IATA Foundation (Aggregate Prep) study materials
IATA Foundation (Aggregate Prep) study resources

IATA Foundation (Aggregate Prep) key terms

IATA Foundation (Aggregate Prep) · Get comfortable with the vocabulary.

Tour Operator

A business that buys transport, accommodation and other travel elements in advance and combines them into package holidays, selling them directly or through agencies and carrying the commercial risk of unsold capacity.

Related: Travel Agency, Destination Management Company
Travel Agency

A retail business that advises customers and reserves travel products on behalf of suppliers such as airlines, hotels and tour operators, earning income from supplier commission, service fees or mark-ups.

Related: Tour Operator, Global Distribution System, Service Fee
Destination Management Company

A specialist company based in a destination that arranges local ground services such as transfers, guides, excursions, hotel allocations and event space for tour operators and corporate clients.

Related: Tour Operator, Tourism Multiplier Effect
Tourism Multiplier Effect

The process by which visitor spending circulates repeatedly through a local economy, generating indirect and induced income and jobs in businesses beyond those that directly serve tourists.

Related: Destination Management Company, Tour Operator
Global Distribution System

A computer network that lets travel agencies search, compare and book air, hotel and car products from many suppliers on one screen, then transmit the booking to the supplier.

Related: Travel Agency, PNR
IATA Traffic Conference Areas

The three global zones - TC1 the Americas, TC2 Europe, Africa and the Middle East, TC3 Asia and the Pacific - within which IATA fare rules, routings and mileage limits are defined.

Related: Fare Basis Code, Booking Class
UTC Offset

The number of hours and minutes by which a location's local time differs from Coordinated Universal Time, used with flight duration to work out the arrival time shown in schedules.

Related: International Date Line
International Date Line

An imaginary boundary near 180 degrees longitude where the calendar date changes by one day, so a flight crossing it can land on a date later or earlier than its departure date.

Related: UTC Offset
Hub-and-Spoke

An airline network in which flights from many smaller airports feed into a central hub where passengers connect onto other services, letting the carrier fill larger aircraft and serve more destinations.

Related: Codeshare
Codeshare

A partnership in which one airline puts its own flight number on, and sells seats for, a service operated by another airline, extending its network without adding aircraft.

Related: Hub-and-Spoke, PNR
Freedoms of the Air

The set of internationally agreed traffic rights that define what a foreign airline may carry on routes touching other countries, ranging from overflying to carrying traffic between two foreign points.

Related: ICAO, Charter Flight
Charter Flight

A flight for which a tour operator or group has bought the whole aircraft's capacity in advance and sells the seats, usually as part of a package, rather than the airline selling them individually.

Related: Tour Operator, Freedoms of the Air
PNR

A record in a reservation system holding a passenger's name, itinerary, contact details, ticketing information and special requests, identified by a unique alphanumeric reference.

Related: E-ticket, Booking Class, Global Distribution System
Fare Basis Code

An alphanumeric code in the ticket record that identifies the exact fare and its conditions, such as season, advance purchase, minimum stay, change and refund rules.

Related: Booking Class, Minimum Stay Requirement
Booking Class

A single-letter code showing the fare category and cabin in which a seat is booked, which controls availability, mileage earning and upgrade or change rules.

Related: Fare Basis Code, PNR
E-ticket

An electronic ticket held in the airline's system, identified by a 13-digit number, that replaces paper coupons and records the flights a passenger is entitled to travel on.

Related: PNR, Fare Basis Code
Minimum Stay Requirement

A condition of some fares requiring the traveller to remain at the destination for a set period, such as a Saturday night or three days, before the return flight may be used.

Related: Fare Basis Code
Needs Analysis

A structured conversation in which the agent asks open questions about dates, budget, companions, interests and priorities in order to recommend suitable options.

Related: Upselling, Cross-selling
Upselling

Persuading a customer to choose a higher-value version of what they asked for, for example a premium cabin, a better room category or a more inclusive package.

Related: Cross-selling, Needs Analysis
Cross-selling

Offering an additional related product that complements the main purchase, such as travel insurance, airport parking or a transfer, to increase the value of the sale.

Related: Upselling, Service Fee
Service Recovery

The steps a travel business takes after a mistake or disruption - apology, explanation, quick fix and goodwill gesture - to restore the customer's confidence and keep their future business.

Related: Denied Boarding
Passport Validity Rule

An immigration requirement, common in many countries, that a passport must remain valid for a stated period - often six months - beyond the planned date of return or departure.

Related: Visa, Electronic Travel Authorisation
Visa

An official permission issued by a country allowing a foreign national to enter, stay or transit for a specified purpose and length of time, obtained before travel or on arrival.

Related: Passport Validity Rule, Timatic, Electronic Travel Authorisation
Electronic Travel Authorisation

An online approval, such as ESTA or eTA, that visa-exempt visitors must obtain before boarding; it screens travellers in advance without granting a full visa.

Related: Visa, Advance Passenger Information (APIS)
Timatic

A database, maintained for IATA, that travel staff consult to check the passport, visa, health and transit rules applying to a passenger's nationality, destination and route.

Related: Visa, Passport Validity Rule, Advance Passenger Information (APIS)
Advance Passenger Information (APIS)

Passenger data - name, passport number, nationality and date of birth - sent by the airline to border agencies before departure, as required by many destination countries.

Related: Timatic, Electronic Travel Authorisation
ICAO

The United Nations agency for civil aviation, which sets international standards on safety, security and facilitation that member states implement through their national regulations.

Related: IATA, Chicago Convention, Freedoms of the Air
IATA

The global trade association of airlines, which sets commercial standards and resolutions, runs settlement systems such as the BSP, and issues airline and location codes.

Related: ICAO, BSP, Global Distribution System
Chicago Convention

The 1944 treaty that created the framework for international civil aviation, confirming each state's sovereignty over its airspace and establishing ICAO and rules on airline nationality.

Related: ICAO, Freedoms of the Air
Montreal Convention

A 1999 treaty setting airline liability for death or injury, delay, baggage and cargo, including compensation limits and the two-year deadline for bringing a claim.

Related: Chicago Convention, Denied Boarding
LAGs

Liquids, aerosols and gels: the cabin-baggage security rules that limit containers to small volumes, usually 100 ml each, packed inside one transparent resealable bag.

Related: Airside
Airside

The restricted part of an airport beyond security and passport control where aircraft, boarding gates and runways are located, open only to screened passengers and badge holders.

Related: LAGs
Denied Boarding

Refusing travel to a passenger holding a confirmed booking and valid documents, typically because of overbooking or an aircraft change, which triggers rebooking, care and possible compensation.

Related: Service Recovery, Montreal Convention
Dangerous Goods

Items or substances that can endanger health, safety or property in flight, such as lithium batteries, flammables and pressurised containers, carried only under strict IATA regulations.

Related: LAGs, IATA
BSP

Billing and Settlement Plan: an IATA system through which accredited agencies report and pay for all airline sales on one statement instead of settling separately with each airline.

Related: IATA, Trust Account, Reconciliation
Trust Account

A separate bank account in which a travel agency keeps client money held for suppliers, apart from its own funds, so bookings can still be paid if the agency fails.

Related: Reconciliation, BSP
Service Fee

A charge the agency adds to a booking for its own professional work, shown separately from supplier prices, used instead of or alongside commission to fund the agency's income.

Related: Travel Agency, Cross-selling
Reconciliation

Comparing the agency's own booking, invoice and payment records with supplier or bank statements to confirm that every transaction matches and that any difference is explained.

Related: Trust Account, BSP