North America Air Travel Part 2

North American
Air Travel, Part 2
Study Unit
03500703
Study Unit
North American Air

Travel, Part 2
By
Jeanne Semer-Purzycki
Reviewed By
Constance F. Curlott, CTC
About the Author
Jeanne Semer-Purzycki is one of the leading authors in travel and
tourism education today. She is the author of five leading textbooks
for the travel and tourism industry: Travel Vision: Guide to the
Travel and Hospitality Industry (Prentice-Hall), Practical Guide
to Fares and Ticketing, 3d ed. (ITP Publishing), Guide to SABRE
Reservations and Ticketing (ITP Publishing), International Travel,
Fares and Ticketing (Prentice-Hall), and Sails For Profit (Prentice-
Hall), a comprehensive how-to for cruise travel.
Ms. Semer-Purzycki has served as classroom instructor and direc-

tor of the Travel School of America in Boston. She has also been
a contributing author for the Travel Institute (formerly ICTA).
Ms. Semer-Purzycki currently serves as Educational Specialist
with the Higher Education Assistance Group, Boston, where she
assists schools and colleges in all phases of operation.
Ms. Semer-Purzycki earned a bachelor’s degree in Education from

the University of Vermont and a master’s degree in Education and
Instructional Media from Central Connecticut State University.
About the Contributing Reviewer

Constance F. Curlott, CTC, earned a bachelor’s degree in
Education from Southern Illinois University and obtained her
Certified Travel Consultant Certificate from The Travel Institute
(formerly ICTA), Wellesley, Massachusetts. Before retiring, Ms.
Curlott was an adjunct professor at Florida Community College,
where she taught Travel Agency Operations, Tourism, Destination
Geography, and Computer Reservations Systems.
All terms mentioned in this text that are known to be trademarks or service
marks have been appropriately capitalized. Use of a term in this text should not
be regarded as affecting the validity of any trademark or service mark.
Copyright © 2008 by Penn Foster, Inc.

All rights reserved. No part of the material protected by this copyright may be
reproduced or utilized in any form or by any means, electronic or mechanical,
including photocopying, recording, or by any information storage and retrieval sys-
tem, without permission in writing from the copyright owner.
Requests for permission to make copies of any part of the work should
be mailed to Copyright Permissions, Penn Foster, 925 Oak Street, Scranton,
Pennsylvania 18515.
Printed in the United States of America
03/27/09
A good part of a travel professional’s day is spent
qualifying clients for the best airfare and then
completing the necessary tickets. In this study
unit, you’ll learn about two very important
services provided at a successful travel agency: booking air-
P r ev i ew
line reservations and completing tickets. This study unit
focuses on domestic airfares, including the different types of
fares and discounts available, as well as how to calculate
prices on an airline ticket.
In this study unit, you’ll learn about the different types of
ticket documents and how to prepare them accurately for
your clients. In your travel program, you’ll learn both manual
and automated procedures for making reservations and issu-
ing tickets. Although the procedures for the two differ, the
information processed is similar. The basic skills that you’ll
learn in this study unit will build a strong foundation for an
upcoming study unit on computer airline reservations.
When you complete this study unit, you’ll be

able to
• Describe domestic airfares and the principles of
domestic air fare construction
• Interpret the basic codes of airfares
• Explain electronic airfare rules
• Explain the three basic components of airline ticket

prices and federal airline ticket taxes
• Interpret all necessary information from a passenger

reservation record and itinerary price display when
completing airline tickets
• Handwrite standard airline tickets, prepaid ticket

transactions, and airline ticket refund transactions
iii
Airfares 1
Types of Airfares 1
Fare Calculation Terms 6
Contents
Fare-Basis Codes 10
Electronic Fare Rules 13
Fares, Taxes, and Surcharges 15
Reading Itinerary Pricing 22

Price Displays for One Way 23
Price Displays with Connecting Flights 26
Price Displays for Round-Trip and Circle-Trip
Routings 27
Airline Tickets 32
Ticket Forms 32
Parts of a Ticket 38
Validating an Airline Ticket 40
ARC’s Area Settlement Plan 41
Completing Airline Tickets by Hand 45

Rules of the Road 45
Ticket Breakdown Reference 46
Completed Ticket Example 51
Some Key Points about the Ticket Example 52
Prepaid Ticket Advice 59

The Prepaid Ticket Advice (PTA) 60
PTA Service Charge 60
Agency Commission on a PTA 61
Processing a PTA 62
Completed PTA Example 63
Ticket Refunds 68
Refund Documentation 69
The Refund/Exchange Notice (REN) 69
Step-by-Step Procedure 69
Ticket Refund Example 71
Completed REN Example 72
v
Self-Check Answers 81
Glossary 87
Examination 91
vi Contents
North American Air Travel, Part 2
AIRFARES
Types of Airfares
A typical question from an air traveler begins with, “What’s
the least expensive airfare to . . . ?” As you can imagine, cost
is usually the primary consideration for most travelers when
planning a business or vacation trip.
Domestic airlines now offer a wider selection of special
discounted fares than ever before. This is mainly due to the
Deregulation Act of 1978, which allows airlines the opportu-
nity to govern all aspects of their operations, excluding the
safety standards governed by FAA rules. As a result, airlines
now compete for air passengers by offering discounted fares
on most of their routes. Today, the airline passenger has a
wide choice of discounted fares—often up to 40 percent off
regular ticket prices.
The vast number of fares has certainly benefited
travelers. The variety of choices has also
made the travel agent’s job much
more challenging! There
are so many fares and
changes that it’s hard to keep
track of all of them. For example,
between New York and Miami alone
there are over 200 different types of
discounted fares. The price of a ticket
depends on many factors such as
• When you’re traveling—weekday or weekend?
• How long you’re traveling—a few days or a month?
• When you purchase your ticket—last minute or
weeks before departure?
North American Air Travel, Part 2 1

FIGURE 1—Wherever the destination, there are many factors that influence the final cost of an airline ticket.
How do you, the travel professional, keep track of it all? You

depend on all of your resources. Travel agents use their air-
line computer reservation systems and announcements from
airlines to keep up-to-date on fares. As you learned previous-
ly, you qualify your clients for the best airfare by asking
them such questions as
• When do you want to travel?
• How long are you staying?
• When can you buy your ticket?
After you know the who, where, when, and how from your
clients, you then can match them up with the best fare
(Figure 2).
The one thing that all of these discounted fares have in
common are travel restrictions. A good rule of thumb to
remember is when the fares go down, the number of travel
restrictions goes up. If a fare allows the passenger freedom
and flexibility, then the ticket price will be higher. If a fare
has many restrictions and conditions of travel, then the ticket
price will be lower.
2 North American Air Travel, Part 2

FIGURE 2—Your retired client, who wants to travel back to Scotland to visit relatives, can be flexible about the
time frame of the visit. Flexibliity usually means you can get the client a better fare.
Before considering what types of discounted fares you’ll be

selling to your customers, you should become familiar with
the three general categories of airfares: normal, discounted
one-way or round-trip, and instant-purchase.
Normal Fares
Normal fares have no restrictions of travel. Tickets written A general rule of thumb:
on normal fares are valid for up to one year from the date Restrictions
they’re issued. Reservations can be made at any time and on Traveler = Lower Fare
tickets can be canceled (and are fully refundable) without

Flexibility
penalty. Because of the lack of travel restrictions, normal on Traveler = Higher Fare
fares are the most expensive.

Discounted One-Way/Round-Trips
Some discounted fares can be sold one-way, while others
must be sold on a round-trip basis. Any fare that must be
sold round-trip is called an excursion fare. Discounted one-
way fares and excursion fares represent a substantial savings
over normal fares. However, most of these discounted fares
and excursions charge a fee if the passenger cancels the ticket
or changes the reservation at any time.
Instant Purchase
An instant-purchase
Instant-purchase fares are usually sold as round-trip fares
ticket is a type of dis- just like excursions. However, an instant-purchase fare is the
counted fare that must most restrictive type of all, since it has many conditions of
be purchased within
travel.
one or two days after
booking; most are non- All instant-purchase fares share the following restrictions:
refundable in nature.
• Tickets are nonrefundable; if the passenger cancels the
ticket and doesn’t rebook, no money is refunded.
• There’s a service, or administrative, fee if the passenger

changes the reservation at any time.
• Tickets are instant-purchase; they must usually be

purchased within one or two days after the reservation
is made.
Passenger-Type Discounts
There are also discounts based on what type of passenger
you are. These are called passenger-type discounts. These
discounts have the following things in common:
• They represent a certain percentage off the regular or
normal fare.
• They aren’t generally permitted with fares already

deeply discounted, such as instant-purchases and
nonrefundables.

The two most common types of passenger discounts are
senior citizen fares and student fares. Each passenger type
usually qualifies for a 10-percent discount off the regular
published fare.
Children also qualify for reduced fares. A child is defined as
a passenger from 2 through 11 years of age. Children may
be entitled to a discount off the normal adult fare on some
routes. Infants (under two years of age) are considered “lap
children,” since they’re small enough to sit on an adult’s lap
on the plane. In that case they fly free on domestic routes
and don’t require an airline ticket.
Airline Discount Coupons

Most domestic airlines use discount coupons as a means of
offering discount fares on certain routes and at certain times
of the year to increase the number of passengers. These
coupons are found just about everywhere—in newspapers,
magazines, or mailings—and are often distributed through
banks, supermarkets, or credit card companies.
In many cases, these discount coupons are targeted toward
specific types of passengers such as senior citizens, students,
or families. These coupons and the restrictions of travel vary
from airline to airline. However, there are two general cate-
gories of discount coupons: discount-amount and set rate.
Discount-amount. This type of coupon allows a certain
amount off the regular published airfare. The amount of
discount varies; some coupons allow a percentage discount
while others allow a dollar amount discount.
Set rate. This type of coupon allows a ticket to be issued
at a set rate. The rate or amount is usually based on geo-
graphical zones or specific routes.
All coupons issued by airlines have established rules and
restrictions. Some of the most common restrictions that
apply include blackout dates (a specific period of time when
the fare isn’t valid) and length-of-stay restrictions. Figure 3
is an example of a discount-amount coupon.

FIGURE 3—Airlines issue
discount-amount coupons
like the one shown here.
Fare Calculation Terms

All airfares are calculated according to set rules and princi-
ples. In order for you to understand how ticket pricing works,
you should be familiar with the three principles used when
calculating domestic airfares: point-to-point fares, through
fares, and joint fares.
Point-to-Point Fares
The point-to-point fare is the basic principle of domestic fare
construction. It means that a fare is charged to each
stopover city on the routing. Do you remember the definition
of a stopover? It’s a deliberate stop in a city of more than
four hours. A fare is never charged to or from a connecting
city. As you recall, a connecting city is a city on the routing
where the passenger stops for less than four hours for the
primary purpose of changing planes.
Figure 4 shows a passenger flying on the circle-trip routing:
Chicago to Boston to Atlanta to Chicago. The passenger’s ori-
gin city is Chicago, and she is making stopovers in Boston
and Atlanta before returning to Chicago.
Because each city is a stopover (a stay of more than four
hours), you charge a point-to-point fare to each stopover city.
There are three fare segments on this ticket:
✈
FIGURE 4—A Point-to-Point
Fare Fare segment 1, priced from Chicago to Boston
✈ Fare segment 2, priced from Boston to Atlanta
✈ Fare segment 3, priced from Atlanta to Chicago

Now, here’s a chance for you to work on a point-to-point fare
yourself. Study the itinerary on the map in Figure 5. The
passenger is originating travel in Pittsburgh, and each city
on the routing is a stopover. List what fare is charged for
each segment in Figure 5.
1. Fare segment 1 is charged from the city of _______ to _______.

See if you answered correctly by checking your answers on page 8.
FIGURE 5—A Point-to-Point Fare Practice Exercise
Through Fares
A through fare is a fare for an on-line connection. It’s a pub-
lished fare between two stopover cities, which flies “through”
an intermediate connecting city.
Figure 6 shows a connecting flight of Delta Air Lines from
Baltimore, Maryland (BWI) to Portland, Oregon (PDX). The
connecting city is Kansas City, Missouri (MKC).
FIGURE 6—A Through Fare

Since Kansas City is a connecting city, the through fare from
Baltimore to Portland is charged. There is one fare segment on
this ticket:
Answers to Figure 5.
Fare segment 1 is priced from Baltimore to Portland.
1. Pittsburgh;
Minneapolis Now, here’s a chance for you to work on a through fare your-
self. Study the round-trip itinerary on the map in Figure 7.
2. Minneapolis;
The passenger is originating travel in Albany, New York (ALB)
Houston
and making an American Airlines on-line connection through
3. Houston; Atlanta Chicago, O’Hare (ORD) to Salt Lake City (SLC). He is return-
4. Atlanta; Pittsburgh ing the same way. List the two fare segments that are
charged on the ticket in Figure 7.

FIGURE 7—A Through Fare Practice Exercise
Joint Fares
A joint fare is charged when a passenger is traveling on an
off-line connection (on two different carriers). Due to the
hub-and-spoke system and code-sharing, there are fewer off-
line connections made any more. Although you won’t book

joint fares very often, there are off-line connections on cer-
tain routes, you’ll still need to understand them.
A joint fare is an agreed price by two airlines via a specific
connecting city. Sometimes joint fares are priced a little high-
er than through fares, which is when travel is via the same
carrier; sometimes the joint fare is the same as the through
fare. Practically no discounted fares allow off-line connec-
tions (that is, no joint-fare agreements for discounted fares
since passengers usually have to travel on the same airline
to qualify).
Figure 8 shows a passenger on an off-line connection from
Denver to Miami. The first flight segment is on United
Airlines from Denver to the connecting city of Dallas/Ft.
Worth. The passenger connects to an American Airlines flight
from Dallas/Ft. Worth to Miami.
FIGURE 8—A Joint Fare
Since Dallas/Ft. Worth is a connecting city, there isn’t a

charge to or from Dallas. However, since the passenger is on
an off-line connection, a joint fare is used. The joint fare may
be a higher price than a through fare or, in some cases, it
may be the same. There’s one fare segment on this ticket:
the joint fare from Denver to Miami.
Now, here’s a chance for you to work on a through fare and
joint fare yourself. Study the circle-trip itinerary on the map
in Figure 9. The passenger is on a connection in each direction
of travel. The first connection is from Boston to San Diego
through the connecting city of Chicago. The first flight is on
United Airlines and the second, or connecting, flight is on
American Airlines. The passenger is returning on a different
route. He is traveling on US Air from San Diego to the con-
necting city of Pittsburgh and connecting to another US Air
flight from Pittsburgh to Boston. Complete the practice exer-
cise in Figure 9.

