1.

TRAVEL GLOSSARY

Origin :The point from where the journey begins is called point of „Origin‟.

Delhi – Singapore – Delhi

Point of origin is Delhi

Destination :The place where a passenger is stopping (not for transit purposes) is called „Destination‟.

Delhi – Singapore – Delhi

Singapore is the Destination

Stopover Point : City en route the final destination, where the passenger stops by his / her Own choice
and then takes an onward flight to the next destination is called a stopover point.

Chennai – Singapore – Sydney

If the passenger decided to stop in Singapore for 24 hours or more, Singapore is treated as the stopover
point.

Transit point/ Connection Point : Passengers who are temporarily availing of a halt in their journey for
less than 24 hours at a point between their Origin and destination. Transit passengers can either stay in
a designated area of an airport called transit lounge if the stay is for few hours. In case the transit is
longer or there is a misconnection the passenger might be able to avail a complimentary hotel
accommodation at the airline expense. (For building routings and connections the Amadeus DRT/DX
transactions codes can be used)

Intermediate Point

All stopover or transit points between the origin and the turnaround point or the destination point are
regarded as Intermediate Point.

Fare Break Point

In case of return journeys point having the maximum MPM from the origin is considered as a FBP,
whereas in one-way journeys the destination is always regarded as the Fare Break point.

Turnaround Point

The point from where the passenger starts his return journey usually the farthest point in a routing from
the point of origin is termed as Point of Turnaround.

[Type text]
 2. VARIOUS KINDS OF ROUTINGS/JOURNEY

One Way

The journey in which the passenger never returns back to the point of origin is termed as a One Way
Journey.

Round Trip

The Passenger performs an outbound journey and returns back to the point of origin in the same
country.

Circle Trip

The circle trip is a kind of return journey where the NUC amounts of the outbound fare component and
the inbound fare component are different can be termed as circle trip.

Round the World Fares

A journey, which begins and ends at the same point and continues in an eastbound or westbound global
direction crossing both the Atlantic and Pacific Oceans .The itinerary, must include points in 1,2,3.

TYPE OF FLIGHTS

Direct Flights

Any flight that fly from the origin to the destination with a stopover point en route (can be for refueling
or for any technical halts), without a need to change the aircraft is termed as a Direct Flight, the flight
number will remain unchanged. (To search for Direct flights on Amadeus the entry
AN12SEPDELLON/ABA/FD can be used)

Connecting Flights

If a journey between the origin and the destination involves an aircraft change en route, such flights are
known as Connecting Flight .The flight number may also change. There are two types of Connecting
Flights: - (To search for Direct flights on Amadeus the entry AN12SEPDELLON/ABA/XDXB can be used)

Online Connection: - That is connection using the same airline.

E.g. TG 316 DEL BKK

TG 993 BKK SYD

Offline/Interline Connection: - That is connection using another airline

E.g. AI 137 DEL FRA

LH 406 FRA JFK

[Type text]
Non Stop Flights

Any flight that operates directly between the origin and the passenger‟s destination without a halt en
route is considered as a Non Stop Flight. (To search for Nonstop flights on Amadeus the entry
AN12SEPDELLON/ABA/FN can be used)

Code Share Flights

A code share flight comes into operation when 2 airlines sign a contract, whereby only one Airline will
operate the Aircraft and will carry the passengers of the other Airline as well .The flight number for a
code share flight is always four digit e.g. A flight operated from Delhi to London by Virgin Atlantic has 2
flight Numbers, one for Virgin Atlantic and the other for Air India .The Flight is operated by Virgin
Atlantic and carries the passengers of Air India also.

Interline Agreement: It is a commercial agreement between individual airlines to handle passengers

traveling on itineraries that require multiple airlines. Interline agreements are usually specific to a
reservation or Global Distribution System (GDS). For example, United Airlines has an interline ticketing
agreement with competitors American Airlines and British Airways. (To search interline agreement of an
airline Amadeus command TGAD-XX can be used. Where XX would be replaced by two letter airlines
code)

[Type text]
 3. TYPES OF FARES

Mileage Based : are usually less restrictive and more expensive than routing fares. They are based on the
number of miles flown rather than the route. They allow a passenger to take almost any route to his
destination, making stops in the cities along the way, as long as the mileage flown under a certain
amount.

