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net wholesale rate: a rate usually slightly lower than the wholesale rate, applicable to groups when components are specifically mentioned in a tour brochure. The rate is marked up by wholesale sellers to cover tour costs.
no show: guest with confirmed reservations who does not arrive and has not canceled
No-frills: A low-cost scheduled travel package based on minimising operator service and costs, which are passed to the consumer as a low price.
Non-profit: Non-profit organisations are those which are driven by non-financial organisational objectives, i.e. other than for profit or shareholder return.
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.
off-peak: a period in which a hotel or attraction is not in its busiest season
Off-site management: Provision of pre-visit (or otherwise off-site) educational and interpretive materials to raise awareness of management issues and encourage minimal impact behaviour.
on-demand public transportation: transportation services, such as taxicabs that do not have regular schedules
On-site assessment: A site-visit by a quality systems member to verify material submitted during the accreditation application.
On-site management: Management of visitor impacts and behaviour on-site through the use of signs, formed tracks or board-walks, barriers and the physical presence of management staff.
open jaw: an arrangement, route, or fare, authorized in a tariff, granting the traveling public the privilege of purchasing round-trip transportation from the point of origin to one destination, at which another form of transportation is used to reach a second destination, where a passenger resumes the initial form of transportation to return to the point of origin. Used for airline travel mainly
Operations management: "The ongoing activities of designing, reviewing and using the operating system, to achieve service outputs as determined by the organization for customers" (Wright, 1999).
operations: performing the practical work of operating a tour or travel program. Operations usually involves the in-house control and handling of all phases of the tour, with both suppliers and clients.
option date: the date agreed upon when a tentative agreement is to become a definite commitment by the buyer
option: tour feature extension or side trip offered at extra cost
Organisation: A deliberate arrangement of people to achieve a particular purpose
outbound operator: a company which takes groups from a given city or country to another city or county
outbound tour: any tour that takes groups outside a given city or country, opposite of inbound
outfitter: a business that provides services or equipment at a recreational facility
overbook: accepting reservations for more space than is available
override: a commission over and above the normal base commission percentage
pacing: The scheduling of activities within an itinerary to make for a realistic operation and give a certain balance of travel time, sightseeing, events and free time
package tour: a combination of several travel components provided by different suppliers, which are sold to the consumer as a single product at a single price
package: (1) pre-arranged combination of elements such as air, hotel, sightseeing, and social events put together and sold at an all-inclusive package price; (2) to package, meaning to combine elements as above into an all-inclusive package product
packager: an individual or organization that coordinates and promotes the package tours and establishes operating guidelines for the tour
passport: government document permitting a citizen to leave and re-enter the country
pax: industry abbreviation for passengers
peak fare, rate, or season: highest level of charges assessed during a year
Perishability: The characteristic of being perishable. In tourism the term is used to describe, for example, a particular hotel room on a specific night or a particular seat on a specific flight: they cannot be 'stored' and sold later, so they are perishable.
Personal disposable income: The amount an individual has left over for personal expenditure on goods and services, after payment of personal direct taxes, national insurance and pension contributions.
Person-trip: A Person-trip for non-residents begins each time a non-resident traveller enters Canada. The person-trip concludes when the traveller leaves Canada. For residents, each time a person departs from Canada a person-trip begins. It ends when the traveller returns to Canada.
Physical evidence: The tangible evidence of a service, including everything which can be seen, touched, smelt and heard.
Pollution: Harmful effects on the environment as a by-product of tourism activity. Types include: air; noise; water; and aesthetic.
port of entry: point at which persons enter a country where customs and immigration services exist
Positioning: The process of ensuring potential customers have a desired perception of a product or service, relative to the competition.
pre- and post-trip tours: optional extension packages before or after a meeting, tour or convention
pre-formed group: a tour group in existence prior to the tour, the members of which share a common destination and purpose
Price elasticity of demand: A measure of the variability that can be expected in sales when prices are changed. Unity elasticity would see equal increase in sales to in reaction to a decrease in price. Inelastic demand would not change when prices went down or up.
Price elasticity of demand: A relationship between the changes in prices charged for a good or service (here taken as hotel rooms) and the change in the amount demanded.
pricing: decision-making process of ascertaining what price to charge for a given tour, once total costs are known. Pricing involves determining the markup, studying the competition, and evaluating the tour value for the price to be charged; function performed by the operations manager.
primary market: a country in which the US Travel & Tourism Admin (USTTA) maintains an office
Process control: A systematic use of tools to identify significant variations in operational performance and output quality, determine root causes, make corrections and verify results (Evans and Lindsay, 1999:345).
