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Macroenvironment: The broad forces in society and the business world that impact most companies.
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Management company: A firm that owns several lodging properties.
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Manifest: Final official listing of all passengers and/or cargo aboard a transportation vehicle or vessel.
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Market demand: The amount of a specific product or service that may be purchased during a certain period of time in a particular geographic area.
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Market forecast: The realistic demand within a given time period for the products produced by all companies within a ceratin industry or product category.
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Market segmentation : The process of dividing a broad market into smaller, specific markets based on customer characteristics, buying power, and other variables.
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Market share: The measure of company sales versus total sales for a specific product catergory or industry.
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Market: All existing and potential customers for a product or service.
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Marketing mix: The 4 Ps of marketing: product, price, promotion, place (distribution).
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Marketing plan: A written report that details marketing objectives for a product or service, and recommends strategies for achieving these objectives.
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Marketing research: The function that links the consumer, customer, and public to the marketer through the systematic gathering and ananlyzing of information.
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Markup pricing: Pricing a product by adding a standard markup to costs. Also called cost-plus pricing.
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Markup: A percentage added to the cost of a product to achieve a selling price.
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Master account: The guest account for a particular group or function that will be paid by the sponsoring orgainzation. See folio.
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Media: Communications channel such as broadcast (radio, TV), print (newspapers, magazines, direct mail), outdoor (billboards), and multimedia (Internet).
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Meet-and-greet service: A prepurchased service for meeting and greeting clients upon arrival in a city, usually at the airport, pier, or rail station, and assisting clients with entrance formalities, collecting baggage, and obtaining transportation.
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Meeting/conference tour: A tour designed around a specific meeting or conference for the participants.
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Microenvironment: Those forces close to a company that impact operations and marketing programs.
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Mission statement: The concise description of what an organization is, its purpose, and what it intends to accomplish.
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Motorcoach Tour: A tour that features the motoroach as the form of transportation to and from destinations.
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Motorcoach tour operators: Tour operators that own their own motorcoaches.
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Motorcoach: A large, comfortable bus that can transport travelers and their luggage long distances.
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Multi-day tour: A travel package of two or more days. Most multi-day tours are escorted, all-inclusive packages.
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Murder-mystery tour: A tour that features a staged "murder" and involves travelers in solving the crime.
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Mystery tour: A journey to unpublicized destinations in which tour takers aren’t told where they will be going until en route or upon arrival.
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N
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National tourism organization (NTO): A federal-government-level DMO that promotes country as a travel destination.
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Needs: Those aspects of the life a person can’t do without.
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Net wholesale rate: A rate usually slightly lower than the wholesale rate, applicable to groups of individuals when a hotel is specifically mentioned in a tour brochure. The rate is marked up by wholesale sellers of tours to cover distribution and promotion costs.
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Niche market: A highly specialized segment of the travel market, such as an affinity group with a unique special interest.
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No show: A guest with confirmed reservations who does not arrive and whose reservation was not canceled.
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O
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Objective and task method: A process for creating a promotion budget that sets objectives first, then defines the tasks needed to achieve those objectives, and then commits funds necessary to perform the tasks.
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Occupancy: The percentage of available rooms occupied for a given period. It is computed by dividing the number of rooms occupied for a period by the number of rooms available for the same period.
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Off peak: Slow booking periods for suppliers. Also called the low season.
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On-site guide: A tour guide who conducts tours of one or several hours’ duration at a specific building, attraction, or site.
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Open-end question: A question that allows the respondent to provide a free-response answer.
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Open-jaw intinerary: A travel routing design that departs from one location and returns to another. For example, travelers may fly into one city and depart from another one. Or a traveler may purchase round-trip transportation from the point of origin to one destination, at which another form of transportation is used to reach a second destination, where the traveler resumes the inital form of transportation to return to the point of origin.
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Opertations: Performing the practical work of operating a tour or travel program.
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Operator: See Tour Operator.
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Optionals: Optional tour features that are not included in the base tour price, such as sightseeing excursions or special activities.
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Outbound operator: A company that takes groups from a given city or country to another city or country.
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Outbound tour: A tour that takes travelers out of the area, usually from a domestic city to another country.
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Overbook: Accepting reservations for more space than is available.
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Overhead: Those fixed costs involved in regular operations, such as rent, insurance, management salaries, and utilities.
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Override: A commission over and above the normal base commission percentage.
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Packaged travel: A package in combination of two or more types of tour components into a product which is produced, assembled, promoted and sold as a package by a tour operator for an all-inclusive price.
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Passenger vessel: Ships, yachts, ferries, boats, etc.
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Patronage Program: A program that rewards the customer for loyalty and repeat purchase, such as frequent-flyer programs.
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Peak season: A destination’s high season when demand is strong. Also called the high season.
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Per-capita costs: Per-person costs.
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Per-capita tour: See scheduled tour.
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Perceived value: The ratio of perceived benefits to perceived price.
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Port of entry: Destination providing customs and immigration services.
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Porter: A person who handles luggage at an airport, train station, etc.; also called skycap or baggage handler.
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Positioning strategy: The development of a clear, unique, and attractive image for a company and/or product in the minds of target customers.
