Knowledge Base

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Add-on

An extra; optional service that travelers can purchase during the booking process. The right kind of tour booking software helps manage add-ons and in return, it increases revenue steams.

Adventure tourism

Adventure Travel Trade Association (ATTA) defines adventure tourism as a trip that contains at least two of the following three elements: physical activity, natural environment, and cultural immersion.

Affiliate

An affiliate is an independent contractor (e.g. travel blogger) who is taking part in the travel agency’s affiliate program. An affiliate earns a commission for advertising tour packages at his/her website.

Alternative tourism

Alternative tourism refers to experiencing a location from a point of view different from those available through mass tourism options. It contains customized tourism activities that cater to the specific interest groups. It’s also called specific interest tourism (SIT) or niche tourism.

Augmented reality

Augmented reality is an enhanced version of reality created by the use of technology to overlay digital information on an image of something being viewed through a device (such as a smartphone camera). The best example of augmented reality is Pokémon Go. Tour operators decided to cash in that frenzy by organizing interactive Pokémon Go city tours.

Automation

The technology by which a process or procedure is performed without human assistance. For instance, with Orioly, tour operators and activity providers can automate processes such as payments and social media scheduling that can save time and a surprising amount of money.

Baby Boomers

Baby Boomers are the demographic cohort born in the years after World War II (1946-1964). They start traveling again after a long break and they have the time and the resources to afford a more luxurious trip.

Benchmarking

The process of comparing performance and activities among the best travel agencies.

Book Now button

A booking button is a call-to-action button that’s implemented within the website. The button encourages travelers to make their travel reservations. It’s actually an integral part of any tour booking software.

Booking

A booking refers to a successful sale in the tourism industry. It can be paid in full or partly right away, or the customer can pay once he/she made the reservation.

Booking software

Besides the obvious – to enhance tour bookings – booking software helps tour providers to minimize their workload, keep all customer data in a structured system and automate tour promotion on social networks.

Bulk fare

Discounted fare available only to tour operators or organizers who purchase a specific block of seats from a carrier. A bulk fare is also available when buying multiple tickets for the same tour or travel.

Cancellation policy

Terms and conditions that can encourage customers to make a commitment when they book tours or activities. For example, a travel agency may want to allow customers to cancel up to 24 hours in advance, and offer them a partial refund. Or they could refuse to refund customers who don’t give notice and don’t show up.

Chatbot

A computer program designed to simulate a conversation with people over the Internet. Their instantaneous (24/7) and personalized customer responses have revolutionized the customer service.

Co-op tour

A tour which is sold through a number of wholesalers, cooperatives, or other outlets in order to increase sales and reduce the possibility of tour cancellations.

Commission

The percentage of a selling price paid to a retailer by a supplier. For example, a travel agency pays agents for promoting their tours. By introducing commissions, tour operators get an effective way to reach more customers especially if the tour business has limited marketing resources.

CRM

Customer relationship management (CRM) is a strategy for managing all company’s relationships and interactions with their customers and potential clients. CRM solutions let all travel agency employees manage contacts, share information, and work more efficiently across sales, customer service, marketing, and other departments.

Crypto-currency

A crypto-currency is a digital currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions, to control the creation of additional units, and to verify the transfer of assets.

Currency

A system of money in general use in a particular country.

Customer support

A network that allows a customer to get the help they need when they need it and in the medium that they require. Most popular customer support options include phone and online support.

Daily deals

A new way of doing business which promotes one particular sale or deal on a given day. This deal is often distributed through email or text messaging and usually made available for 12-24 hours.

Demographic cohort

Demographic cohorts are basically different generations. Each one of them is raised surrounded with different technology and society so it developed a different behavioral pattern. It’s essential to recognize the cohort that contains ideal customers for travel agencies. Later on, travel agencies can design tours and travels their potential customers find interesting, promote it on various channels where travelers will see it, etc.

Deposit

A deposit is a sum of money paid as a first installment on the purchase of a tour or a travel.

Destination

A place to which a traveler is going. In the travel industry, any city, area, or country which can be marketed as a single entity for tourists.

DMC

Destination management company (DMC) is a business that’s specialized in promoting and re-selling tours and accommodations related to the specific area where they operate from. They offer an advanced knowledge of a destination.

DMO

Destination marketing organization (DMO) is a membership category of the National Tour Association. The DMO includes state or provincial tourism offices, convention and chambers of commerce, which promote a city, region, or state as a travel destination.

Domestic tourism

Travel within the country of residence.

eCommerce

A transaction of buying or selling online.

Experience marketing

Experience marketing, sometimes called “experiential marketing”, “event marketing”, “on-ground marketing”, “live marketing”, “participation marketing”, or “special events” is a marketing strategy that directly engages consumers and invites and encourages them to participate in the evolution of a brand or a brand experience. In other words, it’s a type of promotional campaign that requires you to appeal to the traveler’s senses and showcase what they will experience when they visit your destination.

Extensions

See “Add-on”.

