there is Category (Paragraph) 35, which is meant for the
carrier's private fares. These are fares that airlines offer only to certain travel
agents primarily consolidators selling tickets in volume.
It should be noted that Category 35 data has three fare level concepts namely:
1. gross or published fare–the fare value prior to the agency incentive being
applied
2. selling fare–the markup fare level at which the agency is allowed to sell the
fare to the passenger
3. net fare–the value after all agency incentives have been applied
Example:
Gross or published fare = CAD 1000.00
Selling fare = CAD 600.00 (may or may not be
instructed by the car-
rier)
Net Fare = CAD 500.00
For airline accounting purposes, the agency incentive is 1000 – 500 = CAD 500
(published gross fare less net fare). The passenger buys the fare for CAD 600
and the agency markup is CAD 100.
In practice, for reporting purposes, the selling fare is not a reported factor as it
has no bearing on the airline accounts. But there are some implications on
credit card sales where the airline is the merchant for the sale; therefore, bills
the Credit Card, when the selling fare is different to the published fare.
To be able to quote these fares there must be an agreement negotiated by the
airline and its agent (usually a consolidator). Here are some terms that come in
handy in this context.
12.16.4.1 Net Reporting and Net Ticketing

Net Reporting is an agreement between an airline and a Travel Agency to
report a ticket transaction at a value other than the published fare. To do so, a
number of net remit methods have been designed so that airlines can
differentiate the fare products by point of sale (travel agency), and to provide a
standard methodology for calculating the funds settled between the airline and
the issuing travel agency.
There are three (3) basic ways in which such a transaction may be ticketed and
reported to an airline:
1. Using Value Coding or Contract Coding which are both called Net Remit
methods, such that the Billing and Settlement Plan (BSP) is required to
calculate the supplementary commission values or incentives from a code
reported in the Tour Code data element of the ticket.

2. As a direct pass-through from the ticketing system which has already

calculated the standard commission and incentives but the transaction is
still identified as a Net Remit ticket. There are still calculations on the part
of BSP, but these are performed on amounts and percentages which have
already been reported by the ticketing system. The pricing and ticketing
application is responsible for the correct reporting of the net amount.
3. As a Net Ticketing transaction which is not identified as Net Remit; and
thus treated as a published fare transaction for BSP purposes. Any
supplementary commissions due to the Travel Agency is passed through
directly from the ticketing system.
Key Learning Point

Net Reporting is an agreement between an airline and a Travel Agency to
report a ticket transaction at a value other than the published fare.
12.16.5 Ticketing Private/Net Fares

When pricing a ticket using negotiated or private fares, the following ticketing
data elements are populated by whatever corresponding provisions are filed by
the carrier fare owner in Cat 35:
12.16.5.1 Tour Code

This is the code specified in Cat 35 to indicate a deal or incentive fare. The
Tour Code has become the key tool in specifying the code required for net
remit processing. Once it identifies that a specific ‘deal’ applies to the fare, this
carrier specified and agreed contract code triggers further calculations and
processing down line. In this context, the Tour Code element will always show
either the value code or the commercial agreement reference required for net
remit processing by the BSP. This is used by the data processing center to
perform a series of calculations which may be based on the itinerary, agency
code, dates and other transaction attribute to apply specific incentive payments
from the airline to the travel agency.
12.16.5.2 Fare Basis

This element specifies the fare class and ticket designator shown in Cat 35
which must be the same for all coupons belonging to the same fare
component.
12.16.5.3 Base Fare/Equivalent Fare Paid/Total

In the case of a Net Remit transaction, when the published fare is reported and
is subsequently discounted by a commission or incentive, the fare, equivalent
and total data elements will show the amount of the published base fare.
When it comes to Net ticketing, however, these three elements will all contain
“IT” to mask the true selling fare. Alternatively, instead of “IT”, it could show
“BT” or “BULK”. Some airlines require the use of “ITX”.
If the instruction in Cat 35 is to place such alpha codes in the Fare, this masks
the true selling value to all except the carrier fare owner involved in the
settlement of the transaction with the travel agency. The reporting of the ticket
in BSP is only sent to the Validating Carrier.
Note that taxes/fees/charges (TFCs) are not affected by the Cat 35 provisions.

Generally, the fare for which the travel agent ultimately sells the ticket is not
known by the BSP. In practice only the concept of the gross fare and the net
fare are known as derived from calculations. The selling fare is assumed to be
equal to the gross or published fare for the purposes of airline to travel agency
settlement.
In practice, for Credit Card sales, the gross fare and the selling fare must be
equal, because the settlement system is responsible for billing the customer
credit card based on the reported amount. Where these are not equal, some
adjustment is required in the settlement process to be able to reconcile fund
remittance between the Airline and the Agent.
12.16.5.4 Fare Calculation Area

Based on the entry in the Fare field, the fare calculation breakdown will also
use the alpha codes (e.g. ‘M/IT’) to mask any values presented in the fare
calculation field by fare component.
Example: ZRH LX YTO AC YVR M/IT END
12.16.5.5 Remittance Area

This optional area shows the net remit indicator, commission amount,
percentage, and net fare amount as required by the Net Remit Method. There
is no defined standard as the information varies by BSP processing country.
12.16.6 Net Ticket Refunds

The refund process relies on perfect information based on the selling fare
which is available in the Validating Carrier's database for the Electronic Ticket
Record (ETR). However, for a Net Remit fare, refunding on one of the two
amounts, Gross or Net, will either understate or overstate the refund to the
passenger.
Partial refunds present even more of an issue to the refunding office, especially
if attempted by a travel agency. For net tickets (e.g. IT) this may be possible in
an automated environment as the selling fare is most likely available.
However, in the case of Net Remit tickets where the selling fare is not known
by the GDS used by the agency:
1. A refund may occur part-way through the itinerary, requiring some
recalculation of the fare;
2. Penalties apply according to rules filed by the Carrier in Cat 33 (Category
33 - Voluntary Refunds).
In these cases a fully automated refund is not possible and so these are usually
nonrefundable or referred to the Validating Carrier for a manual refund.
Aside from refund restrictions, tickets purchased from consolidators may not be
eligible for frequent flier miles or advance seat selection. Verify eligibility with
the airline and consolidator before purchasing the ticket.

