200+ Essential Travel Industry Terminologies Every Professional Should Know

200+ Essential Travel Industry Terminologies Every Professional Should Know

Often, our growth and confidence in networking take a hit because of the jargon that slips into conversations. While we may catch the gist of these terms, we don’t always understand what they truly mean. General words and industry-specific terminology can be very different. 

Therefore, knowing the basic terms used in day-to-day business is essential for managing work efficiently. 

To make this easier, we’ve compiled over 200 travel terminologies that can help DMCs, tour operators, travel agents, employees, students, and emerging travel start-ups simplify their daily professional B2B communication. This is our small way of giving back to the travel community, helping everyone speak the same language more confidently.

These terminologies are divided into 9 major categories: 

  1. Industry Basics & Business Types
  2. Teams & Departments in a Travel Company
  3. Commercial Terms & Pricing Models
  4. Tour & Itinerary Components
  5. Accommodation & Inventory Management
  6. Booking & Operational Workflow
  7. Transport & Transfers
  8. Payments & Finance
  9. Technology & Systems
Industry Basics & Business TypesTeams & Departments in a Travel Company
FIT (Free Independent Traveller)
GIT (Group Inclusive Tour)
Travel Agents
OTAs (Online Travel Agency)
Inbound Tour Operators
Outbound Tour Operators
DMC (Destination Management Company)
B2B Hotel Consolidator
Pax
Series Departure
Preferred Partners
LCC (Low-Cost Carrier)
Sales Team
Quotes Team
Reservation Team
Operations Team
Contracting Team
Accounts Team
F&B Dept (Hotels)
Front Office
Concierge
Tour Manager
Commercial Terms & Pricing ModelsTour & Itinerary Components
Contracting
Markup
Rack Rate
Net Rate
BAR (Best Available Rate)
Commissionable Rate
Static Rates
Dynamic XML
Resident Rates
Non-Resident Rates
Complimentary Child Rates
Per Pax Revenue
FOC (Free of Charge)
Ancillary Revenue
Affiliate Programs
Inventory Supply
VAS (Value Added Services)
Land Part
Room Types
Meal Plans
Arrival
Departure
Drop
Two-Way Pickups
Day Sightseeing
Leisure Day
Day Schedule
Routing / Sector Plan
Shoulder Nights / Extra Nights
Excursion
Guide Services
Activity Slots / Time Blocks
Eurail Pass
Hop-On Hop-Off
Game Drive
Tourism Tax
Conservation Fees
Accommodation & Inventory Management Booking & Operational Workflow
Pre-purchased Inventory
Room Nights
Room Occupancy
Release Period
ROH (Run of House)
Stop-Sell
Free Sale
Overbooking
Rooming List
Blackout Dates
Block Booking
Barter Rooms
Bedbanks
Cut-off Date
Extra Beds
Single Supplement
Upgrade / Downgrade
Early Check-in / Late Check-out
Gala Dinner
Hotel Special Inclusions
Confirmation Voucher
Supplier Confirmation Number
Supplier Details
On Request Service
Cancellation Policy
Operations Sheet
Coordination Sheet
Duty Roster
Briefing Note
Escalation Matrix
Banquet Event Order
Helpline
Trip Docket
Void Window
Welcome Kit
Visa on Arrival
Ground Handling
Per Diem
Technology & Systems
Travel CRM Software
B2B Travel Agent Portal
Global Distribution System (GDS)
Booking API
Lead API
Round Robin Distribution
Channel Managers
POS (Point of Sale)
MIS
Community Channels
White Label Solutions

Definitions 

Industry Basics & Business Types 

  • FIT (Free Independent Traveller)

A Traveller who plans a trip separately and not with a group/packaged vacation. Here, the traveller has more options than a traditional fixed package.

  • GIT (Group Inclusive Tour)

It is a pre-planned tour with a set itinerary sold to a group of unknown/known travellers.

  • Travel Agents

A professional who works on behalf of customers or tour operators arranging travel services for them. 

Example: A travel agent in Janakpur, Delhi booked Virat’s honeymoon to the Netherlands 

  • OTAs (Online Travel Agency)

Platforms that act as intermediaries & allow travellers to book hotels, flights, and activities online. Connecting multiple service providers via API in one place. 

