The Travel Trade Glossary

An inbound tour operator handles the on-the-ground logistics for travellers arriving into a destination — accommodation contracts, transfers, guides, vehicles, permits and activities. Most inbound operators are also DMCs, although the terms are not strictly identical.

An outbound tour operator sits in the source market and sells trips to other destinations. They package travel from suppliers (DMCs, hotels, airlines) and sell to end consumers either directly or via a travel agent network.

In a tour operator context, a product manager is responsible for selecting suppliers, contracting rates, building product (itineraries, packages) and maintaining the operator’s offering for a given destination or theme. The product manager is the rep’s primary buying contact at most operators.

A rep company is a sales representation business that represents a portfolio of non-competing travel suppliers in a defined source market. The rep company handles trade sales, marketing, training and trade events on behalf of the supplier — usually for a monthly retainer plus performance incentives. Common in luxury safari, hotel and resort sectors.

A tour operator is a business that packages and sells travel — combining accommodation, transport, activities and transfers into a saleable trip. Outbound tour operators sit in the source market and sell to end consumers or via travel agents. Inbound tour operators (often called DMCs) sit in the destination and handle arrangements on the ground.

A travel agent advises and books travel on behalf of end consumers. Agents can be independent (often part of a host agency or consortium) or work for a retail travel brand. In the trade, "travel agent" is sometimes used interchangeably with "travel advisor" or "travel designer", though the latter terms imply a more bespoke, higher-touch service.

A travel designer is a high-touch travel agent who specialises in bespoke, custom-built itineraries — typically in the luxury or experiential travel sector. Travel designers usually operate independently or under a luxury consortium and charge planning fees in addition to commission.

A travel sales representative is a person who represents one or more travel suppliers — typically lodges, hotels, DMCs or activity providers — in a source market. Their job is to build awareness with the travel trade (tour operators, travel agents, travel designers) in that market, secure preferred-partner status where possible, and grow the supplier’s booking pipeline. Reps may work in-house for a single property or for a rep company that holds a portfolio of clients.

A bedbank is a B2B hotel accommodation wholesaler. Bedbanks (Hotelbeds, GetARoom, Webbeds) contract NET rates with hotels and resell to OTAs, tour operators and travel agents at a marked-up rate. Bedbanks are part of the indirect distribution chain.

A consortium is a network of independent travel agencies that pool buying power, share marketing programmes and negotiate preferred rates with suppliers as a group. Major luxury consortia include Virtuoso, Signature Travel Network, Ensemble and Internova. Consortia membership signals quality and gives suppliers a structured way to reach high-end agents at scale.

A DMC (Destination Management Company) is a professional services company in a destination that provides ground-handling, logistics, local expertise and on-the-ground support to inbound travellers. DMCs typically work with international tour operators and travel agents rather than selling direct to consumers. They handle accommodation contracts, transfers, guides, vehicles, permits and activities.

A host agency provides infrastructure (booking systems, accreditations, commissions processing, training) to independent travel advisors who would otherwise lack the scale to work directly with suppliers. Host agencies are common in the US market — examples include Travel Leaders, Avoya and Nexion.

An OTA is an online travel agency that sells travel directly to consumers via a website or app — Booking.com, Expedia, Hotels.com, Agoda are common examples. OTAs typically operate on a merchant model (they collect payment and remit net to the supplier) or an agency model (they take commission on the supplier-collected booking).

A TMC (Travel Management Company) handles corporate travel — managing business trips, expense policy, supplier negotiation and traveller wellbeing for corporate clients. TMCs are largely separate from the leisure travel trade, although large groups (American Express GBT, BCD Travel, CWT) maintain leisure divisions too.

A travel wholesaler sells trips and travel components to other travel businesses — typically tour operators and travel agents — rather than to end consumers. Wholesalers often hold contracted allotment with hotels and ground operators, and their published rates are NET (commission already accounted for).

An educational (or "edu") is essentially the same as a FAM trip — an industry trip where suppliers host trade partners to experience the product. The term "educational" is more common in the UK and certain European markets; "FAM" is more common in the US, Africa and Asia.

A FAM trip (familiarisation trip) is an industry trip where travel suppliers host travel agents, tour operator staff or media to experience a destination, property or product first-hand. FAMs are a core sales tool — the theory being that an agent who has visited a lodge sells it more confidently and accurately. Also called an educational or "edu".

FIT refers to a customised, individual trip booked by a tour operator or travel agent rather than a packaged group departure. FIT travellers travel on their own itinerary and pace, with bespoke arrangements for accommodation, guides and transport. FIT is the dominant model in luxury and tailor-made travel.

A GIT is a packaged group trip with a fixed itinerary, group departure date and inclusive pricing — often a coach tour or escorted package. GIT is the inverse of FIT and historically formed the bulk of mass-market international travel.

A roadshow is a travelling supplier event where a property, group of properties or destination tours multiple cities in a source market over a short period — typically presenting product to invited operators, agents and media at evening events. A common rep-led activity in the luxury travel sector.

A site inspection is a brief property visit by a trade buyer (operator, agent or rep) to evaluate accommodation, facilities and service standards. Site inspections are usually shorter and more transactional than FAM trips — typically a half-day or evening property visit during a business trip.