Study Check 12.16
TRUE or FALSE?
1. The consolidator is always an IATA/ARC agent. TRUE or FALSE?

(a) True
(b) False
2. Net fares are the same as public fares. TRUE or FALSE?

(a) True
(b) False
3. Passengers cannot have an en-route stopover when traveling on a net

fare. TRUE or FALSE?
(a) True
(b) False

Consolidators buy tickets wholesale directly from the airlines at negotiated
rates, and then resell them to other travel agents or consumers for prices lower
than the published (public) fares.
Often, these private fares are accessed through the consolidator's websites
that are usually powered by the Global Distribution Systems.
The fundamental concept of Net Remit is to take the published base fare
amount less commission and incentive to obtain the net fare amount. The net
fare amount may be calculated in this manner or specified based on the
agreement between the agent and the carrier.
Net ticketing, on the other hand, requires special ticketing entries such as the
Tour Code which can hold any carrier specified code to demonstrate a Net
Ticketing (Private or Negotiated Fare) agreement between the carrier and the
travel agent. As with airline seat sales, consolidator fares have lower prices
and tend to carry more restrictions.

Recommended Websites
– Amadeus Negotiated Fares. See http://www.amadeus.com/web/amadeus/
en_US-US/Travel-agencies/Our-portfolio/Serve/Sell-to-travelers/
US_Amadeus-Negotiated-Fares/1319489676573-Solution_C-
AMAD_ProductDetailPpal-1319647693583?industrySegment=
1259068355825&level2=1319608963678&level3=1319609097018
– Amadeus e-Power Consolidator. See http://www.amadeus.com/
web/amadeus/en_US-US/Travel-agencies/Our-portfolio/Serve/Sell-to-
travelers/US_Amadeus-e-Power-Consolidator/1319644128683-
Solution_C-AMAD_ProductDetailPpal-1319647693583?industrySegment=
1259068355825&level2=1319608963678&level3=1319609097018
– Travelport TTS-Consolidator. See http://tts.com/products/tts-consolidator.
– Travel tips. http://www.independenttraveler.com/travel-tips/air-
travel/airline-consolidators
References
– Passenger Tariff Coordinating Conference Composite Manual
– Passenger Services Conference Resolutions Manual
Recommended Websites 1127

Recommended Videos
• How to contact IATA via the Customer Portal:
http://portal.iata.org/faq/articles/en_US/How_To/How-do-I-contact-IATA-
via-the-Customer-portal/?l=en_US&fs=Search&pn=1
• What is an IATA ID Card and how do I apply?
http://portal.iata.org/faq/articles/en_US/FAQ/What-is-an-IATA-ID-Card-
and-how-do-I-apply-1415811062729/?l=en_US&fs=Search&pn=1
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FAQs%3ACustomer_Portal&fs=Search&pn=1

Module Summary
Module Summary 1129

After completing this Unit, you would now know how to answer the most basic
request put forward by the customer which is
“I would like to buy a ticket with this routing...”
Although you need to go through a series of stages, these stages are all
interrelated and not always in the same sequence as shown in the foregoing
diagram. Nevertheless, the end result is the fare quote and the issuance of the
ticket as soon as the passenger agrees to the terms.
As you have experienced, studying this Unit requires a high level of discipline
and attention to numerous details in order to comply with standards established
for ticketing and fare calculation. Such meticulousness will also be required
when you answer the questions in the examinations.
Therefore, it is advisable that you keep practicing and completing the study
checks, discussions, activities and review questions associated with each unit.
Fares and Ticketing remain a dynamic area in airline marketing and sales,
made more efficient by technological advances in electronic sales, ticketing
and reporting. It is also made complex by carrier exceptions as well as
government reservations. For this reason, there are items that remain ‘grey
areas’ as these concern rules still awaiting government approval.
It is important to bear in mind that these fare construction checks and rules will
help you obtain the official (listed) Gross Fare which is the ticket price at face
value. Any amount deducted such as incentives, commissions and other types
of discounts will result in the actual selling price or the Nett (or Nett Nett) Fare.
In any case, it is recommended that you always check the latest PAT Editorials
and accompanying bulletins in order to keep abreast of the changes in fare
construction and ticketing.
In spite of the changing nature of fares and ticketing, the questions in the
examinations will only focus on the information published in this Unit.

Review Questions
TRUE or FALSE?
Answer true or false on the line provided.
1. In a fare display, carrier routing fares are represented
by the letter R.
2. In a routing display where two cities separated by a
“/”, both cities may be used as intermediate points.
3. In an itinerary from LIM to UIO with applicable fare
BLEFFZ0F, a Q surcharge is collected for airport
security.
4. A raw local currency fare is a rounded amount
5. A non-stop flight must be a direct flight.
6. The term “from...to...” means a fare applies between
two points in both directions.
7. Transfer points only represent connecting points and
do not include stopovers.
8. A through fare is always the same as a published
direct fare.
9. NUC stands for Neutral Unit of Construction.
10. Fare construction points are also called fare break
points.
11. Scandinavia is a sub-area in Europe.
12. BUH, SOF and HEL are destinations in the Europe
subarea.
13. Malawi, Zambia and Zimbabwe are in Central Africa.
14. PA stands for travel via the Pacific and the Atlantic
oceans.
15. Global indicator EH represents travel for TC23, TC3,
or TC2.
16. TC1 refers to travel within Area 1.
17. TC3 is for travel within the Western Hemisphere.
18. TC2 refers to travel within Area 2 or the Eastern
Hemisphere.
19. TC23 means travel between Area 2 and Area 3.
20. The TS global indicator refers to travel between TC1
and TC2.
21. FE is the Global Indicator for travel via the Atlantic
Ocean.
22. EH is the Global Indicator for travel between Middle
East and Africa.
23. Travel between Chile and Mexico represents Global
Indicator AT.
24. Travel between Peru and Canada represents Global
Indicator WH.
25. Ghana is located in the Western Hemisphere.
26. Argentina is located in the Western Hemisphere.
27. Morocco is located in subarea Africa.
28. The journey LAX - TYO - LON is an example of a
round-the-world journey.
29. A circle trip pricing unit can have three fare compo-
nents.