Example: MakeMyTrip, Booking.com 

  • Inbound Tour Operators

A company providing services to foreign travel agents and travellers coming to their destination. Customised itineraries, including hotel, activities & cab service. 

Example: An Indian tour operator arranging tours for European tourists. 

  • Outbound Tour Operators

A company specialised in foreign destinations providing services to local clients travelling abroad.  

  • DMC (Destination Management Company)

A local company: professional in providing travel or event services (hotels, cabs, activities, transportation) for a specific travel destination. 

  • B2B Hotel Consolidator

An intermediary wholesaler who aggregates hotel inventory from different suppliers and then offers it to travel businesses such as travel agents, tour operators, DMCs, etc, by pre-purchasing inventories for the upcoming season. 

  • Pax

PAX is a common shorthand for “passengers” or “guests” when counting the total number of people travelling. It is used in itineraries, bookings, contracts, and communications with hotels, airlines, and ground handlers.

Example: A family booking may show: 2 Adults (ADT) + 1 Child(CHD) + 1 Infant (INF) =  total 4 PAX.

  • Series Departure

A Series Departure refers to a pre-planned set of group tours or packages that operate on fixed dates over a season or year. Instead of customising each trip individually, the tour operator blocks inventory (flights, hotels, transport, guides, etc.) in advance and runs the same itinerary multiple times. Dates are fixed and announced in advance (e.g., every Saturday from April to June). 

Example: Weekly Singapore departure every Tuesday for the next two months 

  • Preferred Partners

Suppliers or agents with whom the travel business has a long-term, trusted partnership. If two different clients enquire with a DMC for a particular service, then the preferred partner might get a better response, deal and time to make the payments.

Example: The Hilton hotel chain is a preferred partner of XYZ DMC.

  • LCC (Low-Cost Carrier)

Low-budget airlines that offer flights at cheaper fares (with fewer services).

Example: Ryanair, IndiGo

Teams & Departments in a Travel Company 

  • Sales Team

It is a department responsible for handling incoming leads and potential clients, and through communication, turning them into conversions & bookings. Their target is to improve revenue for the organisation. 

Example: The sales team consists of consultants and executives handling leads and inquiries. 

  • Quotes Team

It is a department whose core duty is to generate travel quotations with correct itinerary and pricing sold at the time of sales. Their target is to ensure timely replies with correct quotations. 

Example: A quoted executive generates an itinerary of 4N/5D for inquiry. 

  • Reservation Team

The department is responsible for the management of confirmed bookings, suppliers, coordination, and vouchers for accommodations.  Their target is to ensure timely confirmation of service deliveries. 

Example: After the client has confirmed a package, the reservation team starts to complete the bookings, including the hotel activity transfer confirmed in the package

  • Operations Team

This department is responsible for handling daily tour execution, which includes coordination with the customer and suppliers. Their target is to ensure higher customer satisfaction and make the trip memorable.

Example: Ensuring that the pick up is at the right time and hotel check-in is done smoothly.

  • Contracting Team

This department is responsible for negotiation of rates and terms with activity, hotel and transport providers for the upcoming season. 

Example: Securing a special prize rate for the upcoming holiday season at the Bali resort

  • Accounts Team

The department is responsible for the management of the financial status of the company, including timely incoming and outgoing payments management, invoices, the ledger, and bank reconciliations. They also assist with timely tax filings.

  • F&B Dept (Hotels)

The F&B Department (Food & Beverage Department) in hotels is responsible for managing all dining services, including restaurants, bars, room service, banquets, and catering. It oversees menu planning, food preparation, service quality, inventory, and guest satisfaction to ensure seamless culinary experiences. 

Example: A gala dinner for the quarterly celebration was organised by the F&B department. 

  • Front Office

The team is responsible for interacting with the guests directly. Serving them from the 1st point of arrival (check-in) to departure (checkout). 

  • Concierge

In a hotel, this term refers to the staff member who is responsible for providing personalised services to the guest. They often act as a local expert to the guest or their personal assistant. 

Example: The concierge arranged city tours for 10 pax.

  • Tour Manager

A professional individual accompanying a group of tourists to manage logistics and other support throughout the tour.

