Chapter 2 Local Currency Fares and Ticketing Terminology (Computerized Reservation System)
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This document provides terminology related to local currency fares and ticketing in the airline industry. It begins with the presenter's credentials and experience in the field. Key terms defined include infant, child, adult fares, PNR, no-show, confirmed reservation, add-on fare, segment, sector, reconfirmation, reissue, constructed fare and more. It also briefly describes the Official Airline Guide, Travel Information Manual and processes of e-ticketing and fare construction.
Chapter 2 Local Currency Fares and Ticketing Terminology (Computerized Reservation System)
- 1. CHAPTER 2: LOCAL CURRENCY FARESTICKETINGTERMINOLOGY
- 2. PRESENTED BY: MD. SHAIFULLAR RABBI Professional Experiences Coordinator & Lecturer- Dept. of Tourism & Hospitality Management, Daffodil Institute of IT(Affiliated National University) Assessor -Bangladesh Technical Education Board (Ticketing and Reservation) Guest Trainer - Sheikh Hasina National Institute ofYouth Development Guest Trainer - ATAB Tourism Training Institute GuestTrainer- HB Aviation Training Center Guest Trainer - Bangladesh Hotel ManagementTourismTraining Institute Former Manager sales - Mamun Air Service (IATATravel Agency) Founder –Travel Memoria Educational Qualifications MBA & BBA-Major in Tourism & Hospitality Management, University of Dhaka. Certified NTVQF Level - 4/Assessor Part (Ticketing And Reservation) Completed Diploma Course in Travel Agency & Tour Operation Management Certified NTVQF Level 2 Course entitledTicketing & Reservation Certified NTVQF Level 1 Course entitledTour Guiding
- 3. AIRLINES INDUSTRY The airline industry encompasses a wide range of businesses, called airlines, which offer air transport services for paying customers or business partners. These air transport services are provided for both human travelers and cargo, and are most commonly offered via jets, although some airlines also use helicopters. Airlines may offer scheduled and/or chartered services and the airline industry forms a key part of the wider travel industry, providing customers with the ability to purchase seats on flights and travel to different parts of the world. The airline industry offers a variety of career paths, including pilots, flight attendants and ground crew.
- 4. GLOBAL AIRLINE MARKET: 2019 Passenger Numbers As per IATA, passenger numbers are expected to rise from 4.34 billion passengers in 2018 to 4.59 billion passengers in 2019. Revenue and Profits The overall revenue is expected to rise from $824 billion in 2018 to $885 billion in 2019. Global airline industry net profits will reach $35.5 billion in 2019, increasing from $32.3 billion in 2018.
- 5. EMPLOYMENT The aviation industry supports 87.7 million jobs around the world, either directly within the industry or, supported through the industry's supply chain, employees' spending and in the aviation-enabled tourism sector. 11.3 million direct jobs Around 11.3 million people work in the aviation industry directly.These jobs are: Airport operators: 648,000 (work for the airport operator) Other airport-based roles: 5.5 million (retail, car rental, customs and immigration, freight forwarders and catering) Airlines: 3.6 million (flight and cabin crews, executives, ground services, check-in, training, maintenance staff) Civil aerospace: 1.3 million (engineers and designers of civil aircraft, engines and components) Air navigation service providers: 237,000 (air traffic controllers, executives) These jobs are, on average, 4.3 times more productive than average jobs in the economy. Source- https://aviationbenefits.org/economic-growth/supporting-employment/
- 6. 18.1 million indirect jobs Over 18.1 million jobs globally are supported by aviation indirectly, through the air transport industry's purchase of goods and services. These include suppliers to the air transport industry, for example fuel suppliers, construction companies, suppliers of aircraft components, manufacturers of goods sold in airports, and a variety of business support roles, like call centres, IT and accountancy. 13.5 million induced jobs Air transport industry employees (direct and indirect) support 13.5 million induced jobs globally, using their income to purchase goods and services for themselves. Their spending power supports jobs in retail, consumer goods, and a range of service industries such as banks and restaurants. 44.8 million jobs in tourism Tourism is fast becoming the world's largest industry, and air transport plays a vital role. Conservative estimates suggest that aviation supports 44.8 million jobs within tourism.