30. The price for a round trip fare component is 1/2 of the
RT fare.
31. The symbol // represents a TOJ journey in a fare
breakdown.
32. RT represents a round trip.
33. A circle trip journey's origin and destination cities are
in the same country.
34. There are two fare components in this fare break-
down: GVA KL X/AMS KL HEL M607.73 KL X/AMS
KL GVA M607.73NUC1215.64END ROE1.30855
35. A OW journey can only have one Pricing Unit.
36. The terminal points of an OOJ Pricing Unit are the
same city.
37. OW fares are used to price DOJ Pricing Units.
38. The gap or surface break in a TOJ Pricing Unit is at
the turnaround.
39. Only unrestricted fares exist for travel in First and
Business Class cabins.
40. All unrestricted fares can apply no show charges.
41. Restricted fares exist for travel in all cabin classes.
42. ‘Nearest rounding’ means always drop decimals
which are less than 50 cents and round up decimals
which are 50 cents and above.
43. ‘Higher unit of rounding’ means you always round up
to the next unit prescribed in the IROE table.
44. ‘Nearest rounding’ is also called full adjustment.
45. Showing the number of decimals for each currency is
mandatory for entries in the Fare, Equivalent Fare,
TFC and Total boxes of a ticket.
46. Except for USD and euro countries, a Local Currency
Fare is generally in the national currency of the COC.
47. A ticket sales tax is normally a percentage of the total
air fare.
48. In an itinerary MEX - LON - MEX with applicable fare
RLXHADEI, the total Q surcharge for an adult is
USD378.00.
49. ‘Nearest rounding’ is also called full adjustment.
50. TPMs represent the shortest operated mileages be-
tween the ticketed points of the journey.
51. EMA is an MPM deduction.
52. A routing fare ignores the distance flown in the
journey.
53. You may add and delete intermediate points when
using a routing fare.
54. The ticket tax is not a sales tax but a TFC imposed on
the issuance of tickets.
55. All airlines accept all major cards anywhere in the
world.
56. In the travel agency “pass-through” model for credit
card payment transactions, the airline is the merchant.
57. AP refers to travel via the Atlantic and Pacific oceans.
58. IATA's traffic conference areas are the same as
geographic continents.

59. IATA Europe in Area 2 comprises only geographic

Europe.
60. Mileage fares are mostly influenced by the distance
traveled.
61. The ticket endorsement box displays the ticketed fare
basis code.
62. Security Fees are shown as code (Q) in the fare
calculation.
63. Tickets are normally valid one year from date of
commencement of travel.
64. In the automated fare breakdown, there is a space
between alpha and numeric codes.
65. Traffic documents include tickets and EMDs.
66. Travel agents are not allowed to issue EMDs.
67. All credit cards are accepted by all airlines anywhere
in the world.
68. When entering credit card information in the Form of
Payment box of an electronic ticket, the information
must include the two-letter code of the credit card
used.
69. Credit card chargebacks occur when the customer
refuses a billed charge.
70. MC is the code for MasterCard.
71. The two-letter code for the Discover Card is DS.
72. TFC means Taxes, Fees and Charges.
73. Airline security fees are not TFCs but are considered
surcharges (Qs).
74. TFC conversion is accomplished by using the IATA
Rate of Exchange (IROE).
75. XT represents collective TFCs shown as a single
amount in the Tax box.
76. To establish if the fare is restrictive you only need to
read the conditions. Restricted fares have more limi-
tations than unrestricted fares.
77. APEX and PEX fares allow open-dated return travel.
78. Most excursion fares have reservation change fees.
79. The “last ticketing date” displayed in a booking
overrules the advance purchase condition stated in
the rule.
80. The Sunday Rule means that you may only allow the
passenger to return on the first Sunday or later,
following the day of departure.
81. The maximum stay requirement is counted from the
day of departure from the point of unit origin.
82. Restricted fares that apply fees for rebooking must
show the actual travel dates in the NVB and NVA
boxes.
83. The conditional fare basis code “W” stands for week-
day travel.
84. The RFIC is a primary single-character code which
defines the reason for issuance for an EMD at the
document level.
85. The RFISC is a 3-character secondary subcode that
further qualifies the RFIC on the EMD coupon level.

86. Validating Carrier is another term for Issuing Carrier.

87. The Validating Carrier is always the fare owner.
88. Operating Carrier is the carrier whose airline code is
shown in the reservations area of the flight coupon.
89. Electronic Ticket is the Itinerary/Receipt issued by or
on behalf of the Carrier, the electronic coupons and, if
applicable, a boarding document.
90. The Passenger Itinerary Receipt (ITR) is insufficient
proof of a contract of carriage between the airline and
the passenger.
91. Interline travel represents an indirect routing on the
services of only one carrier.
92. The origin is the very first city in a journey.
93. When the Fare Calculation Mode Indicator (FCMI) is
0, it means that the ticket has been manually calcu-
lated.
94. A child is a passenger who is aged two and above.
95. An unaccompanied infant may only be accepted for
travel if escorted by an adult.
96. A fare for an unaccompanied minor is assessed in
accordance with the provisions of Rule Category 19)
of the corresponding Fare Rule.
97. An infant's discount is always 90% of the adult fare.
98. A restricted fare ticket is always refundable without
any penalty.
99. Free stopovers are never counted as transfers.
100. The NVB/NVA boxes in the ticket must always show
the actual dates of travel if penalties apply for change
of reservations.
101. Stopover fees are represented by the ticketing code
“1S” at the end of the journey.
102. The IATA Consolidated Exchange Rate is a daily list
of bankers selling rates used to convert the LCF
and/or TFCs to the equivalent amount in the currency
of payment.