Commercial Terms & Pricing Models

  • Contracting

It is a process which includes negotiation and management of agreements with various suppliers, including transportation, hotel, or activity for inventory and rates. 

  • Markup

An additional amount is added to the total cost of the flight, service or trip package.

  • Rack Rate

This amount refers to the standard published pricing of a hotel room before any promotion or discount has been applied. It’s essentially the maximum retail price (MRP) in hospitality and travel.

Example: The contracted rate of a resort in Goa could be  Rs 6000 per night, but the rack rate is Rs. 10,000/night. 

  • Net Rate

It is the wholesale price of a service after a certain discount offered to a reseller, such as a tour operator or a travel agent. Before adding any taxes, supplier markup, or commission. 

  • BAR (Best Available Rate)

A dynamic pricing strategy under which the hotel offers the most competitive/ lowest rate at the time of booking (unrestricted rates). These rates fluctuate according to demand, season or market conditions.

  • Commissionable Rate

Commissionable Rate is the portion of a service’s price eligible for travel agent commission.

Example: A hotel room priced at ₹5,000 with a 10% commissionable rate gives agents ₹500 per booking. It helps travel managers calculate agent payouts and manage partnerships efficiently.

  • Static Rates

Fixed-rate contracts, usually during peak season, will not change daily.

Example: Holiday season contracted rates for hotels will be valid from November- January 

  • Dynamic XML

Real-time, inventory/rates of travel services or products fetched by API.

  • Resident Rates

Special discount, which is provided to residents of the country.

Example: A special hotel rate is given to UAE residents. 

  • Non-Resident Rates

These are standard rates only given to foreign visitors, which are usually higher in comparison to resident rates. 

  • Complimentary Child Rates

A policy under which a child at a significant age is not charged or is less charged by a hotel or resort. This policy is usually a part of family-friendly offerings. 

  • Per Pax Revenue

Per Pax Revenue is the income earned per passenger in travel services.

Example: A tour earning ₹5,00,000 from 100 travelers equals ₹5,000 per pax. It helps travel managers measure profitability, set competitive pricing, and evaluate tour efficiency.

  • FOC (Free of Charge)

A complimentary service for a product given either by a supplier or the tour operator themselves for free. (FOC = Free of Charge).

Example: Give 1FOC to travel agents for every 20 paid Rooms. 

  • Ancillary Revenue

This amount refers to the income generated by a travel business from supplementary products or services which are sold in addition to their core offerings.

Example: For instance, seat upgrades in flight for clients or travel insurance sold to a client in a package 

  • Affiliate Programs

A performance-based partnership under which travel businesses pay a certain commission to websites or individuals for referring clients & driving sales for them. 

Example: A hotel is paying commission to an Instagram influencer for promoting their offerings.

  • Inventory Supply

The term used for travel-related services or products, which includes car rental, accommodation, flights or tours put on sale by distributors or providers for travel businesses. 

Example: DMC secured 10 hotel rooms at a property in Kashmir for the coming winter season.

  • VAS (Value Added Services)

This term refers to features or non-core amenities provided to the clients beyond accommodation and transportation service to enhance their overall experience and add value to it.  

Example: Most common examples for DMCs are Visa, Forex, Travel Insurance and e-SIM.

Tour & Itinerary Components

  • Land Part

Components in a travel package that include services on the ground, including cab service, inter-city transfers, etc. 

  • Room Types

Classification of rooms is done according to specific characteristics such as occupancy (single/double/triple), bed configuration (bunk bed, queen-king side bed, twin beds), amenities or special features given. 

  • Meal Plans

Meal Plans in hotels and resorts refer to pre-arranged dining options included with your stay. Common types include CP (Continental Plan/Room Only), EP (European Plan/Room Only), B&B (Bed & Breakfast), MP (Modified/Meal Plan/Half Board), AP (American Plan/Full Board), and AI (All-Inclusive), offering different combinations of meals and beverages to suit various traveller preferences and budgets.

Example: A 2-day hotel stay includes breakfast every day. 

  • Arrival

Guest entry to the destination, commonly marked from the station/airport pick up.  

Example: The guest is arriving in Singapore by flight at 6:00 AM morning.

  • Departure

Guest exit time from the destination is commonly marked up at the Final transfer.