FIT

Originally, the acronym FIT stood for “foreign independent tour,” but now it’s commonly used to describe a fully independent traveler or tourist. Later its usage expanded to “free independent traveler,” “frequent independent traveler,” and “foreign independent traveler.” Whatever it is, one thing is sure – it’s about independent travelers, who design their own itineraries and arrange their own travel plans. It worthwhile to remember that FITs don’t travel with group tours or according to any schedule imposed by others.

Generation Alpha

Gen Alpha is the demographic cohort following Generation Z. It gathers population born from 2013 to 2025.

Generation X

Generation X, or Gen X, is the demographic cohort following the Baby Boomers and preceding the Millennials. There are no precise dates for when Generation X starts or ends. Demographers and researchers typically use birth years ranging from the early-to-mid 1960s to the early 1980s.

Generation Y

Generation Y (aka Millennials) are defined as the demographic following Generation X. The early 1980s are typically used as starting birth years and mid-1990s as ending birth years.

Generation Z

Generation Z (aka Gen Z, iGeneration, Post-Millennials, and Homeland Generation) is the demographic cohort following Millennials. Its members are born from 1995 to 2012.

Google Adwords

Google Adwords is a pay-per-click advertising platform. This is sometimes referred to as pay-per-click (PPC) campaigns where these online marketing campaigns are designed to drive visitors to your website through the use of targeted keywords.

Google Analytics

Google Analytics is a tool that is used to help understand the functionality of your website and to make improvements in the future. This tool is designed to track the visitors that you receive, identify where those visitors came from and monitor what they are doing on your website.

Health expenditure

The amount of money spent by individuals, groups, nations, or private or public organizations for total health care and/or its various components.

High-season

Peak season; on-season. It’s the period of the year when occupancy/usage of a hotel or attraction is at its highest. This also means it’s a period where prices are the highest.

Hosted tour

Tours which have group leaders but they don’t take on the role of a full tour guide. Hosts provide basic guidance and information, but unlike classical tour guides, they don’t organize activities throughout the tour.

Hoteling rent

Net return realized from the sale of a natural resource under certain conditions of long-term market equilibrium. Its revenue received minus all marginal costs of resource exploitation, exploration, and development, including a normal return to fixed capital employed.

Hub

Airport at which an airline has major operations and connecting flights to smaller destinations.

Hub and spoke tours

Tours which utilize a central location with side trips of varying length to nearby destinations.

Inbound tour

Activity in which tourists travel from their home country to another country and stay for more than 24 hours, however not longer than a few months.

Inbound tour operator

It’s travel business that specializes in domestic tours for foreign visitors.

Incentive tour

This type of trip usually offered as a prize, for example, to reward or stimulate the productivity of employees or sales agents.

Incidental charges

Minor expenditures that are spent at various times as part of a larger bill, e.g. taxi fare, baggage handler tips or room service tips.

Inclusive tour

A tour package that offers transportation and lodging as well as additional services such as transfers, sightseeing, museum admissions, etc.

Indirect air carrier

Tour operator, travel agent, or other promoter who (under federal regulations) contracts for charter space from a carrier for resale to the public.

Industrial tourism

A type of tourism that includes visits to industrial sites, e.g. oil fields, platforms, distillery tours, car, watch, or jewelry industry.

Info-mediaries

A company that gathers and links information and resources on particular subjects such as travel on behalf of commercial organizations and their potential customers.

Intermodal tour

A diverse tour that uses various means of transportation, e.g. airplane, motorchoach, cruise ship, or train.

IT

Inclusive tour; any prepaid travel arrangement containing transportation, lodging, and other features, such as sightseeing, excursions, etc.

IT number

Registration number assigned to a tour package.

Itinerary

Travel schedule created by the travel agent or tour guide. It contains all the necessary details, dates, flight numbers, and extra information regarding the tour.

Joint fare

Single air travel fare involving two or more airlines to a destination.

Joint venture

New firm formed to achieve specific objectives of a partnership like temporary arrangement between two or more firms.

Land arrangements

Includes all non-flying reservations upon arrival, e.g. car rental, hotel, and tourist reservations.

Land operator

A tour operator company that provides local services.

Landing fee

Charge that the airport company pays for landing at a particular airport.

Layover

Time spent between connecting flights.

Lead time

Advance time between initiating a tour and its departure date.

Leg

Portion on a journey between two scheduled stops.

Leisure travel

Type of travel in which the primary motivation is to take a vacation from everyday life.

Letter of agreement

A letter from the buyer to the supplier accepting the terms of the proposal.

Liability coverage

Insurance protection against injury and damage claims by third parties, available as option for car rentals.

Line run

Also known as scheduled service. Specified, predetermined regular-route bus service between cities or terminals provided by motorcoach operator.

Load factor

The capacity utilization of public transport services like airlines, passenger railways, and intercity bus services.

Local receptive operator

Local services provided by a local receptive my include meet and greet, sightseeing, ground transportation and vendor selection.

Low season

Off-season; The period of the year when occupancy/usage of a hotel or attraction is at its lowest. This is also the period when the prices are usually the lowest.

