Glossary of Terms
Kickback A return of a percentage of a sum of money already received, typically as a result of pressure, coercion, or a secret agreement. n : a commercial bribe paid by a seller to a purchasing agent in order to induce the agent to enter into the transaction
Commission Structure The varying amounts of commission offered to various travel wholesalers, tour operators, travel agents, and other travel trade organizations such as group leaders for the sale of a travel package or product. Often, these commissions will vary depending upon the volume of bookings and sales made by the particular organization. Commission – A fee or percentage allowed to a sales representative or an agent for services rendered. With a sales commission serving as full or partial recompense for the work done
Tiered Rates Also known as tiered pricing, a graduated rate structure designed to offer professional operator (Buyers) percentage discounts based on volume, production and /or their position in the distribution channel (wholesaler, motorcoach/tour operator, receptive operators and travel agent.) Sellers providing tiered rates protect the Buyer relationship with customers and group leaders. Each Buyer in the distribution channel must mark-up the price to realize a profit, and be able to present the traveling consumer a cost-effective tour product. Tour Wholesaler A person or company which creates and markets tours for wholesalers, but does not usually conduct them. Tour packages are often sold to tour operators or travel agent.