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Pre-deduct commission: When a distributor such as a travel agent takes up front the commission on a sale and sends the supplier the balance of the sales price.
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Preferred Supplier: The selection of specific supplier(s) for priority promotion to customers and/or integration in travel packages in exchange for reduced rates and/or higher commission.
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Preformed group: A pre-existing collection of travelers, such as affinity groups and travel clubs, whose members share a common interest or organizational affiliation.
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Pre- and post-trip tour: An optional extension or side trip package before and/or after a meeting, gathering, or convention.
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Primary research: The collection of data specifically to solve the marketing problem at hand.
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Profit margin: A dollar value that represents the markup of a product’s price over its costs.
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Promotion mix: Promotion tools including advertising, direct marketing, sales promotion, and public relations.
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Promotional group tour: A travel package composed of tour elements that match the specific needs and wants of niche customers who aren’t part of an organized or preformed group.
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Promotional partnership: The combination of two or more companies to offer special incentives to customers.
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Property: A specific lodging structure, such as a hotel, and the ground on which it is built.
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Protection overbooking: The practice of blocking space that will likely be in excess of what will actually be needed.
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Psychographics: Measures of a person’s lifestyle. See also AIO variables.
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Public relations (PR): A management function that determines the attitudes and opinions of an organization’s publics, identifies its policies with the interests of its publics, and formulates and executes a program of action to earn public understanding and goodwill.
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Public tours: See scheduled tour.
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Pull strategy: A marketing approach that creates demand at the customer level by generating awareness, interest, and desire so customers pull a product through a distribution channel by demanding it.
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Push strategy: A marketing approach that creates demand at the distributor level by providing resellers with an incentive to push (sell) a product to end consumers.
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Q
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Query: The process of sorting and retrieving information from a database.
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Quota sample: A research sample that involves forming groups based on certain characteristics. A random sample can then be selected form the quota segments.
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R
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Rack rate: The published (brochure) rate for a travel component.
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Reach: The measure of how many people in a market will be exposed to a certain advertisement via a specific medium.
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Reasonable number: A forecast of the break-even point for a tour.
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Receptive tour operator: Receptive Tour Operators are defined as United States-based companies which specialize in creating, marketing, and selling United States travel products to International Inbound travelers. Receptive Tour Operators have unique knowledge of the countries they serve and of the destinations they sell. A Tour Operator shall be considered a Receptive when the majority of its revenue is derived from Inbound International travelers to the United States.
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Relationship marketing: The process of building and nurturing ongoing, solid relationship with customers.
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Research constraints: Those issues, such as cost and timing, that will limit the scope of marketing research.
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Reseller: See retailer and wholesaler.
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Reservation fee: A customer payment for a certain percentage of the travel package price that’s made immediately after booking.
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Retail price: The actual price a cusotmer pays for a travel element or tour.
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Retail tour: See scheduled tour.
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Retailer: A middleman, such as a travel agent, who sells directly to the customer.
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Room rates: The various rates used by lodging properties to price rooms. These include: day rate (usually one half the regular rate for a room used by a guest during the day up to 5 p.m.-sometimes called a use rate), flat rate (a specific room rate for a group agreed upon by the hotel and group in advance), group rate (same as flat rate), netgroup rate ( a wholesale rate for group business to which an operator may add a markup if desired), net wholesale rate ( a rate usually lower than the group rate and applicable to groups or individuals when a hotel is specifically mentioned in a tour folder), and published rate ( a full rate available to or advertised to the public-also called the rack rate.)
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Rooming list: A printout of the names of all tour participants that also lists special lodging requests and provides a spot for the hotel or cruise ship to fill in the passenger’s room number.
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Run-of-the-house rate: A flat rate for which a lodging property agrees to offer any of its available rooms to a group. Final assignment of the rooms is at the discretion of lodging management.
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Sales margin: A term used by resellers to describe profit as a percentage of sales revenue.
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Sample: The portion of a population chosen to represent the population being studied for research.
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Scandals tour: A light-hearted history tour that shows locations where interesting scandals took place.
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Scheduled flights: Air flights that are publicly scheduled and promoted by major airlines.
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Scheduled tour: A tour that’s set in a tour operator’s regular schedule of tour departures and that’s often sold to the general public. Also called public tour or retail tour.
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Secondary information: Research data that was collected by another company or person and usually for a purpose that’s different than the research objectives and tasks at hand.
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Shells: Preprinted brochures with photos, illustrations, and graphics but no text; also called slicks.
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Shore excursion: A land tour, usually available at ports of call, sold by cruise lines or tour operators to cruise passengers.
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Shoulder season: Those periods between the peak and off season when destination demand is moderate.
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Sightseeing companies: Organizations that provide local guided tours
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Sightseeing guide: See driver/guide.
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Sightseeing tour: Short excursions of usually a few hours that focus on sightseeing and/or attraction visits.
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Simple random sample: A sample that draws a group of respondents randomly from all members of the population.
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Special event tour: A travel package that features major happenings, such as concerts or sporting events, as the reason for the journey.
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Split itinerary: An itinerary in which part of the group does one thing while the other part does something else.
