Travel and Tourism Industry and the Travel Profession Glossary

 

Billing & settlement plan (BSP):	Payment system set up by the International Air Transport Association (IATA) worldwide to process, supervises 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/ eco tours:	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 acountry; 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
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.
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 merchants, etc. for resale or business use.