Travel trade glossary
The terms you will meet in a Korea DMC quotation, defined in plain language.
What does DMC mean in travel?
A DMC, or destination management company, is a local specialist that plans, prices and operates ground services such as hotels, transfers, tours and events in one destination for travel agents, tour operators and corporate buyers. Agents sell the trip; the DMC delivers it on the ground.
Business terms
DMC
Destination management company: a local B2B operator that arranges and delivers services in one destination.
Ground handler
A company that operates services at the destination, such as transfers and guides. Often used for a DMC's operations side.
Net rate
A trade price before the agent's mark-up. The agent adds their own margin when selling.
Commissionable rate
A published-style price from which the agent keeps an agreed commission.
Mark-up
The margin an agent adds to a net rate when selling to a client.
RFQ
Request for quotation: the details an agent sends so a DMC can price a file.
FOC
Free of charge: a complimentary place, such as a tour leader's room, according to the quotation's terms.
Rate lock
A confirmed price held for agreed dates, subject to the quotation's conditions.
Land arrangements
Everything on the ground: hotels, transfers, touring and activities, without flights.
Tour formats
FIT
Free independent traveller: individual or small-party travel, usually booked as a tailor-made package.
GIT
Group inclusive tour: a group travelling together on a set programme.
SIC
Seat in coach: a shared departure where guests join other travellers.
Private tour
A programme with its own vehicle and guide for one party only.
MICE
Meetings, incentives, conferences and exhibitions: business travel programmes.
Incentive
A reward trip a company gives its staff or partners.
FAM trip
Familiarisation trip: a visit that lets agents experience a destination first-hand.
Pax
Short for passengers: the number of guests in a booking.
Credentials
IATA TIDS
Travel Industry Designator Service: an IATA identifier for travel sellers. It is a registration only and does not authorise ticket issuing.
ASTA
American Society of Travel Advisors: a trade association. Explera is a member (#900408341).
FAQ
What is the difference between net and commissionable rates?
A net rate is the trade price before the agent adds a margin. A commissionable rate is priced so the agent keeps an agreed commission.
Is a DMC the same as a tour operator?
Not quite. A DMC operates services in one destination for agents and operators; a tour operator packages and sells trips, often across several destinations.
Is IATA TIDS an IATA agency licence?
No. TIDS is a designator identifier. The agency licence is what allows ticket issuing on IATA stock, which Explera does not hold.
Need a quotation?
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