Process design: Involves specifying all practices needed, flowcharting, rationalisation and error prevention (Rao et. al., 1996:540-541).
Process improvement: A proactive task of management aimed at continual monitoring of a process and its outcome and developing ways to enhance its future performance (James, 1996:359).
Process management: Planning and administering the activities necessary to achieve a high level of performance in a process and identifying opportunities for improving quality, operational performance and ultimately customer satisfaction. It involves design, control and improvement of key business processes (Evans and Lindsay, 1999:340).
Process: "A set of interrelated or interacting activities which transforms inputs into outputs" (ISO, 2000a:7).
Product: "The result of a process" (i.e. output), which may be either a service, or a good (hardware or processed materials) or software (e.g. information) or their combination (ISO, 2000a:7)
Profit: The excess of revenue over expenses, if expenses exceed revenues in a given period the organisation will make a loss.
proof of citizenship: a document, necessary for obtaining a passport, that establishes one s nationality
Protected area: Any area of land and/or sea dedicated to the conservation, protection and maintenance of biodiversity and natural and cultural resources, which is managed through legal or other means.
protected: guarantee by a supplier or wholesaler to pay commissions, plus all refunds to clients, on pre-paid, confirmed bookings regardless of subsequent cancellation of a tour or cruise.
Public policy: Is whatever governments choose to do or not to do (Thomas Dye 1992: 2). Such a definition covers government action, inaction, decisions and non-decisions as it implies a very deliberate choice between alternatives (see Hall and Jenkins 1995).
Quality: The degree to which a set of inherent characteristics of a product fulfils customer requirements (ISO, 2000a).
Qualmark: Classification and grading system for the New Zealand tourism industry, using 5 star system.
rack rate: regular published rate of a hotel or other travel service
Rack Rate: Retail price of accommodation, airfares, activities/attractions.
Regulation: Control through formalised processes.
release: (1) signed form giving the tour operator permission to use a person s name, picture or statement in an advertisement; (2) to give up space, as in returning unsold airline reservations
Renewable energy: Energy sources that are practically inexhaustible. For example solar, hydro and wind energy.
Requirements: Stated, generally implied (as a custom or common practice for the organisation, its customers and other interested parties) or obligatory needs (ISO, 2000a).
resort: a hotel, motel or condominium complex located in an area associated with recreation and leisure, such as the mountains or the seashore. Normally offer facilities for sports and recreational activities.
responsibility clause: that section of a brochure that spells out the conditions under which a tour is sold. The clause should name the party responsible for the tour financially.
Responsible tourism: Type of tourism which is practised by tourists who make responsible choices when choosing their holidays. These choices reflect reponsible attitudes to the limiting of the extent of the sociological and environmental impacts their holiday may cause.
Restoration: Returning existing habitats to a known past state, or to an approximation of the natural condition, through repairing degradation, removing introduced species, and revegetating using native locally occurring species.
retailer: (1) travel agents or (2) one who sells directly to the consumer
Revenue expenditure: The cost of resources consumed or used up in the process of generating revenue, generally referred to as expenses.
Revenue management: Revenue management is a management approach to optimising revenue, often based on managing revenues around capacity and timing (yield management), for different market segments or from different sources of funding.
risk monies: funds that an agency would not recoup should a tour not take place, such as nonrefundable deposits, promotional expenses, and printing costs
room rates: day rate: usually one-half the regular rate for a room during the day up to 5 pm; flat rate: a specific room rate for a group agreed upon by the hotel/group in advance; group rate: rate based on an agreed upon minimum number of rooms used, also called flat rate; net group rate: a wholesale rate for group business (usually a minimum of 10 and 15 people) to which an operator may add a markup if desired; net wholesale rate: a rate usually lower than the group rate, applicable to groups or individuals when a hotel is specifically mentioned in a tour folder; published rate: a full rate available to or advertised to the public, The rate can change, depending upon the season. Also known as rack rate.
room service: food or beverages served in a guest’s room
rooming list: the list of names or passengers on a tour or other group travel program, submitted to a hotel/motel. The names are not alphabetized as on a flight manifest, but rather room by room indicating who is rooming with whom. Twin-bedded rooms, singles and triples are usually listed in separate categories.
run-of-the-house rate: flat rate for which a hotel or motel agrees to offer any of its available rooms to a group. Final assignment of the rooms is the discretion of the hotel.
Sales: Revenue from ordinary activities: not necessarily cash.