Example: The guest departed from the hotel at 10:30 AM for the airport.

  • Drop

Final transfer service given at the railway station, hotel or airport.

Example: Airport drop after 2 days, stay in the hotel.

  • Two-Way Pickups

On arrival, pick-up is provided in two separate timings for split arrival groups.

Example: First pick up is scheduled at 8 AM, and the second is scheduled after 3 PM for the group tour. 

  • Day Sightseeing

Pre-planned exclusions or tours in the day.

  • Leisure Day

A day included in an itinerary where no activities are scheduled.

Example: One leisure day, on a Thailand trip, is for beach time and shopping. 

  • Day Schedule

Pre-planned timeline on meals, activities or transfer for a particular day.

  • Routing / Sector Plan

Travel flow, travel path between destinations in multi-city tour packages.

Example: Golden triangle package  (Rooting: Delhi – Agra – Jaipur).

  • Shoulder Nights / Extra Nights

Additional nights are included after or after the main scheduled tour.

  • Excursion

A short activity or trip, which is a part of a large package.

Example: A half-day excursion to Times Square.

  • Guide Services

Licensed local/tour guides allocated for sightseeing.

Example: Japanese-speaking guide hired for the Japan city tour.

  • Activity Slots / Time Blocks

A reserved time slot for particular activities at the destination.

Example: Visit to Merlin Park is scheduled at 12 PM.

  • Eurail Pass

It is a rail pass, which allows unlimited travel for tourists within selected European countries.

  • Hop-On Hop-Off

A bus service for sightseeing, which is flexible for the passengers to get on or off at multiple spots according to their preference.

  • Game Drive

A game drive is a guided safari tour in a wildlife reserve or national park, typically in an open vehicle, to spot animals in their natural habitat.

Example: A morning game drive in Ranthambore National Park to see tigers, leopards, and deer.

  • Tourism Tax

Local tax applied per night per guest by municipality/government or hotel.
Example: Tourist Dirham is a local tourism fee charged to visitors staying in hotels or short-term accommodations, commonly applied in countries like the UAE (e.g., Dubai). It is usually a small amount per room per night and is collected to support tourism infrastructure, city maintenance, and promotional activities.

  • Conservation Fees

Charges collected from visitors at entry to reserved, wildlife or natural habitats.

Accommodation & Inventory Management

  • Pre-purchased Inventory

It is a process when a travel business, such as an agent or DMC, purchases hotel rooms, inventory, or activities in advance at a fixed rate for reselling in future. 

Example: For the upcoming holiday, 50 rooms were purchased in advance by a travel agent in Vietnam. 

  • Room Nights

Room Nights refers to the total number of hotel rooms occupied multiplied by the number of nights stayed.

Example: 10 rooms booked for 3 nights is equal to 30 room nights sold. 

  • Room Occupancy

The number of guests who will stay in the room compared to its occupancy. 

Example: Triple occupancy is usually allowed in our family suite. 

  • Release Period

A time period before check-in when the unsold inventory of pre-purchased hotel rooms can be sold without any penalty. 

Example: 5-day release period of hotel rooms blocked in peak season in Goa.

  • ROH (Run of House)

A situation under which the booking of a hotel does not include a specific Room type. On arrival, the hotel can assign any room which is available.

Example: A guest booked ROH and got a deluxe room at check-in. 

  • Stop-Sell

Restrictions imposed by hotels to prevent sales of a certain Room category or sales on a certain date.

Example: Due to full occupancy, the hotel will stop selling from 29 to 31 December. 

  • Free Sale

Inventory, which is open for booking without the requirement of any prior confirmation until the time of cut-off.

Example: 15th November is the cut-off date, during which an agent can book anytime. 

  • Overbooking

Selling more hotel rooms than available in the property on the assumption that cancellations will occur. 

  • Rooming List

The final guest names list is shared with the hotel or resort before arrival that specifying how guests in a group will be accommodated. It details guest names, check-in/check-out dates, room types, and sharing arrangements. 

Example: The reservation team forwarded a roaming list of 20 pax to the hotel

  • Blackout Dates

Specific dates on which there is no negotiation on the rate, whether discount, reward, coupon or special offer. Usually, this is due to high demand or the peak season of a destination. 