2. Fare segment 1 is a (joint fare, through fare)?
4. Fare segment 2 is a (joint fare, through fare)?
FIGURE 9—A Joint Fare Practice Exercise
Fare-Basis Codes
There are hundreds of Each type of airfare is identified by a fare-basis code. A fare-
fare-basis codes. What
does a fare-basis code basis code can be as short as one character, or as long as
look like? A typical fare- seven or eight characters. Usually the more restrictions an
basis code might be airfare has, the longer the fare-basis code. Travel agents gen-
CXE3NR
erally use the computer airline reservation systems to find
fares for their clients. The fare-basis codes are displayed on
Once you learn the stan- the screen to identify the types of fares available.
dard elements that make
up fare-basis codes, It isn’t necessary to memorize these codes, since fares
you’ll be interpreting change all the time. However, it’s helpful to be familiar with
them before you know it.
some of the characters that make up these codes and what
they represent. You can tell a lot about a fare just by looking
at the fare-basis code, since each character or combination

of characters identifies a specific travel restriction. For
Answers to Figure 7.
example, a fare-basis code can tell you if the passenger can
receive a refund if the ticket is canceled; if the passenger is 1. Albany; Salt
required to travel during certain days of the week; or if the Lake City
passenger has to pay a penalty if he or she changes the 2. Salt Lake City;
ticket. Albany
We call each character that makes up a fare-basis code an
element. An element can be a letter, a number, or a combina-
tion of both. Elements or characters that make up the fare-
basis codes are usually listed in a specific sequence.
Some of the major elements used in fare-basis codes follow. Answers to Figure 9.
A description and some examples are shown for each. 1. Boston;
San Diego
Primary Element 2. joint fare
A primary element is the first letter-character in a fare-basis 3. San Diego; Boston

code. A primary element indicates the class of service appli- 4. through fare
cable to the fare, such as coach class, first class, and so on.
The primary element also indicates the letter code, or booking
code, required when making the reservation.
When the primary element stands alone in the fare-basis
code, the fare has no conditions of travel; it’s a normal fare
without restrictions.
Examples of fare-basis codes for normal fares (fares with no
restrictions of travel) include
• F First class normal fare (no restrictions)
• C Business class normal fare (no restrictions)
• Y Coach class normal fare (no restrictions)
As you learned earlier in this study unit, many types of dis-

counted fares, such as nonrefundables and excursions, are
sold on a controlled-inventory basis. The airline sets aside a
certain number of seats on a flight to be sold at a discounted
price. Some examples of controlled-inventory primary codes
are Q, K, H, V, M, and L. When the travel agent books a
discounted fare, the passenger must be booked with the
appropriate controlled-inventory primary code.

Secondary Elements
Secondary elements are always listed after the primary
character in a fare-basis code. There can be any number of
secondary elements in a fare-basis code. They identify some
of the restrictions or conditions of travel that are applicable
to the airfare. The most common secondary elements are
described in Figure 10. They’re listed in the same sequence
in which they generally appear in the fare-basis code.
Remember, these are general rules of thumb, and the
sequence may be different for some fares.
COMMON SECONDARY ELEMENTS IN FARE-BASIS CODES

Restriction Description Secondary Element Examples
Some flights are designated as special night or of f- YN = Coach, of f-peak discounted
Night or Of f-Peak peak ser vice. They represent a discount from the CN = Business, of f-peak discounted
Discounts standard fare in the class of ser vice. The letter N is FN = First, of f peak discounted
used to identify these fares.
Fares published to seasonal destinations (to places H = High or peak season
like the Caribbean, Europe, Bermuda and so on) will be O or K = Shoulder season
priced higher during those periods of heavy passenger L = Low or basic season
travel, and priced lower during those periods of low
passenger travel. Some destinations have two standard
Seasonal Codes
seasons: high (or peak) and low (or basic). Some
destinations have three seasons: high, low, and a mid-
priced season called shoulder. Fares during shoulder
season are less expensive than high season and more
expensive than low season.
Some fares are divided into midweek and weekend fare X or L = Midweek (less expensive)
levels. Generally, fares are less expensive if the W or H = Weekend (more expensive)
Time of Week passenger travels during midweek (Monday through
Thursday); fares are more expensive if the passenger
travels during the weekend (Friday through Sunday).
Some discounted fares are valid only for round-trip E = Excursion (round-trip required)
Round-Trip travel; a one way ticket isn’t permitted. The general R = Round trip required
Requirement name for any fare that must be ticketed round-trip is
called an excursion.
Reser vations for most discounted fares must be made 3 = Reser vations must be made no later
no later than a cer tain number of days before trip than 3 days before depar ture.
depar ture. The number of days for booking is sometimes 7 = Reser vations must be made no later
Advance
included in the fare-basis code. If it’s included, the than 7 days before depar ture.
Purchase
advance purchase number of days appears as one of the 14 = Reser vations must be made no
last codes in the fare-basis code. later than 14 days before depar ture
Many of the deeply discounted fares are nonrefundable N or NR = nonrefundable

if the passenger cancels his or her ticket. Also, many P = instant-purchase
Nonrefundable/ of the nonrefundable fares are considered "instant-
Instant Purchase purchase" since the ticket must be purchased within
one or two days of booking. If applicable, this is usually
the last code in the fare-basis code.
FIGURE 10—Common Secondary Elements in Fare-Basis Codes

So, after you learn the basic primary and secondary ele-
ments, it’s easy to be able to identify them in the fare-basis
codes. Let’s take a look at an example.
The fare-basis code for a particular fare looks like this:
VLW3NR
You can interpret this fare-basis code by looking at each
element:
• V is the primary booking code, which indicates that
the reservation must be made in V—a controlled-
inventory class of service, which you learned about in
North American Air Travel, Part 1.
• L is a secondary element that indicates low or basic

season.
• W is a secondary element that indicates weekend

travel.
• 3 is a secondary element that indicates the reservation

has to be made and ticket must be issued no later
than 3 days before departure.
• NR is the last secondary element, and indicates the

fare is nonrefundable.
Electronic Fare Rules

Electronic fare rules are
When you sell a ticket at a discounted fare, you must make detailed descriptions of
a fare’s travel restric-
sure that the passenger satisfies all conditions and restrictions and conditions of
tions of travel. In order to find out if a traveler qualifies for a travel, which are stored
discount, you must know everything about the fare, such as and retrieved through
the airline computer
• When the ticket must be purchased reservations systems
(CRS)/global distribu-
• How long the passenger can stay before returning tion systems (GDS).
home
• On what days of the week or hours of the day the

passenger must travel
For every fare type, there’s a published rule. They’re called

electronic fare rules, since they’re stored in and retrieved from

the computer system. Electronic fare rules describe in detail
all restrictions and conditions of travel for each fare stored in
the computer system. Travel agencies and airlines use com-
puters that store more than 100,000 fares and rules at any
one time! The computers also are programmed to make
changes so that the information displayed on the ticket
agent’s computer screen is current and accurate.
Fare rules differ in complexity and length. The length of a
fare rule depends on how many restrictions it contains. For
normal fares with few or no restrictions, the fare rules are
quite short, with only a few lines on the screen. The fare
rules for discounted fares such as nonrefundable and
instant-purchase are quite long. An electronic rule for a dis-
counted fare has so much information that several screens
are needed to display it all (Figure 11).
Each electronic fare rule is divided into information cate-
gories. Each information category describes a specific type of
restriction or condition of travel.
The chart in Figure 11 provides descriptions and examples of
some information categories found in most discounted fare
rules. It’s important to understand that the number of cate-
gories differs from rule to rule; if a category is omitted, the
information found in that category isn’t applicable to the air-
fare. For example, the second category of a fare rule provides
information regarding penalties if the reservation is changed
or canceled. If a fare doesn’t have any change or cancellation
penalties, category number two won’t be displayed in the
rule.
The example in Figure 11 is for a nonrefundable excursion
fare identified by the fare-basis code MXE7NR. This fare rule
is displayed for a flight on American Airlines, New York to
Los Angeles. The information under the right column “Fare
Rule Example” appears as it’s displayed on the agent’s
computer screen. The left column tells you what information
category the rules relate to.

INFORMATION CATEGORY FARE RULE EXAMPLE: MXE7NR
(WHAT IT MEANS) [HOW IT APPEARS DISPLAYED ON THE COMPUTER SCREEN ]
BOOKING CODE: The class of ser vice or 01 BK CODE - M -

booking code used when making the
reser vations.
PENALTY: The amount of penalty for 02 PENALTY—TICKETS ARE NONREFUNDABLE. FOR CONFIRMED
both cancellation of ticket and changes CHANGES THE FOLLOWING APPLIES: A USD50 ADMINISTRATIVE
to the reser vation. (USD 50 refers to SERVICE FEE WILL BE ASSESSED BEFORE/AFTER DEPARTURE
50 U.S. dollars.) FOR AN ITINERARY CHANGE WITH OR WITHOUT TICKET REISSUE.
RESERVATIONS/TICKETING: The date by 03 RES/TKT—RES MUST BE MADE NO LATER THAN 7 DAYS BEFORE
which the reser vation must be made; and DEPARTURE FROM ORIGIN. TICKET MUST BE PURCHASED NO
the date by which the ticket must be LATER THAN 7 DAYS BEFORE DEPARTURE FROM ORIGIN OR 1 DAY
purchased and issued to the client. AFTER RESERVATION IS MADE, WHICHEVER COMES FIRST.
MINIMUM STAY: The first permissable 04 MIN STAY—RETURN TRAVEL IS VALID ON THE 1ST SUN AFTER
date the passenger may begin the return 12:01 A.M. MEASURED FROM DEPARTURE FROM ORIGIN TO
trip home. DEPARTURE FROM THE FARTHEST GEOGRAPHICAL CITY (OUTWARD
DESTINATION).
MAXIMUM STAY: The latest permissible 05 MAX STAY—RETURN TRAVEL MUST COMMENCE NO LATER THAN
date the passenger may begin the return 30 DAYS. MEASURED FROM DEPARTURE FROM ORIGIN TO
trip home. DEPARTURE FROM LAST STOPOVER POINT ON ROUTING.
DAY/TIME: The day(s) of the week or 06 MXE7NR—APPLIES MON THROUGH THUR AT ANY TIME.
time during the day when travel is valid. MWE7NR—APPLIES FRI THROUGH SUN AT ANY TIME.
BLACKOUTS: Specific date(s) when 08 BLACKOUTS—TRAVEL ISN’T VALID 19NOV, 22NOV, 26NOV.
travel isn’t allowed. Typical blackout
periods will be during holiday or school
vacation times.
EFFECTIVE/EXPIRATION: Ef fective date 09 EFF/EXP—TICKET MUST BE ISSUED BY 15SEP. RETURN TRAVEL AT
is the earliest and/or latest date when THIS FARE MUST BEGIN BY 15DEC.
fare can be sold or ticket issued to
passenger. Expiration date is the first
and/or last date when travel may begin
or be completed.
DISCOUNTS: The percentage or specified 14 DISCOUNTS—NO FARE IS CHARGED FOR AN INFANT PASSENGER
amount for special passenger-type UNDER 2 YEARS OF AGE NOT OCCUPYING A SEAT. INFANT
discounts. Typical examples are infant PASSENGER MUST BE ACCOMPANIED ON ALL SEGMENTS BY AN
and senior citizen travel. ADULT PASSENGER TRAVELING IN THE SAME COMPARTMENT.
OPEN RETURN: This indicates whether 18 OPEN RTN—WAITLISTING/OPEN TICKETS ARE NOT PERMITTED AT
an open flight coupon (no reser vation THIS FARE.
made at the time of ticketing) is allowed.
FIGURE 11—Fare Rule Example with Information Category Breakdown
Fares, Taxes, and Surcharges

When you write an airline ticket, there are different types of
charges that you include. The final or total fare on a ticket,
called the selling price, is the amount the passenger pays for
the ticket. The selling price includes two basic components:
base fare and tax. Whether you complete airline tickets by

hand or through the computer system, you need to know
what all the charges mean and where they go on the ticket.
Although we present Let’s start with the three basic components of practically
an overview of what every ticket. They’re the base fare, tax, and total selling
base fares, taxes, and amounts.
surcharges are and
how they’re calculated, The base fare is the published fare without any taxes.
keep in mind that
these will usually be The tax is any fee charged by the federal government when
calculated automati- travel is within the United States. There are different types of
cally using your
federal taxes that apply to domestic airline tickets.
agency’s computer
reservation system. Remember, every ticket price is broken down this way:
BASE FARE + TAX = TOTAL SELLING FARE
Let’s take a closer look at some additional surcharges and
taxes that are added to domestic airline tickets.
Fuel Surcharges
Fuel surcharges were instituted to help airlines pay for the
fuel that they use for passenger travel. Part of this cost is
passed on to their passengers in the form of fuel surcharges.
Fuel surcharges apply only for domestic airline travel within
the United States.
These surcharge amounts are charged by certain airlines
when departing from specific airports; they will not appear
on every ticket you issue. This surcharge, if applicable, is
collected by the travel agent at the time of ticketing. Any fuel
surcharges are added to the base fare and become part of
the base fare on the ticket. A surcharge is identified in the
computer and on the airline ticket with the letter Q.
Taxes
The federal government also imposes additional fees when
travelers use the civil aviation system in the United States.
Domestic airline tickets include four types of taxes:
• U.S. transportation tax
• Passenger facility charge (PFC)
• Segment tax
• U.S. security service fee

Here’s a brief explanation of each type of tax and the two-
letter code used to identify the type of tax on the airline ticket.
U.S. transportation tax. The U.S. transportation tax is a
certain percentage of the base fare. It applies to all tickets
issued for travel within the United States. Tax amounts
change periodically. The current tax percentage at the time
of publication is 7.5 percent. This percentage is used in all
examples and exercises in this study unit. The code that
identifies the 7.5 percent U.S. transportation tax is US.
Passenger facility charge (PFC). PFCs are additional tax
amounts and are applicable from selected airports; they don’t
appear on every ticket. Passenger facility charges (PFCs) help
to subsidize airport expansion projects or to update facilities
for passengers, and this cost is passed on to airline passen-
gers. An airport is granted the right to collect a PFC from
each passenger that departs from that airport. A PFC is valid
for only a certain number of years. If an airport wishes to
continue collecting PFCs, then it must request permission
from the federal government to do so. The majority of major
airports in the United States impose a PFC.
PFCs come in five amounts: $1.00, $2.00, $3.00, $4.00, or
$4.50. Also, only a maximum of four PFCs can be added to a
round-trip ticket; only a maximum of two PFCs can be added
to a one-way ticket.
If applicable to the routing, PFCs are collected at the time of
ticketing and added to the U.S. transportation tax on the
ticket. They’re also identified separately on part of the airline
ticket. The code that identifies a PFC is XF.
Segment taxes. The segment tax is a federal tax that applies
for a departure from the airport at the beginning of every
flight segment on the airline ticket. Segment taxes don’t apply
from selected rural airports. (A complete list is found in the
agency’s computer system and need not be memorized.) For
now, remember that segment taxes apply when departing
from most airports.
The amount of segment taxes changes annually. The seg-
ment tax of $3.40 is used in all examples and exercises
throughout this study unit.

