Speaking The Lingo

<H1> Speaking The Lingo</H1><I>The following glossary was recently developed by the National Business Travel Association's airline committee as a set of basic terms for negotiating multinational airline contracts. <I>BTN</I> invites your comments and suggestions for additional definitions that should be added to the list. Please fax responses to 212-279-3945.</I>

1. Origin And Destination Data

The key to understanding origin (beginning point of travel) and destination (end point of travel) data is recognizing that supplier O&D reports are not standardized. Keep in mind that a destination report should show either the connecting city or the ultimate destination.

For example, a traveler needs to fly to LAX for a meeting. He leaves from LGA (origination point), connects through ORD (connecting city) and ultimately arrives in LAX. What shows in your supplier reports, LAX or ORD? Hint: Reports are inconsistent and confusing.

2. Data Sources

a. Travel Agency Data: This is booked or reserved information only. It is a barometer of activity and should not be considered actual expenditures until reconciled with charge data.

With the advent of electronic reservations and electronic ticketing, extra caution should be taken with agency data for airline negotiations.

b. Airline Data: This information is actual tickets lifted by the carrier at the airport.

c. Charge Card Data: Other than expense reports, this is the most accurate measure of a company's travel expenditures. One point of caution: When comparing charge card data to travel agency data, recognize that the card cuts off on any number of different cycles that may not coincide with the ARC period (the cycle in which the agency data cuts off).

3. Origin And Destination

Also commonly referred to as legs. A segment is the unit of travel between point A and B, a single flight. Using the above example, LGA to ORD = 1 segment; ORD to LAX = 1 segment.

4. City Pairs

This can be defined exactly as origin and destination. The same precautionary advice prevails. Know the basis of data. Could destination be a connection and action point of disembarkation?

5. Ticketed Data Versus Flown Data

a. Ticketed Data: Ticketed data reflects gross information. It includes all ticket activities such as issues, reissues and refunds. Voids could also be part of this information, depending on the data captured.

b. Flown Data: Net or actual accounting airlines tickets used and reported. The airlines are the only source for flown data.

Reconciliation reports between the booking agency and the charge card provider as a result of information received from the airline are a check and balance of data.

6. Volume

This data measures the quantity in question. The key in defining and responding to concerns regarding volume is to understand the question: quantity of what?

a. Gross Air: With tax and commission

b. Net Air: Without tax and commission

7. Window Of Opportunity

In a travel program, this terminology usually refers to the time parameters that must be used when determining best pricing opportunities.

As an example, assume an organization has a two-hour window when booking airline reservations. When selecting a flight, one must look at lower fare opportunities that will not increase travel time by more than two hours in total (either side of departure or arrival). If preferred departure times are 9 a.m., then the window is not earlier than 7 a.m. and no later than 11 a.m. for departure.

8. Hub Markets

An airline's use of certain airports as centers for its connecting flights

9. Market Share

All suppliers look at their commodity and determine what percentage given to either party is known as market share. In negotiations, this is one of the most valuable pieces of knowledge both the buyer and the supplier should have.

10. Global Air Program

One agreement with an air carrier that addresses every point from which it operates.

11. Multinational Air Program

An umbrella agreement facilitated by a central point of focus. This type of program may be negotiated locally and typically addresses specific client requirements.