Seasonality: A phenomenon created by either tourism supply or demand (or both) changing according to the time of the year.
sector: a part or branch of the whole industry that provides particular goods and/or services
series operator: a travel agent, wholesaler, tour operator, or broker who blocks space in advance for a series of movements over a given period of time, not necessarily on a back-to-back basis
service: work done for the benefit of another
service charge: (1) a specified percentage of a hotel’s daily rate (usually 10% or 15 %) charged to the guest, who in return is relieved of the responsibility for tipping; (2) a fee charged to a client by a travel agent in addition to the commissions paid to him or her by the principals
service delivery: the manner in which customer needs are met
Service encounter: The moments of interface between customer and supplier
Service marketing mix: The addition of People, Physical Evidence and Process to the four areas of activity more usually associated with marketing products,: Price, Place, Promotion and Product.
service provider: a person or company that supplies a particular service
service: non-physical, intangible attributes that management controls, including friendliness, efficiency, attitude, professionalism, and responsiveness.
Servicescape: The location in which the service encounter takes place
shore excursion: a land tour, usually available at ports of call and sold by cruise lines or tour operators to cruise passengers
short haul: 1-3 hour flight
shoulder season: period when there is neither a high nor low demand for a destination, usually falling in the spring or fall months for most areas
single supplement: an extra charge assessed to a tour purchased for single accommodations
site destination selection company: company that investigates and suggests potential meeting sites to suit corporate or association needs
Skills gaps: Employers perceive existing employees have lower skill levels than needed to achieve business objectives, or where new, apparently trained and qualified for specific occupations, entrants still lack requisite skills.
Skills shortages: Lack of adequately skilled individuals in the labour market due to low unemployment, sufficiently skilled people in the labour market but not easily geographically accessible or insufficient appropriately-skilled individuals.
Small business: A small business is one which has a small number of employees, profit and/or revenue. Often these are owner-managed, with few specialist managers. Some definitions of small businesses distinguish between businesses with under 10 employees, which are micro-businesses, and those with 10-49 employees, which are classified as small businesses.
SME(s): Small and Medium Enterprises
Social: Relating to human society and interaction between its members.
souvenir: a product purchased by a tourist as a reminder of a holiday
special event tour: a tour designed around a particular event, e.g.: Mardi Gras
special interest tour: a tour designed to appeal to clients with a curiosity or concern about a specific subject. Most special interest tours provide an expert tour leader and usually visit places and/or events only relevant to that interest.
special market: a foreign country with high potential for US inbound travel which does not have an office of the US Travel and Tourism Administration (USTTA).
Stakeholder: Any person, group or organisation with an interest in, or who may be affected by, the activities of another organisation.
state travel office: an official government agency or privately run, non-profit organization responsible for travel development and promotion of a state or province
State: 'The state' is a set of officials with their own preferences and capacities to effect public policy, or in more structural terms a relatively permanent set of political institutions operating in relation to civil society' (Nordlinger 1981, in Hall and Jenkins 1995). The state includes elected politicians, interest or pressure groups, law enforcement agencies, the bureaucracy, and a plethora of rules, regulations, laws, conventions and policies.
Statute: The law as made by parliament, e.g. in the UK, the Disability Discrimination Act (1995). A statute is made up of many parts called 'sections' or 'provisions'.
Statutory instrument: The vast majority of delegated legislation in the UK is in the form of statutory instruments governed by the Statutory Instruments Act 1946
step-on guide: an independent guide who comes aboard a motorcoach to give an informed overview of the city or attraction to be toured
Strategic information systems: Systems designed to support the strategic management decision processes and implementation.
Strategy pyramid: A visual way of representing the different levels of the strategy conceptualisation and implementation process. The most general assumptions are shown at the apex and the practical, implementation actions are at the base.
subcontractor: a local operator who provides services for a wholesaler
supplier: the actual producer of a unit of travel merchandise or service such as a hotel or restaurant
Suppliers: Individuals, companies or other organisations which provide goods or services to a recognisable customer or consumer.
surety bond: insurance to guarantee that an insure will carry out the specific work he or she was hired to do
sustainable: something which can be kept in the same or a better condition for the future
Sustainable development: Development carried out in such a way as to meet the needs of the present without compromising the ability of future generations to meet their needs.
Sustainable tourism: According to the World Tourism Organisation, this is "envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled with maintaining cultural integrity, essential ecological processes, biological diversity, and life support systems."
Sustainable tourism: Tourism that can be sustained over the long term because it results in a net benefit for the social, economic, natural and cultural environments of the area in which it takes place.
Sustainable tourism: Tourism that is economically, socioculturally and environmentally sustainable. With sustainable tourism, sociocultural and environmental impacts are neither permanent nor irreversible.