If applicable to the routing, segment taxes are collected at
the time of ticketing and added to the U.S. transportation tax
and passenger facility charge(s) on the ticket. They’re also
identified separately on part of the airline ticket. The code
that identifies a segment tax is ZP.
U.S. security service fee. This fee is assessed for air trans-
portation originating at airports in the United States sold on
or before February 1, 2002. This fee is $2.50 per trip. The
code for this fee is AY.
Before going on to the next section, take time now to complete
Self-Check 1.
Self-Check 1
In each section of North American Air Travel, Part 2, you’ll be asked to check your understand-
ing of what you’ve just read by completing a “Self-Check.” Writing the answers to these ques-
tions will help you review what you’ve learned so far. Please complete Self-Check 1 now.
1–5: Each of the terms below describes a type of fare or a type of discount. Select the
correct term from the list below for each of the five descriptions that follow.
normal fare discounted excursion fare instant-purchase fare
set-rate coupon discount-amount coupon
1. Mr. Simmons purchased a ticket round-trip from Boston to Miami. He is required to pay for
the ticket within one day from when the reservation is booked. What type of ticket did he
buy?
__________________________________________________________________________
2. Judy Pratt clipped this out of a travel magazine. She can use it to purchase a ticket on United
Airlines and travel anywhere in the United States. She pays the normal ticket price minus
$50.00 on whichever ticket she buys on United Airlines. What type of discount did she clip?
__________________________________________________________________________
(Continued)

Self-Check 1
1–5: Each of the terms below describes a type of fare or a type of discount. Select the correct
term from the list below for each of the five descriptions that follow.
normal fare discounted excursion fare instant-purchase fare
set-rate coupon discount-amount coupon
3. Fred Branson, a business traveler, is flying from San Francisco to Dallas on business. It’s a
last-minute booking with no travel restrictions; the ticket is good for one year and he can
travel at any time. What type of ticket did he purchase?
__________________________________________________________________________
4. Yvette Clauson purchased a ticket between Baltimore and Kansas City. Her travel agent told
her that she must travel round-trip to get a discounted price. He also warned her that there’s
a penalty fee if she cancels the ticket or makes a change to the reservation. What type of
ticket did she purchase?
__________________________________________________________________________
5. The Young family received a coupon in the mail from Delta Airlines. If they use the coupon
they can travel on any Delta flight from New York, Boston, or Washington, D.C., to any city in
Florida for a set price of $250.00 during certain times of the year. This coupon is an example
of what type of discount?
__________________________________________________________________________
6–10: Choose the fare-basis code that most closely fits the description.
6. A fare that must be booked in Q class, based on low season (least expensive time to travel),
an excursion fare which must be booked seven days before departure.
a. QO7L c. QE7L
b. QLE7 d. Q7LE
(Continued)

Self-Check 1
7. A nonrefundable fare, booking must be made at least three days in advance, based on
shoulder-season travel during the weekend, based on Q class.
a. N3QW c. NQNR3
b. QHHN3 d. QK3N
8. An instant-purchase excursion fare, booked in V class of service, valid during weekday travel
only.
a. VWIP c. VXP
b. VLNR d. VW14IP
9. High season, L class fare, nonrefundable, 7-day advance reservation required.
a. LWNR7 c. LW7NR
b. LHNR d. LH7NR
10. Nonrefundable, valid during high season, weekend travel required, 21-day advance reserva-
tion required in M class.
a. NHW21M c. NWHM21
b. MHW21N d. MWHN21
11–22: Answer the following questions by referring to the electronic fare rule in Figure 11 for
the MXE7NR fare from New York to Los Angeles.
11. In what class of service do you have to book this fare?

__________________________________________________________________________
12. If the passenger cancels the ticket and doesn’t rebook, what’s the amount of his refund?
__________________________________________________________________________
13. The passenger is ticketed on this fare and now wants to change his return date. Assuming
that all provisions of the rule are still being met, does he have to pay a fee to make a
change? If so, how much?
__________________________________________________________________________
(Continued)

Self-Check 1
14. Your client is departing on June 15. What’s the latest possible date you can make a reserva-
tion for this fare?
__________________________________________________________________________
15. You made the reservation for this passenger on May 20; his departure date is June 15.
When must the ticket be purchased and issued?
__________________________________________________________________________
16. Your client is departing on June 15, which is a Wednesday. When is the earliest date he can
return home?
__________________________________________________________________________
17. What’s the latest date he can return home if he departs June 15?
__________________________________________________________________________
18. What day(s) of the week is this fare valid?

__________________________________________________________________________
19. What dates is this fare not valid (or, what are the blackout dates)?
__________________________________________________________________________
20. This fare is valid for only part of the year. The effective date is the last date that a ticket at
this fare can be issued to any passenger. What’s the last ticketing date for this discounted
fare?
__________________________________________________________________________
21. The expiration date is the last date when a passenger may begin or complete travel on this
fare. By which date must any passenger begin his or her return flight on this discounted
fare?
__________________________________________________________________________
22. Your passenger is traveling with his one-year-old son. The child will be sitting on his father’s
lap. What’s the charge for the infant?
__________________________________________________________________________
(Continued)

Self-Check 1
23–27: Fill in the blanks.
23. A domestic airline ticket is composed of three basic price components: base fare plus
_______ equals the _______ fare.
24. The U.S. transportation tax is a percentage of the base fare. It’s currently at _______
percent.
25. The code that identifies the U.S. transportation tax on the airline ticket is _______.
26. The maximum number of PFCs that can be collected on a roundtrip is _______. The code
that identifies a PFC on an airline ticket is _______.
27. The segment tax is charged when departing from most airports in the United States. Many
small or _______ airports are exempt from this tax. The tax amount changes year to year. The
code that identifies a segment tax on an airline ticket is _______.
Check your answers with those on page 81.
READING ITINERARY PRICING

You’ve confirmed your client on a flight and are now ready to
complete the airline ticket. All information that you print on
the airline ticket (whether by hand or through the computer)
is obtained from the reservation record that you create in the
travel agency’s computer. This reservation record is called
the passenger name record or PNR for short.
The PNR displays the information you need to complete the
airline ticket, such as passenger name, flight number, date of
travel, and itinerary. In addition to the passenger name and
flight reservation data, what other information is needed to
write a ticket? The price! The computer reservation system

can scan the passenger’s PNR and calculate the price of the
ticket. We call this display the itinerary price; the computer
prices the itinerary by showing a breakdown of the base fare,
tax, and total selling price amounts.
You’ll learn more about the computer system in a study unit
later in your program. However, in this study unit on ticket-
ing, we’ll introduce you to reading itinerary price displays as
they appear on your computer screen, because that’s what
you refer to when completing an airline ticket. All the infor-
mation you need is on your screen; all you have to do is copy
it, in the correct format, onto the airline ticket.
For all the ticketing exercises in this study unit, we provide
the passenger record and itinerary price display as they
would appear on a travel agent’s computer screen.
Remember that each one will look different, depending on
the individual flight information.
So let’s get ready to learn a little about reading passenger
name records and itinerary price displays. Later in this study
unit, you’ll apply what you know when you learn how to
write airline tickets and other documents.
Price Displays For One Way

Figure 12 shows part of a passenger name record and the
itinerary price for your client Mr. Robert Smith. He is travel-
ing one way, on a direct flight from Chicago O’Hare to
Denver. Read the explanation provided for each line on the
display in Figure 12.
FIGURE 12—Mr. Smith’s

1 ➙ SMITH/ROBERT MR PNR and Itinerary Price
Display
2 ➙ 1UA 411F 26MAY Q ORDDEN HK1 630A 759A
BASE FARE TAXES TOTAL
3 ➙ 1- USD469.77 44.13XT 513.90ADT
4 ➙ XT 35.23 US 3.40ZP 2.50 AY 3.00XF
5 ➙ 469.77 44.13 513.90TTL
6 ➙ ADT-01 F
7 ➙ CHI UA DEN Q4.65 465.12F 469.77 END ZPORD3.40
XFORD3 2.50AY

Explanation by Line Number
1 Passenger name(s). The first line of the PNR display
shows the passenger name. The PNR can contain two or
more passengers. The name is displayed this way: last name,
slash, first name, and title. Our passenger is Mr. Robert
Smith.
2 Flight itinerary segment. This shows all of the neces-
sary information regarding each separate flight of the
reservation. The breakdown of the flight segment is
1 Flight segment number 1 (each flight segment
is numbered)
UA Airline code (United Airlines)
411 Flight number
F Class of service (first class)
26MAY Departure date
Q Day of the week indicator (M = Monday,
T = Tuesday, W = Wednesday, Q= Thursday,
F = Friday, J = Saturday, and S = Sunday)
ORDDEN From/to cities in code (flight is from Chicago
O’Hare [ORD] to Denver [DEN])
HK1 Status of flight and number of seats confirmed.
HK1 means holding one confirmed seat.
630A 759A Departure time (CST) and arrival time (MST)
3 Base fare, tax, and total selling fare for one passenger.
1- Fare that follows is for one (1) passenger
USD Currency of fare shown: USD = U.S. dollars
469.77 The base fare plus any applicable fuel
surcharges
44.13 Total tax amount (all applicable taxes included:
U.S. transportation tax, segment tax, and
passenger facility charge)
XT Code that means combined tax amount
513.90 Total selling fare (base fare plus combined tax)
ADT Passenger type code: ADT = adult passenger.

4 Tax breakdown line. This line shows the combined tax
amount (XT) broken down and identified into the individual
tax amounts.
35.23US Amount of U.S. transportation tax (US is tax
code)
3.40ZP Amount of segment tax (ZP is tax code)
2.50AY Amount of U.S. security services fee (AY is tax
code)
3.00XF Amount of passenger facility charge (XF is tax
code)
5 Total base, tax, and selling fare amounts for all pas-
sengers in record. If two passengers were traveling together
and booked together the base, tax, and total amounts on this
line would be the price for both passengers. In our example
the record is for one passenger, so these totals are for one
passenger only and match the totals from line 3.
6 Beginning of fare calculation breakdown section
(ADT-01 F).
ADT Passenger type (ADT = adult passenger)
01 Number of passengers in record
F Fare-basis code on ticket
7 Fare breakdown line. Figure 13 shows the base fare for
each fare segment on the itinerary with city and airline
codes. The breakdown is always for one passenger.
CHI UA DEN Q4.65 465.12 F 469.77 END ZPORD3.40 XFORD3 2.50AY

↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕
From Airline To Fuel Base Fare-Basis Total Base End of Applicable Applicable Applicable
City City Surcharge Fare code Fare and Itinerary ZP Tax XF Tax AY Tax
Applicable for for for
Fuel Surcharges ORD ORD ORD
FIGURE 13—Mr. Smith’s Fare Breakdown Line
The base fare and applicable fuel surcharge for each segment
of the itinerary is entered immediately after the city pair to
which it applies. In the above example, the passenger is fly-
ing from Chicago (CHI) on United (UA) to Denver (DEN). Any

fuel surcharge and base fare that apply for this city pair will
be listed immediately following the city pair. Since a fuel
surcharge applies from Chicago, this is listed first. A fuel
surcharge in the amount of $4.65 applies from Chicago.
Remember, a fuel surcharge is preceded by the letter Q for
identification. The base fare (without tax) that applies from
Chicago to Denver is listed next. The base fare from Chicago
to Denver is $465.12, first class.
Any applicable segment tax (ZP) and/or PFC tax (XF) are list-
ed at the end. Each tax is shown with the tax code, followed
by the airport code from which it applies (in the case, ORD),
and the amount ($3.40).
Specific airport codes are shown in the flight reservation section of

the display. In our example, the code ORD for Chicago O’Hare
Airport is listed rather than the city code of CHI. This tells you that
the flight departs Chicago O’Hare airport.
However, city codes are listed in the fare calculation line. Why?
Because air fares are priced city to city. For example, a first class
fare on United Airlines from Los Angeles to New York Kennedy
Airport is the same as a first class fare on United Airlines from Los
Angeles to New York La Guardia Airport.
Price Displays with Connecting Flights

Here’s an example of how a connecting flight is displayed
when pricing. Remember, a fare is never charged to or from a
connecting city; the through fare is charged between two
stopover cities. Our passenger, Mrs. Johanna Anderson, is
on a USAir on-line connection. Pay special attention to the
fare calculation breakdown line, which is the bottom line in
Figure 14.
FIGURE 14—Mrs. Anderson’s ANDERSON/JOHANNA MRS

PNR and Itinerary Price
Display 1US 411Y 12JUN T LAXPIT HK1 7:30A 3:00P
2US 224Y 12JUN T PITBWI HK1 4:10P 5:13P
1- USD744.19USD 67.61XT 811.80ADT
XT 55.81US 6.80ZP 5.00AY
Y744.19 67.61 811.80TTL
ADT-01
LAX US X/PIT US BWI 744.19Y 744.19 END ZPLAX3.40PIT3.40
5.00AY

Here’s the fare calculation breakdown line repeated:
LAX US X/PIT US BWI 744.19Y 744.19 END ZPLAX3.40PIT3.40 5.00AY
↕ ↕
X in front of a The through fare from
code means LAX to BWI is charged;
connecting the fare follows right after BWI.
Notice that the connecting-city code PIT has an X in front of

it; that identifies a connecting city. Is a fare charged to or
from Pittsburgh? No, since it’s a connecting city, there’s no
fare charged. Notice that no base fare follows Pittsburgh in
the fare calculation line.
The through fare is charged from Los Angeles to Baltimore.
Since the fare is charged to Baltimore, the base fare of
744.19 immediately follows the city code for Baltimore or
BWI.
This ticket also includes two segment taxes in the amount
of $3.40, and two service taxes, each costing $2.50
(ZPLAX3.40PIT3.40). From which city does each apply?
That’s right, LAX (Los Angeles) and PIT (Pittsburgh).
Price Displays For Round-Trip and

Circle-Trip Routings
Passenger James Peterson is on a round-trip route from New
York La Guardia to Daytona Beach, Florida. He is departing
on November 22, which is a Thursday (midweek travel day),
and returning on December 2, which is a Sunday (weekend
travel day). Refer to the price display in Figure 15, and read
the explanation that follows. Pay special attention to the fare
calculation breakdown line, which is the third line from the
bottom.
This itinerary has a split-fare basis. This means that one fare
amount is charged one way, and a different fare amount is
charged on the return.
Take a look at the top lines of the itinerary price display. What’s
the round-trip base fare including any applicable fuel surcharge?
It’s $552.56. The total combined tax on this ticket is in the
amount of $53.74. What’s the total selling price? It’s $606.30,
which includes the base fare, fuel surcharge, and all taxes.

PETERSON/JAMES MR
1DL 563V 22NOV Q HK1 LGADAB 4:00P 835P
2DL 662V 02DEC S HK1 DABLGA 1045A 1:15P

1- USD552.56USD 53.74XT 606.30ADT
XT 41.44US 6.80ZP 2.50AY 3.00XF
552.56 53.74 606.30TTL
ADT-01 VXE7NR/VWE7NR
NYC DL DAB 260.47VXE7NR DL NYC Q1.86 290.23VWE7NR 552.56 END

ZPLGA3.40DAB3.40 XFDAB3
FIGURE 15—Mr. Peterson’s PNR and Itinerary Price Display
Let’s take a look at the fare calculation breakdown lines at
the bottom of the display.
The first line of the fare calculation, ADT-01 VXE7NR/
VWE7NR, means that the ticket is based on one adult (ADT)
passenger. This line also tells us that two different fare-basis
codes apply. Each fare-basis code is separated with a slash
symbol (/). The fare basis used for the first fare segment is
VXE7NR; the fare basis used for the second or return fare
segment is VWE7NR.
Now let’s take a closer look at the fare calculation breakdown
lines in Figure 16.
The first fare segment from New York to Daytona Beach is
based on the VXE7NR fare. The fare is in the amount of
$260.47. Do you remember how to read a fare-basis code?
The X in the fare-basis code means that travel is valid during
midweek. Since he is traveling from New York to Daytona
NYC DL DAB 260.47 VXE7NR DL NYC Q1.86 290.23 VWE7NR 552.56 END
↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕
From Carrier To Base Fare Fare-Basis Second To Fuel Base Fare Fare Total Base
City Code City (NYC-DAB) Code (First Carrier City Surcharge (Second Basis for Fare and
Segment: (for Second (Applies to Segment: Second END of
NYC-DAB) Flight City Listed DAB-NYC) Segment Itinerar y
Segment) Before—
DAB)
First Fare segment: NYC–DL–DAB Second Fare Segment: DAB–DL–NYC
FIGURE 16—Mr. Peterson’s Fare Calculation Breakdown Lines

Beach on November 22, which is a Thursday, this fare is
based on midweek travel.
The second or return fare segment from Daytona Beach to
New York is based on the VWE7NR fare. The fuel surcharge
that applies from Daytona Beach is $1.86. The base fare is in
the amount of $290.23. The W in the fare-basis code means
that travel is valid during weekends. Since the passenger is
traveling on December 2, which is a Sunday, this fare is
based on weekend travel. Many discounted fares are more
expensive if you travel on the weekend.
The base fare, including applicable fuel surcharge, is $552.56.
The continuation of the fare breakdown line displays the
applicable segment tax (ZPLGA3.40), which is $3.40, and the
passenger facility charge (XFDAB3), which is $3.00.
Self-Check 2
1–7: For the passenger itinerary and price display below, answer the questions by filling in the
blanks.
BLACKWELL/JAMES DR
1DL 1106Y 11MAR S MCOCVG HK1 7:45A 9:50A

1- USD234.42USD 23.48XT 257.90ADT
XT 17.58US 3.40ZP 2.50AY
234.42 23.48 257.90TTL
ADT-01 YN
ORL DL CVG Q1.86 232.56YN 234.42 END ZPMCO3.40
1. This itinerary is for _______ adult passenger.
2. The passenger is on a one-way flight on _______. The flight number is ________.
3. The passenger is traveling in (first, business, coach) class.

