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Education resource for the group travel supplier


Thursday, 11 August 2011 10:38

Glossary of Terms

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Essential Terms and Acronyms for the Group Travel Supplier

American Bus Association (ABA): A trade organization consisting of member bus lines throughout the country.

American Society of Travel Agents (ASTA): The oldest and largest travel agent organization in the world with travel agents being the primary members. Other companies providing travel industry products and services can be associate members. A comprehensive online directory for consumers and group travel planners, listing charter bus operators, hotels, restaurants, attractions, events and all other group activities.

Certified Tour Professional (CTP): A designation administered by the National Tour Foundation and conferred upon tour professionals who complete prescribed evaluation requirements.

Certified Travel Counselor (CTC): A designation conferred upon travel professionals who have completed a travel management program offered by the Institute of Certified Travel Agents.

commercial rate: A special rate given by a hotel or rental car, motor coach, bus or passenger transport company to an organization based on either the volume of business done or the type of accommodation or rental car. Also referred to as a corporate rate.

commission: The varying amount paid by suppliers to travel agents for the sale of travel products and services.

commissioned tours: A tour available for sale through retail and wholesale travel agencies, which provides for a payment of an agreed upon sales commission either to the retail or wholesale seller.

complimentary (comp): Service, space or item given at no charge.

complimentary ratio: The number of rooms provided at no cost based on the number of occupied rooms. The industry standard is one complimentary room per 50 rooms occupied per day.

complimentary registration: Waiver of registration fees.

Convention & Visitors Bureau (CVB): A nonprofit organization supported by bed taxes, government budget allocations, private memberships or a combination of these. A CVB promotes tourism, encourages groups to hold meetings and trade shows in its city, and assists groups before and during meetings.

destination management company (DMC): Company or professional individual engaged in organizing tours, meetings of all types and their related activities. Also referred to as a ground operator.

destination marketing organization (DMO): A nonprofit marketing organization for a city, state, province, region or area whose primary purpose is the promotion of the destination.
emerging market A group of customers who do not provide as much business as the target markets, but show interest in the destination.

familiarization tour (FAM): A program designed to acquaint participants with specific destinations or services. Offered in groups and on an individual basis.

foreign independent travel (FIT): A custom-designed, pre-paid travel package with many individualized arrangements. An FIT operator specializes in preparing FITs documents at the request of retail travel agents. FITs usually receive travel vouchers to present to onsite services as verification or pre-payment. Also know as foreign individual travel.

group booking: Reservation for a block of rooms for a single group.

group tour: A prearranged, prepaid travel program for a group usually including transportation, accommodations, attraction admissions and meals. Also referred to as a package tour.

incentive travel: A travel reward given by companies to employees to stimulate productivity. Also known as an incentive trip.

inclusive tour: A specific package in which all components of the package are part of the price. Generally, an inclusive package includes transportation, lodging,meals, gratuities and taxes, and some form of sightseeing or rental car. The terms and conditions of a tour contract should specify exactly what is covered. Also referred to as an all-expense tour and an all-inclusive tour.

meet and greet: Pre-purchased service for meeting and greeting a client upon arrival in a city, usually at the airport, and assisting the client with entrance formalities, baggage and transportation.

motor coach: A large, comfortable, well-powered bus that can transport groups and their luggage over long distances.Motor coaches are normally able to accommodate 46 to 54 passengers.

motor coach tour operator: A company that creates tours in which group members are transported via motor coach to their destination, itinerary activities and back.

National Tour Association (NTA): A trade association of North American motor coach tour operators.

outbound operator (or outbound tour): A company or tour that takes groups from a given city or country to another city or country.

package: Travel arrangements with two or more components offered for one price, inclusive of all taxes. Also refers to a single-fee booth package offered by show management.

packager: An individual or organization that coordinates and promotes the development of a package tour and establishes operating procedures and guidelines for that tour.

Pow Wow International: A computerized scheduled appointment show for international tour operators always held in the United States and sponsored by U.S. Travel Association.

pre- and post-trip tours: Optional extension or side trip package offered before or after a meeting, gathering or convention.

receptive operator: A tour operator who provides local services, transfers, sightseeing, guides, etc.Many large receptive operators develop packages and sell them through wholesale tour operators in foreign countries. Also referred to as a ground operator, an inbound tour operator, a land operator and a receiving agent.

request for proposal (RFP): A document that stipulates what services the organization wants from an outside contractor and requests a bid to perform such services.

return on investment (ROI): Net profit divided by net worth. A financial ratio indicating the degree of profitability.

revenue per available room (RevPAR): A measure used by hotels that divides revenue for a given time period by the number of available rooms for the same time period.

sales mission: Intense selling effort in a particular locality; cold calling to qualify leads. Usually performed by a group of people from one organization who may or may not all be in a sales capacity.

SMERF: Meetings acronym for a category of meeting market segments including social, military, educational, religious and fraternal type groups. These organizations often are looking for value when selecting a meeting destination.

supplier: The actual provider of a travel product such as the hotel, airline or car rental agency; not the travel agent or tour operator selling the product.

trade association: Group of persons employed in a particular trade.

trade publication: A magazine that targets a specific industry.

trade show: Exhibit of products and services that is targeted to a specific clientele and not open to the public.

travel agent (or travel agency): Person or firm qualified to advise and arrange for travel needs such as hotel rooms, meals, transportation, tours and other travel elements. Represents all travel suppliers worldwide. Also referred to as a retailer.

travel recepit: purchase of travel and tourism related goods and services by visitors. These goods and services include food, lodging, recreation, gifts, entertainment, local transportation and other items incidental to travel.

United Motor Coach Association (UMA): North America's largest association for operatrs of motorcoach companies providing charter, tour and regular route services.

United States Tour Operators Association (USTOA): A nationwide organization of tour operators offering protection for travelers purchasing member travel products by way of a multi-million-dollar bond.

U.S. Travel Assoication: The national, nonprofit association representing all components
of the U.S. travel industry.

webinar: Short for web-based seminar, a presentation, lecture, workshop or seminar that is transmitted over the web. A key feture of the webinar is its interactive elements – the ability to give, receive and discuss information. Contrast with webcast in which the data transmission is one way and does not allow interaction between the presenter and the audience.

World Tourism Organization (WTO): An organization created to promote and develop tourism in the interest of the economic, social and cultural progress of all nations.

World Travel Market (WTM): A United Kingdom trade show that is a dedicated business-to-business forum with more than 40,000 industry professionals from 150 countries in attendance.

Source: Scottsdale CVB

Click here to view the full “Tourism Terms Made Simple” list from the Scottsdale CVB.


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