City Code Country Name 2. b

1. FRA Germany 3. c
2. PAR France 4. b
3. PRX USA
4. NCL United Kingdom 5. c
5. NCS South Africa 6. d
6. LOZ USA 7. a
7. LON United Kingdom
8. c
8. YXU Canada
9. ELS South Africa 9. b
10. HKG Hong Kong SAR 10. b
11. SIN Singapore
12. WLG New Zealand
13. FLR Italy
14. FLO USA
15. ALC Spain
16. BHX United Kingdom
17. BHM USA
18. LPB Bolivia
19. LAP Mexico
20. OUA Burkina Faso
1. USD (United States dollar)
2. HKD (Hong Kong dollar)
3. USD (United States dollar)
4. CHF (Swiss Franc)
5. EUR (euro)
6. a
7. b
8. b
9. c
10. a
11. 2613 FE + 396 EH + 1295 EH + 2866 AT
Answer Key 1135

Study Check 12.3

1. Auckland New Zealand 3 South West Pacific (SWP)
2. Amsterdam Netherlands 2 Europe
3. Athens Greece 2 Europe
4. Bangkok Thailand 3 South East Asia (SEA) or North/Central Pacific
5. Mumbai India 3 South Asian Subcontinent (SASC) or North/Central Pacific
6. Boston USA 1 North America or North Atlantic (NATL)
7. Buenos Aires Argentina 1 South America or South Atlantic (SATL)
8. Capetown South Africa 2 Africa
9. Dublin Ireland 2 Europe
10. Dubai United Arab Emirates 2 Middle East
11. Guatemala City Guatemala 1 Central America or Mid Atlantic (MATL)
12. Hong Kong Hong Kong SAR 3 South East Asia (SEA) or North/Central Pacific
13. Port of Spain Trinidad and Tobago Caribbean or Mid Atlantic (MATL)
14. Tahiti French Polynesia 3 South West Pacific (SWP)
15. Osaka Japan 3 Japan/Korea (JAPKOR)
TC# GI
16. 23 AP
17. 12 AT
18. 31 PN
19. 123 SA
20. 31 PA
21. 123 SA
22. 3 EH
23. 12 via 3 PA
24. 123 SA
25. 12 AT
26. 31 PA
27. 31 PN
28. 31 PA
29. 12 via 3 PA
30. 1 WH
31. 23 TS
32. 23 FE
33. 23 AP
34. 23 RU
35. 23 TS
36. 23 RU
37. 23 EH
38. 1 WH
39. 23 TS
40. 23 No GI


1. a 1. c
2. d 2. b
3. e 3. a
4. b 4. c
5. a 5. c
6. f 6. b
7. g 7. a
8. OOJ 8. b
9. TOJ 9. b
10. TOJ 10. b
11. DOJ 11. b
12. OOJ 12. c
13. b 13. a
14. a 14. c
15. a 15. a
16. b
Study Check 12.5
17. b
1. b
18. a
2. c
19. c
3. a
4. b Study Check 12.7
5. a 1. d
6. b 2. c
7. d 3. d
8. c 4. b
9. d 5. a
10. a 6. a
11. c 7. a
12. b 8. d
13. d 9. b
14. c 10. d
15. c 11. b
12. b
13. a
14. b
15. a
16. b
17. a
Answer Key 1137

18. c Study Check 12.10

19. a 1. b-False
20. b 2. a-True
21. b 3. b-False
22. c 4. a-True
23. a 5. b-False
24. a 6. b-False
25. c 7. b-False
8. a-True
Study Check 12.8
9. b-False
1. a
10. a-True
2. a
11. c
3. b. False
12. d
4. b
13. b
5. a
14. c
6. d
15. a
7. d
8. b Study Check 12.11
9. d 1. b
10. b 2. a
3. c
Study Check 12.9
4. b
1. b
5. b
2. b
6. b
3. c
7. b
4. d
8. c
5. c
9. c
6. d
10. a
11. a
12. c
13. a
14. c
15. a
16. c
17. a
18. a
19. a
20. c


1. b 1. b
2. b 2. d
3. c 3. c
4. b 4. c
5. a 5. d
6. c 6. a
7. VI 7. c
8. CA 8. a
9. AX 9. c
10. DS 10. b
11. a
Study Check 12.15
12. b
1. False
13. d
2. False
14. d
3. True
15. b
4. True
16. b
5. False
17. b
18. c Study Check 12.16
19. d 1. (a) True. As the consolidator issues the actual
passenger ticket, they must be IATA or ARC-
20. b
accredited. The travel agent purchasing the ticket
21. a from the consolidator does not have to be an IATA
or ARC agent.
22. b
2. (b) False. Net fares may be available for any class
23. c of air travel, be it First, Business or Economy
24. b class. By volume, though, the majority of net fares
sold are in Economy class.
25. a
3. (b) False. The rules associated with each net fare
are different, just as the rules surrounding Pro-
Study Check 12.13 motional fares will vary. In some cases, a stop-
1. True over may be permitted, in other cases it will not.
2. False
3. False
4. True
5. False
6. False
7. False
8. False
9. True
10. False
Answer Key 1139

Review Question Answers 31. False. The symbol /- in the fare breakdown
represents a TOJ journey.
1. True
32. True
2. False: Only one of them may be selected as an
intermediate point 33. True
3. False 34. True
4. False, it is unrounded 35. False
5. True: Non-stop flights are direct flights ticketed on 36. False
one single flight coupon 37. False
6. False 38. True
7. False: Transfer points represent both stopovers 39. False
and connections.
40. True
8. False: Through fare is the fare applicable between
fare construction points via an intermediate 41. True
point(s). It may sometimes equal the direct fare.
42. False: Nearest rounding means dropping
9. True amounts less than half of the unit prescribed and
rounding up decimals that are half or above such
10. True unit.
11. True 43. False: Nearest rounding is also called HALF
12. True adjustment.
13. True 44. False: Showing the number of decimals for each
currency is only mandatory for entries in the Fare
14. False: PA stands for travel via the Pacific. and Equivalent Fare Paid boxes of the ticket.
15. True 45. True
16. True 46. False: Nearest rounding means dropping
17. False amounts less than half of the unit prescribed and
rounding up decimals that are half or above such
18. True unit.
19. True 47. True
20. False 48. True
21. False, travel via the Atlantic Ocean is AT 49. False: Nearest rounding is also called HALF
22. True adjustment.
23. False, travel between Chile and Mexico is WH 50. True
24. True 51. False: EMA is a TPM deduction.
25. False, Ghana is in west Africa, Eastern 52. True

