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Chapter 4 Fares and pricing.

This chapter will familiarize the student with the different types of North American airfares, including both nonrestrictive and restrictive or discounted. Emphasis is placed on reading electronic fare rules and interpreting fare-basis codes in preparation for qualifying clients for the lowest airfare. In addition, the student will learn how to interpret itinerary price displays in a major CRS, which are required when completing airline tickets and related documents.
LEARNING OUTCOMES

At the end of this chapter, the student should be able to:

1. Identify a point-to-point, through, or joint fare calculation
   when given airline itineraries.

2. Discuss how the Deregulation Act of 1978 affected airfares.

3. Describe the following types of restrictive airfares-discounted
   one-way, standard excursion, nonrefundable, and instant-purchase-in
   terms of their typical conditions and restrictions of travel.

4. Interpret the different code elements of fare-basis codes, which
   are used to identify different fare types.

5. Read and interpret automated fare scan, fare quote, and itinerary
   price displays in terms of the important information needed when
   preparing airline tickets.


KEY TERMS

* base fare

* buffer zone

* consolidator

* electronic fare rule

* excursion

* fare-basis code

* fuel surcharge

* instant-purchase

* international departure

tax

* joint fare

* normal fare

* passenger facility charge

(PFC)

* point-to-point

* segment tax

* through fare

* U.S. transportation tax

AIRFARES AND DEREGULATION

Until 1978 the federal government, under the aegis of the Air Traffic Conference (ATC), regulated the United States airline industry. The ATC regulated practically every aspect of commercial aviation, from establishing new routes to introducing new airfares.

The airlines soon learned that a strictly regulated industry squashes competition. The airlines could do little to compete for more productive routes and discounted fares to win passengers. The Deregulation Act of 1978 changed all that.

In simple terms, deregulation meant that the federal government lost most of its regulatory authority over the airlines. Today, the federal government still oversees aircraft safety, maintenance, and other related issues under the aegis of the Federal Aviation Administration (FAA). However, in practically all other matters, airlines can now effectively compete for more passengers.

Increase Competition, Lower Airfares

In most cases, airline passengers have benefited from deregulation because of the greater number of discounted fares available. Lower airfares have resulted in a dramatic increase in air travelers.

However, not all passengers benefit. Airfares have remained high on noncompetitive routes that are serviced by only one or two carriers. This discrepancy usually occurs over short routes of 400 miles or less. It is not economically feasible for the major airlines to operate large aircraft over these short routes. As a result, only small independent commuter airlines share these markets.

Because of the lack of competition on selected air routes, airfares between certain cities remain high compared with other heavily traveled routes over the same distance. In fact, distance has very little to do with how much you pay for an airline ticket.

For example, the route between Boston and Albany, New York, is operated by one or two airlines--hardly any competition. On a particular day, the US Airways one-way fare from Albany to Boston was $210. The route is approximately 145 air miles long. Compare this to the same carrier's fare from Boston to Orlando, Florida (a distance of 1,116 air miles) at $213--only $3 more but 971 miles longer in distance. Why? Because there are approximately eight carriers that compete on the Boston to Orlando route.

Even in view of these discrepancies, the air passenger today has a much greater choice of special deals and discounted fares. Some of these discounted fares represent savings of more than 50 percent over the regular fare on some routes and during certain times of the year.

The old saying "You get what you pay for" certainly applies to the airline industry. What the discount fares all have in common are the number of rules and restrictions of travel that must be met to qualify. When you fly on discounted fares, you usually have to pay for your ticket in advance, you must stay over a Saturday night, and there are penalties if you change and/or cancel your ticket. A good rule of thumb is, when fares go down, the number of travel restrictions go up!

This chapter introduces you to the many different types of airfares, their rules and restrictions, and identification codes. You will also learn the basic principles in domestic fare calculation and how to read automated price displays required to complete airline tickets for your clients.

FARE CALCULATION TERMS

Domestic airfares are calculated according to established fare calculation rules or principles. The three principles to follow when calculating domestic airfares are: (1) point-to-point fares, (2) through fares, and (3) joint fares.

Point-to-Point Fare
point-to-point

The major principle of
domestic fare calculation
that requires a fare to be
charged to each stopover
city on the routing.


Point-to-point is the basic principle when constructing fares within North America. Point-to-point means that you charge a fare to each stopover point or city on the routing.

For example, a passenger is flying on this circle-trip itinerary:
1AA   700Y   16OCT   W   PHXDFW   HK1   100P    416P
2AA   1526   19OCT   J   DFWMCI   HK1   1144A   114P
3HP   2548   22OCT   T   MCIPHX   HK1   502P    654p


Each city on the routing is a stopover (more than four hours). Because of this, you must charge a point-to-point fare to each stopover point. This itinerary contains three fare segments:

* Fare segment 1: American Airlines from Phoenix to Dallas/Fort Worth

* Fare segment 2: American Airlines from Dallas/Fort Worth to Kansas City

* Fare segment 3: America West Airlines from Kansas City to Phoenix

CHECK POINT 4-1

Study itineraries A and B on the map (Figure 4-1). Each city represents a stopover (more than four hours). Fill in the information for each.

1. Itinerary A (passenger is originating in Atlanta):

Fare segment 1 is charged on -- Airways from -- to -- .

Fare segment 2 is charged on -- Airways from -- to -- .

2. Itinerary B (passenger is originating travel in Portland, Oregon):

Fare segment 1 is charged on -- Airlines from -- to -- .

Fare segment 2 is charged on -- Airlines from -- to -- .

Fare segment 3 is charged on -- Airlines from -- to -- .

Fare segment 4 is charged on -- Airlines from -- to -- .

[FIGURE 4-1 OMITTED]

Through Fare
through fare

A published fare between
two cities over an
intermediate connecting
city; applies to on-line
connecting service.


A through fare is a published fare between two cities over an intermediate connecting city. A fare is not charged to or from a connecting city (remember: a city is considered a connection if the passenger stays less than four hours). Through fares are always calculated for on-line connections.

For example, a passenger is flying on this round-trip itinerary:

[FIGURE 4-2 OMITTED]
1DL   385F   13MAY   M   MSPCVG   HK1   550A    820A
2DL   225F   13MAY   M   CVGLAX   HK1   850A    927A
3UA   294F   17MAY   F   LAXDEN   HK1   1126A   244P
4UA   722F   17MAY   F   DENMSP   HK1   320P    605P


The flight from Minneapolis to Los Angeles is on a Delta Air Lines connection through Cincinnati. Because Cincinnati is only a connecting city (stay is less than four hours), no fare is charged to or from that city. The through fare is charged from Minneapolis to Los Angeles. What fare is charged on the return? Because the return is on a United Airlines connection through Denver, the through fare from Los Angeles to Minneapolis is charged; no fare is charged to or from Denver:

Fare segment 1 is the through fare on Delta Air Lines from Minneapolis to Los Angeles. Fare segment 2 is the through fare on United Airlines from Los Angeles to Minneapolis.

CHECK POINT 4-2

Study the following itinerary. The passenger is originating travel in Richmond, Virginia. A connecting city on the map is identified with an X (Figure 4-2). Fill in the information.

Fare segment 1 is charged on -- Airlines from -- to -- .

Fare segment 2 is charged on -- Airlines from -- to -- .

Joint Fare
joint fare

A fare that is agreed to and
established between two
different carriers through a
specific connecting city;
applies to off-line
connecting service.


A joint fare is charged when a passenger is traveling on an off-line connection (connecting between two different airlines). A joint fare is an established fare between two stopover points using two different carriers through a specific connecting city. Sometimes a joint fare is the same as a through fare; other times it may be more expensive. Due to hub cities that generate on-line connections, joint fares on off-line connections are infrequent.

For example, a passenger is flying on this round-trip itinerary:

[FIGURE 4-3 OMITTED]
1US   572Y   05FEB   T   DSMMCI   HK1   1005A   1055A
2NW   944Y   05FEB   T   MCIMEM   HK1   1145A   103P
3NW   795Y   08FEB   F   MEMMCI   HK1   205P    330P
4US   734Y   08FEB   F   MCIDSM   HK1   415P    505P


The passenger is on an off-line connection (from US Airways to Northwest) from Des Moines to Memphis, connecting through Kansas City. Because the passenger is on an off-line connection, the joint fare is charged between US Airways and Northwest from Des Moines to Memphis. What fare is charged on the return? The fare is the same: joint fare between Northwest and US Airways from Memphis to Des Moines.

CHECK POINT 4-3

Study the following itinerary. The passenger is originating travel in Minneapolis/St. Paul and traveling to Phoenix, Arizona.

He is traveling in each direction on a connection; one is off-line and the other is on-line service. A connecting city on the map is identified with an X (Figure 4-3). Fill in the information.

Fare segment 1 is a (joint or through?) -- fare from -- to -- .

Fare segment 2 is a (joint or through?) -- fare from -- to -- .

TYPES OF FARES

There are hundreds of different types of airfares on the market. To simplify, let's start with two general categories of fares: restricted and nonrestricted.

Unrestricted
normal fare

A fare with no restrictions
of travel such as advance
ticket purchase or length
of stay; the ticket is valid
for up to one year.


Unrestricted fares are also called normal fares. They usually do not have any restrictions of travel such as advance purchase or length of stay. They also do not have any change or cancellation penalties; you can change your reservation at any time or even cancel the ticket at the last minute and receive a full refund of the ticket price. When you charge a normal fare, the airline ticket is valid for up to one year from the date of departure.