Example: There is no offer on hotels for the new year in Goa.

  • Block Booking

Practice in the travel industry of reserving a large inventory in advance for a specific event or group over a certain period of time to reduce per-pax costing. This inventory can be hotel rooms, flight tickets, or a particular activity. 

Example: A DMC reserved 100 rooms in New York for the New Year in advance.

  • Barter Rooms

Complimentary hotel rooms are exchanged between travel businesses, such as DMCs or hotels, for mutual benefit.

Example: For marketing promotion, a hotel in Thailand provides a 1-barter room to a travel agent. 

  • Bedbanks

This term refers to wholesalers who provide bulk hotel room inventory at discounted prices via APIs. 

Example: Hotelbeds and TBO.com

  • Cut-off Date

In terms of a hotel, this refers to the last date of releasing an unsold service or Room without penalty.  In terms of payment refers to the last date of releasing or collecting pending payments, whether incoming or outgoing.

  • Extra Beds

An additional bed is included in a hotel room on request of a client, usually at an extra cost for an extra guest.

Example: A family requested to include an extra bed in the room for their child. 

  • Single Supplement

An extra amount is charged on a solo traveller booking a room with double occupancy.

  • Upgrade / Downgrade

Changing the room allotted to guests in a higher category (upgrade) or lower category (downgrade).

Example: Free upgrade given to the honeymoon couple

  • Early Check-in / Late Check-out

A situation in which a hotel allows guests to arrive early or leave late (usually, an additional cost is implemented). 

Example: Instead of 11 AM, the guest checks in at 9 AM 

  • Gala Dinner

Compulsory provided during the festive season, which is included in the stay (usually included during special events). 

Example: New Year’s gala dinner charges are included in the Vietnam hotels. 

  • Hotel Special Inclusions

Some amenities or services are provided by a hotel in a package/offer for free or at a discounted price.

Hotel special inclusions often include complimentary breakfast, airport transfers, welcome drinks, free Wi-Fi, spa and fitness access, kids’ activities, late check-out, room upgrades, dining vouchers, local experiences, pool access, welcome gifts, laundry services, and event or attraction tickets.  

Booking & Operational Workflow 

  • Confirmation Voucher

A document which includes important details related to the booking, such as inclusions, date, check-in/out timings or guest details sent to the hotels for final confirmation.
Example: The guest requested for hotel voucher to show at the time of check-in. 

  • Supplier Confirmation Number

It is a unique booking reference given by the supplier to the DMC or tour operators. 

  • Supplier Detail

A document which includes contact details and important information of the service provider utilised to track operations.

  • On Request Service

A service which is not guaranteed at the time of finalising booking, but is arranged upon availability. 

Example: An extra bed is provided by the hotel on request from the client   

  • Cancellation Policy

Terms that define charges or penalties which will be applicable if a booking is cancelled (after a certain period in some cases). 

Example: A 50% charge will be deducted on cancellation before a weekday of check-in day. 

  • Operations Sheet

Internal document used by the operations team, which summarises information related to guest movements, timings, and the operations

  • Coordination Sheet

A checklist is shared between the staff members to ensure the smooth execution of every service.

  • Duty Roster

Schedule for assigning staff, their shifts and duties.

Example: The reservation desk team strictly follows the weekly duty roster

  • Briefing Note

Important information is shared between the staff members before an event or tour. 

Example: The VIP guest preference list is shared in the briefing note to the team. 

  • Escalation Matrix

It is a framework which includes step step-wise contact hierarchy to resolve the problems in situations when frontline staff can’t handle it. 

Example: In hotel XYZ, the complaint of the guest is forwarded from the executive to the ops manager, then to the director. 

  • Banquet Event Order

A document which includes details related to arrangements to be made for an event, banquets arranged in the hotel.

Example: For the corporate gala dinner, seating plan and VIP preferences were documented. 

  • Helpline

Emergency contact information is given to the traveller by travel businesses for support throughout their trip. 

Example: A 24/7 helpline is available for the guests in the hotel. 

  • Void Window

A certain time period under which a ticket/service could be cancelled without any type of penalty. This differs according to the policies of the company.   

Example: Flight tickets void window is the same day of booking. 

