Travel Agencies Industry Terminology

ADM (Agency Debit Memo)

A post-sale billing adjustment issued by an airline or ARC to an agency to recover under-collected amounts, policy violations, or fees (e.g., incorrect fare/tax, invalid waiver, noncompliant refunds/exchanges).

We received an ADM for an under-collected YQ surcharge.; Always document the waiver code in the PNR to avoid an ADM.; Hidden-city ticketing can trigger costly ADMs.

ADR (Average Daily Rate)

Hotel revenue metric equal to total room revenue divided by rooms sold (excluding comps); used alongside RevPAR and occupancy to gauge pricing performance.

Our negotiated rate must be below the property's weekday ADR.; The TMC dashboard shows ADR by market.; Raising ADR without hurting occupancy improved the account's hotel savings.

Advance Purchase Fare

A discounted fare that requires ticketing a minimum number of days before departure and typically enforces restrictions (change penalties, nonrefundable).

The 21-day advance purchase fare disappears after midnight.; APEX rules block same-day ticketing.; Corporate policy allows advance purchase to capture savings.

Agency Model

Commercial model where the traveler pays the supplier directly; the agency earns commission or fees while the supplier is merchant of record.

Most air bookings run on the agency model via GDS.; With agency model hotel rates, the property collects payment at checkout.; Switching channels changed our commission from merchant to agency model.

Allotment

A pre-negotiated block of rooms or seats held for an agency/tour operator for a period, often with a release date and stop-sale provisions.

We have a 20-room allotment with a 7-day release.; Stop-sale closed the allotment over festival dates.; Unused allotment goes back to the hotel after release.

Ancillary Revenue

Income from add-ons beyond the base fare or rate, such as bags, seats, meals, Wi‑Fi, priority services, insurance, or resort fees.

Upselling seat selection increased ancillary revenue per PNR.; Cruise NCFs reduce commissionable revenue but ancillaries offset it.; NDC content exposes more ancillaries.

ARC (Airlines Reporting Corporation)

US settlement and accreditation body that enables agencies to issue and report airline tickets and manage debit/credit memos.

Submit the weekly ARC sales report by Monday.; Our ARC number is required to plate on AA.; The ADM came through ARC Memo Manager.

ATPCO (Airline Tariff Publishing Company)

Industry utility where airlines file fares, rules, and ancillaries for distribution to GDS, NDC, and pricing engines.

The carrier filed a weekend sale through ATPCO.; CAT 35 private fares are loaded in ATPCO.; Our pricing tool consumes ATPCO fare data.

Booking Class

The inventory code (letter) indicating fare bucket and availability that ties to fare rules and mileage accrual.

The corporate fare books in booking class K.; No seats left in J; check Z or C.; Mixed booking classes complicate reissue pricing.

Branded Fares

Fare families bundling features (bags, seat, changes) under tiered brands to simplify upsell and merchandising.

Choose the Flex brand for free changes.; NDC shows more branded fares than the GDS.; Brand parity is part of the airline's merchandising strategy.

BSP (Billing and Settlement Plan)

IATA’s agency settlement system used outside the US to remit airline sales and manage ADMs/ACMs.

Report sales via BSPLink by the remittance date.; Our IATA number is active in three BSP markets.; The ADM posted in BSP for incorrect taxes.

CAT 35 Private Fare

A negotiated or private fare category in ATPCO, often net or commissionable, restricted to authorized agencies via fare rules/IT fares.

Ticket it as a CAT 35 with our tour code.; Private fare auto-prices only in our PCC.; Do not disclose CAT 35 net to the traveler.

Code Share

An agreement where one airline markets a flight under its code while another operates it, affecting ticketing, accrual, and service rules.

Ticket on the marketing carrier but check operating carrier baggage policy.; Code share availability differs by GDS.; Miles credit depends on the booking class and operating carrier.

Consolidator

A wholesaler selling discounted or net airfares (often international) to agencies, enabling markups and opaque pricing.

Price the consolidator net and add a service fee.; Consolidator tickets may have stricter rules.; Use consolidator content when published fares are uncompetitive.

Contracted Rate

A negotiated rate between an agency/corporate client and a supplier (hotel, airline, car) with specified terms, blackout dates, and compliance metrics.

The LRA contracted rate applies except during citywides.; Audit hotel folios to ensure the contracted rate is honored.; Airline deals tie discounts to market share targets.