- 7. KEY FUNCTIONS OF AIRLINES Airlines functional activities The structure of the airlines industry Planning Flight Scheduling Aircraft routing Principles of Airlines scheduling Fleet assignment Crew Scheduling Manpower planning Revenue Management Flight Dispatch Gate assignment Project Management Airlines Irregular Operation
- 9. TYPES OF AIRLINE EMPLOYMENT OPPORTUNITIES Flight Attendant Jobs: The main responsibility of a flight attendant is to make sure passengers are safe. Next, the must provide great customer service. Flight attendants make up almost 20 percent of the 515,000 employees that comprise the aviation workforce. Do you love to travel?The job might be for you! Airline Administrative Support: Every airline, big and small, needs administrative support staff to keep the office running smoothly. These positions include secretaries, data entry workers, receptionists, communications and PR specialists, and those who work in the human resources department who handle or oversee the hiring, labor relations issues, training,and termination of employees. Operations Agent: Also known as an Airline Operations Agent, the cargo agent needs great communication skills for receiving and transmitting information from and to pilots, ground crew, and other personnel. The Ops Agent must be able to prioritize a large number of projects and tasks. When flights are overbooked (it happens often!), agents must make decisions to rectify the situation in a way that will not negatively impact the schedule. Avionics Technicians: Avionics technicians specialize in working on the electronics systems of aircraft. Avionics technician jobs involve troubleshooting, repairing, replacing, and installing avionics equipment. Calibration of the equipment may also be required.
- 10. Regional Sales Manager: The airline district sales manager oversees all of a district’s reservations and ticket sales offices, and the sales representatives in that district. Sales representatives promote their airline in an effort to sell cargo space and plane tickets. Flight Dispatcher: Flight dispatchers are responsible for ensuring the safety of an aircraft’s flight. This includes preparing a flight plan, which is a detailed schedule of destinations, layovers, distance, expected fuel consumption, winds aloft, weather, altitude, compass bearing, and alternate destinations in case of problems. Ground / Airport Station Attendant: This position has many names: airline informational representative, ground attendant, station attendant, special assistant coordinator, or airport informational representative. Regardless of title, the main responsibility is to assist passengers in the terminal with general questions regarding directions, terminal services, or arranging wheelchair access. Aviation Meteorologist: Aviation meteorologists provide weather information to airline flight dispatchers and pilots. They must determine current and forecasted weather conditions for all altitudes, including the direction and speed of wind, cloud cover, and precipitation. Passenger Service Agent: Passenger service agents some of the same responsibilities as those in station agent jobs, but they are focused on working passengers – not aircraft. Their duties include issuing refunds to passengers, computing fares, preparing and selling tickets, collecting charges for excess baggage, checking baggage, and providing travel information. Ramp Planner: An airline ramp planner is responsible for knowing the arrival and departure times for each of the airline’s aircraft at that airport. He or she coordinates a variety of departments or contracted companies that must perform various tasks on the aircraft before it can depart for the next flight.
- 11. Reservation Sales Agent: Reservation sales agents provide travel information over the telephone to customers of the airline. Typically, this information includes trip planning, car rentals, seat availability, fare information, schedules, tours, meals, and other information relevant to the customer’s flight plans. Although internet reservations have skyrocketed, airlines still utilize reservation sales agents. Sales Representative: Airline sales representatives help generate business for the airlines. They promote their airline to businesses. Crew Schedule Coordinator: Airline crew schedule coordinator are responsible for staffing of aircrew and ground support to keep flights on schedule. If weather or mechanical difficulties delay a flight, it is the crew scheduler’s responsibility to make sure schedule adjustments are made so that travelers arrive at their destination on time. Airline Station Agent: The most important duty of the station agent or district operations manager, is ensuring the overall operations of a given airline at an airport. This encompasses both flight and ground support operations and involves coordinating flight crew, cargo crew, baggage crew, ground crew, and the information that must be communicated among all these teams. Airline Ticket Agent: Ticket agents work at an airline’s ticket or baggage counter. They greet customers when they arrive at the airport. They check in luggage and make seat assignments. They also handle airline ticket sales, reservation changes, and provide information on aircraft boarding. Airline Flight Instructor: An airline flight instructor provides recurrent training for the airline’s pilots.Airline flight instructors may be senior pilots who fly for the airline. Aviation Attorney: Aviation attorneys specialize in aviation-related cases in commercial or general aviation for individuals, government agencies, or companies. Aviation attornies represent airlines and/or the government. Some aviation attorneys work for the FAA, while others may be on staff or on retainer by large corporations who own aircraft or deal with airlines.