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Step-on guide: A tour guide who boards a motorcoach to give detailed, expert commentary about the city or area being visited.
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Strategic plan: A report that describes a company’s mission statement, goals, objectives and strategic actions.
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Subcontractor: A local operator who provides services for a wholesaler.
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Supplier: The actual producer and seller of travel components.
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SWOT analysis: A summary of a company’s strengths and weaknesses, and the environmental opportunities and threats that will most influence it.
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Target market: The group of customers who will be the focus of a company’s marketing efforts.
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Tariff: (1) Fare or rate from a supplier; (2) Class or type of a fare or rate; (3) Published list of fares or rates from a supplier; (4) Official publication compiling rates or fares and conditions of service.
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Telemarketing: Direct marketing via the telephone.
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Terminal: A building where clients report for trips via train, plane, etc.; also called a depot or a station.
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Theme tour: A tour that’s designed around a concept of specific interest to the tour takers, such as history or sports.
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Tickler system: A method for monitoring reservations and payments that’s arranged by date and points out late payments so customers can be contacted.
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Tiered pricing: When suppliers offer different prices to receptive operators, tour operators, and group leaders, so each party can earn a profit by marking up the supplier's price while still offering a fair price to customers.
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Tiered override plan: When commissions rise proportionately with a corresponding increase in sales.
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Tour: A prearranged, prepaid journey to one or more destinations that generally returns to the point of origin, is usually arranged with an itinerary of leisure activities, and includes at least two travel elements.
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Tour broker: See tour operator.
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Tour catalog: A publication by tour wholesalers listing their tour offerings. Catalogs are distributed to retail agents who make them available to their customers. Bookings by retail agents are commissionable.
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Tour conductor: See tour director.
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Tour departure: The date of the start by any individual or group of a tour program or, by extension, the entire operation of that single tour.
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Tour director: Also called tour manager, tour conductor, and tour escort. The person who is responsible for a group on tour and for most aspects of a tour’s execution.
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Tour escort: See tour director.
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Tour guide: A person qualified (and often certified) to conduct tours of specific locations or attractions. See also step-on guide, city guide, on-site guide, and docent.
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Tour manager: See tour director.
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Tour manual: A compendium of facts about a destination, tour procedures, forms, and other information that a tour operator gives to its tour directors.
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Tour menu: A menu that limits group clients to two or three choices.
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Tour operator: A person or company that contracts with suppliers to create and/or market a tour and/or subcontract their performance.
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Tour planner: A person who researches destinations and suppliers, negotiates contracts, and creates itineraries for travel packages.
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Tour order: A voucher given to the purchaser of a tour package that identifies the tour, the seller, and the fact that the tour is prepaid. The purchaser then uses this form as proof of payment and receives vouchers for meals, porterage, transfers, entrance fees, and other expenses. See also voucher.
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Tour rate: See group rate.
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Tour series: Multiple departures to the same destination throughout the year.
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Tourism: The business of providing marketing services and facilities for leisure travelers.
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Tracking study: A survey of customers before and after implementing a promotion campaign to assess changes in consumer behavior.
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Transfer: Local transportation and porterage from one carrier terminal to another, from a terminal to a hotel, or from a hotel to an attraction.
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Transit visa: A visa allowing the holder to stop over in a country or make a travel connection or a brief visit.
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Transportation: Any method of moving travelers from one point in a journey to another, such as air, ship, rail, and motorcoach travel.
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Travel agent: A person or firm qualified to arrange for lodging, meals, transportation, cruises, tours, and other travel elements
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Travel component: Transportation, lodging, dining, attractions, entertainment, guide services, and other travel elements offered as part of a travel package.
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Trip director: An escort for an incentive company. Larger companies reserve this title for the person who directs all personnel and activities for a particular incentive trip.
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Turnaway: A potential reservation that couldn’t be satisfied because the tour (or hotel, ship, etc.) was fully booked.
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Upgrade: To move to a better accommodation or class of service.
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Value season: See off season.
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Value: The relationship between the benefits associated with a product or service and the costs of obtaining the product or service. See also perceived value.
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Value-added tax: (VAT): A type of tax system which adds a fixed percentage of taxation on products and services at each step of production or service delivery.
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Value-based pricing: Pricing a product based on buyer perceptions of value rather than actual product costs.
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Variable costs: Costs that change with sales or production levels.
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Variance report: A summary of how much a company has gone above or below budget.
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Visa: Stamp of approval recorded in a traveler’s passport to enter a country for a specific purpose.
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Volume incentive: See override.
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Volume purchase: The purchase of large quantities of a product or service.
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Voucher: Documents that are exchanged for goods and service to substantiate payment that will be or already has been made.
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Waitlist: A list of clients awaiting transportation or accommodations at times when they are not available. Waitlisted clients are confirmed as a result of subsequent cancellations.
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Wants: Ways in which a person satisfies a basic need.
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Wholesale: Sale of travel products through an intermediary in exchange for a commission or fee generally at reduced tariffs.
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Word-of-mouth promotion: Personal communication about a product or service from one customer to another.
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Yield management: Calculating and analyzing the profits earned per customer.
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