Routing Based Fares : Are usually the most restrictive and the least expensive fares. In addition to having
the usual restriction such as advance purchase, day and time, seasonality etc., they require the
passenger to fly to his destination via a certain route. These fares cannot be used in mileage based
pricing.To check the Routing of a fare Amadeus command will be FQRx ( x is the line no of the fare
display)

SPECIAL FARES

Special fares are low promotional fares that have more restrictions than the normal fare. Such
restrictions are mostly in respect of

 Length of stay (max & min)

 Advance purchase requirements
 Reservations, payment & ticketing limits
 Day/time of travel
 Eligibility restrictions
 Refund ability and changeability

Group Fares

Group Inclusive Tour Fares (GIT) – These are special discounted fares that apply for the Group Travel.
These fares are supported with a special code, which needs to be imprinted on the ticket.

VUSA Fares : As the name suggests this is a VISIT USA fare these fares are given to the passenger
traveling within USA sectors and not valid for sale for the US national.

Check Fares : As per the Indian scenario these are the latest kind of special fares, which are offered by
the airlines for the domestic sectors. The guiding principle for these fares is the demand and supply
factor. The earlier the ticket is purchased the cheaper the fare can be availed.

Discover India Fares :These fares are applicable for the foreign nationals and Indian nationals residing
abroad visiting India. Passengers traveling against Discover India Fares are required to produce their
passports for verification at the time of ticketing and embarkation.

APEX FARES : These are the fares that require advance reservation with advance Payment made a
minimum number of days before departure. These type of fares do not allow open dated segments and
instead all flight coupons must have confirmed reservations. Penalties or cancellation charged may
apply for changes in booking and ticket cancellation.

[Type text]
 4. CABIN CLASS V/S RBD

There are 3 cabin classes as First Class (P, F), Business Class (C, J) and Economy (Y). These cabin classes
have different reservation booking designators (RBD)

For e.g. in the economy or the coach class you would have different RBDs as per the fare types. E.g. K, L,
S

Fare Restrictions:

Common fare restriction. This can be checked on Amadeus with the command FQN*LI

Penalties

Certain fares, which are cheap as compared to the normal fares, carry certain restrictions pertaining to
their cancellations, date changes etc. In such a case any deviation costs the passenger an amount as
ascertained by the airline

Blackout date

Specified dates when travel on such fare is not permitted.

SEASONALITY OF FARES –FARE BASIS CODES

There are groups of fares that belong to the same family but have Seasonal or day of week variations.

For e.g. YLWEE90, YHWEE90, YLXEE90, YHXEE90 are variations of YEE90 sharing the same fare rule.

Seasonality varies from low to high season .The more common codes are: -

H - for high or peak season

K - for middle/shoulder season or second seasonal level out of more levels

L - for low/basic or off-peak season

Part of week codes include:

W – for weekend

X - for weekday

Advance purchase: The advance purchase requirement of most APEX fares is expressed in the number
of days before departure the ticket must be purchased. A 7 day advance purchase requirement for a
journey commencing 15 May would mean the tickets must be issued and purchased no later than 8
May.

[Type text]
Maximum stay requirement: Maximum stay is usually presented in the number of days or months the
person may stay at the destination. The maximum stay validity is the date the client must begin the
return journey, using the last flight coupon

Minimum stay requirement: The minimum stay requirement indicates the number of days the client
must stay away, or the earliest date he may return from a given point on the return portion of the
journey.

Combinability: The combination paragraph contains information on combining the fare with another
fare on the same ticket. This information is important when using the fare on a half round-trip basis.

Stopover limitation : Many special fares have restrictions on the number of stopovers. Some fares do
not permit any stopovers. Other fares allow only a limited number and/or charge a fee for them.

When the stopovers are limited to a certain number in each direction, each direction means each fare
component. When a fare states that, for example, two stopovers are permitted, this applies to the
entire journey. The fare construction point (point of turnaround) in round and circle trips is not counted
as a stopover.

Routing/transfer limitation: It contains information regarding the permitted routing and transfers.
Mileage-based special fares do not have any routing restrictions, Where as routing based fare may have
routing and transfer restrictions.