Normal fares are usually booked in the three standard classes of service:

F = First class normal fare

C = Business class normal fare

Y = Coach class normal fare

Restricted

Restricted fares are also called discounted fares. These fares will have any number of travel restrictions attached to them. Some discounted fares can be sold one way while others must be sold round-trip. Most discounted fares are based on travel in coach class and are sold on a controlled-inventory basis. This means the airline sets aside a certain number of seats in coach class to be sold at the discounted price.

There are hundreds of different types of discounted fares. To simplify, we can group them into three general categories: (1) discounted one-way fares, (2) standard excursions, and (3) nonrefundables.

Discounted one way. Discounted one-way fares can be sold one way or round-trip. Because these fares are published one way, you simply double them for round-trips. The types of restrictions vary depending on the routing and airline, but many one-way fares are sold on a controlled-inventory basis, must be purchased so many days before departure, and are valid only during certain times of the year. In addition, many airlines charge a penalty if the ticket is changed or canceled.

Standard excursion. Any fare that must be purchased round-trip is called an excursion. Standard excursions have restrictions similar to those for discounted one ways-they are sold on a controlled-inventory basis and must be purchased in advance, with a penalty charged for changes or cancellation, for example. However, they also have a minimum and/or maximum stay limitation. Purchasing a round-trip excursion fare is usually less expensive than purchasing two one-way discounted fares on the same route.
excursion

A type of discounted fare
that must be purchased
round-trip.


Nonrefundable/Instant Purchase. This is the least expensive type of discounted fare, and it is loaded with travel restrictions and penalties. As the name implies, there is no refund if the passenger cancels the ticket any time after purchase. Strict penalties also apply for any changes made to the reservation. Nonrefundable fares are considered excursions because they are based on round-trip travel. Many nonrefundable fares are also called instant-purchase fares because the passenger must purchase the ticket immediately after the reservation is made, usually only one or two days after the booking.
Instant-purchase

A type of discounted fare
that requires ticket
purchase immediately after
booking.


Other Types of Discounted Fares

In addition to the published normal and discounted airfares displayed in the travel agency's computer reservations system, there are four major categories of discount fares and programs: (1) negotiated fares, (2) consolidator fares, (3) airline discount coupons, and (4) passenger-type discounts.

Negotiated fares. Airlines offer their frequent customers-business travelers-some of the best rates to increase business. Negotiated fares are special discounted prices that have been established between a company and an airline or between a travel agency and an airline. When negotiated between a company and an airline, they are often on designated routes or those routes that are traveled frequently by the company's employees. These company-negotiated fares are company-specific; they apply only to travelers from a specific company.

Airlines will also negotiate with large corporate travel agencies. These are agencies that specialize in corporate travel, which generates millions of dollars of business travel revenue each year. These agency-contract fares are agency-specific; they apply to all travelers who confirm their business trips through the travel agency.

In both types of negotiated agreements, the company or agency receives a special corporate identification number for its travelers, which must be provided to the airline when making reservations based on the discount rate.
consolidator

A company that purchases
airline seats in volume at a
discount and then resells
those seats at a small
markup but still below
normal "retail" price.


Consolidators. A consolidator is an outlet for airline tickets. It is a company that buys tickets from the airlines at wholesale or net prices (without any commission built into the price), and is therefore able to offer discounted prices.

A consolidator purchases airline seats in volume at a discount and then resells those seats at a small markup but still below normal "retail" price. A consolidator signs an agreement with an airline to produce a certain number of passengers during a set period of time. In exchange for this commitment, the airline grants the consolidator a rate not offered as a regular price.

There are advantages for travel agencies to use consolidators. A major one is the opportunity to earn higher commissions. The majority of consolidators sell their tickets in net rates. This allows travel agencies to increase or mark up the ticket to arrive at a fair price for the client at a reasonable rate of commission. Other consolidators sell their tickets with the agency commission built into the price. Commissions on consolidator tickets can reach as high as 20 to 25 percent.

Another benefit is that some consolidator tickets do not have the same restrictions as tickets sold directly by the airlines, such as Saturday-night stays and advance purchase. In addition, passengers can use the air mileage on consolidator tickets as credit toward their frequent-flier programs.

What's the downside to consolidator fares? Most consolidators are reliable and professional; others are not. Travel agencies should verify the stability of consolidators before they do business with them. They can do this by referring to two publications: Jax Fax, the primary advertising medium for most consolidators (Figure 4-4), and The Index of Air Travel Consolidators, which is used to evaluate consolidator reliability and publishes travel agency ratings of each firm. Travel agencies can also check the reputation and past history of consolidators by contacting the American Society of Travel Agents (ASTA).

Consolidators deal with specific airlines, which in turn serve specific destinations. Usually a consolidator will specialize in one or more broad geographical regions and deal with several airlines serving those areas. Most consolidator fares are available only on international flights. However, availability of consolidator fares for domestic routes is growing every year.

[FIGURE 4-4 OMITTED]

Airline coupons. Airlines use coupons as another method of offering fare discounts to the traveling public. Airline discount coupons can be found just about anywhere; they are printed in newspapers, magazines, or in general discount coupon books. They are distributed to the general public through direct mail campaigns, or through banks, supermarkets, and credit-card companies.

There are two general types of discount coupons: dollar-off and set-rate. Dollar-off coupons allow a certain amount off the published fare. The discount can be a set dollar value or a percentage. A set-rate coupon allows a ticket to be issued at an established discount rate. The rate is usually based on geographical zones or specific routes.

Figure 4-5 is an example of a discount flight coupon offer sponsored by a major airline. This is a dollar-off coupon because $25, $50, $100, or $150 is deducted from the published fare based on the amount of a normal round-trip fare. Higher discounts are available based on a group of four people traveling together.

There are hundreds of different coupons distributed by airlines with different rules and restrictions of travel. Some common restrictions include blackout dates (specific dates when the discount is not valid), length of stay, and controlled-inventory sales.

Before issuing an airline ticket in conjunction with a coupon, the travel or ticket agent must make sure that the passenger meets all the conditions of travel.

Passenger-type discounts. Certain types of passengers may qualify for discounted travel simply based on who they are. Examples of typical passenger-type discounts include those for senior citizens, military personnel, government officials, and children (under twelve years of age).

The amount of discount is usually expressed as a percentage off the regular fare; the standard discount level is approximately 10 percent. For any passenger-type discount, the travel agent must make sure that the traveler qualifies in that discount category. For example, a senior citizen's fare will require certain age limitations, and military fares require documentation of active-duty status.

In most cases, passenger-type discounts cannot be used with other discounts such as nonrefundable or instant-purchase airfares. In other words, you can't discount an already discounted airfare. Passenger-type discounts are usually deducted from the applicable full adult fare.

CHECK POINT 4-4

Circle the best answer.

1. Fares that have no restrictions of travel are called

a. standard fares.

b. normal fares.

c. excursion fares.

d. free fares.

2. A ticket based on an unrestricted fare is valid up to

a. six months. c. two weeks.

b. one month. d. one year.

3. Most discounted fares are sold on what basis?

a. Controlled-inventory

b. First-come, first-served

c. One-way

d. Fully refundable

4. Any fare that must be sold round-trip is called a(n)

a. advance purchase. c. open jaw.

b. circle journey. d. excursion.

5. A discount that is agreed upon between a company or travel agency and an airline is called a

a. joint fare. c. negotiated fare.

b. bulk fare. d. net fare.

6. Unrestricted fares usually

a. have no change or cancellation penalty.

c. are more expensive than restricted fares.

b. can be purchased at any time.

d. All of the above

7. Restricted fares usually include

a. decreased baggage allowance.

b. restrictions to fly on smaller aircraft.

c. limited seat availability.

d. None of the above

8. Most nonrefundable fares share what restriction?

a. Instant purchase

b. No refund due to cancellation d. All of the above

c. Penalty for changes

9. Companies that buy tickets from airlines at wholesale prices are called

a. air operators.

b. charter operators.

c. coordinators.

d. consolidators.

10. A discount program that allows you to deduct a certain amount from the regular price of an airline ticket in exchange for a "certificate" document is called a

a. dollar-off coupon.

b. nonrefundable fare.

c. set-rate coupon.

d. best seat plan.

[FIGURE 4-5 OMITTED]

FARE-BASIS CODES

You have already discovered that every airline, city, and airport has its own identification code. You will soon discover that every fare also is identified with a unique code. We call these identifications fare-basis codes. When you scan a fare display on a computer screen, you will see fare-basis codes listed.
fare-basis code

A code composed of one
or more characters that
identifies a particular type
of fare.


For example, following is a partial list of fare-basis codes displayed for fares between New York and Miami:

* KOE14NR

* KPE14NR

* QRA3B

* F

* C

* HOE7NR

* HHE7NR

* MHX21N

* YN

* Y21

* MLX21N

* QLE21IP

* QHE21IP

* VWAP14N

* VXAP14N

* BE7NR

Looks like a different language? In a way it is. Each fare-basis code is composed of a combination of letters and numbers. Some fare basis codes are very simple, consisting of one or two characters; others are more complex, consisting of up to nine or ten characters.

Generally, the more travel restrictions, the longer the fare-basis code. Notice that the fare-basis codes for the normal first-class, business class, and coach class fares are one letter in length: F, C, and Y. Others such as VWAP14N contain characters or groups of characters that refer to a certain restriction or condition of travel.

