Airline terminology can be complex — from fare classes and distribution technology to cabin products and loyalty programmes. This glossary covers the 40 terms agents encounter most frequently, with practical explanations of how each one affects selling and booking.
Fare and Pricing Terms
1. Fare Class (Booking Class)
A letter code that identifies the type of ticket and its rules — including price, change/cancellation policy, baggage, mileage earning, and upgrade eligibility. Economy alone typically has 8-12 fare classes (Y, B, M, H, K, etc.). Understanding fare classes helps agents recommend the right product for each customer.
2. Fare Basis Code
The full code describing a fare's rules — combines the fare class with additional letters indicating conditions (e.g., MOWGB14 = M class, one-way, government, 14-day advance purchase). Agents encounter these in GDS displays and fare rules.
3. Fare Family
A group of fares packaged as a branded product — typically "Basic," "Standard," "Flex," and "Premium" within each cabin. Fare families simplify the comparison for customers by bundling rules and inclusions together rather than presenting raw fare classes.
4. Yield
Revenue per passenger per kilometre (or mile). Airlines manage yield to maximise total revenue — balancing volume (filling seats) against price (per-seat revenue). Understanding yield explains why prices fluctuate and why certain routes or dates cost more.
5. Revenue Management
The system airlines use to dynamically adjust prices based on demand, booking pace, seasonality, and competition. This is why the same seat can cost £200 today and £400 tomorrow. Agents should understand that prices change constantly and that booking earlier generally secures better fares.
6. Dynamic Pricing
Pricing that changes in real-time based on demand and other factors — moving beyond fixed fare buckets to any price point the algorithm determines optimal. NDC enables dynamic pricing through the trade channel.
7. Continuous Pricing
An evolution of dynamic pricing where there are no pre-set price points. Every offer is calculated individually, potentially meaning every booking is a unique price. This represents the future direction of airline pricing.
8. Fuel Surcharge (YQ/YR)
Additional charges added to the base fare — originally fuel-related but now covering various airline costs. Important for agents because surcharges affect the total ticket price and are sometimes excluded from promotional fare displays.
Distribution and Technology Terms
9. GDS (Global Distribution System)
Technology platforms — Amadeus, Sabre, Travelport — that connect airline inventory to travel agents. The traditional method of airline distribution, still used for the majority of trade bookings.
10. NDC (New Distribution Capability)
An IATA-developed standard allowing airlines to distribute rich content, ancillary products, and dynamic pricing directly to agents. NDC is transforming how agents access and sell airline content.
11. PNR (Passenger Name Record)
The booking record containing passenger details, itinerary, ticketing information, and special requests. Every booking has a unique PNR code (typically 6 characters). Under modern retailing, the "Order" concept will gradually replace PNRs.
12. E-Ticket
The electronic ticket record — replaced paper tickets globally. Identified by a 13-digit ticket number. Agents should always provide ticket numbers to customers and retain them for reference.
13. BSP (Billing and Settlement Plan)
The IATA system that handles financial settlement between airlines and agents. BSP simplifies billing by providing one consolidated payment process instead of separate billing from each airline.
14. ARC (Airlines Reporting Corporation)
The US equivalent of BSP, handling financial settlement between airlines and travel agents in the United States.
15. IATA Accreditation
IATA certification that allows travel agencies to issue airline tickets. Requirements include financial viability, qualified staff, and adherence to industry standards. Not all agencies need IATA accreditation — some operate through consolidators.
Cabin and Product Terms
16. Cabin Class
The physical section of the aircraft — Economy, Premium Economy, Business, First. Each has distinct seating, service levels, and inclusions. Selling premium cabins is one of the highest-value skills for agents.
17. Lie-Flat Seat
A Business or First Class seat that reclines to a fully horizontal position for sleeping. A key selling point for long-haul flights. Important distinction from "angled flat" seats which don't achieve fully horizontal.
18. Open Seating
A seating model (used by some LCCs like Southwest) where passengers choose their own seat at boarding. No pre-assigned seats or selection fee — first to board gets first choice.
19. AVOD (Audio and Video On Demand)
In-flight entertainment system where passengers select from a library of content on seatback or personal screens. Standard on most full-service long-haul flights; distinguishes from older "cycle" entertainment where content plays on a loop.
20. IFE (In-Flight Entertainment)
The broader term covering all onboard entertainment — seatback screens, Wi-Fi streaming, overhead monitors, printed media. IFE quality varies significantly between airlines and is a selling differentiator for long flights.
Ancillary Product Terms
21. Ancillary Revenue
Revenue from products and services beyond the base fare — seat selection, baggage, lounge access, meals, Wi-Fi, insurance, and upgrades. The global airline industry generates over $100 billion annually in ancillary revenue.
22. Unbundling
The practice of separating services from the base fare and offering them as paid extras. Most visible with low-cost carriers but increasingly adopted by full-service airlines through basic economy fares.