Non-refundable : The Non refundable requirement indicates whether the ticket cost be refunded to the
passenger or not.

Restrictions on making changes: Restricts on making changes of routing, fare, carriers, class of service,
flight or date.

[Type text]
 5. AIRLINE HUB

An Airline hub is an airport that an airline uses as a transfer point to get passengers to their intended
destination. It is part of a hub and spoke model, where travelers moving between airports not served by
direct flights change planes en route to their destination.

Some airlines may use only a single hub, while other airlines use multiple hubs. Hubs are used for both
passenger flights as well as cargo flights.

Many airlines also utilize focus cities, which function much the same as hubs, but with fewer flights.
Airlines may also use secondary hubs, a non-technical term for large focus cities. Examples include
British Airways at Manchester International Airport and US Airways at Pittsburgh International Airport.

Some of the major airlines' most significant hubs are known as fortress hubs; such airports are typically
dominated by a single airline, which can fly upwards of 70% of a fortress hub airport's traffic. Examples
include Delta Air Lines' (DL) hub in Hartsfield-Jackson Atlanta International Airport and American
Airlines' (AA) hub in Dallas/Fort Worth International Airport. Some observers argue that the existence of
such hubs can stifle competition; ProAir's battle with Northwest when it briefly flew out of Detroit City
Airport is often cited as an example.

29 of the 30 busiest airports in the world (with the exception of Orlando International Airport) serve as
hubs for one or more major airlines.

[Type text]
 6. FARE FORMULA

If the pricing unit is not a point to point routing, you must apply the OW through fare construction steps
to find if you need to collect more than the direct fare from the Origin to the destination. Such steps are
covered in the use of the Mileage principle, which involves measuring distance between points and
comparing fares to/from intermediate cities to arrive at the correct through fare.

This through fare is the applicable fare for travel between two consecutive points via intermediate
points. In such cases you must construct the fare using the basic elements of mileage system, namely:

The Maximum Permitted Mileage or MPM

The Ticketed Point Mileage or TPM

The Extra Mileage Allowance or EMA

The Excess Mileage Surcharge or EMS

The Mileage system is also accompanied by the following fare check:

The Higher Intermediate Point check or HIP

Steps applicable for a Single OW Component :

Fare construction point (FCP) The Fare construction point is one of the ticketed point in the journey
Ticketed points are stopover and connection cities in the journey. The fare is constructed around the
FCP, which is usually the city located farthest from origin . The fare construction point is the farthest
ticketed point from the point of origin , as measured in Maximum Permitted Mileage(MPM). Identify
fare construction point of the fare component. The fare construction point is also called the Fare Break
point (FBP).

To determine the fare construction point , the following steps are performed

Step 1. Display the Mileage information for the itinerary with the Amadeus FQM entry

Step 2. Determine the city with the highest Maximum Permitted Mileage (MPM) listed in the display

Step 3 . Identify the city as the fare construction

Note: It should be noted that the fare construction point is not always the city with the highest MPM
from the origin. It can also be the city with the highest fare from the origin. Other times yet another
ticketed point

To check the mileage of a routing Amadeus command will be

FQMLISZRHMNLBKK

BKK has the MPM (8060). So BKK is the FCP

[Type text]
Neutral Unit Of Construction (NUC) It involves quoting the fare in Neutral Unit of Construction from fare
component Origin to Destination based on Global Indicator (GI), Fare type and Carrier. (Amadeus
command for One way fares in NUC – FQDDELSYD/ALJ/D12SEP/IO)

Rules The third step involves checking the rules (also called notes) of the fare to verify that the journey
meets all conditions and restrictions. (Amadeus command to see rules FQN LINE NUMBER)

Maximum Permitted Mileage (MPM)

The first element in the mileage principle is the MPM which is the maximum distance in air miles that
the passenger is allowed to travel, between the origin and the destination.

When selecting the correct MPM, it is important to establish the global indicator for the routing traveled
between the origin and the destination.