CRM (Customer Relationship Management)

Systems and processes for managing client data, interactions, and campaigns to drive retention, cross-sell, and service.

Log every inquiry in the CRM.; Segment leisure clients by spend for targeted offers.; CRM data feeds our email marketing.

Cross-Sell

Selling complementary products to the primary booking to increase basket size and value.

After flight selection, cross-sell insurance and lounge access.; Use hotel widgets to cross-sell stays on air-only PNRs.; Scripts prompt agents to cross-sell car rentals.

CRS (Central Reservation System)

A hotel brand’s central inventory and rate management platform connecting channels (brand.com, call center, GDS).

The hotel pushed a stop-sell in the CRS.; Rate parity is controlled in the CRS.; CRS downtime impacted GDS availability.

DMC (Destination Management Company)

Local specialist organizing ground services (transfers, tours, events) for FITs and groups, often white-labeled by agencies.

Our DMC secured private guides.; RFP the DMC for gala logistics.; Leverage DMCs for on-the-ground IRROPS support.

Duty of Care

The obligation to help keep travelers safe by tracking, informing, and assisting during risks; core to corporate travel programs.

Duty of care requires itinerary visibility and traveler tracking.; Vendors must meet SLA for emergency assistance.; Send alerts for strikes per duty-of-care policy.

Dynamic Packaging

Building itineraries by combining live air, hotel, car, and activities pricing in real time, often at opaque bundle pricing.

Dynamic packages yield better margins than standalone.; Our engine adjusts bundles by POS.; Use dynamic packaging to avoid rate parity constraints.

EMD (Electronic Miscellaneous Document)

An IATA document used to collect/track fees and services not in the e-ticket, such as bags, seats, residual value, and penalties.

Issue an EMD-S for prepaid seat.; The change fee was collected on an EMD.; Carry forward the residual EMD to the reissue.

E-ticket (Electronic Ticket)

The electronic record of a passenger’s paid transportation containing coupons; replaces paper tickets.

The e-ticket number starts with the carrier’s ticket stock.; Ensure all coupons are open for use before reissue.; Void within the same day per ticketing time limits.

Fare Basis Code

The alphanumeric code that identifies a fare and references its rules (seasonality, min/max stay, penalties).

Check the fare basis to confirm refundability.; Two fare bases priced in the same PNR.; Branding maps to different fare bases.

FFP (Frequent Flyer Program)

A loyalty program awarding miles/points and status benefits tied to revenue or distance and elite tiers.

Enter the traveler’s FFP in the PNR.; Corporate travelers prioritize alliance status.; Status match offers can sway share.

FIT (Free Independent Traveler)

A non-group traveler itinerary tailored to individual preferences; also used to describe flexible, non-escorted packages.

Design a luxury FIT to Japan.; FIT quotes require detailed profiling.; DMC rates work well for FIT components.

GDS (Global Distribution System)

A platform (Amadeus, Sabre, Travelport) connecting agencies to airline, hotel, and car content with booking, ticketing, and mid-office tools.

Queue the PNR in the GDS for ticketing.; NDC content varies by GDS.; Segment fees apply to GDS bookings.

GIT (Group Inclusive Tour)

A pre-packaged group itinerary sold at a per-person price, often with group air and contracted hotel space.

Quote a GIT for the 30‑pax choir.; Allotment supports the GIT departure.; Group policies differ from FIT terms.

IATA (International Air Transport Association)

Trade association governing standards (BSP, ticketing, NDC) and agency accreditation; also airline two- and three-letter codes.

Our IATA accreditation enables BSP ticketing.; Look up the carrier’s IATA code.; IATA resolution changes impacted refunds.

Interline Agreement

An agreement enabling airlines to accept each other’s tickets and baggage, with prorated revenue settlement.

Rebook on a partner via interline during IRROPS.; Interline availability may be blocked on basic fares.; Check if the fare permits interline reissues.

IRROPS (Irregular Operations)

Disruptions such as delays, cancellations, and misconnections requiring rebooking and traveler assistance.

Follow the IRROPS policy for waivers.; OBT pushes IRROPS to agent assistance.; Communicate alternates during IRROPS events.

Itinerary

The ordered list of trip segments, times, and services forming the traveler’s plan, often exported to mobile and duty-of-care tools.

Send the itinerary to the traveler’s app.; Ensure the itinerary reflects schedule changes.; Visa checks depend on the final itinerary.