(Continued)

Self-Check 2
4. The flight is from the city of Orlando to the city of _______. The specific airport of departure
in Orlando has a code of _______, which is Orlando International Airport.
5. The departure time is _______, and the arrival time is _______.
6. The fare-basis code for this fare is _______. This means that the passenger is paying for a
coach class, off-peak fare.
7. The last entry on the fare calculation line shows any applicable PFC or segment taxes.
There’s one segment tax that applies from the departure city of _______ in the amount of
_______.
8–11: For the passenger itinerary and price display below, answer the questions by filling in the
blanks.
NEILL/JUDITH MS
1TW 235Y 10AUG F SDFSTL HK1 7:35A 8:00A
2TW 169Y 10AUG F STLPHX HK1 9:00A 1135A

1- USD595.35USD 56.95XT 652.30ADT
XT 44.65US 6.80ZP 2.50AY 3.00XF
595.35 56.95 652.30TTL
ADT-01 Y
SDF TW XSTL TW PHX 595.35Y 595.35 END ZPSDF3.40STL3.40 XFSDF3
8. The base fare in the amount of _______ is charged from the city of _______ through to the
city of _______. A fare isn’t charged to or from the connecting city.
9. The total combined tax on this ticket is _______.
10. The total tax is a combination of four different types of taxes. The U.S. transportation tax is in
the amount of _______. The segment tax is in the amount of _______. The U.S. Security
Services tax is in the amount of _______. The PFC is in the amount of _______.
11. The total selling price of this ticket is _______.

(Continued)

Self-Check 2
12–21: For the passenger itinerary and price display below, answer the questions by filling in
the blanks.
SUMMER/HOLLY MISS
1CO 1720F 13APR F SLCIAH HK1 815A 1206P
2UA 1091Y 17APR T IAHDEN HK1 605A 725A
3UA 2451Y 17APR T DENSLC HK1 810A 937A

1- USD1172.09 104.11XT 1276.20ADT
XT 87.91US 10.20ZP 6.00XF 1276.20
ADT-01 F/Y 104.11 1275.20TTL

SLC CO HOU 753.49F UA X/DEN UA SLC 418.60Y 1172.09 END
ZP SLC3.40IAH3.40DEN3.40 XF SLC3DEN3
12. Passenger Holly Summer is traveling from the origin city of _______ to her destination city of
_______.
13. The first segment is a direct flight. The date of travel is _______, which is on a _______
(enter the day of the week).
14. The return from Houston back to Salt Lake City is a connection on _______ Airlines. This
flight departs on _______ (enter date), which falls on a _______.
15. The first flight of the connection is on United Airlines flight number _______. This flight
departs Houston at _______ and arrives in the connecting city of _______ at 7:25 A.M.
16. The second flight of the connection is on United Airlines flight number _______. This flight
departs at _______ (time) and arrives at Salt Lake City at _______.
17. The round-trip base fare for the entire ticket is _______.
18. The combined tax for the entire ticket is _______.
19. The total selling price for the entire ticket is _______.
20. The first fare segment is for the direct flight from Salt Lake City to the city of _______. A first-
class fare in the amount of _______ is charged for this flight segment.
21. The second fare segment is the through fare from _______ to _______ in the amount of
_______.
22. The combined tax is divided into three types of taxes. The U.S. transportation tax is _______;
the total segment tax is _______; the total PFC is _______.

AIRLINE TICKETS
Ticket Forms
The Airlines Reporting Corporation (ARC) issues standard
ticketing stock to travel agencies for ticketing airline passen-
gers. This type of stock is called universal ticket stock, since
the tickets are used for transportation on most airlines.
Universal ticket stock can be divided into two major cate-
gories: accountable and nonaccountable.
Accountable ticket forms Accountable ticket forms are tracked by the ARC from the
are ticket forms identi- time they’re issued to an agency to the time they’re used by
fied by a unique form the passenger. Travel agencies are responsible for all of their
and serial number that
accountable ticket documents. Accountable tickets should be
are tracked by the ARC
from the time they’re viewed as cash or blank money orders, and appropriate
issued to an agency to security measures are required by a travel agency.
the time they’re used by
the passenger. If the travel agent makes a mistake when completing an
accountable document, it must be voided and reported to the
airline on the weekly sales report, which is discussed later in
this unit.
When the ARC distributes a supply of accountable tickets to
an agency, each document has a unique number. The ticket
number usually appears in the upper right-hand corner on
the front cover of the ticket on handwritten stock. It consists
of 10 digits. The first seven numbers are called the form
number, and the last three numbers are called the serial
number (Figure 17).
8428 170 040

Form Number Serial Number
↕ ↕
The first seven digits are the form The last three digits are the serial
number, which identifies the type number. The serial number
of document. makes each ticket a unique and
identifiable ticket.
FIGURE 17—Accountable Ticket Form Number and Serial

Number—See the actual ticket in Figure 19.

There are three major types of accountable ticket documents
issued by the ARC to travel agencies:
• Standard airline tickets
• Automated/ticket boarding pass
• Prepaid ticket advice
Standard Airline Tickets

Standard airline tickets are called four-coupon documents,
since each one is valid for a maximum of four flight seg-
ments. All the information that appears on the standard air-
line ticket is entered manually. Each is a ticket booklet that
consists of a number of separate coupons. The booklet is
designed so that appropriate entries that are made on the
top coupon will copy onto each coupon. A sample standard
airline ticket is shown in Figure 18.
Automated Ticket/Boarding Pass (ATB)

The automated ticket/boarding pass (ATB) is the form used
when generating tickets through the computer (Figure 19).
The ATB serves two functions: the left half of the document
is the airline ticket, and is used to identify a seat assign-
ment. The right half of the document is the passenger’s
boarding pass. However, due to increased airport security,
many airlines require their passengers to present a photo
I.D. upon check-in at the airport to receive their boarding
passes. In other words, the right-hand side of the ATB might
not be sufficient to board the aircraft.
The ATB is a coupon-by-coupon ticket in which each coupon
is imprinted individually by the computer. The information
that appears on the ATB isn’t entered by hand, but through
the entries you make when creating a reservation and gener-
ating a ticket with your computer and printer.

FIGURE 18—Standard Airline Ticket
FIGURE 19—Automated Ticket/Boarding Pass

Prepaid Ticket Advice (PTA)
Prepaid ticket advice (PTA) forms are used to issue airline
tickets at a location other than the location of payment. See
Figure 20 to see a blank PTA. Consider the following example.
Mrs. Smith pays for an airline ticket for her son Jimmy to fly
home from Miami to Cleveland. Mrs. Smith pays for the tick-
et through her travel agency, which is located in Cleveland,
Ohio. Jimmy then picks up the ticket at Miami Airport.
FIGURE 20—Prepaid Ticket Advice Form

Miscellaneous Charges Order (MCO)
The miscellaneous charges order (MCO) is an ARC document
that’s used to process a variety of air and land services. For
example, travel agents can issue an automated MCO for
deposits or final payments on land packages, car rentals,
hotel accommodations, cruises, services fees, or for residual
value of a ticket exchange.
Tour Order
Tour orders are used strictly for air tours authorized by the
individual ARC airline participants. They’re also automated,
just like MCOs, however, they’re used to process final pay-
ments for land, rail, or air/sea packages.
Refund/Exchange Notice (REN)

A refund/exchange notice (REN) is a nonaccountable ticket
document. Nonaccountable forms can be thrown away if a
mistake is made on them. Although some nonaccountable
forms may be assigned ticket numbers, agencies aren’t
required to account for these documents. Nonaccountable
documents can’t be used for transportation or other services
and have no monetary value. They’re used as support
material for certain administrative procedures such as ticket
refunds and exchanges (Figure 21).
The REN is used for two types of transactions: ticket refunds
and ticket exchanges. A ticket refund is when a passenger
returns his or her ticket or part of a ticket for a refund. For
refunds, the REN document is used as a support document
to show information such as the refunded ticket number and
the amount of refund due back to the customer.
A nonaccountable ticket
document from the ARC The REN is also used for a ticket exchange transaction. A
that’s used to record ticket exchange occurs when the passenger returns an old
airline ticket refund and and unused ticket for a new ticket. For example, Miss Garcia
ticket exchange transac-
tions is known as a purchased a one-way ticket from Minneapolis to Salt Lake
refund/exchange notice City. She paid $600.00 for this ticket. About one week before
or REN. her departure she had to change her departure date, which
resulted in a higher fare of $700.00. She returns the original
ticket to the travel agent in exchange for a new one. She also

pays an additional $100 for the new ticket. For ticket
exchanges, the REN document is used as a support docu-
ment to show such information as the old and new ticket
numbers, and the additional amount collected from the
passenger.
FIGURE 21—Refund/Exchange Notice

Parts of a Ticket
The standard manual ticket is in the form of a booklet that
consists of several coupons. Each coupon is carbonized so
that the travel agent prints on the first or top coupon and all
entries are imprinted automatically on each succeeding
coupon.
The major portion of the standard ticket booklet is comprised
of a front cover plus the following four parts:
• Auditor’s coupon
• Agent’s coupon
• Flight coupons
• Passenger’s coupon
The purpose and distribution of each part of the ticket are
shown in Figure 22.
Remember:
One Flight Coupon = One Flight Segment
A standard airline ticket contains a maximum of four flight
coupons. Each is numbered: flight coupon 1, coupon 2,
coupon 3, and coupon 4. One flight coupon covers one flight
segment; each time the passenger boards a plane with a dif-
ferent flight number, a separate coupon is required to board
the aircraft. For a direct, or nonstop, flight (no change of
plane and flight number), one coupon is required. For a con-
nection two coupons are required; one for each flight segment.

Coupon Par t C o lo r L o c a t io n D is t rib u t io n
A u d i to r s c o u p o n G r een F i rs t o r to p c o u p o n S e n d to A R C o n th e w e e k l y s a l e s r e p o r t.
A g e n t s c o u p o n P ink S econd coupon K eep in agencys file.
Flight coupons M u l ti c o l o r T h i r d , f o u r th , f i f th , a n d s i x th G i v e to p a s s e n g e r to b e u s e d i n e x c h a n g e f o r
coupons f l i g h ts / s e r v i c e s .
P a s s e n g e r s c o u p o n W h i te L a s t o r s e v e n th c o u p o n G i v e to p a s s e n g e r to u s e f o r p e rs o n a l r e c o r d o r
r e c e i p t ( p a s s e n g e r s c o u p o n i s n o t v a l i d f o r
tra n s p o r ta ti o n ) .
FIGURE 22—Portions of a Standard Ticket Booklet

Validating an Airline Ticket
Each manual ticket issued by a travel agent must be
validated to make it negotiable or valid. Each ticket must
show three data items to be validated:
• The date of issue
• The travel agency identification
• The airline identification
Figure 23 shows the three items needed to validate any ticket
document, which are the following:
• Airline identification plate
• Agency identification plate
• Ticket imprinter
GLOBE TRAVEL
184 ELM ST.
CHICAGO, IL
66 66645 5
AGENCY IDENTIFICATION PLATE

property of SOUTHWEST AIRLINES
SOUTHWEST AIRLINES
526
526
AIRLINE IDENTIFICATION PLATE
FIGURE 23—An Imprinter, Airline Identification Plate, and Agency Identification Plate
Airline Identification Plate

When a travel agency becomes approved by ARC to sell
airline tickets, an agency needs to contact carriers for an
airline plate. Since e-ticketing is at about 90%, it is very rare
you’ll need an airline plane. Once you’ve been approved by
ARC, and those carriers have signed the right of general
concurrence, you’ll be able to sell transportation on those
ARC member airlines.

Each airline identification plate is made of heavy metal and
isn’t easily breakable. The airline’s logo, name, and three-
digit code, used for accounting purposes, are shown in
raised lettering on the face of the plate.
Agent Identification Plate

The ARC provides an agent identification plate to each agency
location on its list of approved offices. Like the airline plate,
the agent plate is made of heavy metal and has the agency’s
name, city and state location, and eight-digit identification
number printed in raised lettering. The agency plate identi-
fies the issuing source of the ticket.
Ticket Imprinter
A ticket imprinter is a machine used to validate tickets. It
provides slots for the airline and agency identification plates.
It also has a continental dater. The dater prints the day of
the month, the three-letter abbreviation of the month, and
the two-digit code for the year in the appropriate ticket
boxes. The ticket imprinter must be set to the current date
at the beginning of each workday.
In order to validate a ticket, the agency identification plate
and airline identification plate are inserted in the appropriate
slots on the platform of the imprinter. The ticket document is
then placed over the platform area. The travel agent pushes
a pressure bar over the ticket form, then back again to its
original position. As a result, the current date, the agency
identification, and airline identification are imprinted auto-
matically on each coupon of the ticket. When this occurs the
ticket has become validated.
ARC’s Area Settlement Plan

The traveler has two options when buying an airline ticket.
He or she can book and pay for the ticket directly with the
airline or through a travel agency. So, how does the airline
receive its money if the passenger pays the travel agency
directly for it? The ARC has established a reporting procedure
called the ARC Area Settlement Plan to simplify the distribution

of earned monies from all travel agency ticket sales to each
airline providing transportation.
Travel agencies are required to submit a weekly ticket sales
report to ARC. The report is usually compiled and completed
either by a designated travel agent in the office or the
agency’s bookkeeper. This report includes a list of all ARC
accountable tickets that were sold during the previous busi-
ness week, from Monday through Sunday. ARC agents will
submit their Interactive Agent Report (IAR) by the Tuesday
submission deadline, 11:59 p.m. Eastern Standard Time.
IAR is a completely electronic web-based reporting tool that
will identify tickets that are in error and it will calculate the
agent’s net remit. If the net remit is a positive value, the
agent owes money to the carrier. However, if the net remit for
the agent’s report is negative, then the agent will be due
money back from ARC.
The sales report includes the following information for ARC:
1. All e-tickets, ATB, 4-flight, PTAs, tour orders, refunds,
exchanges, service fees, credit and debit memos, and
recall commission statements.
2. A copy of each airline ticket listed on the report as sup-
port documentation. Each accountable ticket document
is in booklet form and consists of several coupons
(except for automated ticket stock). The ticket is car-
bonized and all entries are printed on the top coupon,
called the “auditor’s coupon.” After the travel agent com-
pletes the ticket, the top (auditor’s) coupon is ripped off,
stored in the agency files, and sent along with the next
week’s sales report.
To illustrate the sales report process, refer to the simplified
diagram in Figure 24 and the step-by-step procedure that
follows.
Step 1: Travelers pay the travel agency for airline tickets.
(Example: ABC Agency collected a total of $10,000
in cash sales for all airline tickets sold the previous
business week.)
Step 2: The travel agency deposits the total of its airline
ticket cash sales ($10,000) into its bank account.