Example: - the Amadeus entry to obtain mileage information for the fare component DELHI-BANGKOK-
SINGAPORE SYDNEY

Enter is FQMDEL BKK SIN SYD

Ticketing Point Mileage (TPM)

TPM‟s represent the shortest operated mileage between the ticketed points of the journey. After
identifying the TPM for each sector in the routing, add them up and compare the total TPM to the MPM.
If the MPM is higher than the TPM, then the total distance of the itinerary did not exceed the maximum
distance between the origin and the destination. In ticketing terms this situation is considered “ within
the mileage” which is shown as an „M‟ in the fare breakdown.

The TPM for the fare component from LIS to ZRH is 1072 , from ZRH to MNL is 6479 , from MNL to BKK is
1363 and CUM shows you the cumulative TPM(addition of the TPM) ie. 8914.

The MPM for the fare component from LIS to BKK is 8060

Extra Mileage Allowance (EMA)

If in case the total TPM is higher than the MPM, you have to look for an EMA or an Extra Mileage
Allowance. The EMA is a TPM Deduction or published bonus mileage that is deducted from the total
TPM. Such mileage deduction depends on the area/sub area location of the origin/destination and via
points.

After deducting the applicable EMA from the TPM, the reduced TPM is compared once again with the
MPM to determine weather or not the routing is “within the mileage”.

[Type text]
Excess Mileage Surcharge (EMS)

It may happen that after checking the EMA , you cannot find an applicable EMA or you found an EMA
but it was not enough to lower the TPM. In such cases, the TPM still exceeds the MPM and it becomes
necessary to impose a surcharge.

Surcharge vary from 5% to 25% and is determined by a single formula. With a calculator, divide the TPM
total by the MPM.

If the result is ; Surcharge the fare by

Over 1.00000 but not higher than 1.05………………………………………….5%

Over 1.05000 but not higher than 1.10…………………………………………10%

Over 1.10000 but not higher than 1.15…………………………………………15%

Over 1.15000 but not higher than 1.20…………………………………………20%

Over 1.20000 but not higher than 1.25…………………………………………25%

When using this formula, you must check up to five decimal places in your calculator.

Rate of exchange and Local Currency Fare:

Recall that NUCs are not a real currency, Passenger‟s cannot pay for their tickets in NUCs. The NUCs
must be converted to a currency.

All international fare construction is calculated in NUC.

The total sum in NUC must be converted into the local currency using the NUC conversion factor of the
country of commencement of travel. This factor is better known as the IATA rate of exchange (IROE or
IATA ROE)

The above journey originates in Portugal, so the NUC must be converted into EURO, which is the
International currency of Portugal.

Currency conversion is done by multiplying the NUC amount by the IATA ROE. The ROE is different for
each currency. The IATA ROE is established by the IATA clearing house based on a five day currency
value average ending on the 15th of each month. It is updated four or more times a year.

The IATA ROE used in the conversion is recorded at the end of the linear fare construction.

Amadeus is always up-to-date with the current IATA ROE and an entry can be made to convert NUC
amounts into local currencies.

[Type text]
7. GENERAL GUIDELINES

1. Direction Of Ticketing: The Direction of Ticketing Or Direction of the fare is always away from the
point of the origin of the journey. For the outbound portion of a return trip, the direction of ticketing is
always same as Direction of Travel. For the inbound portion, however, the direction of ticketing is
opposite the actual direction of travel.

To understand it better, let‟s see an example.

If we have a return journey

SYD-HKG-LHR-MAD-BKK-SYD

LHR is the Fare break point

Outbound Fare Component Inbound fare component

-------------------------------------------------------------------------------------------------------------------

Direction of Travel : SYD to LHR Direction of Travel : LHR to SYD

Direction of Ticketing :SYD to LHR Direction of Ticketing :SYD to LHR

2. In a Return Trip apply the basic fare construction steps such as mileage system and HIP check on each
fare component.

3. Always use ½ RT fare for each fare component in a Return Journey. If there is no published RT, we can
use the OW as the half RT fare.

4. For HIP checks, check the fares in the same direction as the fare component.

5. A CT may have two or more fare components.

6. If a sector has two or more fares of the same type such as Y1 and Y2 fare levels, you may use the
lower or lowest level provided the conditions of the rule are met.

For HIP purposes conditions, which are paramount, include those pertaining to the number of
stopovers, transfers, midweek/weekend or seasonal applications.