Hemisphere 53. False: May delete (not add) intermediate points.
26. True, Argentina is in TC1 and all of TC1 is in the 54. True
Western Hemisphere
55. False-Airlines publish the list of credit cards they
27. False, according to the Tariff Conferences, accept and conditions for acceptance.
Morocco is in subarea Europe.
56. True
28. False. A round-the-world journey must cross the
Pacific and Atlantic Oceans. 57. True
29. True. Circle trip pricing units have two or more 58. False: They are not.
fare components. 59. False: It also includes Morocco, Algeria and
30. True Tunisia.
60. True

61. False 97. False: It varies depending on Paragraph 19.

62. True 98. False
63. True 99. False
64. False: No space between alpha and numerics. 100. True
65. True 101. False: Fee is shown after the stopover point.
66. False 102. True
67. False: Not all credit cards are accepted globally.
68. True
69. True
70. False: MasterCard is CA.
71. True
72. True
73. True
74. False: Use BSR.
75. True
76. False
77. False: Travel dates must be confirmed.
78. True
79. True
80. True
81. True
82. True
83. False: W stands for weekend fare.
84. True
85. True
86. True
87. False: VC and fare owner are selected differently.
88. False: This is the Marketing Carrier.
89. True
90. False: ITR is a legally binding contract of carriage.
91. False: A carrier with no fares of its own may use
IATA fares whether online or interline.
92. True
93. False: FCMI 1 is for manual calculation.
94. False: A child is from 2 to below 12 years old. 12
and over is an adult.
95. True: An infant literally cannot travel by itself (with
or without paying extra charges).
96. True
Answer Key 1141

Decodes
A
ADT Adult Passenger
AF Applicable Fare
AGT Agent
AP Atlantic Pacific Route
AT Transatlantic Route
ATC Air Travel Card
AST Agency Sales Transmittal under Billing & Settlement Plan
B
BGE Baggage
BKG Booking
BSP Billing & Settlement Plan
BSR Bankers Selling Rate
C
CC Credit Card
CCP Currency of Country of Payment
CHD Child
CIP Carrier Identification Plate
COC Country of Commencement of Int'l Transportation
COP Currency of Payment
COMP
RESO Composite Resolution
CPN Coupon
CT Circle Trip
D
DEP Departure date
DOJ Double Open Jaw
E
EBC Excess Baggage Charge
EH Eastern Hemisphere
EMA Extra Mileage Allowance (TPM Deduction)
EMD Electronic Miscellaneous Document
EMD-A EMD - Associated
EMD-S EMD - Stand Alone
EMS Excess Mileage Surcharge
EQFP Equivalent Fare Paid
EQUIV Equivalent Amount
ET Electronic Ticket
EUR Currency Code of the euro
ETR Electronic Ticket Record
ETKT Electronic Ticketing
EXC Excursion Fare

F
FBA Free Baggage Allowance
FBC Fare Basis Code
FC Fare Component
FE Far East Route
FLT Flight
FCMI Fare Calculation Mode Indicator
FCP Fare Construction Point(s)
FOP Form of Payment
FTC Fare Type Code
G
GDS Global Distribution System
GI Global Indicator
GSA General Sales Agent
H
HIP Higher Intermediate Point
I
IATA International Air Transport Association
ICER IATA Consolidated Exchange Rates
INF Infant
IROE IATA Rate of Exchange
ISO International Standards Organization
ITR Passenger Itinerary Receipt (for the electronic ticket)
L
LCF Local Currency Fare
M
MATL Mid Atlantic
MC Marketing Carrier
MPM Maximum Permitted Mileage
MSC Most Significant Carrier (Baggage Rule Owner)
N
NA Not applicable
NATL North Atlantic
NDC New Distribution Capability
NUC Neutral Unit of Construction
NVA Not Valid After (box)
NVB Not Valid Before (box)
Decodes 1143
O
OC Operating Carrier
OJ Open Jaw
OOJ Origin Open Jaw
OSOJ Origin Single Open Jaw
OW One Way
P
PA Transpacific Route
PAX Passenger
PCC Pseudo City Code
PEY Premium Economy
PFC Passenger Facility Charge
PNR Passenger Name Record
PSGR Passenger
PTC Passenger Type Code
PU Pricing Unit
R
RBD Reservations Booking Designator
Reso Resolution
RFIC Reason For Issuance Code
RFISC Reason For Issuance Subcode
ROE Rate of Exchange
RT Round Trip/Return Trip
RTG Routing
RU Russian Route
S
SA South Atlantic Route
SASC South Asian Subcontinent
S.E.A. South East Asia
SOJ Single Open Jaw (Special Fares only)
STD Standard Traffic Document
SUBTTL Subtotal
SWP South West Pacific
T
TC Traffic Conference
TFC Taxes, Fees and Charges
THB Ticketing Handbook
TPM Ticketed Point Mileage
TS Trans Siberian Route
TOJ Turnaround Open Jaw for Special Fares
TSOJ Turnaround Single Open Jaw (Special Fares)
TTL Total

