Chapter One- Key Terms

Question 1

Benefit

Answer 1

A positive result that a “feature” brings to a particular client.

Question 2

Business Travel

Answer 2

Travel undertaken for the purpose of conducting business, including meetings, conventions, and incentive travel; also known as corporate travel.

Question 3

Commission

Answer 3

The percentage of the sale or a fee paid to a salesperson for selling a product.

Question 4

Commodity

Answer 4

Something that varies little and has the same value everywhere.

Question 5

Conference system

Answer 5

A system by which a group of suppliers controls the sale of their product appointing agents to sell it and establishing a standard contract.

Question 6

Corporate travel

Answer 6

Travel undertaken for the purpose of conducting business; also known as business travel.

Question 7

Demographic Segmentation

Answer 7

The process of categorizing people according to characteristics such as age, sex, or marital status.

Question 8

Dependables

Answer 8

In Plog’s analysis, people who value the familiarity and comfort and focus on every day problems tend to visit popular places when they travel and to return to the same places each year.

Question 9

Distributor

Answer 9

A company that acts as a intermediary between suppliers and travelers, helping travelers attain the goods and services owned by suppliers.

Question 10

Feature

Answer 10

An inherent characteristic of a product or service.

Question 11

High Season

Answer 11

The season when rates and traffic peak.

Question 12

Hospitality Industry

Answer 12

The industry that supplies hotel accommodations and food and beverage services.

Question 13

Incentive Travel

Answer 13

Travel offered as a prize or reward for employees, usually for productivity or sales performance.

Question 14

Leisure Travel

Answer 14

Travel done for pleasure in the broadest sense of the term (travel to visit family and friends is generally, but not always, included in this category).

Question 15

Low Season

Answer 15

The season when rates and traffic are at their lowest; sometimes called the value season.

Question 16

Marketing

Answer 16

A series of decisions and actions taken by a seller to create a match between consumers’ preferences and a product or service.

Question 17

Market Segmentation

Answer 17

The process of identifying clusters of individuals who have similar needs and can form a target market.

Question 18

Meeting Travel

Answer 18

Travel to organized gatherings such as conferences and conventions.

Question 19

National Tourist Office (NTO)

Answer 19

A government-sponsored office that works within the country to make it attracted to tourists and works outside the country to present it in the best light

Question 20

Online Travel Agency

Answer 20

Usually refers to a travel agency that does business almost exclusively online but can refer to any travel agency that uses the Internet for a portion of its business.

Question 21

Override

Answer 21

And extra payment made by a supplier as a bonus for a large volume of sales.

Question 22

Personal Selling

Answer 22

Selling conducted through person-to-person contact.

Question 23

Preferred Supplier Relationship

Answer 23

An arrangement in which a travel agency is committed to maximizing its use of a particular supplier; in turn, the agency can receive overrides.

Question 24

Price Segmentation

Answer 24

The process of dividing a population into segments based on the amount they are able and willing to pay for a product.

Question 25

Professional

Answer 25

A person who has learned a body of knowledge, mastered skills needed for a certain occupation, and demonstrated a commitment to the ethical standards of that occupation in the interest of clients.

Question 26

Psychographic Segmentation

Answer 26

The process of categorizing potential consumers based on their attitudes, interests, and beliefs.

Question 27

Selling

Answer 27

An aspect of marketing that ensures that a product or service is purchased.

Question 28

Shoulder Season

Answer 28

The period between high and low seasons.

Question 29

Special-Interest Travel

Answer 29

Travel devoted to a particular interest or activity.

Question 30

Supplier

Answer 30

A company that owns and provides the goods and services (including transportation, food, shelter, entertainment, and attractions) sold to travelers.

Question 31

American Society of Travel Agents (ASTA)

Answer 31

The trade association that lobbies governments, presents educational programs, and speaks to the public on behalf of its members, who include travel agents as well as others in the travel industry.

Question 32

Supporting Businesses and Organizations

Answer 32

Entities that either provide travel-related services such as maps and travel insurance or aid or regulate the travel industry.

Question 33

Target Market

Answer 33

A market segment that a seller aims to reach.

Question 34

Travel Agency

Answer 34

A business that sells travel products and services directly to the public.

Question 35

Travel Counselor

Answer 35

An individual who advises travelers and who sells travel arrangements to the public or suppliers; also known as a travel agent.

Question 36

Travel Industry Association of America (TIA)

Answer 36

The nonprofit organization that represents the U.S. travel industry and works to promote increased travel to and within the United States.

Question 37

Usage Segmentation

Answer 37

The process of categorizing potential consumers according to the purpose for which they would use a product.

Question 38

VFR Travel

Answer 38

Travel to visit friends or relatives.

Question 39

Venturers

Answer 39

The term used by Plog to describe travelers who tend to be confident and curious, to have varied interests, and to enjoy discovering new vacation spots.