Steps applicable for each fare component :

FCP Identify fare construction point of the fare component after selecting a fare break point.

NUC It involves quoting the fare in Neutral Unit of Construction from fare component Origin to
Destination based on Global Indicator (GI), Fare type and Carrier. (Amadeus command fares in NUC –
FQDDELFRA/ALJ/D12SEP/R,NUC and for half RT NUC fares FQDDELFRA/ALH/D16SEP/IH)

[Type text]
RULE The third step involves checking the rules (also called notes) of the fare to verify that the journey
meets all conditions and restrictions. (Amadeus command to see rules FQN LINE NUMBER)

MPM Note the Maximum permitted Mileage between the FCP‟s.

(MPM is the maximum distance, expressed in miles, that a passenger is allowed to travel between the
Origin and Destination of a given fare) (Amadeus command FQM and the itinerary. To display mileage
from a PNR FRM , for specific segments - FRM/S3 etc) (To view MPM for a sector only – FQO and the
sector.)

TPM Add up the Ticketed Point Mileage (TPMs)and compare the sum with the MPMs. (Ticketed Point
Mileage is the distance between two cities, as measured by the shortest operated route or the most
direct flight. The TPMs between all ticketed points (stopover and connections) are added together to
determine the total TPM for the component). (Amadeus command FQM and the itinerary. To display
mileage from a PNR FRM , for specific segments - FRM/S3 etc) (To view TPM for a sector only – FQO and
the sector.)

EMA If the total TPM exceeds the MPM , look for an Extra Mileage Allowance or TPM deduction.
(Amadeus command FQM and the itinerary. To display mileage from a PNR FRM for specific segments -
FRM/S3 etc)

EMS If the EMA is nil or insufficient, determine the Excess Mileage Surcharge by dividing TPM by MPM.
(Amadeus command FQM and the itinerary. To display mileage from a PNR FRM , for specific segments -
FRM/S3 etc)

HIP Look for a Higher Intermediate Point fare in the direction of the fare component from;

Origin to Intermediate stopover

Intermediate Stopover to another stopover

Intermediate stopover to destination

If there is a higher fare, replace the Origin – Destination NUC with this HIP fare and apply EMS, if any.

CF Determine the applicable fare in NUC ( The applicable fare is simply the HIP fare or the Origin – FCP
(whichever is higher) plus any excess Mileage surcharge EMS)

RETURN JOURNEY CALCULATION

1.3 Calculate the lowest applicable normal fare, in NUC only, for the following journey:

Itinerary: RIO-SK-CPH-SN-BRU-SN-PAR-AF-BRU-VP-RIO

Class: Y

Ticket: Issued and paid for in Brazil

[Type text]
Stopovers: In all ticketed points

TPM: RIO-CPH 6333 CPH-BRU 469 BRU-PAR 167

PAR-BRU 167 BRU-RIO 5864

OUTBOUND INBOUND

FBP RIO-PAR RIO-PAR

NUC Y ½ RT- 1280.50 Y ½ RT 1280.50

MPM 6840 6840

TPM 6969 6031

EMA None N/A

EMS 5M None

HIP RIO-CPH 1432.00 RIO-BRU 1298.50

CF +5% = 1503.60 1298.50

TTLCF 2802.10

OPEN JAWS

What is an Open Jaw?

A formal definition of a Open-Jaw journey would describe it as a journey with two fare components.

The outbound of Arrival and the Inbound point of departure are not the same and/or

The outward point of departure and the inward of arrival are not the same

Open-Jaw journey (OJ)

 the turnaround
 the Origin
 both the turnaround and Origin

TURNAROUND OPEN-JAW

B In this journey, the passenger flies from point “A” (the origin) to point “B” Takes some type of surface
transportation (bus, car etc.) to Point “C”, then returns back to point “A”

The Open-Jaw portion of the journey consists of the surface transportation

[Type text]
B In this journey, the passenger flies from Point “A” (the origin) to Point “B”, Turns around, then returns
to Point “C”. The outward point of departure(Point A “A”) and the inward point of arrival (Point “C”) are
not the same.

The journey is called an “Origin Open-Jaw” because the open-jaw or surface C occurs at the Origin.