U
UATP Universal Air Travel Plan
UM Unaccompanied Minor
US United States
US DoT United States Department of Transportation
UST US and its Territories
V
VC Validating Carrier
Decodes 1145
Glossary
Add-on Amount: an amount used only to construct an unspecified through
fare.
Adult: a person who has reached his/her 12th birthday as of the date of
Agent: an accredited Passenger Sales Agent location selling tickets and
services on behalf of its principals, i.e. carriers and other travel service
providers.
Applicable Fare: for fare construction purposes, a fare which is established
after the application of all fare construction calculations, e.g. excess mileage
fare, higher intermediate fare, etc.
Approved Location: sometimes referred to as ‘Location’, includes Head
Office, Branch Office and Satellite Ticket Printer Locations appearing on the
Agency List.
Baggage: which is equivalent to the term “Luggage”, means such articles,
effects and other personal property of a passenger as are necessary or
appropriate for wear, use, comfort or convenience in connection with his trip.
Unless otherwise specified, it includes both checked and unchecked baggage.
Bankers Selling Rate (BSR): The rate used to convert fares and other
charges in one currency to another currency.
Billing & Settlement Plan (BSP): a method of providing and issuing standard
traffic documents and of accounting and settling accounts between airlines and
Travel Agents.
Booking: see “Reservation”.
Carriage: which is equivalent to the term “Transportation”, means carriage of
passengers and/or baggage by air, gratuitously or for hire.
Carrier, Participating: means a carrier over whose routes one or more
sections of carriage under the ticket is undertaken or performed.
Charge, Cancellation: means the service charge made by reason of failure of
a passenger to use reserved accommodation without having cancelled such
accommodation prior to the latest appropriate time for cancellation specified by
the carrier. A cancellation penalty may be used where, for legal or other
reasons, it is necessary to refund a ticket in full and collect a cancellation
penalty separately from the refund.
Check Digit: a digit added to a given number to check the accuracy of the
number. The modulus 7 check digit used with document numbers is the
remainder of the division of the number to be checked by 7.
Child: a person who has reached his/her second birthday but not his/her 12th
birthday as of the date of commencement of travel.
Circle Trip: Travel from a point and return thereto by a continuous, circuitous
air route, comprising two or more fare components that do not meet the
conditions of the round trip definition.

Clearing Bank: the bank or other organization appointed under BSP to

perform all or some of the following functions: to receive sales transmittals from
Agents, and to extract and process data therefrom, to render billings to Agents
to receive remittances from Agents and to perform such other functions.
It may also mean the Processing Center where the context so permits.
Combination: whenever two or more one-way or round trip or half round trip
fares are used and shown separately in a fare calculation.
Computer Reservations System (CRS): means a computerized system
containing information about schedules, availability, fares and related services,
and through which reservations can be made and/or tickets issued, and which
makes some or all of these facilities available to subscribers.
Conjunction Ticket: Two or more tickets concurrently issued to a passenger
which together forms a single contract of carriage.
Conditions of Carriage: means the terms and conditions established by a
carrier in respect to its carriage.
Constructed Fare: unspecified through fares created by the use of add-on
amounts, or two fares shown as a single amount in a fare calculation.
Country of Commencement of Transportation (COC): the country from
which travel on the first international sector takes place.
Country of Payment: the country where payment is made by the purchaser to
the TC Member or its Agent.
Coupon, Flight: means the portion of the Passenger Ticket that indicates
particular places between which the coupon is good for carriage.
Coupon, Passenger: That portion of the Passenger Ticket and Baggage
Check that constitutes the passenger's written evidence of the contract of
carriage.
Currency of Country of Payment: the currency in which international fares
from that country are denominated.
Date of Transaction: the date of issuance of the ticket or EMD.
Days: means full calendar days, including Sundays and legal holidays.
Destination: the ultimate stopping place of the journey as shown on the ticket.
Direct Route: the shortest all year route operated by an TC Member in both
directions between ticketed points at which it exercises traffic rights.
Direct Fare: for fare construction purposes, a fare between two points without
the application of construction calculations.
Direct Route Fare: the fare over the direct route between two points.
Electronic Coupon: an electronic Flight Coupon or other value document held
in Carrier's database.
Electronic Miscellaneous Document (EMD): An electronic record issued by
an airline or its authorized agent, in accordance with applicable tariffs, for
residual value or for the collection of miscellaneous charges. An EMD must be
either an EMD-A or an EMD-S. Each EMD will have a maximum of four
coupons and up to four EMDs issued in conjunction.
Electronic Ticket: Itinerary/Receipt issued by or on behalf of the carrier, the
Electronic Coupons and, if applicable, a boarding document. For BSP: An
electronic record issued by an approved location, in accordance with applicable
tariffs for the issuance of the passenger ticket.
Glossary 1147
End-on Combination: combination of pricing units at a fare construction point.

Exchange Order: a document issued by a carrier or its agents requesting
issuance of an appropriate ticket or provision of services to the person named
in such document.
Fare: the amount charged by the carrier for the carriage of a passenger and his
allowable free baggage and is the current fare which an airline, in the
publication it normally uses to publish fares, holds out to the public, or the
appropriate segment of the public, as being applicable to the class of service to
be furnished.
Fare, Adult: the fare for a person who has attained his/her twelfth birthday.
Fare, Child: the fare for a person who has attained his/her second but not his
twelfth birthday.
Fare, Infant: the fare for a person who has not attained his/her second
birthday.
Fare, Proportional: (see add-ons)
Fare Break Points: see Fare Construction Points.
Fare Component: a portion of an itinerary between two consecutive fare
construction points.
Fare Construction Points: the terminal points of a fare component (these are
also termed fare break points).
Fraudulent or otherwise Suspicious Document: an Accountable Traffic
Document that has been fraudulently altered or is otherwise suspicious and
which the issuing airline does not want honored.
Gateway: first point of arrival/last point of departure in a country/area.
Global Indicator: the global routing applicable to fares.
Half Round Trip Fare: half of a specified or constructed round trip fare. In the
absence of a specified or constructed round trip normal fare, the one way
normal fare is considered to be a half round trip normal fare.
Headline City: ‘From’ City in the fares list.
IATA Rate of Exchange or IROE: the rates of exchange notified by IATA to
convert local currency fare to NUC and to convert total NUC amounts to the
currency of the country of commencement of transportation.
Immediate Family: includes spouse, children, parents, brothers, sisters,
dependent relatives or dependents in the household.
Inclusive Tour: a prearranged combination of air transportation and surface
arrangements other than solely public transportation.
Indirect Route: any scheduled continuous air route other than a direct route.
Infant: a person who has not reached his/her second birthday as of the date of
Interline Transfer: transfer from the service of one carrier to the service of
another carrier.
Intermediate Class: a class of service with seating standards which may be
superior to those provided on economy/tourist class but less liberal than
standards provided in first class.
Intermediate Points: transfer points or via points found between two
consecutive fare construction points.