Step 3: At the end of the business week, the travel agency
prepares the electronic sales report and submits it
to the ARC area bank. In our example, the sales
report shows the total cash sale of $10,000; it also
shows a total of $2,000 earned agency commission.
Note that the $2,000 commission is on the total
sales (both $10,000 cash sales, plus $10,000 credit
sales).
Step 4: The ARC’s area bank has the legal authority to
withdraw the total amount due to the airlines from
the agency’s bank account: total cash minus the
agency commission. In our example, the ARC with-
draws $8,000 ($10,000 minus $2,000).
Step 5: The designated ARC bank sends money to each
appropriate airline.
FIGURE 24—Simplified Sales Report (From Practical Guide to Fares and Ticketing, 2nd
edition, by J. Semer-Purzycki. © 1994. Reprinted with permission of Delmar Publishers, a division
of Thomson Learning. Fax 800-730-2215.)

Run Out of Coupons?
A standard ticket allows up to four flight segments. When more than four
flight coupons are required, you may issue two or more ticket booklets in
conjunction with one another to provide the required number of flight
coupons. This is called conjunction ticketing.
Self-Check 3
1–5: Match the description to the correct type of ticket document.
_____ 1. This document is used to record a. standard airline ticket
payments for land, rail, or air/sea
packages. b. ATB
_____ 2. This is used when a person pays
for a ticket through his or her local c. miscellaneous charges
travel agency, but the ticket is issued order
to another traveler at the airport.
d. tour order
_____ 3. This document has a variety of uses,
such as car rental payments, and e. prepaid ticket advice
deposits for cruises and other travel-
related services.
_____ 4. This document can be used for up to
four flight or rail segments.
_____ 5. This is a computer-generated document
that combines both an airline ticket and
boarding pass.
(Continued)

Self-Check 3
6–10: Fill in the correct answer.
6. The nonaccountable ticket document that’s used for ticket refund and ticket exchange trans-
actions is called a _______.
7. Tickets used by travel agencies are called “universal ticket stock” because _______.
8. The _______ is the organization that issues and distributes ticket stock to travel agencies.
9. The first seven digits of a ticket number are called the _______ number and are used to
identify what type of ticket it is.
10. The last three digits of a ticket number are called the _______ number and are used to
uniquely identify each separate ticket document.
COMPLETING AIRLINE TICKETS BY

HAND
Rules of the Road

Before we begin this section on handwriting airline tickets,
we should review some of the important do’s and don’ts.
First, it’s a good idea to establish a procedure or checklist for
completing tickets. By following the same basic procedures
for each ticketing situation, you’ll be sure to remember all
the necessary steps to take. Follow the important do’s and
don’ts found in Figure 25 when completing manual airline
tickets.

FIGURE 25—Ticketing Do’s
and Don’ts TICKETING DO’S AND DON’TS
✔ Use a fine ballpoint pen to make entries; never use pencil!
✔ Write the airline ticket with black or blue ink; don’t use
other colors.
✔ Print all information and use block letters LIKE THIS.
✔ Bear down hard when printing on the ticket; all information

must be clearly legible on all coupons of the ticket.
✔ Neatness counts; everything should be clear and legible

since the ticket you issue must be read by the passenger
and airline agents during the trip.
✔ Spelling counts; there’s no excuse for one misspelled word

or name. Look up city and airport spellings and always
spell the passenger’s name correctly!
✔ If you make a mistake on an airline ticket, don’t cross it

out or try to erase it. You must write the word VOID across
the ticket and return it to ARC on the agency’s next sales
report.
Ticket Breakdown Reference

Although the majority of tickets are completed electronically,
Figure 26 is a reference guide to follow when completing
airline tickets by hand. Refer to this guide as a resource
throughout the rest of this study unit.
FIGURE 26—Ticket Breakdown Reference

TICKET BREAKDOWN REFERENCE
Validation Sections
1 Validation Today’s Date DATE OF ISSUE

Imprint 18SEP07
2 Validation Agency PLACE OF ISSUE-AGENCY ID

Identification SUNSHINE TRAVEL
Imprint MIAMI FL
00 123456
3 Validation Airline PASSENGER TICKET & BAGGAGE CHECK—ISSUED BY

Identification UNITED AIRLINES 016
Plate
Passenger and Itinerary Section

4 Enter the passenger’s surname (last name) followed
by a slash and the full first name. The title is optional NAME OF PASSENGER
(Mr., Ms., Miss, Mrs., Dr., and so on). PIERSON/DAVID MR
5 Enter the passenger’s itinerary. Write out full city
names. If a city shares its name with another, enter Fr om
the state abbreviation. If the ticket includes more NEW YORK KENNEDY
coupons than required, enter “VOID” in each unused To
box. O P O R TLA N D O R
6 If no stopover is allowed (i.e., no fare is charged and To
the city is a connection), enter an “X” in the “X/O” col- X C H IC A G O O H A R E
umn preceding the city name. If a stopover is allowed To
(that is, a fare is charged to the city), enter an “O” pre- NEW YORK KENNEDY
ceding the city name. Do not make any entry in front of
To
the origin and final destination
V O I D
cities on the itinerary.
FIGURE 26—Continued

Flight Reservation Data
C A R R IE R F L IG H T / C LA S S DATE T IM E STATUS FARE BASIS A LLO W
14
UA 664 Y 810A OK YXE7
JU N
7 Enter the two-letter code of the airline.
8 Enter the flight number followed by the applicable class of service.
9 Enter the scheduled date of departure; enter two-digit date placed over the three-letter
abbreviation of the month.
10 Enter local departure time.
11 Enter reservation status code:
OK = confirmed reservation
RQ = on request or waitlisted
12 Enter the full fare-basis code for the fare being charged.
13 Enter free baggage allowance (optional entry for domestic airline tickets).
Fare Ladder Section
14 Enter the three-letter city codes
of all ticketed points of travel on From/To
the ticket (include all ticketed NYC CARRIER

FARE
CALCULATION
points of travel that appear PDX UA 407.44
under the from/to itinerary sec-
CHI UA
tion: origin, all stopovers, con-
necting cities, and final destina- NYC UA 407.44
tion). CHI Q 4.65
15 Enter the two-letter airline code. ZP JFK3.40
16 Enter the base fare (without tax) PDX3.40

across from the city to which ORD3.40
each fare is based; no fare is Comm Fare
XF PDX3
placed across from a connecting Rate 819.53
city. If applicable, identify each FORM OF PAYMENT
CHECK
additional charge separately in
this order: fuel surcharge, segment tax, passenger facility charge. Draw a heavy line between
the base fares and tax breakdown entries (for
ZP and XF).
17 Add all the base fares and applicable fuel surcharges and enter the amount. Do not include
any taxes in this box.

Selling Fare Boxes
18 Fare box: Enter base fare (include base fares Fare Tax Tax
plus applicable fuel surcharge amounts). This 819.53 US 61.47 AY 7.50
amount is equal to the fare box as shown in
Equiv. Fare Pd. Tax Total
item 17.
ZP 10.20
19 Tax boxes: In each tax box enter the total for Tax
each type of tax that applies. Precede each XF 3.00 901.70
amount with the appropriate two-letter tax
code. Recommended sequence:
(1) U.S. transportation tax (code: US)
(2) segment tax (code: ZP)
(3) passenger facility charge (code: XF)
(4) security fee (code: AY)
20 Total box: Selling price of the ticket.
Sum of fare plus all tax boxes.
21 Equivalent Amt. Paid box is completed for
certain international tickets. Leave blank.
Form of Payment & Commission Rate
FORM OF PAYMENT
22 Form of Payment: Enter appropriate form of payment. If by AX 0000 123456789
cash or check, enter “CHECK.” If payment is by credit/
charge card, enter two-letter code of card followed by
FORM OF PAYMENT
account number. Some common credit card codes are
CHECK
AX—American Express DC—Diners Club
CA—MasterCard DS—Discover Card
CB—Carte Blanche VI—Visa
23 Comm. Rate: Enter the rate of commission if it’s a percentage. COMM. RATE
If a dollar amount (that is, a commission cap amount) applies, 5
leave the commission box blank.

Final Commission and Tax
24 Final Commission Box: Remember the commission cap
policy for many of the domestic airlines? It’s 5 percent of the base
COMMISSION TAX
fare, not to exceed a maximum of $25.00 for one-way and
16.08 34.45
$50.00 for round-trip tickets. If the commission doesn’t exceed
the commission cap, multiply the base fare (without tax) by the
percent amount. Enter this amount in the final commission box.
For example, if the base fare is $321.58, the commission is
$25.73 ($321.58 X 5%).
If 5 percent is higher than $25.00 or $50.00 for one-way or
COMMISSION TAX
round-trip tickets respectively, enter the commission cap amount
50.00 61.47
in the final commission box.
25 Final Tax Box: Show all taxes combined as one amount.
26 Origin/Destination: Enter the origin and final destination codes only ORIGIN/DESTINATION
for conjunction tickets (two or more tickets issued for long itiner- NYC/NYC
aries) and ticket exchange transactions. Otherwise, leave blank.
27 Booking Reference: Enter the Record Locator Number for the pas- BOOKING REFERENCE
senger’s reservation record in the computer (if not known, leave HJ145T
blank).
28 Conjunction Tickets: Only completed for conjunction tickets
(two or more tickets issued for itineraries with more than four CONJUNCTION TICKET(S)
segments). Enter serial number(s) of all tickets issued to cover 042/043
passenger’s complete itinerary. Otherwise, leave blank.
29 Issued in Exchange: Complete only for ticket exchange transactions: enter new ticket num-
ber. Otherwise, leave blank.
ISSUED IN EXCHANGE FOR
30 Original Issue: Complete only for ticket exchanges: enter all 006 8411 334 178
data regarding original ticket. Otherwise, leave blank.
31 Ticket Designator: Complete this box only if ORIGINAL
a passenger-type discount applies to the ISSUE 006 8411334178 CHI 10SEP 00123456
entire ticket. Examples: CH for child dis-
count, CD for senior citizen, AD for agent discount. Otherwise, leave
TICKET DESIGNATOR
blank.
AD75

32 Tour Code: Enter the official tour code for an air tour. Otherwise,
TOUR CODE
leave blank.
IT 123456B
33 Validity boxes: These boxes are completed for discounted round-
trip fares that have minimum and/or maximum stay restrictions.
• “Coupons Not Valid Before”: enter the earliest permitted COUPONS NOT VALID BEFORE
date of return (minimum stay restriction) in the coupon 1 2 3 10SEP 4

box number that corresponds with the return flight(s) only.
COUPONS NOT VALID AFTER
• “Coupons Not Valid After”: enter the latest permitted
1 2 3 10OCT 4
date of return (maximum stay restrictions) in the coupon
box number that corresponds with the return flight(s) only.
34 Endorsements/Restrictions: Enter any type of
ENDORSEMENTS/RESTRICTIONS
information not shown elsewhere on the ticket. A
NONREFUNDABLE/RESERVATION
common entry is for nonrefundable fares and
CHANGES SUBJECT TO FEE
change penalty restrictions.
Completed Ticket Example

Now, let’s look at a completed ticket example. Our client, Remember, a circle trip
Beverly Lawton, is booked on a circle trip. Refer to the pas- is a journey over a
continuous route that
senger record and itinerary price display below. She is on a returns to the same city
direct flight from Chicago to Las Vegas on American Airlines as the origin but doesn't
in Q class. She is returning on a United Airlines on-line qualify as a round trip;
a different routing,
connection through Denver, also in Q class. The fare is a
airline, and/or fare
nonrefundable excursion with the fare basis of QLWEN. amounts are charged
for each segment of
Notice that even though she is traveling on two different air- travel. A circle trip
lines, all flights are entered on the same ticket. When you generally has two or
have different airlines on the same ticket, the general rule more stopover cities.
is to validate with the identification plate of the first major
airline participating in the itinerary. In this example, the ticket
is validated on American Airlines.
You’ll need three flight coupons for her ticket. Flight coupon
number 1 is valid from Chicago to Las Vegas (AA 557); flight
coupon number 2 is valid from Las Vegas to Denver (UA
2700); and flight coupon number 3 is valid from Denver to
Chicago (UA 652).
The completed ticket for Beverly Lawton is shown at the bot-
tom of Figure 27.

LAWTON/BEVERLY MISS
1AA 557Q 30NOV F ORDLAS HK1 405P 541P
2UA 2700Q 07DEC F LASDEN HK1 615A 900A
3UA 652Q 07DEC F DENORD HK1 930A 1244P
1- USD391.63 53.07XT 444.70ADT
XT 29.37US 10.20ZP 6.00XF 7.50AY
391.63 53.07 444.70TTL
ADT-01 QLWEN
CHI AA LAS Q4.65 193.49QLWEN UA X/DEN UA CHI 193.49QLWEN
391.63 END ZP ORD3.40LAS3.40DEN3.40 XF LAS3DEN3
FIGURE 27—Ms. Lawton’s Passenger Record and Itinerary Price Display and Completed Ticket
Some Key Points about the Ticket

Example
From/To Itinerary Boxes

Refer to Figure 28. List full names of each city on the rout-
ing, including connecting cities. For those cities served by
more than one major airport, add the airport name after the
city name: CHICAGO O’HARE.

FIGURE 28—From/To Itinerary
Fr om
Boxes
C H IC A G O O H A R E
To
O LA S VEG A S Under the X/O column,
enter an O in front of a
To
X DENVER
stopover city; the city that’s
charged a fare. Enter an X
To in front of a connecting city;
C H IC A G O O H A R E the city that isn’t charged a
To fare. Don’t make an entry in
V O I D front of the origin and final
destination cities.
Note: Don’t leave any box blank under the from/to column!
In our ticket example, only three of the four flight coupons
are needed. Print the word VOID in any unused spaces in
this section.
Fare Ladder
Refer to Figure 29. On the fare ladder section enter the fol-
lowing information in this sequence:
1. Breakdown of base fares
2. Applicable fuel surcharge(s)
3. Applicable segment tax and passenger facility charges
Breakdown of base fares.
• Under the “From/To” column: list all cities in city code;
include all cities in routing.
• Under the “Carrier” Column: enter the carrier code

across from the arrival city. For example: from CHI to
LAS, AA is entered across from the arrival city of LAS,
from LAS to DEN, UA is entered across from the arrival
city of DEN, and so on.

FIGURE 29—Fare Ladder Section From/To
FARE
CHI CARRIER
CALCULATION
LAS AA 193.49
DEN UA
CHI UA 193.49
CHI Q 4.65
ZP ORD3.40 AY 7.50
LAS3.40
DEN3.40
Comm Fare
XF LAS3 Rate –5– 391.63
DEN3
FORM OF PAYMENT
CHECK
• Under the “Fare Calculation” Column: Enter the base

fare for each fare segment (do not include any fuel
surcharges). Enter the base fare across from the city to
which it applies. The first fare segment is from CHI to
LAS; the base fare is entered across from LAS. The
second fare segment is the through fare from LAS to
CHI; enter the base fare across from CHI. Don’t enter
a fare across from a connecting city.
Fuel surcharges. After the base fares, enter applicable fuel

surcharge amount(s). Draw a line under the last city code in
the itinerary. For each fuel surcharge enter the following:
1. City code to which it applies
2. Letter code Q for surcharge
3. The dollar amount
Breakdown of taxes (ZP, AY and XF). The last entry on the
fare ladder is a breakdown of applicable ZP, AY, and XF tax
amounts, in that order.