It is helpful to be able to "read" the fare-basis codes before looking at the more detailed fare rules. The fare-basis code can tell you a lot about a fare. But remember, farebasis codes are to be used as guides only; to qualify your clients for the lowest applicable fare, you have to read the fare rules, which are in greater detail.

Figure 4-6 is a list of some of the characters used for fare-basis codes. You can often determine the meaning of a letter by its position in the code. The following chart lists the sequence of these codes. However, keep in mind that this is a general guide only; there are exceptions to every rule.

CHECK POINT 4-5

For each of the following fare descriptions, select the fare-basis code that identifies it:

1. A discounted off-peak flight that departs in the evening, in coach class, is identified by which fare-basis code?

a. CN

b. NY

c. YN

d. YL

2. This fare is a high-season excursion fare to be booked in B class with a fourteen-day advance reservation restriction.

a. BWNR14

b. HBE14

c. BW14E

d. BHE14

3. This fare must be purchased round-trip within one day of booking, in V class of service. Travel is restricted during midweek only.

a. XVR1P

b. VXEIP

c. VWIP1

d. VH21NR

4. This nonrefundable fare, booked in H class, is valid to Bermuda during the most expensive time of the year, round-trip is required, and the ticket must be purchased at least one week prior to departure.

a. H7NRW

b. WHANIP

c. HHR7N

d. HIP7NR

5. To qualify for this excursion fare, the passenger must travel on a late afternoon (off-peak) flight in L class of service, during midweek. The ticket must be purchased within three days of booking and is nonrefundable if canceled.

a. LNXR3N

b. NXL3NR

c. LLWENR3

d. LNENRX

FARE RULES
electronic fare rule

A description of a fare's
conditions and restrictions
of travel as displayed in the
airline computer
reservations systems.


Part of qualifying your clients for the lowest airfare is to make sure that they are fulfilling all the conditions of travel. Some fares have more restrictions than others. Each published fare has a fare rule. Because these fare rules are found in the airline computer reservations systems, we call them electronic fare rules. Remember, to qualify for a particular airfare, the traveler must meet all conditions of travel. Even if only one condition is not met, the passenger is disqualified from the fare and you must begin another search.

In this section we will show you what a typical electronic fare rule looks like. Each fare rule is divided into informational categories. Each category describes a specific type of restriction or condition of travel. Figure 4-7 is a list of the informational categories that comprise discounted fare rules. The left column names each rule category with a brief description. The right column shows an example of how the information is displayed in a CRS rule display. This example shows the rule for a nonrefundable excursion fare between Boston and Fort Lauderdale with a fare-basis code of BE14N.

CHECK POINT 4-6

You are trying to qualify a client for a discounted fare with the BE14N discount fare. Answer the following questions from the fare rule display (Figure 4-8):

1. What is the booking code for this fare? --

2. The passenger is ticketed on the BE14N fare. Before departure she changes her return date for two days later. This change does not require a new ticket to be issued. Is there a penalty for this change? If so, how much? --

3. The total cost of the ticket on the BE14N fare is $350. If the passenger cancels her ticket before departure and does not rebook, what is the cancellation penalty? --

4. What is the last possible date you can book a reservation on the BE14N fare if the passenger wants to depart on June 18? __________________

5. You have booked a client on the BE14N fare on May 18 for a trip departure on June 25. By which date must the ticket be purchased and issued? --

6. This passenger is departing on Thursday, September 5. What is the earliest date she can return home? --

7. What is the latest possible date she can return home (if departure is September 5)? --

8. Your client wants to depart on December 22 and return after the New Year's holiday on January 2. Is this permitted? Why or why not? --

9. What is the first day that this fare goes into effect (or the first date that passengers can start traveling)?

10. You have a choice of booking the following available flights on Delta (you want to charge the BE14N fare type). Which flight would you have to select?

a. DL 645

b. DL 1011

c. DL 890

d. DL 2344

11. Your client is traveling round-trip from Boston to Miami. She wants to stop in Atlanta on the way for two days. Can she do this on the BE14N round-trip fare? --

12. Mr. and Mrs. Tom Smythe are traveling together on the BE14N fare. In addition to the published fare, what is the fuel surcharge (exclusive of tax) that each passenger must pay (they are traveling Boston to Miami to Boston)? --

13. Passengers Bill and Joan Townsend are traveling with their daughter Susan who is one year old. Susan will sit in her parent's lap during the flight. Is there a charge for the infant? --

14. Your clients have to make two connections to get to Miami. Is this permitted on the BE14N fare (yes or no)? --

15. Your clients want to depart Boston on September 17, but they do not know when they want to return. Can they pay for a round-trip ticket on the BE14N fare and make return reservations when they know the date of their return? --
FIGURE 4-8
Example of an electronic
fare rule

FARE RULE: BE14N

BK CODE - B

PENALTY - TICKETS ARE NONREFUNDABLE IN CASE OF CANCELLATION/ REFUND. A
CHARGE OF USD 60 WILL BE ASSESSED FOR AN ITINERARY CHANGE WITH OR
WITHOUT TICKET REISSUE.

RES/TKTG - RES MUST BE MADE NO LATER THAN 14 DAYS BEFORE DPTR FROM
ORIGIN. TKT MUST BE PURCHASED NO LATER THAN 14 DAYS BEFORE DPTR FROM
ORIGIN OR 1 DAY AFTER RES IS MADE, WHICHEVER COMES FIRST.

MIN STAY - RETURN TRAVEL IS VALID ON THE 1ST SUN AFTER 12:01 A.M..
MEASURED FROM DPTR FROM ORIGIN TO DPTR FROM LAST STOPOVER POINT.

MAX STAY - RETURN TRAVEL MUST COMMENCE NO LATER THAN 60 DAYS. MEASURED
FROM DPTR FROM ORIGIN TO DPTR FROM LAST STOPOVER POINT.

DAY/TIME - APPLIES AT ANYTIME.

BLACKOUTS - TRAVEL IS NOT VALID 22DEC THRU 02JAN.

EFF/EXP - 01 MAY IS THE FIRST DATE THAT TRAVEL MAY COMMENCE.

FLT APPL - APPLIES ONLY TO FLTS 9425 THRU 9444. APPLIES ONLY TO FLTS
2300 THRU 2599.

STOPOVERS - NO ADDITIONAL STOPOVERS IN ADDITION TO THE OUTWARD
DESTINATION ALLOWED.

SURCHGS - FROM BOS TO FLL, FUEL SURCHARGE OF USD 2.32 PER ADT/CHD.
APPLIES TO DOMESTIC SECTOR. -- FROM FLL TO BOS, FUEL SURCHG OF USD
1.86 PER ADT/CHD. APPLIES TO DOMESTIC SECTOR.

DISCOUNTS - NO FARE IS CHARGED FOR AN INF PSGR UNDER 2 YRS NOT
OCCUPYING A SEAT. INF PSGR MUST BE ACCOMPANIED ON ALL SGMENTS BY AN
ADT PSGR TRAVELING IN THE SAME COMPARTMENT.

TRANSFERS - UNLIMITED TRANSFERS AS PERMITTED ON THE ROUTING.

OPEN RTN - TICKETS MAY NOT BE ISSUED WITH OPEN RETURN.


DOMESTIC TAXES AND SURCHARGES

Have you ever glanced at an airline ticket to see a variety of additional charges tacked on to the fare? All airline tickets-domestic and international-have additional amounts in the form of taxes and surcharges. Travel agents are required to collect, on behalf of airlines, all taxes, fees, and charges imposed by the U.S. government. When completing airline tickets, these taxes, fees, and charges must be clearly shown and identified. That is why each type of tax and fee has a unique two-character code.

When you see the total selling fare on an airline ticket, that is, the price the passenger actually pays, it is composed of three items:

Base fare + Tax = Total selling fare
base fare

The published fare amount
on the ticket exclusive of
taxes.


A base fare is the published fare amount on the ticket, exclusive of taxes. The base fare plus applicable taxes equal the total selling fare of the airline ticket.

There are also other charges that may be added directly to the base fare and become part of the base fare amount on the airline ticket. These additional charges are called surcharges.

Let's first take a look at the different types and amounts of taxes that apply to most airline tickets.

Federal Ticket Tax

There are four types of U.S. federal transportation taxes that apply to airline tickets. The type and amount of federal tax that applies to a ticket depends on the routing.

The four types of federal transportation taxes are (1) U.S. transportation tax, (2) international departure tax, (3) passenger facility charge, and (4) segment tax. These taxes are collected before trip departure and added to the base fare of the airline ticket. Each tax is identified by a two-letter code.
U.S. transportation tax

A federal air tax that
applies to the following
journeys: (1) between
points in the continental
United States, (2) between
points within the states of
Hawaii and Alaska, (3)
between points in the
continental United States
and within the Canada or
Mexico buffer zones, (4)
between points within the
buffer zones.


U.S. transportation tax. The U.S. transportation tax applies under the following four conditions:

1. Travel is between points within the continental United States.

2. Travel is between points within the states of Hawaii and Alaska.

3. Travel is between the continental United States and cities that are within the 225mile buffer zone (Figure 4-9). This buffer zone extends from the northern border of the continental United States into Canada, and from the southern border of the United States into Mexico.