Issuing Airline: TC Member whose tickets are issued to the passengers.

Issuing Carrier: (see Issuing Airline)
Itinerary/Receipt: a document or documents forming part of the Electronic
Ticket which contains information and notices regarding conditions of contract.
Journey: origin to destination of the entire ticket.
Local Currency Fares: fares and related charges expressed in the currency of
the country of commencement of travel.
Marketing Carrier: Carrier code that will appear on the flight coupon of the
ticket (typically used for codeshare). For a flight-related service on an EMD,
this is the carrier marketing the flight in a code-share situation.
Maximum Permitted Mileage (MPM): maximum distance published between
the origin and destination of a fare component.
Merchandising Related Service: the ability to purchase items from a
catalogue such as, but not limited to, logo T-shirts and other items filed by the
carrier.
Most Significant Carrier: carrier for the most significant sector of baggage
travel.
Neutral Ticket: the form of ticket for use by Travel Agents not bearing any
preprinted individual airline identity.
No-show: A passenger who fails to use reserved accommodation for reason
other than missed connections.
NUC: the neutral unit of construction.
Open Jaw: comprising two international fare components and assessed as a
single pricing unit consisting of half round trip fares. Such fares may be subject
to more restricted open jaw provisions if so published within the applicable
fares rule.
Operating Carrier: the airline actually providing carriage or other services
incidental to such air carriage. The Operating Carrier may be different from the
Marketing Carrier in situations where bilateral agreements exist, e.g., code
share agreement. Used only when different from Marketing Carrier. In an EMD,
this is the airline whose Airline Designator is recorded as the service provider
on the electronic value coupon(s).
Origin: the initial starting place of the journey as shown on the ticket.
Other Charges: charges such as taxes, fees, etc., excluding excess baggage
charges.
Passenger: any person, except members of the crew, carried or to be carried
in an aircraft with the consent of the carrier.
Passenger Name Record (PNR): a record of each passenger's travel
requirements which contain all information necessary to enable reservations to
be processed and controlled by the booking airline and the airline(s) partici-
pating in the carriage.
Plating Carrier: The carrier whose ticket stock was used to issue the ticket.
Also known as Validating Carrier.
Point of Turnaround: The farthest geographical fare break on the Pricing Unit
measured from the point of origin. Not applicable to one way pricing units.
Rebooking: a change to the reservations data without a change of ticketed
points.
Glossary 1149
Reconfirmation: a requirement that passengers, under certain given circum-

stances, advise a carrying airline of their intention to use the space reserved.
Refund: the repayment to the purchaser of all or portion of a fare or charge for
unused carriage or service.
Related Charges: charges such as cancellation penalties, nonrefundable
amounts, rebooking and rerouting charges, refund/reissue overrides, stopover
charges, weekend surcharges etc., baggage charges and excess baggage
charges.
Rerouting: any change to ticketed points.
Revalidation: an internal process enabling carriers to synchronise the
electronic ticket flight coupons when changes to a reservation are made.
However, this only applies when the Validating Carrier is also the
Marketing/Operating Carrier and no change in fare is applicable. This
procedure does not apply to interline bookings.
Round Trip: travel entirely by air from a point to another point and return to the
original point, comprising two half round trip fare components only, for which
the applicable half round trip fare for each component, as measured from the
point of unit origin, is the same for the routing traveled.
Scandinavia: Denmark, Norway and Sweden.
Sideline City: to city in the fares list.
Standard Traffic Document: accountable documents such as tickets and
EMDs. Such documents may be issued mechanically or electronically for air
passenger transportation over the lines of the carrier and for related services
which the carrier authorized. They do not bear any airline identification until
after validation by the agent.
Stopover: when a passenger arrives at an intermediate point and is scheduled
to depart later than 24 hours after arrival (local time). EXCEPTION: For travel
wholly within Central America or for travel wholly between Central America and
Panama: a stopover is when a passenger arrives at an intermediate point and
is scheduled to depart later than 6 hours after arrival (local time).
Surface Sector: a gap; sector not travelled by air but by land or sea.
Tariffs: the published fares, rates, charges and/or related rules of carriage of a
carrier.
Through Fare: a fare applicable for travel between two consecutive fare
construction points via an intermediate point(s).
Ticket: the document entitled ‘Passenger Ticket and Baggage Check’ or the
electronic ticket issued by or on behalf of the carrier and includes the
Conditions of Contract and notices and the flight and passenger coupons
contained therein.
Ticket, Conjunction: a ticket issued to a passenger concurrently with another
ticket(s) which together is considered a single contract of carriage.
Ticketed Point Mileage (TPM): the distance between pairs of points.
Ticketed Point: points shown in the fare calculation field.
Traffic Document: value documents issued manually, mechanically or elec-
tronically for air passenger transportation over the lines of the Airline and for
related services, whether or not they bear a pre-printed individual airline
identification.
Traffic Document, Standard: a neutral BSP electronic ticket or an Electronic
Miscellaneous Document.

