IATA Vocabulary

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  1. Billing & settlement plan (BSP)
    Payment system set by the International Air Transport Association (IATA) worldwide to process, supervise and regulate payments by travel agents to airlines
  2. Commission
    Fee paid to an agent by a supplier for transacting a piece of busines or performing a service, usually expressed as a percentage of the transaction value.
  3. Commission capping
    Placing maximum ceiling on individual commission payments, usually after lowering the previous rate.
  4. 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.
  5. 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.
  6. Disintermediate
    Cut a middleman out of a distribution/selling process.
  7. 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.
  8. 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.
  9. Frequent flyer programme/points
    Loyalty programmes 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.
  10. 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.
  11. Gross domestic product (GDP)
    The market value of a country's output attributable to factors of production located in the country's territory.
  12. General sales agent (GSA)
    A travel intermediary who becomes an appointed exclusive distributor for a particular travel product in a particular region or country. Usually acts as that product's full representative and gets an overriding commission for meeting sales targets and servicing sales agents.
  13. Government advisories
    Warnings posted by governments to their citizens about travelling to specific destinations, usually in the aftermath of political problems, weather disturbances or health-scares.
  14. Inbound tour operators
    Companies that handle and operate the tours coming into a country, as sent by the outbound tour operators from the dispatching country.
  15. Incentives
    Holidays given as a reward to company executives for meeting sales or productivity targets. Usually reqquire higher standards of services and facilities than just regular tours available from travel agents.
  16. Net rates
    Basic rates quoted by product sellers to wholesalers or tour operators, which do not include taxes, service charges or commissions. They usually leave the wholesalers or tour operators free to add own mark-up.
  17. Outbound tour operators
    companies which operate outbound tours from a country; usually, are also wholesalers.
  18. 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.
  19. Prorating
    Share proportionately according to an exactly calculable factor; to divide to distribute or assess proportionately
  20. Product/commodity
    Goods or services used to satisfy demand
  21. Sustainable tourism
    Any initiative that aims to create employment and income generation with the least harmful impact on natural ecosystems and local cultures.
  22. Tour wholesaler
    Tour company that combines various components of the travel industry such as hotels, airlines and local attractions, into a "package" for a sale by retailers.
  23. Travel & entertainment costs
    The costs incurred by company eecutives on business trips for travel, accommodation, communication, and entertainment of clients or customers.
  24. Umbrella organisation
    An administrative and functional structure overseeing a number of smaller administrative units.
  25. 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.
  26. Voluntourism
    Travel which includes volunteering to work on a project that will improve a destination's ecological or social well-being.
  27. Wholesaler
    Merchant middleman who sells chiefly to retailers, other merchants, etc. for resale or business use.
  28. Climate
    the average weather over an extended period of time
  29. Continental drift
    The lateral movement of continents resulting from motion of the earth's crustal plates
  30. Continenets
    the major land masses of the world
  31. Cultural geography
    the study of ow geography influences people's behavior, customs and habits.
  32. 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
  33. Daylight savig time
    a time of year in certain regions in the world when clocks are set forward to extend daylight into evening hours
  34. Destination
    a location that a traveller chooses to visit
  35. Destination geography
    the study of all of the properties and characteristics of a location that influence travel.
  36. Elapsed travel time
    the actual time spent travelling from one destination to another,.
  37. Event effect
    an occurrence, either positive or negative, that can disproportionately affect travel to a geographic area.
  38. Event effect
    an occurrence, either positive or negative, that can disproportionately affect travel to a geographic area.
  39. Greenwich mean time (GMT)
    the time at Greenwich, England
  40. International date line
    an imaginary line that is both 12 hours ahead of and 12 hours behind GMT.
  41. Low season
    the period during which tourism is at its lowest level.
  42. Peak season
    the period during which tourism is at its highest level.
  43. Physical geography
    the study of the world's natural terrain and features.
  44. Prime meridian
    an imaginary line running through Greenwich, England that connects the north and south poles.
  45. Shoulder season
    the period during which tourism is between low season and peak season
  46. Touristic patterns
    a predictable combination of characteristics and qualities that describe why, how and when people travel.
  47. Universal time coordinated (UTC)
    another term for Greenwich Mean Time (GMT)
  48. 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.
  49. Age Limits
    Minimum or maximum ages established by insurers for eligibility for certain kinds of insurance offered, typically life, health and disability insurance.
  50. 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.
  51. Baggage and Personal Effects Insurace
    Insures against loss of the insured's luggage and personal effects. Often forms part of a travel insurance package policy where coverage is ecess over that provided by others.
  52. Beneficiary
    The person designated by the insured to receive policy proceeds, in the event of the death of the insured.
  53. Benefits
    The amount payable to the insured person by the insurance company as described in the insurance policy.
  54. Bilateral agreement
    An agreement between two countires or states.
  55. Booster
    A further injection after the initial vaccination and that extends the period that an individual remains immune against the disease.
  56. Cabin
    the part of an aircraft in which passengers are seated.
  57. Cancellation Penalty
    A non-refundable amount charged to the traveller for cancelling the trip proior 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. hte insured traveller is sick or a close family member has died.
  58. 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 flgith.
    • Check- in involves an examination of documents (passport, ticket and visa), issue of a boarding card and acceptance of luggage by the airline.
  59. Claim
    A request for payment by an insured person according to the insurance policy
  60. Claimant
    An insure person who make a claim after suffering a loss.
  61. Conditions of an Insurance Policy
    The general conditions or requirements for insurance, including how the policy can be cancelled and what the insured should be in the event of a loss.
  62. Contract of Insurance
    (the 6 essential elements)
    • offer and acceptance
    • consideration
    • legal object
    • parties to the contract must be legally capable of contracting
    • insurable interest
    • utmost good faith
  63. Coverage
    Amount of protection purchased
  64. Declarations
    statements, signed by the insured, promising that information given by him is true
  65. Deductible
    The amount paid by the insured client when submitting a claim.
  66. Deported
    This means being sent out of a country or 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 posses 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.
  67. Duty-free
    Refers to goods sold at airports, on which customs duty is not levied.
  68. Effective Date
    The start date of an insurance policy, or the date that additional coverage begins.
  69. Eligible Epense
    Expenses that can be claimed from (and paid by) the insurer.
  70. Endorsement
    A document that changes part of an insurance policy/contract.
  71. Exclusions
    Risks and emergencies not covered and paid by the insurance policy.
  72. Expatriates
    Individuals not living in their original homeland.
  73. Expiry Date
    The date on which the insurance coverage ends.
  74. Hold
    The part of an aircraft in which luggage and cargo is transported.
  75. IATA
    The International Air Transport Association
  76. 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.
  77. Injury
    Any accidental bodily injury
  78. Insurance
    A contract in which the insurer agrees to reimburse the insured for loss caused by specified risks.
  79. Insured
    the person or group being protected by an insurance policy.
  80. Insurer
    The insurance company providint insurance coverage.
  81. Limitations
    A maximum amout of money the insurance company will pay on a permitted claim.
  82. Long-haul
    Term referring to longer flight journeys
  83. Permanent Disability Benefit
    This coverage is for severe injuries received while travelling - such as a loss of limbs or damage to eyes.
  84. Policy
    a legal contract that includes details of the insurance coverage including all clauses, riders, endorsements and renewals.
  85. Pre-existing Condition
    A medical condition that exists prior to travelling and may limit or deny insurance coverage.
  86. Premium
    The amount paid by the insured for coverage under an insurance contract for a specified period of time.
  87. Quarantine
    Isolation imposed to prevent infection
  88. Reconfirmation
    Passengers are normally required to telephone carrier and (re)confirm their intention to fly.
  89. Renewal
    the extension of an insurance policy for another term
  90. Rider
    A benefit not included in the standard insurance plan, but can be added by paying an additional premium
  91. Risk
    A potential for loss
  92. Short-haul
    A term that refers to short flights - usually domestic flights and flights between neighboring countries.
  93. Statutory Conditions
    Standard legal conditionsin an insurance policy
  94. Stopover
    a term that refers to an intermediate destination visited between the city of origin and the ultimate destination.
  95. Transit
    An intermediary stop en route between the passenger's origin and ultimate destination.
  96. Travel Insurance Application
    The printed or online form provided by a Travel Agent confirming the purchase of travel insurance.
  97. Trip Interruption Insurance
    Provides coverage from the time travel commences until the return home. This insurance reimburses losses caused by returning earlier or later than planned for reasons allowed by the insurance policy
  98. Waiver
    Written confirmation that one intentionally refused to purchase travel insurance
  99. Wild flora and fauna
    Refers to various vegetation and species.
  100. Passenger name record (PNR)q
    A unique computerised file. A PNR is created by the booking agent and is used to communicate passenger details and inteded flight ininerary as well as other requests and information relevant to the carrier. Also referred to as a booking or reservation.
  101. Refund
    Reimbursement to the purchaser of all, or a portion, of a fare for an unused service.
  102. Season
    The period during which a tickt is valid for travel, as determined by the fare that is paid.
  103. Stand-by
    The term refers to a traveller who has no reservation but is ready to travel on a fully booked flight who waits to see if a seat becomes availbale (usually due to a no- show)
  104. Terminal
    Area at an airport where the formalities for departing and arriving passengers take place
  105. Ticket on departure (TOD)
    A procedure by which a treavel agent makes special arrangements for a passenger's ticekt ot be issued by airline staff at the departure airport.
  106. Transfer
    Process for transporting passengers from one terminal to another, or perhaps from an airport to a local hotel, usually by bus.
  107. Unaccompanied minor (UM)
    A child, up to the age of 12, who travels alone, not accompanied by an adult.
  108. Waitlist
    Passengers awaiting confirmation of a requested flight(s), that is/are currently fully booked.
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IATA Vocabulary
vocabulary from IATA text book.
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