• Segment tax (ZP): Enter the tax code ZP under the
from/to column. Under the fare calculation column,
write the airport code to which the tax applies followed
by the amount.
• Passenger facility charges (XF): Use the same format

as you did for the segment taxes. Enter the tax code
XF under the from/to column. Under the fare calcula-
tion column, write the airport code to which it applies
followed by the amount.
• U.S. Security Fee (AY): Enter the tax code AY and the
dollar amount.
Selling Fare Boxes

Refer to Figure 30.
FIGURE 30—Selling Fare

Fare Tax Tax
Boxes
391.63 US 29.37 AY 7.50
Equiv. Fare Pd. Tax Total
ZP 10.20
Tax
XF 6.00 444.70
• Fare box: Enter the sum of the base fares plus appli-
cable fuel surcharges. Don’t include any tax in this
box.
• Tax boxes: A ticket has four tax boxes in this section.

Enter each individual tax in a separate tax box.
Recommended sequence: (1) U.S. transportation tax;
(2) segment tax; (3) passenger facility charge; and (4)
U.S. Security Fee. Enter the two-letter tax code in front
of each tax amount for identification purposes. (If you
have more taxes than boxes, you can combine two or
more taxes together in one box. Enter the combined tax
code of XT in front of the total amount.)
• Total box: Enter the total selling price, which is the

sum of the fare box plus all tax amounts: fare + tax =
total selling price.

COMMISSION TAX Final Commission and Tax Boxes
19.58 44.37
The commission on this ticket is 5 percent of the base fare,
FIGURE 31—Commission or $19.58 ($391.63 × 5%). Enter the dollar amount in the
and Tax Boxes
final commission box (Figure 31). The total tax of $53.07 is
entered in the tax box.
Endorsements/Restrictions
This is a nonrefundable ticket. The fare also requires a fee
penalty for changes. This statement should be entered in this
box (Figure 32).
FIGURE 32—Endorsements/
E N D O R S E M E N T S / R E S T R IC T IO N S
Restrictions Box
N O N R EFU N D A B LE/C H A N G ES
S U B JE C T TO FE E
Self-Check 4
Complete an airline ticket for each PNR and itinerary price display below. In each case, the form
of payment is by check. Refer back to the ticket breakdown diagram and completed example for
help when needed.
1. This passenger is traveling round trip between Washington and Minneapolis/St. Paul. She is
traveling on a normal coach fare ticket.
PRYOR/PATRICIA MS
1NW 105Y 14NOV W DCAMSP HK1 830A 1010A
2NW 312Y 18NOV S MSPDCA HK1 620P 941P

1- USD318.14 41.16XT 359.30ADT
XT 23.86 US 6.80ZP 3.00XF 7.50AY
318.14 41.16 359.30TTL
ADT-01 Y
WAS NW MSP 159.07Y NW WAS 159.07Y 318.14 END
ZPDCA3.40MSP3.40 XFDCA3 AY7.50
(Continued)

Self-Check 4
Complete this airline ticket:
2. The fare is a nonrefundable discount with change penalties. Don’t forget to add this informa-
tion in the Endorsements/Restrictions box of the airline ticket!
CARR/LISA MRS
1US 259B 12JUN T LGAMCO HK1 1010A 1249P
2US 224B 19JUN T MCOLGA HK1 725A 10:06A

1- USD448.38 47.92XT 496.30ADT
XT 33.62US 6.80ZP AY7.50
448.38 47.92 496.30TTL
ADT-01 BXR7N
NYC US ORL 223.26BXR7N US NYC Q1.86 223.26BXR7N 448.38 END
ZP LGA3.4MCO3.4
(Continued)

Self-Check 4
3. This passenger is on a connection in both directions. He is also traveling on two different car-
riers and classes of service. He is traveling coach class to Richmond and in business class on
the return. He will pay for this ticket on his MasterCard. The credit card account number is
0000 123456789.
BALDWIN/ALEC MR
1DL 52Y 11MAY F PDXATL HK1 1235P 755P
2DL 160Y 11MAY F ATLRIC HK1 905P 1029P
3UA 791C 16MAY W RICORD HK1 700A 758A
4UA 159C 16MAY W ORDPDX HK1 945A 1148A

1- USD781.40 88.20XT 869.60ADT
XT 58.60US 13.60ZP 6.00XF AY10.00
781.40 88.20 869.60TTL
ADT-01 Y/C
PDX DL X/ATL DL RIC 302.33Y UA X/CHI UA PDX Q4.65 474.42C 781.40 END
ZPPDX3.40ATL3.40RIC3.40ORD3.40 XFATL3RIC3 AY10
(Continued)

Self-Check 4
PREPAID TICKET ADVICE

A prepaid ticket is another type of transaction that’s handled
frequently by travel agents. A prepaid ticket allows a person
to purchase an airline ticket through his or her local travel
agency and to have the ticket issued by the airline to the
passenger at a different location.
Here’s a typical example. You, the travel agent, get a call
from a client, Mrs. Thompson. Her daughter, Judy, is attend-
ing college in the Dallas/Ft. Worth area. Judy wants to fly
home, but she doesn’t have the money to pay for a ticket.
Mrs. Thompson wants to pay for Judy’s ticket through you,
her local travel agency, and have the ticket written and
issued to her daughter Judy at the Dallas Airport. The ticket
is already paid for, so all Judy has to do is to identify herself
at the ticket counter and pick up the prepaid ticket.

The Prepaid Ticket Advice (PTA)
There are two different documents that are involved when a
prepaid ticket is issued:
1. The airline ticket that will be issued by the airline at a
location other than the travel agency
2. The prepaid ticket advice (PTA) that’s completed by the
travel agent instead of the actual airline ticket. The PTA
is an accountable document (just like an airline ticket)
that’s issued by the Airlines Reporting Corporation. Like
an airline ticket, it has a form and serial number.
The PTA can also be used to record other funds related to air
travel and can be paid in advance by the purchaser. A typical
example is an additional charge to check in special baggage
such as skis or other equipment that requires an additional
fee.
The PTA by itself isn’t valid for actual boarding of the air-
craft. Since the travel agency has collected money for the air-
line ticket, the PTA document is issued in place of the actual
airline ticket and a copy given to the purchaser. The PTA
contains relevant information, including the passenger’s
name, the purchaser’s name, the flight reservation data, and
the price of the ticket transaction.
PTAs are usually completed using the agency’s computer
reservation system, although they’re sometimes completed by
hand.
The PTA consists of a cover plus four coupons. Figure 33
shows a description of the coupons and their distribution.
PTA Service Charge

When a prepaid ticket is processed, the airline—not the travel
agency—providing transportation issues the airline ticket.
The airline that issues a prepaid ticket assesses a PTA service
charge. The amount of a PTA service charge differs airline to
airline.

PTA Coupon L o c a t io n D is t rib u t io n
A u d i to r s C o p y F i rs t c o u p o n A tta c h to c o n tr o l / r e s e r v a ti o n c o p y a n d
s e n d to A R C o n w e e k l y s a l e s r e p o r t.
A g e n t s C o p y S econd coupon K eep in agencys files
C o n tr o l / Thir d coupon A tta c h to A u d i to r s c o u p o n a n d s e n d to

R e s e r v a ti o n C o p y A R C o n w e e k l y s a l e s r e p o r t.
P u r c h a s e r s R e c e i p t F o u r th c o u p o n G i v e to p u r c h a s e r a s r e c e i p t o f p r e p a i d
ti c k e t p u r c h a s e .
FIGURE 33—PTA Coupons and Distribution
Agency Commission on a PTA

The majority of domestic carriers pay zero percent commis-
sion, but most international carriers still pay some type of
commission. Always check with your carrier to determine
their commission rate. Depending on the carrier, they will
pay commission on the PTA services as well.

Let’s look at the following example. The base fare, tax, and
total on a round-trip ticket issued through a PTA are
$586.04 + 43.96 = $630 total selling price
• The agency earns 5 percent of the base fare:
$586.04 × 5 percent, or $29.30.
• The agency earns an additional 5 percent of the

$100.00 service charge, or $5.00.
• The agency earns a total commission of

$29.30 + $5.00, or $34.30.
Processing a PTA
When completing a prepaid transaction, the travel agent
follows this step-by-step procedure:
Step 1: Make airline reservations for the passenger by
following normal procedures.
Step 2: Calculate the price for the ticket.
Step 3: Add the PTA service charge (contact the carrier to
obtain exact amount).
Step 4: Collect the total selling price of the ticket plus the
service charge from the purchaser.
Step 5: Complete the prepaid ticket advice as support
documentation of the prepayment.
Step 6: Contact the airline reservation office. Ask the air-
line reservation agent to retrieve the passenger
record. Provide the PTA ticket number.
Important: Once you’ve provided the PTA number, the airline
is now in control of the ticket transaction.
Step 7: The airline transmits the reservation data electron-
ically through its computers to the airport location
where the airline ticket will be issued to the
passenger.
Step 8: The passenger goes to the airport, provides proof
of identity at the ticket counter, and picks up the
airline ticket.

Remember, once you provide the PTA number, the airline is in complete
control of the ticket. This means that if the purchaser or passenger can-
cels the ticket after you give the PTA number, the airline keeps the PTA
service charge; it can’t be refunded to the purchaser. You should always
inform your clients of this policy.
Completed PTA Example

Each box of the prepaid ticket advice completed below is
explained in more detail. Remember that a PTA is like a
standard airline ticket—it’s an accountable ticket document
and validated with the agency and airline identification plate
imprints.
The PTA example below is for passenger William Morrison,
who is flying on a circle trip from Los Angeles to Baltimore.
He is flying on a United Airlines’ connection to Baltimore,
and a direct flight on the return. The purchaser is Mrs.
Brenda Morrison, who is paying for William’s ticket through
you, her travel agent located in Baltimore. William will pick up
his prepaid airline ticket at the United Airlines’ ticket counter
at Los Angeles airport after he shows photo identification.
The airline is charging a $100.00 PTA service charge. The
agency earns 5 percent of the base fare amount plus 5
percent of the service charge.
Figure 34 shows the passenger record and price display for
William’s flight.
MORRISON/WILLIAM MR FIGURE 34—Mr. Morrison’s

Passenger Record and Price
1UA 286Y 20MAR T LAXDEN HK1 900A 1213P
Display
2UA 1618Y 20MAR T DENBWI HK1 1240P 552P
3UA 669Y 28MAR W BWILAX HK1 731A 12:00N
1- USD565.58 66.12XT 631.70ADT
XT 42.42US 10.20ZP 6.00XF AY7.50
565.58 66.12 631.70TTL
ADT-01 Y
LAX UA X/DEN UA BWI 282.79Y UA LAX 282.79Y 565.58 END AY7.50
ZPLAX3.40DEN3.40BWI3.40 XF BWI3DEN3

Figure 35 shows the PTA that you’ve completed for this pre-
paid ticket. Read the description that follows.
FIGURE 35—PTA for Mr. Morrison’s Prepaid Ticket
The PTA form can be divided into six major sections that are
completed all the time (all other boxes with no entries are
completed for international tickets and special circum-
stances).
1 Passenger data. Enter the passenger’s last name, fol-
lowed by a slash, the first name, and the title, which is
optional. Enter the passenger’s full address and local phone
number (the passenger’s address and phone information is
an optional entry).
2 Purchaser data. Enter the purchaser’s full name,
address, and telephone number, including area code.
3 Routing/reservation data. For each flight segment,
enter the following information in this sequence: Airline code,
flight number, class of service, date of travel, from/to cities,
and status code (OK for confirmed). Each flight segment of a
connection is also listed in detail.

If applicable, show the breakdown of applicable segment
taxes and/or PFCs. Enter the tax code (ZP, AY, or XF)
followed by the airport code, in itinerary order, and the
amount for each.
4 Remarks. Indicate “Refundable to Purchaser Only.”
Always use purchaser’s full name. This is done so that the
passenger can’t refund the ticket and take the funds.
5 Tickets issued by. Enter the airline code and the loca-
tion (city and state) where the airline ticket is to be issued to
the passenger.
6 Fare ladder. Enter detailed information regarding base
fare, tax(es), and service charge as shown:
• Fare: Enter the amount of base fare (not including tax
charges). This amount would include any applicable
fuel surcharge(s).
• U.S. Tax: Enter the 7.5 percent U.S. transportation tax.

• Other Tax: Enter the amount(s) of all other tax
charges. If there’s more than one type of tax, enter the
combined amount preceded by the code “XT” for
combined tax. For example: ZP10.20 plus XF6.00 plus
AY7.50 appears as XT23.70.
• Other Funds: Any additional funds that are being

prepaid for the passenger. For example: excess bag-
gage fee. If none, leave blank.
• PTA Total: Enter the total amount of the PTA (fare plus
tax). Don’t include service charge.
• Equiv. Amt. Pd.: Only completed for international

prepaid tickets. If not applicable, leave blank.
• Svc. Charge: Enter the applicable service charge.

• Total: Enter the total amount collected including fare,
all taxes, other funds, and service charge.
• Comm. Rate: Complete only if the commission can be

expressed as a percentage. In most cases leave blank.

• Form of Payment: If payment is by check or cash,
enter CHECK. If payment is by credit card, enter the
two letter credit card code and the complete credit
card number. The expiration date of the card is an
optional entry.
• Commission and Tax Values: In the commission box

enter the dollar amount of agency commission (include
the commission on the service charge in the total).
Enter the dollar amount of all taxes in the tax box.
Self-Check 5
1–2: Complete a PTA for each prepaid ticket reservation below. The passenger record and itiner-
ary price, passenger data, and purchaser data are provided. The PTA service charge is $100.00
in each exercise.
1.
WILSON/RICHARD MR
1WN 1601Y 22JUL S BNACLE HK1 330P 555P

1- USD271.63 29.27XT 300.90ADT
XT 20.37US 3.40ZP 3.00XF AY2.50
271.63 29.27 300.90TTL
ADT-01 Y26 BNA WN CLE 271.63Y26 271.63 END AY2.50

ZPBNA3.40 XFBNA3
Purchaser Data Passenger Data

Elizabeth Wilson Richard Wilson
17 Deerling Lane 122 Lenox Avenue
Cleveland, OH 44414 Nashville, TN 37214
Phone: (216) 555-9055 Phone: (615) 555-8931
Form of Payment: Check
(Continued)

Self-Check 5
Complete the PTA:
2.
BICKEL/SALLY MISS
1AA 822Y 10OCT W SANPBI HK1 844A 609P
2AA 1571Y 22OCT M PBIDFW HK1 805A 1009A
3AA 369Y 22OCT M DFWSAN HK1 1053A 1205P

1- USD805.58 84.12 XT 889.70ADT
XT 60.42US 10.20ZP 6.00XF AY7.50
805.58 84.12 889.70TTL
ADT-01 Y
SAN AA PBI 401.86Y AA X/DFW Q1.86 AA SAN 401.86Y 805.58 END
ZP SAN3.40PBI3.40DFW3.40 XF SAN3PBI3
Purchaser Data Passenger Data

Frank Bickel Sally Bickel
160 Sunshine Lane 122 E. Mission Drive
West Palm Beach, FL 33412 San Diego, CA 92108
Phone: (561) 555-3278 Phone: (619) 555-7228
Form of Payment: Credit Card
Visa 0000 123456789
(Continued)

Self-Check 5
Complete the PTA:
TICKET REFUNDS
Even though a refund means a reduction of commission
earnings and some time wasted on your part, you as a travel
professional must respond to a refund request in a prompt
and friendly manner. This efficient service—even if it means
refunding the client’s money—will produce a satisfied cus-
tomer who will return to you with future business!
When it comes to airline tickets there are some things you
can and can’t refund.
You’re permitted to refund any ticket that was purchased
originally through your agency or a branch office of your
agency. You aren’t permitted to refund any ticket that was
purchased by the traveler directly through the airline or
through another travel agency.

