Glossary of Industry Terms
Back to back
A term used to describe tours operating on a consistent, continuing basis. For instance, a motorcoach arriving in a city from a cross-country tour may conclude the first tour upon arrival, then transport a second group back along the same route to the origination city of the first tour.
The person who controls baggage handling on a ship.
Bed and breakfast (B&B)
Overnight accommodations usually in a private home or boarding house, often with a full American-style or Continental breakfast included in one rate.
The person in charge of luggage at a hotel.
A number of rooms, seats, or space reserved in advance, usually by wholesalers, tour operators, or receptive operators who intend to sell them as components of tour packages.
The document that allows a traveler to pass through the gate area and onto a plane or ship.
A document which purchasers of tours must complete to give the operator full particulars about who is buying the tour. It states exactly what is being purchased (including options) and must be signed as acknowledgment that the liability clause has been read and understood.
Break-even point (BEP)
The point at which revenues and expenses are the same. For example, the BEP is the number of products (or seats, cabins, tickets, etc.) that must be sold for a company to break even. The BEP is calculated as fixed costs divided by the selling price less variable costs. See reasonable number.
Pricing a product based on a forecast of the break-even point and the cost of achieving the break-even point.
Expenses budgeted for a tour but not used or expended, thus resulting in additional profit to the tour operator. Examples include meals budgeted but not consumed, currency fluctuations in favor of the tour operator, or the tour selling to much larger numbers of passengers than expected.
Budgeted balance sheet
A budget that measures total assets and liabilities.
Budgeted income statement
A budget that tracks revenues and expenses. Also called the profit and loss statement.