Transfer Point: any point at which the passenger transfers from the services
of one carrier to another service of the same carrier (bearing a different flight
number) or to the service of another carrier. A transfer point may be a stopover
or no stopover (connection) and is also called an intermediate point.
Universal Air Travel Plan (UATP): facilitates the sale of air transportation and
related services on a credit basis using Air Travel Cards.
Unrestricted fare: a fare published in any cabin class with the most flexible
rule provisions and conditions.
Validating Carrier: the issuing airline (or plating carrier) whose numeric airline
code is reflected in the electronic transaction for the flight coupon(s). This is the
controlling and authorising entity for Electronic Ticketing transactions.
Via (carrier): When used in conjunction with a carrier code, means
“applicable to” the routing when such carrier’s tariff is used.
Void: act of invalidation. Voiding an ET can only take place when all the
coupons are “OPEN” (i.e. totally unused) in accordance with the rules of the
Billing and Settlement Plan. In most BSPs, this means that voiding is only
allowed on the day of ticket issuance.
Glossary 1151

Module 13:
Technology in Travel: Distribution and
Airline Retailing with NDC
Module Prerequisites • Shop, make and manage bookings in a GDS system.

Before beginning this • Describe airline ancillary products.
• Explain airline website functionalities and booking procedures.
• Define how travel agents make and manage flight reservations via indirect
distribution tools.
• Explain how NDC enables airline suppliers and online booking engines to
enhance the distribution of travel products and overcome ancillary shop-
ping limitations.
Module Learning
Objectives • Compare how traditional and new technologies are changing the travel
shopping and journey experience for self-service consumers.
you will be able to: • List the core changes / benefits that New Distribution Capability (NDC) will
create for travelers and travel professionals.
Module Introduction
The travel industry is highly dependent on technology. It relies on a number of
interconnected systems to make travel products available globally and to
manage every part of the traveler’s journey. Technology in the travel industry
continuously evolves. It allows travel companies to sell a travel experience by
packaging travel components according to traveler needs and preferences.
Travel companies must rely on technology to collect data about traveler
patterns in real time, using this data to create attractive products and services
and offer meaningful deals.
Travel consumers are also evolving. They are better educated about travel
suppliers and products. They expect to choose products according to their
needs and preferences.
Consumers are also dependent on technology, relying on mobile devices and
the Internet for daily living. They are used to buying goods and services online,
when they want and quickly. But they cannot be intimate with every travel
supplier’s products and services without investing significant personal research
time.
Travelers who need or want to save research time will ask for a travel
professional’s help, especially when travel arrangements are very complex for
do-it-yourself arrangements. Unfortunately, traditional tools available to travel
professionals come with more complex booking procedures and sometimes
with limited flexibility compared to supplier websites. Current tools, the GDSs,
don’t really facilitate upselling, especially when it comes to packaging a seat
with preflight, inflight and post flight ancillaries. They may not be able to offer
the products their customers can access on the airline’s website. On the other
hand, if travel professionals use supplier websites to book travel, they normally
cannot control the booking and manage their customer’s arrangements.
This is an online study Module. You can access this Module in your IATA User
Account. There are online and downloadable documents to aid your learning.
There is no maximum login time for this Module. However, once your course
enrolment period expires, you will no longer be able to access this module.
This module is divided into 3 units.
Unit 13.1 illustrates how airlines distribute their products and services to market
through a variety of distribution channels. It gives an overview of how travel
products are traditionally distributed through direct and indirect channels. You
will also learn how travel intermediaries resell airline products and services
through technology.

Unit 13.2 will introduce you to the New Distribution Capability (NDC) - a
standard developed by IATA that is being adopted by many industry players to
improve the distribution of travel products. It changes the way systems present
airline products and services. Today’s travel consumers demand that suppliers
deliver a personalized experience. This new technology allows travel suppliers
and intermediaries more flexibility to customize the journey.
Unit 13.3 examines the future landscape of travel distribution, and how NDC
allows market participants to simplify travel, adopting and leveraging new
technologies to improve customer service and the customer’s experience.
You will also practice managing travel in a simulated direct model distribution
system.
1156 Module 13: Technology in Travel: Distribution and Airline Retailing with NDC
International Air Transport Association
ISBN 978-92-9229-751-0
custserv@iata.org
+1 800 716 6326
iata.org/publishing

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Foundation in Travel

© International Air Transport Association. All

Foundations in Travel and Tourism

Course Guide ......................................................................................................................... 1

Module 3: Travel Formalities............................................................................................. 183

Module 4: Air Transport Essentials ..................................................................................265

Module 5: Land Transport: Introduction to Passenger Rail ...........................................429

Module 8: Water Transport: Ferries and Cruises ............................................................659

Module 9: Tour Packages.................................................................................................. 697

Module 10: Serving the Travel Customer.........................................................................735

Module 11: Electronic Booking Tools ..............................................................................833

Module 12: Fundamentals in Air Fares and Ticketing.....................................................837

Getting Better Acquainted

The Changing Environment of the Travel and Tourism

Industry Recognized Qualification

Getting Better Acquainted 3

About IATA Training

Career Development with IATA Training

IATA Training Partners

So What Exactly is in this Course?

Getting Better Acquainted 5

7 Hotel Products and Services

Serving the Travel Customer

10 Win customer loyalty through positive customer

Getting Better Acquainted 7

Fundamentals in Air Fares and Ticketing

12 Assess the fare for travel by air as provided by

13 Distribution and Airline Retailing with NDC

Course Attachments A/B/C/D/E

Access Instructions for Modules 11 and 13

Getting Better Acquainted 9

Navigation Instructions for Online Technology

How the Lessons Work

Part 1 of Lesson 1 is dedicated to helping you learn how to navigate between

Getting Better Acquainted 11

Module Learning Objectives

Unit Learning Objectives

Key Learning Points

Did You Know?

Apply Your Learning

Other Resources and References

Accessing your IATA Training LMS User Account

Getting Better Acquainted 13

Online Practice Exam

Online Practice Exam Access Instructions

Getting Better Acquainted 15

7. You are now in the Practice Exam. Answer all questions.

Getting Better Acquainted 17

8. Once you're done, click on the submit exam button.

Examination Coverage Information

Getting Better Acquainted 19

- Electronic Booking Tools (EBT)

Module Prerequisites • A good knowledge of English.

1.1 The Role of the Travel Industry Professional

1.1.0 Unit Overview

1.1.1 An Exciting Profession

Key Learning Point

Key Learning Point

1.1.2 Be a Part of the World's Largest Growth

Year Number of International Approximate change over previous