4. Travel is between points inside the Canadian and Mexican buffer zone.
buffer zone

A zone for taxation
purposes that extends 225
miles from the northern
border of the continental
United States into Canada
and 225 miles from the
southern border of the
United States into Mexico.


The U.S. transportation tax is in the form of a set percentage of the published base fare. Currently, the U.S. transportation tax is 7.5 percent. Over the past several years the transportation tax has been on a schedule to decrease by a certain amount each year: from 10 percent, to 9 percent, to 8 percent, to the current level of 7.5 percent. It is important to remember that tax amounts change periodically. All tax amounts shown in the text were current at the time of publication. The code on an airline ticket that identifies a U.S. transportation tax is US.
international
departure tax

A federal air transportation
tax that applies to
departing international
passengers.


International departure tax. The international departure tax is charged when departing the United States to all foreign destinations other than to destinations in Canada and Mexico located within the 225-mile buffer zone. This includes tickets to destinations throughout the balance of the world: South America, the West Indies, Europe, Africa, Asia, and the Pacific.

[FIGURE 4-9 OMITTED]

The international departure tax is a set dollar amount. Currently, international air passengers pay a $12.20 departure tax in each direction of travel. For example, on a oneway ticket from Chicago to Paris, France, the departure tax is $12.20. On a round-trip from Miami to Rio de Janeiro to Miami, the departure tax is $12.20 in each direction, or a total of $24.40.

The international departure tax also applies to destinations in U.S. possessions and territories overseas, such as Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa, but not in the reverse direction.

One exception should be noted here: when travel is between the mainland or the continental United States (contiguous 48 states plus District of Columbia) and Alaska and Hawaii, the departure tax is $6.10 per passenger, for each departure from a U.S. city. For example, on a round-trip ticket, Los Angeles to Honolulu to Los Angeles, you charge $6.10 from Los Angeles and $6.10 from Honolulu or a total of $12.20 for the round-trip.

Here's a general rule: Apply the international departure tax only if the U.S. transportation tax (currently at 7.5 percent) does not apply to the entire ticket.

The code on an airline ticket that identifies an international departure tax is US.
passenger facility
charge (PFC)

A tax imposed on
departing passengers from
selected airports that are
authorized by the federal
government to collect this
fee. The standard PFC is $3
per departure, not to
exceed two for a one-way
ticket or four on a roundtrip
ticket.


Passenger facility charge (PFC). A passenger facility charge (PFC) is imposed on departing passengers from selected airports that are authorized by the federal government to collect this fee. Airports are granted this authorization for a scheduled number of years. The standard PFC amount is $3 per departure from each authorized airport. The PFC is collected at the time of ticket issue and is added to the base fare as a tax.

A PFC is imposed on all passengers who depart from an airport whether or not it is a stopover or connecting point on the ticket. A maximum of two PFCs can be charged on a one-way ticket. If more than two airports have PFCs, the charges are assessed for the first two PFC-approved airports. A maximum of four PFCs can be charged for a round-trip (two in each direction). A list of airports that have the authority to charge a PFC is printed in the OAG Desktop Guides and Travel Planner publications. Figure 4-10 is a partial list of major airports that charge the PFC and the scheduled discontinue date for each. The code that identifies a passenger facility charge on an airline ticket is XF.
segment tax

A federal tax that applies
to each domestic flight
segment of an itinerary
with the exception of
departures from rural
airports.


Segment tax. The segment tax applies to each domestic flight segment of an itinerary. A flight segment is a continuous flight between each ticketed point of travel. For example, a passenger is flying from New York to Los Angeles on a direct flight (one flight segment) and returning on a connecting flight from Los Angeles to Chicago to New York (two flights segments); this itinerary equals three flight segments. You would add three segment taxes to this ticket.

The exception is for departures from small rural airports. A rural airport is defined as one having no more than 100,000 departure passengers during a two-year period. A full list of rural city exceptions is published in the OAG Desktop Guide and CRS. However, even with this exception, the majority of airline tickets will include segment taxes from each departure airport. Segment tax amounts have increased annually on a predetermined schedule since late 1997, the year they were introduced. The schedule through the year 2002 and beyond is as follows:

* January 1, 2000-December 31, 2000 = $2.50 on each flight segment

* January 1, 2001-December 31, 2001 = $2.75 on each flight segment

* January 1, 2002-beyond = $3.00 on each flight segment

The segment tax in the amount of $3 per segment is used in all examples and exercises throughout this textbook (do not get the segment tax mixed up with the PFC, which is also $3 per departure from selected airports).

The code that identifies a segment tax on an airline ticket is ZP.
fuel surcharges

An additional fare amount
added to an airline ticket
that is applicable from
selected airports in the
continental United States.


Fuel surcharges. In addition to federal taxes, some domestic tickets may also include one or more fuel surcharges. A fuel surcharge is not treated like a tax on the airline ticket. If a surcharge applies, it is added to the base fare and becomes part of the base fare amount. Because it is part of the base fare amount, a fuel surcharge is also subject to the domestic transportation tax of 7.5 percent.

Fuel surcharges are applicable from selected airports in the continental United States. The major ones are Boston, Chicago, and all cities in Florida. The base, tax (based on 7.5 percent), and total amounts of these fuel surcharges are as follows:
Departing From            Base   Tax     = Total

* Boston                  $2.32  + .18   = $2.50

* Chicago                 $4.65  + .35   = $5.00

* All cities in Florida   $1.86  + .14   = $2.00


The code that identifies a fuel surcharge on an airline ticket is the letter Q.

CHECK POINT 4-7

1. The ticket is a one way from Kansas City to Detroit. The base fare is $279.07. What is the U.S. transportation tax amount?

a. $27.91

b. $4.65

c. $3.00

d. $20.93

2. You are completing an airline ticket from Denver to Nashville to Detroit Metro to Denver. Using Figure 4-10 as a reference, what is the total PFC charge on this airline ticket? a. $3

b. $9

c. $6

d. $12

3. You are completing a round-trip ticket between Chicago and Tampa, Florida. What is the fuel surcharge (not including tax) on this ticket?

a. $6.51

b. $4.64

c. $3.72

d. $1.86

4. Your passenger is flying on this routing:

* From Milwaukee to Baltimore

* From Baltimore to Charlotte

* From Charlotte to Milwaukee

What is the total segment tax on this ticket?

a. $3

b. $12

c. $9

d. $6

5. Your passenger is flying one way from Sacramento, California, to Toronto, Canada. Which tax applies?

a. $12 departure tax

b. $6 departure tax

c. 7.5 percent transportation tax

d. No tax applies

6. Your passenger is flying from New Orleans to Mexico City. What tax applies?

a. $12.20 departure tax

b. $6 departure tax d. No tax applies

c. 7.5 percent transportation tax

For each of the following types of taxes or surcharges, write the identification code:

7. U.S. transportation tax --

8. International departure tax --

9. Segment tax --

10. Passenger facility charge --

11. Fuel surcharge --

AUTOMATED FARE DISPLAYS

The travel agency's computer reservations system (CRS) is the primary resource to research air fares. A typical CRS has tens of thousands of fares programmed into its database. Each major CRS is able to display fares for most airlines, both domestic and international. Airfares are updated and revised on a continual basis to provide agents with the most current fare and rule information.

The CRS displays fares in a variety of ways. The method you use depends on what the booking situation is and for what type of information you are looking. Let's use American Airlines' CRS called Sabre as an example. In Sabre, the travel agent can display fares in three general ways: (1) fare scan, (2) fare quote, and (3) itinerary price.

Fare Scan

The fare scan display lists published fares between any city pair, with the most inexpensive fares at the top. It provides a cost comparison for all airlines that offer fares between the cities. This can also be called a "shoppers quote" because it is an excellent way to shop around for the lowest fare.

A fare scan is usually used to answer this typical client question, "How much does it cost?" even before a trip is booked. For example, the client may be planning a trip to New Orleans next month and wants an idea of the best airfare based on tentative dates of travel.

The travel agent can request to see all published fares between the city pair for a specific travel date.

Figure 4-11 is an example of a fare scan display (partial display is shown). The agent is requesting a fare scan display for travel from Boston to Phoenix, with a travel date of February 14. The agent is requesting to see all excursion fares. The entry is FSBOSPHX14FEBEX [Fare Scan, from BOS to PHX, travel date is 14FEB, for excursion (EX) fares]. Fares are displayed from the least expensive to the most expensive.

Breakdown of Fare Scan Display

[1] Header lines: The first two lines show a repeat of the entry plus a repeat of the city pair and travel date requested. The next two lines provide flight frequency counts. For each airline, the number of nonstops, direct flights, and connections scheduled are provided in that sequence. For example, CO 1 / 3 / 13 means Continental Airlines offers one nonstop flight, three direct flights, and thirteen connections from Boston to Phoenix on the day requested.

[2] Fare scan line item: Each line is numbered for easy reference.

[3] F/B: Fare-basis code.

[4] O/W: One-way fare (fare includes the U.S. transportation tax; does not include applicable passenger facility charge, segment tax, and fuel surcharge). If a fare is an excursion and can be sold only round-trip, this area will be blank. All fares on this scan display are excursion fares.

[5] R/T: Round-trip fare (fare includes the U.S. transportation tax; does not include applicable passenger facility charge, segment tax, and fuel surcharge).

[6] CXRS (carriers): Shows the carrier code.

[7] EFF (effective): If applicable, indicates when a fare becomes effective.