  • Welcome Kit

A Welcome Kit is a set of items or materials provided to travellers upon arrival at a hotel, resort, cruise, or tour destination. It is designed to enhance the guest experience, provide essential information, and create a positive first impression.

Common items included: Destination guide or itinerary, Maps and brochures, Contact details for tour managers or local guides, Souvenirs, snacks, or bottled water, Essential items like toiletries or branded merchandise.

  • Visa on Arrival

Visa is directly issued to the traveller on arrival at the destination instead of pre-approval. 

Example: Thailand has a visa-on-arrival for Indians  

  • Ground Handling

A set of services provided to the guest on arrival, which includes check-in, transfer, and other support. These services are managed to ensure the smooth execution of a trip. It can include:

  • Airport transfers (pick-up & drop-off)
  • Local transportation (buses, cabs, coaches)
  • Hotel check-ins and coordination
  • Sightseeing arrangements
  • Tour escorts, guides, and activity coordination
  • Emergency assistance or support at the destination

Example: Ground handling support arranged by a DMC for 20  MICE groups in Singapore. 

  • Per Diem

Per diem is a fixed daily allowance for employees on business travel to cover meals, lodging, and incidentals. Instead of tracking every receipt, companies set a standard rate.

Example: A travel agency offering ₹2,000 per day for a tour manager accompanying a group trip to Dubai.

Payments & Finance 

  • Proforma Invoice

A preliminary invoice is given before the Final confirmation of payment  (commonly used for advance payments). 

Example: A travel agent shares a proforma invoice of Rs. 50,000 for 50% advance of the package. 

  • Tax Invoice

A formal invoice is given, including all the applicable taxes according to the law.

Example: A tax invoice of 18% GST given by a travel agent.

  • Purchase Invoice / Supplier Invoice

An invoice given by suppliers in exchange for services provided. 

Example: $4 million suppliers’ invoice issued by the hotel for reservations 

  • Payment Receipt

A receipt that acknowledges the amount received from a client or a supplier.
Example: Travel CRM software receipt emailed by the accounts team to the software provider. 

  • Payment Slip

A record or a document which includes payment details and is given up on confirmation of the transaction. 

  • Advance Payment / Balance Payment

Partial amount collected from the client before delivery of the full service and balance payment is the remaining amount due after adjusting the partial amount in advance.

Example: Travellers pay 50% in advance for the Thailand tour and rest 50% balance once trip starts.

  • Client Ledger

A financial record that shows all transactions done specifically with a client over a certain period of time. 

  • Supplier Ledger

Financial records are maintained of all transactions with suppliers.

  • TDS

Tax amount withheld by a pair at the time of final payment. 

Example: Before paying the invoice, the client deducts 10% TDS

  • TCS

Tax is collected at the time of sale from the buyer by the seller. 

Example: DMC collect 10% TDS from foreign travellers on foreign tour packages   

  • GST on RCM

Tax liability that is shifted to the recipient by a supplier under the GST Act regulations.

Example: Travel business pays GST on cab service under RCM 

  • Credit/Debit Note

It is a type of adjustment document issued by a travel business to a client, agent, or supplier for extra charges or a refund. 

  • Credit Period

Time is alerted by suppliers for completing a payment after the date mentioned in the invoice.

Example: Time is alerted by suppliers for completing a payment after the date mentioned in the invoice 

  • Credit Hold

A freeze on booking from suppliers due to unpaid dues from clients. 

  • Credit Limit

The maximum amount of credit permitted by a supplier to the client.

Example: The hotel permits a ₹8 lakh credit limit to the travel agency

  • Aging Report

The difference between the direct costs and the selling price before deducting expenses. 

  • Gross Margin

The difference between the direct costs and the selling price before deducting expenses. 

  • Net Margin

Profit after deducting all expenses

  • GMV (Gross merchandise value)

The total value of all bookings, services, or products sold through a platform in a given time period (before fees or deductions). Commonly used in online marketplaces and OTAs.

  • Contracted / Projected Revenue

The revenue expected based on signed contracts, proposals, or forecasts. It’s a future-looking estimate, not yet earned.

Example: Projected revenue for the Christmas season is $1 million  

  • Booked / Confirmed Revenue

Revenue from bookings that have been confirmed by clients but not yet completed (e.g., a tour package sold for future travel).