Lowest fare guarantee

Travel agency’s promise to provide clients the lowest fare available when reservation is confirmed.

Manifest

Final, official, listing of all passengers and/or cargo aboard a transportation vehicle or vessel.

Mass tourism

Mass tourism is a form of tourism that involves tens of thousands of people going to the same resort often at the same time of year.

Master bill

All tours contracted by the operator and supplier that will be paid by the operator.

Meet and greet

Prepurchased service for meeting and greeting a client upon arrival in a city, usually at the airport, with entrance formalities, collecting baggage, and obtaining transportation.

Millennials

Millennials, also known as Generation Y or the Net Generation, are the demographic cohort that directly follows Generation X. The term Millennials is usually considered to apply to individuals who reached adulthood around the turn of the 21st century. Howe and Strauss define the Millennial cohort as consisting of individuals born between 1982 and 2004.

Minimal impact practices

Planned strategies that reduce the negative impacts of tourism on the environment to a minimum.

Motorcoach tour operator

A company that creates tours in which tourists are transported via motorcoch to their destination.

Net rate

Price or fare for a travel service. The distributor can mark-up this price with the margin he wishes to make or an amount which is contractually agreed.

Niche tours

A niche is a specialized interest that is not shared by many people. These tours include specific activities that are not mainstream or widely popular. The term “niche tours” is opposed to mass tourism.

No-show

A person who has made a reservation, booking, or appointment but neither keeps nor cancels it.

Non-refundable

A ticket or tour that for which no money will be returned if the customer no longer intends to use the ticket.

Occupancy rate

The proportion of reservations expected during any given period.

Online booking software

System designed to facilitate online bookings and reservations of customers, or staff and agents. Tour operators use booking engines to keep track of their bookings, payments, vouchers, deposits and tours.

Open jaw

An arrangement, route, or fare, authorized in a tariff, granting the traveling public the privilege of purchasing round-trip transportation from the point of origin to one destination, at which another form of transportation is used to reach a second destination, where a passenger resumes the initial form of transportation to return to the point of origin.

Open ticket

Ticket that is valid for transportation between certain points but indicates no specific reservation.

OTA

An online travel agency is engaged in selling and arranging accommodations, tours, transportation and trips for travelers on an online platform.

Overbooking

Booking more seats or rooms than are available. It is usually done to protect tour operators and travel agencies against no-shows.

Override

Additional commission paid to agents as a bonus for productivity and/or volume.

Package

Tickets or services bundled together and sold at single all-inclusive price.

Package Tour

A vacation plan arranged by tour operators (wholesalers) that provides (for a set fee) all or most of the required services, such as transportation, hotel room, sightseeing, attractions, and entertainment.

Packager

Anyone organizing a tour including prepaid transportation and travel services, usually to more than one destination.

Pay-per-click

A model of online marketing in which advertisers pay a fee each time one of their ads is clicked.

Payment gateway

An e-commerce service that processes credit card payments from your customers. Payment gateways bridge customers’ money to your tour company’s account.

Pollution

Negative effects on the environment as a by-product of tourism.

Pre- and post-trip tours

Optional extension packages before or after a meeting, tour or convention.

Pre-formed group

A pre-existing group of travelers, such as affinity groups and travel clubs, whose members share a common interest or organizational affiliation.

QR code

QR is short for quick response. QR codes use a piece of information from a transitory media and put it into your mobile phone.

Reservation system

Computer reservation system is used for the reservations of a particular tour or activity.

Responsible tourism

It’s a type of tourism that stresses the importance for tour operators, hotels, governments, for local people, as well as tourists, to make tourism more sustainable.

Responsive website

This is a type of web design that makes your web page look good on all devices, e. g. on mobile, tablet.

Seasonality

Increase or decrease in tourist number caused by weather, season or other factors.

SEO

Search engine optimization is the practice of increasing the quantity and quality of traffic to your website through organic search engine results.

Supplier

The actual producer and seller of a unit of travel merchandise, such as a carrier, hotel or sightseeing operator.

Tour guide

A person who takes people on trips through a certain area and explains the interesting details about it.

Tour operator

A travel agent specializing in package holidays.

Travel agent

A person engaged in selling and arranging transportation, accommodations, tours, or trips for travelers.

Travel booking software

This type of software helps you organize your tours and automates your tour operator business. It also enables you to create tours and activities, while at the same time it’s a travel service. The great thing about boking software is that you can manage your tour operator business from a single interface.

TripAdvisor

TripAdvisor is an independent net portal for travelers. It helps customers in gathering all the necessary travel information, as well as a place where people can leave their reviews and opinions on travel-related content.

Viator

The biggest travel marketplace for tours and activities. Viator connects travelers with the local tours and activities.

Voucher

A printed or an electronic document that proves a discount or paid tour or activity.

Wix

A free cloud-based website builder.

WordPress

An online open source tool for creating websites. You can use it to create a website for tours and activities to help travelers find you online and book your tours and activities online.
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