[8] EXP (expire): If applicable, indicates when a fare expires.

[9] TKT (ticketing): If applicable, indicates the last date by which all tickets on the fare must be issued.

[FIGURE 4-11 OMITTED]

CHECK POINT 4-8

Refer to Figure 4-11, the fare scan display for Boston to Phoenix.

1. How many direct flights does Trans World Airlines operate? --

2. Which airline has the greatest number of nonstop flights? -- How many does it operate? --

3. How many connections does Continental offer? --

4. What is the round-trip fare on the KE21N fare basis? $ -- On which airline is this fare valid? --

5. What is the round-trip fare that must be booked in V class on Trans World Airlines? $ --

6. When does United's nonrefundable fare booked in H class become effective? --

7. You wish to book your client on Delta's nonrefundable fare at $701 round-trip. What is the last date that this fare can be ticketed? --

8. How much is Northwest's instant-purchase fare in K class? $ --

Fare Quote

A fare quote is another method of displaying airfares on the CRS. It is similar to the fare scan but with one difference: it lists fares for a specific carrier. This type of request is used when you know which airline will be flown.

[FIGURE 4-12 OMITTED]

A typical example of when a fare quote would be used is for a business traveler who is a member of a particular airline's frequent-flier program. The traveler would anticipate flying on a specific carrier in this case. Another example is when you know that your client wants to fly only on a nonstop. In that case you would check the fares on the airline that offers this type of service.

Let's look at an example. Figure 4-12 is a fare quote display for flights from Washington to New Orleans on March 12. The agent is requesting to see all fares on Delta Air Lines. The entry is FQWASMSY12MAR-DL [Fare Quote, from WAS to MSY, travel date is 12MAR, on -DL].

Breakdown of Fare Quote Display

1 The first header line shows a repeat of the entry: FQWASMSY12MAR-DL.

2 The second header shows the following:
ORG--WAS   Origin city code
 DST-MSY   Destination city code
  CXR-DL   Carrier requested (Delta)
   12MAR   Travel date
     USD   Currency type (U.S. dollar)


3 The third line shows other airlines offering fares in this market: AA CO HP NW TW UA US.

Columns 4 through 13 are fare columns:
4 QTE         First date that the fare may be sold or ticketed.
5 F/B         Fare-basis code to be used on ticket.
6 BK          Booking class of service when making reservations.
              X = one-way fare (fare can be sold one way or
                  round-trip; double for round-trip)
              R = round-trip fare (fare must be sold round-trip)
7 FARE Fare   amount (includes U.S. transportation tax; does not
                  include applicable passenger facility charge, segment
                  tax, or fuel surcharge).

8 EFF         First day travel may begin from point of origin.
9 EXP         Last day return travel may begin from the outward
                   destination.
10 TKT        Last day fare can be sold or ticket purchased.
11 AP         The number of days prior to departure that the ticket
                   must be purchased and issued (only applicable to
                   discounted fares). The "##" indicates a restriction
                   and refer to the electronic rule for details.
12 MIN/MAX    Minimum/maximum (earliest date of return permitted/latest
                   date of return permitted).
13 RTG        Routing restrictions. Refer to list of city/airport codes
                   below fare quote display. This lists the cities
                   through which the passenger may travel (on a
                   connection) in conjunction with the fare.


CHECK POINT 4-9

Refer to the fare quote display (Figure 4-12) to answer the following:

1. In addition to Delta Air Lines, name the other airlines that offer fares between Washington and New Orleans: --

2. What is the one-way normal (unrestricted) first-class fare? $ --

3. What is the round-trip normal coach fare? $ --

4. What is the round-trip nonrefundable fare based on K class? $ --

5. What is the last date that a ticket can be issued on the $318 round-trip instant-purchase fare? --

6. What is the first date that you can sell or ticket the nonrefundable fare in M class? --

7. Does the discounted first-class fare in the amount of $818 one way have an advance-purchase restriction? -- How can you tell? --

8. You are issuing a ticket on Delta's $378 round-trip fare. If the passenger is departing Washington on Tuesday, March 12, what is the earliest possible date of return? --

9. For the same passenger in question 8, what is the latest possible date of return? ________________________

10. Which Delta connection below is not permitted on the LE7NR fare (the connecting city/airport is underlined)?

Write the letter: --

a. WAS--CLT--MSY

b. WAS--BWI--MSY

c. WAS--BHM--MSY

d. WAS--ATL--MSY

ITINERARY PRICING

When identifying and booking the best fare for your client, you will usually complete these seven steps:

Step 1: Check calendar for exact dates of travel.

Step 2: Fare scan for the best fare, making note of flight frequency.

Step 3: Fare quote on a selected airline to obtain basic rules on desired fare.

Step 4: Read the detailed electronic rule to make sure passenger satisfies all conditions of travel.

Step 5: Check availability and book flights in appropriate class of service.

Step 6: Reconfirm the fare by displaying the itinerary price.

Step 7: Collect payment and issue the ticket.

Let's look at step 6 in more detail (step 7 will be discussed in more detail in the next chapter). After qualifying the best fare for the client and making the flight reservations, your next step is to request a price for the booked itinerary. The major computer reservations systems can display a detailed price for any booked record in its system.

With a simple command entry (for example, the command in Sabre to request a price is WP for "will you price?"), the CRS prices the booked itinerary based on the airline, booking code, and city pair. It also checks the electronic fare rules and conditions of travel to make sure the passenger qualifies (advance purchase, minimum stay requirement, and so on).

The display of the fare, taxes, and total selling fare for a booked itinerary is called the itinerary price. The itinerary price that is stored in the computer is used when generating airline tickets through the computer and completing handwritten tickets.

All the itinerary price examples used throughout this textbook are printed in the same format as they appear in a CRS. What follows is a detailed description of how to interpret itinerary price displays for ticketing purposes. Study them now and continue to refer to these examples as needed for ticketing exercises.

Itinerary Price for One-Way Itinerary

Figure 4-13 is a one-way itinerary and itinerary price display for passengers William and Susan Brown. The first two lines are the passenger itinerary information. The two passengers are flying on United Airlines from St. Louis to Denver on May 27. They are traveling standard coach class. The information under the headings "Base Fare," "Taxes," and "Total" is the itinerary price display for this booking.

[FIGURE 4-13 OMITTED]

Description of Itinerary Price Display

1 Breakdown of base, tax, and total fare for one adult passenger
2- USD320.93 27.07XT USD348.00ADT

      2-    Number of passengers in itinerary

USD320.93   Base fare (without tax) for one passenger

27.07       Total or combined tax for one passenger

XT          Code for combined tax

USD348.00   Total selling price for one passenger
            (base plus combined tax)


2 Breakdown of combined tax amount (27.07XT)
XT 24.07US 3.00ZP

      XT    Combined tax code

24.07 US    Amount of U.S. transportation tax with code

3.00 ZP     Amount of applicable segment tax(es) with code


3 Total base, combined tax, and selling price for all passengers in record (if there is only one passenger in record, this line would be the same as line 1)
USD641.86 54.14 696.00TTL

USD641.86   Base fare for total passengers (320.93 x 2)
54.14/      Combined tax for total passengers (27.07 x 2)
696.00      Total  (TTL) selling fare for total number of
             passengers (348.00 x 2)


4 Passenger type code (ADT = Adult, CHD = Child), number of passengers in record (2), and fare-basis code (Y)
ADT-02 Y


5 Fare breakdown for one passenger

The base fare (without tax) is listed immediately following the city to which it applies. Any applicable passenger facility charge (PFC) and segment tax (ZP) amounts are identified by entering the tax code, airport code for which it applies, and the amount for each in order.

[ILLUSTRATION OMITTED]

CHECK POINT 4-10

Fill in the following information by referring to Figure 4-14:

1. This record is for two passengers. The first passenger's name is -- . The second passenger's name is -- .

2. These passengers are flying on -- Airlines flight number -- in -- class of service.

3. They are departing on -- (show date), which is -- (write the day of the week).

4. The one-way routing is from the city of -- to the city of -- .

5. They are departing from the origin city at -- A.M./P.M., and arriving at their destination at -- A.M./P.M.

6. The base fare (without tax) for one passenger is $ -- .

7. The combined tax amount for one passenger is $ -- .

8. The total selling price for one passenger is $ -- .

9. The combined tax is composed of three separate taxes (show per passenger):

a. U.S. departure tax is in the amount of $ -- .

b. Segment tax in the amount of $ -- , with the tax code of -- , is applicable from the city of -- .

c. PFC in the amount of $ -- , with the tax code of -- , is applicable from the city of -- .

10. The total base fare for both passengers is $ -- .

11. The combined tax for both passengers is $ -- .

12. The total selling price for both passengers is $ -- .

13. The fare-basis code that applies to this ticket is -- .

14. The base fare, per passenger, from the city of -- flying on -- Airlines to the city of -- is in the amount of $ -- .

[FIGURE 4-14 OMITTED]

Itinerary Price for Round Trip

Figure 4-15 is an itinerary and price display for one passenger. The routing is round-trip from San Francisco to Detroit. This client qualified for a discounted fare with the fare type code of QR7NR.

KEY POINTS

Don't be confused with city and specific airport codes; they are both used in the itinerary and price displays:

* If applicable, specific airport codes are used in the flight itinerary field (notice that the flight is from SFO to DTW; DTW is the airport code for Metro Wayne Airport).