- 12. OFFICIAL AIRLINE GUIDE OAG is a global travel data provider with headquarters in the UK. The company was founded in 1929 and operates in the USA, Singapore, Japan, Lithuania and China. It has a large network of flight information data including schedules, flight status, connection times and industry reference codes such as airport. The "Official Aviation Guide of the Airways" was first published in February 1929 in the United States, listing 35 airlines offering a total of 300 flights. After the Guide was taken over by a rival publication in 1948, the September issue carried the OAG title for the first time. OAG was founded in Chicago, but moved to the suburb of Oak Brook, Illinois in 1968.The "ABC World Airways Guide" containing maps and tips for travelers was first published in the UK in 1946. The integration of the ABC and OAG brands occurred following the acquisition of OAG Inc. in 1993 by Reed Elsevier which already owned ABC International.[ OAG had acquired SRDS, an ad rate information company from Macmillan Inc. a sister Maxwell company, in 1992; Reed Elsevier sold SRDS to a buyout firm in 1994.[In August 1996 all products from the combined ABC and OAG businesses were rebranded as OAG.
- 13. TRAVEL INFORMATION MANUAL (TIM) Published monthly,theTIM (Travel Information Manual) is the world's leading source of Passport,Visa and Health documentationregulations for passengers.Airlines andTravel Agents useTIM to provide advice on border requirements to passengers at the time of booking, and airlines use it at the time of boarding to ensure passengers have sufficient travel documents for their destination and any transit points. If your passengers do not have sufficient travel documents the airline will not carry them! Key Benefits TheTIM is a must for all who are involved in the travel industry.This unique manual details rules and regulations for every nationality going to every country worldwide on subjects such as: Passport regulations and recommendations Visa regulations and recommendations Health regulations and recommendations Airport Tax to be paid by the traveler at either departure or arrival airport Customs regulations relating to import/export of goods and small pets by a passenger Currency regulations relating to import and export by a passenger
- 15. E-TICKETING An electronic ticket, often called e-ticket, is the digital ticket equivalent of a paper ticket. The term is most commonly associated with airline issued tickets. Electronic ticketing for urban or rail public transport is usually referred to as travel card or transit pass. It is also used in ticketing in the entertainment industry. An electronic ticket system is a more efficient method of ticket entry, processing and marketing for companies in the airline, railways and other transport and entertainment industries.
- 17. AIRLINESTERMINOLOGY Tariff/ fare: The money a person pays to travel on an airplane. Infant: 0 to below 2 years passenger. A person who has not reached his/her second birthday as of the date of commencement of travel. Normally pay 10 percent of normal adult fare. Indicate in the fare basis box in the ticket. Child: passenger 2-to below 12 years old. A person who has arrived his/her second birthday but not his/her 12th birthday as of the date of commencement of travel pay child fare. Also indicated by CH in the fare basis box in the ticket. Adult: A person who has reached his/her 12th birthday as of the date of commencement of travel. PNR: Passenger name record -The official name of one’s reservation in a computer system (CRS). No Show: A traveler who does not appear for a flight on which he or she has a reservation and fails to cancel that reservation properly. Airlines will cancel all further flights on a traveler’s itinerary if a reservation is not cancelled.
- 18. Excursion: Any person visiting a country other than where he lives and remain less than 24 hours as per IATA. Tourist: Person who stays at least 24 hours but not more than one year in the country visited and the purpose of that trip can be business, leisure, holiday, meeting. NUC; Neutral unit of construction means standard Units of currency use for the fare construction. ROE; IATA rate of exchange: The ROE established by the IATA clearing house for the use to A) convert the local selling fare in to NUC values and B) convert NUC values when used in fare construction /calculation into the local selling fare (in the currency of country of commencement of journey.) Over book: The practice by airlines of confirming more seats on an aircraft than are actually available. Airlines often overbook their flights. In other words, they sell more tickets than there are seats, in order to compensate for the no-show factor. Confirmed Reservation: Oral or written statement by a hotel, restaurant, airline or other supplier that the request for a reservation has been received and will be honored Add on Fare: Used primarily for international travel where the fare from a gateway is fixed and a fare for travel to the gateway is added on to provide a total fare for travel.