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
themed tour: a tour designed around a specific theme such as fall foliage, also a special interest tour
tour basing fare: a reduced-rate excursion fare available only to those who buy pre-paid tours or packages. Tour basing fares include inclusive tours, group inclusive tours, incentive tours, contract bulk inclusive tours, and group round-trip inclusive tours.
tour broker: a person or company which organizes and markets tours
tour catalog: a publication by tour wholesalers listing their tour offerings
tour conductor: see tour manager/director
tour consultant: individual within an agency selling and advising clients regarding a tour. The consultant is sometimes a salesperson with particular expertise in escorted tour sales.
tour departure: the date of the start by any individual or group of a tour program, also used in referral to the entire operation of that single tour
tour escort: the tour company staff member or independent contractor who conducts the tour. Often called the tour manager or tour director. It is technically a person that only escorts the group and does not have charge of the commentary portion.
tour leader: usually a group leader, also see escort
tour manager: a person employed as the escort for a group of tourists, usually for the duration of the entire trip, perhaps supplemented by local guides. The terms tour director, leader, escort,
tour manual: (1) a summary of facts about a company s rules, regulations, and official procedures; (2) a compendium of facts about a destination, including its attractions, accommodations, geography, and special events, used by destination marketing organizations to attract tour operators and visitors and their area
tour menu: a menu that limits group clients to two or three choices at a special price
tour operator: a person or company which creates and/or markets inclusive tours and subcontracts with suppliers to create a package. Most tour operators sell through travel agents and/or directly to clients.
tour option: any component of a package tour that is not included in the package price, but may be purchased as an added feature to extend the length of the package or enhance the trip.
tour order: a coupon given to the purchaser of a tour package, identifying the tour, the seller, and the fact that the tour is pre-paid. It is used as a form of proof of payment and receives vouchers for meals, porterage, transfers, entrance fees, and other expenses. Also see tour vouchers.
tour organizer: person who locates and creates groups for preformed tours. The tour organizer is often compensated only with a free trip
tour vouchers: documents issued by tour operators to be exchanged for tour components, also called coupons
tour: any pre-arranged journey to one or more destinations
tourism: the all-embracing term for the movement of people to destinations away from their place of residence for any reason other than following an occupation, remunerated from within the country visited, for a period of 24 hours or more
Tourism Commodity: Tourism Commodity is one for which a significant part of its total demand in Canada comes from visitors.
Tourism Demand: Tourism Demand is defined as the spending of Canadian and non-resident visitors on domestically produced commodities. It is the sum of tourism domestic demand and tourism exports.
Tourism Domestic Demand: Tourism Domestic Demand is the spending in Canada by Canadian visitors on domestically produced commodities.
Tourism Employment: Tourism Employment is a measure of employment in tourism and non-tourism industries. It is based on an estimate of jobs rather than “hours of work”. Thus, someone who works 10 hours a week counts for as much, by this measure, as someone who works 50 hours a week.
Tourism Exports: Tourism Exports is spending by foreign visitors on Canadian-produced goods and services. It includes spending that may take place outside of Canada, for instance, the purchase of an airline ticket from a Canadian international carrier, to travel to Canada.
Tourism flows: The major movements of tourists from specific home areas to destinations.
tourism geography: the knowledge of countries, regions, major cities, gateways, famous icons, monuments, building structures, and geographical features such as rivers, seas, mountains, deserts and time zones
Tourism income multiplier (TIM): Exaggerated effect of a change in tourism expenditure on an area's income.
tourism industry: a group of businesses that provide services and facilities for consumption by tourists
Tourism Industry: Tourism Industry is an industry that would cease to exist or would continue to exist only at significantly reduced levels of activity in the absence of tourism.
tourism infrastructure: roads, railway lines, harbours, airport runways, water, electricity, other power supplies, sewerage disposal systems and other utilities to serve not only the local residents but also the tourist influx (suitable accommodation, restaurants and passenger transport terminals form the superstructure of the region)
tourism product: different things to the various members of the tourism industry. To the hotel it is `guest- nights'. To the airline it is the `seats flown' and the `passenger miles'. To the museum, art gallery or archaeological site, the product is measured in terms of the number of visitors. For the tourist the product is the complete experience resulting from the package tour or travel facility purchased, from the time they leave home until their return.
Tourism satellite account: System of accounting at national or regional level which reveals the total direct impact of tourism on the economy.
Tourism System: A framework that identifies tourism as being made up of a number of components, often taken to include the tourist, the tourist generating region, the transit route region, the tourist destination and the tourism industry (Leiper, 1990)
tourism: the business of providing and marketing services and facilities for leisure travelers. Thus, the concept of tourism is of direct concern to governments, carriers, and the lodging, restaurant, and entertainment industries, and of indirect concern to virtually every industry and business in the world.