Refund Documentation
There are two documents that are always involved in every
airline ticket refund.
• The old or original unused ticket. Before you can issue
any type of refund, you must receive all the unused
ticket coupons that are being returned for a refund.
Without the unused ticket you can’t begin the refund
process!
• The refund/exchange notice or REN. This is a non-

accountable ticket document issued by the ARC. It’s
used to record all the ticket refund information, such
as refunded ticket number(s), amount of refund, and
name of passenger.
The Refund/Exchange Notice (REN)

The REN is designed to simplify and support the processing
of ticket refunds and exchanges. In this study unit, we’ll
focus on using the REN to record ticket refunds. The form is
like an airline ticket, since it’s in booklet form with multiple
coupons. Unlike a standard ticket, the REN isn’t validated on
a ticket imprinter. The travel agent handwrites the validation
information onto the REN, such as the date of issue and
travel agency identification code.
The REN is a nonaccountable document; it doesn’t have an
assigned form and serial number, and if an error is made the
agent can dispose of it and start another.
The REN consists of a cover plus three coupons. Figure 36
shows the coupons and their distribution.
Step-by-Step Procedure
Let’s imagine that one of your clients is returning an airline
ticket to you for a refund. The ticket was originally pur-
chased through your travel agency. Follow these steps.
Step 1: Collect the unused ticket or flight coupons and
print the word REFUNDED across each coupon.
Step 2: Complete the REN document.

REN Coupon Location Distribution
Carrier’s Copy First coupon This is a multicolored por tion of the REN. It’s
pale green, yellow, and white. Staple the Carrier
copy to the refunded ticket and send to ARC on
the weekly sales repor t.
Agent’s Copy Second Keep in agency’s files.

coupon
Passenger’s Third coupon Give to your client for his or her records.
Copy
FIGURE 36—REN Coupons and Their Distribution
Step 3: Use the information on the REN to complete the

refund or exchange in IAR.
Step 4: Refund the purchaser’s money.

Ticket Refund Example
Let’s take a look at a ticket refund transaction. You issued
the round-trip ticket below for passenger Robert Jones. He
had to cancel his trip and has returned his entire ticket
below for a refund. He is returning both flight coupons—
flight coupon numbers one and two—for a refund.
The first thing you do is to collect the unused ticket and
write the word REFUNDED across each separate flight
coupon.
Let’s take a closer look at the ticket Mr. Jones is returning
(Figure 37). He was issued an airline ticket with two flight
segments or coupons. The first flight coupon was valid for
the flight from Memphis to Philadelphia; the second flight
coupon was valid for the return flight from Philadelphia back
to Memphis.
FIGURE 37—Mr. Jones’ Returned Ticket
First, answer some quick questions:

• The ticket was validated on which carrier? Right,
Northwest Airlines.
• What was the base fare on his refunded ticket? Right,

it was $785.12.
• What was the Federal transportation tax amount (US)?

Right, it was $58.88.

• What was the total segment tax (ZP)? Right, it was
$6.80.
• What was the total passenger facility charge (XF)?

Right, it was $3.00.
• What was the total selling price? Right, it was

$858.80.
The agency claimed a commission in the amount of $0.00.
Completed REN Example

After receiving and reviewing the unused ticket, the next
step is to complete the refund/exchange notice document.
Figure 38 shows the completed REN for Robert Jones’ ticket
refund. You’ll notice that some boxes are left blank. Those
sections left blank in our example are to be completed only
for ticket exchanges. Study the completed REN and read the
descriptions of the numbered items shown in Figure 38.
FIGURE 38—A Completed REN

Description
1 Agency code box. Write in AGENCY CODE NO.
your travel agency’s ARC identifi-
cation number. ! " # $
2 Today’s Date box. Enter the TODAY'S DATE
date you’re completing the REN
form—not the date of issue of the 3 0 J U L 0 7
refunded ticket.
PASSENGER NAME
3 Passenger name box. Enter
JONES/ROBERT MR
the name of the passenger as it
appears on the refunded ticket.
4 Card holder/corporate name box. If the ticket was
purchased by a credit card, enter the name of the cardholder
or corporate name if it differs from the name of the passenger.
CARD HOLDER/CORPORATE NAME CARD HOLDER/CORPORATE NAME

BARBARA JONES ABC CORPORATION
5 Form of payment box. You must refund the ticket to

the original form of payment. If the original form of payment
was by cash or check, enter CHECK. If the original form of
payment was by credit card, enter the two-letter credit card
code and the account number.
FORM OF PAYMENT/ACCOUNT NUMBER FORM OF PAYMENT/ACCOUNT NUMBER

CHECK AX 0000 123456789
6 Transaction type box. Check “Straight Refund” for a

ticket refund transaction.
7 Refund breakdown boxes. Refer to Figure 39.
• Box A—Only used for ticket exchange transactions;
otherwise, leave blank.
• Box B—On a complete refund enter the base fare of

the ticket you’re refunding.
• Boxes C, D, E—In the small box marked CODE, enter

the tax code as it appears on the ticket. For example,
AY, US, ZP, XF. Enter the amount for each type of tax
opposite the appropriate tax code.

AMOUNT TO BE REFUNDED/COLLECTED AMOUNT TO BE REFUNDED/COLLECTED
SUBJECT TO CARRIER AUDIT SUBJECT TO CARRIER AUDIT
A TOTAL COST OF A TOTAL COST OF

NEW TICKET(S) NEW TICKET(S)
B BASE FARE OF 785.12 B BASE FARE OF 785.12

OLD/REFUNDED OLD/REFUNDED
TICKET(S) TICKET(S)
C INDIVIDUAL CODE 58.88 C INDIVIDUAL CODE 58.88

TAXES US TAXES US
ON ON
D OLD/ CODE 6.80 D OLD/ CODE 6.80
REFUNDED REFUNDED
TICKETS
ZP TICKETS
ZP
INCLUDING CODE INCLUDING CODE
E 8.00 E 8.00
PFC’S PFC’S
XT XT
F TOTAL COST OF 858.80 F TOTAL COST OF 858.80
OLD TICKET(S) OLD TICKET(S)
(B+C+D+E) (B+C+D+E)
G TOTAL COST OF NEW TKT(S) + 858.80 G TOTAL COST OF NEW TKT(S) + 858.80
MINUS MINUS
TOTAL COST OF OLD TKT(S) – TOTAL COST OF OLD TKT(S) –
(A–F) (A–F)
H ADMINISTRATIVE + 0 H ADMINISTRATIVE + 75.00

OR OR
PENALTY FEE PENALTY FEE
I AMOUNT COLLECTED FROM + 858.80 I AMOUNT COLLECTED FROM + 783.80

OR REFUNDED TO CLIENT OR REFUNDED TO CLIENT
(G + H) – (G + H) –
Robert Jones’ Ticket Refund Example with a penalty fee (ticket with a
$75.00 penalty fee for refund)
FIGURE 39—Refund Breakdown Boxes
• Box F—Add boxes B through E together; this should

total to the value of the ticket you’re refunding.
• Box G—This box is always Box A minus Box F. In a

refund transaction this amount will always be the
same amount as in Line F but with a negative value.
• Circle the negative or minus sign. A negative (–) sign

always means the amount that’s given back by the
travel agency—in this case the amount to be refunded
to the client.

• Box H—If a penalty fee is charged by the carrier due to
cancellation, enter the amount here. A penalty fee is
always a positive number (+). If a penalty fee doesn’t
apply, enter zero.
• Box I—This box is always the sum of boxes G plus H.

Remember, you may be adding positive and negative
numbers together. Box I is the amount you’ll actually
refund to your client.
8 Commission refund boxes.

• Commission on New Ticket(s)—Used only for ticket
exchange transactions; otherwise, leave blank.
• Commission on Admin/Penalty Fee—If no penalty fee,

COMMISSION ON NEW
enter zero. TICKET(S)
• Commission Returned on Old Ticket(s)—When you + 0

refund a ticket, you generally have to return your COMMISSION ON
ADMIN/PENALTY FEE
commission to the airline. Enter the dollar amount of
+ 0
commission you’re returning. Enter zero if no commis-
sion is returned. COMMISSION RETURNED
ON OLD TICKET(S)
• Commission Due to/from You—Add the “Commission –0

on Admin/Penalty Fee” and the “Commission COMMISSION DUE
TO/FROM YOU
Returned on Old Ticket(s)” amounts. On a refund
transaction the end result is usually a negative +
– 0
amount.
9 Old ticket number(s). For each ticket being refunded,

complete the following boxes.
O L D T IC K E T N U M B E R (S )
FLT CPNS. C A R R IE R F O R M / S E R IA L N O .
1 2 0 1 2 8 4 2 8 1 7 0 0 4 1


• Flt. Cpns.—Enter the flight coupon number(s) that
is/are being returned for a refund. In our example,
the passenger is returning both flight coupon numbers
1 and 2.
• Carrier—Enter the three-digit number of the validating

carrier. This appears in the airline validation box on
the refunded ticket.
• Form/Serial No.—Enter the seven-digit form number of

the refunded ticket and the three-digit serial number
of the refunded ticket.
Note: New Ticket Number(s) section is completed only for

ticket exchanges. For straight refunds, leave blank.
10 Unused PFCS from old/refunded ticket(s). Any unused
PFCs that you’re refunding must be shown. Enter the airport
code followed by the amount. The total PFC charges in this
section should be equal to the total PFC amount shown
under the Refund Breakdown column (XF tax box).
U N U S E D P F C S F R O M O L D / R E F U N D E D T IC K E T (S )
A IR P O RT C O D E AMT A IR P O RT C O D E AMT A IR P O RT C O D E AMT A IR P O RT C O D E AMT

PHL 3

Self-Check 6
Complete the REN for each refunded ticket below. In each case, the passenger is returning the
full ticket or all of the valid flight coupons for a refund.
1. Mr. Frank Wiley is returning the flight coupon below for a refund. Complete the REN.
Date of issue of the REN is April 20.

(Continued)

Self-Check 6
2. Passenger Jenkins was issued a ticket for four flight segments or coupons. He canceled his
entire trip and is asking for a refund. Complete the REN. Date of issue of the REN is
February 13.
(Continued)

Self-Check 6
3. Julie Adams had to cancel her round-trip ticket between Nashville and San Diego. She used
her father’s MasterCard to purchase the ticket. The cardholder’s name is Robert L. Adams.
Complete the REN. Date of issue of the REN is November 22.

NOTES

Self-Check 1
1. instant purchase fare
2. discount-amount coupon
A ns we r s
3. normal fare
4. discount-excursion fare
5. set-rate coupon
6. b
7. d
8. c
9. d
10. b
11. M
12. No refund (zero)
13. Yes, $50.00 administrative fee
14. June 8
15. May 21 (one day after reservation is made)
16. June 19 (first Sunday after departure)
17. July 15 (30 days after departure)
18. Monday through Thursday
19. Nov 19, Nov 22, and Nov 26
20. September 15
21. Dec 15
22. No charge
23. tax, total selling fare
24. 7.5
25. US
26. four, XF
27. rural, ZP
81
Self-Check 2
1. one
2. Delta Air Lines, 1106
3. coach
4. Cincinnati, MCO
5. 7:45A, 9:50A
6. YN
7. Orlando, $3.40
8. $595.35, Louisville to Phoenix
9. $56.95
10. $44.65, $6.80, $2.50, $3.00
11. $652.30
12. Salt Lake City, Utah to Houston, Texas
13. April 13, Friday
14. United Airlines, April 17, Tuesday
15. 1091, 605A, Denver
16. 2451, 810A, 937A
17. $1172.09
18. $104.11
19. $1276.20
20. Houston, Texas; $753.49
21. Houston to Salt Lake City; $418.60
22. $87.91, $10.20, $6.00
Self-Check 3
1. d
2. e
3. c
4. a
5. b
6. refund/exchange notice (REN)
82 Self-Check Answers
7. they can be used for many airlines
8. Airlines Reporting Corporation (ARC)
9. form
10. serial
Self-Check 4
1.
2.
3.
Self-Check 5
1.
2.
Self-Check 6
1.
2.
3.
accountable ticket form A ticket form identified by a
unique form and serial number that’s tracked by the ARC
from the time it’s issued to an agency to the time it’s used
G lo s s a r y
by the passenger.
automated ticket/board pass (ATB) An ARC document
used by the agency’s computer reservation system. The
ATB serves as both an airline ticket and a boarding pass.
base fare The published fare without any taxes.
discount coupons A coupon that’s used in exchange for
airline ticket discounts. The two general categories of
discount coupons: discount-amount and set rate.
electronic fare rule A detailed description of a fare’s travel
restrictions and conditions of travel that’s stored and
retrieved through the airline computer reservations
systems.
excursion A trip or type of air fare that must be round trip.
fare-basis code A unique identification that designates a
specific type of fare; a fare basis code consists of one or
more letters and numbers.
fuel surcharge An additional charge on an airline ticket
that’s collected by the airlines and that applies on certain
airlines departing from specific airports in the United
States. If applicable, a fuel surcharge is added to the base
fare on an airline ticket and identified by the letter Q.
instant-purchase A type of discounted fare that must be
purchased within one or two days after booking; most are
nonrefundable in nature. (See nonrefundable.)
itinerary price The breakdown of the base fare, tax, and
total selling price for a passenger name record (PNR) stored
in the computer reservation system.
joint fare An agreed price by two airlines from one stopover
city to another stopover city via a specific connecting city.
miscellaneous charges order (MCO) An ARC document
that’s used to process a variety of air and land services,
such as payments for tour packages, car rentals, hotels,
and cruises.
87
nonrefundable A type of discounted fare that provides no
refund of money back to the passenger if the ticket is
canceled.
normal fare An air fare that has no travel restrictions.
passenger facility charge (PFC) Tax amounts that are
applicable when departing from selected airports. PFCs
help to subsidize airport expansion projects or to update
facilities for passengers. If applicable, PFCs are identified
by the tax code of XF on an airline ticket.
point-to-point The basic principle of domestic fare construc-
tion, which means that a fare is charged to each stopover
city on the routing.
prepaid ticket advice (PTA) ARC document used to permit
issuance of an airline ticket at a location other than the
location of payment.
primary element The first character in a fare-basis code,
which indicates two things about a fare: (1) the class of
service applicable to the fare (coach class, first class, and
so on); and (2) the letter code required when making the
reservation or the booking code.
refund/exchange notice (REN) A nonaccountable ticket
document from the ARC that’s used to record airline ticket
refund and ticket exchange transactions.
secondary element One or more characters listed after a
primary code that identify some of the restrictions or con-
ditions of travel applicable to the air fare.
segment tax A federal tax that applies for each departure
from an airport at the beginning of every flight segment on
the airline ticket. Segment taxes don’t apply from selected
small rural airports. If applicable, segment taxes are iden-
tified with the code of ZP on an airline ticket.
standard airline ticket ARC document used for airline and
U.S. rail transportation (Amtrak) that’s valid for up to four
flight or rail segments.
tax When it applies to airline transportation any fee charged
by the federal government that’s added to the base fare.
88 Glossary
through fare A published fare for an on-line connection; a
published fare between two stopover cities over or through
an intermediate connecting city.
tour order ARC document used to record payments for
advertised air and land tour packages.
universal tickets Airline ticket stock used by travel agents;
issued by the Airlines Reporting Corporation (ARC) and
used for transportation on all member airlines.
U.S. transportation tax A certain percentage of the base
fare on an airline ticket. The current tax percentage at the
time of publication is 7.5 percent and is identified by the
tax code of US on an airline ticket.
Glossary 89
NOTES
90 Glossary
Examination
Examinat io n
North American Air Travel, Part 2
EXAMINATION NUMBER:
03500703
Whichever method you use in submitting your exam
answers to the school, you must use the number above.
For the quickest test results, go to

http://www.takeexamsonline.com
When you feel confident that you have mastered the material
in this study unit, go to http://www.takeexamsonline.com and
submit your answers online. If you don’t have access to the Internet,
you can phone in or mail in your exam. Submit your answers for this
examination as soon as you complete it. Do not wait until another
examination is ready.
Questions 1–20: Select the one best answer to each question.
1. Your client is planning a business trip. He will depart from your

city on United Airlines. He will fly the next two legs of the trip on
Delta Airlines, and the return journey on American Airlines.
When you write the airline ticket, you write one ticket
A. for each carrier.
B. and validate with the carrier on which he flies the longest.
C. and validate with the first carrier only.
D. and validate with all three carriers.
2. A valid flight coupon covers