* In the base fare breakdown line, city codes are used because fares are usually charged city to city (and not airport to airport). Notice that the city code for Detroit-DTT-is shown in the base fare breakdown line.

* If applicable, specific airport codes are used to identify passenger facility charges (XF) or segment taxes (ZP). In this example, both the ZP and XF tax amounts are identified with the airport code, DTW.

[FIGURE 4-15 OMITTED]

Let's take a closer look at the last two lines of the itinerary price display:

[ILLUSTRATION OMITTED]

CHECK POINT 4-11

Study Figure 4-16, the itinerary and price display for passenger Jefferson. The passenger is flying round-trip on two different airlines. There are two different fare-basis codes in each direction: YN for the first fare segment and standard Y for the return.

A split fare basis is noted in the itinerary display, with the codes separated by a slash: YN/Y. Fill in.

1. Passenger Jefferson is flying round-trip from the city of -- to the city of -- .

2. He is flying on two different airlines: the first flight segment is on -- Airlines, flight number -- ; the return flight segment is on -- , flight number -- .

3. The base fare from Washington to Las Vegas is $ -- . The fare-type code for this flight is -- ,

a type of discounted fare.

4. The base fare for the return from Las Vegas to Washington is $ --. The fare-type code for this flight is -- .

5. Three types of taxes are applicable to this ticket:

a. The U.S. transportation tax is in the amount of $ -- .

b. The total segment tax is in the amount of $ -- . The first segment tax is applicable from

-- Airport; the second segment tax is applicable from -- Airport.

c. There are two PFCs for a total of $ -- .

6. The total selling price for this ticket is $ -- .

[FIGURE 4-16 OMITTED]

Itinerary Price for Connections: Through Fares

Figure 4-17 is an itinerary price display for passenger Neill. She is on a circle-trip from Columbus, Ohio, to Grand Rapids, Michigan. She is flying on an on-line connection with Continental Airlines from Columbus to Grand Rapids, connecting through Detroit Metro Wayne Airport. She is charged a through fare from Columbus through to Grand Rapids (remember, no fare is charged to or from the connecting city of Detroit). On the return, she is on a direct flight on US Airways.

Let's take a closer look at the fare breakdown line:

[ILLUSTRATION OMITTED]

[FIGURE 4-17 OMITTED]
Consider This ...

Remember: An "X/" in front of a city code identifies a
connecting city; no fare is charged to
or from that city.


CHECK POINT 4-12

Figure 4-18 is the itinerary price display for passenger Barnes. He is flying round-trip on connecting flights. He is flying American Airlines from Los Angeles to Norfolk, Virginia, with a connection in Dallas/Fort Worth. He is returning on US Airways with a connection in Charlotte, North Carolina.

Fill in.

1. What is the through base fare from Los Angeles to Norfolk? $ --

2. What symbol do you see that identifies DFW as a connection? --

3. What is the fare-basis code on the American connection? --

4. What is the US Airways through fare on the return? $ --

5. What is the fare-basis code on the US Airways connection? --

6. What is the total combined tax on this ticket? $ --

7. How much is the segment tax total? $ --

8. How much is the PFC total? $ -- From which city is the PFC applicable? --

9. What is the round-trip base fare? $ --

10. What is the round-trip selling fare? $ --

[FIGURE 4-18 OMITTED]
Consider This ...

A surface or nonair segment in the itinerary price
is identified with a "/-" symbol.


Itinerary Price for Open Jaw: Surface Segment

Passenger Claiborne is flying on an open-jaw itinerary. Remember that an open-jaw trip includes a nonair segment. This nonair segment is called a surface segment. In the computer itinerary display, the surface segment is identified as an ARNK, which means "ARrival uNKnown." No fare is charged for an ARNK segment.

Figure 4-19 is the itinerary price display for passenger Clairborne. She is flying United Airlines from New Orleans to San Francisco. She is charged a BX3NR (a discounted midweek nonrefundable fare) from New Orleans to San Francisco in the amount of $337.67. The surface or ARNK segment is between San Francisco and Los Angeles. The return flight is from Los Angeles to New Orleans. She is charged a BW3NR (a discounted weekend nonrefundable fare) from Los Angeles to New Orleans in the amount of $373.95.

Let's take a closer look at the fare breakdown line:

[ILLUSTRATION OMITTED]

[FIGURE 4-19 OMITTED]

[FIGURE 4-20 OMITTED]

CHECK POINT 4-13

Figure 4-20 is the itinerary price display for passenger Ling. He is flying from Phoenix to Philadelphia. He will be driving between Philadelphia and Pittsburgh. The passenger is returning home from Pittsburgh on a connecting flight.

1. The first fare segment is from the city of -- to the city of -- , and the base fare is $ -- .

2. The fare-basis code charged for the first fare segment is -- on -- Airlines.

3. The surface (ARNK) segment is between the city of -- and the city of -- . No fare is charged for the ARNK segment.

4. The symbol that identifies an ARNK in the itinerary price display is -- .

5. The second fare is the through fare from the city of -- to the city of -- , and the base fare is $ -- , on -- Airlines.

6. The base fare for the entire trip is in the amount of $ -- .

7. The combined tax is $ -- .

8. The total selling price is $ -- .

ITINERARY PRICE WITH FUEL SURCHARGE

Figure 4-21 is the itinerary price display for passenger Aranson. His itinerary includes two fuel surcharges: from ORD in the base fare amount of $4.65 and from MCO in the base fare amount of $1.86.

The round-trip base fare of $366.51 includes the fuel surcharges; this base fare amount is shown at the top of the itinerary price display:
Consider This ...

The identification code for a fuel surcharge is
Q. The fuel surcharge amount is listed immediately
after the flight segment to which it applies.


[FIGURE 4-21 OMITTED]

[ILLUSTRATION OMITTED]

The base fare breakdown line (bottom of itinerary price display) shows each amount separately:

[ILLUSTRATION OMITTED]

CHECK POINT 4-14

Figure 4-22 is the itinerary price display for passenger Steele. She is flying on a circle-trip from Dallas/Fort Worth with stopovers in Chicago and Boston. There are a total of two fuel surcharges applicable to her ticket.

1. What is the total base fare? $ --

2. What is the total combined tax? --

3. What is the total selling price? --

4. How many fare segments does this itinerary have? --

5. The base fare of $288.37 applies from the city of -- to the city of -- . The fare-basis code is -- , and the fare is applicable to -- Airlines.

6. The base fare of $262.33 applies from the city of -- to the city of -- .

The fuel surcharge in the amount of $4.65 applies from the departure city of -- on -- Airlines.

7. The base fare of $293.95 applies from the city of -- to the city of -- .

The fuel surcharge in the amount of $ -- applies from the departure city of -- on Delta Air Lines.

8. The base fare of $851.62 -- does/does not) include the fuel surcharges in the amount of $4.65 and $2.32.

9. The U.S. transportation tax is 7.5 percent of the base fare of $851.62. The amount of this tax is $ -- .

10. The segment tax total amount is $ -- , and the PFC total is $ -- .

[FIGURE 4-22 OMITTED]

Chapter 4 Test

NAME: -- DATE: --

1. Which would not be a typical restriction for an instant-purchase fare?

a. It must be booked twenty-one days in advance of departure.

b. Ticket must be issued one day after booking.

c. Ticket is valid one way only.

d. Passenger must stay beyond a Saturday night before returning home.

2. Your client is ticketed on Continental Airlines. She is getting $50 off because the value of her ticket is between $250 and $349. What type of discount is this?

a. Senior citizen

b. Dollar-off coupon

c. Agency-contract

d. Set-rate coupon

3. The airline ticket a passenger has from New York to Acapulco is deeply discounted due to a company buying airline seats in bulk and selling them at lower prices. What type of ticket discount is this?

a. Military

b. Consolidator

c. Company-negotiated

d. Agency-contract

4. All business travelers who are customers of ABC Travel Service qualify for a special discount fare to Chicago on United Airlines. This is an example of a(n)

a. discount coupon

b. agency-contract

c. consolidator

d. company-negotiated

5. The fare-basis code for a round-trip fare during midweek travel, booked in L class, with a fourteen-day advance reservation restriction plus no refund if ticket is canceled, is

a. LLE14N.

b. LWR14E.

c. LEN14IP.

d. LHRN14.

For each of the following itineraries (6 through 8), indicate whether it is priced as a point-to-point, through, or joint fare.

6. Is this priced as a point-to-point, through, or joint fare? --
1UA   1798   07MAY   T   SEAORD   HK1   1000A   336P
2UA   1551   09MAY   Q   ORDBWI   HK1   440P    728P


7. Is this priced as a point-to-point, through, or joint fare? --
1TW   768   11SEP   W   DSMSTL   HK1   820A   922A
2TW   991   11SEP   W   STLJAX   HK1   1210P  340P


8. Is this priced as a point-to-point, through, or joint fare? --
1AM   412    01FEB   F   MEXMIA   HK1   800A   1210P
2DL   1102   01FEB   F   MIAATL   HK1   205P   414P


Figure 4-23 is the itinerary price display for passenger Osborne. Answer questions 9 through 19 based on this booking.