KPI (Key Performance Indicator)

Quantifiable metric to gauge performance (online adoption, savings, SLA attainment, traveler satisfaction).

Set a 70% OBT adoption KPI.; Quarterly review tracks KPIs vs targets.; Agent QA score is a service KPI.

Layover

A connection shorter than the stopover threshold (often under 24 hours international, under 4 hours domestic), usually priced as a connection.

A 3‑hour layover in ORD is valid per MCT.; Layover meals are not reimbursable.; Avoid overnight layovers per policy.

LCC (Low-Cost Carrier)

An airline with simplified service and ancillary-based pricing, often outside traditional GDSs or using light ticketing.

The LCC offers lower base fares but higher ancillaries.; Some LCCs sell only via NDC or direct.; Mixing LCCs complicates through-checking.

Markup

The amount added to a net rate or consolidator fare to create the sell price; distinct from service fees and commissions.

Apply a 12% markup on net hotel rates.; Keep markup opaque in the package price.; Margin eroded when we reduced markup.

MCT (Minimum Connection Time)

The minimum allowable time between connecting flights at a given airport per airline/airport standards used by pricing/validations.

The GDS rejects connections under MCT.; Weather buffers added on tight MCT airports.; City pair MCT differs by carrier and terminals.

Merchant Model

Commercial model where the agency or OTA is merchant of record, collecting payment from the traveler and remitting net to the supplier.

Merchant hotel rates bill the traveler now with agency invoicing.; Tax handling differs under the merchant model.; Dynamic packaging often uses the merchant model.

MICE (Meetings, Incentives, Conferences, Exhibitions)

The events segment for groups and corporate gatherings requiring venue sourcing, air, housing, and logistics.

Our MICE team handles the global sales kickoff.; Issue an RFP for the MICE venue.; Track pickup against the MICE room block.

NCF (Non-Commissionable Fare)

Cruise fare components excluded from commission (e.g., port fees, taxes, some surcharges).

Commission applies only to the cruise fare, not NCFs.; Compare lines by NCF policy.; NCFs affect net yield per booking.

NDC (New Distribution Capability)

IATA XML/JSON standard enabling modern retailing of air content (offers, orders, ancillaries) beyond legacy EDIFACT.

The carrier moved domestic fares to NDC-only.; Our aggregator normalizes NDC content.; NDC supports rich media and bundles.

Net Rate

A confidential, pre-commissioned rate from a supplier to an agency/wholesaler to which markup is added.

We received a net rate sheet from the DMC.; Net rates must remain opaque to the traveler.; Package pricing is built off net rates.

OBT (Online Booking Tool)

Corporate self-booking platform integrated with policy, profiles, content sources, and approval workflow.

Increase OBT adoption to reduce agent-assisted fees.; NDC integration varies by OBT.; The OBT flags out-of-policy choices.

Open Jaw

A round-trip fare where the origin or destination differs on the return (e.g., A to B, return C to A), allowed by fare rules.

Build an open-jaw: JFK‑LHR, CDG‑JFK.; Open jaws can price better than two one-ways.; Check if the fare permits surface sectors.

OSI (Other Service Information)

A free-text PNR element sent to suppliers with non-actionable info; unlike SSR, it does not request a service.

Add an OSI with the VIP flag for the hotel.; Insert OSI to inform about late arrival.; Do not use OSI for wheelchair—use SSR.

Override Commission

Additional commission paid to agencies for meeting volume/share targets with a supplier.

We hit the override threshold with Carrier X.; Overrides post quarterly after audit.; Shift share to protect overrides.

PAX (Passenger)

Industry shorthand for a traveler count or person.

Quote for 2 pax, 1 room.; The tour has 40 pax confirmed.; Add the pax email to the PNR.

PCC (Pseudo City Code)

A unique GDS identifier for an agency office or branch controlling access, queues, and content.

Private fares are visible only in our main PCC.; Queue to the ticketing PCC.; The supplier whitelists our PCC for promotions.

PNR (Passenger Name Record)

The reservation record containing traveler data, itinerary segments, fares, and remarks, identified by a locator.

Retrieve the PNR by record locator.; Store waiver codes in the PNR remarks.; Split the PNR to ticket separately.

PSS (Passenger Service System)

An airline’s core system for inventory, reservations, ticketing, and departure control (e.g., Amadeus Altea, SabreSonic).

The carrier’s PSS cutover caused schedule changes.; Interline limitations stem from PSS differences.; NDC must synchronize with the PSS.