- 19. Segment: A ‘leg’ or part of a journey, usually in reference to an air itinerary. One takes off and landing during air travel constitutes a segment. Sector: A portion of an itinerary which may be comprises of legs or segments, usually used in reference to fare construction. Reconfirmation: A requirement that passengers under certain given circumstances advice a carrier of their intention to use the space reserved. Reissue: The generation of a new ticket that is exchanged for another, due to change of plans, dates, flights etc. May involve additional fare penalties and fees. Revalidation: The authorized stamping or written upon the passenger ticket evidencing that it has been officially altered by the carrier. Constructed fare: A fare, other than a specified fare, constructed in accordance with principles described in the fare construction principles section of the air tariff. Service Charge: Amount of money determined by a percentage of a customer’s total purchase. A fare additional charge made by travel agents for services beyond the normal activities of arranging for transport, accommodations. Commission: The amount paid by the supplier (carrier, hotel, tour, operator, etc) to the travel agent for selling transportation, accommodations or other services. Override: Extra commission paid by carriers, tour wholesalers, hotels and other suppliers to travel agents as bonuses or incentives for selling these particular firm services.Usually related to volume business.
- 20. Stand by / Go Show: A passenger trying to obtain space on a flight earlier or later than his / her scheduled flight is said to be going on a standby. Boarding Area: The space for passengers waiting to obtain boarding passes, check- in or board a plane. Boarding Bridge (Covered Walkway): A covered passageway from an airport terminal building to an aircraft for the use embarking and disembarking passengers. Boarding Pass: Card handed to a passenger before boarding and aircraft. It indicates that all check in formalities have been completed and specifies the class and compartment of the air craft as well as sometime indication the seat number allotted to the passenger. Baggage Claim: The area in an airport where customers claim their checked luggage. Connecting Flight: Two or more flights used to transport a customer between two cities. When a passenger changes planes en route from origin to destination, each flight number is different and the time on the ground cannot exceed 4 hours for domestic. Interline connection: A flight on one airline that connects to a flight on another carrier-these tickets are usually more expensive than flying all on one carrier but may be the only way to get to a destination in some cases. Also unless an interline agreement for baggage handling exists, you may have to claim your luggage from the first flight and recheck it on the next carrier’s flight. Electronic Ticket (E-ticket): A computer record, and not printed on a paper ticket. It may be referred to as ticketless travel. A receipt is printed for customer records.
- 21. Passenger Ticket: Those portion of the passenger ticket and baggage check constituting the passenger’s written evidence of the contract of carriage. Special Service Request (SSR): A PNR field used to request a special service or action. This field generates a message to an airline. The most common of these requests is for special meals (for example: Kosher, vegetarian) and seat assignments. Other requests are for MAAS, stretcher, wheelchair, oxygen, and unaccompanied minors,which must be made directly with the airline . Upgrade: To move to the next higher category, as to upgrade a passenger from coach to business class. Some tickets allow a passenger to upgrade using the redemption of miles, a certificate or award or paying with money. Higher-Intermediate-Point : A place on an itinerary to which there is a higher fare than the destination or next fare break point. When a city between the city of origin and the fare break point has a higher fare than the destination city, the higher fare must be used. Direct Flight:- A flight to another city stops at least once en route, but does not involve a change of Carrier ( you do not have to change the plane) DAC – BKK – SIN : BG-046 Non-Stop Flight:- A flight that proceeds directly to the final destination without any stops at intermediate points. DAC- KUL BG086 Intraline connection (On line):- When a passenger has to change the aircraft of the same airlines for transfer connection during his journey then it is called intraline connection. DAC – BKKTG-340, BKK – KULTG-415
- 22. Interline connection (Off line): When a passenger has to change both the aircraft and the airlines for a transfer connection during his journey then it is called interline connection. DAC – CCU BG 095 CCU – MAA 9W-654 Origin: The initial point at which a journey commences or the initial point of a published fare used in the calculation of a through one way, round or circle trip fare. Destination: A place, which supplies the reason for travel and where the journey of the travelers ends for some time. According to its facilities and attractions the destination can be a business destination, a touristic destination or other. Stopover: A deliberate interruption of a journey, requested at a place between points of origin and destination. First Class: Generally the most expensive class of service is first class. First-class passengers sit in a wider, more comfortable seat and pay no extra charge for drinks, headsets, or movies. Amenities include china and linen place settings, elaborate meals and deserts. First class is usually at the front of the plane, or upstairs on some planes. Business Class: Business class usually offers service in between first class and coach. Many airlines offer special services for the business traveler, such as a larger tray-table for paperwork, fax service, or electrical outlets. Business class is found on airplanes that have three or more cabins, which includes most international flights and sometimes on flights within the U.S. Economy / Coach Class: Coach/economy class is generally the less expensive class of service. Passengers receive the basics a seat, nonalcoholic beverages and sometimes meal service, or meal service at a cost.