9. What is the total base fare? $ --

10. What is the combined tax? $ --

11. What is the U.S. transportation tax amount? $ --

12. What is the total passenger facility charge amount? $ --

13. What is the total segment tax amount? $ --

14. What is the base fare from Las Vegas to Chicago? $ -- What is the fare-basis code for this fare? --

15. What is the amount of the fuel surcharge? $ -- From which city does the surcharge apply? --

16. The through base fare from the city of -- to the city of -- on US Airways is in the amount of $ -- .

17. What is the base fare on the last fare segment on the ticket? $ -- This fare is from the city of -- to the city of -- .

18. What is the total selling fare for this ticket? $ --

19. The surface (nonair) segment is between the city of -- to the city of -- .

This is called a(n) -- segment in the itinerary.

Figure 4-24 is a fare scan. The agent requested fares for all airlines from Chicago to Charleston, West Virginia, departing June 26. Answer questions 20 through 30 regarding this fare scan.

20. How many connections does US Airways operate between Chicago and Charleston? --

21. Name the four airlines that have published fares between Chicago and Charleston:

22. Name the only airline that does not operate any nonstop flights: --

23. How many direct flights does Northwest operate on this route? --

24. What is the round-trip fare with fare basis ME21NR on Northwest Airlines? $ --

25. What is the round-trip fare for US Airways' nonrefundable fare to be booked in B class? $ --

26. On which date does the nonrefundable fare with seven-day advance reservation restriction on Delta Air Lines become effective? --

27. Can the BE7AN fare on US Airways be sold one way? Why or why not? --

28. What is the one-way discounted fare based on coach class on US Airways? $ --

29. What is the round-trip discounted first-class fare on Northwest? $ --

30. What is the last date you can ticket on United's one-way discounted fare at $349? --

[FIGURE 4-23 OMITTED]

[FIGURE 4-24 OMITTED]
FIGURE 4-6

CHARACTER          DESCRIPTION

Booking code       This is always the first letter character in any
                   fare-basis code; this tells you the class of service
                   to book the fare.

Off-peak/night     Some flights are designated as special off-peak
discounts          service with discounted fares. Typically these
                   flights depart late in the afternoon and evening
                   hours. These can be called "night" discounts.

Season             Fares published to certain resort destinations
                   will have two or more seasonal levels:
                   (1) high season (the most expensive fare level),
                   (2) low season (the least expensive fare level),
                   and (3) shoulder (middle or less expensive than
                   high, more expensive than low). Applicable to
                   destinations such as Bermuda, Bahamas,
                   Caribbean, Mexico, and Europe.

Time of week       Many domestic excursion fares are divided into
                   midweek and weekend levels. Usually, midweek
                   fares are priced lower than weekend fares due to
                   travel patterns. The days of the week considered
                   midweek and weekend differ from airline to
                   airline. The general definition is that midweek is
                   Monday through Thursday and the weekend is
                   Friday through Sunday.

Round-trip         Certain fare-basis codes identify whether the
                   fare must be purchased round-trip (i.e.,
                   excursion fares).

Advance            Reservations and ticket issued for most
reservations/      discounted fares must be made no later than
ticket purchase    a stated number of days before departure.
                   The number of days is sometimes included
                   in the fare-basis code.

Nonrefundable/     Use to identify the fare type or a passenger-
instant-purchase   type discount. Most discounted domestic
                   fares are nonrefundable. This means that
                   no refund is due if the passenger cancels
                   the ticket without rebooking.

FIGURE 4-6

                   CHARACTER(S)
CHARACTER          USED                    EXAMPLES

Booking code       Varies                  [B.bar]E14NR--book in B
                                             class
                                           [V.bar]PE7NR--book in V
                                             class
                                           [Y.bar]21--book in Y class

Off-peak/night     N                       Y[N.bar]--coach class,
discounts                                    off-peak flight
                                           C[N.bar]--business class,
                                             off-peak flight
                                           F[N.bar]--first class,
                                             off-peak flight

Season             H = High                Q[H.bar]E21NR
                   O = Shoulder            M[O.bar]14N
                   K = Shoulder            H[K.bar]E7IP
                   L = Low                 V[L.bar]EXNR

Time of week       W = Weekend             H[W.bar]7N
                   H = Weekend             H[H.bar]A3NR
                   X = Midweek             KO[X.bar]14IP
                   L = Midweek             BH[L.bar]EXN

Round-trip         R = Round-trip          KH[R.bar]3AP
                       purchase            MX[E.bar]7NR
                       required
                   E = Excursion
                       (round-trip
                       purchase
                       required)

Advance             7 = 7-day advance      YNE[14.bar]IP
reservations/      14 = 14-day advance     QRA[3.bar]N
ticket purchase     3 = 3-day advance
                    1 = 1-day instant
                        purchase

Nonrefundable/     NR = Nonrefundable      YLE7[NR.bar]
instant-purchase   IS = Nonrefundable      QXE3[N.bar]
                   N  = Nonrefundable      HLE14[IP.bar]
                   IP = instant-purchase

FIGURE 4-7

INFORMATIONAL
CATEGORY        DESCRIPTION                  EXAMPLE

Booking code    This is the class of         BK CODE--B
                service to use when
                making the reservation.
                If the fare is based on
                controlled-inventory, the
                appropriate letter code
                is used to identify the
                fare.
                Examples include B, K, L,
                V, H, Q, and W.

Penalty         This category details        PENALTY--TICKETS ARE
                charges for changes and/     NONREFUNDABLE IN CASE OF
                or cancellations. Many       CANCELLATION/REFUND.
                discounted fares require     A CHARGE OF USD 60 WILL
                an administrative fee        BE ASSESSED FOR AN
                (usually expressed as a      ITINERARY CHANGE WITH OR
                dollar amount) for any       WITHOUT TICKET REISSUE.
                changes to the
                reservation or
                cancellation prior to
                departure. In the case of
                nonrefundables, the
                cancellation fee is 100
                percent.

Reservations/   This provides two            RES/TKTG--RES MUST BE MADE
ticketing       important deadlines:         NO LATER THAN
                (1) how soon before          14 DAYS BEFORE DPTR FROM
                departure date the           ORIGIN. TKT MUST BE
                reservation must be booked   PURCHASED NO LATER THAN 14
                and (2) how soon before      DAYS BEFORE DPTR FROM
                departure the ticket must    ORIGIN OR 1 DAY AFTER RES
                be purchased. In most        IS MADE, WHICHEVER COMES
                cases the airlines require   FIRST.
                a 7-, 14-, 21-, or 30-day
                advance reservation to
                secure the discounted
                fare. The ticket also must
                be purchased either right
                after the booking date
                (for instant purchase) or
                a number of weeks prior to
                departure.

Minimum stay    This is the earliest         MIN STAY--RETURN TRAVEL IS
                possible date the            VALID ON THE 1ST
                passenger may                SUN AFTER 12:01 A.M.
                commence or start the        MEASURED FROM DPTR
                return trip home. This is    FROM ORIGIN TO DPTR FROM
                applicable on most           LAST STOPOVER POINT.
                excursion fares.

Maximum stay    This is the latest           MAX STAY--RETURN TRAVEL
                possible date the            MUST COMMENCE NO LATER
                passenger may commence or    THAN 60 DAYS. MEASURED
                start the return trip        FROM DPTR FROM ORIGIN TO
                home. This is applicable     DPTR FROM LAST STOPOVER
                on some domestic excursion   POINT.
                fares.

Time of         There are certain times      DAY/TIME--APPLIES AT ANY
travel          when travel is allowed or    TIME.
                restricted. Time may refer
                to time of day (morning
                versus afternoon or
                evening departures);
                day(s) of the week
                (midweek versus weekend
                travel); or time of year
                (seasonal levels).

Blackouts       There are specific dates     BLACKOUTS--TRAVEL IS NOT
                or ranges of dates when      VALID 22DEC THRU 02JAN.
                travel is not allowed at
                the fare level. Examples
                are school vacation and
                holiday periods to resort
                destinations.

Effective       Effective date is the        EFF/EXP--01 MAY IS THE
date/           earliest and/or latest       FIRST DATE THAT
expiration      date when the fare can be    TRAVEL MAY COMMENCE.
date            sold. Expiration date is
                the first and/or last date
                when travel may begin or
                be completed.

FLT APPL        Some types of flights may    FLT APPL--APPLIES ONLY TO
                be restricted. For           FLTS 9425 THRU 9444.
                example, fare may be         APPLIES ONLY TO FLTS 2300
                restricted to specific       THRU 2599.
                flight number(s), or a
                fare may be restricted to
                specific types of flights
                such as connections only.

Stopovers       There may be additional      STOPOVERS--NO ADDITIONAL
                stopovers in addition to     STOPOVERS IN ADDITION TO
                the outward destination      THE OUTWARD DESTINATION
                that are allowed either      ALLOWED.
                free of charge or at an
                additional charge. This
                usually applies to certain
                international fare types
                (a few domestic fares
                allow stopovers at an
                additional charge).

Surcharges      These are applicable         SURCHGS--FROM BOS TO FLL,
                surcharges that apply to     FUEL SURCHARGE
                the city pair requested.     OF USD 2.32 PER ADT/CHD.
                This usually includes fuel   APPLIES TO DOMESTIC
                surcharges, which are        SECTOR.  FROM FLL TO BOS,
                applicable from specific     FUEL SURCHG OF USD
                departure airports in the    1.86 PER ADT/CHD. APPLIES
                United States. Any fuel      TO DOMESTIC SECTOR.
                surcharge amounts shown do
                not include applicable
                tax.