DOUBLE OPEN-JAW:

In this journey, the passenger flies from point “A”(the origin) to point “B”, takes

D C surface transportation to Point “C”, turns around and flies to the return portion

Of the journey from point “C” to point “D”.

The outward point of departure (point “A”) and the inward point of arrival (point “D”) are not the same,
and the outbound point of arrival (point “B”) and the inbound point of departure (point “C”) are not the
same. A double open jaw has two open jaws.

one at the origin and

one at turnaround.

8. INTRODUCTION TO AIR TRAVEL TAXES

Most, if not all airline journeys are subject to at least one type of taxes.

This lesson will cover “ticketable taxes” the taxes collected at the time of ticket issuance. They are
shown on the ticket and added to the fare before the ticket is issued.

“Non ticketable taxes” are taxes that do not appear on the ticket. They are usually collected from the
passenger upon departure at the airport of a specific country of city.

NOTE: Taxes change constantly. The taxes, fees and charges shown in this course are presented for
illustrative purpose only and should not be used in actual fare calculation.

Taxes may be expressed as:

 A percentage of the value of the ticket

 A fixed amount

When taxes are a fixed amount they must be converted to the currency of ticket purchase. This is done
at the banker‟s rate, not the IATA rate of exchange (ROE). The IATA ROE is not used because taxes are
levied by governments and consequently have nothing to do with IATA rules.

Ticketable taxes are levied by the government of a country and usually apply only to transportation sold
and /or commencing in the country concerned.

[Type text]
Some countries require that a tax be collected at the time of ticket issuance for passenger travel
involving their country in anyway, irrespective of where the ticket was issued. For example, a country
might demand tax for a stopover at one of its airports.

Every ticketable tax is identified with a unique two letter code. The two letter tax code appears next to
the amount on the ticket for identification purposes.

Many countries have a general transportation tax whose code is often the country‟s two letter code. For
example Britain‟s Transportation tax is GB and the code for the United States transportation tax is US.

When manually pricing a journey, it is your responsibility to figure out what taxes apply.

Unfortunately there is no short cut to do this. As mentioned earlier the taxes are levied by the
governments. Governments publish long and complicated documents explaining their taxes. These
documents are interpreted by the GDS and the airlines, who publish their own explanation of the air
travel taxes.

[Type text]
 9. INTRODUCTION TO THE PASSENGER TICKET

A ticket is the contract between the airline and the passenger. It shows the flight details, class of service,
type and amount of fare that has been agreed upon between the airline and the passenger. The ticket is
also the receipt for the fare paid.

The ticket is a very important document and all the data in it should be filled with utmost care. The
tickets are automatically issued by the GDS system by reading the information from the PNR and from
ticket record that has been created.

There are two types of automated tickets:

 Transitional Automated Tickets

 Automated Ticket/Boarding Pass

The ticket stock is given to the travel agents by the BSP office of each country.

BSP is the standardized system for the airlines and the agents, developed by the IATA member airlines to
simplify the selling, reporting and remittance procedures of passenger tickets and documents.

The passenger ticket stock provided by the BSP is airline neutral whereas the airline uses its own airline-
specific stock. Both the stocks vary slightly but the essential elements are the same.

ATB serves as;

 Passenger Ticket
 Baggage Check
 Boarding Pass
 Baggage Identification Tag

Each ticket comprises of multiple pages called Coupons which includes:

Audit Coupon:

41 GPROT09/MAR11/VER1

It is to be furnished to the accounts department of the issuing airline and has to be removed at the time
of issuance and attached to the sales report.

Flight Coupon:

There is one coupon for each flight the passenger needs to board and has to be left in the ticket.

Agent Coupon:

It is meant for the agency record and needs to be removed at the time of ticket issuance and kept by the
issuing agent.

[Type text]
Passenger Coupon:

It is the passenger‟s copy and is the receipt for the fare paid. It contains the details of their flights.

International tickets (airline specific) mention some additional information such as:

Conditions of contact of carriage

Translations of the headings on the ticket

General information regarding the check-in times, reconfirmation of the seat reservation, carriage of
dangerous goods etc

A coupon is required each time there is a:

Stopover or Connection

Change of Carrier

Change of Flight

Change of Class

[Type text]