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Glossary for the airline industry

From A-Z, this glossary covers definitions and explanations for common airline industry terminology.

baggage allowance

A provision that governs the number of pieces or weight of baggage that may be carried free of charge.

baggage charges

A provision that governs the charge for baggage and special items that do not fall within the passenger's baggage allowance.

Banker's Selling Rate

Used during the transfer of funds through banking channels, the rate at which a bank will sell a given amount of foreign currency in exchange for one unit of the national currency of the country in which the exchange transaction takes place.

base amount

1. An amount representing the highest selling local fare used in certain markets under the IATA Multi-lateral Proration Agreement. Base amounts are published in the IATA Prorate Manual--Passenger (PMP).

2. A base fare used in Category 25 as a calculation tool to produce Net or Selling amounts.

base fare

1. The fare amount excluding taxes and other charges. However, charges resulting from Stopovers (Category 8), Transfers (Category 9), and/or Surcharges (Category 12) processing are included in the base fare. This amount appears in the "fare" portion of the Fare Box on the ticket.

2. A fare or fares used as a basis for calculating other fare amounts to create a resulting fare in Category 25 or in Categories 19-22. This may also be the fare amount filed in the Fare Record


A unit of work containing a group of transactions that are entered and released to the file, used for describing a set of instructions that are being implemented. Every batch is identified by a two-character alphanumeric code (based on batch ID of user) plus a control number assigned by the system. The batch header specifies the proposal number, tariff, carrier, effective date of transactions, and the batch status (public, private, or incomplete). See also batch processing.

batch number

A number preceded by the alphanumeric ID code of the compiler or airline and assigned sequentially by the computer. This number goes on a batch sheet or is used online to be associated with a group of updates or transactions.

bid pricing

A type of continuous pricing where airlines link their revenue management systems directly to price determination.

bilateral agreements

An agreement between two nations concerning rate or fare levels. This, in some instances, supersedes normal filing requirements for the DOT. Also refers to special prorate agreements between two carriers.


A database of sealed blocks stored in chains of transactions that are maintained by many computers across a peer-to-peer network. For example, cryptocurrencies use blockchain to keep secure records of transactions.


The reservation of a fare or fee product for an itinerary by a customer.

booking code

One or two letters functioning as an inventory control code. Also called the reservation booking designator (RBD) or prime booking code, it specifies the class of service a passenger should be booked in to receive the fare.

Business process outsourcing.
branded fare

Fares that are differentiated beyond just the price by being paired with other features and organized into consumer-recognizable products with distinct service offerings, i.e., seat assignment/upgrade, checked baggage, ticket refundability, carry-on baggage, priority services, meals and drinks, mileage accrual, lounge, upgrades, inflight entertainment, Wi-Fi.

Branded Fares

Product that allows carriers to group and name fares by fare families, fare types, or other criteria and supports ancillary revenue development.


Billing Settlement Plan; the IATA entity responsible for settling funds and reporting accountable information between the travel agency and the airline for fares sold outside the United States, as well as for controlling accountable ticket stock. BSPs are usually organized by country.

BSP method

In coding Category 35, an ATPCO value of 1-5 or blank used to describe to the subscriber which Net Remit Reporting procedure should be used at time of ticketing. The five method types available in Category 35 are based on the seven IATA-established method types.


Banker’s Selling Rate.


See notification. A primary method of communication between ATPCO and customers. Notifications are e-mailed to participants whenever bulletins are posted on the Customer Center extranet site.


A retailing practice in many industries where products are bundled together to create a value-added package to increase cross-selling, upselling and customer loyalty, ultimately to increase revenue. In our industry, it is an individually defined atomic Products (services or items) that are grouped together to form a package of atomic services and/or items to be delivered to a consumer. A brand is a type of bundle. Traditional fare and related data (fare, change flexibility, refund flexibility, and stopover flexibility) are a type of bundle. See also dynamic bundle.