Allotment is a block of rooms or trip places contractually held for a wholesaler, tour operator or rep to sell, usually with a release date by which unsold inventory returns to the supplier. Allotments give the trade buyer guaranteed availability in exchange for commitment.

BAR (Best Available Rate) is the lowest publicly available rate at a hotel on a given date, typically refundable. BAR is the rate floor that hotels promise to OTAs and direct bookers under rate parity agreements — although in practice rate parity is increasingly fluid.

Commission is the percentage of a confirmed booking value paid to the trade partner who made the sale — typically the travel agent. Standard luxury hotel commission is 10%, with consortia preferred-partner properties often paying higher tiers (12-15%) to qualifying agents.

A contracted rate is a rate negotiated between a hotel or supplier and a specific trade partner (operator, wholesaler, consortia member) for a defined season and contract term. Contracted rates are typically more favourable than BAR and are usually NET.

A NET rate is a price quoted to a trade partner with the supplier’s margin and the partner’s commission already removed — meaning the trade partner is free to mark it up to whatever sells in the source market. NET rates are standard in the contracted wholesale and tour operator world.

The rack rate is a hotel’s published full price for a room — the rate before any contracted discount, promotion or commission. Rack rates rarely transact in the trade and exist mainly as a reference point for negotiating contracted and BAR rates.

Rate parity is the practice of a hotel maintaining the same publicly visible rate across all online distribution channels — its own website, OTAs, GDS and metasearch. Strict rate parity has eroded in recent years as hotels increasingly run direct-only promotions to defend margin against OTA commissions.

Connections is an invitation-only luxury travel trade event format that brings buyers and suppliers together in a hosted setting — typically a luxury venue with structured one-to-one meetings, shared experiences and a small number of attendees. Multiple Connections events run each year in different regions.

ILTM (International Luxury Travel Market) is the leading luxury travel trade event, held annually in December at the Palais des Festivals in Cannes. ILTM operates an invitation-only model with structured pre-scheduled appointments between luxury buyers and suppliers.

Africa’s Travel INDABA is the major Southern African travel trade show, held annually in May at the Inkosi Albert Luthuli ICC in Durban. INDABA is the primary B2B event for African tourism, bringing together buyers from around the world to meet suppliers from across the continent.

ITB (Internationale Tourismus-Börse) is the largest travel trade show in the world, held annually in March at Messe Berlin. Although it has both trade and consumer days, the trade days are the primary draw for the industry.

In the travel trade, an RFP is a formal request from a tour operator or corporate buyer asking suppliers to submit pricing, availability and product details for inclusion in a programme or annual contract. RFP season typically runs in Q3 for the following year’s programme.

A trade show is a B2B exhibition where suppliers (hotels, DMCs, destinations) meet buyers (operators, agents, media) over several days — usually with a structured appointment system, evening events and educational programming. Major travel trade shows include WTM London, ITB Berlin, Arabian Travel Market and INDABA.

WTM (World Travel Market) is a global travel trade show held annually in November at ExCeL London. WTM is one of the three largest travel trade events worldwide alongside ITB Berlin and Arabian Travel Market.

A rep’s portfolio is the set of suppliers (lodges, hotels, DMCs, activity providers) the rep represents in their source market. Portfolio composition matters enormously — properties expect a non-competing portfolio so the rep can advocate fairly without internal conflict.

A preferred-partner relationship between a supplier and a consortium, agency or operator gives the supplier elevated visibility and the trade partner higher commissions, marketing support and exclusive perks for clients (room upgrades, F&B credit, late check-out). Preferred status is the principal commercial outcome reps aim for.

A source market is a country or region from which travellers originate. Travel reps are usually positioned in a specific source market (UK, US, Germany, Australia, etc.) to develop trade relationships with operators and agents who sell into the rep’s destination.

A trade partner is any business in the travel distribution chain that buys, packages or sells travel — tour operators, travel agents, DMCs, wholesalers, consortia, host agencies. The term is used to distinguish B2B relationships from end-consumer relationships.

ASTA is the largest US association of travel agents and travel advisors, providing advocacy, education and certification for the profession. ASTA membership is a basic credential signal for many US travel agents.

ATTA (Adventure Travel Trade Association) is the global association for the adventure travel sector, hosting the annual Adventure Travel World Summit (ATWS) and the AdventureNEXT regional events. ATTA is the principal trade body for adventure-focused operators, lodges and destinations.

PATA (Pacific Asia Travel Association) is the principal trade body promoting tourism across the Asia Pacific region. PATA hosts the annual PATA Travel Mart and publishes industry research used widely across the region.

SATSA is the trade association representing the inbound tourism industry in Southern Africa — DMCs, ground handlers, accommodation providers and activity operators. SATSA membership is regarded as a quality signal in the African tourism trade and operates a member directory used by international buyers.

Signature Travel Network is a major US-based luxury travel agency consortium, comparable in scope to Virtuoso. Like other consortia, Signature offers preferred-partner programmes that give member agencies elevated commissions and amenities.

Virtuoso is the largest luxury travel agency consortium, headquartered in the US with member agencies worldwide. Virtuoso’s annual Virtuoso Travel Week is one of the most important luxury travel trade events. Suppliers achieve "Virtuoso preferred" status through invitation and an annual membership commitment.