Word or Term

Meaning

Agent’s Commission

Usually a percentage taken OFF the selling price and kept by the agent.  This is how the agent makes their profit.

BBR – 

Bank Buying Rate

The rate the bank buys foreign currency e.g. when you convert foreign currency to local currency you use this rate.

BSR – 

Bank Selling Rate

The rate the bank sells foreign currency e.g. when you convert local currency to foreign currency you use this rate.

Business Events

Business Events sector formerly known as the MICE sector

Child

Usually over 2 years old and under 12 years old for international travel.  Some exceptions may apply e.g. air travel within Australia a child is between 3 & 15 years.

Client

The company/person for whom the retail travel agent is preparing the quote.  

Conditions of Sale

The conditions on which the quote is based.  Payment requirements, cancellation policy, min/max numbers, legal agreements.  These are the rules of the contract

Consolidator

Company which negotiates net/net rates with a variety of airlines and on sells them to travel agents, tour wholesalers at net rates.  The volume they generate means consolidators’ airfares are often very attractive.

Contract Rates

Rates negotiated between the tour wholesaler and the supplier.

Exclusions

All components not included in the quote e.g. meals, excess baggage charges, entrance fees.

Extra bed

A price is often charged to bring an extra bed (usually a rollaway bed) into a hotel room.  

FIT – Fully Independent Traveller

Traveller who is not part of a group tour.  They may be doing their ‘own thing’, but use contract rates.  Often used for travel to Pacific Islands, car-hire tour of Europe, U.S.A. etc.

FOC – Free of Charge

A client who does not pay for their travel arrangements, but who receives them free of charge.  You may need to negotiate FOC travel arrangements with principals.  Usually reserved for VIP clients, corporate clients or tour leaders.

Foreign Currency

The currency of another country outside the country of the tour.

Gross Price

The price including mark up and commission.  Same as selling price.

Group

A group of travellers who are following the same itinerary at the same time.

Inclusions

All components that are included in the quotation e.g. transport, sightseeing, accommodation.

Infant

Usually under 2 years. For air travel within Australia it is under 3 years.

Local Currency

The currency of the country to which the client is travelling.  e.g. if you are travelling in France the local currency is Francs, while in Japan it is Yen.

Mark Up

An amount or percentage ADDED to the net price charged by the principals.  It is the profit retained by the Tour Wholesaler.

Maximum Numbers

Maximum number of passengers allowed on a tour.  This may be the capacity of the coach or other capacity restrictions.

Maximum Stay

Maximum amount of time allowed to stay at a destination. Often a rule for promotional airfares.

Minimum Numbers

Minimum number of passengers required to allow the tour to operate at a given price.

Minimum Stay

Minimum amount of time required to stay at a destination. Often a rule of promotional airfares.

Net Price

The price paid to the Tour Wholesaler or Tour Operator by the retail travel agent for the travel arrangements.  The net price has the retail travel agent’s commission deducted from it at point of sale by the retail travel agent.

Net/Net Price

The price paid by the Tour Wholesaler or Tour Operator to the principal (supplier) for the tour components.  This is the actual cost of the travel arrangements. 

Optional Tours

Additional tours that the passenger can take once they arrive at a destination.  These are arranged on the spot and passengers pay an additional price.  They are not included or compulsory.  They often enhance the experiences and memories of the package tour.

Override Commission

Extra commission paid to a retail travel agent or tour wholesaler based on additional sales volume.  This is like a bonus payment for increased sales.

Per Person

Price for each person on the package tour.  Price for each person staying in the one room.

Per Room

Price for a room.  A room can be single, twin, double, triple, quad or family room.  Cost is divided by the number of occupants to get a per person rate.  Often there is a per room rate for 1-2 occupants, after which an extra bed rate is charged.

Porterage

Charges incurred for carrying bags at airports and hotels.

Preferred Agent

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Retail Travel Agent who sells large volumes of a particular product and receives override commission.  A preferred agent is usually a company, not the consultant.

Principal

Owner of the service or tour component e.g. airline, coach company, hotel.

ROE - Rate of Exchange

The rate provided by the bank to convert foreign currency into local currency.  There is a selling rate and a buying rate.

Selling Price

The price paid by the passenger/client.  Usually the price printed in the brochure.  Also called the ‘Brochure Price’. Includes retail commission.

Single Supplement

Additional amount paid by the client for single occupancy of a room.

Taxes

Charges imposed by governments.  These must be included in tour quote and can be significant amounts.  Often based on a percentage amount.  e.g. Room Rate + 5% tax

Tips

Additional amount paid for service, usually paid to porters, waiters or other similar service providers

Tour Leader

A person who leads a group of people of common interest on a tour.  They don’t usually manage day-to-day operation of the group, but are a member of the group.

Tour Manager

Person escorting the passengers throughout the tour.  Also known as, tour escort or tour guide.  Manages all aspects of the tour.

Tour Operator

Company which operates tours and other ground arrangements on behalf of tour wholesaler.  Often a principal.  Tour operators are inbound (within own country) or outbound (outside own country).

Tour Wholesaler

Company, which combines different services into a tour and on, sells this product to travel agents.  They produce brochures to promote their tour products.

Transfers

Direct travel between two locations.  Usually between airports and hotels; wharves and hotels; hotels and hotels.

Triple Reduction

Discounts may apply if three people sharing a room together using existing bedding.

Twin Share

Rate for two people sharing a room.  They may or may not be travelling together.

Validity

The period for which the quote is applicable.