Tourism: The definition of tourism used in the national tourism indicators (NTI) is that adopted by the World Tourism Organization and the United Nations Statistical Commission: “the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.”
tourist: one who travels for a period of 24 hours or more in a place other than that in which he or she usually resides, whose purpose could be classified as leisure (whether for recreation, health, sport, holiday, study or religion), business, family, mission or meeting
Tourist attractions: Tourist attractions are defined as being destinations for visitors' excursions which are routinely accessible to visitors during opening hours. Visitors can include local residents, day-trippers or people who are travelling for business or leisure purposes. Formal definitions exclude shops, sports stadia, theatres and cinemas, as these meet a wider purpose, although in practice tourists may consider the excluded categories to be tourist attractions.
tourist card: a kind of visa issued to tourists prior to entering a country (required in addition to a passport or other proof of citizenship).
tourist facility: a feature created for utilisation by tourists
tourist route: a route developed to attract tourists to an area to view or experience something unique to that area (e.g. wine route, whale route, heritage route, battlefield route)
tourist trend: a general tendency to visit a country, region or destination or to pursue a specific tourist activity
Tourist: Anyone who spends at least one night away from home, no matter what the purpose.
TOWS matrix: Uses a SWOT analysis to develop strategies by matching strengths with opportunities, using opportunities to reduce weaknesses, using strengths to overcome threats, and reducing weaknesses and avoiding threats.
Tracking Research: Ongoing research conducted at regular intervals to track changes in specific factors, for example, potential customers' intention to travel to NZ.
tracking: a cause of action or method of monitoring, such as tracking the number of tours that come into a specific destination
transfer: local transportation, sometimes including porterage, as from one carrier terminal to another, from terminal to a hotel, or from a hotel to an attraction
transit visa: visa allowing the holder to stop over in a country to make a travel connection or brief visit
transit: process of changing planes without going through security and/or customs
travel agent/agency: a person or firm qualified to arrange for all travel components
trip director: an escort for an incentive company. Larger companies reserve this title for the person who directs all personnel and activities for a trip.
upgrade: to move to a better accommodation or class of service
value season: a time of year when prices are lower than peak, also called low or off-season
Variability: Because the production and the consumption of a tourism experience are inseparable and because differing circumstances and people will affect each experience, those experiences are prone to variance and create a challenge for tourism managers to achieve consistency of standards.
variable cost: a cost that changes according to how many people take a tour, such as motorcoach expenses
VAT/TVA/MWS/GST: acronyms for value-added tax, a tax system which adds a fixed percentage of taxation on products and services at each step of production or service delivery. Common in Europe and Canada.
Virtual organisation: Organisation in which major processes are outsourced to partners.
visa waiver: a program to eliminate the visa requirement for selected countries
visa: stamp of approval recorded in a passport to enter a country for a specific purpose
Visitors: A broader category than 'tourist', includes tourists and same-day visitors.
Visitors: Visitors are persons who undertake tourism as defined above. They are referred to as either tourists (those who stay overnight or longer in the place visited), or same-day visitors.
volume incentive: see override
waitlist: list of clients awaiting transportation or accommodations at times when they are not available, confirmed as a result of subsequent cancellations
wholesaler: a company that usually creates and markets inclusive tours and FITs for sale through travel agents. Although the term is used often as a synonym for tour operator there are several distinctions: (1) presumably sells nothing at retail while a tour operator often does both; (2) does not always create his/her own products, while a tour operator always does; (3) is less inclined than a tour operator to perform local services.
Working Capital: Operational assets and liabilities needed for everyday operation, e.g. cash or bank overdraft, stock and trade creditors, known as net current assets/liabilities.
World Heritage Area: Land of cultural and/or natural significance inscribed on the World Heritage List.
world heritage site: a site designated by UNESCO as being of special historical, cultural or natural importance
Yield Management: "A revenue maximization technique which aims to increase net yield through the predicted allocation of available … capacity to predetermined market segments at optimal price" (Donaghy et al., 1997a).
Zoning: Different eco-systems may be zoned in terms of their robustness to pressures from tourism in an attempt to mitigate environmental damage.
Potential areas for investment
Tourist Accommodation & Services (Hotels / Resorts / Villas/ Higher-end restaurants)
Leisure & Recreational (Golf Course, Entertainment Complexes, Theme Parks, Tourist
Shopping Complexes, Eco-Lodges, Camping, Whale & Dolphin Watching, water Sports)
Adventure & Eco Tourism (Adventure parks)
Transportation (Yacht Marina, Coastal Ferry Services, Cruise Lines)
Skill Development: Hotel / Hospitality Training Institutes