23. Bundling
The opposite of unbundling — packaging multiple products together (fare + bag + seat + meal) as a combined offer. Fare families are a form of bundling. Agents who sell bundles typically achieve higher booking values.
24. Upgrade Bid
A system where passengers bid a price to upgrade to a higher cabin. Airlines accept or reject bids based on availability and bid amount. Agents should know which airlines offer bidding and how it compares to advance booking of premium cabins.
Loyalty Programme Terms
25. FFP (Frequent Flyer Programme)
An airline's loyalty programme — passengers earn miles or points on flights and partner spending, redeemable for flights, upgrades, and other rewards. Major programmes include British Airways Executive Club, Emirates Skywards, and American AAdvantage.
26. Tier Status
Elite levels within an FFP — typically Silver, Gold, Platinum. Each tier offers additional benefits like lounge access, priority boarding, upgrade priority, and extra baggage. Helping customers achieve and maintain tier status builds long-term loyalty.
27. Alliance
A global partnership of airlines — Star Alliance, oneworld, SkyTeam. Members share lounges, FFP benefits, and codeshare routes. Understanding alliances helps agents build multi-airline itineraries with consistent benefits.
28. Status Match
When an airline matches a customer's tier status from a competitor airline — typically offering equivalent or trial status to attract new loyalty. Agents should proactively suggest status matches when customers switch airlines.
29. Redemption
Using accumulated miles or points to obtain flights, upgrades, or partner products. Agents who understand redemption options can advise customers on the best use of their points.
Operational Terms
30. Codeshare
An arrangement where two airlines share the same flight — one operates the aircraft (operating carrier) while the other sells seats under its own flight number (marketing carrier). Important for agents to explain to customers which airline actually operates the flight.
Codeshare and alliance selling →
31. Interline Agreement
An agreement between airlines to accept each other's tickets on their flights and handle passenger connections. Broader than codeshares — allows routing across multiple airlines on a single ticket with protected connections.
32. Wet Lease / Dry Lease
Wet lease: airline leases aircraft with crew. Dry lease: airline leases aircraft without crew. Relevant to agents because wet-leased aircraft may have different cabin products than the airline's own fleet.
33. IROP (Irregular Operations)
Disruptions to normal service — delays, cancellations, diversions, overbooking. Understanding IROP procedures helps agents support customers during disruptions and knowing passenger rights (e.g., EU261 compensation).
34. MCT (Minimum Connection Time)
The minimum time required between connecting flights at an airport — set by the airport and varies by domestic/international. If a connection time is below MCT, the booking system should reject it, but agents should understand MCTs for routing decisions.
35. APIS (Advance Passenger Information System)
Passenger data (passport details, nationality) required by immigration authorities before departure. Airlines collect APIS data at check-in or through advance submission. Agents should remind customers to have passport details ready.
Commercial and Trade Terms
36. Commission
Payment from the airline to the agent for selling tickets — typically 1-9% of the base fare. Commission structures vary by airline, fare class, and distribution channel. NDC may offer different commission models. Agents should understand how to maximise commission through product knowledge.
37. Override Commission
Additional commission paid above the standard rate — typically negotiated based on sales volume targets. Agencies that hit volume thresholds receive higher commission on all bookings with that airline.
38. BDM (Business Development Manager)
The airline's trade representative responsible for managing agency relationships, driving sales, and supporting training in their territory. BDMs are key contacts for agents seeking enhanced commercial terms and product knowledge.
39. Trade Support Desk
The airline's dedicated support team for travel agent queries — separate from the customer-facing contact centre. Agents should use trade support for booking issues, fare queries, and commercial questions rather than general customer lines.
40. Service Fee
A fee charged by the agent to the customer for booking services — increasingly common as airlines reduce or eliminate base commission. Service fees must be transparent to customers and comply with local regulations. Agents who add visible value through expertise, advice, and service can justify appropriate fees.
Quick Reference: Abbreviations
| Abbreviation | Full Term |
|---|---|
| ABV | Average Booking Value |
| APIS | Advance Passenger Information System |
| ARC | Airlines Reporting Corporation |
| AVOD | Audio and Video On Demand |
| BDM | Business Development Manager |
| BSP | Billing and Settlement Plan |
| FFP | Frequent Flyer Programme |
| GDS | Global Distribution System |
| IATA | International Air Transport Association |
| IFE | In-Flight Entertainment |
| IROP | Irregular Operations |
| LCC | Low-Cost Carrier |
| MCT | Minimum Connection Time |
| NDC | New Distribution Capability |
| PNR | Passenger Name Record |
| YQ/YR | Fuel/Carrier Surcharge Codes |
Understanding these terms is the foundation of professional airline selling. Agents who speak the language confidently build trust with customers and airlines alike — and that trust converts into higher booking values and stronger commercial relationships.
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This article is part of our Airline Sales & Trade series. Related reading:
