Traveling can be fun and Exciting and most travelers prepare by over- packing, double checking flights, finding the right hotels, and having a well thought out itinerary. What most travelers may not think about or know about- but should- are financial terms that can be helpful and lower costs while traveling. Here is a glossary of financial terms for travelers going anywhere in the world can use.
Add-on– Any additional experience/upgrade that can be bought for an additional base price. For example there may be add-ons for couples experience or a dining experience.
After Checkout/Departure Charge– There may be additional charges after checking out of a hotel.
Benchmarks/Benchmarking- This is a comparison against the places that offer the best in whatever service. People compare the cost, the service, the activities, standards to they travel- also known as benchmarking.
Booking Fee– A fee that is usually added onto online sale or booking. This fee covers costs such as credit card processing fees and customer service fees.
Booking Form- For certain activities while traveling the traveler will have to fill this form out which states; who is responsible for payment, what service is being purchased, and any liability clauses.
Conversion Rate- The fee associated with currency conversion for travelers.
Convenience Fee- This is a fee that can be attached to a lot of things while traveling but most o the time it is attached to using credit cards when traveling.
Day Rate– The amount a person pays for staying a place for the day, of they stay overnight or past the time agreed on it will cost them.
Departure Tax- This is a fee collected by the host country from the traveler at the time of departure.
Double Occupancy Rate- The price for the room to be shared with another person, the more people the more it will cost to stay.
Encrypted Payments– Secure forms of payments that are more protected than other forms, a great way to pay for things when traveling.
Eco-Tourism– Tourism that is built without harming than environment and its primary focus being to save and share the beauty of the environment. This type of tourism can be less expensive when traveling.
FAM Tour or Familiarized Tour– a reduced rate, or sometimes free tour for people who are travel agents, or work in the travel agency doing anything else related to it.
Full House- This is where a hotel has no vacancy, keep in mind if there is a special event this could become common in an area and cause hotel room prices to skyrocket.
Globalization– This is the spread of different cultures and business throughout the world. Globalization was what grounded the travel industry and it is important to know about.
Ground Package- The lowest rate for air fare while flying.
Guest Account- A record of all the charges and credits for traveler staying at a place, make sure to double check these when leaving.
High Season– The time of year where tourism is at its peak for a region. The prices for hotels and services usually increase around this time.
Incidentals– Charges that can be collected by traveler throughout the tour, which are not included in the tour price.
Independent Tour- A private tour sold from agencies to tourist, they include hotel, admission and car rentals.
Joint fare– A fee for travelers who take more than one airline
Joseph Effect– In the financial world, this is the tendency of certain times to have trends of cycles- traveling definitely has its cycles to pay attention to in order to save money.
Key Industry– An industry that plays a huge role in a nation’s economy. Traveling and tourism can help a nation get on its feet or improve.
Low Season– The time of year where tourism is at its lowest. This can mean great deals for travelers.
Length of Stay- The number of nights a traveler is staying.
Market Oriented Prices- Comparing prices between competitors.
Markup- the different between cost and selling price of a product
Net Whole Sale Rate– A rate for travelers that is lower than the whole sale rate.
No-frills– A low costing travel package without extras that some people do not want.
Outfitter– a business/company that provides equipment at a recreational area.
Override– A commission rate that is over the normal commission amount/percentage.
Perishable– In the finance world this is a particular set of services that ‘perish’ if not bought- for example a certain seat on a certain flight.
Personal Disposable Income– The amount of income a person has to spend after necessary expenses.
Quote– an estimate given before a purchase. Use these when comparing travel costs.
Run-of-the-house-rate– The flat rate a hotel agrees to offer its rooms, this is good for people who need a room immediately for a certain price.
Special Market– A foreign country with high US travel that does not have an office of the US Travel and Tourism Administration.
Tour Wholesaler– These agents offer lower prices and offer specialized tours to their customers.
Variable cost– costs that change based on the amount of participants.
Wholesaler- Someone who sells directly to other brokers. In the case of travel this is one travel broker to another.
Yield Management– In finances this is increasing or decreasing the price based on demand-airlines use this all the time.
Zoning– different environments may be zoned away from tourist’s destinations to protect them. So if there is a specific type of environment you want to see keep zoning laws in mind.
When traveling these financial terms may be extremely useful when trying to cut costs, or simply be more knowledgeable when traveling. Before booking anything be sure to know these financial terms that are related to all the different parts of traveling- everything from finding the right trip to renting a car at your destination.