- 23. BILLING & SETTLEMENT PLAN BSP:- The IATA Billing and Settlement Plan: A system for computerized processing of accounts between Agents and Airlines on a country-by-country basis. BSP is a standardize system for airlines and agents, providing them with a simplified approach to the selling, reporting and administration of passenger air transportation. Through BSPs, both Airlines and agents improve service standards saving time, effort and thereof money.
- 24. MAXIMUM PERMITTED MILEAGE Maximum permitted mileage (MPM); the element in the mileage principal in the MPM which is the maximum distance in the miles that the passenger is allowed to travel between the origin and destination of a fare component. IN the PAT fare pages you find MPM under GI/ MPM and routing column. In fare construction, the permitted total of ticket point mileages allowed between two fare break points. Maximum Permitted Mileage (MPM) distances represent the maximum distance between two specified international points established on the basis of shortest combinations of non-stop sectors and where applicable, over specified construction points, increased by 20%. The Mileage Manual contains close to 7 million MPM distances. It is published once per year in April and includes monthly bulletins. MPM DAC- DXB 2652 DXB-L ON 6579 LON-P AR 635
- 25. TICKETED POINT MILEAGE Ticketed point mileage (TPM): TPMs represents the shortest operated mileages between the ticketed points of journey. These TPMs are published in the general PAT rules book. An officially stated distance between two cities, used in airline fare calculations regardless of the airports used. Official source for flown mileages between all points including more than 65,000 city pair mileages. A TPM represents a distance covered by one flight coupon of a passenger ticket and is calculated on the basis of non-stop or through scheduled air services. TPMs are also used when establishing prorate factors. The TPM is published twice per year for yearly annual fee including monthly bulletins.
- 26. EXCESS MILEAGE ALLOWANCE Excess mileage allowance (EMA): If in case the total TPM is higher than the MPM ,you have to look for an EMA .The EMA is the TPM deduction or published bonus mileage that is deducted from the total TPM . Such mileage deduction depends on the type of routing .the origin/destination and via points of the fare component. After deducting the applicable EMA from the TPM, the reduced TPM is compared once again with the MPM to determine whether or not the routing is “within the mileage”. The complete list of EMA is found in section 2.3.4 of the PAT general rules supplement.
- 27. LOCAL CURRENCY FARE LCF: Local currency fare Payment in the country of commence of travel: A) In the currency of the country of commencement of travel or B) In any currency not marked with # sign in the NUC conversion factor table in PAT. Convert these currencies to the bank selling rate effective on the date of ticket issuance.
- 28. EXTRA MILEAGE SURCHARGE Extra mileage surcharge: It may happen that after checking the EMA tables, you cannot find an applicable EMA or you found it was not enough to lower the TPM .In such cases, the TPM still exceeds the MPM and it becomes necessary to impose a surcharge. Surcharges may vary from 5% to 25% and are determined by a simple formula .with divided the TPM total by the MPM. If the result is : surcharges the fare by: Over 1.000000 but not higher than 1.050000 … 5% Over 1.050000 but not higher than 1.100000 …10% Over 1.100000 but not higher than 1.150guatda.com/cmx.p000...15% Over 1.150000 but not higher than 1.200000 …20% Over 1.200000 but not higher than 1.250000 ……2 5% When using this formula you must check up to six decimal places.
- 29. Code Sharing: Code sharing is the most common type of airline partnership; it involves one airline selling tickets for another airline’s flights under its own airline code. Code sharing is an aviation business term for the practice of multiple airlines selling space on the same flights, where a seat can be purchased on one airline but is actually operated by a co operating airline under a different flight number or code. When airlines code- share, they combine their schedules and marketing efforts and enter into agreements for reservation and ticketing. Baggage Allowance: The weight or volume of baggage that may be a passenger carried without additional charge. Now a day’s maximum airlines has their own baggage allowance policy. As per IATA standard baggage allowance weights for Economy class 20 KG, Business class 30 KG, First class 40KG. For travel between cross Atlantic or cross Pacific luggage allowance for Economy class 2Pc X 23 = 46KG, Business class 2Pc X 32 = 64KG, First class 2Pc X 32 = 64KG
- 30. SPECIAL MEALS Special Meals: Airlines offer special meals for a variety of reasons therefore, there are many types of meals. Most airline offer children meals low calorie low/no salt, low cholesterol, diabetic and vegetarian. Religious or ethnic meals are offered such as Kosher, Muslim, Hindu and Oriental, Not all airlines offer all type of meals. Very often the places an airline will fly will determine the types of special meals offered. Special meals must be ordered 12-24 hours in advance of the flight so that they may be prepared and boarded on the proper flight.There is no cost for a special meal.