Example: 100 bookings of the Maldives are confirmed for the month of November, worth $5 million. 

  • Actual / Realised Revenue

Revenue that has actually been earned and received after the service is delivered (e.g., once the guest has travelled and payment is collected).

Example:- After all, the cancellation realised payment was $6 million for September.  

  • Recurring / Retainer Revenue

This amount refers to the income a travel business repetitively earns from the same clients or contracts billed periodically. 

  • Gross Revenue

The total revenue is generated from sales before deducting any costs, refunds, or expenses. 

  • Net Revenue (Contribution)

The revenue left after deducting direct costs, commissions, refunds, or supplier payouts reflects the actual contribution to business profits.

  • EBITDA

EBITDA is a financial metric that shows the operational profitability of a tour operator before accounting for financing costs, taxes, or non-cash expenses.

EBITDA = Revenue – Operating Expenses (excluding interest, tax, depreciation, amortisation)

Example: If a tour operator earns ₹1 crore in revenue and spends ₹70 lakhs on supplier payments, staff salaries, and office costs, their EBITDA is ₹30 lakhs. This shows the efficiency of operations before other financial factors are considered.

  • Trip Profit

Total profit earned by a travel business from a single trip, after excluding all supplier costs.

  • Trip Docket

It is a document made by tour operators or travel businesses for customers which contains all necessary information related to the tour, including hotel vouchers, itinerary, transportation, details, activity details or emergency contact. This document is either handed to the customer before departure or on arrival.  

  • Petty Cash

A small amount aside from the funds for daily minor expenses. 

  • Supplier Recon

Tally of suppliers with the bookings in order to settle the financial accounts. 

Example: 100 invoices were reconciled by the accounts team with the supplier’s contract

Transport & Transfers Terms 

  • ETA (Estimated Time of Arrival)

Expected time at which the vehicle, train, flight or guest will arrive at the destination

Example:Flight ETA: 10:00 AM Mumbai 

  • ARC (Airline Reporting Corporation)

It is a US organisation managing airline ticket settlement and distribution between travel agencies & airlines. 

  • SIC (Seat-in-Coach)

The transportation service in which multiple passengers travel together in a single vehicle.

Example:  A Tourist in Singapore shares the SIC transfer from the hotel to the airport   

  • Private Transfers

An exclusive vehicle arranged for a specific set of guests.

Example: Private car transfer booked by a corporate traveller from the airport to the resort 

  • Shuttle

A type of regional transportation service which operates between specific points (fixed points). 

Example: The resort provides a shuttle service to guests to the city Centre every morning.

  • Charter

A flight, car or boat rented exclusively by a specific group of travellers.

Example: A company charters a yacht for an event. 

  • Point-to-Point

Transfer provided from 1 location to another location without any additional stops.

Example: A taxi was booked from the hotel to the airport.   

  • Ferry

A boat or ship service used for transporting vehicle passengers or goods across water bodies, generally within a destination. 

  • Transit Stop

A short halt/break is taken in between journeys before reaching the final destination. 

Example: Between Mumbai & Goa, the bus takes a transit stop on the highway.

  • Layover

A planned stop between 2 or more connecting flights. 

Example hours layover in Singapore before the flight to Bali. 

  • Stopover

An intermediate halt between a trip for a meal or sightseeing

  • Multi-Purpose Vehicle

A type of versatile vehicle which is designed for carrying luggage plus passengers(commonly used to transfer small groups)

  • Full Coach

Large tourist bus to carry 35 – 55 passengers at a time

  • Standby Vehicle

Extra vehicle ready, just in case of additional requirements or emergency

  • Movement Chart

This is a detailed schedule used during peak travel seasons to track and organise the daily movement of groups, including transfers, sightseeing, activities, accommodations, and meal timings. It helps DMCs ensure smooth operations, avoid delays, and deliver seamless travel experiences to multiple groups simultaneously.

  • Dispatch Sheet

It is a document prepared by the operations team to give brief information to the drivers related to timings, pick-up details and routes.

  • Duty / Service Slip

Duty/Service Slip for Drivers in the travel industry is a document used to record and track a driver’s assignments, including pick-ups, drop-offs, routes, timings, and passenger details. It helps travel companies monitor driver performance, ensure accountability, and maintain smooth transportation operations.