Discounts       Passenger discounts, such    DISCOUNTS--NO FARE IS
                as infant, children, or      CHARGED FOR AN INF
                senior citizens, may         PSGR UNDER 2 YRS NOT
                apply.                       OCCUPYING A SEAT. INF
                                             PSGR MUST BE ACCOMPANIED
                                             ON ALL SGMENTS BY
                                             AN ADT PSGR TRAVELING IN
                                             THE SAME COMPARTMENT.

Transfers       This indicates the number    TRANSFERS--UNLIMITED
                of transfers or              TRANSFERS AS PERMIT
                connections permitted, if    TED ON THE ROUTING.
                applicable.

Open return     This indicates whether an    OPEN RTN--TICKETS MAY NOT
                open flight coupon (i.e.,    BE ISSUED WITH OPEN
                a ticket is issued for the   RETURN.
                flight segment but no
                reservation made) is
                allowed.

FIGURE 4-10
Partial listing of PFC airports

                                       DISCONTINUE    PFC
AUTHORIZED PFC AIRPORT                 DATE           AMOUNT

Abilene, Texas (ABI)                   Sep 1, 2005    $3.00
Albany, New York (ALB)                 Jan 1, 2023    $3.00
Albuquerque, New Mexico (ABQ)          Jul 1, 2001    $3.00
Atlanta, Georgia (ATL)                 Feb 1, 2004    $3.00
Austin, Texas (AUS)                    Jul 1, 2020    $3.00
Baltimore, Maryland (BWI)              Sep 1, 2002    $3.00
Bangor, Maine (BGR)                    May 1, 2005    $3.00
Baton Rouge, Louisiana (BTR)           Jun 1, 2008    $3.00
Billings, Montana (BIL)                Jun 1, 2002    $3.00
Bloomington, Illinois (BMI)            May 1, 2010    $3.00
Boston, Massachusetts (BOS)            Sep 1, 2012    $3.00
Bozeman, Montana (BZN)                 Jun 1, 2005    $3.00
Buffalo, New York (BUF)                Mar 1, 2026    $3.00
Burbank, California (BUR)              Oct 1, 2001    $3.00
Burlington, Vermont (BTV)              Nov 1, 2001    $3.00
Butte, Montana (BTM)                   Jul 1, 2001    $3.00
Cedar Rapids, Iowa (CID)               Feb 1, 2001    $3.00
Charlottesville, Virginia (CHO)        Jun 1, 2004    $3.00
Chattanooga, Tennessee (CHA)           Oct 1, 2002    $3.00
Cheyenne, Wyoming (CYS)                Jul 31, 2005   $3.00
Cincinnati, Ohio (CVG)                 Sep 1, 2000    $3.00
Colorado Springs, Colorado (COS)       Dec 1, 2002    $3.00
Columbia, South Carolina (CAE)         Sep 1, 2008    $3.00
Columbus, Mississippi (GTR)            Sep 1, 2006    $3.00
Columbus, Ohio (CMH)                   Jan 1, 2002    $3.00
Dayton, Ohio (DAY)                     Mar 1, 2005    $3.00
Daytona Beach, Florida (DAB)           Feb 1, 2005    $3.00
Denver, Colorado (DEN)                 Jan 1, 2026    $3.00
Detroit Metro, Michigan (DTW)          Oct 1, 2030    $3.00
Dulles Int'l, D.C. (IAD)               Mar 31, 2005   $3.00
El Paso, Texas (ELP)                   Jun 1, 2004    $3.00
Erie, Pennsylvania (ERI)               May 1, 2001    $3.00
Flagstaff, Arizona (FLG)               Jan 1, 2015    $3.00
Flint, Michigan (FNT)                  Sep 1, 2030    $3.00
Fort Myers, Florida (RSW)              Dec 1, 2015    $3.00
Fort Wayne, Indiana (FWA)              Mar 1, 2015    $3.00
Grand Junction, Colorado (GJT)         Sep 1, 2004    $3.00
Grand Rapids, Michigan (GRR)           Jul 1, 2019    $3.00
Greenville, N.C. (PGV)                 Nov 1, 2001    $3.00
Huntsville, Alabama (HSV)              May 1, 2008    $3.00
Indianapolis, Indiana (IND)            Jun 1, 2004    $3.00
Islip, New York (ISP)                  Sep 1, 2006    $3.00
Ithaca, New York (ITH)                 Jan 1, 2004    $3.00
J.F.K. Airport, New York (JFK)         Jan 1, 2001    $3.00
Jacksonville, Florida (JAX)            Sep 1, 2000    $3.00
Kansas City, Missouri (MCI)            May 1, 2001    $3.00
La Guardia Arpt., New York (LGA)       Jan 1, 2001    $3.00
Lancaster, Pennsylvania (LNS)          Feb 1, 2015    $3.00
Lansing, Michigan (LAN)                Jun 1, 2002    $3.00
Las Vegas, Nevada (LAS)                Nov 1, 2024    $3.00
Lewiston, Idaho (LWS)                  Mar 1, 2011    $3.00
Lexington, Kentucky (LEX)              Sep 1, 2005    $3.00
Little Rock, Arkansas (LIT)            Jun 1, 2003    $3.00
Louisville, Kentucky (SDF)             May 1, 2007    $3.00
Madison, Wisconsin (MSN)               Dec 1, 2001    $3.00
Midway, Chicago, Illinois (MDW)        Nov 1, 2020    $3.00
Milwaukee, Wisconsin (MKE)             Apr 1, 2002    $3.00
Muskegon, Michigan (MKG)               May 1, 2019    $3.00
Myrtle Beach, South Carolina (MYR)     Jul 1, 2010    $3.00
Nashville, Tennessee (BNA)             Mar 1, 2006    $3.00
Newark, New Jersey (EWR)               Jan 1, 2001    $3.00
Newburgh, New York (SWF)               Jul 1, 2007    $3.00
New Orleans, Louisiana (MSY)           Aug 1, 2009    $3.00
Norfolk, Virginia (ORF)                Mar 31, 2010   $3.00
O'Hare, Chicago, Illinois (ORD)        Jun 1, 2004    $3.00
Palm Springs, California (PSP)         Oct 30, 2032   $3.00
Panama City, Florida (PFN)             Oct 1, 2007    $3.00
Peoria, Illinois (PIA)                 Jul 1, 2001    $3.00
Portland, Maine (PWM)                  May 1, 2001    $3.00
Portland, Oregon (PDX)                 Feb 1, 2001    $3.00
Providence, Rhode Island (PVD)         May 1, 2014    $3.00
Pueblo, Colorado (PUB)                 May 1, 2009    $3.00
Quincy, Illinois (UIN)                 Jun 1, 2003    $3.00
Redding, California (RDD)              Jun 1, 2005    $3.00
Richmond, Virginia (RIC)               Aug 1, 2001    $3.00
Riverton, Wyoming (RIW)                Mar 1, 2007    $3.00
Rochester, New York (ROC)              Apr 1, 2002    $3.00
Rockford, Illinois (RFD)               Aug 1, 2018    $3.00
Ronald Reagan Nat'l, D.C. (DCA)        Jun 12, 2001   $3.00
Sacramento, California (SMF)           Feb 1, 2011    $3.00
Salt Lake City, Utah SLC)              Sep 1, 2001    $3.00
San Diego, California (SAN)            Jan 1, 2001    $3.00
San Juan, Puerto Rico (SJU)            Mar 1, 2003    $3.00
Sarasota, Florida (SRQ)                Mar 1, 2009    $3.00
Savannah, Georgia (SAV)                Jun 1, 2016    $3.00
Seattle, Washington (SEA)              Jul 1, 2000    $3.00
Shreveport, Louisiana (SHV)            Feb 1, 2019    $3.00
Sioux City, Iowa (SUX)                 Jun 1, 2006    $3.00
South Bend, Indiana (SBN)              Mar 1, 2003    $3.00
Spencer, Iowa (SPW)                    Sep 1, 2005    $3.00
Spokane, Washington (GEG)              Jun 1, 2005    $3.00
Springfield, Illinois (SPI)            May 1, 2007    $3.00
St. Croix, U.S. Virgin Islands (STX)   Apr 1, 2004    $3.00
Syracuse, New York (SYR)               Feb 1, 2001    $3.00
Tampa, Florida (TPA)                   Nov 1, 2000    $3.00
Telluride, Colorado (TEX)              Jun 1, 2001    $3.00
Traverse City, Michigan (TVC)          Jan 1, 2017    $3.00
Tri-City Airport, Tennessee (TRI)      Feb 1, 2009    $3.00
Twin Falls, Idaho (TWF)                Jul 1, 2002    $3.00
Utica, New York (UCA)                  Jun 1, 2010    $3.00
Walla Walla, Washington (ALW)          Nov 1, 2014    $3.00
West Palm Beach, Florida (PBI)         Jul 1, 2000    $3.00
White Plains, New York (HPN)           Jun 1, 2022    $3.00
Youngstown, Ohio (YNG)                 Jul 1, 2002    $3.00
Yuma, Arizona (YUM)                    Jun 1, 2003    $3.00
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Article Details
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Author:Semer-Purzycki, Jeanne
Publication:A Practical Guide to Fares and Ticketing, 3rd ed.
Geographic Code:100NA
Date:Jan 1, 2001
Words:12925
Previous Article:Chapter 3 Resources and reservations.
Next Article:Chapter 5 Ticketing, Part I.
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