A. one flight segment of the passenger’s itinerary.
B. one connection.
C. the client’s entire itinerary.
D. all flights marked on the auditor’s coupon.
91
3. Which of the codes below identifies a nonrefundable excursion fare, booked in V class of
service and valid during low season on the weekend, which must be purchased no later
than three days before departure?
A. LEV3NR C. VLWE3NR
B. VENR3 D. VWX3NR
4. Your client is paying a deposit on a hotel room. What is the only ARC document that can
be used for this transaction?
A. REN C. Standard ticket
B. Tour order D. MCO
5. You made an error when completing one of the following ARC documents. Which one are
you allowed to throw away?
A. Airline ticket C. PTA
B. MCO D. REN
6. Your client is booked on the following itinerary:
1UA 101Y 13JUN Q JFKDEN HK1 650A 844A

2UA 246 Y 20JUN Q DENLAX HK1 1130A 255P
What is the best way to describe how the fare is calculated for this ticket?
A. Conjunction fare C. Joint fare
B. Point-to-point fare D. Through fare
7. Your client is booked on the following itinerary:
1DL 828F 10SEP T ATLPIT HK1 145P 324P

2TW 304F 14SEP J PITSTL HK1 705A 803A
3TW 224F 14SEP J STLSEA HK1 841A 1115A
4DL 671F 16SEP M SEAATL HK1 700A 435P
The second fare segment is charged between which two cities?

A. Pittsburgh to Seattle C. St. Louis to Seattle
B. Pittsburgh to St. Louis D. St. Louis to Atlanta
92 Examination
Answer questions 8 and 9 based on the electronic rule excerpt in Examination Figure 1.
03 RES/TKT—RES MUST BE MADE NO LATER

THAN 7 DAYS BEFORE DEPARTURE FROM
ORIGIN. TICKET MUST BE PURCHASED
NO LATER THAN 7 DAYS BEFORE DEPAR-
TURE FROM ORIGIN OR 1 DAY AFTER
RESERVATION IS MADE, WHICHEVER
COMES FIRST.
EXAMINATION FIGURE 1
8. The passenger is departing on June 25. The fare that you’re researching has a reservation/
ticketing restriction (see above). What is the latest possible date you can make the reservation?
A. June 19 C. June 18
B. June 30 D. June 26
9. Another client is departing November 20 on the same fare. You booked the reservation on
September 19. What is the latest possible date you can issue the airline ticket based on the
reservation/ticketing restriction in Examination Figure 1?
A. November 13 C. November 19
B. September 26 D. September 20
10. This is imprinted on an airline ticket as a result of validating.

A. Airline name C. Passenger name
B. Departure city D. Form of payment
11. The process by which the Airlines Reporting Corporation distributes money earned from travel
agency ticket sales to the individual airlines.
A. Area sales report C. Ticket settlement plan
B. Area settlement plan D. Ticket control settlement
12. How often do travel agencies report the amount of airline ticket sales to the Airlines Reporting
Corporation?
A. Once a year C. Once per month
B. Twice per week D. Once per week
Examination 93
Answer questions 13–15 based on the itinerary display in Examination Figure 2.
PRATT/MELISSA MS
1US 1122C 16JUN F ALBPHL HK1 625A 729A
2US 547C 16JUN F PHLRDU HK1 824A 946A
3DL 1718C 23JUN F RDUCHS HK1 1140A 155P
1- USD706.98 65.02XT 772.00ADT
XT 53.02US 9.00ZP 3.00XF
706.98 65.02 772.00TTL
ADT-01 C
ALB US X/PHL US RDU 426.05C DL CHS 280.93C 706.98 END
ZPALB3PHL3RDU3 XFALB3
13. This ticket is based on what class of service?

A. Coach class C. Thrift class
B. Business class D. First class
14. The commission is based on the standard policy for domestic airlines. What is the correct
entry in the final commission box on this ticket?
A. C.
C O M M IS S IO N TAX C O M M IS S IO N TAX
5 6 .5 5 8%
B. D.
C O M M IS S IO N TAX C O M M IS S IO N TAX
2 5 .0 0 5 0 .0 0
94 Examination
15. What are the correct base fare entries in the fare ladder on this ticket?
A. C. From/To
From/To
FARE FARE
ALB CARRIER ALB CARRIER
CALCULATION
CALCULATION
PHL US 280.94 PHL US
RDU US 426.05 RDU US 426.05
CHS DL CHS DL 280.93
B. D. From/To
From/To
FARE FARE
ALB CARRIER ALB CARRIER
CALCULATION
CALCULATION
PHL US PHL US 426.05
RDU US 280.93 RDU US
CHS DL 426.05 CHS DL 280.93
Examination 95
The itinerary in Examination Figure 3 is for a prepaid ticket. Answer questions 16–18 based on
the PTA itinerary.
ROSENBERG/WILLIAM MR
1UA 493Y 10OCT T ORFCLE HK1 733A 845A
2UA 198Y 14OCT J CLEORF HK1 544P 839P
1- USD375.82 37.18XT 413.00ADT
XT 28.18US 6.00ZP 3.00XF
375.82 37.18 413.00TTL
ADT-01 YLE
ORF UA CLE 187.91YLE UA ORF 187.91YLE 375.82 END
ZPORF3CLE3 XFORF3
16. Which fare breakdown section on the PTA is completed correctly?

A. FARE 413.00 C. FARE 375.82
U.S. TAX 28.18 U.S. TAX 28.18
OTHER TAX XT9.00 OTHER TAX XT6.00
OTHER FUNDS OTHER FUNDS
PTA TOTAL 450.18 PTA TOTAL 378.00

EQUIV AMT. PD USD EQUIV AMT. PD USD
SVC. CHARGE USD 100.00 SVC. CHARGE USD 100.00

TOTAL USD 550.18 TOTAL USD 478.00
B. FARE 375.82 D. FARE 375.82

U.S. TAX 37.18 U.S. TAX 28.18
OTHER TAX XT9.00 OTHER TAX XT9.00
OTHER FUNDS OTHER FUNDS
PTA TOTAL 422.00 PTA TOTAL 413.00

EQUIV AMT. PD USD EQUIV AMT. PD USD
SVC. CHARGE USD SVC. CHARGE USD 100.00

100.00
TOTAL USD TOTAL USD 513.00
522.00
96 Examination
17. Which Routing/Fare Basis/Reservation Data box on the PTA is completed correctly?
A.
ROUTING/FARE BASIS/RESERVATION DATA
UA 493Y 10OCT ORFCLE OK
UA 198Y 14OCT CLEORF OK
ZP ORF3CLE3
XF ORF3
B.
UA 493Y ORFCLE 10OCT OK
UA 198Y CLEORF 14OCT OK
ZP ORF3CLE3
XF ORF3
C.
ZP ORF3CLE3
XF ORF3
D.
ZPORF3
XFORF3CLE3
18. Which commission value box on the PTA is completed correctly? (Assume 5 percent
commission.)
A. C O M M IS S IO N TAX
C. C O M M IS S IO N TAX
3 0 .0 7 3 7 .1 8 3 4 .8 0 3 7 .1 8
B. COMMISSION TAX D. C O M M IS S IO N TAX

23.79 37.18 5 0 .0 0 3 7 .1 8
Examination 97
The ticket in Examination Figure 4 is being returned in full for a refund. Answer questions 19
and 20 regarding this refund transaction.
98 Examination
19. Which refund breakdown boxes on the REN are completed correctly?
A. C.
TICKET(S) TICKET(S)
TAXES US TAXES US
ON ON
REFUNDED ZP REFUNDED ZP
TICKETS TICKETS
E CODE 3.00 E CODE 8.00
INLUDING INLUDING
PFC’S XF PFC’S XT
F TOTAL COST OF F TOTAL COST OF 470.80
505.82 OLD TICKET(S)
OLD TICKET(S)
(B+C+D+E) (B+C+D+E)
G TOTAL COST OF NEW TKT(S) G TOTAL COST OF NEW TKT(S) + 470.80
+ 465.00 MINUS
MINUS –
TOTAL COST OF OLD TKT(S) – TOTAL COST OF OLD TKT(S)
(A–F) (A–F)
H ADMINISTRATIVE H ADMINISTRATIVE + 0
+ 0 OR
OR
I AMOUNT COLLECTED FROM I AMOUNT COLLECTED FROM + 470.80
+ 465.00 OR REFUNDED TO CLIENT
OR REFUNDED TO CLIENT –
(G + H) – (G + H)
B. D.
TICKET(S) TICKET(S)
TAXES US TAXES US
ON ON
REFUNDED ZP REFUNDED ZP
TICKETS TICKETS
E CODE 6.00 E CODE 3.00
INLUDING INLUDING
PFC’S XF PFC’S XF
F TOTAL COST OF 465.00 F TOTAL COST OF 474.00
OLD TICKET(S) OLD TICKET(S)
(B+C+D+E) (B+C+D+E)
G TOTAL COST OF NEW TKT(S) + 465.00 G TOTAL COST OF NEW TKT(S) + 474.00
MINUS MINUS
TOTAL COST OF OLD TKT(S) – TOTAL COST OF OLD TKT(S) –
(A–F) (A–F)
H ADMINISTRATIVE + 0 H ADMINISTRATIVE + 0
OR OR
I AMOUNT COLLECTED FROM + 465.00 I AMOUNT COLLECTED FROM + 465.00
OR REFUNDED TO CLIENT OR REFUNDED TO CLIENT
(G + H) – (G + H) –
Examination 99
20. Which commission refund boxes on the REN are completed correctly?
A. C. COMMISSION ON NEW
COMMIS S ION ON NEW
TICKET(S ) TICKET(S)
+ 0 + 0
COMMIS S ION ON COMMISSION ON

ADMIN/ PENALTY FEE ADMIN/PENALTY FEE
+ 0 + 21.21
COMMISSION RETURNED COMMISSION RETURNED

ON OLD TICKET(S) ON OLD TICKET(S)
– 50.00 –0
COMMIS S ION DUE COMMISSION DUE

TO/ FROM Y OU TO/FROM YOU
+ +
– 50.00 – 21.21
B. D. COMMISSION ON NEW
COMMISSION ON NEW
TICKET(S) TICKET(S)
+ 21.21 + 0
COMMISSION ON COMMISSION ON
ADMIN/PENALTY FEE ADMIN/PENALTY FEE
+ 0 + 0
COMMISSION RETURNED COMMISSION RETURNED

ON OLD TICKET(S) ON OLD TICKET(S)
– 21.21 – 21.21
COMMISSION DUE COMMISSION DUE

TO/FROM YOU TO/FROM YOU
+ +
– 21.21 – 21.21
100 Examination

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North American

Air Travel, Part 2

North American Air

Ms. Semer-Purzycki has served as classroom instructor and direc-

Ms. Semer-Purzycki earned a bachelor’s degree in Education from

About the Contributing Reviewer

Copyright © 2008 by Penn Foster, Inc.

When you complete this study unit, you’ll be

• Interpret the basic codes of airfares

• Explain electronic airfare rules

• Explain the three basic components of airline ticket

• Interpret all necessary information from a passenger

• Handwrite standard airline tickets, prepaid ticket

Reading Itinerary Pricing 22

Completing Airline Tickets by Hand 45

Prepaid Ticket Advice 59

North American Air Travel, Part 2 1

How do you, the travel professional, keep track of it all? You

2 North American Air Travel, Part 2

Before considering what types of discounted fares you’ll be

tickets can be canceled (and are fully refundable) without

fares are the most expensive.

North American Air Travel, Part 2 3

• There’s a service, or administrative, fee if the passenger

• Tickets are instant-purchase; they must usually be

• They aren’t generally permitted with fares already

4 North American Air Travel, Part 2

Airline Discount Coupons

North American Air Travel, Part 2 5

Fare Calculation Terms

6 North American Air Travel, Part 2

1. Fare segment 1 is charged from the city of _______ to _______.

FIGURE 6—A Through Fare

North American Air Travel, Part 2 7

1. Fare segment 1 is charged from the city of _______ to _______.

FIGURE 7—A Through Fare Practice Exercise

8 North American Air Travel, Part 2

FIGURE 8—A Joint Fare

Since Dallas/Ft. Worth is a connecting city, there isn’t a

North American Air Travel, Part 2 9

10 North American Air Travel, Part 2

A primary element is the first letter-character in a fare-basis 3. San Diego; Boston

As you learned earlier in this study unit, many types of dis-

North American Air Travel, Part 2 11

COMMON SECONDARY ELEMENTS IN FARE-BASIS CODES

Many of the deeply discounted fares are nonrefundable N or NR = nonrefundable

12 North American Air Travel, Part 2

• L is a secondary element that indicates low or basic

• W is a secondary element that indicates weekend

• 3 is a secondary element that indicates the reservation

• NR is the last secondary element, and indicates the

Electronic Fare Rules

• On what days of the week or hours of the day the

For every fare type, there’s a published rule. They’re called

North American Air Travel, Part 2 13

14 North American Air Travel, Part 2

BOOKING CODE: The class of ser vice or 01 BK CODE - M -

FIGURE 11—Fare Rule Example with Information Category Breakdown

Fares, Taxes, and Surcharges

North American Air Travel, Part 2 15

16 North American Air Travel, Part 2

North American Air Travel, Part 2 17

normal fare discounted excursion fare instant-purchase fare

1. Fare segment 1 is charged from the city of _ to _.

1. Fare segment 1 is charged from the city of _ to _.

2. The passenger is on a one-way flight on _. The flight number is __.

5. The departure time is _, and the arrival time is _.

A g e n t s c o u p o n P ink S econd coupon K eep in agencys file.