  • Reporting Time

The exact time for a driver to arrive at the pick-up point. 

  • KM Limit

Maximum kilometres permitted in a transportation  booking (within the duty hours)

Example: A car booking limit is 80 km per day

  • Dead Mileage

Distance covered by an empty vehicle (without a passenger). 

Example: From the hotel to the airport, a car travels 10 km empty.

  • Back-to-Back Service

Continuous cab/Metro/train or other transport service scheduled within an ideal gap between 2 destinations.

  • Meet & Greet

It is a personalised service under which assistance is provided to the travellers, usually at the airport, by giving a representative welcome or accompanying them through the procedures. 

Example: A VIP businessman was accompanied throughout the immigration, security, check-in and baggage handling at the airport. 

  • Paging Board

A placard with guest information that drivers or representatives use at the pick-up point to identify guests. 

Example: The driver stands with the company logo & the guest’s name on the Paging board at Dubai airport

  • Porterage

A Service where luggage is handed to the guest at the airport station or the hotel by an assistant. 

  • Per Vehicle Rate

It is a type of pricing model where the total cost is decided on the vehicle and not per passenger.

  • Night Surcharge

An extra amount is charged for early morning or late-night transfer service.

  • Toll / Parking / Permit

Additional amount charged on vehicle parking, entry permits or Road tolls 

  • Duty Hours

Total working hours of a vehicle or driver for the service provided 

Technology & Systems 

  • Travel CRM Software

A customer Relationship Management software used by travel businesses to manage back-office operations. It focuses on managing business relationships with customers, partners, suppliers, vendors, and agents, while also automating day-to-day internal tasks. 

Example: Sembark Travel Management Software

  • B2B Travel Agent Portal

A digital platform built by DMCs and used by travel agents for accessing and booking travel inventory, including flights, hotels, or activities for clients. 

Example: A B2B Travel portal allowing travel agents to book hotels at a wholesale rate 

  • Global Distribution System (GDS)

It is a computerised network used by travel agents & OTAs to access real-time pricing, schedule, inventory of hotels, flights, activities and car rentals for booking. 

Example: Amadeus, Sabre, or Travelport enabling agents to book Delhi–Dubai flights and hotels instantly. 

  • Booking API

It is an interface with defined protocols & rules that permits travel software applications to manage and reserve services directly from providers online.

  • Lead API

An interface that manages leads for a business. It directly captures & distributes leads or inquiries from various platforms such as websites, Google Ads, and Instagram into a centralised CRM.  

Example: Lead from Facebook is automatically captured in a Travel CRM and allotted to a team member. 

  • Round Robin Distribution

In a company, if there are 4 agents and 5 leads come, then:

1st lead → Agent A

2nd lead → Agent B

3rd lead → Agent C

4th lead → Agent D

5th lead → Agent A (And this cycle repeats)

This method ensures that leads are timely & evenly distributed across your team without dependence on anyone. Also eliminates any chance of overburden and duplication between the sales department. 

  • Channel Managers

Channel Managers are software tools used by hotels, resorts, and vacation rentals to manage and synchronise room availability, rates, and bookings across multiple online travel platforms (OTAs) like Booking.com, Expedia, and Airbnb. They help prevent overbooking, save time, and streamline inventory management while ensuring consistent pricing and availability across all channels.

  • POS (Point of Sale)

A billing software used in bars & restaurants, the shopping area, and hotels. 

  • MIS

MIS stands for Management Information System report, which is a summarised Excel of business performance generated through the data and analytics of the company within a specific period. These reports enable decision makers to decide business directions with the help of data-driven analytics.

Example: The MIS report of destinations shows the top 10 most revenue-generating places for the year 2024  

  • Community Channels

Groups or platforms created to share knowledge, maintain engagement or promotion between the travel community. 

Example: A group of travel agents on WhatsApp is sharing information 

  • White Label Solutions

It is a customisable, ready-made booking platform, which is developed by one travel tech company and is re-branded by others, such as travel agents, tour operators or DMC for personal use. 

Example: A tour operator using a white label portal for selling his packages with the company logo. 

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